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Analysis of impact of rural development subsides on cropping specialization in Bulgaria and Romania using FADN data

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  • GALLUZZO, NICOLA

Abstract

Bulgaria and Romania are characterized by a higher percentage incidence of rural population than other European nations and a significant diffusion of less favoured areas with limited agricultural surfaces as well. The objective of this paper was to investigate, via a quantitative approach, effects and relationships among funds allocated by the second pillar of the Common Agricultural Policy on cropping specialization. Furthermore, subsidies and other financial supports assigned by specific agricultural and rural policies have had a positive role in areas at risk of marginalization and characterized by out migration issues. In the quantitative analysis we used the data published by the European Union in the Farm Accountancy Data Network (FADN) since 2007 to 2012. In Bulgaria, as a consequence of a greater diffusion of large size farms, the financial subsides allocated by the EU, throughout Single Area Payment Scheme and towards crops have been significant in Romania and Bulgaria. Romania has pointed out a positive impact of financial aids paid to less favoured areas in order to reduce the rural marginalization and countryside depopulation.

Suggested Citation

  • Galluzzo, Nicola, 2015. "Analysis of impact of rural development subsides on cropping specialization in Bulgaria and Romania using FADN data," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212659, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa150:212659
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    File URL: http://ageconsearch.umn.edu/record/212659/files/Analysis%20of%20impact%20of%20rural%20development%20subsides%20on%20cropping%20specialization%20in%20Bulgaria%20and%20Romania%20using%20FADN%20data.pdf
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    References listed on IDEAS

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    1. Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 305-329, August.
    2. Cionga, Cristina & Luca, Lucian & Hubbard, Carmen, 2008. "The Impacts Of Direct Payments On Romanian Farm Income: Who Benefits From The Cap?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44840, European Association of Agricultural Economists.
    3. Thomas Dax, 2001. "The quest for countryside support schemes for mountain areas in Central and Eastern European Countries (CEECs)," ERSA conference papers ersa01p257, European Regional Science Association.
    4. Velazquez, Beatriz E., 2008. "The Single Payment Scheme In The Impact Assessment Of The Cap "Heath Check"," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44784, European Association of Agricultural Economists.
    5. Xueqin Zhu & Alfons Oude Lansink, 2010. "Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 545-564.
    6. Mary Keeney, 2000. "The Distributional Impact of Direct Payments on Irish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 252-265.
    7. Zahrnt, Valentin, 2009. "Public Money for Public Goods: Winners and Losers from CAP Reform," ECIPE Working Papers 51300, European Centre for International Political Economy (ECIPE).
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    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development;

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