Causal estimates of Geographical Indications? effects on territorial development: feasibility and application

This report proposes a quantitative approach for the estimation of impacts of the EU Geographical Indications (GIs) policy on territorial development. The application of this approach to yearly data on registered products and territorial development of municipalities in Portugal finds a substantial contribution from the GIs policy to territorial development. In particular the study identifies a significant positive impact of the number of registered GIs products on agricultural Gross Value Added, agricultural employment and number of firms in agriculture. This effect is most significant for the number of registered foods and for rural areas. No statistically significant impact is found on labour productivity in the agricultural sector, when measured by turnover of enterprises per employed persons.