Social and Behavioral Sciences Commons^™

The Impact Of The Common Agricultural Policy On Agricultural Productivity, Flemming Schneider Rhode

Honors Theses

In 2004 10 new countries, primarily Eastern European countries, joined the European Union (EU) with much media speculation concerning how this would affect their economies. This paper will look at how the Common Agricultural Program (CAP) affects agricultural productivity by measuring four independent variables and by using the 2004 entry as a natural experiment. The paper will estimate how the CAP affects the average farm size, fallow land area, proportion of farming dedicated to organic farming, and GOP growth. This is expected to impact agricultural productivity through increasing returns to scale, input availability, efficiency of land use and the Environmental …