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Impacts Of Cap Reform On Rural Employment: A Multimodeling Cross Country Approach

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  • Mattas, Konstadinos
  • Arfini, Filippo
  • Midmore, Peter
  • Schmitz, P. Michael
  • Surry, Yves R.
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    Abstract

    Expected impacts due to recently introduced CAP reforms can be felt beyond the agricultural sector affecting the entire regional economy. Employment levels will be affected within the farming sector and probably non-agricultural sector will feel the pinch too. Policies influencing employment levels attract the attention of the media and the public. Therefore, policy makers are more sensitive on employment issues than rural and agricultural policies as it is widely admitted that no vibrant regions in Europe can be envisioned without enhancing job opportunities. The influence of CAP reform on employment has not been thoroughly studied within a comprehensive approach, accounting for agricultural and non-agricultural effects and covering the diversity of EU rural regions. In this research work, five EU regions [Emilia Romagna (IT), East Wales (UK), Anatoliki Makedonia and Thraki (GR), Östergötland (SWE) and Kassel (GER)] have been selected and studied to identify and measure CAP’s effects on employment throughout the regional economy. A framework of three different approaches (Participatory Process/desk research, PMP, I-O) was developed and then applied to those five EU regions to trace out the current and anticipated employment effects of Pillar I and II. The main focus of this work is on consolidating results derived from different models, applied to five EU regions, to deduce valuable policy generalizations and to derive conclusions that guide policy makers on decisions related to regional and rural development. The results offer a comprehensive picture of the impacts of CAP reforms on regional economies and employment enriching the understanding of the range and diversity of contexts in which CAP is being applied.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 109th Seminar, November 20-21, 2008, Viterbo, Italy with number 44801.

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    Date of creation: 12 Nov 2008
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    Handle: RePEc:ags:eaa109:44801

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    Web page: http://www.eaae.org
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    Related research

    Keywords: CAP reform; rural employment; I/O analysis; PMP; qualitative analysis.; Agricultural and Food Policy; Research Methods/ Statistical Methods; Q12; Q18; R15.;

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    1. Midmore, Peter & Langstaff, Lesley & Lowman, Stephen & Vaughan, Alison, 2008. "Evaluating Pillar 2 Employment Impacts: Case Study Methodology and Results for East Wales," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43959, European Association of Agricultural Economists.
    2. Barry K. Goodwin & Ashok K. Mishra, 2005. "Another Look at Decoupling: Additional Evidence on the Production Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1200-1210.
    3. Judez, L. & Chaya, C. & Martinez, S. & Gonzalez, A. A., 2001. "Effects of the measures envisaged in "Agenda 2000" on arable crop producers and beef and veal producers: an application of Positive Mathematical Programming to representative farms of a Span," Agricultural Systems, Elsevier, vol. 67(2), pages 121-138, February.
    4. Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440.
    5. David Colman & Michael Burton & Dan Rigby & Jeremy Franks, 2002. "Structural Change and Policy Reform in the UK Dairy Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 645-663.
    6. Mary Clare Ahearn & Jet Yee & Penni Korb, 2005. "Effects of Differing Farm Policies on Farm Structure and Dynamics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1182-1189.
    7. Christos T. Papadas & Dale C. Dahl, 1999. "Supply-Driven Input-Output Multipliers," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 269-285.
    8. Joe Dewbre, 2006. "The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 393-408.
    9. Teresa Serra & Barry K. Goodwin & Allen M. Featherstone, 2005. "Agricultural Policy Reform and Off-farm Labour Decisions," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(2), pages 271-285.
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