Title of Organized Session: “Impacts of CAP Reform on Regional Employment: Four EU Case
Studies”
Session Organizer: Prof. Konstadinos Mattas
Aristotle University of Thessaloniki, Dept. of Agricultural Economics
University Campus,
P.O. Box: 225, 54124 Thessaloniki, Greece
Phone: +30 2310 998807
Fax: +30 2310 998828, e-mail: mattas@auth.gr
Topic of the Session
The main theme of this session is the CAP’s impact on regional employment. CAP went
through major reform during 2003/2004 and Rural Development programmes follow suit. The
complexity of rural and regional economy does not allow to identify and determine the exact
impacts on the regions’ economy and particular on the employment as interdependence and
counterbalance effects are observed. Nevertheless, picking certain European regions and studying
them deeply, taking into consideration Pillar I and Pillar II, might offer an opportunity to cast
better the changes occurred due to CAP reforms.
Employment levels attract the interest of policy makers and the public as it is directly
associated with the income level and the regions’ future perspectives. Thus, bringing together the
results of studies in four different EU regions (in the UK, Italy, Greece, and Sweden) will provide
a unique opportunity not only to discuss and comment the results, but also to compare them and to
translate into some meaningful policy generalizations. In addition, insights will be gained on the
relation between several policy actions/measures and their impact on the agricultural and nonagricultural economy. It is essential from a policy point of view to reveal how various policy and
RDP measures, applied throughout the EU, affect the economy in specific rural areas. In this way,
policy recommendations for the future amendments of both the CAP and the rural development
measures may be generated. Ramifications, beyond the intervened sector, could present
significantly threat or opportunity to alter the whole economy and to increase/decrease regional
employment levels.
The session will comprise the presentation of four case studies that concern specific
representative rural regions (NUTS II) throughout the EU. These regions include the region of
East Wales in UK, the region of Emilia-Romagna in Italy, the region of Eastern Macedonia and
Thrace in Greece, and the region of Östergötland in Sweden. The results indicate substantial
changes within the farming sector as well as agriculture and non-agriculture structural changes in
the rural economies. The impacts of policy reforms and their implementations are discussed
within the spectrum of the peculiarities and the strong economic interconnection within each
regional economy.
Relevance of the Session to the Congress Program
The session topic relates directly to the Congress program as it tackles the main issue of
the Congress and particularly offers a broader investigation of people, food and environments for
certain European regions. European strategies aim at maintaining and enhancing the employment
levels through several interventions and policy implementations. Maintaining current employment
levels in EU’s regions contribute to the coherence of the society and to economic development.
Studying specific cases in EU provides a unique opportunity to examine the effects of the CAP in
an abstracting and integrating approach.
Format Proposed:
The following table provides the format of the proposed session.
Time
Details
Authors
09.00
Langstaff L., Lowman S., Midmore S., and Vaughan A. “A Report on the
Employment Effects of the CAP Reform and the Current Rural Development
Measures: Suggestions for Future Amendments”
UWA
L. Langstaff, S. Lowman,
S. Midmore, A. Vaughan
09.20
Arfini F., and Donati M. “A PMP Model for Measuring the Effects of the
CAP Reform On Farm Employment Using Individual FADN Information”
9.00-10.30 Chair: Prof. K. Mattas
09.40
Mattas K., Loizou E., Karelakis C., and Tsakiri M. “The Impact of the CAP
and RDP Reforms on the Regional Employment: Evidence from the Region of
Eastern Macedonia and Thrace-Greece”
10.00
Lindberg G., Lindqvist K.A., and Surry Y. “Case Study on the Effects of
CAP Reform on the Economy of the Region Östergötland-Sweden”
10.20
General Discussion
10.30
End of the Session
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UOP
F. Arfini, M. Donati
AUTh
M. Tsakiri, C. Karelakis,
E. Loizou, K. Mattas
SLU
G. Lindberg,
K.A. Lindqvist, Surry Y.
List of Contributors:
The list of leading contributors of the proposed session is the following:

