Analysis Of Economic Gaps Between Urban And Rural Romanian Areas

In this paper the authors will perform a comparative analysis of the impact that the population residential areas have on the economic and social activity from Romania. Our analysis will be carried out for a time span of 10 years, between 2000 and 2009. The main purposes are to emphasize the economic gaps between the residential areas (urban and rural) and to identify the factors that determine these gaps. The economic differences between rural and urban areas and their impact on the peoples' standard of living represent an important issue for international institutions like IFRC, UNICEF or OECD. Also, this topic represents a frequent subject in the economic literature from poor and developing countries. Studies conducted by Huong and Booth (2010), Alister, Alana and Ayele (2007), Chao, Zhidong and Mingxing (2008), Mateoc-Sîrb, Mateoc, Darva?i and Manescu (2008) or Sahn and Stifel (2002) are representative examples. Most of these papers focus on the living standards differences generated by the differences between income and expenditures between urban and rural areas. To achieve our goals, we will use the statistical methods to analyze the data released by the National Institute of Statistics. We will try to find some correlations between the economic indicators - household incomes, value and structure of household expenditures, structure of household expenditures - the social indicators - residential area, education level, age and occupation. The highlight of the gaps between the rural and urban areas will be the main objective during this analysis. We conclude that in Romania there are substantial differences between rural and urban areas. The income differences are determining different consumption patterns between rural and urban persons. In rural areas, the population is spending less in all goods and services aspect that reduce their standard of living. Anyway, the results obtained are the subject of at least two possible limits. The fact that the data series are too short may affect the results we have obtained. Also, the economic gaps analyzed represent an average for the whole country, what means that in some regions these differences may be even higher.