The Economic Activity of Private Farms in Romania during Transition: Just How Competitive Are They?

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Abstract
In this paper we attempt to avoid the usually legalistic approach to surveys of farm reform and the development of a viable private farming sector in transition economies. Instead, we argue that a better understanding of the Romanian private farming sector and its interaction with the rural financial market is gained where broader economic, demographic, sociological and political factors are incorporated in the analysis. Therefore this paper discusses the main characteristics of private farming in Romania in the context of the aforementioned factors. Finally, we evaluate the financial performance and competitiveness of private farms and the severity of the economic problems they face in Romanian agriculture.