scholarly journals Modelling the Common Agricultural Policy Impact over the EU Agricultural and Rural Environment through a Machine Learning Predictive Framework

Agronomy ◽  
2021 ◽  
Vol 11 (11) ◽  
pp. 2105
Author(s):  
Dragos Sebastian Cristea ◽  
Sarina Rosenberg ◽  
Adriana Pustianu Mocanu ◽  
Ira Adeline Simionov ◽  
Alina Antache Mogodan ◽  
...  

This research provides an analytical and predictive framework, based on state-of-the-art machine-learning (ML) algorithms (random forest (RF) and generalized additive models (GAM)), that can be used to assess and improve the Common Agricultural Policy (CAP) impact/performance over the agricultural and rural environments, easing the identification of proper instruments that can be used by EU policy makers in CAP’s financial management. The applied methodology consists of elaborating a custom-developed analytical framework based on a dataset containing 22 relevant indicators, considering four main dimensions that describe the intricacies of the EU agricultural and rural environment, in the CAP context: rural, emissions, macroeconomic, and financial. The results highlight that an increase of the agricultural research and development funding, as well as the agriculture employment rate, negatively influence the degree of rural poverty. The rural GDP per capita is influenced by the size of the employment rate in agriculture. It seems that environmental sustainability, identified by both fertilizers used and emissions from agriculture parameters, significantly influences the GDP per capita. In predicting emissions in agriculture, the direct payment, degree of rural poverty, fertilizer use, employment in agriculture, and agriculture labor productivity are the main independent parameters with the highest future importance. It was found that when predicting direct payments, the rural employment rate, employment in agriculture, and gross value added must be considered the most. The agricultural, entrepreneurial income prediction is mainly influenced by the total factor productivity, while agricultural research and development investments depend on gross value added, direct payments, and gross value added in the agricultural sector. Future research, related to prediction models based on CAP indicators, should also consider the marketing dimension. It is recommended for direct payments to be used to invest in upgrading the fertilizers technologies, since environmental sustainability will influence economic growth.

2018 ◽  
Vol 18(33) (2) ◽  
pp. 105-116
Author(s):  
Joanna Jaroszewska ◽  
Włodzimierz Rembisz

The differences of the level of labour productivity in EU countries puts at a disadvantage countries adopted into the EU after 2004 (EU-13). A derived analytical approach to this problem has been illustrated empirically. The labour productivity analysed is presented as gross value added per person employed. The Economic Accounts for Agriculture and the Agricultural Labour Input were used for the study. The research shows that the large differences of labour productivity between groups of countries is still maintained. However, it is gradually decreasing. A negative impact of direct payments on this process was also found.


2015 ◽  
Vol 10 (3) ◽  
pp. 191-207
Author(s):  
Walentyna Kwiatkowska

The role of the service sector in the economy is increasing in the process of socio-economic development. This tendency has been confirmed and explained by the three-sector theory formulated by A.G.B. Fisher, C. Clark, and J. Fourastie. The main goal of the paper is to show development tendencies in service sectors in Poland and the EU countries and assess them in view of the three-sector theory. The share of the service sector in the total employment and in the total gross value added in the years 2005-2013/2014 will be analysed together with two sub-sectors including market and non-market services. The research shows that the share of the service sector in total employment and total gross value added has been recently increasing in Poland as well as in other EU countries, but there is a gap in this process between Poland and the most developed EU countries. Moreover, in Poland, the role of market services has been recently increasing much faster than the role of non-market services. 


IG ◽  
2019 ◽  
Vol 42 (2) ◽  
pp. 118-133
Author(s):  
Daniel Schade

The Interparliamentary Conference for the Common Foreign and Security Policy and the Common Security and Defence Policy (IPC) is a new parliamentary body set up after the Treaty of Lisbon which allows to create interlinkages between parliaments in the European Union (EU). It is part of an ongoing process which aims to challenge the executive dominance in EU policy-making in general and in the EU’s foreign and security policy in particular. Considering its sessions and the experiences of members of parliaments partaking in the Interparliamentary Conference to date, this article analyses its value-added to this overarching goal. The experiences so far suggest that the IPC faces significant practical challenges in contributing to the parliamentary scrutiny of the policy areas concerned despite the fact that the format of interparliamentary gatherings is a significant innovation in its own right. These challenges arise primarily out of a conflict between the European Parliament and national parliaments in the EU, the diversity of national parliamentarism, as well as the differing moti⁠v­a⁠tions and skills of the participating members of parliaments.


