Working Paper Cnr-Ceris, N° 19/2012

The distribution of agricultural funds towards undeveloped areas: evidence from Italy[1]

Greta Falavigna, CNR-Ceris , via Real Collegio 30, 10024 Moncalieri (To), Italy

Alessandro Manello, CNR-Ceris , via Real Collegio 30, 10024 Moncalieri (To), Italy

 Sara Pavone, University of Insubria & CNR-Ceris, via Real Collegio 30, 10024 Moncalieri (To), Italy

The present working paper aims analyses efficiency and productivity growth of agricultural production in Italy. Appling a recent tool from environmental management field, the Directional Distance Function (DDF), global performance indicators has been estimated for 102 Italian provinces considering both quantities produced and emissions of ammonia, from fertilizers usage, as undesirable output. Therefore, productivity enhancements can come from the contraction of pollution and from the expansion of desirable outputs, in this case agricultural products. Our shows that huge differences among Italian macro emerge by considering both efficiency and productivity dynamics. This evidence is interpreted in light the amount of public fund distributed by Rural Development Programs over the period 2000-2006 and our findings suggest that a larger amount of resources were distributed to more disadvantaged areas. Then we can conclude that the flows of public fund seems to follow the right direction, highlighting interesting policy implications for future actions.

Keywords: rural development, agricultural performance, productivity growth, public funds.

JEL codes: O13, O47,Q18, Q28 

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