An Assessment of the Current Account Sustainability in Romania – An Inter-temporal Perspective

This paper assesses the sustainability of the CA deficit in Romania by estimating its structural component, based on an inter-temporal perspective. Using a large sample of panel data, we estimated long term relationships for the CA deficit and its fundamentals. The main conclusion of the paper is that there is an excessive CA deficit which should be adjusted. The results are showing that the structural CA could range between 6.3% and 10.9% of GDP, depending on the model used and the econometric procedure. Another important result of the paper is that the main drivers of the CA deficit in Romania, as well for other transition countries of Europe, are the economic convergence factors.structural CA deficit, convergence, relative income, Ricardian equivalence

University rankings – a guide to choose a university?

In a more and more global world, universities compete for both students and faculty staff. Do university rankings offer a good perspective when it comes to choosing a university, as a student or university professor/researcher? This paper presents an analysis of well-known university rankings, trying to answer to the above mentioned question. It also presents an alternative to such rankings, namely intellectual capital evaluation models

An assessment of the current account sustainability in Romania

This paper assesses the sustainability of the CA deficits in the New Member States (NMS) of European Union by estimating its structural component based on fundamentals. Using a large sample of panel data, we estimated long term relationships for the CA deficit and its fundamentals using two methods from the literature. The main conclusion of the paper is that in some countries there is an excessive CA deficit which should be adjusted. In the case of Romania, the results are showing that the structural CA could be between 6.3% and 10.9% of GDP, depending on the model used and the econometric procedure. Another important result of the paper is that the main drivers of the CA deficits in NMS are the economic convergence factors.structural CA deficit, convergence, relative income, Ricardian equivalence

Similarity of Supply and Demand Shocks Between the New Member States and the Euro Zone. The Case of Romania

This paper assesses the correlation of supply and demand shocks between New Member States (NMS), including Romania, and the Eurozone. Using a structural VAR approach, we estimated the similarity between demand (both nominal and real) and supply shocks between NMS and the Eurozone, showing that the demand shocks are still negatively correlated with the Eurozone for some NMS, including Romania. Also, using a moving window, we estimated that the correlation of shocks increased over time, especially in the case of supply shocks. Even for some core members of the Eurozone, we find that the demand shocks seem to be idiosyncratic. The main conclusion of our paper is the fact that Romania, as well as some other NMS countries, still need time to become more synchronized and to avoid the occurrence of asymmetric shocks once they become members of the Eurozone.optimal currency area, supply and demand shocks, business cycle synchronization, euro adoption, convergence

University rankings – a guide to choose a university?

In a more and more global world, universities compete for both students and faculty staff. Do university rankings offer a good perspective when it comes to choosing a university, as a student or university professor/researcher? This paper presents an analysis of well-known university rankings, trying to answer to the above mentioned question. It also presents an alternative to such rankings, namely intellectual capital evaluation models.university rankings, indicators, intellectual capital

Intelectual capital (IC) models – a comparative approach

This paper presents a comparative analysis of some intellectual capital models. The analysis is based on four criteria: the main concepts and classifications on which the models are based on, the analysis of functional characteristics, the analysis of operational performances, limitations.intellectual capital, measurement, evaluation, models

Fiscal discipline and economic growth – the case of Romania

The fiscal and budgetary policy should play a key role to alleviate the impact of the business cycle on the real economy. Procyclical fiscal policy is particularly undesirable in developing countries, as it not only exacerbates the business cycle, but also the high output volatility hurts the poorest people with low safety net. This paper assesses the structural budget deficit in Romania during 2000-2009 and evaluates the role of the fiscal policy during the business cycle. The paper concludes that the fiscal policy in Romania was highly procyclical, exacerbating the economic cycle. In order to escape from this procyclicality, Romania needs deep structural reforms in order to restore the sustainability of the public finances and put Romania on a sustainable growth path.structural budget balance, procyclicality of fiscal policy, fiscal discipline

Fiscal discipline and economic growth – the case of Romania

The fiscal and budgetary policy should play a key role to alleviate the impact of the business cycle on the real economy. Procyclical fiscal policy is particularly undesirable in developing countries, as it not only exacerbates the business cycle, but also the high output volatility hurts the poorest people with low safety net. This paper assesses the structural budget deficit in Romania during 2000- 2009 and evaluates the role of the fiscal policy during the business cycle. The paper concludes that the fiscal policy in Romania was highly procyclical, exacerbating the economic cycle. In order to escape from this procyclicality, Romania needs deep structural reforms in order to restore the sustainability of the public finances and put Romania on a sustainable growth path.structural budget balance, procyclicality of fiscal policy, fiscal discipline

Balassa-Samuelson effect in Romania

This paper deals with the Balassa-Samuelson effect in Romania. Using the cointegration technique, the main conclusions of the paper are that in the period 1998-2006 the average annual rate of inflation generated by the Balassa-Samuelson effect in Romania was between 0.11% in 2005 and 0.9% in 2000 in the case of the classical model (0.4% on average); in the extended model, which is considered more appropriate by us, the impact on inflation is higher and ranges between 0.69% in 2005 and 4.76% in 2000 (2.18% on average in 1998-2006). Regarding the impact of the Balassa-Samuelson effect on the real appreciation of the exchange rate, the results of the paper revealed that the real appreciation of the exchange rate due to the Balassa-Samuelson effect was between 0.24% and 1.94% in the case of the classical model and between 0.73% and 5.06% in the case of the extended model (2.31% on average in 1998-2006). The paper revealed also that the regulated prices and the price convergence play an important role in the Balassa-Samuelson effect in Romania.Balassa-Samuelson effect, convergence, relative prices, regulated prices

Euro adoption in Romania

This paper assesses the level of readiness of Romania to adopt euro, based on nominal and real convergence criteria evaluation. We used the optimal currency area criteria in order to assess the real convergence process in Romania. The main conclusion of the paper is that more progress is necessary in terms of nominal convergence criteria as well as real convergence criteria in order to prepare the economy to successfully participate in a monetary union.euro adoption, convergence, business cycle synchronization