Assessing long-term effects of CAP investment support on indicators of farm performanceNilsson, Pia; Wixe, Sofia;
In this study of Swedish farms from 2007 to 2016, we estimate the effects of investment support from the Common Agricultural Policy on indicators of farm performance, focusing on long-term effects. To isolate the impact and alleviate problems of selection bias, we employ a counterfactual empirical design using Coarsened Exact Matching and dynamic panel fixed-effects estimations. The average treatment effect on the treated estimates show a positive and significant long-term improvement of farm performance with regard to productivity and turnover. However, the results indicate significant time lags between investments and accumulated observable effects, as we find most short-term effects of the subsidy to be insignificant.
CAP investment support; farm performance; long-term effects; Sweden; Q12; Q18; D24
Published inEuropean Review of Agricultural Economics 2022, volume: 49, number: 4, pages: 760-795
Publisher: OXFORD UNIV PRESS
UKÄ Subject classification
URI (permanent link to this page)