1st issue / July 2013 – The Annals of the University of Oradea. Economic Sciences, Tom XXII -2013
Full Volume 1st issue / July 2013 – The Annals of the University of Oradea. Economic Sciences, Tom XXII -2013
Title: THE EFFECT OF ILLICIT TRADE IN NARCOTICS ON GLOBAL ECONOMY
Author(s): ALASMARI Khaled
Abstract: Illicit markets especially those dealing with narcotics constitute grievous issues to the world’s economies, putting to test global safety, economic progress as well as security and many other aspects. Seemingly, illicit narcotics trade in the last decade – that is 2000 to 2011 underwent a significant boom, resulting from a wide spectrum of illegal drugs such as cocaine as well as heroin among many other hard drugs. In today’s global society, several concerns are emerging on the rise of illicit narcotics trade accompanied with organized crime, chiefly as major hindrances to consistent global economic progress. Apparently, some of the effects of illicit narcotics trade are that; this trade gradually turns upside down business rules, opening way for new unruly market players besides reconfiguring influence in global economics as well as politics. Surprisingly, the revenue from illegal drugs in 2011 alone was roughly 10% of the global GDP. Hence, exaggerating local economies’ incomes and triggering ceaseless conflicts among market players, while at the same time reducing legal business activities likewise disintegrating socioeconomic conditions. An empirical research method was adopted for this study, analyzing illicit trade in narcotics on the global arena as from 2000 to 2011 and its resultant effects. The research findings indicate that, illegal drugs trade particularly on the world economy besides growing at a high rate, it endangers the overall welfare of humans likewise the business environment. This is ostensibly because this trade has high chances of engrossing regional economies into illegal drugs business activities, causing them to neglect sustainable ethical businesses. Now, to effectively address negative economic issues related to illegal drugs trade, there is apparent need for integrated efforts from local as well as international authorities. Such efforts are chiefly to control not only the harmful effects resulting from the use of illicit narcotics, but also from the trade itself and to build sustainable economies. The findings of this study are crucial for regulatory authorities in the global economy, for them to adequately comprehend the effects of illicit trade in narcotics hence inform their decisions to take necessary measures. This paper is on the effect of illicit trade in narcotics on global economy, touching on issues like peace along with social cohesion as well as security and economic progress.
Keywords: trade; narcotics; global; illicit; drugs; development.
JEL Classification: F19
Pagination: 21 – 27
Title: WEAK EFFICIENCY AND LINEAR REGRESSION OF CENTRAL AND EASTERN EUROPEAN MARKETS
Author(s): Davtyan Azat
Abstract: The deepening of financial integration in the EU has accelerated in the last decade. The expansion of trade relations, intensification of investment flows and capital market development evidence strengthening of financial integration processes. Particularly, the large number of foreign companies listed on domestic equity market enhances financial integration. In this regard, the enlargement of stock markets of Central and Eastern European countries and efficient capital allocation define further integration prospects.
The stock market efficiency depends mainly on adequate pricing of capital and risk. The rational investment expectations and information efficiency positively impact trading strategies and eliminates the presence of undervalued and overvalued assets. This leads to the high competitiveness of stock market and decreases the likelihood of abnormal profits.
Studies of stock market efficiency of CEE countries and the correlations of CEE capital markets with Western European markets have a significant importance owing to the ongoing financial integration and impact of financial crisis. I run two tests to check the capital market efficiency of CEE countries taking into account the perspectives of CEE countries to enter the euro area.
The aim of this quantitative empirical research is twofold: first, it investigates the weak form of market efficiency for the period from 2nd of September 2005 to 31st of August 2011 by using the Augmented Dickey-Fuller and Kwiatkowski-Phillips-Schmidt-Shin unit root procedures. Second, it checks the existence of linear correlation between CEE countries and Western European markets.
The results assume that the stock markets of some CEE countries follow a unit root. The linear regression model evidences different correlation patterns between CEE and EU old capital markets.
Those findings can be used for deeper investigation of market efficiency by highlighting convergence processes of CEE countries with EU old member states. Also effective capital allocation channels, institutional foundations of markets and strengthening of corporate governance should be highlighted. Finally, the outcomes of my paper will be useful for researchers in the field of finance.
Keywords: stock markets, unit root, random walk, market efficiency, stock returns
JEL Classification: G14
Pagination: 28 – 36
Title: TECHNICAL AND FUNDAMENTAL ANOMALIES. PARADOXES OF MODERN STOCK EXCHANGE MARKETS
Author(s): BAKO Elena Dana, SECHEL Ioana Cristina
Abstract: This paper continues the series of researches about the paradoxes of modern stock exchange markets and their impact on the real economy, addressing this time the most important technical anomalies but also fundamental anomalies, which can be observed on the financial markets. As we mentioned in several previous articles, the paradoxes of stock exchanges are related to potential contradictions that arise in relation to a generally accepted truth. A lot of researches in the field of stock market investment focused on finding the answer to the question whether historical prices can be used to predict future prices for listed securities. Complex forecasting methods were created to clarify this aspect. Thus, technical analysis is a method of forecasting the price movements and trends of the market in the future, by studying the market graphs (including here both, the price of the listed instruments and the volume of transactions). The fundamental anomalies refer to the anomalies in trading financial instruments, and to the elements of fundamental analysis. The basic principle of fundamental analysis refers to the fact that the market price of any financial instrument is the result of supply and demand for that instrument. Both the supply and demand that finally determine the price of a financial instrument, are under the influence of various factors. Market’s analysts monitor various economic indicators and examine the market reports, to detect changes that may occur in the economy. The fundamental analysis attempts to predict prices and the overall market development by analyzing some economic indicators, political or social factors which are likely to influence the stock exchange prices. Both technical and fundamental anomalies have a major impact on price formation for financial instruments which are traded on stock exchanges, and are able to offer to warned investors higher earnings.
Keywords: stock market paradox, technical anomalies, fundamental anomalies, trend lines
JEL Classification: G02, G12, G23
Pagination: 37 – 43
Title: BUSINESS ETHICS IMPLEMENTATION IN ORGANIZATIONAL CULTURE OF COMPANIES
Author(s): BERINDE Mihai, ANDREESCU Nicoleta Alina
Abstract: Abstract: In this paper we have analysed the perception and implementation of the principles of business ethics for companies.
This paper is a theoretical approach to ethical principles and the corresponding legislation, as well as an analysis of the degree of alignment of national legislation with the latest stipulations following the entry into force of the UK Bribery Act. This Act is currently recognized as a new and more comprehensive approach on the subject of ethics in international affairs.
At the same time, this paper focuses on the study case regarding the comprisal of Business Ethics principles within the activity of Romanian companies. Therefore, a practical approach is achieved, with an applicability of the theoretical aspects, which are the subject of the first part of this paper.
We analysed the need to implement Codes of Ethics and their advantages. Companies that do business with an organization that has implemented a Code of Ethics should be aware of its provisions and act accordingly, because it is a mandatory issue for all employees, and also in its relationships with the external stakeholders.
A code of ethics is a tool, a means of transmitting the organizational culture to its members, conferring them a sense of common identity, like the membership of a team. The desire of any company is to improve ethical performance, and, in order to achieve this, they need to build up, day by day, protection and to introduce it into a daily routine activity.
Both managers and employees need guidance on how to act in certain situations that raise ethical questions. The best way to solve these situations is through the existence of a code of ethics that both managers and employees can turn to for guidance at any time and reach the right directions.
