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The Impact of EU Accession in Romania: An Analysis of Regional Development Policy Effects by a Multiregional I-O Model

By Andrea Bonfiglio

Abstract

The objective of this article is to assess labour income and employment effects in Romania coming from rural development and structural policies defined in the proposed 2007-09 EU accession financial package. The methodology used is based on a multiregional I-O model derived by a three-stage estimation procedure. Main results show that EU accession will lead to large positive effects in Romania, which vary according to the region considered. In this connection, the South and the North- East regions are those on which benefits tend to concentrate. Finally, policy would seem to reduce regional and sectoral income disparities, leading to more balanced development. On the contrary, in terms of employment, policy would increase divergences, albeit, from an analysis of single region economy, a general tendency to a reduction of sector disparities is noticed.EU accession, rural development, structural actions, policy impact, multiregional I-O model, International Relations/Trade, C82, R15, R58,

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