Aristotle University of Thessaloniki, School of Agriculture, AUTh, (Greece),
Prof. Konstadinos Mattas, e-mail address: mattas@auth.gr

University of Parma, Department of Economics, UOP, (Italy),
Prof. Fillipo Arfini, e-mail address: arfini@unipr.it

Swedish University of Agricultural Sciences, Department of Economics, SLU, (Sweden),
Prof. Yves Surry, e-mail address: Yves.Surry@ekon.slu.se

University of Wales at Aberystwyth, School of Management and Business, UWA, (UK),
Prof. Peter Midmore, e-mail address: pxm@aber.ac.uk
Abstract of Contributions
-
Langstaff L., Lowman S., Midmore S., and Vaughan A. “A Report on the Employment
Effects of the CAP Reform and the Current Rural Development Measures: Suggestions for
Future Amendments”
This case study provides a complete picture of the CAP and RDP reforms impacts on the
regional economy of East-Wales. The study first analyses a desk research and fieldwork
interviews to identify potential impacts of the reforms on the farm and non-farm employment of
the region. Afterwards, the results from the development of three concrete theoretical models
(second pillar effect, crop change, efficiency change) are assessed, which allow for policy
recommendations aiming to improve farmer’s profitability and sustain farming income and
employment.
-
Arfini F., and Donati M. “A PMP Model for Measuring the Effects of the CAP Reform on
Farm Employment Using Individual FADN Information”
The objective of this case study is to present the main methodological innovations (in
respect the cost estimation, architecture of FADN farm holding, decoupling and labour modelling)
and, according the policy scenario, to show the different impacts in the considered region on land
use, income and labour allocation. The use of the European FADN information at individual level
is very useful for portraying the European agriculture and, if it is possible to dispose of a time
series of such data, measuring the effect of the agricultural policy measures on the farmers’
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allocation behaviour. The model developed captures in a very detailed way the farm behaviour
and generates predictions coherent with the real profitability of the agricultural activities included
in the sample. The quantitative model adopted for this purpose is based on the positive
mathematical programming (PMP) methodology and is developed following the Heckelei’s
calibration approach with internal estimation of the specific variable costs. The model is applied
on a sample of FADN farms for five European regions: Emilia-Romagna (Italy), Eastern
Macedonia and Thrace (Greece), Kassel (Germany), East-Wales (UK) and Östergötland
(Sweden).
-
Tsakiri M., Karelakis C., Loizou E., and Mattas K. “The Impact of the CAP and RDP
Reforms on the Regional Employment: Evidence from the Region of Eastern Macedonia
and Thrace-Greece”
The objectives of the present case study are: first, to report on the effects of the CAP and
RDP reforms on farm and non-farm employment in the region of Eastern Macedonia and Thrace
(Greece). Second, to identify policy-induced changes in some key variables at farm level (land
allocation, livestock structure, economic impact). The Pillar II reform impacts on rural
employment is assessed through a detailed case study analysis that included in-depth interviews
with stakeholders and farmers in the region. Subsequently, the study presents the direct effects of
CAP reform in both the agricultural activities and the regional economy, derived from the
development of three different theoretical models (efficiency, I/O, PMP) Policy recommendations
are provided regarding probable initiatives to be taken to stimulate employment in future CAP
reforms, taking also into account stakeholders’ opinions and open up new employment
opportunities alongside farming in the region.
-
Lindberg G., Lindqvist K.A., and Surry Y. “Case Study on the Effects of CAP Reform on the
Economy of the Region Östergötland-Sweden”
The case study analyses the effects of the CAP and RDP reforms on the whole economic
structure of the region Östergötland in Sweden. A region that is very extensive and where the
significance of the agricultural activities is relative minor in the region. The study develops an
experimental theoretical tool (both qualitative and quantitative) for the analysis of the general
economic effects on farming activities. These effects include changes in employment levels in
agriculture, in farm’s crop mix, in profit margins and changes in input use.
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