Technical change and the Common Agricultural Policy

نویسندگان

چکیده

This paper adopts an alternative method for the analysis of CAP’s impact on farms’ productivity based a system equations derived from non-nested three-factors CES production function. With this method, we estimate elasticity substitution between labour, capital, and land in EU agricultural sector, magnitude direction technical change, CAP subsidies. The is estimated using GMM estimator farm-level panel dataset covering 117,179 farms all MS period 2004 to 2015. Our results suggest that land, capital are complementary factors characterised by slow decline or stagnation land-, labour-, capital-augmented change. Higher levels Pillar I II payments as percentage total income have negative no but higher nominal amounts decoupled subsidies, investment LFA subsidies positive impact. Moreover, larger share stronger

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ژورنال

عنوان ژورنال: Food Policy

سال: 2022

ISSN: ['0306-9192', '1873-5657']

DOI: https://doi.org/10.1016/j.foodpol.2022.102267