Abstract
In the literature, many studies have sought to assess through a quantitative approach the principle relationships between quantitative variables correlated to rurality. The impediment to such studies arises from the impossibility of quantitatively assessing cause-effect relationships between variables. The core purpose of this research was to assess by a quantitative approach the main cause-effect relationships in counties of Romania over the years 2007 to 2016, in order to identify variables affecting the rurality index. The study used Partial Least Squares Structural Equation Modelling following the bootstrap methodology. The research outcomes highlighted the notable and positive role of financial subsidies allocated by the second pillar of the Common Agricultural Policy and specifically, the payments in favour of disadvantaged rural areas in relation to the rurality index across all regions of Romania. Some decoupled payments allocated within the framework of the first pillar of the CAP were found to have had no effect on crop farming. Drawing conclusions from this research, the financial support disbursed by the rural development programme is a fundamental stimulus to the reduction of socioeconomic marginalisation in Romanian farms and farming areas.
Highlights
The concept of rurality and its implications has been investigated in depth in the context of different European countries (Galluzzo, 2018a; 2018b; 2017; Kendall, 1975; Cloke, 1977)
The main objective of the research was to identify an index of rurality that is able to explain the path of rural development in Romania, focusing the research objective on evaluating the part played by European funds allocated by the Community Agricultural Policy (CAP), both in the first and the second pillar, on the overall rural development in order to test the effects of the CAP
Across all Romanian regions, a significant percentage of the total amount of financial subsidies distributed under the second pillar of the Common Agricultural Policy were allocated to disadvantaged rural areas
Summary
The concept of rurality and its implications has been investigated in depth in the context of different European countries (Galluzzo, 2018a; 2018b; 2017; Kendall, 1975; Cloke, 1977). The assessment of an index of rurality has focused on investigating the impact of financial subsidies allocated by the European Union through the application of multiple regression modelling and Principal Component Analysis (PCA), which are both aimed at identifying the main correlations among variables. The drawback of this approach is the apparent difficulty of quantifying the cause-effect relationships that exist between variables (Galluzzo, 2018a; Finco et al, 2005). Population and surface density represent pivotal variables fundamental for discriminating and distinguishing rural areas from urban ones
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