This article analyses the impact of off-farm employment on the process of commercialisation of agriculture in Romania. The descriptive and correlation analysis reveals the existence of an important relationship between off-farm employment and agricultural sales. High off-farm employment is correlated with low number of households selling agricultural products and with high amount sold per household, suggesting specialisation and commercial farming in the regions with off-farm employment. Non-agricultural employment has an indirect impact on agricultural sales as well, through increased labour productivity in agriculture and through easing access to credit. Moreover, commercial farms undertake substantial investments in agriculture, thus furthering commercialisation.
This article analyses the impact of institutional factors on market participation by individual farmers in Romania. For this purpose the influence of institutional factors on sales are structured with the help of Williamson's social analysis framework. A logit regression is employed to verify the relation between institutional and other factors and sales. The study finds that high transaction costs in input and output markets, reinforced by low production levels and by the farmers' rejection of cooperation, hinder market participation. Until these factors are addressed, Romanian agriculture will continue to serve as a social buffer rather than a commercial sector.
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