Scandinavian Working Papers in Economics
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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 382:
Small-scale food production and location of gourmet restaurants in rural Sweden.

Sara Johansson () and Lars Pettersson ()

Abstract: This study explore the location pattern of gourmet restaurants in Sweden by using information about restaurant quality from the White Guide. The purpose of the paper is to analyze which factors that influence the location pattern of gourmet restaurants, with particular focus on the influence of small-scale food producers. This variable can be expected to be of substantial importance in creating comparative advantages related to geographical location. Econometric estimates of a zero-inflated Poisson regression show that the number of small-scale food producers in a location significantly increases the number of gourmet restaurants in locations with non-zero count. Moreover, factors related to the demand side, such as market size and tourism significantly increases the number of gourmet restaurants in a municipality once the probability of a non-zero count is accounted for. The tourism sector appears to be of particular strong importance in rural areas where the size of the permanently residing population is insufficient for creating business opportunities for restaurateurs striving for the upper quality segment.

Keywords: Culinary markets; restaurants; small-scale food production; tourism; regional development; innovation systems; agglomeration economies; (follow links to similar papers)

JEL-Codes: L66; R10; (follow links to similar papers)

19 pages, November 7, 2014

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