Volume 25 / 2007
THE INTENSITY OF USING PRODUCTION FACTORS IN ROMANIA. ESTIMATES FROM COBB-DOUGLAS AND CES MODELS
Gheorghe ZAMAN, Zizi GOSCHIN
Abstract: The production function explains the mechanism through which inputs are changed into outputs and the partial efficiency of labour and capital. It also allows for understanding the elasticity of substitution, which measures the percentage change in factor proportions due to a percentage change in the marginal rate of technical substitution. In this research we have used aggregate production functions of Cobb-Douglas type in different time-series and cross-section analysis of Romania's economic growth from the standpoint of the intensity of using capital and labour factors, as determinant elements for the level of production and GDP. We have also applied the two factor Constant Elasticity of Substitution (CES) production function, which is considered to be the generalised form of the Cobb-Douglas function. Using the available statistical data regarding Romania's economy in the 1990-2005 period, we have performed time-series and cross-section analysis based on the aggregated production functions at the national level.
Keywords: Production function; elasticity of substitution; Cobb-Douglas; CES; capital and labour; technological change.
JEL Classification: A11; C1; C16; C62; L16.
THE RELEVANCE OF INTERACTIONS IN INNOVATION SYSTEMS: HOW TO CONSOLIDATE THE FRAMEWORK
Mikel ZABALA-ITURRIAGAGOITIA, Fernando JIMENEZ-SAEZ
Abstract: Innovation Systems constitute an analysis framework which tries to identify the agents, and the interactions produced among them within an innovation system, endowing thus authorities of a tool for the definition of innovation policies. Accordingly, cooperation or interaction related practices become crucial. However, there is a need for the development and implementation of a more sophisticated measures and indicators as regards these interactive patterns, both from a theoretical and a quantitative approach. These papers aim at empirically contributing to highlight the relevance of these interactions. In order to do that, we first start by offering a clear taxonomy of the Spanish regions concerning R&D and innovation activities, to then analyse the extent to which interactions are relevant or not by considering, in this case, Spain as the unit of analysis between 1995-2002.
Keywords: Innovation Systems; Interactions; Innovation Networks, Measures.
JEL classification: O18; O32; O38.
INCOMES AND WORKING TIME - SUPPORT FOR QUALITY OF WORK AND EMPLOYMENT IN ROMANIA
Luminița CHIVU, Constantin CIUTACU, John HURLEY
Abstract: This paper contains a comparative analysis between living and working conditions in Romania and EU Member States, taking into account the differences between the existing regulations and the economic and social realities in these countries. Survey-based research on working conditions can prove valuable at a certain time if complemented with other data and facts regarding the particular socio-economic context and its changes in time. A strength of the surveys is their ability to show that working conditions do not automatically improve as a result of the implementation of the acquis communautaire or following the improvement of labour market regulations. Besides, levels of income constitute one of the main reasons for dissatisfaction among Romanian workers.
Keywords: Value of Life; Labour force and Employment; Public Policy.
JEL Classification: J17; J21; J38; M53; M55.
MEDIUM-TERM CHANGES IN THE STRUCTURE OF THE MONTHLY EARNINGS
Abstract: The paper represents a study of the labour market functionality through the employment degree and how much of the employment improvement is reflected in the wage revenues. The study is based on the analysis and forecast of the earnings structure by branches and regions and also by property forms, being structured in 4 chapters. Within the study the earning is analyzed starting from two reasons: first, the wage synthetically reflects the structural evolution of the labour market and, second, the wage conditions and influences the employment possibilities. An important part of the study is represented by the analysis of the correlation between employment and earnings, marking out some features. First, 2002-2006 represented the period with structural changes in employment, the wages evolution being independent of the economic context or of the labour market imbalances. Second, in regional and county profile the correlation between the employment structure and the evolution of the earnings is more lax than the national economy level. If for the regions the main explanation could be the structural homogeneity of the regional economies, at county level the determinant element is the economic gap. In the first years of the actual development cycle, even if the intercounty economic gaps have maintained or deepened, the improvement of the employment has adequately been reflected in the increase in the average wage revenues. The paper also presents some perspectives on the earnings structure, marking out the fact that until 2010 the gaps between regions - from the net average earnings point of view - will not significantly improve, but there will be created the conditions for a future decrease. This fact can be explained, on one hand, by the absorption of the community funds which will be more consistent after 2009 (it is about the project implementation, not the contract), and, on the other hand, because - in a first stage - the more developed areas will access easier the European funds, having resources and also project and implementation organization competencies, and for the fund allocation national projects (transport, education infrastructure, etc.) will be important.
