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Home Browse 2014 – Volume 116 Volume 116 - Issue 3

The Common Agricultural Policy and productivity gains in Romanian agriculture: is there any evidence of convergence to the Western European realities?

byJITEA, Ionel-MugurelandPOCOL, Cristina Bianca
  • Year 2014
  • Volume 116
  • Issue 3
  • Pages 165-167

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.

Tags: CAPtotal factor productivityvalue-added products
  • http://dx.doi.org/10.7896/j.1429
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  • Scopus SJR (2024): 0.37
  • Scopus CiteScore (2024): 2.5
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  • ISSN (electronic): 2063-0476
  • ISSN-L 1418-2106

 

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Publisher Name: Institute of Agricultural Economics Nonprofit Kft. (AKI)

Publisher Headquarters: Zsil utca 3-5, 1093-Budapest, Hungary

Name of Responsible Person for Publishing:        Dr. Pal Goda

Name of Responsible Person for Editing:             Dr. Attila Jambor

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