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Farm level impact of rural development policy: a conditional difference in difference matching approach

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  • Salvioni, Cristina
  • Sciulli, Dario

Abstract

We use a conditional difference-in-difference matching estimator and a 2003-2007 balanced panel drawn from the FADN Italian sample to evaluate the impact at the farm level of the implementation of the first Italian Rural Development Programme (RDP). We find that, in average, farms receiving at least a RDP payment increased family labor, while they did not increase total labour employed on farm. In addition, they experienced an increase in labor profitability and added value, even though the estimate significance varies accordingly to the matching method used. Our findings, suggest that the implementation of the first RDP produced a positive direct impact on rural GDP, while it did not prove to be effective in terms of rural employment growth.

Suggested Citation

  • Salvioni, Cristina & Sciulli, Dario, 2011. "Farm level impact of rural development policy: a conditional difference in difference matching approach," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99421, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa122:99421
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    File URL: http://purl.umn.edu/99421
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    Cited by:

    1. Jerzy Michalek & Pavel Ciaian & D'Artis Kancs, 2016. "Investment Crowding Out: Firm-Level Evidence from Northern Germany," Regional Studies, Taylor & Francis Journals, vol. 50(9), pages 1579-1594, September.

    More about this item

    Keywords

    Common Agricultural Policy; Rural Development Policy; conditional diff-in-diff matching; Agricultural and Food Policy; Q12; Q18; C14;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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