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Empirical analysis on the development of policy objectives of the CAP

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  • Arovuori, Kyosti

Abstract

The objective of this study is to empirically analyze the effectiveness of the Common Agricultural Policy of the EU, given the general economic and structural conditions under which the policies operate. The effectiveness of policies is measured in terms of the impacts of the policies on the stated policy objectives. The results show that policy target variables have developed in the desired direction. However, agricultural policies have kept more resources in the agriculture sector compared to a situation without policies, which has reduced the pace of productivity growth in terms of labour use and had a negative indirect impact on farmers’ incomes. Agricultural policy reforms have led to less stabilized markets in terms of increased price volatility.

Suggested Citation

  • Arovuori, Kyosti, 2015. "Empirical analysis on the development of policy objectives of the CAP," 2015 Conference, August 9-14, 2015, Milan, Italy 210960, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:210960
    DOI: 10.22004/ag.econ.210960
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    2. Anderson,Kym (ed.), 2010. "The Political Economy of Agricultural Price Distortions," Cambridge Books, Cambridge University Press, number 9780521763233.
    3. Robert Ackrill & Adrian Kay & Wyn Morgan, 2008. "The Common Agricultural Policy and Its Reform: The Problem of Reconciling Budget and Trade Concerns," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 393-411, December.
    4. Olper, Alessandro & Raimondi, Valentina, 2008. "Consitutional Rules and Agricultural Policy Outcomes," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43870, European Association of Agricultural Economists.
    5. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.
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    Keywords

    Agricultural and Food Policy;

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