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An Experiment in Transnational Agricultural Policy: The CAP and "Convergence"

Author

Listed:
  • Loseby, Margaret
  • Pieraccini, Luciano

Abstract

This paper examines the evolution of national agricultural sectors m European Commumty (EC) member countries over the last decade of general econom1c turbulence. It assesses the degree of between-country "convergence" in trends in sectoral variables achieved under the influence of the EC's common agricultural pohcy (CAP). Principal components analysis 1s used to identify similarities and differences. S1milanties were particularly noticeable between certain subgroups of countries. Despite considerable divergences m rates of 1nflatton, an overall tendency towards convergence emerges for internal tenns of trade and for real incomes considered as real value added per agricultural labour unit. The patterns of convergence emerging from this study show a certain parallel with those found in studies of convergence conducted at macro level. The result 1s considered as a positive achievement for the CAP, which appears to have inserted the agncultural sector mto the process of economic mtegration foreseen by the founders of the European Community.

Suggested Citation

  • Loseby, Margaret & Pieraccini, Luciano, 1987. "An Experiment in Transnational Agricultural Policy: The CAP and "Convergence"," 1987 Occasional Paper Series No. 4 197392, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaaeo4:197392
    DOI: 10.22004/ag.econ.197392
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