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Interdependencies between Agricultural and Labor Markets
Project
Project code: FAL-MA-02-21
Contract period: 01.05.2003
- 30.04.2006
Purpose of research: Applied research
Developed industrial countries are characterized by a complex and widely ramified net of intersectoral division of labor. In particular the agricultural sector shows various interdependencies with up- and down-streaming sectors as well as with the rest of the economy. Under these conditions changes of the economical and political framework lead to feedback effects from other industries and therewith to adjustments in agriculture. In this context the labor market is particularly interesting. Labor is a very important production input factor and therewith links all economic sectors. Furthermore the labor market similar to the agricultural market is characterized by numerous governmental intervention, excess supply and structural problems. Furthermore, particularly regarding the EU Eastern Enlargement labor migration takes a very special and frequently discussed role.Agriculture and migration take very special parts in the course of the discussion and analysis of the European Union (EU) Eastern enlargement process. Thereby both topics share a very significant commonness – political rigidities and protectionism. The agricultural market is governed by the EU’s Common Agricultural Policy (CAP) with its domestic support measures and protectionist trade regime. With regard to the immigration of workers from third countries and also from the accessing Central and Eastern European Countries (CEECs) there is no common policy set in place like in the case of agriculture. Nevertheless the individual policies applied by the 15 EU Member States also aim to protect their labor markets from the inflow of cheaper foreign labor. Thus, with the EU integration process both aspects – agriculture and labor migration – will be subject to further liberalization. Against this background the objective of this research project is to find answers to the following questions: What is the impact of a delayed integration of agriculture in the rest of the economy and also world economy in the light of further globalization and regional integration? How do the different CAP measures affect the labor market situation in the countries of an enlarged EU as well as international migration flows. Furthermore it is in the center of interest to shed light on the character of the trade-migration link in an EU Eastern enlargement framework.
Section overview
Subjects
- Agricultural Policy
- Market Analysis/Marketing Strategy