Rural development within the context of agricultural and socio-economic trends – the case of Finland

Open access

Rural development within the context of agricultural and socio-economic trends – the case of Finland

The aim of this article is to explore the relationship between agricultural and socio-economic development in Finnish rural areas (later expressed as rural development) since 1995. The statistical analyses being employed are mainly based on municipal (i.e. LAU-2 level) income, employment and population indicators. The results show that agricultural and rural development and the relationship between them vary remarkably between regions. In addition, the regional structures and developments of agriculture and their links to rural development are multidimensional. In general, it can be stated that there is no significant correlation between agricultural and rural development. The results of this study support the demand for tailor-made agricultural and rural development policy for different rural regions.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Armstrong H. & Taylor J. (2000). Regional economics and policy. 3rd ed. Oxford: Blackwell Publishers.

  • Bollman R. D. (2006). The Demographic Overlap of Agriculture and Rural Economy: Implications for the Coherence of Agriculture and Rural Policies. In Diakossavvas D. Ed. Coherence of Agricultural and Rural Development Policies (pp. 95-112). Paris: OECD.

  • Breman B. C. & Pinto Correia M. T. (2003). Coping with Marginalisation and Multifunctional Land use in Portugal - A national inventory for the Eurolan project. Departamento de Planeamento Biofísico e Paisagístico Universidade de Évora.

  • Breman B. Vihinen H. Tapio-Biström M.-L. & Pinto Correia T. (2010). Disentangling marginalisation processes at the periphery of Europe: a challenge for more diversified regional policies. Public Administration 88(2) 364-380. Doi: 10.1111/j.1467- 9299.2010.01834.x.

  • Cruickshank J. Lysgård H. K. & Magnussen M.-L. (2009). The logic of the construction of rural politics: political discourses on rurality in Norway. Geografiska Annaler: Series B Human Geography 91(1) 73-89. Doi: 10.1111/j.1468-0467.2009.00307.x.

  • Diakossavvas D. (Ed.) (2006). Coherence of Agricultural and Rural Development Policies. Paris: OECD.

  • Draper N. R. & Smith H. (1966). Applied regression analysis. New York: John Wiley & Sons.

  • Dwyer J. Ward N. Lowe P. & Baldock D. (2007). European rural development under the Common Agricultural Policy’s ‘Second Pillar’: institutional conservatism and innovation. Regional Studies 41(7) 873-887. Doi: 10.1080/00343400601142795.

  • Finnish Meteorological Institute a. Seasons in Finland. Cited: 27.2.2012. Available on Internet:

  • Finnish Meteorological Institute b. Terminen kasvukausi. Cited: 27.2.2012. Available on Internet:

  • Gujarati D. N. (1978). Basic Econometrics. Auckland: McGraw-Hill.

  • Honkapohja S. & Koskela E. (1999). The economic crisis of the 1990’s in Finland. Economic Policy14(29) 400-436.

  • Häkkilä M. (1991). Some regional trends in Finnish farming with special reference to agricultural policy. Fennia 169(1) 39-56.

  • Jonung L. Söderström H. T. & Stymne J. (1996). Depression in the north – boom and bust in Sweden and Finland 1985-93. Finnish Economic Papers 9(1) 55-71.

  • Kangasharju A. & Pekkala S. (2004). Increasing Regional Disparities in the 1990s: The Finnish Experience. Regional Studies38(3) 255–267. Doi: 10.1080/003434042000211097.

  • Katajamäki H. (1991). Suomen maaseudun suuri kertomus. Terra103 173-183.

  • Knickel K. & Renting H. (2000). Methodological and conceptual issues in the study of multifunctionality and rural development. Sociologia Ruralis 40(4) 512-528. Doi: 10.1111/1467-9523.00164.

  • Kuhmonen T. (1996a). Maatalouden alueellinen rakennekehitys ja aluepolitiikka. Suomen Aluetutkimus FAR/Finnish Regional Research FAR Selvityksiä/Research Papers 9.

  • Kuhmonen T. (1996b). Näkökulmia suomalaisen maatalouden ja maaseudun tulevaisuudesta pohjoisen tuen alueella. Finn-Auguuri Maaseudun tulevaisuusselvityksiä 1.

