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How does space affect the allocation of the EU Rural Development Policy expenditure? A spatial econometric assessment

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  • Beatrice Camaioni
  • Roberto Esposti
  • Francesco Pagliacci
  • Franco Sotte

Abstract

This article focuses on the main drivers of the distribution of the Rural Development Policy expenditure throughout the European Union (EU). Ex-post funds distribution across EU NUTS3 regions is considered. Three effects are considered as major drivers: a ‘country effect’; a ‘rural effect’ (i.e. the more rural a region the larger the amount of support); a ‘pure spatial effect’ (i.e. the influence of bordering regions and of their degree of rurality). These effects are estimated adopting alternative spatial model specifications: Spatial Durbin Model, Spatial Error Model, Spatial AutoRegressive Model and Spatial Lag of X Model. Results slightly differ across alternative specifications and definitions of rurality, but prevalent evidence suggests that rurality matters in a counterintuitive direction while also spatial spillovers play a role.

Suggested Citation

  • Beatrice Camaioni & Roberto Esposti & Francesco Pagliacci & Franco Sotte, 2016. "How does space affect the allocation of the EU Rural Development Policy expenditure? A spatial econometric assessment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(3), pages 433-473.
    • Handle: RePEc:oup:erevae:v:43:y:2016:i:3:p:433-473.
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    File URL: http://hdl.handle.net/10.1093/erae/jbv024
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    Cited by:

    1. Lulu Zhou & Li Wang & Kangchuan Su & Guohua Bi & Hongji Chen & Xiaoyu Liu & Qingyuan Yang, 2022. "Spatiotemporal Characteristics of Rural Restructuring Evolution and Driving Forces in Mountainous and Hilly Areas," Land, MDPI, vol. 11(6), pages 1-24, June.
    2. De Toni, Andrea & Vizzarri, Matteo & Di Febbraro, Mirko & Lasserre, Bruno & Noguera, Joan & Di Martino, Paolo, 2021. "Aligning Inner Peripheries with rural development in Italy: Territorial evidence to support policy contextualization," Land Use Policy, Elsevier, vol. 100(C).
    3. Mercedes Rodríguez & José Antonio Camacho, 2023. "The importance of agriculture and rural areas for the future in the European Union: An exploration of public opinion," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(10), pages 394-403.
    4. Vigani, Mauro & Khafagy, Amr & Berry, Robert, 2024. "Public spending for agricultural risk management: Land use, regional welfare and intra-subsidy substitution," Food Policy, Elsevier, vol. 123(C).
    5. Edoardo Baldoni & Roberto Esposti, 2018. "Agricultural Productivity in Space - An econometric assessment on Italian farm-level data," Working Papers 428, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. Colonico, Mario & Tomao, Antonio & Ascoli, Davide & Corona, Piermaria & Giannino, Francesco & Moris, Jose V. & Romano, Raoul & Salvati, Luca & Barbati, Anna, 2022. "Rural development funding and wildfire prevention: Evidences of spatial mismatches with fire activity," Land Use Policy, Elsevier, vol. 117(C).
    7. Bernini, Cristina & Galli, Federica, 2024. "Economic and Environmental Efficiency, Subsidies and Spatio-Temporal Effects in Agriculture," Ecological Economics, Elsevier, vol. 218(C).
    8. Elena Calegari & Enrico Fabrizi & Gianni Guastella & Francesco Timpano, 2021. "EU regional convergence in the agricultural sector: Are there synergies between agricultural and regional policies?," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 23-50, February.
    9. Edoardo Baldoni & Roberto Esposti, 2021. "Agricultural Productivity in Space: an Econometric Assessment Based on Farm‐Level Data," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1525-1544, August.
    10. Mercedes Rodríguez & José Antonio Camacho, . "The importance of agriculture and rural areas for the future in the European Union: An exploration of public opinion," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 0.
    11. A. Bonfiglio & B. Camaioni & S. Coderoni & R. Esposti & F. Pagliacci & F. Sotte, 2016. "Where does EU money eventually go? The distribution of CAP expenditure across the European space," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(4), pages 693-727, November.

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