Abstract
This study investigates the effects of a local information campaign on farmers’ interest in a rural development programme (RDP) in the former Yugoslav Republic of Macedonia. The results suggest that while our intervention succeeded in informing farmers, it had a negative, albeit only marginally significant, effect on the reported possibility of using future RDP support. This puzzling result can be attributed to increased awareness of administrative burden associated with RDP participation. An additional heterogeneity analysis suggests the negative effect is driven by unprofitable farmers who are averse to any administrative encumbrance, for whom upfront cofinancing of an RDP is untenable.
Highlights
The agricultural sector plays an important role in the rural economy of the Western Balkans
We focus on the former Yugoslav Republic (FYR) of Macedonia, where agriculture, together with forestry and fishing, accounts for about 15 percent of GDP and 17 percent of total employment (State Statistical Office of the Republic of Macedonia 2015)
Panel A: Intention to apply for and use rural development programme (RDP) support (1) Farmer intends to apply for RDP in one of the calls
Summary
The agricultural sector plays an important role in the rural economy of the Western Balkans. We focus on the former Yugoslav Republic (FYR) of Macedonia, where agriculture, together with forestry and fishing, accounts for about 15 percent of GDP and 17 percent of total employment (State Statistical Office of the Republic of Macedonia 2015). While the agricultural sector is of importance and has naturally high development. While EU member states must follow common strategic goals for rural development and agriculture, they adjust the design and implementation of RDPs to their country-specific contexts (Dwyer et al 2012)
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