Size and efficiency of the production factors in Romanian agriculture

Abstract

Romania has favourable conditions to develop the agriculture thanks to its significant agricultural land, climate conditions and labour force employed in this sector. In the last decades, the economic transition has determined major structural transformations within the agriculture sector, which generated certain disparities between the performance of Romania's agriculture and that of the EU's developed countries. This paper deals with the relationship between the size of agricultural holdings and the performance of the agricultural production factors in Romania. In order to achieve the paper's goal, we used the Data Envelopment Analysis and the comparative analysis, taking into account the features of the other EU countries. The research findings revealed that the efficiency of production factors used in agriculture is low and, therefore, a new organization of holdings is required. This can lead to an optimal sizing of the holdings, so that the differences in performance compared to the EU's developed countries to be minimized or even eliminated.

Keywords

• farm size
• production factors
• efficiency
• DEA