Agricultural Policy and Regional Development via CAP Policies: The Case of the Central Macedonia

Abstract: Numerous and major economic and social problems have been experienced by the Greek economy over the last years, as a result of the economic crisis and instability, one of the most critical issues is unemployment, which has reached high levels that are difficult to control and reverse, at least in the short run. Within the context of consideration that is given to possible ways to address unemployment, there is debate about the role of the agri-food and farming sectors. More specifically, the role is investigated of support policies for the farming industry, primarily through funds from the Common Agricultural Policy (CAP), whether they played a role in either supporting or boosting employment during the period of the crisis. Nevertheless, it is known that supporting employment both within the industry, and indirectly in the economy overall, has never been a key target of any policy within the context of the CAP.

To examine the key objective of the report, two different approaches are used. The regional Input-Output model and the methodology of the Social Accounting Matrix (SAM).

Key words: agricultural policy; regional development; impact analysis

JEL codes: J21, D57, R15