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The effects of EU corn, cotton, and sugar beet policies on Greek producers: a multimarket analysis

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  • Stelios D. Katranidis
  • Elisavet I. Nitsi
  • David S. Bullock

Abstract

This article examines the welfare effects of the European Union's Common Agricultural Policy (CAP) corn, cotton, and sugar beet regimes practiced in Greece after its 1981 entry into the European Union. Since Greek farmers produce corn, cotton, and sugar beets on the same land in different years, we model these markets as horizontally linked. By incorporating the demand for corn in our model, we take into account that corn is used as feed in livestock production. We use line integral theory to properly deal with the complications of welfare measurement in a multimarket setting. We estimate producer welfare effects of Greek corn, cotton, and sugar beet policy, and use bootstrapping techniques to obtain confidence intervals for the welfare measurements. Our analysis indicates that the income transfers to Greek farmers, (corn, cotton, and sugar beet growers as well as livestock producers considered as a total), rose between 1981 and 1992. The 1992 CAP reform led to a stabilization of income transfers to crop farmers, and lessened the negative impact on livestock producers.

Suggested Citation

  • Stelios D. Katranidis & Elisavet I. Nitsi & David S. Bullock, 2005. "The effects of EU corn, cotton, and sugar beet policies on Greek producers: a multimarket analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 423-430, November.
    • Handle: RePEc:bla:agecon:v:33:y:2005:i:s3:p:423-430
    DOI: 10.1111/j.1574-0864.2005.00376.x
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    Cited by:

    1. Dimitrios Dadakas & Stelios Katranidis, 2008. "Single Versus Multi-market Approach: An Application to the Greek Cotton Market," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(4), pages 469-481, December.
    2. Dadakas, Dimitrios & Katranidis, Stelios D., 2006. "MFA Quotas Elimination: the Case of Cotton Yarn in Greece - a Multi-Market vs. a Single Market Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21390, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Dimitrios Dadakas & Stelios D Katranidis, 2009. "Trade Liberalization in T&C: An Overview of the Welfare Effects," Discussion Paper Series 2009_15, Department of Economics, University of Macedonia, revised Nov 2009.
    4. Dimitrios Dadakas & Stelios D Katranidis & David S. Bullock, 2009. "On the effects of technology improvements in multi-market models: Theory and evidence," Discussion Paper Series 2009_04, Department of Economics, University of Macedonia, revised Mar 2009.
    5. Dimitrios Dadakas & Stelios D. Katranidis, 2010. "The Effects of Trade Liberalization in Textiles and Clothing on the Greek Market for Cotton Yarn: A Multi‐Market Analysis," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 138-152, February.

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