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Where have all the Funds Gone? Multiregional Input-Output Analysis of the EAFRD effectiviness

UCLM UNIVERSITY OF CASTILLA-LA MANCHA. Where have all the Funds Gone? Multiregional Input-Output Analysis of the EAFRD effectiviness. Monsalve, Fabio* Zafrilla , Jorge Enrique Cadarso , Mª Angeles Tobarra , Mª Angeles. 1 . Introduction. 2. Data and Methodology.

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Where have all the Funds Gone? Multiregional Input-Output Analysis of the EAFRD effectiviness

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  1. UCLM UNIVERSITY OF CASTILLA-LA MANCHA Where have all the Funds Gone? Multiregional Input-Output Analysis of the EAFRD effectiviness Monsalve, Fabio*Zafrilla, Jorge Enrique Cadarso, Mª AngelesTobarra, Mª Angeles

  2. 1. Introduction 2. Data and Methodology 3. MRIO Analysis (6 Reg) 4. MRIO Analysis(32 Reg) 5. Discussion

  3. Budgetary leakage of European place-based policies via imports?

  4. New CAP Productivity Food- provisioning • Rural Development Research • Rural economy is no longer a farm economy • Sector-based policies are neither efficient nor effective rural development policies • [Irwin et al. (2010)]. . Keep-Incomeavoid surplus Rural Develop. Environment • “The future of rural society” • The pressures of modern development to land use and the stability of the environment, • The rural decline • The abandonment of areas which are furthest form the mainstream of community life and access • (EC 1988). …

  5. First Pillar.- European Agricultural Guarantee Fund (EAFG) • Second Pillar.- European Agricultural Fund for Rural Development (EAFRD)

  6. EAFRD (2007-2013).- Aims and Endowments: • Improving the competitiveness of agriculture and forestry by supporting restructuring, development and innovation • Improving the environment and the countryside by supporting land management • Improving the quality of life in rural areas 151 96

  7. Some considerations about Rural development evaluation… • Rural Development is distinctively more than rural growth: economic diversification, sustainability, the enhancement of physical, cultural and human potential and the involvement of local people in the process is different from “more-of- everything” • The “common monitoring and evaluation framework” have developed a systematic process of evaluation through a comprehensive set of indicators, which asses the achievement of the established objectives; but not the collateral spillovers and eventual financial leakages…

  8. A multiregional impact analysis of the new fund could contributeto evaluate the efficiency of the rural policy and to assess the already mentioned spillovers effects and budgetary leakage out of EU. • Triple Bottom Line Analysis • People.- Labour, Taxes • Planet.- Emissions, Water • Profit.- Economic impact, Value add

  9. 2.1. Data

  10. 2.1. Data 151 M€uros Sectorial Allocation PDRsobjectives Regional Allocation*

  11. * Regional ExpenditureAllocation Rows Sum WIOD Final Demand Reshape dom imported * Regional IncomeAllocation.- Similar, butrestricted to c37

  12. 2.2. Methodology Alsoexpressed in compact formby: ThroughLeontiefInverse [L= (I – A)-1]:

  13. 2.2. Methodology Output ValueAdded Labour L Taxes T Emissions E Water W

  14. MRIO WorldSpillovers

  15. MRIO Economic, Social and EnvironmentalImpacts

  16. Sectorial EconomicImpacts (millones de €)

  17. Social impacts - Labour

  18. Social Impacts - Taxes

  19. EnvironmentalImpacts - Emissions

  20. EnvironmentalImpacts - water

  21. Discussion Where have all the Funds Gone? • Mainly remains in Europe (82,85%) …and what about inside Europe?

  22. Discussion …and what about inside Europe?

  23. Discussion EU FEADER impacts (domestic and intra-unionleakages)

  24. Intra-EU FEADER impacts (leakages)

  25. RoW FEADER impacts (leakages)

  26. UCLM UNIVERSITY OF CASTILLA-LA MANCHA Thanks for your attention! Monsalve, Fabio*Zafrilla, Jorge Enrique Cadarso, Mª AngelesTobarra, Mª Angeles

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