Completed in July 2010 and entering into force in 2011, the UK Bribery Act is the latest approach to corruption. This Act has been described as the toughest anti-corruption legislation in the world, blaming a behavior that is not acceptable in the global market. With the advent of this new law, many companies were forced to update their codes of ethics in order to meet the new challenges introduced by this law. In this context, our research is based on the study case of the way in which the best performing company in Romania, OMV Petrom, uses in its practice the ethical values that are compulsory at an international level.
Keywords: business ethics, UK Bribery Act, sanctions, code of ethics.
JEL Classification: F23, K42
Pagination: 44 – 53
Title: THE ABUSE OF DOMINANT POSITION – RESTRICTING COMPETITION PRACTICE. CASE STUDY: ENI
Author(s): BERINDE Mihai, FORA Andreea-Florina
Abstract: The abuse of dominant position along with cartel, merger and state aid are practices restricting competition strictly regulated at EU level. These practices can have a disastrous effect on the internal market harming both competition especially consumers. These practices can have a disastrous effect on the domestic market harming both competition and especially consumers. This paper aims to analyze how the abuse of a dominant position is regulated in the European Union. The research methodology used is the study of literature, analysis of legislation, case study, and the collection and interpretation of statistical data. The Competition Law at European level is harmonized among European Union member states. The competition authorities of the EU Member States work together to detect and sanction the practice that is restrictive for competition. Improving legislation that regulates the abuse of dominant position has been an ongoing concern of competition authorities, which is why the EU currently enjoys a very well established procedure. The procedure governing the abuse of dominant position consists of a series of steps that must be taken gradually to have the desired result, i.e. restoring fair competition on a given market. The case study presented in this paper is indicative and shows very clearly the next steps for referral to an abuse of dominant position, with special reference to the outcome arising when applying the procedure correctly. The analysis of statistical data regarding the number of investigations opened and the number of decisions made by competition authorities on abuse of dominant position is relevant, outlining the evolution of the work performed by competition authorities. Throughout the period of ten years analyzed (January 2004 – February 2013) there were 1583 cases of violation of antitrust laws at European level. The percentage of investigations opened by the competition authorities of the Member States is 86%, much higher than the number of investigations opened by the European Commission (14%). Both the activity of the competition authorities and especially the importance of competition policy as well as the guardian position for consumer protection assumed by the Competition Council in each Member State of the European Union have to be underlined.
Keywords: abuse of dominant position, competition policy, European legislation, procedure, case study
JEL Classification: K21, L41
Pagination: 54 – 63
Title: MEDICAL BRAIN DRAIN – A THEORETICAL APPROACH
Author(s): Boncea Irina
Abstract: Medical brain drain is defined as the migration of health personnel from developing countries to developed countries and between industrialized nations in search for better opportunities. This phenomenon became a global growing concern due to its impact on both the donor and the destination countries. This article aims to present the main theoretical contributions starting from 1950 until today and the historical evolution, in the attempt of correlating the particular case of medical brain drain with the theory and evolution of the brain drain in general. This article raises questions and offers answers, identifies the main issues and looks for possible solutions in order to reduce the emigration of medical doctors. Factors of influence include push (low level of income, poor working conditions, the absence of job openings and social recognition, oppressive political climate) and pull (better remuneration and working conditions, prospects for career development, job satisfaction, security) factors. Developing countries are confronting with the loss of their most valuable intellectuals and the investment in their education, at the benefit of developed nations. An ethical debate arises as the disparities between countries increases, industrialized nations filling in the gaps in health systems with professionals from countries already facing shortages. However, recent literature emphasizes the possibility of a “beneficial brain drain” through education incentives offered by the emigration prospects. Other sources of “brain gain” for donor country are the remittances, the scientific networks and return migration. Measures to stem the medical brain drain involve the common effort and collaboration between developing and developed countries and international organizations. Measures adopted by donor countries include higher salaries, better working conditions, security, career opportunities, incentives to stimulate return migration. Destination countries could fight against the exodus of physicians through self-sufficiency, financial compensations paid for the skilled workforce coming from developing countries and agreements forbidding the recruitment of health professionals from countries already suffering of scarce resources. International organizations’ contribution includes collaboration and actions oriented towards the adoption of an ethical guideline. As the medical brain drain is a global concern, its contraction requires global solutions.
Keywords: brain drain, medical brain drain, migration, health system
JEL Classification: F22, J21, J24, O15
Pagination: 64 – 71
Title: POLAND`S OUTWARD FOREIGN DIRECT INVESTMENT
Author(s): Buczkowski Bogdan
Abstract: The paper contributes to the discussion of motives, determinants and effects of outward FDI of companies from emerging economies. We analyze the the scale, structure, geographical location and effects of Polish foreign direct investments as well as we prioritize their determinants. The interest of Polish companies in investing abroad has increased sharply over the last decade, due to the need to broaden the scale of business operations and geographical scope of their economic activities after the Poland`s accession to the European Union.
Keywords: Poland; active internationalization of enterprises; outward foreign direct investment; FDI impacts; FDI determinants
JEL Classification: F21
Pagination: 72 – 81
Title: ECO-INDUSTRIAL PARK – A TOOL FOR SUSTAINABLE DEVELOPMENT
Author(s): BUGNAR NICOLETA GEORGETA, MESTER LIANA EUGENIA
Abstract: Local communities embracing the concept of Eco-industrial park are looking for some additional benefits for all the interested parties – both public and private: higher economic efficiency, the increase of competitivity by applying last minute technologies, generation of additional revenues through positive regulations at the community level, the creation of jobs, solving the conflict between economy and environment, diminishing the demand on the county infrastructure, decreasing the effects of pollution, using energy from regenerating sources and replacement materials. Communities and enterprises creating Eco-industrial parks will have common grounds for industrial development, which is much more competitive, more efficient and much cleaner than traditional industrial parks. Moreover, the new business niches will be open to recruitment or new incubators. Eco-industrial parks represent a special category compared to industrial parks, a category which is different from the classical ones due to the fact that they are designed in such a way so that they promote the collaboration between companies in order to reuse recyclable materials and green energy sources. A long-term vision must reflect the focus on the creation of collaboration networks between firms and the fact that an Eco-industrial park should be a business community, not only a mathematical sum of companies located in the same geographical area. The quality, continuity and interconnection of economic flows within the firms of an Eco-industrial park are important characteristics for the success of Eco-industrial networks. The following discussion tackles the way in which an Eco-industrial park is set-up: creating and implementing an Eco-industrial park in accordance with the principles of circular economy or transforming an already existing industrial park into an Eco- industrial park. The quality, the continuity, the number of interconnected firms, the flows of resources and the relations between the firms are success factors within Eco-industrial networks. The successful cases – especially those in the USA or the Northern countries – have proved that Eco parks engage a multitude of entities, from regional/local authorities to non-governmental organizations; in these entities’ action the objectives and actions of the firms; management overlap with those of the community management
Keywords: eco-industrial park, resources, circular economy, local community , sustainable development
JEL Classification: F21, F22
Pagination: 82 – 88
Title: PARADOXES OF MODERN STOCK EXCHANGE MARKETS
Author(s): CIOBANU Gheorghe, SECHEL Ioana Cristina
Abstract: In this article we propose an easy approach of stock exchanges and their impact on the real economy. The paradoxes of modern stock exchanges are commonly understood as opinions that contradict the generally accepted truth and therefore are considered absurdities or huge enormity by the majority of the population.
