Gheorghe Zaman

Macroeconomic Impact of FDI in Romania

Abstract The paper analyses the impact of FDI in Romania on macroeconomic aggregates of GDP, exports, imports, trade balance, current account and, balance of external payments, focusing on the relationship between main determinants of FDI efficiency for host and origine countries. A special attention is paid to the role of reinvested and expatriated profits of spillovers, transfer, prices and structural patterns of Romanias FDI, under the circumstances of current economic and financial crisis, in an international comparative context.

Academic Entrepreneurship and Scientific Innovation in Context of Bio-economy Strategy☆

Abstract Innovation has been placed in the center of the EU 2020strategyfor growth andjobcreation. Member States are encouragedto investin research and developmentin 2020(1% ofpublic funds, 2% of private investments), which is estimated to generate 3.7 million jobs and would lead to annual increase EU GDP by about 800 billion euro. Europeanbio-economystrategiesdirectinginnovationeffortstowardssolving the main current challenges: energy, food security, climate change, etc. The public sectorwill be usedto stimulatethe private sector andremove bottleneckswhich preventideasreach the market, including lack of capital, fragmented research systems and markets. Currently, there are two main theoretical approaches entrepreneurial university: addressing broader conception of the university as a producer for intellectual and social capital in society and then arrow perspective on the optimization commercialize university research and financing function. This paper explores the relationship between bio-economy strategy and the scientific innovation to promote entrepreneurial activity.

Challenges of Bank Lending in Romaniaon Short, Medium and Long-term

The research focuses on several challenges on short, medium and long term bank lending in Romania, taking into consideration a series of economic and social criteria as well as different types of loans. At the same time, special attention is paid to the post-accession into the EU impact and to the financial and economic effects of the international crisis. The main results of the research are expected to point out the necessity of structural improvements in the field of long-term loans contributing to investments boosting as a vital prerequisite for Romania’s economy sustainable development. Meanwhile it is worth mentioning the intensity and duration of the crisis in Romania compared to other developed and emerging EU member countries. The importance of addressing causes that hinder the monetary policy transmission channels, lending sustainable re-launching, more involvement of banks in European funds absorption and growing market share for banks with domestic capital, are highlighted as main conclusions resulting from the study.

Economic-financial and Social Vulnerabilities of Romania in the Period 2013-2020☆

Abstract The paper provides an analysis of Romanias external debt vulnerabilities in the EU post-accession period based on existing indicators in this domain and taking into consideration structural challenges and critical values of debt thresholds. The main conclusion is that increasing external debt in Romania generates a series of vulnerabilities related to the risk of financial distress and low capacity to pay back the principal and debt service. The paper contains a set of proposals concerning the factors of improving debt sustainability in Romania taking into consideration the impact of trade balance, foreign direct investment, crediting of households and private companies with denomination in foreign currency and lei, contribution of labour force employment. The paper highlight the necessity of periodical reviewing the sustainability factors of external debt in accordance with the changes in the quality of policy-mix and administration institution and economic efficiency.

Cultural Heritage Management (CHM) and the Sustainable Development Requirements

The paper reveals some important characteristics of cultural heritage management (CHM) vis-a-vis the recent requirements of sustainable development (SD) taking into consideration the economic, social and environmental pillars of SD and the necessity of an adequate system of CHM indicators. The general conclusions are that CH, if well managed, represents an asset for a national economy with important contribution to GDP growth, employment and quality of life.

Romania's Sustainable Development Requirements from the Viewpoint of Regional Economic Bank's Crediting☆

Abstract This paper is trying to highlight some qualitative and quantitative characteristics of the relationship between regional GDP and loans, both in foreign exchange and lei, for Romania. Taking into consideration the vital importance of funding the national economy by crediting, especially under crisis and after crisis circumstances, we analyzed the influence of regional loans in lei and foreign currency on the size of GDP at county level. The main objective is to establish the relationship or the extent to which the magnitude of regional crediting is connected with the level of economic and social development of counties. On the other hand we tried to identify several groups of counties depending on the size of their credit relative to national average. We regressed GDP on loans in foreign exchange and in lei, using up to two years lags. The main result is that, as expected, both loans in foreign exchange and in lei have positive and statistically significant influence on GDP at county level. We also found that all lagged regressors are statistically insignificant and only the contemporaneous variables influence the GDP. This suggests that loans are not an important investment channel in Romania, since they are mainly used for consumption, debts payment and have only short-term multiplier effects on local economies.

