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From Geographical Indications to Rural Development: A Review of the Economic Effects of European Union Policy

Leonardo Cei (), Edi Defrancesco () and Gianluca Stefani ()
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Leonardo Cei: Land, Environment, Resources and Health (LERH) PhD Program—Land, Environment, Agriculture and Forestry (LEAF) Department, University of Padova, 35020 Legnaro, Italy
Edi Defrancesco: Land, Environment, Agriculture and Forestry (LEAF) Department, University of Padova, 35020 Legnaro, Italy
Gianluca Stefani: DISEI Department, University of Firenze, 50127 Firenze, Italy

Sustainability, 2018, vol. 10, issue 10, 1-21

Abstract: One of the main functions of geographical indications (GIs) is to provide information and quality to consumers. This, in turn, can generate benefits for producers and stimulate rural development processes, as advocated by European Union (EU) legislation. The objective of the present study is to understand if the theorized effects of GIs on local economic development are supported by empirical evidence. Using a systematic approach, we reviewed the literature on the topic and structured the results of the review adopting a supply chain framework. This allows us to better understand how the effects of GIs are distributed among the chain actors and finally arrive at the local territories where GI products originate. Evidence shows that GIs are actually able to generate value added, especially at the consumer and retailer levels, while the effects on the economic performance of producers are more heterogeneous and dependent on specific local conditions. The review also highlighted some drawbacks in the literature that make it difficult to draw robust conclusions about the actual impact of GI policy at the European level. Therefore, despite the GI tool actually showing good potential for improving local economic conditions, more structured and focused research is needed.

Keywords: geographical indications; literature review; economic impact; rural development (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2018
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