Business Climate Survey In Romania Results And Analysis

This text focuses in the analysis of the business climate in Romania and some comparison with other states. Before the analysis was took place the survey conducted among employers of residents in 7 judets and 2 additional cities in the second half of 2003 and in two additional judets in the first half of 2004. The survey was realized by Bermangroup - international economic development consulting firm and the analysis also with University of Pardubice, Faculty of Economics and Administration. The objective of the survey was to provide useful and credible information concerning the attitudes of those who invest and create jobs in respective judets and cities. Survey items included the history and status of the business, the nature of its business, labor and employee matters, business facility information, government services and relations and overall impressions of a town and judet as a place to do business. Romania is becoming an attractive country for investors because of its available work force working for very low salaries. This is not sustainable model for further economic development, however the benefit of this comparative advantage has to maximized now. At the same time companies in Romania rank work force quality lower than in competing CEE countries (especially in Slovakia) where salaries are on a slightly higher but comparable level. The growing lack of skills (especially in technical professions, financial services and marketing) belongs also among important weaknesses of the Romanian economy. Companies complain about the situation in national economy in a similar way as Czech and Slovak firms did several years ago. On the other hand investment plans are very optimistic and predicted expansion (in relative figures) at current location is higher not only than in the Czech Republic and Slovakia but also higher than in the U.S.A.