Current and Long Run Challenges of Romania's External Debt Sustainability☆

Abstract The paper is trying to stress the high level of Romanias external indebtedness, both sovereign and private, associated with an unpredictable economic environment and an unfavourable global and regional context. The research objectives are mainly devoted to quantitative and qualitative assessments of the current and long run challenges of the external debt sustainability faced by Romania. The results of the study highlight inter-conditional ties between short-term and medium-long term debt, public and private debt, internal and external public debt. The increase in the long-term external debt stock (more than two times during 2007-2013) led to a significant rise in the related annual service (17.8% of GDP in 2013), deteriorating the financial framework of Romania and the growth perspectives. Excessive levels of the external debt and critical debt-to-GDP ratio are recorded in the case of Romania as compared to international standards. Despite large external borrowings, due to the lack of their efficiency, the results in terms of economic development are much below expectations. The easiness of recursion to external borrowings by the government and the debt rollover year by year contravene to intergenerational ethics.

Shadow Economy and Economic Growth in Romania. Cons and Pros

Abstract Shadow economy (SE) represents a complex phenomenon, which is having undoubtedly many negative sides and undesirable implications upon economy and society, but might also have some good effects, offering social self-protection and alternative solutions for unemployment, insufficient consumption and investment in the official economy, etc. Since the attempts to analyze SE based on only one indicator may be misleading, we developed a new synthetic index of SE that includes three relevant indicators: SE measured in euro per inhabitant, SE as percentage of GDP and SE of each EU member state as percentage of the total EU-28 shadow economy. We analyse these three indicators, as well as the synthetic index of SE, for Romania, over 1999-2012. The synthetic index of shadow economy is further introduced into an econometric model in order to assess its impact on the Romanias economic growth. We have tested the links between shadow economy and economic growth in Romania and found a cointegrating relationship, suggesting that SE is consistently related to the official economy and they display similar trends on the long-run.

Impact of Foreign Trade on Romania's Economic Sustainability During the Pre- and Post-accession Periods☆

Abstract The paper presents some aspects of Romanias foreign trade impact on the sustainability of the national economy during the pre- and post-accession periods laying emphasis on the trade balance, the influence of foreign direct investments and the trends of the revealed comparative advantages indices of Romanias export within the intra- and extra-EU27 trade. The research poses the issue of Romanias economic decline and of its slow recovery taking into account the effects of the incipient integration stages, corroborated with those of the international financial crisis which broke out in 2008. The main conclusion of the research reveals that both foreign trade and FDI at macroeconomic level failed to counteract the negative effects of the economic crisis in Romania and did not contribute to Romanias sustainability and convergence. The decline recorded by Romanias GDP in the years 2009 and 2010 was still not recovered by 2013 even if exports and imports exceeded the pre-crisis maximum level.

Oustanding Aspects of Sustainable Development and Competitiveness Challenges for Entrepreneurship in Romania

Abstract Taking into consideration the increasing role of entrepreneurship for the sustainability and competitiveness of an economy, the paper highlights the main characteristics of entrepreneurs in Romania from the demographic, economic and social viewpoints, age, labour skills, education, urban and rural areas gender, income levels etc. Based on a set of specific indicators, our research try to identify the main obstacles and difficulties the entrepreneurship in Romania is confronted with as well as to find out the solutions for solving them by adequate policies, instruments, economic and financial mechanisms. In this context, it is revealed the importance of promoting the mentality in favor of entrepreneurship behaviour of Romanians as well as of a better financial support for SMEs.