Modelling the rural-urban effects of a reduction in farm support: A bi-regional CGE analysis

Eudokia Balamou, Konstantinos Pouliakas, Deborah Roberts, Demetrios Psaltopoulos

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    The paper contrasts the rural-urban effects of a reduction in CAP support in two remote regions of the EU: The East Highlands (Scotland) and Archanes-Heraklion (Greece). Analysis is based on bi-regional CGE models calibrated using Social Accounting Matrices (SAMs) for the study areas. The models are adapted to show the range of linkages that exist between farm households and the regional economy and how these spread across rural–urban boundaries. Findings suggest that a reduction of coupled farm support will lead to a (small) net negative impact on both region’s real GDP but there are qualitative differences in the spatial distribution of effects in both regions. They also suggest that coupled support may be constraining economic activity within some rural and urban sectors. Based on the results, it is argued that there is a case for region-specific targeted compensation to alleviate the negative effects of CAP reform while nurturing the positive effects of a move towards a less distorting policy environment.
    Original languageEnglish
    Title of host publicationAES Annual Conference proceedings
    Pages1-18
    Number of pages18
    Publication statusPublished - Jan 2009
    Event83rd Annual Conference of the Agricultural Economics Society - Dublin, Ireland
    Duration: 30 Mar 20092 Apr 2009

    Conference

    Conference83rd Annual Conference of the Agricultural Economics Society
    CountryIreland
    CityDublin
    Period30/03/092/04/09

    Keywords

    • CGE
    • linkages
    • farm support
    • rural-urban

    Fingerprint Dive into the research topics of 'Modelling the rural-urban effects of a reduction in farm support: A bi-regional CGE analysis'. Together they form a unique fingerprint.

  • Cite this

    Balamou, E., Pouliakas, K., Roberts, D., & Psaltopoulos, D. (2009). Modelling the rural-urban effects of a reduction in farm support: A bi-regional CGE analysis. In AES Annual Conference proceedings (pp. 1-18)