Journal
JOURNAL OF AGRICULTURAL ECONOMICS
Volume 64, Issue 1, Pages 133-144Publisher
WILEY
DOI: 10.1111/j.1477-9552.2012.00365.x
Keywords
Agricultural policy; CAP Pillar 1 and 2 subsidies; total factor productivity
Categories
Funding
- EU Commission [SSPE-CT-2005-006611]
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This article analyses the impact of common agricultural policy (CAP) subsidies on total factor productivity using a FADN dataset of French crop farms between 1996 and 2003. We first estimate a production function using a system GMM approach and then recover farm-level total factor productivity (TFP). Further, the impact of Pillar 1 and 2 subsidies on TFP is investigated and results show that several subsidies have a negative impact on productivity during the period covered in the dataset. CAP reforms have also had an impact on the relationship between subsidies and productivity.
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