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An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece

Author

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  • Alexandros Gkatsikos

    (Department of Agricultural Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Dimitrios Natos

    (Department of Agricultural Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Christos Staboulis

    (Department of Agricultural Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Konstadinos Mattas

    (Department of Agricultural Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Michail Tsagris

    (Department of Economics, University of Crete, 74100 Rethymno, Greece)

  • Apostolos Polymeros

    (Ministry of Rural Development and Food of Greece, 11143 Athens, Greece)

Abstract

Generation renewal in farming is an urgent matter for European policy institutions that strive to maintain social cohesion and improve economic development in rural areas. Aids to young Europeans to enter the agricultural business sector have been available since 2000 to counter the negative effect of an aging rural population. This study examines for the first time the impact of the Pillar II policy measure for generation renewal on regional economic growth. The well-established input–output method was selected to estimate the income and employment effects of the policy measure, and it served as a concrete impact analysis tool. Within the AGRICORE project study for the Young Farmers Scheme in Greece, two input–output models were constructed for Thessaly and Central Macedonia, the two most agriculturally oriented regions (NUTS-2 level), to estimate multipliers and elasticities for an ex-post impact analysis of the payments of Measure 6.1 "Start-Up Aid for Young Farmers" for the CAP 2014–2020 period. Results indicate that regional output and employment are significantly benefited from the generation renewal policies while income generation is positive but at a lesser extent. Furthermore, indirect jobs created in rural areas equal to 20% of the direct employment expressed as the number of new entrants. Consequently, the Measure proves to stimulate regional output, refresh the agricultural population and enhance rural employment, and it can be a useful tool for policy makers to support rural welfare and maintain social and economic cohesion.

Suggested Citation

  • Alexandros Gkatsikos & Dimitrios Natos & Christos Staboulis & Konstadinos Mattas & Michail Tsagris & Apostolos Polymeros, 2022. "An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece," Sustainability, MDPI, vol. 14(5), pages 1-12, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2882-:d:762141
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    References listed on IDEAS

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    2. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.
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    9. Alexandros Gkatsikos & Konstadinos Mattas, 2021. "The Paradox of the Virtual Water Trade Balance in the Mediterranean Region," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
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    3. Stavros Kalogiannidis & Christina-Ioanna Papadopoulou & Efstratios Loizou & Fotios Chatzitheodoridis, 2023. "Risk, Vulnerability, and Resilience in Agriculture and Their Impact on Sustainable Rural Economy Development: A Case Study of Greece," Agriculture, MDPI, vol. 13(6), pages 1-20, June.
    4. Anna Carbone & Felicetta Carillo & Pavel Ciaian & Roberta Sardone & Federico Antonioli & Juan Tur Cardona, 2024. "Does the European Union Start-Up Aid Help Young Farmers to Innovate and to Join Networks?," Agriculture, MDPI, vol. 14(10), pages 1-23, October.
    5. Áron József Borda & Balázs Sárvári & Jeremiás Máté Balogh, 2023. "Generation Change in Agriculture: A Systematic Review of the Literature," Economies, MDPI, vol. 11(5), pages 1-15, April.

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