The regional economic consequences of Less Favoured Area support: a spatial general equilibrium analysis of the Polish LFA program
On accession to the EU, Poland, one of the most agricultural countries in the region, became eligible for the Common Agricultural Policy (CAP), which it perceived as a chance to develop its rural economy. However, in constructing its 2007-2013 Rural Development Programme, Poland directed the largest funding share to Less Favoured Areas (LFA) -- a controversial measure accused of poor targeting and ineffectiveness. In this paper, we analyse the spatial economic consequences of LFA support for all 16 NUTS2 regions in Poland using a regional computable general equilibrium model called POLTERM. We show that LFA support did help to increase farmers' incomes, but harmed export-oriented sectors and hindered structural change in the Polish economy.
|Date of creation:||Nov 2010|
|Publication status:||Published in 'The consequences of LFA support: a multi-regional CGE analysis for Poland', Agricultural and Food Science, Vol. 22(2), 2013, pp. 272-287.|
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- Joaquim Bento de Souza Ferreira Filho & Carliton Vieira dos Santos & Sandra Maria do Prado Lima, 2007. "Tax Reform, Income Distribution and Poverty in Brazil: an Applied General Equilibrium Analysis," Working Papers MPIA 2007-26, PEP-MPIA.
- Dixon, Janine & Matthews, Alan, 2006. "Impact of the 2003 Mid-Term Review of the Common Agricultural Policy," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2006(1-Spring), pages 1-17.
- Catherine Costa & Michelle Osborne & Xiao-guang Zhang & Pierre Boulanger & Patrick Jomini, 2009. "Modelling the Effects of the EU Common Agricultural Policy," Staff Working Papers 0903, Productivity Commission, Government of Australia.
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