2020 ◽  
Vol 60 (2) ◽  
pp. 7-20
Author(s):  
Katarzyna Kocur-Bera

Instruments promoting rural development have been implemented by many countries. Areabased payments for farmers allocated under the Common Agricultural Policy constitute one of such instruments in the European Union. The support system for rural areas, including the size of the declared reference parcels, is monitored as part of the cross-compliance mechanism. Parcels with unfavorable landuse patterns are more difficult to farm. According to estimates, more than 30% of agricultural farms in Poland fall into this category. This study proposes a universal algorithm for controlling the information submitted by farmers in payment applications. More than 76,000 applications were analyzed, and farms with the defective spatial structure of land were randomly selected. The results show that most errors occur in the case of land parcels situated the farthest from a farm holding (declared in the application), but the analysis revealed no strong correlation in this respect.


2012 ◽  
Vol 11 (2) ◽  
pp. 83 ◽  
Author(s):  
María Blanco Fonseca ◽  
Sol García-Germán Trujeda ◽  
Isabel Bardají

<p>Following their introduction in 1992,direct payments have become one of the main instruments of the Common Agricultural Policy. The aim of this study is to analyse potential scenarios of harmonization of direct payments in the CAP post-2013. In doing so, we use the CAPRI model, which represents the functioning of agricultural markets at the global level and simultaneously models CAP measures at the EU regional level. Results suggest that while a flatter rate of direct payments would have minor impacts on agriculture at the EU level, it would imply substantial redistributive effects, both across regions and Member States.</p>


2020 ◽  
Vol 80 (4) ◽  
pp. 529-547 ◽  
Author(s):  
Emmanuel Mamatzakis ◽  
Christos Staikouras

PurposeCommon Agriculture Police in the EU, direct payments, solvency and incomeDesign/methodology/approachWe employ agriculture data for all twenty-eight EU Member States. The data comes from the public Farm Accountancy Data Network (FADN) of the EU. In terms of methodology we employ panel regression and panel Vector Autoregression analysis (panel VAR) to take into account possible endogeneity issues.FindingsThe reported panel regressions, impulse response functions (IRFs) and variance decompositions (VDCs) show that agriculture income has been subdued due to negative shocks in direct payments and solvency. Our results do not support the hypothesis that higher direct payments would increase agriculture income. In addition, whilst solvency subdues agriculture income, investment asserts a positive impact on agriculture income.Research limitations/implicationsFurther research on the impact of direct payments of CAP on EU agriculture is warranted at a disaggregate level so as to examine whether there is variability in the underlying interlinkages at regional levelPractical implicationsAs a policy implication, and in light of the ongoing reform of the EU's CAP, we would propose to raise net value added in agriculture using targeted income support to small and medium-sized farms. The European Economic Recovery Plan (EERP) would be also supportive. In addition, further enhancing financial integration across the EU would provide funds for investment in agriculture.Social implicationsAs social implication, one would propose to raise investment in agriculture, that is through the European Economic Recovery Plan (EERP). The EERP is designed as a stimulus package set up to mitigate the consequences of the global financial crisis in the EU. Also, a way to boost agriculture income is through the credit channel of the on-going quantitative easing of the ECB, where unconventional monetary policy is aiming to support the growth prospect of the Euro area.Originality/valueThis study examines the impact of direct payments, which include all subsidies, of the EU's Common Agriculture Policy (CAP) on agriculture income as measured by the net value added. We also control for solvency. Despite the magnitude of CAP on the EU budget, few studies investigate the impact of direct payments on income in the aftermath of the financial crisis. This is surprising given the importance of agriculture for the economic recovery of the EU that remains anaemic more than a decade after the crisis.


2019 ◽  
Vol 65 (No. 4) ◽  
pp. 185-193
Author(s):  
J. Sándor Zsarnóczai ◽  
Zoltán Zéman

The study analyses the correlations among different economies of selected EU-12 member states based on comparison of agricultural economics variances, namely the output value of the agricultural industry, productivity of input, agricultural gross value added, subsidies on production, agricultural labour input and agricultural income per annual working unit in the period of 2010–2016, based on the Special Program for Social Sciences, as statistical methods. The EU-12 achieved a higher increase in productivity of input, output value of agricultural industry, agricultural gross valued added, as well as agricultural income per agricultural annual working unit compared to the average results of EU-28 for 2010–2016. The output value of agricultural industry and agricultural gross value added per intermediate consumption decreased by 1.35% and by 3.3%, but the factor income – net value added at factor cost – per annual working unit increased by 21%, because of the subsidies on production increased by 3.4% for 2010–2016. In EU-28, the factor income per annual working unit increased, but most of this income was for developing agricultural production technology.


