IDEAS home Printed from https://ideas.repec.org/p/ags/eaa107/6651.html
   My bibliography  Save this paper

Modeling The Rural-Urban Effects Of Changes In Agricultural Policies: A Bi-Regional Cge Analysis Of Two Case Study Regions

Author

Listed:
  • Balamou, Eudokia
  • Pouliaikas, Kostas
  • Roberts, Deborah
  • Psaltopoulos, Demetrios

Abstract

The paper uses bi-regional CGE models to analyse the effects of a change in agricultural support on two (very different) case study regions, one within Scotland, the other in Greece. Both regions are predominantly rural in nature but contain an urban centre as well as a rural hinterland. The results show qualitative and quantitative differences in the total effects in both regions as well as differences in the distribution of effects between their rural and urban parts. In particular, the negative effects of a reduction in price support are contained within rural primary sectors in the Scottish region: nonfarm rural sectors and urban sectors all benefit from the policy shock. In contrast, the negative impacts of a reduction in price support are more widely spread in the Greek region, with losers in both the urban and rural areas. These result are attributed to the stronger links between agriculture and first stage processing sectors in the Greek study area and also the ownership of agricultural factors by urban residents. Full decoupling at the regional level is shown to have negative aggregate effects in both study regions, driven by the high import intensity of household commodities. Again however there are gainers as well as losers from the policy shock suggesting a case for spatially and sectorally targeted support to alleviate the potentially negative effects of CAP reform at a regional level.

