EXTERNAL FACTORS’ IMPACT OVER THE AGRICULTURAL SECTOR OF THE REPUBLIC OF MOLDOVA

Over the past ten years, Moldova’s economy has gone through significant structural changes. The main drivers of growth have been retail and wholesale trade and other services, including the financial sector. The migrant’s remittances have become one of major source of capital formation. The article examines how the impact of external factors has affected productivity and structure of the agricultural sector in the Republic of Moldova. To capture a comprehensive picture of the rural transformation this study integrates analysis into the different quantitative and qualitative surveys during last ten years. In small transition economies the diagnosis of the structural transformations is based on scarce data and incomplete information. In order to investigate the actual state of agri-food sector were used specific methods and techniques: statistical and economic analysis of macro economic indicators, semi-structured interviews of key stakeholders, analysis of the impact of public policies on the agricultural sector. The main conclusion of this paper is that the agricultural sector has undergone major structural changes, including fragmentation of land, rural depopulation, degradation of irrigation systems, and rapidly changing trade conditions in traditional markets. Public and private policies should exploit innovations and technology transfers, as well as improving professional skills of the labour force employed in agriculture.