The perspective of spatio-temporal variability of Romanian economy in European space

Interrelation of economic and financial phenomena and processes, characterized by varying degrees of intensity of events in time and space, generates, sometimes, difficulties for public authorities of all times, both economic and noneconomic nature. Disparities between countries and economic disparities and also the impact of adverse shocks on the economy represent in recent years an intense topic of debate for researchers and professionals, making up the analysis of their economic theories that shape it in time and space dynamics of various economic indicators. Since every economic size is characterized as spatial and temporal dimensions and relations of dependency with other economic indicators, the statistical approach to spatial and temporal variability of the Romanian economy, sought to highlight this trend compared with the EU, as level of development, we proposed using an index composed Romania - European Union. Outcomes show that the Romanian economy is not prepared to face competitive pressure from European Union forces, is still facing eternal problem of solving cyclical temporary shocks.economic and financial phenomena, economic disparities, cyclical temporary shocks

New approach of measurement methods and forms of tax policy effects in Romania

The complexity of decision making on taxes, determined by the evolution of economic variables, government objectives and the diversity of fiscal techniques used vary from country to country, therefore we can not define general concepts that are universally accepted or acceptable, regarding the effects generated by them. The effects of fiscal policy are varied, depending on their expression are microeconomic and macroeconomic effects, which are interrelated in the formation and modification of behavior of economic agents, both economically and socially, leading to psychological, economic, social, political, environmental and other effects, on different time horizons. Therefore, achieving a classification of the effects of tax policy is based almost impossible and difficult, requiring a large amount of knowledge, scientific insight and sound impressive volume of comments. The aim of this paper is to give a new classification criteria of the effects of taxation, following strictly the direction of evolution of variables, namely: economic effects, socio-economic effects and political effects.tax policy, measurement methods, tax incidence

Romanian Public Debt in Interwar Period and Between 1948-1989

In analyzing the public debt problem, there is an analytic presentation and also a historic presentation. The present project is a combination between the two modalities, emphasizing the institutional side, where the historic presentation is made by underlining the changing moments in history. The unitary characteristic of the public debt should be taken into account; also, there is the option between analyzing the public debt in the larger sense and in the unitary sense. In the larger sense, the public debt includes also the indebt of the country’s financial institutions and the local authorities. We will analyze, out of the larger public debt problematic, the ones regarding the loans contracted and managed by the Ministry of Finance, which are considered to be part of the public debt. For understanding the legislative environment of constituting and managing Romania’s public debt, some notes are necessary to be made. First, even the expression of legislative environment has to be understood starting from the premises that for the entire analyzed period, Romania had democratic institutions, which acted and manifested according to the modern world’s accepted rules. A problem involved by the analysis of the content regards the up to date theme, a discussion about the public debt in Romania. Initially we started from the idea that the thematic is up to date through the clarifications that can be brought by our own past experience to serve the present. There are also other arguments: we noticed the necessity of accuracy, the terminology precision, there being lots of gaps in understanding the public debt mechanism. The minimum explanation of public debt domain is necessary, being known that the terminology used has changed its meanings in time, and this era’s approach of the terminology gives us the opportunity to understand the public debt phenomenon in that period of time. Present governing works would be more efficient, more precise and more accurate if past experience would be considered.

Quality of Government and Well-being: Assessing the Gap in European Countries

This paper analyses the influential factors which determine the differences between social and economic dimensions in the European Union. The main objective was to construct a composite indicator of the quality of government and citizens’ well-being, and rank the EU countries based on it. The dataset refers to variables specific to economic and social wellness (latest year available is 2015), focusing on both, the objective and subjective dimension of the governance and well-being. The results obtained indicate that the countries with the highest performance in terms of the quality of government and citizens’ well-being are Denmark, Sweden, Finland, followed by Austria and the Netherlands. Differences to the rest of the EU member states are based on economic and social policies, as these countries have the highest employment rates and social protection expenditures, focusing on the risks related to unemployment, social exclusion, invalidity or aging to increase citizens’ overall life satisfaction

A question of causality between political corruption, economic freedom and economic growth in Europe

