Volume 34 / 2012
COMPARATIVE ADVANTAGE METRICS OF ROMANIA'S EXPORTS IN THE PERIOD 2007-2010
Gheorghe ZAMAN, Valentina VASILE
Abstract. The research work consists of two parts. In the first theoretical part we analyse the formulae of revealed comparative advantages (RCA) and of the Grubel-Lloyd indices as an analysis instrument of international specialisation and of inter- and intra-industry one of national economies. The second part analytically presents the outcomes of computing the two indicators in the case of the Romanian economy in the post-accession period 2007-2010 by making use of the Eurostat database for intra and extra EU-27 trade by the nine SITC (Standard International Trade Classification) Rev. 4 categories.
Keywords: exports; revealed comparative advantages (RCA); Grubel-Lloyd Indices; inter &intra-industry international specialization.
JEL Classification: F02; F4; F12; F14.
PROJECT ABANDONMENT, CORRUPTION AND RECOVERY OF UNSPENT BUDGETED PUBLIC FUNDS IN NIGERIA
Richard INGWE, Walter A. MBOTO, Edem E. EBONG
Abstract. Large amounts of unspent funds budgeted for implementing development projects have been recovered from Nigeria's public officials since President Yar Adua directed in 2007 that responsible Nigerian Ministries, Departments and Agencies (MDAs) must refund such funds at the end of every fiscal year. While unspent funds recovery represents some progress in the "war on corruption" entrenched by previous governments in the 1980s, the current policy limited by concentrating narrowly on recovery of financial resources thereby excluding accounting for other project resources (human skills application, time management or optimization among others) that are usually applied to project implementation but lost through public officers' failure and/or delays to implement planned projects. This article examines the magnitude of unspent funds recently recovered by the government from its various ministries, departments and agencies (MDAs). The general objective of this article is to contribute towards improving the development project management culture in Nigeria. The specific objectives are: To highlight the magnitude of unspent funds in Nigeria's MDAs; and to show some adverse consequences of failing (or delaying) to spend funds allocated in the budget for implementing projects in economic sectors and on the pursuit of development objectives. Survey and description methods were used. Data on the refund of unspent funds was obtained from secondary sources (records of MDAs) and analysed using qualitative and simple quantitative techniques. Results show that a high rate of projects delay and /or abandonment was discovered shortly after the inauguration of President Yar' Adua and his administration in May 2007. Although some project funds have been recovered, other project resources (time wasted, human skills/hours) and development benefits that would have accrued from completion of the planned and financed projects have not been recovered but lost. The fact that most of the abandoned and/or delayed projects were to be implemented in key sectors such as electricity (power) supply, construction of roads and other works, petroleum, oil and natural gas development (which forms the major sources of revenue for the Nigerian economy, education, health and so forth), represents huge opportunity losses arising from losses of development benefits and spin-offs that would have accrued from the various economic sectors of Nigeria's economy. The implication of these findings for policy includes the need to include all project resources in the list of the recovery and resource accounting effort of the government's anti-corruption programme.
Keywords: unspent funds; budget; opportunity losses; anti-corruption; infrastructure; accountability.
JEL Classification: H53; H54; I16; I28.
ANALYSIS OF ECONOMIC RISK IN EUROPEAN INVESTMENT PROJECTS
Margareta Stela FLORESCU
Abstract: Risk is a reality of the economic environment, with consequences which cannot always be foreseen or anticipated. Risk management becomes more stringent as potential exo/endogenous vulnerability factors are rapidly increasing. Identifying risk areas, structuring risk factors and defining their probability, optimal management of resources in order to reduce risk factors, creating alternatives for each high-probability risk factor are part of project risk management. Risk is quantified through probability and incidence and is assessed using quantitative and qualitative methods.
Keywords: risk; risk management; risk methods; risk analysis in European projects.
JEL Classification: C44; D81; G31.
INDUSTRIAL R&D INVESTMENT IN EU: RECENT TRENDS AND LESSONS FOR ROMANIA
Gheorghe ZAMAN, Zizi GOSCHIN
Abstract: R&D and innovation are broadly acknowledged as the main drivers of an economy's competitiveness and growth and the measures to encourage investment in research are a central part of economic policies. This paper addresses the question of R&D investment by the private sector and aims at investigating its economic effects in terms of profit and net sales increase for the top 1000 R&D industrial investors based in the EU.
Keywords: R&D investment; industry; EU.
JEL Classification: O32; L19.
