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Productivity effects of CAP investment support: Evidence from Sweden using matched panel data
Jönköping University, Jönköping International Business School, JIBS, Economics.ORCID iD: 0000-0002-5664-3115
2017 (English)In: Land use policy, ISSN 0264-8377, E-ISSN 1873-5754, Vol. 66, 172-182 p.Article in journal (Refereed) Published
Abstract [en]

This paper studies the effects of investment support from the common agricultural policy on labour and total factor productivity of agricultural firms in Sweden. Detailed firm-level data on 34 300 firms are used to estimate a matched panel model that relates firm productivity to a series of factors reflecting internal and external characteristics. The recently developed Coarsened Exact Matching method is used to estimate matched control groups and handle selection bias. Findings show a positive and significant treatment effect of investment support on firm productivity, but only for small firms. The analysis also reveals that an increase in the size of the support in relation to firm income has a negative and significant impact on productivity for all firms. Differentiating between various types of investment supports indicates heterogeneous treatment effects. The policy instrument can improve its efficiency if targeted to small firms and investments that have a link to public good provision.

Place, publisher, year, edition, pages
Elsevier, 2017. Vol. 66, 172-182 p.
Keyword [en]
CAP; Investment support; Productivity; CEM
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-35495DOI: 10.1016/j.landusepol.2017.04.043ISI: XYZOAI: oai:DiVA.org:hj-35495DiVA: diva2:1094946
Available from: 2017-05-11 Created: 2017-05-11 Last updated: 2017-05-15Bibliographically approved

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Citation style
  • apa
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  • Other style
More styles
Language
  • de-DE
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  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
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  • asciidoc
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