Estimating contribution of factors to long-term growth in Romania

Abstract

The paper analyses the dynamics and structure of GDP in Romania during the transition period. Starting from the classical Cobb-Douglas production model, the paper investigates different scenarios for the Romanian economy on the basis of different assumptions regarding the model’s parameters. The adapted model also tries to cover the implications of some peculiarities of the Romanian transition economy, such as a large agricultural sector.Cobb-Douglas production function; total factor productivity; long-term economic growth; macroeconomic forecasting