IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v50y2019i6p803-817.html
   My bibliography  Save this article

Subsidies and agricultural productivity in the EU

Author

Listed:
  • Maria Garrone
  • Dorien Emmers
  • Hyejin Lee
  • Alessandro Olper
  • Johan Swinnen

Abstract

This paper investigates the relationship between EU agricultural subsidies and agricultural labor productivity growth by estimating a conditional convergence growth model. We use more representative subsidy indicators and a wider coverage (panel data from 213 EU regions over the period 2004–2014) than have been used before. We find that, on average, EU's Common Agricultural Policy (CAP) subsidies increase agricultural labor productivity growth, but this aggregate effect hides important heterogeneity of effects of different types of subsidies. The positive effect on productivity comes from decoupled subsidies, that is, Pillar I decoupled payments and some Pillar II payments. Coupled Pillar I subsidies have the opposite effect: they slow down productivity growth.

Suggested Citation

  • Maria Garrone & Dorien Emmers & Hyejin Lee & Alessandro Olper & Johan Swinnen, 2019. "Subsidies and agricultural productivity in the EU," Agricultural Economics, International Association of Agricultural Economists, vol. 50(6), pages 803-817, November.
    • Handle: RePEc:bla:agecon:v:50:y:2019:i:6:p:803-817
    DOI: 10.1111/agec.12526
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.12526
    Download Restriction: no
    File URL: https://libkey.io/10.1111/agec.12526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:50:y:2019:i:6:p:803-817. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.