Chitea, Mihai Alexandru

Rosu, Elisabeta Stefania

Tudor, Monica Mihaela

Research Institute of Agricultural Economics

COMPETITIVENESS AND INNOVATION IN RURAL ROMANIAMonica Mihaela TUDORMihai Alexandru CHITEAElisabeta Stefania ROSUInstitute of Agricultural Economics – Romanian AcademyBucharest, Romania14th ERDN ConferenceBudapest, 3-5 October 2016Content 1. Romanian regional competitiveness – an overview -2. Working hypothesis 3. Methodological approach  - Rural competitiveness index –4. Rural competitiveness at Romanian NUTS 3 level regions5. Concluding remarks1. Romanian regional competitiveness – an overview – (1/3) the ability of regions to promote, attract and support economic activity so that their population to attain and quip a higher standard of livingREGIONAL COMPETITIVENESSRegional approach 1. Romanian regional competitiveness – an overview – (2/3)Regional Competitiveness Index (RCI)methodology developed by the EC built on 3 pillars(Joint Research Centre - EU Regional Competitiveness Index): -Basic pillars: quality of institutions, macro-economic stability, infrastructure, health & basic education-Efficiency pillars: Higher education, labour market efficiency, market size-Innovation pillars: technological readiness, business sophistication, innovation- 7 from 8 NUTS 2 regions of Romania - lowest level of RCI compared with the EU average- only for Bucharest region (capital city included), RCI is close to the EU average1. Romanian regional competitiveness – an overview – (3/3)3 Romanian NUTS 2 regions are in the bottom 10 EU regions rankingaccording to RCI 2. Working hypothesis I. The competitiveness of the predominantly rural regions in Romania is lower than the national averageII. The weak development of the RDI sectors at regional level significantly impacts the competitiveness levelLEVEL OF STUDY : NUTS 3NUTS 3 level regions are more homogenous The disaggregated analysis at NUTS 3 level:-could better explain the territorial disparities &- enable better targeted for public interventionwhy ?(….why NUTS 3 ?)Importance of predominantly rural (PR) and intermediate (INT) NUTS 3 regions in Romania and across groups of European countries- Romania is one of the most rural countries in the EU(from 42 NUTS 3 regions, only 2 are classified as “predominantly urban”)Predominantly rural (PR)Intermediate (INT)Predominantly urban (PU)Urban – Rural typology of NUTS 3 regions in Romania3. Methodological approach-Rural competitiveness index-Calculation formula for the competitiveness indicators (rural competitiveness index components) Xi = 100 (xi / X) / (pi / P), where:xi – the value of variable at NUTS 3 level X – the value of variable at national level pi – the number of inhabitants at NUTS 3 level P – the number of inhabitants at national level O. Mikuš, R. Franić and I. Grgić (2012) The evaluation of rural competitiveness in creating a policy of rural development in Croatia, Journal of Food, Agriculture & Environment, (measure the territorial disparities in regional competitiveness)We adopted this model according to the available data in Romania at NUTS 3 level Group / IndicatorsGroup I.– Human resources1.1. Employed population (thou. pers.) 1.3. Young population 0-20 years (pers.)1.2. Population with higher education (pers.) 1.4. Population density (pers./km2)Group II.– Situation of the non-agricultural sector economy2.1. Turnover (thousand euro) 2.3. Density of active local units (no. of active local units /1000 inhabitants)2.2. Value of exports (thou. euro) 2.4. Net average wage (euro)Group III. - Situation of agricultural sector economy3.1. Average farm size (ha UAA /farm) 3.4. Density of active local units (no. of active local units /1000 inhabitants)3.2. Turnover (thousand euro) 3.5. Net average wage (euro)3.3. Value of exports (thousand euro)Group IV. – Specialization and innovation4.1. Share of population employed in non-agricultural sectors 4.3. Share of crop production value in total agricultural production value4.2. RDI employees / 10,000 civilian employeesAdapted competitiveness evaluation matrix at NUTS 3 level4. Rural competitiveness at Romanian NUTS 3 level regions (1/4)Group I – Human resources4. Rural competitiveness at Romanian NUTS 3 level regions (2/4)Group II – Situation of the non-agricultural sector economyGroup III – Situation of the agricultural sector economy4. Rural competitiveness at Romanian NUTS 3 level regions (3/4)Group IV – Specialization and innovation4. RCI (4/4)Group / Indicators Rural competitiveness indicators (Xi) for:INT PRGroup I. – Human resourcesEmployed population (thou. persons) 97.67 94.67Population with higher education (pers.) 102.52 68.60Young population 0-20 years (pers.) 98.93 105.61Population density (pers./km2) 110.76 75.06Average of indicators in Group I (SI1) 102.47 85.98Group II. – Non-agricultural sector economy situationTurnover (thousand euro) 79.81 41.47Value of exports (thousand euro) 139.65 71.75Density of  local active units (no. of  local active units / 1000 inhabitants)99.94 69.21Net average wage (euro) 94.47 82.24Average of indicators in Group II (SI2) 103.47 66.17Group III – Agricultural sector economy situationAverage farm size  (ha UAA /farm) 102.73 98.36Turnover (thousand euro) 85.57 107.69Value of exports (thousand euro) 71.55 42.29Density of local active units (no. of  local active units /1000 inhabitants)97.68 115.47Net average wage (euro) 100.71 96.83Average of indicators in Group III (SI3) 91.65 92.13Group IV– Specialization and innovation% employed pop. In non-agricultural sectors 102.11 86.01No. of RDI employees in 10000 employees 102.44 21.69% crop production value in total agricultural production value 99.25 100.31Average of indicators in Group IV (SI4) 101.27 69.34Rural competitiveness index (RCI) 99.71 78.40Rural competitiveness index (RCI)- predominantly rural (PR) - intermediate (INT) regions5. Concluding remarksI. In Romania the economy of the predominantly rural regions is less competitive than the economy of the intermediate regions.II. The factors that largely contribute to the amplification of territorial rural competitiveness disparities between the two categories of NUTS 3 regions in Romania are the following:- size of staff involved in RDI activities - that contributes to the comparative advantage of the access to innovation- value of exports, both in the non-agricultural and agri-food economy, which certifies the competitive advantage of the regional economies on the world markets.Thank you for attention !Monica Mihaela TUDOR – monik_sena@yahoo.comMihai Alexandru CHITEA - mihai_chitea@yahoo.comElisabeta Stefania ROSU - betty_rosu@yahoo.com

Competitiveness and innovation in rural Romania

http://repo.aki.gov.hu/2705/1/S7_1_Tudor_Chitea_Rosu_ERDN2016_Budapest.pdf

Competitiveness and innovation in rural Romania

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