Journal
APPLIED ECONOMIC PERSPECTIVES AND POLICY
Volume 45, Issue 2, Pages 1134-1153Publisher
WILEY
DOI: 10.1002/aepp.13249
Keywords
agricultural policy; CAP; EU enlargement; political economy; synthetic control method
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This article investigates the impact of European Union enlargements on the agricultural policy of incoming countries, and finds that the effect differs across different enlargements. Early enlargements led to an increase in agricultural assistance, while later enlargements resulted in a decrease in assistance levels.
This article exploits the sequences of the European Union (EU) enlargements to investigate their impact on the incoming countries' agricultural policy. We use a quasi-experimental approach-the Synthetic Control method-to identify changes in the level of agricultural protection of the new members, in comparison with a counterfactual scenario. Our results suggest that earlier 1973 and 1985 EU enlargements show a significant increase in the rate of assistance to agriculture of incoming countries. The opposite holds, however, for the 1995 and 2004 enlargements, where the incomers significantly reduced their level of assistance to agriculture, in comparison with a counterfactual scenario.
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