A Preliminary Quantitative Analysis Of Rurality In Romania And The Impact Of Common Agricultural Policy Subsidies

In the literature, many studies have sought to assess through a quantitative approach the principle relationships between quantitative variables correlated to rurality. The impediment to such studies arises from the impossibility of quantitatively assessing cause-effect relationships between variables. The core purpose of this research was to assess by a quantitative approach the main cause-effect relationships in counties of Romania over the years 2007 to 2016, in order to identify variables affecting the rurality index. The study used Partial Least Squares Structural Equation Modelling following the bootstrap methodology. The research outcomes highlighted the notable and positive role of financial subsidies allocated by the second pillar of the Common Agricultural Policy and specifically, the payments in favour of disadvantaged rural areas in relation to the rurality index across all regions of Romania. Some decoupled payments allocated within the framework of the first pillar of the CAP were found to have had no effect on crop farming. Drawing conclusions from this research, the financial support disbursed by the rural development programme is a fundamental stimulus to the reduction of socioeconomic marginalisation in Romanian farms and farming areas.