The paradoxes are essentially based on logical arguments that sometimes can lead to contrary or contradictory conclusions (depends on the situation) of a truth already known and accepted. In connection with capital market, through this approach we try to highlight a few aspects that come out from everyday life, breaking the monotony of theoretical resolutions.
We can associate anomalies in trading financial instruments with prove that financial markets are inefficient. They can be highlighted best on the developed financial markets. Through their specific, there are anomalies in a stock market that demonstrates either that the market is inefficient or that there are some discrepancies regarding certain asset price formation. If we talk about market inefficiency hypothesis, it is demonstrated that in that market, the efficiency of the market is not verified or partially verified. It has been shown that such anomalies tend to diminish or even disappear in time, thereby reducing or even eliminating the profit opportunities of the investors who speculate on them (Schwert, 2003, p 940). The stock exchange anomalies, especially those with a direct impact on the financial instruments price which are traded on stock exchanges, are likely to offer investors the opportunity to obtain above-average market gains, in term of a proper management.
To assess whether or not the phenomenon can be considered as a stock market anomaly, it must be compared with a normal behavior or with a normal model. In addition to the main categories of stock market anomalies that we identified (calendar, technical or fundamental) a paradox of recent years in the investment in stock market is the high-frequency trading (HFT – high-frequency trading), this requires a ultra-fast trading of the securities, using special algorithms but also highly advanced technologies. The effects of very rapid extension of these practices are reaping huge profits in fractions of time increasing fraction of time here, and more than that the pronounced weakening of the link between the stock market and the real economy.
Keywords: stock market paradox, high-frecquency trading, january effect, weekend effect
JEL Classification: G02, G12, G23
Pagination: 89 – 96
Title: NEW DIMENSIONS OF BENEFITS AND RISKS TO BUSINESSES IN THE EUROPEAN UNION MARKET
Author(s): Dinu Ana-Maria, Rujan Ovidiu Adrian
Abstract: The paper aims to identify the types of risks that a company faces when entering the European Union’s market. Risk may be defined as an uncertain event that may have a negative effect on achieving objectives and risk management can be defined as the process that identifies analyses and accept or mitigate the uncertainty in business decision-making. Well designed and implemented, risk management programs are the source of competitive advantage for businesses in the European Union market and this way the operating costs can be reduced, quality and product reliability can be improved, staff productivity can increase. It is very important for any company to be aware of potential risks as this will help to assess, to prioritise and to protect againt the risks that may arise. Some of the potential risk can destroy a business, while others can cause serious damage that can be costly and time consuming to repair. After the company have identified the risks, they must be prioritized in accordance with the companies assessment of their probability.The European Union expansion is ongoing and it is a major market place .Doing business on international level has always been about managing the unique risks which global markets pose. For many companies that intend to do business in Europe today, the risks are so varied and complicated that a risk management strategy is necessary and must be carefully tuned and revisited on a regular basis. There are many advantages when starting a business in the European Union. When participants and investors enter a new market should remain vigilant about risks.
Keywords: risk, European Union, business, market, risk management
JEL Classification: G3
Pagination: 97 – 102
Title: THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT
Author(s): Hristea Anca Maria
Abstract: Real estate investments are one of the most attractive business opportunities in the context of the contemporary economy, generally marked by economic recession and especially by monetary and financial instability. Last years international reporting concluded that deepening the global economic crisis determined an increase of the real estate request, while despite all expectations one did not assist a crash of the prices. Economic reality showed that real estate assets value (buildings, land) kept proportions with economic reality over time. A comparison between stock exchange market and the real estate market shows that while an movables investor (investments in stocks, bonds or life insurance) might lose completely his initial investment, the investments in real estate assets, such as buildings, would keep their quality as goods and would also keep a value to better resist shocks and thus allowing an increase of the capital. When appreciating the value of an investment the first things to analyze are the return, liquidity and risk criteria, which are essential in real estate investments too. Stimulating real estate market must be not only a wish but also a reality of global economy, since it can correct many of the aggregated indicators of a country. Containing scientifically detached from economic practice, this article is addressed to readers with interests in real estate investment. The language is usually referred particularly to the qualitative side of the real estate market approach. The feasibility of the real estate investments is being conditioned by their capacity to generate important profits, on the background of the reduction of the duration of recovery of their value. The economic instability from the last couple of years has generated fears and failures but, paraphrasing Johann Wolfgang von Goethe, courage is a mixture of genius, magic and power that helps us succeed in everything we set our mind to. The investments on the real estate market usually have a long period of recovery, compared to the placements at the stock market or to the commercial business. The structure of investments in the field of real estate is complex and depends on several factors: the fiscal and financial policies of a country, elements that are specific to the constructions sector, the fluctuations of the real estate market, the development degree of a nation, the free circulation of people, the evolution of the exchange rate etc. The international statistics show that the real estate sector represents one of the most profitable businesses from the last two decades. Even now the real estate sector seems to be profitable, especially for the speculators, in the measure in which there are financial sources and enough information about the market.
Keywords: real estate investment; return of investment; investment liquidity; real estate investment risk; fair value; real estate market
JEL Classification: D50; E22; M40; M42; R30; R31
Pagination: 103 – 112
Title: CAN BUSINESS EDUCATION CHANGE MANAGEMENT PRACTICES IN NON-WESTERN SOCIETIES: LESSONS FROM LEBANON
Author(s): Finlay Jim, Kassar Abdul-Nassar, Neal Mark
Abstract: The purpose of this study was to determine the degree to which students from an American-style Business School in Lebanon expect the managerial behaviors that they are taught in the classroom to actually be applied by managers in the Lebanese workplace. Broadly categorized as accountability, gender equity, religious tolerance, consultation and transparency, the authors found little indication that such expectations existed. Even when they could be identified such as with racial equality, their relative strength was so weak that they were barely above neutral on a 10-point scale. What was perhaps most troubling was that expectation for the elimination of bribery and corruption actually declined as students matriculated through the curriculum. At least for the time being, it appears that Lebanese business students do not anticipate encountering American-style management practices, which have formed the core of the Business courses, when they enter the workforce.
Keywords: Accountability, Equity, Tolerance, Consultation, Transparency, Hegemony
JEL Classification: M16
Pagination: 113 – 122
Title: THE ROLE OF INDUSTRIAL PARCS IN ECONOMIC DEVELOPMENT
Author(s): MEȘTER Liana-Eugenia, BUGNAR Nicoleta-Georgeta
Abstract: In an attempt to accelerate the process of reforming the economy, the central institutions focus on supporting the use of technology to modernize the industry that would lead to the diversification of activities and the achievement of sustainable industrial development. The imperfections of the market and of the institutional system hampers companies’ access to information, knowledge, new technology and financing resulting in increased business risk and directly affecting the progress towards achieving development goals.
Industrial parks may be considered as a solution to overcome these flaws in the attempt to accelerate the economic development by attracting innovative businesses that can generate jobs, higher incomes and therefore more resources to institutions. They can exploit the local potential in supporting knowledge-based business development and outline an environment where companies can interact with other supporting knowledge suppliers thus facilitating business and local development.
