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Analysis of impact of rural development subsides on cropping specialization in Bulgaria and Romania using FADN data

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  • GALLUZZO, NICOLA

Abstract

Bulgaria and Romania are characterized by a higher percentage incidence of rural population than other European nations and a significant diffusion of less favoured areas with limited agricultural surfaces as well. The objective of this paper was to investigate, via a quantitative approach, effects and relationships among funds allocated by the second pillar of the Common Agricultural Policy on cropping specialization. Furthermore, subsidies and other financial supports assigned by specific agricultural and rural policies have had a positive role in areas at risk of marginalization and characterized by out migration issues. In the quantitative analysis we used the data published by the European Union in the Farm Accountancy Data Network (FADN) since 2007 to 2012. In Bulgaria, as a consequence of a greater diffusion of large size farms, the financial subsides allocated by the EU, throughout Single Area Payment Scheme and towards crops have been significant in Romania and Bulgaria. Romania has pointed out a positive impact of financial aids paid to less favoured areas in order to reduce the rural marginalization and countryside depopulation.

Suggested Citation

  • Galluzzo, Nicola, 2015. "Analysis of impact of rural development subsides on cropping specialization in Bulgaria and Romania using FADN data," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212659, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa150:212659
    DOI: 10.22004/ag.econ.212659
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    References listed on IDEAS

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    7. Schmid, Erwin & Hofreither, Markus F. & Sinabell, Franz, 2006. "Impacts of CAP Instruments on the Distribution of Farm Incomes - Results for Austria," Discussion Papers DP-13-2006, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    8. von Witzke, Harald & Noleppa, Steffen, 2007. "Agricultural and Trade Policy Reform and Inequality: The Distributive Effects of Direct Payments to German Farmers under the EU's New Common Agricultural Policy," Working Paper Series 10289, Humboldt University Berlin, Department of Agricultural Economics.
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    1. Economic Research Institute at BAS (ed.), 2020. "Economic Development and Policies – Realities and Prospects," ERI-BAS Books, Bulgarian Academy of Sciences - Economic Research Institute, number 36:p:1-884.
    2. Nicola Galluzzo, 2017. "Impact of CAP Financial Subsidies on Rural Development and Emigration in Bulgarian Rural Areas," International Conference on Competitiveness of Agro-food and Environmental Economy Proceedings, The Bucharest University of Economic Studies, vol. 6, pages 50-61.

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    Agricultural and Food Policy; Community/Rural/Urban Development;

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