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

Rizov, Marian, Davidova, Sophia M. (2017) Employment effects of CAP payments in the UK non-farm economy. In: 91st conference of the UK Agricultural Economics Society, 24-26 Apr 2017, Dublin. (Unpublished) (KAR id:64285)

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Abstract

This paper investigates the effect of the CAP <p> payments on the indirectly generated non-farm jobs and whether there are differences in the effect according to business location - rural or urban - and according to CAP measures, in particular Pillar 1 and Pillar 2. A microeconomic approach is employed, based on company data from FAME dataset combined with detailed subsidies data from DEFRA. The focus is on employment in small and medium-sized enterprises (SMEs), which are central for job creation. The generalised method of moments (GMM) is used to estimate the effect of CAP payments on both the level and growth of employment. The results suggest positive net spillovers of CAP payments to non-farm employment. Although the magnitude of the effect is small, it is economically significant. Relative to Pillar 2, Pillar 1 payments have a stronger positive effect. As expected, the non-farm employment effect is particularly important for rural SMEs

Item Type: Conference or workshop item (Paper)
Uncontrolled keywords: CAP, non-farm employment, SMEs, spillovers, rural-urban
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Sophia Davidova
Date Deposited: 06 Nov 2017 14:19 UTC
Last Modified: 29 May 2019 19:46 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/64285 (The current URI for this page, for reference purposes)
Davidova, Sophia M.: https://orcid.org/0000-0001-8653-8191
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