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Success or Waste of Taxpayer Money? Impact Assessment of Rural Development Programs in Hungary

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  • Bakucs, Zoltan L.
  • Ferto, Imre

Abstract

The effectiveness of support directed to less developed regions is a timely question more than halfway through the 2014–2020 programming period. We present an analysis of the impact of rural development support on the well-being of Hungarian LAU1 regions between 2008 and 2013. The aim was to measure the overall impact of all of the Rural Development Funds, covering all measures within the program. Two indices of local well-being were used: the multi-dimensional, local-variables-based Regional Development Index that measures the overall level of regional development and a simple, migration-based index as a proxy for perceived quality of life. Generalized propensity score matching, and difference-in-differences estimation techniques were employed to evaluate the impact of subsidies. Irrespective of how the amount of support was calculated, the measure of local well-being, or the methodology employed, the impact was not significant, and was sometimes even negative. This casts doubt on the effectiveness of Rural Development Policy in Hungary.
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  • Bakucs, Zoltan L. & Ferto, Imre, 2017. "Success or Waste of Taxpayer Money? Impact Assessment of Rural Development Programs in Hungary," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259159, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea17:259159
    DOI: 10.22004/ag.econ.259159
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    More about this item

    Keywords

    Public Economics; Community/Rural/Urban Development; Research Methods/Statistical Methods;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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