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Migration to Castelo Branco: Options for Economic Growth Through Small-Scale Agriculture

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Migration to Castelo Branco: Options for Economic Growth Through Small-Scale Agriculture (Return-) migration to Castelo Branco: Options for economic growth through small-scale agriculture Figure 1: Olive orchard, Karin Ronde (2012) July 13, 2012 Karin Ronde, s1776487 drs. P.J.M van Steen Faculty of Spatial Sciences, University of Groningen prof.dr. Ana Firmino, Faculty of Sciences Universidade Nova de Lisboa Preface This thesis has been written as the concluding requirement for my master program in Economic Geography at the University of Groningen. I took the opportunity to conduct my master thesis in another country and through the Erasmus student exchange program I ended up in Lisbon where professor Ana Firmino was asked to be my supervisor. Ana Firmino is among others specialized in sustainable rural development, organic farming and social farming which suits well with my chosen topic. The goal of my master thesis is to discover if (return) migration to Castelo Branco can stimulate agricultural activity and generate economic growth in the region. I chose this topic because I was inspired by the ongoing debate on the consequences of population decline in some peripheral parts of the Netherlands and its consequences for those regions. Another interest of mine is agriculture and for this reason I wanted to link population decline with agriculture and economic development since I study Economic Geography. Eventually I decided to research the connection between (return) migration and agriculture. I came to this connection because in many policies it is suggested that population decline can best be contested by in-migration. The region of Castelo Branco was chosen because my Portuguese supervisor Ana Firmino has many contacts in that region which I needed for my research. 2 Acknowledgement With the writing of this paper I am finishing my four years of study at the University of Groningen. Although I really enjoyed my study, these four years have not always been easy for me and now at the end of my studies special thoughts go to my grandfather and grandmother of whom I know they had wished they could be here to see me finish my studies. Now, at the closure of my study, I would like use this acknowledgement to express my gratitude to the people who have adviced, encouraged and supported me the past four years. First of all I am grateful for the support of my family. They have always helped and supported me throughout my studies and the writing of my thesis. Secondly I would like to thank Mafalda and Oriana for showing me the Portuguese hospitality and helping me with my research by taking me to the countryside of Castelo Branco. Thirdly I wish to thank the two other Economic Geography students who went with me to Lisbon, Bas Heite and Sandra van der Molen. They have given me much needed advise and supported me throughout the whole writing process. And last but not least I would like to thank my supervisors Paul van Steen and Ana Firmino. I am grateful to Ana Firmino for helping me to get in contact with my interviewees and providing me with plenty of information about Castelo Branco. A special thanks go to my professor Paul van Steen for helping me in completing my thesis and providing me with interesting ideas for my thesis. Lisbon, July 13, 2012 Karin Ronde 3 Abstract The goal of this paper is to discover if (return-) migration to Castelo Branco can stimulate agricultural activity and generate economic growth in the region. This study will focus on the relations between (return-) migration, small-scale agriculture and economic growth. The region has been suffering from out-migration and low levels of population growth in the past. Return migration could, by means of revitalization of agricultural activity in the region, be the basis of a new cycle of economic growth. The degree to which this is possible, as well as the conditions for success, for the Castelo Branco region are not very well known. This research has been conducted by means of a case study of the region Castelo Branco. Castelo Branco is a region located in Portugal near to the Spanish border. Through the case study it is the intention to try to get a good understanding of the effects that (return) migration might have on agriculture and economic growth in Castelo Branco. Different methods of data collection are used for this research. The first two chapters are based on scientific literature and collected data. At the end of these chapters five hypotheses were created. These hypotheses define the expectations of this research and describe the aspects that will be examined in the subsequent chapters. Besides the information from the literature also different interviews were held. With the use of data analysis, literature review, interviews and my own vision the hypotheses and results will be examined. Can (return) migration to Castelo Branco stimulate the agricultural activity and generate economic growth in the region? In theory the answer to this question is yes, if migration would happen it would be able to stimulate the agriculture and economy. The basis of the economy in Castelo Branco is agriculture and although the majority of the farms are small- scaled it is still an important source of income for the population. For the region of Castelo Branco it is very important that migrants are coming to the region since the population has been declining for many years. Also the agriculture sector has problems because the farmers are aging and there are not enough young people to work in agriculture. It became clear that the migrants who are coming to the region are planning on staying in the region. For this reason they invest in their farm which is good for the stimulation of the economy of the region. However up till this point not many migrants are coming to the region. In the future it might happen that more people will come to the region but these people will most likely live up till 40 kilometres away from Castelo Branco. This means that in the more remote villages further away in the district population decline will continue and there migration will probably not be able to stimulate agricultural activity and eventually economic growth. Keywords: Population decline, migration, small-scale agriculture, economic growth, Castelo Branco. 4 Context Preface ........................................................................................................................................ 2 Acknowledgement ...................................................................................................................... 3 Abstract ...................................................................................................................................... 4 Chapter 1. Background, goal and structure of the research........................................................ 7 1.1 Population decline and rural regions ......................................................................... 7 1.2 Castelo Branco, Portugal ........................................................................................... 8 1.3 Research problem ........................................................................................................ 9 1.4 Research goal .............................................................................................................. 9 1.5 Research questions .................................................................................................... 10 1.6 Conceptual model ...................................................................................................... 10 1.7 Research design ......................................................................................................... 11 Chapter 2. Migration and Rural Regions in Europe: an overview of the literature ................. 12 2.1 Migration ................................................................................................................... 12 2.2 Return migration ........................................................................................................ 15 2.3 Impacts of return migration for rural areas. ............................................................. 16 2.4 Unemployment rates, entrepreneurship and urban-to-rural migration .................... 17 2.5 Summary .................................................................................................................... 20 Chapter 3. Castelo Branco an Agricultural Region .................................................................. 22 3.1 Agriculture in Portugal ............................................................................................. 22 3.2 Side activities in Agriculture ..................................................................................... 26 3.3 Castelo Branco .......................................................................................................... 27 3.4 Agriculture and the Economy of Castelo Branco ...................................................... 28 3.5 Agriculture, Economy and (Return) migration: Five hypotheses .............................. 29 Chapter 4. Migration to Castelo Branco: impact on agriculture and economy ........................ 32 4.1 Rural region in decline .............................................................................................. 32 4.2 The importance of migration ..................................................................................... 34 4.3 Migration the solution? ............................................................................................. 37 Chapter 5. Agriculture of Castelo Branco: attractive
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