The approach of the subject is theoretical starting from the need to support the economic activities by local social institutions fostering the access to information and technology and identifying some solutions that meet these needs – industrial parks. Even if industrial parks in Romania are still considered in draft form, some examples can be identified as functional and supporting the local development. Their functionality is given by the involvement of local authorities and the interest of the business environment in exploiting the economic potential of the region. The role of industrial parks in supporting the local development is measured in the number of new jobs created, the income received by local institutions by paying taxes and duties from firms benefiting from the infrastructure made available through their involvement in attracting investors; the more productive the industry and more efficient the production, the higher the company’s results and therefore the benefits of local institutions.
Keywords: industrial parks, economic development, productivity, efficiency
JEL Classification: F21 F22
Pagination: 123 – 130
Title: EU ADVANCEMENT WITHIN THE WORLD TRADE: AN OVERVIEW OF THE LAST YEARS
Author(s): Nedelescu-Ionescu Daniela, Rujan Ovidiu
Abstract: The expansion of global trade gained considerable force in the last decade, force that generated many transformations and changes. These transformations represent stronger improvements than expected, when compared with the preceding years, even if the trade growth remained below the average rate recorded in the ‘90s. Some of the improvements are supposed to be consequences of free trade areas expansion. In this sense the present paper aims to observe if the free trade agreements increased the members’ international trade and how much a stronger union perform comparing to a weaker one. It analyses the effects of total trade made by the members of the main five free trade agreements: EU, NAFTA, ASEAN, MERCOSUR, and ANDEAN PACT, between 2000 and 2010. In order to analyse the effects of the total trade made by the members of these unions, the authors used data collected from the WTO International Trade Statistics published in 2009 and 2011. For each one of the five unions was built a distinct chart which illustrates the variation of exports and imports during the analysed period of time, as well as the trends of these operations over these years. Comparing all these charts they concluded that EU trade significantly increased as more countries joined the group, in contrast to the other groups which maintained their level along the time. Moreover they have noted a gap between the exports and imports performed by EU and the ones performed by the other unions. EU commercial exchanges were by far superior to the ones of the other areas and, in the same time, the EU trade fluctuations are broader than the ones of the other areas. Perhaps in the next period of time the commercial exchanges of UE and NAFTA will enhance with these areas whose potential has not been fully harnessed. On the other hand, creating a large common market the EU – NAFTA will most certainly constitute a guarantee for global economic stability and sustained economic growth.
Keywords: openness to trade; free trade agreements; expansion of global trade; EU enlargement; EU advancement;
JEL Classification: F1
Pagination: 131 – 138
Title: CONCEPTS AND METODOLOGIES REGARDING THE IMPROVEMENT OF ROMANIAN FOREIGN TRADE (I)
Author(s): Negrea Adrian
Abstract: The purpose of the current paper is to highlight possible engines that can boost Romanian foreign trade from a chronic deficit to a more balanced one. In the beginning, the main theories and models that tackle this subject will be presented. In this respect, the paper starts with Smith, Ricardo, Manoilescu and Heckscher-Ohlin, in order to see the historic thought of trade model development. Following these models, a more mathematical approach will be made, using a thorough analysis at the product level. All the computations will be based on the combined nomenclature with its XXII classes, being the most exact determinant of traded goods. This paper uses the statistical indicators of Michaely and Lafay, in order to determine the specialization effect of the Romanian classes for a period of twenty one years, starting with 1991 and ending in 2012. This is the point where former, current and future specialized engines of potential trade growth can be established. It is crucial for a country to determine its potential in an open international arena, in order to take the necessary steps to encourage or discourage productive or non-productive areas of certain industry branches. Based on the results and on the previous methodology, a mix of theory with solid mathematical analysis, will gives the opportunity to draw up different sets of sustainable development formulas in order to obtain a higher concentration ratio regarding several classes from the combined nomenclature. For Romania to obtain higher gains from international trade, a more sustainable integration in the European Union, it has to stop its chronic balance of trade deficit. Looking at and analysing the potential development of a combined nomenclature class or classes, will help improving Romania’s chronic deficit, offering a long term prospective of sustainable development, reducing its foreign debt, improving its balance of trade accounts, and transforming its import driven economy to a more competitive export oriented economy. Achieving these standards will ensure Romania’s future development and accession to a more privileged seat in the European Union and in the international arena.
Keywords: sustainable development, Michaely indicator, Lafay indicator, foreign trade, Romania, combined nomenclature
JEL Classification: F10, F19
Pagination: 139 – 148
Title: CONCEPTS AND METODOLOGIES REGARDING THE IMPROVEMENT OF ROMANIAN FOREIGN TRADE (II)
Author(s): Negrea Adrian
Abstract: The aim of this paper is to emphasize the possible engines that can boost Romanian foreign trade from a chronic deficit to a more balanced one. In the beginning, we present the main theories and models that tackle the subject. In this matter, the paper starts with the analysis of neo-factors, Porter, the gravitational model, the input-output model, and the terms of trade in order to see the historic thought of trade model development. Following these models, a more mathematical approach is made, using a thorough analysis at the product level. All the computations are based on the combined nomenclature with its XXII classes, being the most exact determinant of traded goods. The paper uses statistic indexes as: Hirschman concentration index, elasticity coefficient, the degree of trade openness, in order to determine the specialization effect of the Romanian classes for a period of twenty one years, starting in 1991 and ending in 2012. This is the point where former, current and future specialized engines of potential trade growth can be established. It is crucial for a country to determine its potential in an open international arena, in order to take the necessary steps to encourage or discourage productive or non-productive areas of certain industry branches. Based on the results and on the previous methodology, a mix of theory with solid mathematical analyses, gives the opportunity to draw up different sets of sustainable development formulas in order to obtain a higher concentration ratio regarding several classes from the combined nomenclature. For Romania to obtain higher gains from international trade, a more sustainable integration in the European Union, it has to stop its chronic balance of trade deficit. Looking at and analysing the potential development of a combined nomenclature class or classes will help improving Romania’s chronic deficit, offering a long term prospective of sustainable development, reducing its foreign debt, improving its balance of trade accounts, and transforming its import driven economy to a more competitive export oriented economy. Achieving these standards can ensure Romania’s future growth and accession to a more privileged seat in the European Union and in the international arena.
Keywords: sustainable development, Hirschman concentration index, terms of trade, degree of trade openness, elasticity coefficient, combined nomenclature
JEL Classification: F10, F19
Pagination: 149 – 158
Title: GLOBAL LOGISTICS , COMPETITIVENESS AND THE NEW INCOTERMS
Author(s): Popa Ioan, Belu Mihaela Gabriela, Paraschiv Dorel Mihai
Abstract: If in the first stages of the internalization of business, logistics had a minor influence in the international success of the company. In a globalized economy, strategy and the logistics costs are essential factors for competitiveness. Nowadays, logistics determines the place which a country or a company holds in the worldwide competitive hierarchy.
The new Incoterms – 2010 – establish – in the field of commercial practices this reality: performance is now assessed in global terms (not national), competition is global, not international. Ultimately, the new Incoterms encourage/stimulate the orientation of firms towards increasing competitiveness by employing an appropriate logistics strategy; the degree to which firms will manage – as quickly as possible – to be integrated in this new trend will also be the measure of their competitive capacity in the newly emerged context.
The category of global firms should not include just the large transnational corporations, but also the medium and small enterprises that operate exclusively or mainly on the global market. Within this plan there can be created and developed competitive advantages which are primarily based on the reaction speed to the changes in progress, the capacity to adapt to new things and the availability for intercultural communication. These last conditions represent characteristics of the Romanian business approach.