ISSUES ON THE ROLE OF EFFICIENT WATER PRICING FOR SUSTAINABLE WATER MANAGEMENT
Simona FRONE
Abstract: This paper aims to highlight some of the main issues raised by developing and implementing the most appropriate approach to water pricing, and to induce a sustainable water management. Therefore, we define the concept and utility of water demand management as one objective of efficient water pricing. Next we analyse the basic economics and some important theoretical insights of water pricing.
We further with state the main four inter-correlated principles of sustainable water pricing (full-cost recovery, economic efficiency, equity and administrative feasability) and the trends and challenges of their actual implementing in the water pricing policy of Romania and other EU countries.
We end with a review of opinions, personal conclusions and recommendations on the actual opportunity, effectiveness and role of efficient water pricing in fulfilling the goals of sustainabilty.
Keywords: sustainable water management; demand management; efficient water pricing; sustainable cost recovery; equity.
JEL Classification: L95; Q25.
ORGANISATIONAL BEHAVIOUR IN THE KNOWLEDGE-BASED SOCIETY - A ROMANIAN CONTEXT APPROACH
Laura-Maria DINDIRE, Valeriu IOAN-FRANC
Abstract: In the field of scientific knowledge, through this research topic, we have aimed at building an index to diagnose organisational behaviour in the knowledge-based society. Regarding the empirical research plan, the originality of the work is that of presenting a qualitative study that allowed for an outline of the Romanian context of organisational behaviour in this society. Among the qualitative methods with phenomenological, comprehensive orientation of the scientific research methodology, we used the focus group, and to identify Romania's position in international rankings that identify progress towards the knowledge-based society, we used the qualitative content analysis. The research was performed through secondary data analysis collected in reports and studies of international organisations.
Keywords: knowledge-based society; creative economy; organisational behaviour index in the knowledge-based society; knowledge-based organisation; national context.
JEL Classification: 030; M10.
GROWTH AND DECLINE OF URBAN AREAS IN ROMANIA
Daniela ANTONESCU, Florina POPA
Abstract: The urbanisation process in Romania followed a variable growth trajectory (that intensified), stagnation and, in the last period, a slightly decreasing trend. Thus, the years between the sixties to the nineties were characterised by marked development, concomitantly with population increase in small- and medium-sized towns. After the year 1990, the developments were different from one urban area to another: some succeeded in adjusting quicker to the new conditions; others were overwhelmed by the new town status. Currently, they are facing a series of problems triggered both by internal factors (urban agglomeration, pollution, built-environment deterioration, decrease in living standards quality, etc.), and external ones (EU integration, globalisation, financial crisis, etc.).Currently, urban areas draw increasingly more attention due to their important potential and to the role played in the current integration and economic and social cohesion process. The present article intends to capture the urbanisation process evolution in Romania and to identify current difficulties and opportunities confronting these areas.
Keywords: urban regions; cities; regions.
JEL Classification: R11; R12; F02.
SOME CONSUMPTION BOUNDARIES IN THE STANDARD FRAMEWORK DURING TRANSITION
Livia CHISAGIU
Abstract: Comparative to standard consumption based on the theory of permanent income within a functional, mature market economy, we have identified for the population's households consumption in Romania during transition some boundaries in this respect:
- Firstly, the existence of a completely imbalanced structure of expenditures having as dominant the food consumption;
- Consequently, an exaggerated ratio between two large expenditure segments which we have designated as compulsory expenditure/optional expenditure, to the detriment of the second segment;
- Finally, probably the most important feature was the high contribution on sub-periods (of incomes and monetary expenditures decreases) of selfconsumption in satisfying the consumption needs which triggered for a good part of them the satisfaction outside market transactions, self-consumption building itself into a substitute of negative saving.
Keywords: self-consumption; positive saving; negative saving; compulsory expenditure/optional expenditure.
JEL Classification: D11; D12.
IMPLICAȚII ECONOMICE ÎN ÎNVATATURA SFINTEI TRADIȚII A BISERICII ORTODOXE
Radu MARIAN
Abstract: The basis of the economic implications in the Sacred Tradition of the Ortodox Church consist in the socio-economic realities that confronted the Church from the very beginning, besides the endeavours made by the Holy Fathers to give responses, both subjective (through written works, rules, etc.) and objective (Synod's decisious, liturgical collections, etc.) to material developments.Economics in the Church's Tradition is a miraculous one, dependent on Divinity, which achieves maximum effectiveness by filtering the economic deeds of any kind in following and fulfilling the rules of Christian Ethic.
Keywords: tradition; church; economics; morality.
JEL Classifications: I0; I2; N0; P0; A1; N4; Z12.