Demetrios Psaltopoulos

Rural entrepreneurship in Europe: A research framework and agenda

The present work provides an integrated view of rural entrepreneurship and sets the agenda for future research in the area. Rurality defines a territorially specific entrepreneurial milieu with distinct physical, social and economic characteristics. Location, natural resources and the landscape, social capital, rural governance, business and social networks, as well as information and communication technologies, exert dynamic and complex influences on entrepreneurial activity in rural areas. Rurality is viewed as a dynamic entrepreneurial resource that shapes both opportunities and constraints. Rural entrepreneurship is depicted as a three‐stage sequential process highly influenced by specific territorial characteristics. The proposed research agenda addresses issues related to theoretical studies concerning entrepreneurial processes in rural areas and more applied issues concerning the formulation of integrated and competent policies supporting entrepreneurship in such areas.

Ex-ante analysis of the regional impacts of the common agricultural policy:a rural-urban recursive dynamic CGE model approach

Abstract A recursive dynamic regional Computable General Equilibrium model is developed to assess the economic impacts of two Common Agricultural Policy (CAP) scenarios in six NUTS-3 (Nomenclature of Territorial Units for Statistics) (NUTS-1: major socio-economic regions, NUTS-2: basic regions for the application of regional policies, NUTS-3: small regions for specific diagnoses) regions of the European Union (EU). The main goal of the analysis is to assess the scenario effects (change in production, prices, income, employment) in the rural and urban parts of these regions as well as on the different sectors. The two scenarios analysed are related to a 30% reduction in Pillar 1 (market measures and direct support to farmers) support and the introduction of an EU-wide flat rate level of Pillar 1 support complemented by a 45% increase in Pillar 2 (Rural Development Policy) funds. Results show that the overall gross domestic product effects are not significant, due to the relatively low importance of both the agricultural sector and CAP spending in the regional economies. However, impacts on the agricultural sector are quite important and differ according to the nature of the policy shock. Also, the structural characteristics of each case study influence the rural–urban and sectoral spillovers, including impacts on region-specific agricultural activity.

Ex-ante Spatial Policy Impact Analysis of the Rural Development policy in European Rural Areas (RURAL ECMOD)

The present study aims at modelling the impact of different CAP (Common Agricultural Policy) scenarios on 6 case study regional economies. The starting point is the construction of a Social Accounting Matrix (SAM) obtained through a combination of mechanical downscaling of higher level input-output data with superior data, followed by a balancing procedure. A number of key elements facilitate the simulation of the policy scenarios: disaggregation of agricultural sector by farm size and the rural-urban disaggregation of activities and households. Policy scenarios focus on the impacts of relatively major changes in agricultural and rural policy (change in the balance between CAP pillars 1 and 2 or redistribution of funding within CAP pillar 2 – rural development policy). Models used are recursive dynamic CGE models, solved one year at a time, over the period 2006 to 2020. Policy measures are modelled on the base of RDP spending mapped for each region into investments in specific SAM sectors Economy wide effects of all scenarios remain limited, but slightly more important and significant when looking at the specifically rural economy. On the base of a limited number of case study areas, it seems that diversification policy mixes for rural development are in all cases beneficial to rural economies, while policy mixes focusing on agriculture competitiveness and public goods is only economically beneficial at short term and in rural, peripheral and agriculture-centred areas.

Building a Typology of European Rural Areas for the Spatial Impact Assessment of Policies (TERA-SIAP)

Within the TERA-SIAP project, we developed a set of regional typologies (at NUTS3 level) which provide a suitable basis for Spatial Impact Assessments of a range of current and possible kinds of intervention (Generic Policy Issues) for rural areas. From a range of socio-economic models, we selected Regional Input-Output Models for the Spatial Impact Assessment of two Axis 3 measures (diversification of rural economy, and renovation and development of villages). One of the seven typologies developed, which focused on economic diversification, was used to identify a set of representative case study regions. The modelling results for the 16 case regions illustrated the fact that different types of rural economies are clearly associated with different patterns of policy impacts and that typologies can assist in the choice of appropriate representative regions. The combination of typologies and models are shown to have the potential to enhance the capacity for quantitative Spatial Impact Assessment of rural policy.

An interdisciplinary modelling approach assessing the cost-effectiveness of agri-environmental measures on reducing nutrient concentration to WFD thresholds under climate change: the case of the Louros catchment

The application of the Water Framework Directive (WFD) in the European Union (EU) targets certain threshold levels for the concentration of various nutrients, nitrogen and phosphorous being the most important. In the EU, agri-environmental measures constitute a significant component of Pillar 2—Rural Development Policies in both financial and regulatory terms. Environmental measures also are linked to Pillar 1 payments through cross-compliance and the greening proposals. This paper drawing from work carried out in the REFRESH FP7 project aims to show how an INtegrated CAtchment model of plant/soil system dynamics and instream biogeochemical and hydrological dynamics can be used to assess the cost-effectiveness of agri-environmental measures in relation to nutrient concentration targets set by the WFD, especially in the presence of important habitats. We present the procedures (methodological steps, challenges and problems) for assessing the cost-effectiveness of agri-environmental measures at the baseline situation, and climate and land use change scenarios. Furthermore, we present results of an application of this methodology to the Louros watershed in Greece and discuss the likely uses and future extensions of the modelling approach. Finally, we attempt to reveal the importance of this methodology for designing and incorporating alternative environmental practices in Pillar 1 and 2 measures.

Modelling the Effects of Immigration on Regional Economic Performance and Wage Distribution: A Computable General Equilibrium (CGE) Analysis of Three European Union Regions

Pouliakas K., Roberts D., Balamou E. and Psaltopoulos D. Modelling the effects of immigration on regional economic performance and wage distribution: a computable general equilibrium (CGE) analysis of three European Union regions, Regional Studies. The paper uses a regional computable general equilibrium (CGE) model to analyse the effects of immigration on three small remote European Union regions located within Scotland (UK), Greece and Latvia. Two migration scenarios are assessed. In the first, total labour supply is affected. In the second, the importance of migratory flows by differential labour skill types is investigated. The results indicate significant differences in the extent to which regional economies are affected by immigration. They also suggest that remote regions are highly vulnerable to the out-migration of skilled workers (‘brain-drain’), while the in-migration of unskilled workers leads to widening wage inequality.

Rural-urban interdependence in Greece: an inter-regional SAM approach

This paper analyses economic interdependence within and between rural-urban localities in Greece, namely the rural areas of Archanes and N. Kazantzakis and the urban area of Heraklion in Crete, using a three-region interregional SAM constructed for years 1988 and 1998. Also, a set of simulations is performed to analyse how different economic and policy developments related to the Archanes economy, would affect interdependencies and economic activity diffusion patterns within and between these three localities. Results show that different shocks (of the same size) generate different impacts for Archanes and are also associated with different diffusion patterns towards both the urban area of Heraklion and the neighbouring less-developed rural area of N. Kazantzakis.