Keywords: global logistics; competitiveness; incoterms; international business
JEL Classification: F59, L81, F23
Pagination: 159 – 166
Title: EDUCATION AND COMPETITIVENESS IN THE GLOBALIZATION ERA
Author(s): Popa Ioan, Belu Mihaela Gabriela, Paraschiv Dorel Mihai
Abstract: The educational system is one of the important factors in creating and developing the competitive forces of a country. The higher education provides the socio-economic environment with two basic services: teaching and research. The duality marks an entire history for higher education, but nowadays a new dilemma has emerged: economic efficiency (the university as an economic provider of services) versus academic competitiveness (the university as a research forum). In addition, a new challenge seems to be altering the future of higher education, these stemming from the massive increase in the demand for university teaching services: elite higher education, thus efficient, highly competitive academically (competitiveness), or mass higher education, adapted to the demand, with the primary role of harnessing knowledge though professional training (effectiveness).
Keywords: education, competitiveness, globalization
JEL Classification: E
Pagination: 167 – 174
Title: THE HUNGARIAN CRISIS: AN AUSTRIAN SCHOOL EXPLANATION
Author(s): Andras Toth
Abstract: The Hungarian model was heralded as one of the most successful post-socialist way of integration into the globalised world economy and European economic area in the nineties. Currently, Hungary is suffering from a full-blown crisis 1996 onwards. Increasingly large number of Hungarians is losing their faith in political parties, institutions, democracy and in market economy. The government, elected in 2010 by supermajority and still enjoying a broad support despite the deepening recession, condemns the development path taken after 1989 and openly rejects the wrong model of the last 20 years. The government intends to build a new economic model following a model, which one can call a model of economic nationalism as the only way out of the crisis. The paper intends to portray, through the case of Hungary, how economy and politics is interconnected, and why political elites are choosing a credit fuelled development path. The paper intends to portray how a credit fuelled growth was induced by politics and ended up in tears. Moreover, the paper describes the consequences of pro-etatist shift in the public sentiment due to the alleged “market-failure”, which was in reality a crisis, at first place, created for political purposes by political means. This article, based on the Austrian business cycle theory, argues that the tragedy of Hungary was that it went through a government inspired spending binge in the first half of the 2000s. The deficit spending of the government was accompanied by the expansion of credit by the commercial banks, mostly denominated in Swiss francs. The combined effect of deficit spending and credit expansion was the build-up of debt and loss of cost competitiveness. The 2008 crisis ended the credit fuelled development path and has started the long and painful period of deleveraging crisis. On the other hand, the Hungarian crisis is a post-Keynesian crisis. It had broken out when the state was already heavily indebted and the managerial state fully developed within the constraints of the capabilities of the Hungarian economy. The paper argues that Hungary has chosen the wrong path by opting for economic nationalism and blaming “markets” for the crisis.
Keywords: macroeconomics, CEEC, economic crisis, Keynesian deficit spending, Austrian economics, Hungary
JEL Classification: A14
Pagination: 175 – 182
Title: THE END OF IMF – TURKEY RELATIONSHIP
Author(s): ZUNGUN DENIZ, ORTANCA MURAT, KIRLI MUSTAFA, CURA SERKAN
Abstract: Abstract: IMF has been created to make international cooperation on financial matters stronger and for solving the problems of balance of payment. However, the IMF formed policies in order to solve problems of balance of payment till the 1980s, expanded its effectiveness much more by controlling the structural adjustment programs after the 1980s, and undertook the role as an international lender of last resort on crises caused by globalization trends. In developing nations, foreign and domestic deficit occurred due to infrastructural causes that have created economic instabilities portrayed through inflation and unemployment. Especially foreign debt problems sourced by the foreign trade deficit transformed into an economic crisis for these countries. Many countries affected by such economic crisis applied to IMF and its Stabilization Program with the aim of providing economic stability in the hopes of recovering. The important thing here to point out is that the economic programs used by countries during their economic crisis are supported by the IMF in reality. In this situation Mexico and Argentina can be given as a good example. IMF has undertaken the same mission in Turkey with seven stabilization programs put in practice and nineteen Stand-By Arrangements between them. But IMF has failed many times in Turkey just like in many developing countries. This is because IMF did not take into consideration economic and social structure of countries in stabilization programs put in practice. Today, Turkey has reached to an important point from the way of its relationship with IMF; more clearly, Turkey is determined to achieve its future without IMF. Turkey-IMF relationship in the framework of stand-by agreements in the past half century of our economic and political history has come to an ending point. After a period of 51 years of intense relations, Turkey decided to determine its calculations of credit limit by the way of advantages and disadvantages and continue its relations in this way. In this context, this study will try to prove therotically that Turkey will put in place to foreign credit support with the purposes of carrying out stabilized policies and protecting itself from financial shocks. Finally, Turkey will contact IMF with requirements of the rules and regulations that are in its advantage.
Keywords: IMF; Stabilization Program; Stand-By Arrangements; Turkey
JEL Classification: E02, F55
Pagination: 183 – 192
Title: THE SUSTAINABLE DEVELOPMENT STRATEGY OF BAIA MARE CITY
Author(s): Anghel Cristian, Vele Cristian, Toader Rita, Hahn Rada-Florina
Abstract: The paper also presents a series of subsequent tools that provide the support for the complex tools regarding the important aspects of local and territorial development, such as strategic planning, sustainable development strategies, integrated development plans. The reference point of this reasearch is represented by the management process in the public administration in the city of Baia Mare for which there are, in the general economy of the paper, the most complex resources for an empirical research.
The Baia Mare Urban System presented in this paper has all the characteristics of a model structure of polycentric development that has elaborated/formulated a development overview on long and medium- term with all the strategic, tactical and operational elements that support the development within a well defined territory. The approach on both components (institutional, territorial) has a complex character but at the same time,a unitary one.
The promotion of polycentric and balanced territorial development as an essential element for the territorial cohesion realization represents one of the priorities of Europe Strategy 2020. In this context, the formation and consolidation of the development poles as basic elements for the creation of polycentric networks must be supported by integrated politics at local and regional level.
The study cases outlined in the paper represent models for the use of different public management tools in concrete situations that cover most of the fields aproached in local administration.
Keywords: sustainable development, Europe Strategy,urban system
JEL Classification: J11, R11, R23.
Pagination: 195 – 204
Title: GOVERNANCE, CULTURE AND DEMOCRACY: INSTITUTIONS AND ECONOMIC DEVELOPMENT OF EU MEMBER STATES
Author(s): Bartha Attila
Abstract: This paper intends to understand the major institutional factors related to the economic development of the European Union (EU) countries in the last two decades. It provides some contributions to the institutionalist debate of the present crisis of the European Union, and within it, the Economic and Monetary Union (EMU). The two main issues of the empirical research are the effect of the different institutions on economic growth and the relative importance of institutions compared with the traditional macroeconomic components of economic development. The institutionalist tradition of comparative political science and political economy as well as institutional economics define the framework of interpretation. The analysis sheds some light on the relationship between economic development and the different institutional dimensions, namely the legal environment, political institutions, public policy institutions (governance) and the informal institutions, the cultural components of the economic-political behaviour. The empirical research examines the development pattern of the European Union countries between 1993 and 2011 as well as the relationship between economic development and institutional quality in that period by descriptive and explanatory statistical methods. The results reveal strong relationship among the different aspects of institutional quality in the EU countries; within Europe we cannot observe a Singaporean type contradictory constellation between the quality of democratic institutions and public policy effectiveness. The path of European development has been drawing a conspicuously strong correlation among the different institutional dimensions: the high quality of democratic institutions, the respect of the rule of law and property rights and the effective governance are going hand in hand with the growth-supporting components of the culture. In cultural terms, the high level of trust, respect and self-determination as well as the lack of obedience ensure the most successful long-term growth pattern in Europe. Another important finding is that the EMU countries are conspicuously heterogeneous in their institutional quality and the Mediterranean members of the Euro area are institutionally closer to the non-EMU-member Central-Eastern European countries than the core EMU countries. Concerning the economic policy consequences, the heterogeneity of the informal institutions fundamentally challenges the effectiveness of the approach of stronger harmonisation by stricter formal rules and stricter sanctions against the norm-breaking Euro area members.
