Real Economic Convergence – European and National Dimension

The effects of European integration upon the support to economic and social development in the EU Member States, upon the convergence process and bridging up the gaps between the Member States represents a field of particular interest, both for researchers and for practioners. In Romania, the governmental policy with regard to the economic-social convergence seems to have a relatively diffuse formulation, being rather included in the regional development policy, for which the Convergence Program 2008–2011 was designed. It is considered that the complex economic-social convergence process from any country or community of states can be approached from two main perspectives: as stage of convergence fulfillment and as intensity of the convergence fulfillment process. The general statistical analysis of the economic convergence process is based upon two relevant sets of indicators: economic structure indicators and economic performance indicators. Very illustrating for the development gap to be recovered by convergence is the fact that out of the 15 regions with the lowest development level from EU-27, six regions are from Romania (Center – 38%, North-West – 36%, South-East – 33%, South-Muntenia – 32%, South-West Oltenia – 30%, North- East – 25%). Starting from the theoretical concepts related to the regional economic convergence, generating social cohesion, and the system of related measurement indicators system, the paper intends to present the state of things in this field in the European Union, on the basis of certain macroeconomic or demo-economic quantitative evaluations, from which certain tendencies in the regional convergence evolution can be identified. The second level of regional economic convergence methodology application targets Romania’s real economy, namely two important sectors: the industrial non-financial – banking SMEs and agriculture.real convergence, regional competitiveness, regional disparity, regional density.

Macroeconomic Variables Influencing the European Convergence of the Romanian Agri-Food Sector

The methodological opening necessary to approach the economic convergence was based on a series of recent empirical studies, both at national level, in a European context and at the level of the agri-food sector, compared to overall Romanian economy. The competitiveness, which generates convergence, is usually related to tangible results, such as continuous productivity growth, high real wages and living standard, innovating processes with driving effect. The disarticulation in the Romanian economy dynamics in the last two decades is confirmed by the strong relative instability, measured by the variation coefficients (CoV%), ranging from 6.03% (in total GVA) to 14.83% (in agriculture). The energy intensity – in principle considered as a measure of the energy efficiency of a nation’s economy – experienced a strong regressive trend in Romania, compared to the EU–27 average, and bridging up the gaps requires extremely long periods of time (from 121.2 years to 32.7 years). Out of the six time periods considered as relevant for comparing economic performances, only in two (1993–1996 and 2001–2004) the “real wages – productivity” correlation was in the limits of economic rationality. The intensity of intermediary deliveries of agriculture to food industry was down by more than 35% (from 65.1% in 1989 to only 29.9% in 2007), while the intensity of intermediary deliveries from food industry to agriculture was down by more than 14.5% (from 19.1% in 1989 to 4.6% in 2007). The intensity of intermediary acquisitions of food industry from agriculture decreased by 46.7% (from 76.7% in 1989 to 30.0% in 2007), while that of agriculture from the food industry by 11% (from 18.0% in 1989 to 7.0% in 2007). The gross agricultural output per hectare in Romania had the highest variation coefficient among the seven investigated countries, i.e. 23.5%, compared to only 6.5% in Germany, under the conditions of a large technological performance gap between Romania and the compared countries. The bi-factorial regressional adjustment of the gross agricultural output per hectare, for which a determination coefficient of 80.4% was determined, reflects its pregnant dependence on cereal production. The real income from the agricultural activity in Romania was, in cumulative relative terms, by only 7.8% higher in 2008 compared to 2000; this increase lay between the decline by 9.2% (Netherlands) and the increase by 31.5% (Bulgaria); in Romania’s case, there was a striking amplitude of average yearly modifications, from 27.12% in the period 2001–2004 (2000 = 1), to – 12.85% in the period 2005–2008 (2004 = 1), i.e. the highest difference in rates among the compared countries.economic convergence, energy intensity, wages–productivity correlation, intermediary deliveries and acquisitions, A Indicator

INTERNAL COMPETITIVENESS EROSION OF THE ROMANIAN AGRI-FOOD SECTOR EROSION “CATALYZED” BY THE ECONOMIC-FINANCIAL CRISIS

The paper starts from the theoretical premise that the business environment of the operators from the agri-food economy is, greater influenced by the behaviour of certain essential macro-economic variables of the market economies. For this purpose, our methodological approach investigates the behaviour of six macro-economic variables (GDP, prices, inflation, exchange rate, budget and credit) during time periods for which relevant statistical data are available. Starting from the incidence of economic macro-variables upon the agri-food sector, a series of factors are identified and quantified that generated a strong erosion of farmers’ incomes (relative instability of production and real prices and the “aggressiveness” of real prices of non-agricultural inputs).macroeconomic variable, agri-food sector, sectoral real prices, price scissors, relative instability

ECOLOGICAL FOOTPRINT AND BIOCAPACITY – METHODOLOGY AND REGIONAL AND NATIONAL DIMENSIONS

The scientific approach to the two novatory concepts – the Ecological Footprint and the Biocapacity – as a premiere in the Romanian agrarian economy research, starts from the identification of the main reasons why the above-mentioned concepts gained in methodological consistency and applicability area; it continues with the presentation of the main methodological elements for the calculation of the quantifying indicators of the two concepts, on the basis of which a diagnosisanalysis is made of the evolution of the global spatial distribution of the demand of resources (ecological footprint) and of the supply of resources (biocapacity) in time, with the specification of Romania’s position in this respect.ecological footprint, biocapacity, bioproductivity, global hectare (gha), renewable resource

The macroeconomic context of the firms in Romania – benchmarks, evolutions and certain prospective evaluations