  • Kuhmonen T. (1998). Agenda 2007 – Suomen maatalouden EU-historia ja tulevaisuus. Finn-Auguuri Maaseudun tulevaisuusselvityksiä 4.

  • Maa- ja metsätalousministeriö (2008). Manner-Suomen maaseudun kehittämisohjelma 2007-2013. Maa- ja metsätalousministeriön julkaisuja8/2007.

  • Maaseutupolitiikan yhteistyöryhmä (2004). ELINVOIMAINEN MAASEUTU – yhteinen vastuumme. Maaseutupoliittinen kokonaisohjelma 2005-2008. Maaseutupolitiikan yhteistyöryhmän julkaisu 10/2004.

  • Maaseutupolitiikan yhteistyöryhmä (2009). Maaseutu ja hyvinvoiva Suomi. Maaseutupoliittinen kokonaisohjelma 2009-2013. Maaseutupolitiikan yhteistyöryhmän julkaisuja 5/2009.

  • Malinen P. Kytölä L. Keränen H. & Keränen R. (2006). Suomen maaseututyypit 2006 (Summary: Rural typology of Finland in 2006). Maa- ja metsätalousministeriön julkaisuja 7/2006.

  • Massey D. & Meegan R. (1982). The anatomy of job loss: the how why and where of employment decline. London: Methuen.

  • Mather A. S. Hill G. & Nijnik M. (2006). Post-productivism and rural land use: cul de sac or challenge for theorization? Journal of Rural Studies22(4) 441-455. Doi: 10.1016/j.jrurstud.2006.01.004.

  • Ministry of Agriculture and Forestry (2002). Strategy for Renewable Natural Resources in Finland. Publications 8b/2001. Ministry of Agriculture and Forestry in Finland.

  • Ministry of Agriculture and Forestry (2008). Rural Development Programme for Mainland Finland 2007-2013. CCI 2007 FI 06 RPO 001. Unofficial translation. Available on amme_for_Mainland_Finland_280411_EN.pdf. Accessed in 16.12.2011.01

  • Muilu T. & Rusanen J. (2004). Rural definitions and short-term dynamics in rural areas of Finland in 1989-97. Environment and Planning A36(8) 1499-1516. Doi: 10.1068/a36169.

  • Niemi J. & Ahlstedt J. (Eds.) (2008). Finnish Agriculture and Rural Industries 2008. MTT Economic Research Agrifood Research Finland Publications 108a.

  • Niemi J. & Ahlstedt J. (Eds.) (2010). Finnish Agriculture and Rural Industries 2010. MTT Economic Research Agrifood Research Finland Publications 110a.

  • Niemi R. & Häkkilä M. (1988). Maatalouspolitiikasta ja maatalouden rakenteen alueellisista muutoksista Suomessa ja Ruotsissa 1950-luvulta 1980-luvulle: Oulu: Research Institute of Northern Finland University of Oulu.

  • O’Connor D. & Dunne W. (2009). Conceptualizing Multifunctionality in the Irish Policy Context – Issues for Policy Formulation Implementation and Evaluation. Journal of Environmental Policy and Planning 11(4) 333-346. Doi: 10.1080/15239080903033895.

  • OECD (1994). Creating rural indicators for shaping territorial policy. Paris: OECD.

  • OECD (2001). Multifunctionality. Towards an analytical framework. Paris: OECD.

  • OECD (2006a). Financing Agricultural Policies with Particular Reference to Public Good Provision and Multifunctionality: Which Level of Government? Working Party on Agricultural Policies and Markets. AGR/CA/APM(2005)19/FINAL.

  • OECD (2006b). The New Rural Paradigm: Policies and Governance. Paris: OECD.

  • OECD (2008a). OECD Rural Policy Reviews Finland. Paris: OECD.

  • OECD (2008b). The role of farm households and the agro-food sector in the economy of rural areas: evidence and policy implications. Working party on agricultural policies and markets. TAD/CA/APM/WP(2008)25.

  • OECD (2010). The OECD Regional Typology.Directorate for Public Governance and Territorial Development. 22 February 2010. Available on Internet: Accessed in 5.12.2011.

