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Abstract

The objective of this study is to empirically analyze the effectiveness of the Common Agricultural Policy of the EU, given the general economic and structural conditions under which the policies operate. The effectiveness of policies is measured in terms of the impacts of the policies on the stated policy objectives. The results show that policy target variables have developed in the desired direction. However, agricultural policies have kept more resources in the agriculture sector compared to a situation without policies, which has reduced the pace of productivity growth in terms of labour use and had a negative indirect impact on farmers’ incomes. Agricultural policy reforms have led to less stabilized markets in terms of increased price volatility.

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