Keywords: economic development, European Union, Euro area, institutions, culture, democracy
JEL Classification: O43, O52, P16
Pagination: 205 – 214
Title: CRITICAL FACTORS IN HRD PROJECTS’ IMPLEMENTATION: EVIDENCE FROM PUBLIC UNIVERSITIES IN ROMANIA
Author(s): Brancu Laura, Munteanu Valentin, Gligor Delia
Abstract: For Romania, European Integration came with new challenges for the entire society, especially for investment project promoters, including public higher education institutions. Investments in human capital development and education have an important role in a country’s economic development and growth but, in spite of the large number of human resources development public projects being financed, major problems were identified in their implementation process, particularly factors from the macro-economic and institutional environment. Most of the current interest in this area is centered on identifying and analyzing these key factors since their understanding might lead to ensuring an improvement of the implementation process and to a project’s success. In this context, our paper’s objective is to provide a set of critical success factors for HRD projects’ implementation process by developing a framework for external environment factors’ analysis from a public project management perspective. Taking into consideration the current impact of the external environment’ factors upon projects in Romania, in this paper we chose to focus our attention only on the critical success factors of the external socio-economic, institutional, technological and cultural environment, that affect the implementation phase of a project. We started with an analysis of the Romanian context that allowed us to develop a conceptual framework. We then realized a survey on a sample of three Romanian public universities which implemented projects in human capital development by developing and applying a questionnaire to 112 persons involved as management in projects in order to identify the key factors from the external environment that affect a project’s implementation process. Results show that the most significant factors, with a negative impact, are political and economical ones while technological and cultural factors are perceived as factors with a positive influence. Our conclusions have a high informational content and can be useful for those involved in policy making and building institutional capacity in terms of human resources development
Keywords: project management, human resources development project, critical factor, PESTC analysis, implementation management
JEL Classification: C83, I25, O15, O22
Pagination: 215 – 224
Title: SOCIAL CRISIS – AN IMPEDIMENT TO SUSTAINABLE DEVELOPMENT
Author(s): Capmare Irina-Cosmina
Abstract: This paper is about social crisis and sets to give a dimension for this non- effective current. The paper is addressed to all persons interested in this domain, especially for those that work in this sector (non-governmental sector, third sector) and that need to have a better perspective on the situation. The methodology was based on self documentation which involved a wide range of materials: reports, case studies, paper works, articles, specific sites, European Union guides. This paper underlines the bad influence of the social crisis on sustainable development. My research includes both quantitative and qualitative dates; the ideas are embraced by my own convictions on the topic and tend to express also my beliefs on the matter. The added value of the paper is provided by the elements brought together: the topic, which, as common as can be, has a critical importance for the economy, blended with new information related to European Union Funds abortion and statistic dates regarding the work market in our country. The paper starts with an introduction that offers general information about the topic, a short background on the next headlines. As follows, each headline surprises with punctual elements of social crisis: determinant causes, solutions found, institutions involved, conclusions. The results of the paper shows that institutions in Romania are concerned about this situation and fight to bring out the best solutions, even if community is not totally prepared to accept it. Besides Romanian institutions, we have the support of the European Commission, through the European Union Funds. The Commission brings also the know-how of the other European Union Countries that confronted with these situations and, in better conditions know, sets here good practices within the projects they finance. This paper should be read and acknowledged as a base for the social economy development and it aims to create an interest for more persons in contributing to the strategic growth of the country and people.
Keywords: social crisis, social exclusion, sustainable development; European Union
JEL Classification: Z13; J14; J61; F22
Pagination: 225 – 233
Title: REGIONAL DEVELOPMENT AND INNOVATION IN ROMANIA. CHALLENGES AND PERSPECTIVES
Author(s): Chirila Lavinia Florentina
Abstract: Regional innovation is considered one of the most important drivers of development at present. Innovation is the tool that can help regions develop regardless of their natural resources and potential. The main purpose of the paper is to foster the innovation at regional level in Romania in order to determine and highlight the need of further measures to increase regional innovation and regional development of Romanian regions in the current context of getting out of the economic crises. Romania is subject of discrepancies not only at European level but at national level as well in terms of economic development and regional innovation. The research undertaken in the present paper is a qualitative research and followes the model proposed by the Group of Applied Economics in the study called Manual of regional competitiveness assessment, and in the study called Romania’s reindustrialization: policy and strategy, study commissioned by the Ministry of Economy, Trade and Business, and uses regional indicators of the eight Romanian development regions in order to measure the Competitiveness Index based on three Indexes, namely Economic, Social and Innovation Index. The data used was collected from Romania’s National Institute of Statistic, National Centre of Prognosis and from the Eurostat database. The general objective is to enhance the great role of regional level in innovation and to sensitize the policy makers about the need to introduce a regional level in order to enforce regional innovation, the main way of improving regional competitiveness and regional development. The main findings reveal that the Romanian regions that invested more in innovation have a positive evolution in terms of economic growth over time so it is for the best of a region to invest in innovation, an aspect that should be taken into consideration by policy makers and private sector when planning the investments within a region.
Keywords: Innovation index, Economic index, regional innovation, regional development, regional competitiveness
JEL Classification: P25, R11, R58
Pagination: 234 – 242
Title: COMPARATIVE ANALYSIS OF RURAL DEVELOPMENT POLICY 2007-2013 IN ESTONIA, LATVIA AND LITHUANIA
Author(s): Dinu Mihai
Abstract: In this article will be carried out an analysis of the manner in which the three Baltic countries were able to implement rural development Policy at EU level. The article begins with a comparative study on some characteristics of the national economy and the agricultural sector, such as population, GDP, GDP per capita, the total area, the area used for agriculture, the number of farms, number of persons engaged in agriculture, the importance of agriculture to the economies of those countries, will continue with the presentation of the amount of funds allocated for each axis and measure in the rural development programmes for the period 2007-2013 and another chapter will refer to the degree of access of funds from the EAFRD and shall end with a number of conclusions concerning the capacity of States to access EU funds. The three countries have experience in implementing EU funds considering that benefited from rural Development Plans in 2004-2006 and SAPARD.
