Analysis of resilience in Romanian rural farm areas by a quantitative approach

Nicola Galluzzo

Abstract: Romanian rural territories are characterized by small farms grouped, due to their modest land capital endowment, predominately in the clusters of semi-subsistence and subsistence enterprises which are strongly sensitive and dependent to the payments and financial subsidies disbursed by the second pillar of the Common Agricultural Policy. Very interesting has been to define the resilience of rural areas able to stimulate a cohesive reaction fruitful in reducing the socio-economic marginalization in rural territories. The core purpose of this study was to assess by the Partial Least Square Structural Equation Modelling (PLS-SEM) an index able to estimate if rural areas have been able to be resilient in halting their socio-economic marginalization assessing the role and function of financial subsidies allocated by the Common Agricultural Policy towards rural areas development. In this paper the index of resilience in Romanian countryside has been estimated using the data published by the Farm Accountancy Data Network since 2007 to 2017 and other direct statistical sources published by the Romanian Institute of statistics. Research findings have pointed out in the framework of resilience the role of financial subsidies allocated by the European Union, predominately in the first pillar, in reducing the socio-economic marginalization.

Keywords: Common Agricultural Policy; FADN; rural development; rural territories; subsidies

Date published: 2020-02-26