Well functioning factor markets are a crucial condition for the sustainability, competitiveness and growth of agriculture and for rural development. At the same time, the functioning of the factor markets themselves are influenced by changes in agriculture and the rural economy. Such changes can be the result of technological change, of globalisation and European market integration, of changing consumer preferences, and of changes in policy. In particular changes in the Common Agricultural Policy (CAP) in the recent decade have affected the rural factor markets. While agricultural and food markets are fully integrated in a European single market, subject to an EU-wide common policy, this is unlikely the case for factor markets. For example, member state regulations and institutions affecting land, labour and capital markets may cause important heterogeneity in the factor markets. Obviously such variations are likely to have a potentially important effect, not just on the functioning of the factor markets, but also on the competitiveness of the agricultural sector, on structural change, and rural development in general. Such variations are also likely to cause different interactions between factor markets and EU policies such as the CAP, as they may react differently to reforms, and because they may cause differential effects of the reforms. The Factor Market project analyses the functioning of factor markets for agriculture in the EU-27, including the Candidate Countries. We compare the performance of different markets, their institutional framework and their impact on agricultural development and structural change, as well as their impact on rural economies, for the Member States, Candidate Countries and the EU as a whole. The project focuses on three market regimes: capital, labour and land markets. The capital market analysis will look at various forms of capital and study, among others, the determinants of sectoral investment decisions, including CAP instruments, and the impact of investments on technological change and capital stocks. The labour market analysis will include, for example, the analysis of human capital quality and mobility in the EU agricultural sector as well as off-farm labour supply. The land market analysis will look at both lease and sales markets and include, among others, the impact of the capitalisation of support into land values and factors relating to land transfers. We contribute to the existing literature on rural factor markets along two dimensions: (a) a comparative approach across the Member States and Candidate Countries and (b) an in-depth analysis of key issues determining the functioning and impact of each of the factor markets for agriculture and rural economies. Our contribution is invaluable, since there is no single comparative study available which covers all key rural factor markets (capital, labour and land) and all EU Member States and Candidate Countries. The analysis is organised along a uniform structure for the three factor markets: - The key issues and developments on each factor market in EU Member States and Candidate Countries are identified and described (WPs 2.1, 3.1 and 4.1). - The institutional framework and its implications for the factor markets are analysed for each factor in each country (WPs 2.2, 3.2 and 4.2). - Factor-specific theoretical frameworks are developed in WPs 2.3, 3.3 and 4.3. - Based on the identification of the key issues and factor market developments and the institutional framework, two types of empirical analysis, which are based on the above developed conceptual framework, will be performed for each factor: i. drivers of factor use (WPs 2.4a, 3.4a and 4.4a), ii. impact of changes in factor use (WPs 2.4b, 3.4b and 4.4b). - Simulation models will be used for all three factor markets to analyse the impact and interaction of the factor markets with policies under various scenarios (WPs 2.5, 3.5 and 4.5).
Vastaava tutkija
Myyrä Sami Hankkeen kesto 2010 - 2013
Asiasanat
capital market, labour market, market efficiency, agriculture, comparative analysis, Factor markets, land market
Hankkeen vaihe: Päättynyt
HUOM! Tämä tutkimushankekuvaus on tuotettu Hankehaaviin Maa- ja elintarviketalouden tutkimuskeskuksen tutkimustietojärjestelmästä, jota ei enää ylläpidetä. Tarkista ajantaiset tutkimushanketiedot Luonnonvarakeskus Luken järjestelmästä.
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