This paper deals with the determinants of out-farm migration across the European Union (EU) regions focusing on the role played by CAP payments. We add to the existing literature in three main directions. First, our analysis has broad coverage (150 EU regions over the 1990–2009 period); second, we work on the entire portfolio of CAP instruments; third, we rely on modern panel data methods. Results show that standard drivers, such as the relative income and the relative labour share, are important determinants of out-farm migration. Overall, CAP payments significantly contributed to maintain job in agriculture, though the magnitude of the economic effect has been quite moderate and heterogeneous across policy instruments. Pillar I subsidies exerted an effect more than two times greater than that of Pillar II payments.
This paper proposes a selective review of the classical economics-based literature on climate change and migration, focusing on the extent to which agriculture might be considered a key mediating channel linking climate change to migration. Overall, climate change is expected to have large and negative effects on the global economy. These effects are even more evident whenever the economic sector considered is the agricultural one, particularly in developing countries. Hence, migration can be viewed as a specific form of adaptation implemented by individuals and households, enabling them to cope, among other things, with weather-induced risk. We show that the importance of agriculture emerges from both plenty of micro-level country studies and relatively few macro-level analyses using cross-sectional data over longer time periods. Thus, policy actions targeted to sustainable agriculture and rural development can both help tackle the challenges posed by climate change and create opportunities in the face of growing migration issues. However, we also stress that much of the current evidence is based on statistical associations that have nothing to do with causal inferences. This calls for the use of a more structural approach and more sophisticated research designs, enabling the researchers to better discriminate among different mechanisms concurrently at work. In addition, further research should be addressed to the role played by food security, a complex dimension largely missing in the current debates on climate change and migration.
This paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.