<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The Common Agricultural Policy (CAP) has undergone radical changes as a consequence of international agreements. Through a parametric approach based on Stochastic Frontier Analysis, it has been possible to estimate the impact of financial subsidies allocated under the Common Agricultural Policy for the period from 2007 to 2017 in the framework of the first and second pillars to Romanian farms that are part of the FADN dataset. The findings have revealed the positive effect of financial subsidies allocated to disadvantaged rural areas in increasing technical efficiency, and a modest impact of decoupled payments disbursed under the first pillar of the CAP on the Romanian farms investigated.</p></abstract>

The Common Agricultural Policy (CAP) has undergone radical changes as a consequence of international agreements. Through a parametric approach based on Stochastic Frontier Analysis, it has been possible to estimate the impact of financial subsidies allocated under the Common Agricultural Policy for the period from 2007 to 2017 in the framework of the first and second pillars to Romanian farms that are part of the FADN dataset. The findings have revealed the positive effect of financial subsidies allocated to disadvantaged rural areas in increasing technical efficiency, and a modest impact of decoupled payments disbursed under the first pillar of the CAP on the Romanian farms investigated.

A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis

European Countryside

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Common Agricultural Policy (CAP) has undergone radical changes as a consequence of international agreements. Through a parametric approach based on...

A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis

Published Online: Dec 31, 2020

Page range: 494 - 505

Received: Jul 28, 2020

Accepted: Oct 14, 2020

DOI: https://doi.org/10.2478/euco-2020-0026

Keywords
Common Agricultural Policy, Less favoured areas, decoupled payments, rural development, DEA, SFA

© 2020 Nicola Galluzzo, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis

Published Online: Dec 31, 2020

Page range: 494 - 505

Received: Jul 28, 2020

Accepted: Oct 14, 2020

DOI: https://doi.org/10.2478/euco-2020-0026

KeywordsCommon Agricultural Policy, Less favoured areas, decoupled payments, rural development, DEA, SFA

© 2020 Nicola Galluzzo, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Common Agricultural Policy, Less favoured areas, decoupled payments, rural development, DEA, SFA