The present paper starts from the theoretical premise according to which the business environment of firms (as macroeconomic entities) is influenced to a greater or less extent by the behaviour of certain essential macroeconomic variables of the market econmies. In this respect, our methodological approach investigates the behaviours of six macroeconomic variables (GDP, prices, inflation, exchange rate, budget and credit), in certain periods for which relevant statistical data are available.macroeconomic variable; GDP; inflation; exchange rate; budget; credit;

The dynamic of agrifood systems and institutional impacts on Romanian vegetable producers

The integration into the world trade and particularly along the chain of products with high value added, such as the vegetables chain, is considered as a promoter of growth and poverty alleviation (Aksoy and Beghin, 2005), even though this topic is subject to controversy. The paper’s purpose is to assess the role of collective organization forms in farmers’ participation in the Romanian supply chains, more exactly the possibility of farmers to adapt to the dynamic retail chains using new institutional economic theories. Having given the requirements imposed by retail chains to vegetable suppliers in terms of quantity, quality, frequency, food safety, it is expected that a small farmer cannot afford to participate individually in the retail chains due to high transaction costs, lack of scale and institutional changes required. In order to see the determinants of joining collective actions by vegetable producers, binary logit/probit models were used. The results signal out a small degree of farmers’ participation in collective forms of organizations. Also, they reveal a certain degree of uncertainty among stakeholders in terms of institutional arrangements and participation in collective action

Insertion of rural households into market economy mechanisms -evaluations and challenges on a zonal case study

The approach proposes itself, to identify the opportunities and restrictions for the rural development in a given rural area, made of four communes of the Arges County (situated in the Carpathian space), from a multicriterial perspective (demography, income sources, the utilized agricultural area, etc.), for the formulation of some feasible alternatives for the sustainable local development. Among the rural communities that gravitates towards it, we can mention the communes Albesti, Leresti, Schitu Golesti and Valea Mare Pravat (Valea Mare) that, together, constituted a rural microzone; from this area a representative sample of subjects was established; a complex questionnaire was applied to this sample, in relation to occupations and income sources, types of economic behaviors, etc., from the perspective of identification of opportunities for sustainable local development. The rural crisis was manifested in the investigated area by the multiplication of natural, demographic and social capital fragilization in each locality in part, added to a prolonged period of changes in the rural traditional values. The decline of farming activities specific to the investigated area, the economic decline of urban centers, the modification of the polarization center status of towns brought about essential changes in rural developments. The territorial image of the investigated area bears the imprint of agrarian structures specificity, generating particular modalities of space, natural and social capital utilization. The type of rural economy covers another dimension of the territorial image, as the modality of using the opportunities, the level of resources utilization and the economic coherence in particular are defining elements for the respective area

AGRICULTURE AND RURAL DEVELOPMENT IN ROMANIA – THE MAIN MODALITIES TO ATTENUATE THE CRISIS EFFECTS AND TO RESUME ECONOMIC GROWTH

The paper presents the main modalities and solutions by which agriculture and rural development can represent factors of economic-financial crisis shock attenuation and resuming economic growth. It is without doubt that the main modality to increase agriculture contribution to the general economic growth is the capital injection into economic factors (investments that create jobs, increase production and productivity on the agricultural holdings, develop infrastructure in the rural areas), the best use of financial resources by funding systems adequate to the present situation whose effects should stop the economic decline and subsequently generate economic growth. Romania, an EU Member State since 2007, must “get in line” with the funding systems used in agriculture and rural development in the European Union. However, a main remark should be made. All the CAP funding systems, adopted by the EU, from its establishment up to the present moment (except for the first system, in use in the immediate period after the Common Market was established), have been funding systems designed and implemented under strong general economic and agricultural growth conditions, for the equilibration of the agricultural market (in most cases with surplus of agricultural products), family farm consolidation and environment and landscape protection conditions, animal welfare, etc. Taking into consideration the period of generalized economic and financial crisis, in the paper it is specified that none of the funding systems of agriculture and rural development in the EU has been designed for periods of generalized economic-financial crisis or economic recession, so that certain points of view presented below, with regard to the modalities to attenuate the crisis in agriculture and to increase this sector contribution to economic growth relaunching, might be in (relative) disagreement with the present CAP funding system, adopted by the EU.agriculture and rural development, economic-financial crisis, recession, CAP, investments

Agriculture and rural development in Romania. The main modalities to attenuate the crisis effects and to resume economic growth.

The paper presents the main modalities and solutions by which agriculture and rural development can represent factors of economic-financial crisis shock attenuation and resuming economic growth. It is without doubt that the main modality to increase agriculture contribution to the general economic growth is the capital injection into economic factors (investments that create jobs, increase production and productivity on the agricultural holdings, develop infrastructure in the rural areas), the best use of financial resources by funding systems adequate to the present situation whose effects should stop the economic decline and subsequently generate economic growth. Romania, a EU Member State since 2007, must “get in line” with the funding systems used in agriculture and rural development in the European Union. However, a main remark should be made. All the CAP funding systems, adopted by the EU, from its establishment up to the present moment (except for the first system, in use in the immediate period after the Common Market was established), have been funding systems designed and implemented under strong general economic and agricultural growth conditions, for the equilibration of the agricultural market (in most cases with surplus of agricultural products), family farm consolidation and environment and landscape protection conditions, animal welfare, etc. Taking into consideration the period of generalized economic and financial crisis, in the paper it is specified that none of the funding systems of agriculture and rural development in the EU has been designed for periods of generalized economic-financial crisis or economic recession, so that certain points of view presented below, with regard to the modalities to attenuate the crisis in agriculture and to increase this sector contribution to economic growth relaunching, might be in (relative) disagreement with the present CAP funding system, adopted by the EU.agriculture and rural development; economic-financial crisis; recession; CAP; investments;