CAP Reform and Its Impact on Structural Change and Productivity Growth: A Cross Country Analysis

Andrius Kazukauskas, Carol Newman and Johannes Sauer
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Johannes Sauer: School of Social Sciences, University of Manchester

Economic Papers from Trinity College Dublin, Economics Department

Abstract: The decoupling of direct payments from production, introduced in the recent reform of the Common Agricultural Policy (CAP) is expected to make production decisions more market-oriented and farmers more productive. However, ex-post analyses of the productivity of farms have yet to uncover any evidence of a positive impact of the decoupling policy on farm productivity. Using Irish, Danish and Dutch farm level data, we identify whether the decoupling policy has contributed to productivity growth in agriculture and to what extent enterprise switching and specialisation are important productivity improving mechanisms. We find some evidence that the decoupling policy and related farm enterprise specialisation had significant positive effects on farm productivity.

Keywords: productivity; subsidy decoupling; semi-parametric estimation; switching; specialisation (search for similar items in EconPapers)
JEL-codes: D24 Q12 Q18 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011-02
New Economics Papers: this item is included in nep-agr and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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http://www.tcd.ie/Economics/TEP/2011/TEP0411.pdf

Related works:
Working Paper: CAP reform and its impact on structural change and productivity growth: A cross country analysis (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:tcd:tcduee:tep0411

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