ROLE OF FINANCIAL SUBSIDIES ALLOCATED BY THE CAP AND OUT EMIGRATION IN ROMANIAN RURAL AREAS

Nicola Galluzzo
Additional contact information
Nicola Galluzzo: FOOD SCIENCE ASSOCIAZIONE STUDI GEOGRAFICO-ECONOMICI DELLE AREE RURALI

Annals - Economy Series, 2016, vol. 3, 218-224

Abstract: In all European countries there has been a significant emigration from the countryside and this has been particularly intense in some nations after the collapse of Communist regimes. On average every year more than 15.000 Romanian people emigrate to other countries. The purpose of this paper was to investigate by a quantitative approach over the time 2007-2013 the main correlation between the emigration in all Romanian counties and financial supports allocated by the Common Agricultural Policy. The methodology has used a multiple regression model comparing Fixed Effect (FE) panel data to pooled Ordinary Least Square (OLS). Hausman’s test has pointed out as the FE approach has been the best in estimating the parameters of the multiple correlation. Findings have highlighted out a positive correlation between rural emigration and financial payments allocated by the first pillar of the CAP. The impact of financial supports allocated by the second pillar of the CAP has not implied any effects in reducing emigration from Romanian countryside. In general, less favoured rural areas, characterised by a low level of assets and investments have had the highest level of permanent emigration. Summing up, the Rural Development Plan should implement the financial allocation towards rural areas which recently are involved in an intense process of counter-urbanization from urban space.

Keywords: permanent emigration; multiple regression model; panel data; Rural Development Plan; counter-urbanization. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.utgjiu.ro/revista/ec/pdf/2016-03/41_NICOLA%20GALLUZZO.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2016:v:3:p:218-224

Access Statistics for this article

More articles in Annals - Economy Series from Constantin Brancusi University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ecobici Nicolae ( this e-mail address is bad, please contact ).