Abstract

In this work, the impacts of the CAP reform on the selling points of agricultural supplies and local economy were investigated. Factor analysis and the Structural Equation Modeling technique were performed to identify the CAP’s effects on the selling points, the local economy and their interlinkages. Data was gathered using face-to-face interviews with agronomists working on the local agricultural input sector. The survey was conducted in the Region of Eastern Macedonia and Thrace (Greece), where agriculture is considered the main economic activity affecting the development of related economic sectors. Results confirm the existence of a clear effect of the CAP’s reform on the selling points of agricultural supplies and local economy, validating the high level of interconnection of these two main factors which follow a strong parallel route.

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