EconPapers    
Economics at your fingertips  
 

Employment effects of CAP payments in the UK non-farm economy

Marian Rizov, Sophia Davidova () and Alastair Bailey

European Review of Agricultural Economics, 2018, vol. 45, issue 5, 723-748

Abstract: This paper investigates the effects of the Common Agricultural Policy (CAP) payments on the indirectly generated non-farm jobs in small and medium-sized enterprises, which are central to job creation. It examines whether there are differences in the effect according to business location – rural or urban, the agricultural supply chain and according to CAP Pillars. A microeconomic approach is employed, based on firm data from FAME dataset combined with detailed subsidies information from Department of Environment, Food and Rural Affairs. The generalised method of moments (system GMM) is used to estimate the effect of CAP payments in both static and dynamic models of employment. The results suggest positive net spillovers of CAP payments to non-farm employment. Although the magnitude of the effect is small, it is economically significant. In general, Pillar 1 has a stronger positive employment effect relative to Pillar 2. However, Pillar 2 payments have a stronger positive effect per Euro spent in rural areas and within agricultural supply chain.

Keywords: CAP; non-farm employment; SMEs; spillovers; rural–urban; system GMM (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/erae/jby008 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Chapter: Employment Effects of CAP Payments in the UK Non-Farm Economy (2019) Downloads
Journal Article: Employment effects of CAP payments in the UK non-farm economy (2019) Downloads
Journal Article: Employment effects of CAP payments in the UK non-farm economy (2018) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2018) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2017) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2017) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2016) Downloads
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:oup:erevae:v:45:y:2018:i:5:p:723-748.

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Christoph Weiss, Thomas Heckelei and Paolo Sckokai

More articles in European Review of Agricultural Economics from Foundation for the European Review of Agricultural Economics Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ( this e-mail address is bad, please contact ) and Christopher F. Baum ().

 
Page updated 2021-04-12
Handle: RePEc:oup:erevae:v:45:y:2018:i:5:p:723-748.