TERRITORIAL IDENTITY AS A FACILITATOR OF THE EU FUNDS ABSORPTION: EVIDENCE FROM THE COMMON AGRICULTURAL POLICY

This paper assesses the effect of territorial identity as a facilitator of the regional-sectorial absorption of CAP funds within Italy, France and Spain. We test the hypothesis that areas and sectors characterized by community-based and place-sensitive production competences, the reflection of local socio-political values and tacit know-how, attract more funds. Territorial identity is declined in terms of local social capital and measured by a relatedness index, inspired by regional economics but newly used in agricultural economics. Drawing on FADN data over the period 2010-2017, we exploit Fixed Effects and dynamic panel data models. The results demonstrate that local social capital (i.e. territorial identity) significantly affects the absorption of CAP funds for rural development. A positive mediation effect in more-developed regions and for productions that evoke the deepest and most ancient relationship between man and environment, such as winegrowing is found.