The impact of entrepreneurship on economic development through government policies and citizens’ attitudes

This research aims to investigate the field of entrepreneurship in the context of public sector governance in eight of the largest economies in the world (the G7 countries and Russia). To analyse the composition and evolution of entrepreneurship, data from the Global Entrepreneurship Monitor was collected, while the economic stability was based on GDP data from the World Bank. To understand the relationships between the public sector governance policies and attitudes towards entrepreneurship in terms of economic development, the 2001-2018 period was considered. The relationships studied were observed through correlation and regression analyses, based on indexes obtained through principal component analysis. Results indicate that there are strong positive correlations between GDP and cultural and social norms promoted in society, total early-stage entrepreneurial activity, physical and services infrastructure, and tax and bureaucracy, while the fear of failure affects the GDP. Besides, this research emphasises the fact that individuals’ entrepreneurial attitudes and behaviour may reduce the level of GDP, while the entrepreneurial framework developed by the public sector would have an important role in increasing economic stability

PUBLIC POLICY, QUALITY OF INTITUTION AND ECONOMIC GROWTH IN CENTRAL AND EASTERN EUROPEAN COUNTRIES

This paper analyzes the relationship between economic performance and institutional development in several Central and Eastern European Countries. Our meta-argument is that the structural transformations at the levels of the quantitative variables and mechanisms are only a part of the transition processes. In order to view the big picture, the qualitative aspects related to public policies and institutions should also be considered. We test the linkages between the quality of public policies and institutions for seven Central and Eastern European countries (Bulgaria, Poland, Czech Republic, Hungary, Slovenia, Slovakia and Romania) for a time span between 2001 and 2011. These countries are displaying a certain degree of heterogeneity in terms of economic performances and the design and implementation of public policies. We use for our analysis the World Bank indicators from World Wide Governance Indicators. In order to deal with the potential reverse causality issues, we employ Generalized Method of Moments Framework (GMM) by using the lagged variables as instruments. The impact of governance indicators is statistically significant even if we use several control variables: exchange rate, unemployment, current account deficit, taxes burden and price stability. The corresponding Sargan and Arellano-Bond test for zero autocorrelation in first-differenced errors tests shows that the results display a corresponding robustness. The main policy implications for our findings may be synthesized by the thesis, according to which a proper design of public policies, a high degree of their effectiveness and accountability, a stable social and political environment together with the rule of law and efficient anticorruption mechanisms are critical determinants of economic growth even in emerging markets. The impact of the government “size , economic structure and markets” mechanisms , monetary policy and price stability , ownership structure and legal rights , international exchange, freedom of exchange in capital and financial markets on economic growth is far from being negligible. Hence, the Central and Eastern European countries joining the EU should implement policies strength their institutions and to improve the quality of public decisions

THE MAIN DEFICIENCIES IN THE IMPLEMENTATION OF THE SECTORAL OPERATIONAL PROGRAMME HUMAN RESOURCES DEVELOPMENT

The absorption of EU funds for Romania is a necessity in the nowadays context. The slow pace of absorption of these structural funds earmarked for Romania as EU member state is a deficiency with negative effects on the economic and social development of our country. Their low absorption shows deficiencies in their coordination and implementation at central level and also at the level of beneficiaries. Their coordinative authorities, in particular the Managing Authority of Structural Instruments, together with its subordinated institutions presents deficiencies in their coordination and implementation as having negative effects on their absorption. The main weaknesses identified on national level mainly consist in the lack of specialized personnel, in excessive bureaucracy and a mismatch of national legislation with the European one. The lack of transparency and change is specific to these structural funds, representing deficiencies that lead to beneficiaries’ discouragement to implement projects financed from structural funds. In the Sectoral Operational Programme, the Human Resources Development Program is a leader in the rate of absorption but it also has the largest number of problems and deficiencies in implementation. Due to the deficiencies identified by the auditing European Commission of the Sectoral Operational Programme Human Resources Development, payments were suspended for a period of four months. Following this situation, it was necessary to implement the necessary corrective measures at the level of POSDRU, leading to its release. Taking action and removing the deficiencies at the POSDRU level, and also at the level of other operational programs, it is a necessity and a priority to increase the absorption of these funds. The main measures that need to be taken mainly consist of training the personnel involved in the management of these funds, reimbursements release funds to the final beneficiaries, creating a more transparent system of evaluation of proposals and a better correlation of national legislation with the European one. The challenge is to implement measures identified and increase the absorption of structural funds until the end of their deployment