Author(s):  
Piotr Bórawski ◽  
Mariola Grzybowska-Brzezińska ◽  
James William Dunn

The objective of the paper was to recognize the efficiency of Polish agriculture. We have studied data from Main Statistical Office (MSO) and compared the efficiency in the years 2000–2010. The data proved that the efficiency of Polish agriculture improved in the analyzed period. To measure the impact of macroeconomic variables we introduced these into the regression model. The macroeconomic factors included: X1 (nominal prices of land), X2 (land prices expressed in dt), X3 (inflation), X4 (investment in agriculture and hunting), X5 (balance of trade) and X6 (GDP). We wanted to recognize the impact of macroeconomic factors on: Y1 (gross output), Y2 (intermediate consumption), Y3 (gross value added). Multiple regression was used to measure the impact of macroeconomic factors on global production of agriculture. The strongest impact on gross value added had: X4 (investment in agriculture and horticulture) and X4 (trade balance). Poland is a member of European Union and the Common Agricultural Policy has improved the situation in agriculture. There are about 2 100 000 farms in Poland but only 300 000–400 000 are producing for the market. Other farms have social functions and are place for work for rural inhabitants.


2020 ◽  
Vol 2020 (3) ◽  
pp. 97-125
Author(s):  
Ksenia Skorik ◽  

The issue of industrial policy and industrial problems is one of the most controversial in the European academic community. Even today, we see a lack of theoretical basis for decision-making on industrial policy issues. The main purpose of the publication is to assess the contribution of industry to the socio-economic development of the EU and its member states, as well as to the dynamic structural changes that took place during 2000-2019. To achieve the article's goal, the author uses such indicators as the share of the industrial sector in the generation of gross value added, employment, labor productivity, and exports/imports. The article reveals a general trend to increase in the share of the services sector in the generation of gross value added for the EU-28 and to decrease in the share of the industrial sector. It is established that industry remains an important sector for the EU economy, and for the EU-28, it provides almost 20% of gross value added and more than 70% of total exports, and accounts for about 15% of the employed population. For each of the EU countries, the socio-economic contribution of industry is different - for Central and Eastern Europe, it is more important in the generation of gross value added and employment than for the EU founder countries of the euro area (the EU-15 group). It is found that labor productivity in the EU-15 is higher than in other countries. Growing labor productivity is typical for Denmark, the Netherlands, Ireland, Sweden, and Great Britain, while lower productivity - for such CEE countries as Bulgaria, Romania, Lithuania, and Latvia. At the same time, growth rates of all industrial indicators in the latter countries is much higher than in the EU-15. The author considers the new EU industrial policy and various problems of the industrial sector in the EU. The study was carried out on the statistical basis of the European Commission using the methodology of Polish scientists of the Warsaw School of Economics to study the new industrial policy (Krzysztof Falkowski, Adam A. Ambroziak 2015).


Author(s):  
Sijbren Cnossen

AbstractIt is widely agreed that in countries without major constraints on administrative capacity, a value-added tax (VAT) should tax all goods and services at a uniform rate. In these countries, VAT’s C-efficiency, that is, actual revenue over potential revenue, should be one if compliance is perfect. Under this approach, VAT’s C-inefficiency—the aggregate of the policy gap (exemptions, reduced rates, thresholds) and the compliance gap (revenue shortfalls due to laps in compliance and implementation)—is treated as a residual. This contribution shows that calculating VAT’s C-inefficiency independently of its C-efficiency produces a more telling benchmark, particularly of the policy gap. This is illustrated by an analysis of the revenues of the Dutch VAT, which, given the common VAT directive, should be representative of the VATs in other European Union Member States. The large policy gap, hovering around 0.50, forms the background for exploring three options to improve VAT’s performance: reforming the common directive, ceding VAT design to Member States, and introducing a common modern VAT which can be piggybacked by Member States.


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