Abstract

This paper is focused on patterns and changes in regional specialization and geographic concentration of agriculture as economic activity. The study is focused mainly on the evolution of Agriculture, as economic activity. It is studied the evolution of regional specialization and geographic concentration in Romania at NUTS2 level, by underlining the impact of the implementation of the Common Agricultural Policy and the integration of the Romanian agriculture in the European Market. The statistical indicator used within the empirical study is Krugman Index. The results of the study show that the transformations that occurred at the level of the Romanian economy in the process of pre-accession and post accession to the European Union led to minor changes in specialization of agriculture.

Highlights

  • The political economy of the Common Agricultural Policy has been discussed widely with a view to understanding the large European Union budget expenditures on the Common Agricultural Policy and the distortions within the European Union and on world markets (Council of the European Union, 1999; Council of the European Union, 2006)

  • The analisys of regional specialization and concentration of economic activities in Romania enables determining the manner in which the changes that occurred in the Romanian economy, and mainly in the country agriculture over the last two decades, have caused changes at mesoeconomic level, and if these are included in the trends outlined by researches conducted at European Union level

  • Analyzing the Krugman index values calculated for Romanian development regions during the period 1995–2009, summarized in Table 4, we find considerable differences in the concentration of three sub-activities of Agriculture as economic activity, at regional level

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Summary

Introduction

The political economy of the Common Agricultural Policy has been discussed widely with a view to understanding the large European Union budget expenditures on the Common Agricultural Policy and the distortions within the European Union and on world markets (Council of the European Union, 1999; Council of the European Union, 2006). The implementation of the Common Agricultural Policy requirements and the transformation involved by the efforts of the integration in the Common Market of the new accepted countries in the European Union generated modifications of their regional specialization and geographic concentration in certain activities. Critics to the Common Agricultural Policy suggest that that the integration policy introduces a market distortion that biases producers against product concentration within regions due to the price and income insurance provided by the Common Market. The aim of the research is to analyze the evolution of regional specialization and geographic concentration of agriculture in Romania, as a new country of the European Union, focusing on Agriculture, forestry and fishing as a certain activity and its subactivities. The practicing of agriculture and rural development in a coherent concept, structured on seven-years periods, in a unitary system based on the strategic principles of the Common Agricultural Policy, and taking into account the specificity of the Romanian rural space, creates the premises for assigning unprecedented investments in Romania’s agricultural history financed with communitarian funds and with private funds (Ioan, 2009)

Journal of Economics Studies and Research
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