Keywords: Employment, Wages; Wage structure; Wage differential; Vacancies.
JEL Classification: E24; J21; J31; J60.
MENTALITIES OF THE ROMANIANS BETWEEN THE TWO WORLD WARS
Emilian M. DOBRESCU
Abstract: Mentality is defined as an assembly of manners of acting or thinking about someone or something. Related to the history of mentalities in the 19th century the core elements were the building of the nation and the constitutional law and only at the beginning of the 20th century the economic development and the relations between social classes. Mentalities change hard and slowly. Therefore, quick leaps (social, economic, political and cultural) cannot be done within a population which is immersed in old mentalities. The traditional rural society is animated by religious dogmas and conceptions. Old mentalities of the population very often generate social unrest. In Romania between the two world wars these mentalities were the background of the future social changes imposed after the Soviet model and which continue to influence even today the development of the country. Enlightened minds of Romania concerned in the first decades of the 20th century about learning and evaluating the mentalities specific to our nation. Foreseeing the important and creative role of individuals for a nation on multiple levels, these free-thinking minds inferred the assembly of conscience and behaviour traits that build up the national characteristics of the Romanian nation. In a comparative regard of the studies quoted hereunder, that we might characterise as being of reference for characterising the mentalities of our nation in the period between the two World Wars of the 20th century, we may conclude that the Romanian nation pertains to the extended family of the European nations and world nations; demanding times endowed the Romanian nation and its representative with some negative behavioural traits, but which are not predominant; the Romanian's nature is positive, constructive and creative. A logical conclusion imposes itself: despite the relatively low number of population, along centuries, the Romanian nation still holds a place of honour in the world gallery of sciences and arts, with original, innovative, creative, unique ideas which added in furthering human knowledge towards new thresholds of progress and civilisation. Even if they had sometimes to face hardships of time and people alike, the mentioned priorities prove beyond any doubt the ancestral virtues of intelligence and investigative minds, the millennial creative and enduring genius of the Romanian nation. This is the specific of the Romanian nation which has not yet had its last word in the evolution of Humanity towards Good, Progress and Civilisation.
Keywords: history of mentalities, the nature and psyche of Romanians, Romanian mentality; new spirituality; European Spirituality.
JEL Classification: A13; B15; Z1.
ROMANIAN COMPETITIVENESS - A ROUGH RIDE TO CATCH UP WITH THE EU
Abstract: Our efforts of adjusting the political, economic, social and legislative systems emerged into a buoyant and dynamic economic environment after 2000. Still, with very few exceptions, the international classifications of the prosperity driving forces' performance push Romania to the European periphery. Escaping it is the roughest ride to catch up with the EU. We start with a short debate on what makes nations competitive and an overview of Romania's growth and productivity facts that make us lag behind the EU countries. We focus further on the key domestic policy challenges that Romania must address and on the competitiveness bench-marking worldwide. Finally, we provide specific recommendations for the economic competitiveness policy-making and institutional capacity in Romania, as well as for the efficient allocation of European funds oriented towards competitiveness.
Keywords: economic competitiveness; public policy-making; absorption of structural funds; international benchmarking.
JEL classification: O47; F15; F59; H5; J24.