CAP subsidies and productivity of the EU farms

Rizov, Marian and Pokrivcak, Jan and Ciaian, Pavel (2013) CAP subsidies and productivity of the EU farms. Journal of Agricultural Economics, 64 (3). pp. 537-557. ISSN 0021-857X

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Abstract

The paper investigates the impact of the Common Agricultural Policy (CAP) subsidies on farm total factor productivity (TFP) in the European Union (EU). We employ a structural semi-parametric estimation algorithm directly incorporating the effect of subsidies into a model of unobserved productivity. We empirically study the effects using the Farm Accountancy Data Network (FADN) samples for the EU-15 countries. Our main findings are clear: subsidies impact negatively on farm productivity in the period before the decoupling reform was implemented; after decoupling the effect of subsidies on productivity is more nuanced and in several countries it turned positive.

Item Type: Article
Keywords (uncontrolled): CAP subsidies; investment; productivity; micro data; EU farms
Research Areas: A. > Business School > Economics
Item ID: 13104
Depositing User: Marian Rizov
Date Deposited: 06 Mar 2014 06:39
Last Modified: 13 Oct 2016 14:30
URI: http://eprints.mdx.ac.uk/id/eprint/13104

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