infonet-economy

This paper investigates the effects of an information campaign about a governmental rural development program (RDP) in the Former Yugoslav Republic of Macedonia on the farmers’ intention to participate in the RDP. In the course of a survey among farmers, the treatment group received an information brochure with relevant details on selected RDP measures, while the control group received no information. Even though the intervention had been planned as experiment, randomization was not properly conducted, requiring sample adjustments and controlling for observed covariates in the estimation process. The results suggest that while the intervention succeeded in informing farmers, it had a negative, albeit marginally statically significant, effect on farmers’ reported possibility and intention to use RDP support in the near future. Evidence from further outcome variables suggests that this may be due to the information about administrative burden associated with RDP participation provided in the brochure. We also find that the negative effect is driven by the subsample of unprofitable farmers.