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Economic Specialization of Romanian Regions and Counties. Insights Drawn from Static and Dynamic Location Quotients

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  • zizi GOSCHIN

    (Department of Statistics and Econometrics, The Bucharest University of Economic Studies, Scientific Researcher, Institute of National Economy, Romania)

Abstract

Although being a simple measure of regional specialization, the location quotient is able to reveal the force, scope and emerging trends of the economic sectors acting in a region. Combining the information from static and dynamic location quotients allows to understand not only the relative importance of economic activities in a region, their current strengths and weaknesses, but also helps to identify the industries that have the potential to enhance regional development in the future. In addition, Herfindahl and Krugman indices are useful for assesing absolute and relative economic specialization at different regional levels. Using these statistical tools for analysing the economic structure of Romanian regions and counties, we found empirical evidence on important changes in regional specialization patterns in the context of the 2008-2010 economic crisis. There has been significant rise in absolute specialization of all Romanian regions, except for Bucharest-Ilfov Region, while relative specialization dissimilarities of regional economies from the national economy tend to level. Manufacturing seems to be the sector leading economic growth for most Romanian counties, in the wake of the crisis.

Suggested Citation

  • zizi GOSCHIN, 2020. "Economic Specialization of Romanian Regions and Counties. Insights Drawn from Static and Dynamic Location Quotients," Romanian Journal of Economics, Institute of National Economy, vol. 50(1(59)), pages 84-112, June.
    • Handle: RePEc:ine:journl:v:50:y:2020:i:59:p:84-112
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    More about this item

    Keywords

    regional specialization; static and dynamic location quotient; Herfindahl index; Krugman Index; Romania;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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