Suggested Citation

  • Balamou, Eudokia & Pouliaikas, Kostas & Roberts, Deborah & Psaltopoulos, Demetrios, 2008. "Modeling The Rural-Urban Effects Of Changes In Agricultural Policies: A Bi-Regional Cge Analysis Of Two Case Study Regions," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6651, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6651
    DOI: 10.22004/ag.econ.6651
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/6651/files/cp08ba15.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.6651?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chantreuil, Frédéric & Levert, Fabrice & Hanrahan, Kevin, 2005. "The Luxembourg Agreement Reform of the CAP: an Analysis Using the AG-MEMOD Composite Model," 89th Seminar, February 2-5, 2005, Parma, Italy 232590, European Association of Agricultural Economists.
    2. Löfgren, Hans & Harris, Rebecca Lee & Robinson, Sherman, 2001. "A standard computable general equilibrium (CGE) model in GAMS," TMD discussion papers 75, International Food Policy Research Institute (IFPRI).
    3. Giovanni Anania & Mary E.. Bohman & Colin A. Carter & Alex F. McCalla (ed.), 2004. "Agricultural Policy Reform and the WTO," Books, Edward Elgar Publishing, number 3471.
    4. Maureen Kilkenny, 1993. "Rural/Urban Effects of Terminating Farm Subsidies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 968-980.
    5. Yves Léon, 2005. "Rural development in Europe: a research frontier for agricultural economists," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 301-317, September.
    6. Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
    7. Yves Léon, 2005. "Rural development in Europe : a research frontier for agricultural economists," Post-Print hal-01931564, HAL.
    8. Demetrios Psaltopoulos & Eudokia Balamou & Kenneth J. Thomson, 2006. "Rural–Urban Impacts of CAP Measures in Greece: An Inter‐regional SAM Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 441-458, September.
    9. Binfield, Julian & Meyers, William H. & Westhoff, Patrick, 2005. "Challenges of Incorporating EU Enlargement and CAP Reform in the GOLD Model Framework," 89th Seminar, February 2-5, 2005, Parma, Italy 231835, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrea BONFIGLIO, 2008. "Evaluating Implications of Agricultural Policies in a Rural Region through a CGE Analysis," Working Papers 328, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Thomas G. Johnson & Deborah Roberts & Timothy R. Wojan, 2010. "Model‐Based Evaluation of Rural Development Policies L’évaluation de la politique de développement rural à partir de modèles Modellgestützte Evaluation von Politikmaßnahmen zur Entwicklung des ländlic," EuroChoices, The Agricultural Economics Society, vol. 9(1), pages 30-36, April.
    3. Esposti, Roberto, 2008. "Reforming The Cap: An Agenda For Regional Growth?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44868, European Association of Agricultural Economists.
    4. Viaggi, Davide & Bartolini, Fabio & Raggi, Meri & Sardonini, Laura, 2010. "The role of the Common Agricultural Policy in the spatial location of agricultural activities," 116th Seminar, October 27-30, 2010, Parma, Italy 95242, European Association of Agricultural Economists.
    5. A. Bonfiglio & B. Camaioni & S. Coderoni & R. Esposti & F. Pagliacci & F. Sotte, 2016. "Where does EU money eventually go? The distribution of CAP expenditure across the European space," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(4), pages 693-727, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cicia, Gianni & Colantuoni, Francesca & Del Giudice, Teresa & Pascucci, Stefano, 2011. "Community Supported Agriculture in the Urban Fringe: Empirical Evidence for Project Feasibility in the Metropolitan Area of Naples (Italy)," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(3), pages 1-14, December.
    2. Ahmed, Vaqar & O' Donoghue, Cathal, 2007. "CGE-Microsimulation Modelling: A Survey," MPRA Paper 9307, University Library of Munich, Germany.
    3. Pangbourne, Kate & Roberts, Deborah, 2012. "What multipliers don’t tell you: A spatial analysis of farm household linkages," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134718, Agricultural Economics Society.
    4. Gracia, Azucena & de Magistris, Tiziana & Casado, Jose Maria, 2008. "The Effect Of The New Single Farm Payment In Irrigated Agriculture: The Case Of Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6590, European Association of Agricultural Economists.
    5. Kuiper, Marijke H. & Keita, M.S. & Barbier, Bruno, 2007. "Developing Country impacts - Evaluating case studies," Reports 9290, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.
    6. Psaltopoulos, Demetris & Balamou, Eudokia & Skuras, Dimitris & Ratinger, Tomas & Sieber, Stefan, 2011. "Modelling the impacts of CAP Pillar 1 and 2 measures on local economies in Europe: Testing a case study-based CGE-model approach," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 53-69, January.
    7. Pouliakas, Konstantinos & Roberts, Deborah & Balamou, Eudokia & Psaltopoulos, Dimitris, 2008. "Modelling the Effects of Immigration on Regional Economic Performance and the Wage Distribution: A CGE Analysis of Three EU Regions," MPRA Paper 14157, University Library of Munich, Germany.
    8. Burrell, Alison M., 2010. "Is it becoming more difficult to research EU agricultural sector policies?," 50th Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93946, German Association of Agricultural Economists (GEWISOLA).
    9. Thomas G. Johnson & Deborah Roberts & Timothy R. Wojan, 2010. "Model‐Based Evaluation of Rural Development Policies L’évaluation de la politique de développement rural à partir de modèles Modellgestützte Evaluation von Politikmaßnahmen zur Entwicklung des ländlic," EuroChoices, The Agricultural Economics Society, vol. 9(1), pages 30-36, April.
    10. Mauricio Bittencourt & Donald Larson & David Kraybill, 2010. "Regional Short-Run Effects Of Trade Liberalization In Brazil," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 65-85.
    11. Pisani, Elena & Burighel, Laura, 2014. "Structures and dynamics of transnational cooperation networks: evidence based on Local Action Groups in the Veneto Region," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173117, Italian Association of Agricultural and Applied Economics (AIEAA).
    12. Morley, Samuel & Piñeiro, Valeria, 2011. "A regional computable general equilibrium model for Guatemala: Modeling exogenous shocks and policy alternatives," IFPRI discussion papers 1137, International Food Policy Research Institute (IFPRI).
    13. Esposti, Roberto, 2008. "Reforming The Cap: An Agenda For Regional Growth?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44868, European Association of Agricultural Economists.
    14. Pisani, Elena & Burighel, Laura, 2014. "Structures and dynamics of transnational cooperation networks: evidence based on Local Action Groups in the Veneto Region, Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(3), pages 1-21, December.
    15. Breisinger, Clemens, 2006. "Roads - A way out of poverty? A two region, general equilibrium model for Vietnam," Conference papers 331478, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Salamon, Petra, 2005. "How to Derive Market Impacts of the Luxembourg Agreement on the German Beef Market - A Synthetic Uniform Model versus an Econometric Country Specific Model," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24570, European Association of Agricultural Economists.
    17. Nina Hyytiä, 2014. "Farm diversification and regional investments: efficient instruments for the CAP rural development targets in rural regions of Finland?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(2), pages 255-277.
    18. Strzepek, Kenneth M. & Yohe, Gary W. & Tol, Richard S.J. & Rosegrant, Mark W., 2008. "The value of the high Aswan Dam to the Egyptian economy," Ecological Economics, Elsevier, vol. 66(1), pages 117-126, May.
    19. Hernandez, Gustavo Adolfo & Nunez, Jairo & Gonzalez, Nestor, 2007. "¿Es posible alcanzar los Objetivos del Milenio en Colombia? Una evaluación de estrategias de focalización y financiamiento," MPRA Paper 28432, University Library of Munich, Germany.
    20. Gohin, Alexandre, 2006. "Assessing the 2003 CAP Reform: Sensitivity to the Decoupling of Agenda 2000 Direct Payments," Working Papers 18868, TRADEAG - Agricultural Trade Agreements.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaa107:6651. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.