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The Regional Economic Consequences of Less Favoured Area Support: A Spatial General Equilibrium Analysis of the Polish LFA Program

Giesecke, James A ORCID: 0000-0002-7283-0551, Horridge, Jonathan ORCID: 0000-0002-1070-5763 and Zawalinska, K (2010) The Regional Economic Consequences of Less Favoured Area Support: A Spatial General Equilibrium Analysis of the Polish LFA Program. Working Paper. Centre of Policy Studies (CoPS).

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Abstract

On accession to the EU, Poland, one of the most agricultural countries in the region, became eligible for the Common Agricultural Policy (CAP), which it perceived as a chance to develop its rural economy. However, in constructing its 2007-2013 Rural Development Programme, Poland directed the largest funding share to Less Favoured Areas (LFA) -- a controversial measure accused of poor targeting and ineffectiveness. In this paper, we analyse the spatial economic consequences of LFA support for all 16 NUTS2 regions in Poland using a regional computable general equilibrium model called POLTERM. We show that LFA support did help to increase farmers' incomes, but harmed export-oriented sectors and hindered structural change in the Polish economy.

Item Type: Monograph (Working Paper)
ISBN: 9781921654183
Additional Information:

CoPS/IMPACT Working Paper Number G-211

Uncontrolled Keywords: C68; O18; O11; O21; Q18; Common Agricultural Policy Reform; Rural development; Less Favoured Areas; Spatial Computable General Equilibrium Model; Poland
Subjects: FOR Classification > 1402 Applied Economics
Faculty/School/Research Centre/Department > College of Business
Faculty/School/Research Centre/Department > Centre of Policy Studies (CoPS)
Depositing User: Symplectic Elements
Date Deposited: 06 Oct 2015 00:25
Last Modified: 15 Jul 2019 02:45
URI: http://vuir.vu.edu.au/id/eprint/29310
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