Keywords: agriculture, axes, EAFDR, measure, rural development
JEL Classification: Q18, R11, R58
Pagination: 243 – 251
Title: CONCEPTUAL DELIMITATIONS ON SUSTAINABLE DEVELOPMENT
Author(s): Ienciu Ionel-Alin, Popa Irimie Emil
Abstract: Sustainable development is a model for resource use meant to satisfy human needs, without polluting the environment, so that these needs can be satisfied not only in the present, but in the future as well. It is a concept of nowadays with no generally accepted definition, placing environment first and foremost, aiming at implementing the environmental policies in all structures and at all economic levels. Within the present study we have aimed at creating a conceptual delimitation on sustainable development, sustainability and socialresponsibility, concepts of present interest, that tend to become a mystery for the academic community and practitioners by their variety and complexity of approaches. During our scientific endeavor we believe that social responsibility is the foundation of sustainable development. Sustainable development is a concept used especially at macro-economic level, while social responsibility is used at entity level and incorporates the economic, environmental and social dimension, which has a voluntary character and tries to respond to the information needs of the society and other stakeholders. Sustainability at the entity\’s level is the goal or final objective of sustainable development – satisfaction of present needs without compromising the possibility for future generations to satisfy their own needs, while social responsibility is an intermediate phase of sustainability wherein entities try to balance the economic, social and environmental dimension. Thus, we can state we include ourselves within social corporatism, slightly close to social institutionalism, which is characteristic to developed countries, giving a particular importance to social contract and relations between entity and society. We believe that in Romania, a POSDRU funded project should be regarded as a legal person with social values, which must be based on sustainable development and to promote, besides legal liability of automatically deriving legal contract, social responsibility, which resulting from its relationship with society in which it is implemented, and within these relations, environmental protection represent a major social responsibility of any kind of project.
Keywords: sustainable development, social responsibility, sustainability, conceptual approach, environmental economy, POSDRU funds
JEL Classification: M19
Pagination: 252 – 261
Title: CONVERGENCE AND DIVERGENCE IN EUROPEAN UNION: EVIDENCE FOR BETA CONVERGENCE AMONG NEW EU MEMBER STATES
Author(s): Ioana Sorina Mihuț, Mihaela Luțaș
Abstract: Abstract: Convergence may be considered a central issue of the current economic literature, and not only, concentrating upon income distribution within different economies, but also focusing on different aspects of polarity and inequality that characterize especially the emerging economies. Testing convergence within economies may serve as a useful instrument for the validation of the economic growth models. While convergence was considered a defining element of the neoclassical growth models, the majority of the new endogenous growth models argue in favour of divergence across different economies. Testing convergence among European Union is even more challenging due to the high degree of heterogeneity that characterizes these economies. The recent accessions with ten new countries in 2004 and with another two in 2007 were considered only the first step towards assuring a sustainable convergence and finally adopting a common currency-the euro. A series of empirical studies concentrated upon testing convergence among EU, using as benchmark the real convergence quantified by the level of GDP/capita as an indicator for the living standards of every economy. The most popular approach rely on Beta and Sigma convergence, the first one being and indicator of the GDP/capita dispersion between different economies, and the later one being an estimator of the reverse relationship between GDP/capita and its initial level. The main purpose of this paper is to test Beta converge among the new EU member states, in order to obtained more information about the fact whether the poor countries are trying to catch-up with the more developed one. Also Beta convergence indicator embodies useful information about conditional and un-conditional convergence, two leading hypothesis within the neoclassical and endogenous growth models. For Beta convergence hypothesis to be valid it should be taken into consideration a ”catch-up” mechanism over a longer period of time and a set of elements that are inter-correlated with the main objective of reducing disparities among economies. However we also have to take into consideration the fact that these elements may be influenced by temporary shocks that may have a decisive impact upon their short time performance.
Keywords: convergence, real convergence, emerging economies, growth models.
JEL Classification: O11
Pagination: 262 – 271
Title: EMPIRICAL STUDY REGARDING THE DETERMINING FACTORS OF THE ROMANIAN COMPANIES COMPETITIVENESS
Author(s): MOLDOVAN Nicoleta-Claudia, LOBONȚ Oana-Ramona, NICOLESCU Ana-Cristina
Abstract: The complexity of the concept of competitiveness lies in the fact that the term is used in various levels of aggregation, allowing the generation of its different meanings at microeconomic, mezzo-economic and macroeconomic level.
This study is focused on the concept of company competitiveness, on the relevant factors in order to analyze and explain the advantage of competitiveness for a company in regard to another, as well as the dimension and intensity which it uses the sponsors’ capital, the organizational capital, the human capital, the innovational capital and the capital represented by the customers portfolio. Secondly, using the questionnaire method as a research method, the objective of this paper is to provide some empirical evidences designed to assess the factors determining the Romanian company competitiveness on the competitive market. By using an initial dataset of 300 companies, which are part of the 14 fields of activity provided in the activity classification of the national economy, Reviewed NACE 2, we have made their classification on size classes, taking into account as classification criteria the number of employees, the annual net turnover and the value of the total assets held, then testing the opinions of the managers from the selected sample concerning the factors determining the competitiveness of the companies they manage. According to the results, the analysis of the sample structure reflects the control of microenterprises followed by the small and medium sized enterprises. The manner of administration and organization and the quality of the employed human factor are influenced by the company dimension and position held on the market. We consider that the managers of the small size companies, as well as the ones from the provided sample, rely on a preponderant intuitive management, they deal the administered businesses based on the spur of the moment inspiration, make decisions subjectively not starting from objective economic criteria, being concerned only with the management of the current problems. Since they aren’t the beneficiaries of a managerial education, they don’t possess the necessary competences to focus on the elaboration of certain strategies by which to provide competitiveness and performance on the long-term. However, the managers’ training and competence influence on the identification and use of the factors which are able to provide the company development.
Keywords: company competitiveness; sponsors’ capital; organizational capital; human capital; innovational capital; capital represented by the customers portfolio
JEL Classification: D22; L25; O12.
Pagination: 272 – 281
Title: STUDY ON THE PLACE OF ROMANIA IN THE HEALTH SYSTEM OF THE EUROPEAN UNION
Author(s): NISULESCU-ASHRAFZADEH Ileana, Pana Elena Cristina
Abstract: This study aims to present the concept of public health and the place of Romania in the health system of the European Union. The concept of public health grew rapidly throughout the European Union from a strict approach to health conditions in a comprehensive approach to the health of the population, living standards and a more healthy life, even amid economic crisis that affected the whole of Europe.
Policy makers have made considerable efforts to ensure access to high quality medical assistance facing challenges rarely encountered in other parts of the world, such as aging population, the use of more effective drugs and some more advanced technology.
In order to position Romania in the EU context, we used a comparative analysis, using a number of indicators, such as total health expenditures in GDP and per capita, and life expectancy at birth, number of hospital beds and number of doctors100, 000.The result in most indicators showed that Romania is in an inferior position, except the indicator number of hospital beds. However, in this case we must take into account that we had data published by the World Bank in 2010, and the following year they abolished a total of 67public sector hospitals.
These conclusions are all the more disappointing, because throughout Europe during the crisis was drastically reduced the budget spending on health, which affected both the public and private health. In this regard wages were reduced, they stopped hiring in the public sector, and healthcare staff migrated in search of higher incomes and better working conditions.
Successful experiences of the EU members countries have shown that some types of social policy and investment strategy in education in general and education for prevention and sanitary behavior in particular, lead to a long term positive impact on population health.
Keywords: health care, the budget, doctors, life expectancy, hospital beds.
