Alexandru Florea Economic Development and Growth

Indicators of frugal victimisation Labor productivity burthen Machine tool industry in total industry heavy Machine tool exports in total exports Weighted Brain drainage in total export Weighted Employment in work Economic emersion is represented by the evolution of specific sparing magnatees, with benefits for the social and economic life, in a specific time and atomic yield 18a. The roughly kn possess index for calculating the economic growth is the bedspread/ capita. Types of economic growth Extensive economic growth- based on growing the spreadhead/capita by increasing the deed of workers, arable lands etc.Consolidated economic growth it would be realized at the global scale Zero economic growth is happening when the economic indexes and the world of the country are increasing with the aforesaid(prenominal) percentage. The single way that a state can achieve economic festering and growth is by use their economies to make investments. Economic development repr esents a qualitative process while economic growth is a quantitative one. However the processes of economic development and growth are produced con flow rate indeed they moldiness be considered together. The first fragmentize of the epitome leave behind result an over both picture of Romans economic performance.It running gameament be presented the current economic development situation and its growth during the analyze historic period. The second burst of the analysis represents an econometric exercise which will provide the connection mingled with GAP, urban Population and Employment. At the end of the exercise it will 3 be possible to predict values of GAP depending on Urban Population and the level of employment. The third objet dart of the analysis will provide information regarding the development lacks of Romans economy. The fourth part of analysis refers to Romania market inefficiency.It will provide the closely important issues well-nigh market failures in Roma nia. The one-fifth part of analysis includes the Development Policies. It will present the main targets to mend Romans economy for the next years. B. Analysis 1. Methodology For this analysis were chosen indexes from 5 areas Romania, Bulgaria, Germany, France and European Union. Besides Romania, which is the main subject of the analysis, it was chosen Bulgaria like a state with similar economic situation. Germany and France were chosen because they represent two of the or so developed country in Europe.In the same time they represent examples of how the economic situation should be in a developed country therefore Romania must achieve a close level to them in position to become a State with a developed economy. Nevertheless, only of them are member states of European articulation therefore all of them must gather to the same level, as result, it is absolutely necessary to include the European union indexes. First part of the analysis contains statistical results about the ec onomic development and growth situation in Romania. The analyzed period refers to 1990-2013.For this part there were seed information series, with annual frequency, from the official website of creative activity Bank. Second part of the analysis is represented by a linear retroflexion bewilder. For analyzing the coefficient of correlation between variables, were utilise data series (1991-2012), with annual frequency, from the official website of World Bank. The data refers only to Romania. The purpose of the exercise was to find the influence Of that urban population and employment have on GAP. The form of linear lapse model is AMPLE+?* POP 4 Where BIB unwashed domestic help Product AMPLE -? Employment POP the urban population percentageThe GAP was deflated referring to the year 2005 as the base year. Views was the soft used for exam and correcting the regression model. The intensity between the dependent variable and the independent variables was analyzed considering t he correlation coefficient R The sign efficacy of linear correlation coefficients was tried and true using t- audition Starting from the hypothesis HO the model is not sound and HI the model is valid, the validity of the regression model was mental testinged using the Fischer test.The models significance was tested with Wald test for testing the regression coefficients F test for testing the significance of the correlation ratio. graphic method, Durbin Watson test and Breach Godlier test for verifying the independence of the random errors. White test for verifying the homosexuality. -Jarred-Berea test for verifying the normality hypothesis. Third part of the analysis contains statistical results about the development lacks in Romania. The analyzed period refers to 1990-2013.For this part there were used data series, with annual frequency, from the official website of World Bank. Fourth part of the analysis contains statistical results about the market inefficiency in Romania. The analyzed period refers to 1990-2013. For this part there were used data series, with annual frequency, from the official website of World Bank. 5th part of the analysis presents the main targets of the current development policy. It represents a abstract of the Romania National Strategy for Development. 5 Economic Development and Growth Of Romania 2.Used data Gross Domestic Product According to Ryan Barnes The GAP is the predecessor of all macroeconomic indexes as an aggregate measure of the total economic product of a country, GAP represents the total value of goods and services produced by the economy, in a specific period. oftenness annual Source of poised data World Bank website Other changes *only for the regression model 1,000,000,000 Expressed in US$ Inflation Inflation is defined as a sustained increase in the general level of prices for goods and services. It is heedful as an annual percentage increase.As inflation rises, every dollar you own buys a smaller percen tage of a good or service. Frequency annual Expressed in percentage Urban population index According to National Statistic Office Urban population index refers to the worldly concern figure of people which live in urban areas Other changes *only for the regression model 1 ,OHO Expressed in percentage of the total population Employment index Employment index refers to the active population (15-64 years old) rate the ratio between the active population and the total number of people with the same age. Other changes *only for the regression model AMPLE( 1)= AMPLE(O)* 1,000 health Expenditure index Health disbursal refers to the sum of public and clandestine health using up. It covers the supplying of health services (preventive and curative), family planning activities, nutrition activities, and pinch aid assassinated for health but does not include provision of water and sanitation. It is calculated as the percentage of a nations GAP. Frequency annual Pupil-teacher index Pupil -teacher ratio the number of pupils enrolled in primary school dual-lane by the number of primary school teachers.Expressed in absolute number Public spending on education index Public disbursement on education as % of GAP is the total public expenditure (current and capital) on education expressed as a percentage of the Gross Domestic Product (GAP) in a given year. Public expenditure on education includes government spending on educational institutions (both public and private), education administration, and transfers/subsidies for private entities (students/households and other private entities) 7 3.Literature review approximately Romans Economy According to the Constitution of 1991, Economy of Romania is an economy based on supply and demand rule therefore it means that the state must ensure the freedom of trade and the fair competition. In 1 939 the most important branches of industry were the oil and natural gas industries. 6. 24 meg tons of oil was produced in Romania in 19 39 and the total exports of oil cute 56 million dollars. Furthermore, with a production slightly lower than Germany, Romania had a very good situation in terms of grain.However salt and baccy had also an important role for Romans economy during this period. Even if it was of poor quality, tobacco plant was the main source of income for the people from the Danube Plain. After more than four decades, at the end of 1 989, economy of Romania had the basic communist economy, in all branches of industry it was a state cooperative monopoly. Price, credits, salaries, the interest rate were directed y the single national plan without reflecting the supply and demand needs. On twenty-first of December 1 989 Romania had no external debt, the external debt was fully paying by the end of February 1989.