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

Ioan TALPOS

Nicoleta MOLDOVAN

Oana Ramona LOBONT

English

Research Papers in Economics

Year IX, No. 11/2010                                                                                                    21 
Disparities between countries 
and economic disparities and also the 
impact of adverse shocks on the 
economy in recent years is an intense 
topic of debate for researchers and 
professionals. Framework for analysis of 
these phenomena is the economic 
theories  that shape the temporal and 
spatial dynamics of various economic 
indicators. Each economic size is 
characterized by spatial and temporal 
dimensions and relations of dependency 
with other economic indicators. 
Given the complexity of 
functional relations that describe the 
economic indicators, have been 
developed a number of tools for analysis, 
and also the statistical and econometric 
models to study spatial and temporal 
evolution of different economic size. 
Romania had made significant progress 
in the analysis of national accounts by 
accounting rules, methods for estimating 
treatment seasonality and consistency 
between quarterly and annual accounts, 
in essence, they found "solutions" to 
provide comprehensive macroeconomic 
information and detailed in terms of 
short-term behavior of the economic 
system, both financially and legally non-
financial, of states of the world.  
After 1989, it was necessary to 
ensure comparability of macroeconomic 
aggregates who reflects the Romanian 
economy and the economy of other 
countries and especially with EU 
countries by introducing the European 
System of National Accounts (ESA95). In 
the ranking done by the World Economic 
Forum 2009-2010, based on Global 
Competitiveness Index, Romania ranked 
in 2007, was 72 of 134 countries, in 
2008, ranked 68 out of 133 countries 
(Moldova was excluded from statistics 
because of lack of official data), 
respectively, in 2009, ranked 64 out of 
133 countries in terms of highlighting key 
factors for boosting productivity and 
competitiveness, grouped into nine 
categories: 1) institutions, 2) 
infrastructure, 3) the macroeconomic 
environment, 4) health and primary 
education, 5) universitary education and 
training, 6) market efficiency, 7) 
technological level; 8) business level, 9) 
innovation, and ranked 42 in section 
development, characterized by a GDP 
amounting to 165,983,000 million $ at 
current prices, with a population of 21.5 
million people, which gives them a 57 
ranked instead of $ 7,697.2 per capita 
GDP at current prices per capita. 
   
 
 
THE PERSPECTIVE OF SPATIO-TEMPORAL 
VARIABILITY OF ROMANIAN ECONOMY IN EUROPEAN 
SPACE 
 
Prof. Ioan TALPOŞ, PhD 
Assist. Prof. Oana Ramona LOBONŢ, PhD 
Assoc. Prof. Nicoleta Moldovan, PhD 
West University of Timişoara 
 22                                                                        Finance – Challenges of the Future 
 
 
Graph no. 1. Trend in share of GDP per capita in Romania, EU average 27 
 
During the reported period 1997-
2008, GDP per capita, although 
decreased compared to EU-27 average, 
in a number of countries including 
Belgium, Denmark, Germany, Italy, 
Sweden continues to be above that 
average. In other countries such as 
Austria, Holland, Finland, the United 
Kingdom have been small fluctuations, 
while belonging to the former Communist 
bloc countries Bulgaria, Latvia, Hungary 
and Romania have registered significant 
increases. 
Romania, although it has 
recovered more than 25%, continues to 
be the second smallest among the EU 
countries before Bulgaria and Turkey, 
with a GDP per capita from 2008 PCS, 
which represent 45.8% of the EU-27, see 
so that growth of GDP per capita in our 
country was achieved due to the increase 
on account of total GDP and population. 
We believe that our country's integration 
into EU structures has increased the 
chances and opportunities and stressed 
the need, the advantage of being a full 
member, to expand  the effort to 
modernize its economy and reduce the 
gaps that still separate us from other 
countries. 
We base our claim by analyzing 
the evolution of Romanian economy 
compared to the EU through economic 
indicator growth rate of GDP per capita. 
Motivation for choosing this indicator is 
that any economic impact, or any crisis, 
is reflected in the growth rate of GDP, 
and this presents an analysis of changes 
in real interest rate of GDP growth over 
time and space. Analysis period 1999-
2008 is the time interval is chosen not by 
chance, as for Romania, since 1999, the 
growth rate of GDP is one indicator 
consistently-stable without 
disproportionate variations. 
 
