Decoupled Payments and the Localization of Activities /доклад на 10 конгрессе ЕААЕ, Exploring Diversity in the European Agri-Food System, Zaragoza, Spain, 28-31 August 2002
Опубликовано на портале: 28-11-2003
2002
Тематический раздел:
This article considers the impacts of (de)coupled farm sector support on the locations
of
farming and agro-industrial activity. An economic geography model is developed which
has
two types of regions, one with extensive agricultural production (rural), the other
with
intensive farming that is more densely populated (urban). The farm and agro-industrial
sectors are vertically linked. A service sector that is not directly linked to either
basic
industry is also explicit. We show that coupled and decoupled subsidies affect the
spatial
distribution of farming, industry, and service sector activity. Support that is provided
to all
farmers regardless of crop, thus semi-decoupled, increases spatial agglomeration.
Support
targeted to farmers of particular crops, especially rural comparative advantage crops,
favors
increased farming in rural areas but spatial agglomeration of non-farm activity still
occurs.
This latter targeting approach is used in the European Union.
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