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The new economic geography and regional policy in Romania

Author

Listed:
  • Raluca Irina CLIPA

    (“Gh. Zane” University, Iaşi)

  • Ion POHOAŢĂ

    („Al.I. Cuza” University, Iaşi)

  • Flavian CLIPA

    (“Gh. Zane” University, Iaşi)

Abstract

The aim of our paper is to capture, using logical analysis and graphic modelling, the implications of the new economic geography (NEG) in terms of regional policy in Romania, aiming to answer the question whether NEG and agglomeration economies should concern the policy makers in our country. The analysis of the macroeconomic model based on the interdependencies between regional disparities, agglomeration and economic growth shows that in the case of coreperiphery dual regional structured economies, the cohesion policy effects can be avoided, in that the central agglomeration will generate a higher growth rate at national level, but with the price of amplifying the existent regional disparities. One way of dampening this negative effect over Romania is to launch an innovation and knowledge-promoting policy, by developing regional innovation systems.

Suggested Citation

  • Raluca Irina CLIPA & Ion POHOAŢĂ & Flavian CLIPA, 2012. "The new economic geography and regional policy in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(8(573)), pages 5-18, August.
  • Handle: RePEc:agr:journl:v:8(573):y:2012:i:8(573):p:5-18
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    Cited by:

    1. Gheorghe Zaman & Zizi Goschin, 2014. "Economic Crisis and Wage Divergence: Empirical Evidence from Romania," Prague Economic Papers, University of Economics, Prague, vol. 2014(4), pages 493-513.

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