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Geographical Indications: a first assessment of the impact on rural development in Italian NUTS3 regions

Author

Listed:
  • Lorenzo Cei
  • Gianluca Stefani
  • Edi Defrancesco
  • Ginevra Virginia Lombardi

    (Dipartimento di Scienze per l'Economia e l'Impresa)

Abstract

Geographical indications (GIs) are a 25 years old European policy instrument which have, among its objectives, to foster rural development. In this respect, very few studies quantitatively investigate to what extent this policy is effective. Literature is in fact mainly focused on specific GIs, studied through case studies, trying to identify which factors are responsible for the success or failure of specific initiatives. The aim of the present study is instead to quantify the impact of such policy instrument on a single indicator of rural development: agricultural value added. In order to assess the impact we firstly built an index measuring the number of GI schemes implemented at NUTS3 level in the Italian regions. Then, following a difference-in-difference evaluation strategy and relying on an explicit theoretical model, a fixed effect estimator was implemented. The choice of the model, as well as the variables to be considered, is specified using a directed acyclic graph. Results show that an overall positive effect of GI protection on agricultural value added could be identified in Italy, thus providing evidence of a positive impact of the European policy on rural development.

Suggested Citation

  • Lorenzo Cei & Gianluca Stefani & Edi Defrancesco & Ginevra Virginia Lombardi, 2017. "Geographical Indications: a first assessment of the impact on rural development in Italian NUTS3 regions," Working Papers - Economics wp2017_14.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  • Handle: RePEc:frz:wpaper:wp2017_14.rdf
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    Citations

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    Cited by:

    1. Leonardo Cei & Edi Defrancesco & Gianluca Stefani, 2018. "From Geographical Indications to Rural Development: A Review of the Economic Effects of European Union Policy," Sustainability, MDPI, Open Access Journal, vol. 10(10), pages 1-21, October.
    2. Áron Török & Lili Jantyik & Zalán Márk Maró & Hazel V. J. Moir, 2020. "Understanding the Real-World Impact of Geographical Indications: A Critical Review of the Empirical Economic Literature," Sustainability, MDPI, Open Access Journal, vol. 12(22), pages 1-24, November.
    3. Cei, Leonardo & Stefani, Gianluca & Defrancesco, Edi, 2020. "The role of group-time treatment effect heterogeneity in long standing European agricultural policies. An application to the European geographical indication policy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(1), April.
    4. Giang Hoang & Ha Thu Thi Le & Anh Hoang Nguyen & Quyen Mai Thi Dao, 2020. "The Impact of Geographical Indications on Sustainable Rural Development: A Case Study of the Vietnamese Cao Phong Orange," Sustainability, MDPI, Open Access Journal, vol. 12(11), pages 1-13, June.

    More about this item

    Keywords

    geographical indication; impact evaluation; rural development;
    All these keywords.

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