JEL Classification: F52, H51, I18
Pagination: 282 – 289
Title: ESTIMATING QALYS IN THE WESTERN REGION OF ROMANIA – THE CASE WITH INTERVENTION
Author(s): Pantea Marius, Gligor Delia
Abstract: Currently, we are in the process of experimenting a diversification and refinement of the consumer’s expectations, as well as a growing demand for innovative, quality products and customized services, exacerbated by rapid technological change affecting both them and the producers. It is also the case of health services that, with Romania’s accession to the EU, must align to the European requirements. In the context of limited public resources and growing healthcare needs, socio-economic criteria are necessary for substantiating allocation decisions. With the continuous increase in costs of medical interventions but also the expansion of the range of treatment options available, there is a need to develop and use a range of tools to help establish treatment adopted in the context of justifying the benefits resulting from its implementation. In health, the greatest difficulty for the documentation of investment projects is the main overall effect measurement and evaluation – improving quality of life. Although treated in the literature in terms of specialized clinical trials, there is not currently a methodology to address the economic evaluation of investment projects in health. In this sense, our study’s objective is to develop and test a framework to estimate the most appropriate indicator that assesses improvements in quality of life due to healthcare investment projects. We have started with an extensive literature review that allowed us to identify the most recommended indicator in this sense – quality adjusted life years (QALYs) and also to develop and test a conceptual framework. We then realized a survey on 131 medical professionals form the Western Region of Romania, for the two main medical causes of decease, and based on the information collected we calculated the QALYs following a medical intervention. The values obtained reflect the impact of healthcare interventions in terms of quality of life improvements and have a high informational content being useful for those involved in policy making and building institutional capacity in terms of public resources allocation.
Keywords: cost-benefit analysis, economic analysis, public healthcare, quality adjusted life year, quality of life
JEL Classification: D61, H43, I15, I18, I31, J17, O22
Pagination: 290 – 299
Title: ROMANIA’S ECONOMY AFTER THE EUROPEAN UNION ACCESSION
Author(s): VADASAN Ioana, PAREAN Mihai Olimpiu
Abstract: If, during the communism, Romania had an unusual position at the European level, after 1989 it had a different path, in comparison with other former communist states: the country had the harshest difficulties finding its European path, then it had the most important economic growth rate; in the same time, it has been the candidate state facing many economic and social issues, which have worsened during the crisis. In this paper, the authors present the evolution of the Romanian economy, by analyzing representative economic indicators, the dynamics of the national economy, after its accession to the European Union (EU). It is obvious that the country’s evolution has been influenced by the decisions taken and implemented during the pre-accession period. At first sight, it is very difficult to economically separate the two periods of time. However, one can notice that, after the beginning of negotiations (February 2000), Romania’s economic policies have been implemented in a more sustained rhythm, due to the surveillance coming from the European authorities. After seven years of economic growth, which contributed to a partial catching-up with the European average, Romania became member of the EU, having a precarious economic and social situation. Under those circumstances, it would have been normal to continue to implement economic reform policies. Unfortunately, the determination of national authorities has sharply diminished after 2007. The first years of Romania’s membership have been characterized by important rates of economic growth, due, among other factors, to favourable international circumstances. This contributed to an increased trust on the part of Romania’s population and government in the national economy (even too optimistic). This, together with the fact that Romania had an unhealthy economic growth, contributed, after the outbreak of the crisis, to some powerful shocks for the population and for the economy as a whole (a sudden and rapid economic fall, wage cuts unwittnessed in other European economies, increase of expenditures taxes). The Romanian authorities had to make external loans (from the International Monetary Fund, the EU and the World Bank). In spite of those measures, the Romanian economy did not straighten out . Due to reasons less linked to the economy, those funds did not reach the intended purpose. On the contrary, the Romanian economic and social environment had severely worsened. In the meanwhile, as the EU was facing its own issues, it had adopted firm measures to deal with it. Romania had to accept those measures (for instance, the Fiscal Treaty).
Keywords: Romania’s economy, European Union, economic growth, economic crisis
JEL Classification: F43, N14, O11, O52
Pagination: 300 – 308
Title: IS THERE ANY RELIABLE COMPASS FOR TRACKING EU MEMBER STATES COMPETITIVENESS?
Author(s): Popa Angela Cristina
Abstract: Competiveness has a variety of definitions that lead to different indicators, each with its own particular application. Moreover, for any single concept of competitiveness, several measures may be constructed, depending on further specific assumptions. No single measure, or limited set of measures can provide all the information required to assess and manage an economy. In this paper we decided to construct two composite indices to assess two dimensions of competitiveness: one called simply economic robustness and the second one called price competitiveness. Almost all the time the decisions we make depend on what me measure, how we do our measurements and how we interpret them. To construct the composite indices we applied an exploratory factor analysis which is based on the idea that strongly correlated indicators refer to the same underlying (latent) dimension. Thus, a data set consisting of many indicators can be reduced into a single or a small number of composite variables (the so-called factor scores), each reflecting a significant part of the total variance. The indicators included in our analysis are: GDP per capita, domestic demand, private consumption, governmental consumption, gross fixed capital formation, harmonized index of consumer prices (HICP), Labor Cost Index (LCI), Industrial Production Index (IPI), export of goods and services, import of goods and services, real effective exchange rate (UCL based) and population and the data were collected for all EU Member States in the year 2010, as they are considered to track wealth and economic growth, indicate economic robustness and correlate with countries competitiveness. After constructing the composite indices, we tested their robustness throughout a pooled OLS (Ordinary Least Squares) regression on the GDP per capita, as the dependent variable. The outcomes proved to be significant and having the expected signs. The conclusions highlight that among countries that were characterized by high economic robustness in 2010 are Germany, Spain, France, Italy, Netherlands and United Kingdom, while among the countries that performed poorly we can mention Malta, Estonia, Bulgaria and Romania.
Keywords: factor analysis, price competitiveness index, economic robustness index, EU 27
JEL Classification: F41, F15
Pagination: 309 – 319
Title: A SNAPSHOT OF THE TECHNOLOGICAL COMPETITIVENESS OF COUNTRIES
Author(s): Popa Angela Cristina
Abstract: It is well known that technology is a key factor for the economic progress and helps countries competing more successfully in markets for new goods and services. Technological competitiveness becomes this way closely related to the degree of innovativeness of a country. Although there are several indicators that measure directly the innovativeness of a country, there are still problems at the moment related to the availability of data. In this paper, we decided to assess the technological competitiveness of countries, based on a structural decomposition analysis of the patent shares on the world market. Unlike other authors who applied this methodology in their studies, we collected our data from the World Intellectual Property Organization (WIPO) Statistical Database, covering 12 years, from 2000 till 2011 and we took into consideration 35 technology subsectors in 33 countries (EU 27, China, Canada, Japan, US, Switzerland and Norway). This approach should highlight the countries’ technological opportunities on the world level and measure their access towards sectors with high technological opportunities. Structural decomposition analysis points out the extent to which the shifts between technological sectors were induced by the changing technological environment on the world level. The analysis also shows the extent to which a country has an advantage/disadvantage from its past specialization pattern, having had a priori patenting activities in sectors that are now offering high opportunities and the extent to which the country deliberately moved into high opportunity technology sectors, or at least out of the industries with declining opportunities. The outcomes showed that technological development of countries on the world market played an important role for the patenting activity, being highly related to a well-developed infrastructure and pointed out that there are still a lot of European countries facing problems related to the technological infrastructure and technological capabilities. Countries that managed to keep their market shares high and also to increase their market shares over the years, while taking advantage of high opportunity sectors at the world level are the real leaders in terms of technological development. These countries are Japan, US, and China from the European states: Germany, France, Netherland, and Switzerland.
Keywords: technological competitiveness, structural decomposition analysis, patent shares
JEL Classification: O31, O33
Pagination: 320 – 330
