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Institutional Factors and Market Participation by Individual Farmers: The Case of Romania

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  • Borbala Balint
  • Peter Wobst

Abstract

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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  • Borbala Balint & Peter Wobst, 2006. "Institutional Factors and Market Participation by Individual Farmers: The Case of Romania," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 101-121.
    • Handle: RePEc:taf:pocoec:v:18:y:2006:i:1:p:101-121
    DOI: 10.1080/14631370500505396
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    References listed on IDEAS

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    1. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
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    5. Rizov, Marian & Gavrilescu, Dinu & Gow, Hamish & Mathijs, Erik & Swinnen, Johan F. M., 2001. "Transition and Enterprise Restructuring: The Development of Individual Farming in Romania," World Development, Elsevier, vol. 29(7), pages 1257-1274, July.
    6. Kherallah, Mylène & Kirsten, Johann, 2001. "The new institutional economics," MTID discussion papers 41, International Food Policy Research Institute (IFPRI).
    7. Erik Mathijs & Nivelin Noev, 2004. "Subsistence Farming in Central and Eastern Europe : Empirical Evidence from Albania, Bulgaria, Hungary, and Romania," Eastern European Economics, Taylor & Francis Journals, vol. 42(6), pages 72-89, November.
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    2. Tray, Bunthan & Garnevska, Elena & Shadbolt, Nicola, 2021. "Linking smallholder producers to high-value markets through vegetable producer cooperatives in Cambodia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(6), February.
    3. Sokoli, Olta & Xhoxhi, Orjon & Skreli, Engjell & Imami, Drini & Doluschitz, Reiner, 2021. "Willingness to cooperate in the context of post-communist economy – Why do local rules matter?," World Development Perspectives, Elsevier, vol. 22(C).
    4. Sophia Davidova & Lena Fredriksson & Matthew Gorton & Plamen Mishev & Dan Petrovici, 2012. "Subsistence Farming, Incomes, and Agricultural Livelihoods in the New Member States of the European Union," Environment and Planning C, , vol. 30(2), pages 209-227, April.
    5. Wolz, Axel & Fritzsch, Jana & Pencakova, Jitka, 2006. "Social Capital Among Agricultural Producers In The Czech Republic: Its Impact On Economic Performance," IAMO Discussion Papers 91965, Institute of Agricultural Development in Transition Economies (IAMO).
    6. Sauer, Johannes & Balint, Borbala, 2006. "Romanian Maize - Distorted Prices and Producer Efficiency," 2006 Annual meeting, July 23-26, Long Beach, CA 21410, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Abdul Quddus & Jaclyn D. Kropp, 2020. "Constraints to Agricultural Production and Marketing in the Lagging Regions of Bangladesh," Sustainability, MDPI, vol. 12(10), pages 1-24, May.
    8. repec:zbw:iamodp:91965 is not listed on IDEAS
    9. Laure Latruffe & Yann Desjeux, 2014. "Perpetuation of subsistence farming in Kosovo: the role of farm integration in input markets," Post-Communist Economies, Taylor & Francis Journals, vol. 26(1), pages 137-148, March.
    10. Maspaitella, Marcus & Garnevska, Elena & Siddique, Muhammad I. & Shadbolt, Nicola, 2018. "Towards high value markets: a case study of smallholder vegetable farmers in Indonesia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).
    11. Wolz, Axel & Möllers, Judith & Micu, Marius Mihai, 2020. "Options for agricultural service cooperatives in a postsocialist economy: Evidence from Romania," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 49(1), pages 57-65.
    12. Mollers, Judith & Traikova, Diana & Birhala, Brandusha & Wolz, Axel, 2015. "Why (not) cooperate? Modelling cognitive determinants of farmers' motivation to join producer groups in Romania," 2015 Conference, August 9-14, 2015, Milan, Italy 212472, International Association of Agricultural Economists.

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