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Targeting Lagging Territories With Eu Rural Support Policy: Case Study In Latvia

Author

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  • Balamou, Eudokia
  • Saktina, Daina
  • Meyers, William H.

Abstract

The paper uses a bi-regional CGE model to assess the potential impacts of an alternative rural development policy design, which is more targeted to public sector investments on the economic activity of a lagging region in Latvia. The results show the distribution of effects between the rural and urban areas within the region as well as differences in the impacts between the three policy scenarios that are explored. All scenarios generate positive effects in the economy. However, the “Investment in Public Sector with enhanced envelope” scenario is the one that leads to the largest impacts in the economy. The “Investment in Public Sector with no envelope” is the second best scenario and has better effects compared to the Scenario that has enhanced financial envelope but with no reallocation. Overall, the results suggest that it’s not only enhanced funding that will improve economic performance in an economy but also the targeting of these funds to the more productive sectors of the economy that have the highest linkages within the economy and consequently the potential to create strong direct and indirect effects spread to the regional economy.

Suggested Citation

  • Balamou, Eudokia & Saktina, Daina & Meyers, William H., 2009. "Targeting Lagging Territories With Eu Rural Support Policy: Case Study In Latvia," 113th Seminar, December 9-11, 2009, Belgrade, Serbia 57338, European Association of Agricultural Economists.
    • Handle: RePEc:ags:ea113a:57338
    DOI: 10.22004/ag.econ.57338
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    Cited by:

    1. Lampiris, Georgios & Karelakis, Christos & Loizou, Efstratios, 2018. "Evaluation of the impacts of CAP policy measures on a local economy: The case of a Greek region," Land Use Policy, Elsevier, vol. 77(C), pages 745-751.
    2. Zuzana Bednaříková, 2015. "Evaluation of the Impacts of Rural Development Policy Measures on the Local Economy in the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(4), pages 416-433.

    More about this item

    Keywords

    Agribusiness; Environmental Economics and Policy; Land Economics/Use;
    All these keywords.

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