ANALYSIS OF FINANCIAL SUBSIDIES ALLOCATED BY THE COMMON AGRICULTURAL POLICY TO EUROPEAN FARMS IN REDUCING ECONOMIC-TERRITORIAL INEQUALITIES BY INDEXES OF CONCENTRATION
NICOLA GALLUZZO1
1 Association of Economic and Geographical Studies of Rural Areas (ASGEAR), Via Salaria per L’Aquila 76 scala A Rieti, Italy, asgear@libero.it
ABSTRACT. – Analysis of Financial Subsidies Allocated by the Common Agricultural Policy in European Farms in Reducing Economic-Territorial Inequalities by Indexes of Concentration. As a consequence of the European Union (EU) enlargement in 2004 there has been a reshaping of funds allocated by the EU both in favour of an endogenous rural development, part of Pillar 2 of the Common Agricultural Policy (CAP), and also in terms of direct payments towards ag-commodities financed by Pillar 1 of the CAP. The European Commission, in order to evaluate the impact, role and function of the CAP, has set up an annual survey on a sample of European farms belonging to the Farm Accountancy Data Network (FADN). By using the FADN dataset for the period 2004-2012 in 25 EU Member States, this paper has assessed by indexes of concentration whether funds allocated by Pillars 1 and 2 of the CAP have reduced economic disparities in some EU Member States. Findings have shown that there has been a drop of inequality distribution in terms of financial subsidies in European farms allocated to strengthen the rural development. Focusing the attention on financial supports to disadvantaged rural areas, territorial disparities appear quite diversified among EU Member States.
Keywords: Gini Index, Rural Development Plan, Farm Accountancy Data Network, Sen poverty index.