IDEAS home Printed from https://ideas.repec.org/a/cxa/eu2025/v1y2025i1p417-431.html

The Impact Of The Financial And Pandemic Crises On The Romanian Business Environment

Author

Listed:
  • Alexandra Tanasa

    (Alexandru Ioan Cuza University of Iasi)

  • Diana-Elena David

    (Alexandru Ioan Cuza University of Iasi)

Abstract

Over time, the emergence of various types of crises (e.g., financial, geopolitical, pandemic, energy crisis) has significantly impacted the business environment in almost all countries. The influence of crises has been extensively studied in the academic literature both at the microeconomic and macroeconomic levels, from various perspectives; however, the complexity of the phenomenon still offers opportunities for further research. Studies in the literature have shown that crisis periods have influenced numerous domains such as the economy, accounting, banking and financial system, politics, and the labour market. This paper aims to analyse the influence of the major crises from the past 20 years on the business environment in Romania. In this regard, we considered the most representative crises for Romania the economic crisis of 2007 2008 and the crisis generated by the COVID-19 pandemic during the period 2020 2022. In order to achieve the purpose of the paper, we conducted an exploratory study to investigate the trends generated by periods of crisis on how economic uncertainty, imposed restrictions, and legislative changes have influenced business decisions regarding establishment, continuation, suspension, or business closure. We used statistical data provided by the National Trade Register Office regarding the registration of legal entities, active registered professionals, business suspensions, dissolutions, removals from the registry, and insolvency proceedings. The statistical data available and analysed in this paper cover the period 2009 2024. The results of the study highlighted that the COVID-19 pandemic did not have a significant impact on the number of registrations of entities, suspensions, removals, and insolvencies in Romania during the period 2008 2024. However, the economic crisis of 2007 2010 had a major influence both on the number of temporary activity suspensions and on the number of insolvencies and even business closure.

Suggested Citation

  • Alexandra Tanasa & Diana-Elena David, 2025. "The Impact Of The Financial And Pandemic Crises On The Romanian Business Environment," EUFIRE Conference Proceedings Series, Alexandru Ioan Cuza University Publisher, vol. 1(1), pages 417-431, October.
    • Handle: RePEc:cxa:eu2025:v:1:y:2025:i:1:p:417-431
    DOI: 10.47743/eufire-2025-1-32
    as

