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Employment effects of CAP payments in the UK non-farm economy

descriptionPublicationkeyboard_double_arrow_right Article , Part of book or chapter of book , Journal 17 Apr 2018 United Kingdom Publisher:Oxford University Press (OUP)Journal:European Review of Agricultural Economics, volume 45, pages 723-748 (issn: 0165-1587, eissn: 1464-3618,

Authors: Rizov, Marian; Davidova, Sophia; Bailey, Alastair;

doi: 10.1093/erae/jby008 , 10.1142/9781786347091_0009

Employment effects of CAP payments in the UK non-farm economy

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Abstract

This paper investigates the CAP payment effects on employment in the non-farm SMEs, which are central for job creation. It examines whether there are differences in the effect by business location, industry grouping, and CAP Pillars. A microeconomic approach is employed, based on firm data from FAME dataset combined with detailed subsidies information from DEFRA. System GMM is used to estimate the effect of CAP payments in both static and dynamic models of employment. Results suggest positive net spillovers of CAP payments to non-farm employment. Although the magnitude of the effect is small, it is economically significant.

Country

United Kingdom

Related Organizations

University of Kent
United Kingdom
University of Lincoln
United Kingdom

Keywords

rural–urban, 330, L112 Agricultural Economics, H25, 336, SMEs, system GMM, L110 Applied Economics, L110 - Applied economics, non-farm employment, L112 - Agricultural economics, Q18, rural-urban, R11, CAP, spillovers,, L140 - Econometrics, SMEs,, L140 Econometrics, spillovers, J20, D22, ddc: ddc:330

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