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Structural Fund Absorption: A New Challenge For Romania?

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Author Info
Zaman, Gheorghe (Institute of National Economy, Corresponding Member of the Romanian Academy)
Georgescu, George () (Institute of National Economy, Romanian Academy)

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Abstract

Many European countries, especially during the early post-accession years, have faced difficulties in absorbing the structural funds from the EU budget, the most cited reasons being generated by the lack of a coherent long-term vision of the authorities, insufficient resources to co-finance projects, low dministrative capacity at central and local levels, lack of inter-institutional coordination, failures of public-private partnerships, insufficiently skilled human resources, causes which can undoubtedly be noticed also in the case of Romania. By a strategic approach starting from the HEROM econometric model (the Romanian version of the HERMIN model) the study tries to assess the macroeconomic effects of structural funds on foreign trade in cases of different absorption rates, finding that these funds have a stronger impact on export growth as compared to that of imports. The EU structural funds absorption represents an opportunity to sustain economic growth and to reduce the development gap which, under the circumstances of global recession, is becoming a new challenge for Romania.

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Publisher Info
Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): 6 (2009)
Issue (Month): 1 (March)
Pages: 136-154
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Handle: RePEc:rjr:romjef:v:6:y:2009:i:1:p:136-154

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Related research
Keywords: European integration; economic and social cohesion policy; structural funds; absorption capacity; economic development; econometric models;

Find related papers by JEL classification:
C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Other Model Applications
F15 - International Economics - - Trade - - - Economic Integration
F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Andrej Horvat, 2005. "Financial Absorption Rates in EU Objective 1 1994-99 and Some Lessons for the New Member States in 2004-2006," WIFO Working Papers 259, WIFO. [Downloadable!]
  2. Fritz Breuss, . "Macroeconomic Effects of EU Enlargement for Old and New Members," WIFO Working Papers 143, WIFO. [Downloadable!]
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This page was last updated on 2009-11-17.


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