THE MARGINAL PROFITABILITY OF THE PRODUCTION’S MAIN FACTORS IN AGRICULTURAL FARMS FROM ROMANIA DEPENDING ON THE ECONOMIC SIZE

RADOI RALUCA-ALEXANDRA^¹, DRAGHICI MANEA^²,MERCE EMILIAN^³, ILIE DIANA-MARIA^⁴

USAMV BUCHAREST^¹, ASAS BUCHAREST^², USAMV CLUJ-NAPOCA^³ ‚ICEADR^⁴
Cor­re­spond­ing author email: raluca_nec @ yahoo.com

Abstract: The eco­nom­ic dimen­sion of the agri­cul­tur­al farm is inten­sive­ly stud­ied both by agri­cul­tur­al spe­cial­ists, who usu­al­ly want farms as large as pos­si­ble, but also by agrar­i­an econ­o­mists who mea­sure the prof­itabil­i­ty of the fac­tors involved in obtain­ing agri­cul­tur­al pro­duc­tion at the scale of the eco­nom­ic dimen­sion. In addi­tion to estab­lished tech­ni­cal-eco­nom­ic indi­ca­tors, such as: gross prod­uct, prof­itabil­i­ty, labor pro­duc­tiv­i­ty, which show the over­all effi­cien­cy of the fac­tors, spe­cif­ic indi­ca­tors are also used that show the sep­a­rate effi­cien­cy of the fac­tors through the mar­gin­al prof­itabil­i­ty, cal­cu­lat­ed with the help of elas­tic­i­ty coef­fi­cients. The paper used data pro­vid­ed by FADN- Euro­stat, to cal­cu­late the elas­tic­i­ty of the cap­i­tal and labor force, con­sumed in the agri­cul­tur­al hold­ing, for the peri­od 2007–2020, cal­cu­lat­ing the Cobb-Dou­glas pro­duc­tion func­tion. The coef­fi­cients of elas­tic­i­ty were cal­cu­lat­ed and com­pared for the six class­es of eco­nom­ic size of the agri­cul­tur­al hold­ing, from the South Munte­nia Devel­op­ment Region, in order to draw con­clu­sions regard­ing the prof­itabil­i­ty on cap­i­tal and labor force, at the scale lev­el. The authors aim to con­tin­ue their stud­ies with the analy­sis of elas­tic­i­ty coef­fi­cients at the lev­el of the devel­op­ment regions of our coun­try and their com­par­i­son with sim­i­lar indi­ca­tors from farms at the lev­el of some regions of the Euro­pean Union coun­tries.
Key­words: agri­cul­tur­al farm, coef­fi­cient of elas­tic­i­ty, Cobb-Dou­glas func­tion, scale econ­o­my.
JEL clas­si­fi­ca­tion: D01, D24