2019

The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies

Reprint No. 2019:20

Author(s): Ray D. Bollman and Shon FergusonYear: 2019 Title: Journal of Agricultural Economics Volume (No.): 70 (2) Pages: 507–528
Online article (restrictions may apply)
Preliminary version


We estimate the impact of removing an export subsidy on the local economies of Alberta, Saskatchewan and Manitoba, exploiting the large regional variation of a 1995 reform. We find that the loss of the subsidy resulted in significantly lower farm value‐added, farm asset values and local non‐farm employment. The results suggest that the subsidy removal had detrimental spillover effects on the local non‐agricultural economy that varied spatially across the Prairies. The point estimates suggest that the marginal effect of the subsidy loss on non‐agricultural employment was five times as large as those obtained from traditional estimates of the multiplier effect.


Reference:
Bollman, Ray D. and Shon Ferguson (2019), "The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies". Journal of Agricultural Economics 70(2), 507–528.

Shon Ferguson

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Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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