 
Graph no. 2. Dynamics of real output per capita Year IX, No. 11/2010                                                                                                    23 
 
Real GDP growth in EU-27 
countries recorded an average annual 
rate of 2% versus 6% in our country, but, 
despite a stronger economic growth 
(doubling GDP per capita in the last five 
years) than that recorded by EU-15 over 
the past decade, new member states 
Bulgaria and Romania are only about 
50% of the EU, the GDP per capita in 
purchasing power parity. In recent years, 
Romania has one of the highest growth 
rates in Europe, however the gap 
between Romania and the European 
Union (EU) remains significant. Increase 
of 7.9% of gross domestic product in 
2006, it enrolled in the general process of 
growth began in 2000 and the latest 
results recorded Romania was by 4.8 
percentage points above the EU-27 
average (3, 1%). 
But be noted that the process of 
economic growth was mainly supported 
by consumption and investment, and 
although the period 2001-2007 average 
annual growth rate was about 6% due to 
construction (8.2%), industry (5 4%) and 
services (5.8%), investments were 
recorded (for the third consecutive time) 
the fastest growing components of 
demand since 2008, the  Romanian 
economy is affected by the economic 
crisis. Moreover, historical experience 
shows that in the world, there are very 
few economies have managed to grow 
consistently over 5% per year long term. 
For example, during 1990-2008, only 
seven countries have managed this 
performance, but none of them had a 
manpower disadvantage in aging and/or 
mitigation, phenomena which are found 
in Romania and which are characteristic 
of developed countries. 
We propose a statistical 
approach to spatial and temporal 
variability of the Romanian economy, 
sought to highlight this trend compared 
with the EU, the level of development, 
based on composite index RO/EU 
( RO/EU
I ), using a methodological 
elements such as concept of factor and 
matrix and its properties: 
detM Ro/EU I =   (1.) 
where: 
RO/EU
I = composite index RO/EU 
detM = matrix determinant value M; 
 


 


=
22 21
12 11
a a
a a
M =  


 


2
1
v
v


= Matrix A (a 
matrix  2 2× , and  ij a  matrix coefficients, 
with i-1,2 and j = 1,2) 
1 v

  and  2 v

  = recorded growth rates for 
GDP per capita each year for two spatial 
entities, ie spatial variation. 
So if  0 Ro/EU I =   then the 
growth rate of GDP per capita in 
Romania is amended, in more or less the 
same amount, next year as the change in 
same direction or in opposite, the growth 
rate of GDP per capita for EU.
 
Projection of gross domestic product per capita development
 1
Indicators 
 
                      Table no. 1. 
2001  2007  2013  2020 
GDP per capita (lei)  5.211  18.790  43.480  76.670 
GDP per capita (euro)  2.002  5.630  13.175  23.230 
GDP per capita (PPS)  5.400  10.000  20.800  36.700 
- % from EU-27 average  27,8  42,1  60  80 
 
                                                 
1 Comisia Naţională de Prognoză, Prognoza de toamna pe termen lung, 28 noiembrie 2008. 24                                                                        Finance – Challenges of the Future 
Growth rate of GDP per capita and the determinant value 
Table no. 2.a 
 
- Continued 
Table no. 2.b 
 
The index  RO/EU
I takes a value 
close to zero only in two cases, ie 
calculated for 2005-2006 and 2011-2012 
respectively, accounting for almost the 
same value, therefore, growth rates of 
GDP per capita of the two spatial entities 
either remained constant, or have 
changed in proportion. For other years 
can be seen that the value of determinant 
is diffrent from zero, i.e. the vectors have 
different directions, therefore, the growth 
rates of GDP per capita of the two spatial 
entities considered have evolved 
differently from one year to another. The 
largest variation between the two spatial 
entities calculated for a given period is 
given by a high value of the determinant 
(in absolute value), so, we find that the 
highest values recorded are in 2001 
compared to 2000 in 2005 compared to 
2004, in 2008 compared to 2007 and in 
2009 over 2008. Considering the index 
value in 2012, found that only since this 
year we can talk about acrossing 
economic crisis, namely, the coordination 
of measures taken by the two space 
entities, Romania and the European 
Union. 
 
