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The Impact of EU Accession on Farm Production in the Czech Republic: A Synthetic Control Method Approach

Author

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  • Matej Opatrny

    (Charles University, Institute of Economic Studies, Prague, Czech Republic)

Abstract

Czech farmers experienced an enormous exogenous shock when they joined the common agricultural market (CAM) and the Common Agricultural Policy (CAP) in 2004. Using the World Bank’s dataset, we apply the synthetic control method to establish a counterfactual case of the Czech Republic food production index in the absence of the CAM and CAP. The results show that the Czech Republic would have had a higher food index if it had not entered the CAM and CAP. Moreover, we show that the CAP and CAM had different impacts on farms in the Czech Republic and Bulgaria, which have the most comparable agriculture according to the results of the synthetic control method.

Suggested Citation

  • Matej Opatrny, 2020. "The Impact of EU Accession on Farm Production in the Czech Republic: A Synthetic Control Method Approach," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 70(3), pages 281-307, September.
  • Handle: RePEc:fau:fauart:v:70:y:2020:i:3:p:281-307
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    File URL: https://journal.fsv.cuni.cz/mag/article/show/id/1463
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    Cited by:

    1. Ikeme, Sionegael & Han, Doo Bong, 2021. "The Impacts of the EU Integration on Food Production in Baltic Countries," 2021 Annual Meeting, August 1-3, Austin, Texas 313989, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    common agriculture policy; common agricultural market; subsidies; farms; synthetic control method;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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