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Impact of CAP Financial Subsidies on Rural Development and Emigration in Bulgarian Rural Areas

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  • Nicola Galluzzo

    (Association of Economic and Geographic Studies in Rural Areas (ASGEAR), Bulgaria)

Abstract

Bulgaria has suffered of an intense and continuous phenomenon of rural depopulation considering that the population has a level of per capita income lower two times and half than the average European value. The purpose of this paper was to assess if the financial subsidies allocated by the Common Agricultural Policy (CAP) both in the first and also in second pillar have reduced the permanent emigration. The quantitative methodology has used the Farm Accountancy Data Network dataset from 2007 to 2015. In the first approach, the linear regression model has estimated main correlations among emigration and payments allocated by the CAP, in particular towards disadvantaged rural areas. In the second phase, it has used the Structural Equation Model aimed at investigating in a path analysis the main cause-effect relationships between CAP and permanent emigration. Findings have pointed out the positive role of the financial subsidies allocated by the CAP in reducing the emigration even if outcomes have pointed out a not univocal interpretation of the effect of the CAP's two pillars and few measures of intervention. For the future, it is important to support financially Bulgarian farms and mostly some of them located in disadvantaged rural areas.

Suggested Citation

  • Nicola Galluzzo, 2017. "Impact of CAP Financial Subsidies on Rural Development and Emigration in Bulgarian Rural Areas," International Conference on Competitiveness of Agro-food and Environmental Economy Proceedings, The Bucharest University of Economic Studies, vol. 6, pages 50-61.
    • Handle: RePEc:aes:icafee:v:6:y:2017:p:50-61
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    References listed on IDEAS

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