  • Pearce J. (2009). Regression Linear and Nonlinear. In Kitchin R. & Thrift N. Eds. The International Encyclopedia of Human Geography (Methods p. 302-308). Amsterdam: Elsevier.

  • van der Ploeg J. D. van Broekhuizen R. Brunori G. Sonnino R. Knickel K Tisenkopfs T. & Oostindie H. (2008). Towards a framework for understanding regional rural development. In van der Ploeg J. D. and Marsden T. Eds. Unfolding webs. The dynamics of regional rural development (pp. 1-28). Assen: Royal Van Gorcum.

  • Pyykkönen P. (2001). Maatalouden rakennemuutos eri alueilla.Pellervon taloudellisen tutkimuslaitoksen julkaisuja n:o 180 /Pellervo economic research institute Reports 180.

  • Rosenqvist O. (1997). Maatalouden alueellinen erikoistuminen Suomessa Vaasan yliopiston julkaisuja Tutkimuksia 219.

  • Shucksmith M. Thomson K. J. & Roberts D. (Eds.) (2005). The CAP and the regions: the territorial impact of the Common Agricultural Policy. Wallingford: CABI Publishing.

  • Statistics Finland a. Agricultural income and tax statistics. Non-public data.

  • Statistics Finland b. Maa- ja metsätalousyritysten taloustilasto.Available on Internet: Accessed 16.12.2011.

  • Statistics Finland c. Maaseutuindikaattorit. Available on Internet: Chargeable data. Accessed 16.12.2011.

  • Tapio-Biström M.-L. Vihinen H. & Thessler S. (2006). Maatalouden ja maaseudun kohtalonyhteys – tapaus Mäntyharju.Terra 118(3-4) 173-187.

  • Terluin I. (2001). Rural regions in the EU: exploring differences in economic development.Netherlands Geographical Studies289. Koninklijk Nederlands Aardrijjkskundig Genootschap/Faculteit der Ruimtelijke Wetenschappen Rijksuniversiteit Groningen.

  • Terluin I. (2003). Differences in economic development in rural regions of advanced countries: an overview and critical analysis of theories. Journal of Rural Studies19(3) 327- 344. Doi: 10.1016/S0743-0167(02)00071-2.

  • Terluin I. & Venema G. (2003). Towards regional differentiation of rural development policy in the EU. The Hague: Agricultural Economics Research Institute (LEI).

  • Tietz A. & Grajewski R. (2009). Rural Development Programmes 2007-2013: Differences in EU Member States’ Financial Allocations. EuroChoices 8(1) 30-31.Doi: 10.1111/j.1746- 692X.2009.00119.x.

  • Varjo U. (1977). Finnish farming: typology and economics. Geography of world agriculture 6. Budapest: Research Institute of Geography Hungarian Academy of Sciences.

  • Varjo U. (1980). On the location of agriculture in Finland. Oulu: Societas Geographica Fenniae Nordicae.

  • Vihinen H. Tapio-Biström M.-L. & Voutilainen O. (2005). Rural marginalisation and multifunctional land use in Finland. Working Papers 103. Helsinki: MTT Agrifood Research Finland.

  • Voutilainen O. Vihinen H. & Wuori O. (2009). Maatalous maaseutu ja tukien kohdentuminen. Helsinki: MTT Agrifood Research Finland.

  • Wilson G. A. (2001). From productivism to post-productivism…and back again? Exploring the (un)changed natural and mental landscapes of European agriculture. Transactions of the Institute of British Geographers 26(1) 77-102. Doi: 10.1111/1475-5661.00007.

  • Wilson G. A. (2009a). Post-Productivist and Multifunctional Agriculture. In Kitchin R. & Thrift N. Eds. The International Encyclopedia of Human Geography (Rural Geography pp. 379-386). Amsterdam: Elsevier.

  • Wilson G. A. (2009b). The spatiality of multifunctional agriculture: A human geography perspective. Geoforum 40(2) 269-280. Doi: 10.1111/1475-5661.00007.

Journal information
Impact Factor

CiteScore 2018: 0.85

SCImago Journal Rank (SJR) 2018: 0.288
Source Normalized Impact per Paper (SNIP) 2018: 0.651

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 278 100 6
PDF Downloads 186 93 7