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

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  • Borbala Balint
  • Peter Wobst

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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  • Borbala Balint & Peter Wobst, 2006. "Institutional Factors and Market Participation by Individual Farmers: The Case of Romania," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 101-121.
    • Handle: RePEc:taf:pocoec:v:18:y:2006:i:1:p:101-121
    DOI: 10.1080/14631370500505396
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    References listed on IDEAS

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    1. Deininger, Klaus, 1995. "Collective agricultural production: A solution for transition economies?," World Development, Elsevier, vol. 23(8), pages 1317-1334, August.
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    5. Kherallah, Mylène & Kirsten, Johann, 2001. "The new institutional economics," MSSD discussion papers 41, International Food Policy Research Institute (IFPRI).
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    7. Staal, Steven & Delgado, Christopher & Nicholson, Charles, 1997. "Smallholder dairying under transactions costs in East Africa," World Development, Elsevier, vol. 25(5), pages 779-794, May.
    8. 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.
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    2. Wolz, Axel & Fritzsch, Jana & Pencakova, Jitka, 2006. "Social Capital Among Agricultural Producers In The Czech Republic: Its Impact On Economic Performance," IAMO Discussion Papers 91965, Institute of Agricultural Development in Transition Economies (IAMO).
    3. 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.
    4. Abdul Quddus & Jaclyn D. Kropp, 2020. "Constraints to Agricultural Production and Marketing in the Lagging Regions of Bangladesh," Sustainability, MDPI, vol. 12(10), pages 1-24, May.
    5. repec:zbw:iamodp:91965 is not listed on IDEAS
    6. Wolz, Axel & Möllers, Judith & Micu, Marius Mihai, 2020. "Options for agricultural service cooperatives in a postsocialist economy: Evidence from Romania," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 49(1), pages 57-65.
    7. Tray, Bunthan & Garnevska, Elena & Shadbolt, Nicola, 2021. "Linking smallholder producers to high-value markets through vegetable producer cooperatives in Cambodia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(6), February.
    8. Sophia Davidova & Lena Fredriksson & Matthew Gorton & Plamen Mishev & Dan Petrovici, 2012. "Subsistence Farming, Incomes, and Agricultural Livelihoods in the New Member States of the European Union," Environment and Planning C, , vol. 30(2), pages 209-227, April.
    9. Laure Latruffe & Yann Desjeux, 2014. "Perpetuation of subsistence farming in Kosovo: the role of farm integration in input markets," Post-Communist Economies, Taylor & Francis Journals, vol. 26(1), pages 137-148, March.
    10. Maspaitella, Marcus & Garnevska, Elena & Siddique, Muhammad I. & Shadbolt, Nicola, 2018. "Towards high value markets: a case study of smallholder vegetable farmers in Indonesia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).
    11. 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).
    12. Mollers, Judith & Traikova, Diana & Birhala, Brandusha & Wolz, Axel, 2015. "Why (not) cooperate? Modelling cognitive determinants of farmers' motivation to join producer groups in Romania," 2015 Conference, August 9-14, 2015, Milan, Italy 212472, International Association of Agricultural Economists.

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