Trends in Labour Productivity in Romania’s Agriculture

Abstract:

The paper analyzed labour productivity in Romania using Eurostat data for the period 2009-2018, which were processed in their dynamics with fixed basis index, descriptive statistics, regression models, correlation  and determination coefficients. Labour productivity increased by 91.4 % accounting for gross value added Euro 5,685.7 per AWU in 2018. This was a consequence of the growth of gross value added by 30.2% and of the decline in labour input by 32%. Among the EU countries, Romania is situated on the ante-penultimate position, reflecting the low level of labour productivity in agriculture, caused by the low gross value added and by the huge workforce input. The regression models proved that one AWU more labour input will determine a decline of GVA  and labour productivity in terms of GVA  per AWU by Euro -0.0013. Therefore, to improve labour productivity, Romania must take measures to diminish labour input and to increase gross value added by: improving farm managers' age structure and training level, encouraging the establishment of associative forms to increase economic farm size, increasing investments for farm modernization, diminishing the negative effects of the climate change, increasing production and products quality and their competitiveness on the domestic and international market.