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Regional Disparities and Fiscal Policy Challenges in Romania's Economic Growth Trajectory

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  • Daniel Stadoleanu

    (Dunarea de Jos University of Galati, Romania)

  • Mihaela Neculita

    (Dunarea de Jos University of Galati, Romania)

Abstract

This paper investigates the relationship between fiscal policy and regional economic growth disparities in Romania, a country characterized by persistent territorial imbalances. While regional convergence remains a strategic objective of national and European policies, fiscal instruments have not always been effectively tailored to address local structural challenges. The study proposes a conceptual and methodological framework that integrates both the direct and indirect effects of fiscal policy on regional performance. The theoretical model developed in this research emphasizes two primary transmission mechanisms. The productive-budgetary channel, through public investment in infrastructure, health, or education, and the fiscal incentive channel, through tax burden adjustments that influence private investment and entrepreneurial dynamics. To reflect this dual influence, the model incorporates key fiscal variables, structural factors, and macroeconomic control variables. By constructing a multidimensional model rooted in contemporary economic literature, the study lays the groundwork for empirical testing of the hypothesis that differentiated fiscal policy, when adapted to regional realities, can reduce economic disparities and foster sustainable development. The framework contributes to ongoing policy debates by offering a theoretically robust basis for designing fiscal interventions that promote regional convergence in Romania.

Suggested Citation

  • Daniel Stadoleanu & Mihaela Neculita, 2025. "Regional Disparities and Fiscal Policy Challenges in Romania's Economic Growth Trajectory," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 134-138.
    • Handle: RePEc:ddj:fseeai:y:2025:i:2:p:134-138
    DOI: https://doi.org/10.35219/eai15840409520
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    References listed on IDEAS

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    1. Stefano D’Angelo & Angelo Cavallo & Antonio Ghezzi & Francesco Di Lorenzo, 2024. "Understanding corporate entrepreneurship in the digital age: a review and research agenda," Review of Managerial Science, Springer, vol. 18(12), pages 3719-3774, December.
    2. Mihaela Onofrei & Florin Oprea & Corneliu Iaţu & Lenuţa Cojocariu & Sorin Gabriel Anton, 2022. "Fiscal Decentralization, Good Governance and Regional Development—Empirical Evidence in the European Context," Sustainability, MDPI, vol. 14(12), pages 1-15, June.
    3. Andrés Rodríguez-Pose & Roberto Ezcurra, 2010. "Does decentralization matter for regional disparities? A cross-country analysis," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 619-644, September.
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