SOME MACROASPECTS OF FDI IN ROMANIA

The paper studies the macroeconomic aspects and influence of FDI on banking sector, foreign external debt on medium and long term, labour market and relevant macro indicators of economic growth. The main conclusion is that the comparison of FDI advantages and disadvantages presupposes a complex methodological approach, particularised on types of activities and effects. The corroboration at local, regional and national levels of favourable and unfavourable effects, as a rule, leads to a net favourable result, yet without eliminating also the existence of some non favourable punctual results.FDI effects, banking sector, foreign external debt, labour market

THE SOCIAL-ECONOMIC IMPLICATIONS OF THE CLIMATE CHANGES IN ROMANIA

The social-economic implication of climatic changes in Romania are analysed under the following viewpoints: causes and effects; prevention and abatement; adjustment; institutional aspects of environmental management. The main reason of climatic changes is generated by the greenhouse effect (GE) that determines the heating of the terrestrial surface, melt-down of icebergs, tornados, draughts and flooding more frequently and of increasing intensity. These extreme meteorological phenomena determine, over time, increasing human and material losses, which imposes measures with effects on short-, medium- and long-term for diminishing the greenhouse effect in accordance with the commitments and provisions of the Kyoto Protocol and the requirements for the sustainable development of the country. Proposals are made with respect to integrating environmental issues into economic and social development strategies, emphasising the need for increasing environment financing and attaching more importance to the Ministry of Environment which must couple its policy with the acquis communautaire and the EU programme for combating and preventing GE impact.climate changes, environmental management, economic and social development

ECONOMIC EFFECTS OF CEE COUNTRIES INTEGRATION INTO THE EUROPEAN UNION

The integration of Central and Eastern Europe (CEE) countries into theEuropean Union is supposed to bring them significant benefits. Along with the effects comingfrom changes in tariffs, accession to the EU internal market and free labor movement onGDP, consumption and terms of trade, the absorption of EU funds could help the process ofconvergence and catching up. Discussing the results of two "extreme" scenarios (fullabsorption of funds or non absorption at all, assumptions considered as not realistic) by theapplication of HEROM model for Romania, the study attempt to assess the impact of EUstructural funds on foreign trade development, under the circumstances of differentabsorption rates, finding a stronger impact on exports compared with imports. However,adverse effects of the current international financial crisis could occur, affecting also theprospects for the Romanian economy.Economic integration, EU policy of economic and social cohesion, structural funds,absorption capacity, economic development, macroeconomic modeling and forecasting.

CHALLENGES, VULNERABILITIES AND WAYS OF APPROACH IN ROMANIA'S EXTERNAL DEBT SUSTAINABILITY

The notion of a country's external debt, measured by a complex system of static and dynamic indicators, knows a lot of approaches and opinions in the literature, more or less convergent, complementary and advanced in terms of factors. Indicators of the external public and private debt on short, medium and long term provide a snapshot of indebtedness of the country and are the most researched domain in the literature, including national and international financial bodies, which adopt a series of classification criteria of countries in terms of size and dynamics of external debt. In this study, we intend to make an analysis of the volume, dynamics and structure of the current Romania's foreign debt, showing the challenges for national economic policies, present and perspective, the internal and external vulnerabilities and ways of approaching the external debt sustainability. According to the definition given by UNCTAD, a sustainable foreign debt is that level of debt which: - allows the indebted country to pay all current and future debt service without resorting to restructuring or rescheduling;- prevents accumulation of arrears and defaults;- in parallel provides an acceptable level of growth in the lending country. Until recently, Romania was considered a country with a low external debt. Currently, the situation has changed, meaning that this debt, somewhat neglected in the early transition period has become a serious threat to present and future sustainability of economic development in Romania. In general, external debt concerns financial and economic interests of all parties especially creditors and debtors, by the formula "win-win", so that, currently, some countries have surplus of balance of payments, usually the most developed and economically healthy, while others have deficits that, in extreme situations, can lead to inability to pay the debt, which means tough measures and policies, especially for the living standards of many generations of taxpayers.

Technical Change as Exogenous or Endogenous Factor in the Production Function Models. Empirical Evidence from Romania

As technical change is nowadays largely accepted to be an engine of economic growth, researchers have tried to include it explicitly in the economic growth models, either as an exogenous or endogenous factor of influence. Using the framework of the aggregate Cobb-Douglas production function in its classical form, as well as in several refined variants, we estimated the elasticities of production factors for Romania over the 1990-2007 period, finding that technical progress has had a small contribution to the economic growth.technical change, R&D, exogenous and endogenous factors, growth models, Cobb-Douglas production function

