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Application of spatial econometric approach in the evaluation of rural development policy: the case of measure Modernisation of agricultural holdings

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  • Travnikar, Tanja
  • Juvančič, Luka

Abstract

The paper analyses targeting and spatial impacts of investment support on agricultural holdings in Slovenia within the national Rural Development Plan for the period 2007-2013. The measure Modernisation of agricultural holdings primarily tackles the problem of low labour productivity in Slovenian agriculture. Achievement of the stated objective of productivity enhancement in agriculture is monitored by the relevant Common Monitoring and Evaluation Framework indicator, standard output (i.e. approximated revenue) per annual work unit SO/AWU. Municipalities (LAU2) are the territorial units of the analysis. Non-spatial and spatial econometric models are developed in order to determine to what extent the estimated labour productivity is affected by intensity of investment support and other factors (measure-specific variables, agricultural structures, socio-economic conditions and geographical conditions). Effectiveness of spatial targeting has been analysed by testing the assumption of a positive relationship between the intensity of implementation of the analysed measure and the productivity. The presence of spatial effects (spatial autocorrelation and spatial heterogeneity) has been examined by including the spatial weight matrix to the ordinary least squares regression. The results confirm a positive relationship between farm investment support and agricultural labour productivity and spatial spillovers in agricultural labour productivity.

Suggested Citation

  • Travnikar, Tanja & Juvančič, Luka, 2013. "Application of spatial econometric approach in the evaluation of rural development policy: the case of measure Modernisation of agricultural holdings," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 115(2), pages 1-7, June.
    • Handle: RePEc:ags:stagec:149413
    DOI: 10.22004/ag.econ.149413
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    References listed on IDEAS

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    1. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
    2. Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
    3. Harry H. Kelejian & Dennis P. Robinson, 1995. "Spatial Correlation: A Suggested Alternative to the Autoregressive Model," Advances in Spatial Science, in: Luc Anselin & Raymond J. G. M. Florax (ed.), New Directions in Spatial Econometrics, chapter 3, pages 75-95, Springer.
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    1. Victoria GANEA & Oleg BUJOR & Diana GROZAV, 2014. "Operation Principles Of Innovational Policy In Order To Intensificate The Economic Growth," ECONOMY AND SOCIOLOGY: Theoretical and Scientifical Journal, Socionet;Complexul Editorial "INCE", issue 3, pages 73-84.
    2. Irena KRISCIUKAITIENE & Gerald SCHWARZ, 2014. "Key Determinants Of The Productivity Of The Agricultural Sectors In Lithuania And Germany: What Role Do Rural Development Programmes Play?," ECONOMY AND SOCIOLOGY: Theoretical and Scientifical Journal, Socionet;Complexul Editorial "INCE", issue 3, pages 67-72.

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