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Institutional Factors and Market Participation by Individual Farmers: The Case of Romania

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  • Borbala Balint
  • Peter Wobst
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    Abstract

    This article analyses the impact of institutional factors on market participation by individual farmers in Romania. For this purpose the influence of institutional factors on sales are structured with the help of Williamson's social analysis framework. A logit regression is employed to verify the relation between institutional and other factors and sales. The study finds that high transaction costs in input and output markets, reinforced by low production levels and by the farmers' rejection of cooperation, hinder market participation. Until these factors are addressed, Romanian agriculture will continue to serve as a social buffer rather than a commercial sector.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/14631370500505396
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

    Volume (Year): 18 (2006)
    Issue (Month): 1 ()
    Pages: 101-121

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    Handle: RePEc:taf:pocoec:v:18:y:2006:i:1:p:101-121

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    1. Kherallah, Mylène & Kirsten, Johann, 2001. "The new institutional economics," MTID discussion papers 41, International Food Policy Research Institute (IFPRI).
    2. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    3. Deininger, Klaus, 1995. "Collective agricultural production: A solution for transition economies?," World Development, Elsevier, vol. 23(8), pages 1317-1334, August.
    4. Rizov, Marian & Gavrilescu, Dinu & Gow, Hamish & Mathijs, Erik & Swinnen, Johan F. M., 2001. "Transition and Enterprise Restructuring: The Development of Individual Farming in Romania," World Development, Elsevier, vol. 29(7), pages 1257-1274, July.
    5. Erik Mathijs & Nivelin Noev, 2004. "Subsistence Farming in Central and Eastern Europe : Empirical Evidence from Albania, Bulgaria, Hungary, and Romania," Eastern European Economics, M.E. Sharpe, Inc., vol. 42(6), pages 72-89, November.
    6. Jill E. Hobbs, 1997. "Measuring the Importance of Transaction Costs in Cattle Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1083-1095.
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    Cited by:
    1. Iddo Kan & Ayal Kimhi & Zvi Lerman, 2006. "Farm output, non-farm income and commercialization in rural Georgia," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 3(2), pages 276-286.
    2. Sauer, Johannes & Balint, Borbala, 2006. "Romanian Maize - Distorted Prices and Producer Efficiency," 2006 Annual meeting, July 23-26, Long Beach, CA 21410, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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