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Romania's Agriculture and its Role in the Convergence Process

Author

Listed:
  • CONSTANTIN POSTOIU

    (Ph.D. Candidate The Bucharest University of Economics Studies ROMANIA)

  • IONUȚ BUȘEGA

    (Ph.D. Candidate, The Bucharest University of Economics Studies, ROMANIA)

Abstract

The importance of agriculture in Romania is linked to the fact that 45% of its population is in the rural area, mostly dependent on agricultural activities. This paper aims to determine in what extent agriculture influences the convergence process of Romania with the euro area. The structural convergence index is computed in order to assess the degree in which the structure of the Romanian economy resembles the one of the euro area in terms of both gross value added and employment. Research indicates that Romania has the lowest score in terms of structural convergence with the euro area. The main reason is the oversized agricultural sector which employs almost a third of the active population. The productivity of the Romanian agriculture is then assessed in order to identify its possible effect on the country’s overall competitiveness and on the whole convergence process.

Suggested Citation

  • Constantin Postoiu & Ionuț Bușega, 2015. "Romania's Agriculture and its Role in the Convergence Process," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 3(1), pages 33-43, May.
    • Handle: RePEc:ntu:ntugeo:vol3-iss1-15-033
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    References listed on IDEAS

    as
    1. Swinnen, Johan F.M. & Ciaian, Pavel, 2008. "Growth, Competitiveness and Convergence in Romanian Agriculture," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 5(3-4), pages 143-160, December.
    2. Rusu, Marioara, 2002. "Agricultural Land Fragmentation and Land Consolidation Rationality," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 6999, International Farm Management Association.
    3. Paul Dragos Aligica & Adina Dabu, 2003. "Land Reform and Agricultural Reform Policies in Romania's Transition to the Market Economy," Eastern European Economics, Taylor & Francis Journals, vol. 41(5), pages 49-69, January.
    4. Adina Dabu & Paul Dragos Aligica, 2003. "Land Reform and Agricultural Reform Policies in Romania's Transition to the Market Economy: Overview and Assessment," Post-Print hal-00480390, HAL.
    5. Marius-Corneliu Marinas, 2006. "The Structural Convergence of the Romanian Economy. Comparative Analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 1(1(496)), pages 26-33, March.
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