Assessment of the impact of Pillar I and II policy measures on the local economy: the case of the Central Macedonia region

Abstract

The common agricultural policy (CAP) has gone through numerous reforms since it was launched in the early '60s. The most important reform corresponds to the period of 2014-2020, which was particularly significant for the Greek economy due to the ongoing economic vulnerability. The present paper endeavours to assess the possible impacts that the reformed CAP may have on a Greek regional economy, employing an input-output model. Particularly, the paper evaluates the impact of the Pillar I and II measures on the output, income and employment of the region using an input-output (I/O) model with the GRIT method. Utilising the FLQ quotient as a regionalisation method, the results designate that the implementation of the Pillar I and Pillar II policy measures have a positive effect on the regional economy in terms of both the output and the income.