When Romania joined the European Union (EU) in 2007, it did so with significant structural drawbacks. This paper investigates, in this context, the influence of the considerable levels of financial support given under the Common Agricultural Policy (CAP) on the overall productivity of Romanian agriculture. Using data for a 15-year time horizon (1998-2013), we show that the policy incentives have not yet produced any positive effects on the Total Factor Productivity index. Moreover, the increases in the input index remain higher than the output index, reducing the overall productivity of Romanian agriculture. This is explained by a low share of high value-added products in the total agricultural production and agricultural structures that are not yet compatible with those of Western Europe. The new CAP financial allocation must correct these negative findings by supporting new investments in the food processing industry and the better marketing of agricultural products.
The effects of trade networks, non-tariff measures and natural disasters on the international beef trade: a gravity approach
This paper aims to investigate the factors influencing the international beef market’s trade flows by applying the gravity model. We...