Regional Impacts of Direct Payments on Farm Productivity and Efficiency in the European Union

Attila Jambor and Akos Szerletics

AGRIS on-line Papers in Economics and Informatics, 2022, vol. 14, issue 01

Abstract: This paper analyses the regional impacts of direct payments on the labour and land productivity of European farms. The basic assumption of the research is that direct CAP subsidies have a positive effect on productivity and efficiency. This was tested by quantitative regression-analysis models, which were based on NUTS2-level regional data from 2008-2018. The results show that direct subsidies have a negative effect on labour and productivity in agriculture, a finding that can be attributed to a number of underlying factors. The direction and magnitude of these productivity effects differ markedly between old and new Member States.

Keywords: Community/Rural/Urban Development; Land Economics/Use; Livestock Production/Industries; Productivity Analysis (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aolpei:320339

DOI: 10.22004/ag.econ.320339

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