 
 
Graph no. 3. Graphical representation of vectors determinant 
 
Indicators  1999  2000  2001  2002  2003  2004  2005  2006  2007 
Growth rate of GDP per capita in 
the EU (27 countries) 
2,9  3,6  1,7  1  0,9  2  1,5  2,8  2,4 
Growth rate of GDP per capita in 
Romania 
-1  2,5  5,8  8  5,5  8,8  4,4  8,1  6,4 
RO/UE I
  -  -10,85  -16,63  -7,8  1,7  3,08  4,4  0,17  1,52 
Indicators  2008  2009*  2010* 
 
2011* 
 
2012* 
 
2013* 
Growth rate of GDP per capita in the EU (27 
countries) 
0,4  -4,2  -0,3 
4,9  7,2  5,3 
Growth rate of GDP per capita in Romania 
7,3  -3,8  0,2 
1,7  2,3  2,5 
RO/UE I
  -14,96  -29,14  1,98  1,49  0,97  -5,81 Year IX, No. 11/2010                                                                                                    25 
Another interpretation of the 
index  RO/EU
I shows that the factors 
behind changes in the evolution of the 
growth rate of GDP per capita in a spatial 
entity, have not influenced the growth 
rate of GDP per capita of the other entity: 
-  for a regional economic impact, 
were not affected simultaneously the two 
entities; 
-  for a global economic shock, a 
spatial entity is affected to a greater 
extent than the other entity. 
Taking into account the evolution 
of Romanian economy in terms of 
developments in macroeconomic 
indicators, we consider that the cost-
benefit analysis should be generalize to 
any economic policy decision, because 
no assessment of its impact is difficult to 
quantify the welfare losses due to 
deviations from the desired objectives. 
Romania's integration into global games 
is requiring speedy completion of the 
internal processes of transition and 
completion of convergence with the 
European economy and society project. 
Romania's integration into the European 
Union do not justify their legitimacy and 
ensure social grip that does not have the 
purpose functionalization of the trinomial: 
growth - development – modernization.  
Currently, the economic horizon has 
become significantly darker, whereas the 
EU economy is affected by the financial 
crisis that has intensified during the 
autumn of 2008, taking a toll on business 
and consumer confidence. 
  For implementation of economic 
policies is needed more consistency, 
macroeconomic policies should be based 
more on rules than on discretionism,  it  
must establish clear whether shocks 
affecting the Romanian economy are 
temporary or permanent, it must be 
increased synchronization of 
macroeconomic policy makers, requires 
a rigorous institutional arrangement 
between the National Bank and 
government to synchronize the effects of 
monetary and fiscal policies, and it must 
be awareness that "fine tuning" of fiscal 
policy is impossible because such policy 
has a high internal gap. (Dinu M., Socol 
C, 2006) 
Outcomes show that the 
Romanian economy is not prepared to 
face competitive pressure from European 
Union forces, is still facing eternal 
problem for solving the cyclical temporary 
shocks due to Monitoring Reports 
prepared by international organisations 
and it continues to favor imports of 
solutions that give shape to form but not 
substance. 
   
