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Assessing the Impacts of Pillar 1 and 2 Subsidies on TFP in French Crop Farms
Author(s) -
Mary Sébastien
Publication year - 2013
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2012.00365.x
Subject(s) - subsidy , total factor productivity , productivity , agricultural economics , pillar , economics , common agricultural policy , agricultural productivity , agriculture , production (economics) , agricultural science , natural resource economics , international trade , environmental science , macroeconomics , european union , geography , engineering , structural engineering , archaeology , market economy
This article analyses the impact of common agricultural policy (CAP) subsidies on total factor productivity using a FADN dataset of French crop farms between 1996 and 2003. We first estimate a production function using a system GMM approach and then recover farm‐level total factor productivity (TFP). Further, the impact of Pillar 1 and 2 subsidies on TFP is investigated and results show that several subsidies have a negative impact on productivity during the period covered in the dataset. CAP reforms have also had an impact on the relationship between subsidies and productivity.