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Rural–Urban Impacts of CAP Measures in Greece: An Inter‐regional SAM Approach

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  • Demetrios Psaltopoulos
  • Eudokia Balamou
  • Kenneth J. Thomson

Abstract

This paper evaluates the inter‐regional impacts of CAP measures implemented in the rural town of Archanes (Crete, Greece), an area which received considerable EU Agricultural Guarantee and rural development funds during the 1990s. A hybrid, three‐area Social Accounting Matrix (SAM) with three groups of households defined by income level is constructed to describe inter‐linkages between three rural–urban localities, namely the rural area of Archanes, the less‐developed, agriculturally dependent, neighbouring rural area of N. Kazantzakis, and the adjacent urban centre of Heraklion. Results are reported on the diffusion patterns of economic impacts generated by three types of CAP measure: farm income support; aids to increased agricultural productivity; aids to economic diversification. These show that the diffusion of policy‐induced economic impacts from Archanes is lower than might be expected for a small open local economy, and that benefits leak primarily to Heraklion and marginally to rural N. Kazantzakis. Finally, generated income benefits seem to accrue mostly in favour of high‐income households, especially in the case of Guarantee subsidies.

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  • 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.
  • Handle: RePEc:bla:jageco:v:57:y:2006:i:3:p:441-458
    DOI: 10.1111/j.1477-9552.2006.00059.x
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    File URL: https://doi.org/10.1111/j.1477-9552.2006.00059.x
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    References listed on IDEAS

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    1. Robinson, Sherman & El-Said, Moataz, 2000. "GAMS code for estimating a social accounting matrix (SAM) using cross entropy methods (CE)," TMD discussion papers 64, International Food Policy Research Institute (IFPRI).
    2. Pyatt, Graham & Round, Jeffrey I, 1977. "Social Accounting Matrices for Development Planning," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 339-364, December.
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    Cited by:

    1. Pei, Pei & Wu, Ziping & Longo, Alberto, 2015. "Developing a Rural-Urban Social Accounting Matrix for Northern Ireland," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204288, Agricultural Economics Society.
    2. Midmore, Peter, 2008. "Landscape Conservation And Economic Interdependence: A Case-Study Of Welsh National Parks And The Regional Economy," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36864, Agricultural Economics Society.
    3. Leeuwen, E.S. van & Nijkamp, P., 2009. "Social Accounting Matrices; The development and application of SAMs at the local level," Serie Research Memoranda 0045, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. 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.
    5. Lampiris, Georgios & Karelakis, Christos & Loizou, Efstratios, 2018. "Evaluation of the impacts of CAP policy measures on a local economy: The case of a Greek region," Land Use Policy, Elsevier, vol. 77(C), pages 745-751.
    6. 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).
    7. Zuzana Bednaříková, 2015. "Evaluation of the Impacts of Rural Development Policy Measures on the Local Economy in the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(4), pages 416-433.
    8. 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.
    9. Psaltopoulos, Demetrios & Skuras, Dimitris & Thomson, Kenneth J., 2011. "Employment effects of private investment initiatives in rural areas of southern Europe: A regional SAM approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    10. Esposti, R. & Pagliacci, F. & Sotte, F. & Camaioni, Beatrice & Lobianco, A., 2013. "How rural the EU RDP is? An analysis through spatial funds allocation," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149900, Italian Association of Agricultural and Applied Economics (AIEAA).
    11. Sébastien Mary & Fabien Santini & Maria Espinosa & Alejandro Cardenete & Sergio Gomez y Paloma, 2013. "The rural-urban spillovers of EU structural policies in Cordoba, Spain," JRC Working Papers JRC85301, Joint Research Centre (Seville site).
    12. Thomson, Kenneth J. & Psaltopoulos, Demetrios, 2007. "General Equilibrium Analysis of the Spatial Impacts of Rural Policy," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9402, European Association of Agricultural Economists.
    13. Hyytiä Nina, 2014. "Rural-Urban Multiplier and Policy Effects in Finish Rural Regions: an Inter-Regional Sam Analysis," European Countryside, Sciendo, vol. 6(2), pages 1-23, June.
    14. Camaioni, Beatrice & Esposti, Roberto & Lobianco, Antonello & Pagliacci, Francesco & Sotte, Franco, 2013. "How rural is the EU RDP? An analysis through spatial fund allocation," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-24, December.
    15. Ratinger, Tomas & Kristkova, R., 2012. "Rural Economies and ahe Pillar 2 Budget Debate: A Regional Perspective," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4), pages 1-11, December.
    16. 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.
    17. Dimitris Psaltopoulos & Eudokia Balamou, 2005. "Modelling the Effects of Trade Policy Scenarios on Multifunctionality in Greek Agriculture: A Social Accounting Matrix Approach," ENARPRI Working Papers 014, ENARPRI (European Network of Agricultural and Rural Policy Research Institutes).
    18. repec:elg:eechap:14395_9 is not listed on IDEAS
    19. Burrell, A., 2011. "Is it becoming more difficult to research EU agricultural sector policies?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46, March.
    20. G. Lindberg & P. Midmore & Y. Surry, 2012. "Agriculture’s Inter-industry Linkages, Aggregation Bias and Rural Policy Reforms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 552-575, September.
    21. 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, Foundation for the European Review of Agricultural Economics, vol. 41(2), pages 255-277.
    22. 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.
    23. Beatrice Camaioni & Roberto Esposti & Antonello Lobianco & Francesco Pagliacci & Franco Sotte, 2013. "Looking for PeripheRurality. WWWforEurope Working Paper No. 35," WIFO Studies, WIFO, number 46921, March.

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