    Download full text from publisher

    File URL: https://eufire.uaic.ro/wp-content/uploads/2025/12/32_Tanasa_David_417_431.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.47743/eufire-2025-1-32?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Julian Oliver Dörr & Georg Licht & Simona Murmann, 2022. "Small firms and the COVID-19 insolvency gap," Small Business Economics, Springer, vol. 58(2), pages 887-917, February.
    2. Lesi Hertati & Wahyudin Zarkasyih & Harry Suharman & Haryono Umar, 2019. "The Effect of Human Resource Ethics on Financial Reporting Implications for Good Government Governance (Survey of Related Sub-units in State-owned Enterprises in SUMSEL)," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 267-276.
    3. repec:rnp:ecopol:09111 is not listed on IDEAS
    4. Cooper, Russell & Haltiwanger, John & Willis, Jonathan L., 2007. "Search frictions: Matching aggregate and establishment observations," Journal of Monetary Economics, Elsevier, vol. 54(Supplemen), pages 56-78, September.
    5. Arlindo Madeira & Teresa Palrão & Alexandra Sofia Mendes, 2020. "The Impact of Pandemic Crisis on the Restaurant Business," Sustainability, MDPI, vol. 13(1), pages 1-13, December.
    6. Witold J. Henisz, 2002. "The institutional environment for infrastructure investment," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(2), pages 355-389.
    7. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    8. Russell Cooper & John Haltiwanger & Jonathan L. Willis, 2007. "Implications of Search Frictions: Matching Aggregate and Establishment-level Observations," NBER Working Papers 13115, National Bureau of Economic Research, Inc.
    9. Robert Fairlie & Frank M. Fossen & Reid Johnsen & Gentian Droboniku, 2023. "Were small businesses more likely to permanently close in the pandemic?," Small Business Economics, Springer, vol. 60(4), pages 1613-1629, April.
    10. Peter J Buckley, 2002. "Is the International Business Research Agenda Running Out of Steam?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 365-373, June.
    11. Berger, Allen N. & Saunders, Anthony & Scalise, Joseph M. & Udell, Gregory F., 1998. "The effects of bank mergers and acquisitions on small business lending," Journal of Financial Economics, Elsevier, vol. 50(2), pages 187-229, November.
    12. David North & David Smallbone, 2006. "Developing entrepreneurship and enterprise in Europe's peripheral rural areas: Some issues facing policy-makers," European Planning Studies, Taylor & Francis Journals, vol. 14(1), pages 41-60, January.
    13. Crane, Leland D. & Decker, Ryan A. & Flaaen, Aaron & Hamins-Puertolas, Adrian & Kurz, Christopher, 2022. "Business exit during the COVID-19 pandemic: Non-traditional measures in historical context," Journal of Macroeconomics, Elsevier, vol. 72(C).
    14. Alicia M. Robb & David T. Robinson, 2014. "The Capital Structure Decisions of New Firms," The Review of Financial Studies, Society for Financial Studies, vol. 27(1), pages 153-179, January.
    15. Lesi Hertati & Marlina Widiyanti & Desfitrina Desfitrina & Afriapollo Syafarudin & Otniel Safkaur, 2020. "The Effects of Economic Crisis on Business Finance," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 236-244.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandro Gavazza & Simon Mongey & Giovanni L. Violante, 2018. "Aggregate Recruiting Intensity," American Economic Review, American Economic Association, vol. 108(8), pages 2088-2127, August.
    2. Lechthaler, Wolfgang & Merkl, Christian & Snower, Dennis J., 2010. "Monetary persistence and the labor market: A new perspective," Journal of Economic Dynamics and Control, Elsevier, vol. 34(5), pages 968-983, May.
    3. Reischmann, Markus, 2016. "Creative accounting and electoral motives: Evidence from OECD countries," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 243-257.
    4. Nicolas Roys, 2016. "Persistence of Shocks and the Reallocation of Labor," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 22, pages 109-130, October.
    5. Bai, Hang, 2021. "Unemployment and credit risk," Journal of Financial Economics, Elsevier, vol. 142(1), pages 127-145.
    6. Ryan Michaels & David Ratner & Michael Elsby, 2016. "Labor Market Frictions and Aggregate Employment," 2016 Meeting Papers 770, Society for Economic Dynamics.
    7. Santiago Camara, 2022. "Granular Linkages, Supplier Cost Shocks & Export Performance," Papers 2203.07282, arXiv.org.
    8. Arwan Gunawan & Winwin Yadiati & Harry Suharman & K. Poppy Sofia, 2020. "Linkages to Budgetary Control and Budgetary Absorption Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 304-316.
    9. Boese-Schlosser, Vanessa A. & Eberhardt, Markus, 2024. "Democracy Doesn’t Always Happen Over Night: Regime Change in Stages and Economic Growth," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Forthcomi, pages 1-29.
    10. Russell Cooper & Guan Gong & Ping Yan, 2015. "Dynamic labor demand in China: public and private objectives," RAND Journal of Economics, RAND Corporation, vol. 46(3), pages 577-610, September.
    11. repec:spo:wpmain:info:hdl:2441/9d007rc2q9huruni0kde2vr73 is not listed on IDEAS
    12. Daniel Borowczyk-Martins & Etienne Lalé, 2019. "Employment Adjustment and Part-Time Work: Lessons from the United States and the United Kingdom," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(1), pages 389-435, January.
    13. Sebastian Graves, 2023. "The State-Dependent Effectiveness of Hiring Subsidies," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 229-253, April.
    14. Michael W. L. Elsby, 2008. "Marginal Jobs, Heterogeneous Firms, & Unemployment Flows," NBER Working Papers 13777, National Bureau of Economic Research, Inc.
    15. Ryan Michaels, 2013. "The Joint Dynamics of Capital and Employment at the Plant Level," 2013 Meeting Papers 1189, Society for Economic Dynamics.
    16. Zhou, Nan & Sun, Ruohan, 2024. "Coping with the storm: The role of fintech in SME survival," International Review of Financial Analysis, Elsevier, vol. 93(C).
    17. Markus Reischmann, 2016. "Empirical Studies on Public Debt and Fiscal Transfers," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 63, April.
    18. Nezih Guner & Alessandro Ruggieri, 2021. "Misallocation and inequality," Discussion Papers 2021/01, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    19. Pauline Carry, 2022. "The Effects of the Legal Minimum Working Time on Workers, Firms and the Labor Market," Sciences Po Economics Publications (main) hal-04067393, HAL.
    20. John Haltiwanger & Henry Hyatt & Erika McEntarfer, 2018. "Who Moves Up the Job Ladder?," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 301-336.
    21. A. Kerem Co?ar & Nezih Guner & James Tybout, 2016. "Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy," American Economic Review, American Economic Association, vol. 106(3), pages 625-663, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cxa:eu2025:v:1:y:2025:i:1:p:417-431. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mihaela Tofan (email available below). General contact details of provider: https://www.editura.uaic.ro/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.