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Romania’s development level comparing with EU countries: The RGS (Relative Gap Scoring) Ranking Index

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Author Info
Albu, Lucian-Liviu
Georgescu, George
Ghizdeanu, Ion

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Abstract

The main objective of Romania’s post-accession strategy stands for the convergence with the EU Member States. If the nominal convergence (low inflation rate, stability of the exchange and interest rates, contained public debt) seems more easily to be achieved, the real convergence is supposed to catch up structural gap, connected more or less to issues belonging to the development process approach. The study aims at comparative assessment of Romania’s development level within UE 27, proposing a composite index, called Relative Gap Scoring (RGS). This method is based on a scoring calculation depending on the quotient of each indicator level for a certain country and of the country’s ranked first for the respectively indicator, having the advantage to evidence the relative gaps and providing a synthetic image of their resultant. The RGS index has been constructed by the geometric aggregation of scoring resulted for 10 economic and social indicators, considered relevant for the prospective of real convergence. Examining Romania's position within the ranking of EU countries according to the RGS index, the study found that large gap of the current state of economic and social development of our country still remain. Nevertheless, it is worth mentioning that Romania stood at 42.5 percent of the EU average in 2007, while in relation to GDP per capita (PPS) at 40.4 percent, which reveals that, in terms of real convergence, the time horizon of catching up with EU countries could be shorter.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10170.

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Date of creation: 25 Aug 2008
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Handle: RePEc:pra:mprapa:10170

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Related research
Keywords: Economic and Social Development; International Comparisons; Composite Indexes; Statistical Methods;

Find related papers by JEL classification:
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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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. Argentino Pessoa, 2007. "Innovation and Economic Growth: What is the actual importance of R&D?," FEP Working Papers 254, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  2. J. Ram Pillarisetti & Jeroen C.J.M. van den Bergh, 2008. "Sustainable Nations: What do Aggregate Indicators tell us?," Tinbergen Institute Discussion Papers 08-012/3, Tinbergen Institute. [Downloadable!]
  3. Andrew Sharpe, 2004. "Literature Review of Frameworks for Macro-indicators," CSLS Research Reports 2004-03, Centre for the Study of Living Standards. [Downloadable!]
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