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Growth, Competitiveness and Convergence in Romanian Agriculture

Author

Listed:
  • Swinnen, Johan F.M.

    (LICOS Centre for Institutions and Economic Performance University of Leuven & Centre for European Policy Studies (CEPS))

  • Ciaian, Pavel

    (LICOS Centre for Institutions and Economic Performance University of Leuven & Centre for European Policy Studies (CEPS))

Abstract

Farm fragmentation and the need for consolidation and investment remains a major problem for Romanian agriculture, as documented in this article. One of the key structural problems is over employment in agriculture, which puts a strong pressure on the land and constrains the supply of land for farm consolidation. Another important constraint is that the rural infrastructure is weak, as well as the educational level (both general and professional) of the vast majority of the rural population. Equal access to subsidies is important in preventing further growth in inequality between small and big farms. Despite the magnitude of the problems, there are encouraging signs: significant investment and consolidation is taking place in about half of the farm sector, economic growth is robust in other sectors, the inflow of foreign investment in the food industry and the agribusiness sector has induced important changes in the food chain, the land market, in particular the land rental market, is growing and this could contribute importantly to farm consolidation and a more competitive structure.

Suggested Citation

  • 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.
  • Handle: RePEc:iag:reviea:v:5:y:2008:i:3-4:p:143-160
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    Citations

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    Cited by:

    1. 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.

    More about this item

    Keywords

    convergence; agricultural employment; CAP subsidies;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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