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The Spatial Patterns of Dairy Farming In Molise

Author

Listed:
  • Ievoli Corrado
  • Belliggiano Angelo

    (Dipartimento Agricoltura Ambiente Alimenti, Università del Molise, via de Sanctis III Polifunzionale, 86100 Campobasso, Italia)

  • Basile Roberto Giovanni

    (Dipartimento di Economia, Università degli studi della Campania “Luigi Vanvitelli”, Corso Gran Priorato di Malta 1, 81043, Capua, Italia)

Abstract

The greater market orientation of European dairy production, caused by the end of quota regime, is likely to have consequences on less favoured areas, where breeding of dairy cattle plays both a crucial socio-economic and environmental role. Within this new framework, endogenous factors determining spatial reorganisation of the sector are becoming of increasing relevance. Based on these considerations, this study analyses the impact of the three broader classes of location determinants suggested by economic theory - factor endowment, market potential, and spatial agglomeration externalities - on the spatial pattern of milk production in Molise, a rural region in the south of Italy. Milk production is measured in term of dairy cows per hectare. The truncated distribution of this variable and its high degree of spatial autocorrelation prompted us to apply a Spatial Autoregressive Tobit model. Estimation results reveal that all three categories have a positive effect on the location of milk production, even if the influence of factor endowment (intended as forage area), and market potential (measured in term of proximity of dairy companies) is quite limited. On the contrary, the impact of spatial externalities (related variety) on the regional localisation of milk production is strongly significant. These results cast some doubts on the current measures of intervention and might suggest a new policy framework both at firm and spatial level

Suggested Citation

  • Ievoli Corrado & Belliggiano Angelo & Basile Roberto Giovanni, 2017. "The Spatial Patterns of Dairy Farming In Molise," European Countryside, Sciendo, vol. 9(4), pages 729-745, December.
    • Handle: RePEc:vrs:eurcou:v:9:y:2017:i:4:p:729-745:n:6
    DOI: 10.1515/euco-2017-0041
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    Cited by:

    1. Corrado Ievoli & Angelo Belliggiano & Danilo Marandola & Giuseppe Pistacchio & Luca Romagnoli, 2019. "Network Contracts in the Italian agri-food industry: Determinants and spatial patterns," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(2), pages 275-306.
    2. Ievoli Corrado & Belliggiano Angelo & Marandola Danilo & Milone Pierluigi & Ventura Flaminia, 2019. "Information and Communication Infrastructures and New Business Models in Rural Areas: The Case of Molise Region in Italy," European Countryside, Sciendo, vol. 11(4), pages 475-496, December.
    3. Danilo Marandola & Angelo Belliggiano & Luca Romagnoli & Corrado Ievoli, 2019. "The spread of no-till in conservation agriculture systems in Italy: indications for rural development policy-making," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-22, December.
    4. Belliggiano Angelo & Sturla Alberto & Vassallo Marco & Viganò Laura, 2020. "Neo-Endogenous Rural Development in Favor of Organic Farming: Two Case Studies from Italian Fragile Areas," European Countryside, Sciendo, vol. 12(1), pages 1-29, March.
    5. Angelo Belliggiano & Eugenio Cejudo Garcia & Marilena Labianca & Francisco Navarro Valverde & Stefano De Rubertis, 2020. "The “Eco-Effectiveness” of Agritourism Dynamics in Italy and Spain: A Tool for Evaluating Regional Sustainability," Sustainability, MDPI, vol. 12(17), pages 1-25, August.

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