Spatial economic effects of the use of local resources: case of cement-bonded wood fiber blocks

Abstract

Use of local resources as a replace for resources brought from outside the region impacts the spatial allocation of value-added chains and causes spatial economic effects. Region benefits from multiplier economic effect caused by extra production volumes added within the region. Effects for national economy could be controversial if the replacing production is less efficient. The article considers the case of cement-bonded wood fiber construction blocks to be produced in the Republic of Karelia, Russia. Economic multiplier regional effects are assessed applying social accounting matrix approach.