Economic, cultural, social, psychological, political, administrative and religious effects of corruption are manifested by functional, political and moral degradation of local public authorities, which is a result of the expansion of political corruption, by reducing the transparent and accountable political power or by social tensions and increasing impoverishment of the population. In the executive activity, corruption has an effect on the reduced quality of public administration, the existence of an informal decision-making system and close links between organized crime, corrupt officials and politicians. Thus, outwardly effects of corruption, even in international relations, is manifested by the conduct of incompetent, irresponsible, provocative and subjective – conventional behavior of persons in positions of responsibility which, in dealing with foreign partners, primarily promotes personal and corporate interests against national interests, which, inevitably undermines the country's image and credibility as a partner in international relations. This paper tries to show a more accurate picture of the extent of corruption in Europe, through individual analysis of indicators measuring corruption and by quantifying the relation between corruption and political, administrative and economic determinants factors, through a regressive “pool data” model. For a fine approximation of the decision-making mechanism, in accordance with the policies they generate, there is a necessity the knowledge and understanding of how the political elements are transformed into real elements to measure their incidence. This paper adds to the empirical literature on the relationship between corruption and economic growth by incorporating the impact of economic freedom

A question of causality between political corruption, economic freedom and economic growth in Europe

Economic, cultural, social, psychological, political, administrative and religious effects of corruption are manifested by functional, political and moral degradation of local public authorities, which is a result of the expansion of political corruption, by reducing the transparent and accountable political power or by social tensions and increasing impoverishment of the population. In the executive activity, corruption has an effect on the reduced quality of public administration, the existence of an informal decision-making system and close links between organized crime, corrupt officials and politicians. Thus, outwardly effects of corruption, even in international relations, is manifested by the conduct of incompetent, irresponsible, provocative and subjective – conventional behavior of persons in positions of responsibility which, in dealing with foreign partners, primarily promotes personal and corporate interests against national interests, which, inevitably undermines the country's image and credibility as a partner in international relations. This paper tries to show a more accurate picture of the extent of corruption in Europe, through individual analysis of indicators measuring corruption and by quantifying the relation between corruption and political, administrative and economic determinants factors, through a regressive “pool data” model. For a fine approximation of the decision-making mechanism, in accordance with the policies they generate, there is a necessity the knowledge and understanding of how the political elements are transformed into real elements to measure their incidence. This paper adds to the empirical literature on the relationship between corruption and economic growth by incorporating the impact of economic freedom

A question of causality between political corruption, economic freedom and economic growth in Europe

Economic, cultural, social, psychological, political, administrative and religious effects of corruption are manifested by functional, political and moral degradation of local public authorities, which is a result of the expansion of political corruption, by reducing the transparent and accountable political power or by social tensions and increasing impoverishment of the population. In the executive activity, corruption has an effect on the reduced quality of public administration, the existence of an informal decision-making system and close links between organized crime, corrupt officials and politicians. Thus, outwardly effects of corruption, even in international relations, is manifested by the conduct of incompetent, irresponsible, provocative and subjective – conventional behavior of persons in positions of responsibility which, in dealing with foreign partners, primarily promotes personal and corporate interests against national interests, which, inevitably undermines the country's image and credibility as a partner in international relations. This paper tries to showa more accurate picture of the extent of corruption in Europe, through individual analysis of indicators measuring corruption and by quantifying the relation between corruption and political, administrative and economic determinants factors, through a regressive “pool data” model. For a fine approximation of the decision-making mechanism, in accordance with the policies they generate, there is a necessity the knowledge and understanding of how the political elements are transformed into real elements to measure their incidence. This paper adds to the empirical literature on the relationship between corruption and economic growth by incorporating the impact of economic freedom

Does the covered interest rate parity fit for China?

This paper aims to investigate whether the covered interest rate parity (C.I.P.) holds or not through examining the dynamic link between nominal interest rate differential (N.I.R.D.) and nominal exchange rate (N.E.R.) in China. With economic transitions and structural changes existing, we find that the C.I.P. condition using full-sample data does not always hold. Consequently, we apply a time-varying rolling-window approach to revisiting the dynamic causal relationship, and the results show that N.I.R.D. has both positive and negative impacts on N.E.R. in several sub-periods, and in turn, N.E.R. has the same effects on N.I.R.D. for China. Exchange regime reform, currency-specific market risk and capital control are considered in explaining the deviations in some subsample periods. Therefore, empirical results have important implications for distinguishing factors that bring about the C.I.P. deviations and further offers policy suggestions for the Chinese monetary authorit

RELATIVE EFFICIENCY OF MONETARY AND FISCAL POLICIES: THE CASE OF ROMANIA

In this paper, it is investigated whether monetary or fiscal policy is more effective on real activity in Romanian economy over the period 2004:IV-2011:II. Empirical findings obtained from OLS and causaly estimations support the existence of a strong relationship between fiscal policy instruments and real economic activity. Besides, there exists no corelation between EU membership of Romania and their economic performance. Findings also indicate 2008 financial crisis effects Romanian economy in a highly negative way. Hence, it can be concluded that fiscal policy is more effective rather than monetary policy in both short and relatively long run in Romania