Geographia Polonica (2017) vol. 90, iss. 2

The development of agritourism in Romania and role of financial subsides allocated by the Common Agricultural Policy

Nicola Galluzzo

Geographia Polonica (2017) vol. 90, iss. 2, pp. 25-39 | Full text

Romania has experienced considerable growth in agritourism able to meet the demand for sustainable tourism generated on both domestic and European markets. A picturesque landscape, other unique features and cultural heritage have all acted directly to increase agritourism in the country. Against this background, the work detailed in this paper sought to employ a quantitative approach in assessing if the above development of agritourism correlated directly with financial assistance allocated under the EU’s Common Agricultural Policy (CAP). Findings in fact point to a direct impact of funding disbursed under the CAP, while payments disbursed under the so-called second pillar are not found to have impacted on the growth of agritourism. Outcomes with the Epanechnikov kernel method highlight a significant shift in the subsidies allocated under the Common Agricultural Policy via its first and second pillars, with an increase in the total fund disbursed in 2013 as compared with 2007. Subsidies allocated via the second pillar of the CAP can thus be said to havehad a pivotal role in supporting investment in on-farm diversification, in this way achieving a partial integrationof farmers’ incomes in Romania.

Keywords: panel data, rural development, rural tourism, fixed effect, countryside, multiple regression model, agritourism, Common Agricultural Policy, Romania

Nicola Galluzzo, Associazione Studi Geografico-Economici delle Aree Rurali Via Salaria per L’Aquila, 76 scala A, Rieti: Italy