Subsidies and agricultural productivity in the EU

Autor: Dorien Emmers, Johan F.M. Swinnen, Hyejin Lee, Alessandro Olper, Maria Garrone
Rok vydání: 2019
Předmět:
Zdroj: Agricultural Economics. 50:803-817
ISSN: 1574-0862
0169-5150
DOI: 10.1111/agec.12526
Popis: This paper investigates the relationship between EU agricultural subsidies and agricultural labor productivity growth by estimating a conditional convergence growth model. We use more representative subsidy indicators and a wider coverage (panel data from 213 EU regions over the period 2004–2014) than have been used before. We find that, on average, EU's Common Agricultural Policy (CAP) subsidies increase agricultural labor productivity growth, but this aggregate effect hides important heterogeneity of effects of different types of subsidies. The positive effect on productivity comes from decoupled subsidies, that is, Pillar I decoupled payments and some Pillar II payments. Coupled Pillar I subsidies have the opposite effect: they slow down productivity growth.
Databáze: OpenAIRE