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Where does EU money eventually go? The distribution of CAP expenditure across the European space

Author

Listed:
  • A. Bonfiglio

    (CREA - Consiglio per la Ricerca in agricoltura e l’analisi)

  • B. Camaioni

    (CREA - Consiglio per la Ricerca in agricoltura e l’analisi)

  • S. Coderoni

    (Università Politecnica delle Marche)

  • R. Esposti

    (Università Politecnica delle Marche)

  • F. Pagliacci

    (Università degli Studi di Modena e Reggio Emilia)

  • F. Sotte

    (Università Politecnica delle Marche)

Abstract

This paper aims to assess the distribution of overall Gross Domestic Product and employment effects produced by Common Agricultural Policy (CAP) payments across the European Union space. It is empirically investigated how policy funds redistribute their effects among regions with different levels of rurality and economic development according to their degree and form of integration. This analysis is performed by constructing and applying a multiregional Input–Output model at a very high level of geographical disaggregation (NUTS 3 level). Alternative allocation of funds across regions (policy scenarios) are considered in order to assess redistributive impacts of possible CAP reforms. Results show that the impacts generated by the CAP across space do not only depend on the initial allocation of funds but also on intersectoral and interregional linkages. This evidence implies that even a radical reallocation of funds, though it may contribute to reducing regional imbalances, is less redistributive than expected.

Suggested Citation

  • 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.
    • Handle: RePEc:kap:empiri:v:43:y:2016:i:4:d:10.1007_s10663-016-9354-2
    DOI: 10.1007/s10663-016-9354-2
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    2. Michael Böheim & Harald Oberhofer, 2016. "Special Issue: Challenges for Europe 2050: Selected papers of the EUROFRAME Conference 2015 and the WWWforEurope Project," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(4), pages 657-660, November.
    3. Mercedes Rodríguez & José Antonio Camacho, 2023. "The importance of agriculture and rural areas for the future in the European Union: An exploration of public opinion," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(10), pages 394-403.
    4. Mercedes Rodríguez & José Antonio Camacho, . "The importance of agriculture and rural areas for the future in the European Union: An exploration of public opinion," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 0.
    5. Ricardo A. Correia & Miguel N. Bugalho & Aldina M. A. Franco & Jorge M. Palmeirim, 2018. "Contribution of spatially explicit models to climate change adaptation and mitigation plans for a priority forest habitat," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(3), pages 371-386, March.
    6. Andrejovská, A. & Buleca, J. & Hudákova, M., 2016. "Categorization of the EU Countries in the Context of Agricultural Production," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(4), pages 1-12, December.
    7. Lillemets, Jüri & Fertő, Imre & Viira, Ants-Hannes, 2022. "The socioeconomic impacts of the CAP: Systematic literature review," Land Use Policy, Elsevier, vol. 114(C).
    8. Zasada, I. & Weltin, M. & Reutter, M. & Verburg, P.H. & Piorr, A., 2018. "EU’s rural development policy at the regional level—Are expenditures for natural capital linked with territorial needs?," Land Use Policy, Elsevier, vol. 77(C), pages 344-353.
    9. Wieliczko, Barbara, 2016. "Fiscal impulses influencing the development of the Polish agriculture in the period 2007-2015," Rural Areas and Development, European Rural Development Network (ERDN), vol. 13, pages 1-14.
    10. José-Luis Alfaro-Navarro & María-Encarnación Andrés-Martínez, 2021. "A longitudinal and cross-sectional analysis of the distribution of Common Agricultural Policy aids in European countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(9), pages 351-362.

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    More about this item

    Keywords

    Common agricultural policy; Multiregional I–O model; Urban–rural relationships; Balanced territorial development;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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