Determinants of Agricultural Production in Romania: A Panel Data Approach

Determinants of Agricultural Production in Romania: A Panel Data Approach

Alina Zaharia, Simona Roxana Pătărlăgeanu
Copyright: © 2019 |Pages: 27
DOI: 10.4018/978-1-5225-5739-5.ch001
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Abstract

Agriculture plays an important part in the worldwide challenges, such as sustainable development, climate change, high level of greenhouse gas emissions, food security and safety, overpopulation, social welfare, and natural resource depletion. This chapter examines a panel data approach to determine the contribution of several factors on the agricultural output in terms of value and of yield. Different regression models were established for the analysis at territorial level in Romania. Some findings suggest a negative influence of the excessive drought years on the cereals yield while a statistical relevance could not be found for the influence of the excessively rainy years. Still, further studies should be conducted on analyzing the influence of the environmental and social factors on the agricultural economic output.
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Background

The gross value added of agriculture, forestry and fishing represented 1.7% of the EU total gross value added while in Romania this indicator reached the EU peak of 6.4% of total gross value added in 2013 (Eurostat, 2016). The employment level is 2.75 million Romanian persons occupied in this sector in 2013 and 2.5 million persons self-employed – the highest in the EU – reaching to a share of 24.16% in 2013 (Eurostat, 2016).

In addition, food security and safety is a more and more discussed issue all over the world. In simplistic definitions, food security refers at assuring the necessary quantity of food for the population while food safety refers at assuring the so needed quality of food. It is interesting to emphasize the existence, in general, of enough food available for the population, still the lack of its quality and the access to it raise many problems. By access, the specialists refer mainly to the affordability (Hazell & Wood, 2008), to the access to sufficient, affordable and nutritious food (European Commission, 2016a). Still, by solving the problem of assuring food security by providing for the population enough money to afford the healthy and the necessary food, it might arise:

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