 
 
 
Dinu M., Socol C.  O  schiţă  a  ieşirii  din  periferie,  Simpozionului AGER –  România în 
Uniunea Europeană. Potenţialul de convergenţă, Bucureşti, 2006; 
Jaba Elisabeta, 
Balan Brigitte, 
Botezat Alina 
A statistical approach of spatial-temporal variability of a phenomenon, 
using a RO-EU composite index, www.asecib.ase.ro/simpozion/2009, 
2009; 
Mankiw G.  Principles of Macroeconomics, ediţia a 4-a, Thompson South-Western 
Publisher, 2006; 
*****  Comisia  Naţională  de  Prognoză,  Prognoza de toamna pe termen 
lung, Comisia Naţională de Prognoză, 2008. 
 
 
 
 
 
 
 
REFERENCES 
 26                                                                        Finance – Challenges of the Future 
Correction 
 
Correction for “The perspective of spatio-temporal variability of Romanian economy in European space” 
by Ioan TALPOS, Oana Ramona LOBONT and Nicoleta MOLDOVAN, 
which appeared in Finante - provocarile viitorului (Finance - Challenges of the Future), 2010, vol. 1, 
issue 11, pages 21-25, http://feaa.ucv.ro/FPV/011-03.pdf 
 
The authors note the following:  
 
1. We wish to bring to your attention an issue regarding our publication at page 21, in the introduction, 
were it is the text: „Disparities between countries and economic disparities and also the impact of adverse 
shocks on the economy in recent years is an intense topic of debate for researchers and professionals. 
Framework for analysis of these phenomena is the economic theories that shape the temporal and spatial 
dynamics of various economic indicators. Each economic size is characterized by spatial and temporal 
dimensions and relations of dependency with other economic indicators. 
Given the complexity of functional relations that describe the economic indicators, have been developed a 
number of tools for analysis, and also the statistical and econometric models to study spatial and temporal 
evolution of different economic size.” 
We want to bring in your attention that this introduction, and the subject of the paper, was an inspired 
starting point by the approach of Jaba Elisabeta, Balan Brigitte, Botezat Alina in A statistical approach of 
spatial-temporal variability of a phenomenon, using a RO-EU composite index, 
www.asecib.ase.ro/simpozion/2009, 2009  
Therefore we belive that it should be reflected in the text quoting this source: 
Disparities between countries and economic disparities and also the impact of adverse shocks on the 
economy in recent years is an intense topic of debate for researchers and professionals. Framework for 
analysis of these phenomena is the economic theories that shape the temporal and spatial dynamics of 
various economic indicators. Each economic size is characterized by spatial and temporal dimensions and 
relations of dependency with other economic indicators. 
Given the complexity of functional relations that describe the economic indicators, have been developed a 
number of tools for analysis, and also the statistical and econometric models to study spatial and temporal 
evolution of different economic size. (Jaba et al., 2009) 
 
2. We wish to bring to your attention also, the issue regarding our publication at page 23 were it is the text 
„We propose a statistical approach to spatial and temporal variability of the Romanian economy, sought 
to highlight this trend compared with the EU, the level of development, based on composite index RO/EU,  
using a methodological elements such as concept of factor and matrix and its properties” 
We want to bring in your attention that the composite index RO/EU is developed by Jaba Elisabeta, Balan 
Brigitte, Botezat Alina in A statistical approach of spatial-temporal variability of a phenomenon, using a 
RO-EU composite index, www.asecib.ase.ro/simpozion/2009, 2009  
In order to properly highlight in this paper the spatio-temporal variability of the Romanian economy 
compared the EU economy in terms of a composite index, please consider the following change for the 
mentioned text: 
„We propose the statistical approach of the spatial and temporal variability of the Romanian economy, 
sought to highlight this trend compared with the EU, the level of development, based on composite index 
RO/EU, developed by Jaba E. et al, (2009) using a methodological elements such as concept of factor and 
matrix and its properties” 
 
 
 
 
 
We apologize for not properly citing our related work and for not citing earlier work of others. 
Ioan TALPOS, Oana Ramona LOBONT and Nicoleta MOLDOVAN 
 

26 Finance – Challenges of the Future Correction Correction for “The perspective of spatio-temporal variability of Romanian economy in European space” by

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

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