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© 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.

Abstract

This study presents an innovative approach to measuring the impact of EU CAP direct payments on the economic resilience of agriculture at a sectoral level. The construct of resilience is approached from the perspective of the resilience of the main functions of the sector. The overall level of direct payments impact on sectoral economic resilience is seen as a weighted sum of the payments’ impact on the resilience of the main economic functions of the sector. Such an approach, allowing for a comprehensive estimate of subsidy impact on the most essential areas of agriculture, is universal and can be adapted to measure economic resilience of other economic sectors. For the empirical application we used panel data from 27 EU countries over the period 2005–2019. The results revealed that the overall impact of direct payments on the economic resilience of agriculture across EU-27 was positive. However, the influence of the payments on different key functions of the sector diverged. The most evident and alarming negative changes in the economic resilience levels were observed in terms of efficiency of farms. Negative impact on separate indicators may pose a risk that the influence of direct payments on economic resilience of agriculture may not be sustainable in the longer run.

Details

Title
CAP Direct Payments and Economic Resilience of Agriculture: Impact Assessment
Author
Žičkienė, Agnė; Melnikienė, Rasa; Morkūnas, Mangirdas; Volkov, Artiom  VIAFID ORCID Logo 
First page
10546
Publication year
2022
Publication date
2022
Publisher
MDPI AG
e-ISSN
20711050
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2711473543
Copyright
© 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.