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ROLE OF FINANCIAL SUBSIDIES ALLOCATED BY THE COMMON AGRICULTURAL POLICY IN REDUCING OUT EMIGRATION IN ITALIAN COUNTRYSIDE

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

Romanian Journal of Regional Science, 2016, vol. 10, issue 2, 50-63

Abstract: The Common Agricultural Policy has had some direct impacts on the rural spaces and activities of farmers generating a new concept of rurality, which is pivotal to the growth of socioeconomic development of the European countryside. Financial subsidies allocated by the European Union have acted on the labour workforce in the countryside, corroborating the hypothetical framework according to which subsidies can halt and contrast the out emigration in rural space. A low level of financial payments allocated by the EU is typical for poor rural areas with a high level of out emigration. In this paper one has used the Probit model aimed at assessing the relationships between financial subsidies and out emigration. Findings have highlighted that a low level of emigration in countryside is indirectly correlated to financial subsidies allocated by the second pillar of the CAP, which is aimed at halting the out emigration.

Keywords: choice model; FADN; Italy; II pillar; rural development. (search for similar items in EconPapers)
JEL-codes: O18 J61 R12 (search for similar items in EconPapers)
Date: 2016
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