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

Marian Rizov, Sophia Davidova and Alastair Bailey

EconStor Open Access Articles and Book Chapters, 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)
JEL-codes: D22 H25 J20 Q18 R11 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/184746/1/E ... cts%20R2%20final.pdf (application/pdf)

Related works:
Chapter: Employment Effects of CAP Payments in the UK Non-Farm Economy (2019)
Journal Article: Employment effects of CAP payments in the UK non-farm economy (2019)
Journal Article: Employment effects of CAP payments in the UK non-farm economy (2018)
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2018)
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2017)
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2017)
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2016)
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:zbw:espost:184746

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().