Regional Impacts of Direct Payments on Farm Productivity and Efficiency in the European Union

DOI 10.7160/aol.2022.140105
No 1/2022, March
pp. 59-68

Jambor, A. and Szerletics, A. (2022) "Regional Impacts of Direct Payments on Farm Productivity and Efficiency in the European Union", AGRIS on-line Papers in Economics and Informatics, Vol. 14, No. 1, pp. 59-68. ISSN 1804-1930. DOI 10.7160/aol.2022.140105.


This paper analyses the regional impacts of direct payments on the labour and land productivity of European farms. The basic assumption of the research is that direct CAP subsidies have a positive effect on productivity and efficiency. This was tested by quantitative regression-analysis models, which were based on NUTS2-level regional data from 2008-2018. The results show that direct subsidies have a negative effect on labour and productivity in agriculture, a finding that can be attributed to a number of underlying factors. The direction and magnitude of these productivity effects differ markedly between old and new Member States.


Direct payment, CAP, regional, effect, land productivity, labour productivity.


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