Institutional Factors and Market Participation by Individual Farmers: The Case of Romania
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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Volume (Year): 18 (2006)
Issue (Month): 1 ()
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