FOREIGN DIRECT INVESTMENTS AND DOMESTIC INVESTMENTS IN ROMANIA IN THE ECONOMIC CRISIS PERIOD

Investments represent one of the most important factors of the economic growth as well as of the exit from crisis and economic re-launching. The paper analyzes the investments evolution (foreign and domestic) in Romania under the crisis circumstances, taking into account the main factors of influence. Based on the analysis of Romania’s investment process, in the period 2005-2010, several proposals are made aiming at the improvement of investment mechanisms and their sources of funding, including the increase in Romania’s absorption capacity of EU structural and cohesion funds in the period 2007-2013.investment; economic growth; foreign and domestic investments; economic crisis; sources of funding

ROMANIA IN EU CONTEXT. COMPETITIVENESS AND KNOWLEDGE-BASED ECONOMY

The paper analyses Romania’s competitiveness and knowledge-based economyin an EU comparative context for the 2006-2007 period. The main compared pillar-indices are the following: global competitiveness index;higher education and training; technological readiness; business sophistication; innovation.Each pillar index is disaggregated into several relevant sub indices. Comparisons are madebetween Romania and EU-25, EU-10 (new member states since 2004), Bulgaria and Turkeyon the basis of positions and scores of each country or group of countries, within a totalframework of 131 countries. The size of Romania’s digital divide vis-à-vis EU-25 can beused as a tool for national priority setting and better policies regarding catching up andconvergence processes in digital economy.competitiveness; knowledge-based society; national and international value chains;catching-up; convergence; digital divide; brain drain; knowledge creation, absorption and diffusion.

Romania's Pension System Between Present Restrictions and Future Exigencies

In Romania of today the largest part of available incomes at old age is ensured by pensions, and the most important source is constituted by the public system. The reform of the multipillar type system - is delayed, already regulated but still partially non-operational - is aimed to the youth of today as future or junior contributors to the system. Only young persons under 35 might plan and think about the level and structure of the intended old age pension. Older generations do not have a viable perspective towards financial independence in old age; quite on the contrary they are faced with far more limited options, which include: - participation to the public system, but the expected pensions shall be comparatively far more diminished (in accordance with estimates, the transfer rate in the public system shall be substantially diminished); - the contribution to funded private systems, but on a pretty high background of uncertainty - distrust against market operators, diminished possibilities of contribution due to low incomes, low estimated rates of profitability (for shorter contribution' periods); - The recourse to specific social assistance services for the third age as addition is more a desiderate than an alternative, Romania having a lot more to achieve in this sense. The projected system is not adequate for persons with low incomes or for the medium term future pensioners.

ECONOMIC CONTRIBUTION OF COPYRIGHT-BASED INDUSTRIES AND IMPACT ON EMPLOYMENT AND PERFORMANCE INDICATORS IN KNOWLEDGE-BASED SOCIETY DEVELOPING IN ROMANIA

The economic dimension of copyright-based industries sector in Romania is becoming of higher interest, on the one hand, for policy-makers taking into consideration its increasing contribution to GDP, employment, foreign trade and investment and, on the other hand, as a multidimensional vector for social inclusion, increasing self-confidence, supporting better education in a globalised and multicultural world.The opening of the Romanian economy and society has contributed to higher employment in the creative activities. The new jobs - “high-knowledge jobs” in creative activities or in “non-creative industries” – have several features that could support higher performance. We underline the size and features of employment in the copyright-based industry sector and in core activities in Romania and some performance of labour force. On one hand, press freedom, the increase in the role of civil society, the elimination of censorship represented positive influence factors for new jobs creation in the cultural industries. In this way, the copyright-based industries have become a factor of tension reduction and increased flexibility on the labour market. On the other hand, there are big differences regarding the value of the operational profit per employee and its evolution in time among the core component industries. The analysis of the core copyright industries with respect to the size and evolution of the operational profit per employee, both in the overall sector and the component industries, led us to an interesting and useful classification of the core industries which could be helpful for better decision-making and copyright industries policies.copyright-based industries, cultural-creative industries, employment, high-knowledge jobs

THE IMPACT OF GLOBAL CRISIS ON ROMANIA’S ECONOMIC DEVELOPMENT

The world is passing through the most difficult economic and financial crisis inthe history, which severely affects its stability in the long term, risking an uncontrolled slideinto chaos and uncertainty. The housing market crisis emerged in the United States in July2007, due to multiple interferences generated by the globalization, has spread to otherregions, triggering the world economy into recession. The study is trying to present the maincauses and characteristics of the crisis, with special attention to its impact on Romania, whichhas witnessed a severe economic downturn in the first half of 2009, registering a sharpdecline in industrial production, construction sector, exports and also in the lending activity.To deal with high budget deficit and liquidity pressures in the short term a financingagreement with international organizations has been concluded. But, in the long term, theexternal debt burden is increasing, the sustainable development of Romania facing new risksarising from both the global crisis and the internal vulnerabilities.international financial crisis, global recession, causes and effects of the crisis, anti-crisisremedies, external debt, sustainable development.