Cereals Production Influence over the Trade Balance in Romania and in the European Union

• Author: Constantin, S.
• Position: Dept. of Economic Sciences and Business Administration, Transilvania University of Brasov
• Pages: 155-160

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 7 (56) No. 1 - 2014

CEREALS PRODUCTION INFLUENCE

OVER THE TRADE BALANCE IN

ROMANIA AND IN THE

EUROPEAN UNION

Sanda CONSTANTIN1

Abstract: The paper presents the evolution of two indicators, cereals

production and trade balance in Romania and in the European Union. The

evolution was analyzed during eleven years from 2002 to 2012.Statistical

methods have been used in order to establish the real and correct evolution

of the indicators during the analyzed period. The paper also tries to

demonstrate if there is any correlation between the indicators, using also

statistical methods of analysis. There was applied a regressi on and

correlation method, linear function. The results show that for Romania there

is a direct correlation but a weak one. For the European Union the model

shows that is a inverse proportion correlations.

Key words: cereals production, trade balance, correlation.

1 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.

1. Introduction

The crops structure in Romania, and

particularly the vegetable production, is

dominated by the cereals production.

Agriculture surfaces of these crops

represents 66% of the entire cultivated

surface, each year [3].

Two of those, wheat and corn, traditional

crops for the Romanian agriculture, have a

significant proportion, namely 57% of the

entire cultivated surface and 85% of the

cultivated surface with cereals (in year

2010) [5].

As a result, the way in which the

Romanian agriculture turns from the

traditional economy to the market

economy can be appreciated through the

way in which that production of these

crops is turned into food, particularly

through the dynamics of the wheat and

corn quantities which are consumed from

the producer.

Turning the cereals into food on the

market is very important for the economy

development and modernization.

2. The cereals production in Romania

and in the European Union

In Romania, the evolution of the

cereals production during the analyzed

period 2002 – 2012 and the statistical

analysis for this evolution is presented in

Table 1 [2].

From the statistical analysis we can

observe that, as regards the cereals

production in Romania there was no

continuous increase or decrease, the values

fluctuated more or less from year to year.