AGRITOURISM AND LESS FAVORED AREAS SUBSIDIES IMPACT ON TECHNICAL EFFICIENCY OF ITALIAN FARMS

Nicola Galluzzo ()
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Nicola Galluzzo: Association of Economic and Geographical Studies in Rural Areas, Rieti, Italy

Agricultural Economics and Rural Development, 2022, vol. 19, issue 1, 61-75

Abstract: In Italy, since the early 2000s, there has been a significant growth of agritourism through financial subsidies allocated in the framework of the Rural Development Program. This on-farm activity has been fundamental in reducing the socio-economic marginalization in rural areas, in particular in disadvantaged rural areas receiving direct payments aimed at supporting less favoured areas. This paper presents the findings of the impact of financial subsidies allocated by the second pillar of the Common Agricultural Policy on Italian farms and the role of agritourism in improving the technical efficiency of farms. The analysis was carried out in the period 2004–2019 in a sample of farms part of the Italian Farm Accountancy Data Network dataset. Technical efficiency was estimated using the non-parametric method of Data Envelopment Analysis. The results revealed that the income from agritourism and the Less Favored Areas subsidies impacted the technical efficiency in farms in a different way. The economic size and the type of farming pointed out different results in the impact of agritourism revenues, First Pillar payments and Less Favored Areas subsidies on Italian farms.

Keywords: DEA; first pillar; rural areas; FADN. (search for similar items in EconPapers)
JEL-codes: Q18 Q19 (search for similar items in EconPapers)
Date: 2022
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