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Will Romanian Crop Farms Be Affected Differently By Low-Input Farming?

Author

Listed:
  • Cecilia ALEXANDRI

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

  • Corina SAMAN

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

  • Bianca PĂUNA

    (Center for Macroeconomic Modelling, National Institute of Economic Research, Bucharest)

  • Lucian LUCA

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

Abstract

We use farm-level panel data from FADN Romania for three years (2016–2018) and estimate Cobb-Douglas production function to document the effect of low-input farming on production. We find that there are substantial differences in measuring values for capital, crop protection and fertilizers in the database that pose problems in estimating a uniform function for farms of all sizes and also for comparing the results. The estimations show the effect of fertilizers is larger for very small farms and of similar magnitude for the other farms. However, the estimator of the impact of reducing the use of crop protection materials is larger for farms with total utilized area larger than 10 hectares.

Suggested Citation

  • Cecilia ALEXANDRI & Corina SAMAN & Bianca PĂUNA & Lucian LUCA, 2022. "Will Romanian Crop Farms Be Affected Differently By Low-Input Farming?," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 19(2), pages 155-164.
    • Handle: RePEc:iag:reviea:v:19:y:2022:i:2:p:155-164
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    References listed on IDEAS

    as
    1. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
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    3. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    4. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    5. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    productivity; European Green Deal; crop farms; Romania;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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