| IMPACT OF PRICE AND TRADE POLICY CHANGES DURING TRANSITION IN ROMANIA: THE CASE OF CEREALS AND OILSEEDS |
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| by |
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| Carmen Clapan, Mediterranean Agronomic Institute of Chania |
| George J. Mergos, University of Athens |
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| JEL classification : P230, P270, F140 |
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| Abstract |
| This study focuses on the changes of Romanian agricultural policy and trade concerning cereals and oilseeds. The impact of price changes on agricultural producers and on production incentives during the transition period is analysed. Standard methodology is used for the calculation of the nominal protection coefficients and producer subsidy equivalents for the main cereals and oilseeds. The study finds that: the changes in agricultural policy have brought confusion and uncertainty; the low integration of the free market and the poor organisation of the distribution channels have allowed government agencies to keep the monopolistic position for the state in purchasing agricultural products; tariffs are generally low, and the authorities have avoided the use of quantitative restrictions on imports despite difficulties with the balance of payments; there is an indirect taxation in agriculture which is becoming larger over time; and the government distorts the relative prices of the commodities analysed. |
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