IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Interdependencies Between Gross Capital Formation, Economic Growth And External Equilibrium In The Context Of The European Union Enlargement

  • Florin-Marius PAVELESCU


    (Institute of National Economy)

In this paper, having in view the hypothesis that the synthetic indicator of accumulation regime is the gross capital formation/GDP ratio, an improved analysis methodology of correlation between the above-mentioned indicators is proposed. The proposed methodology is applied for the 1999-2006 periods in case of 27 countries that now are belonging to European Union. It is revealed that in most of EU member states the main factor of correlation was the investment propensity growth, in conditions of external commercial balance worsening. Also, there are identified some asymmetries between the old (EU-15) and new (NMS) member countries of the European Union. In EU-15 the gross capital formation has a more reduced weight in GDP and domestic demand in comparison with NMS. Also, the foreign commercial balance register as a rule a surplus in EU-15 and deficits in NMS. On this base, it is concluded that for Romania, like the majority of new members-states, it is very important to adopt measures favouring a high growth rate of GDP at the same time with the decrease in foreign commercial deficits.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Institute of National Economy in its journal Romanian Journal of Economics.

Volume (Year): 27 (2008(XVIII))
Issue (Month): 2(36) (December)
Pages: 79-94

in new window

Handle: RePEc:ine:journl:v:2:y:2008:i:36:p:79-94
Contact details of provider: Postal: Casa Academiei, Calea 13 Septembrie nr.13, sector 5, Bucureşti 761172
Phone: 004 021 318.24.67
Fax: 004 021 318.24.67
Web page:

More information through EDIRC

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.:

as in new window
  1. Engelbert Stockhammer, 2007. "Some Stylized Facts on the Finance-Dominated Accumulation Regime," Working Papers wp142, Political Economy Research Institute, University of Massachusetts at Amherst.
  2. Florin-Marius PAVELESCU, 2008. "Gross Capital Formation And Economic Growth During Early 2000’S In Eu-Member And Candidates States," Romanian Journal of Economics, Institute of National Economy, vol. 26(1(35)), pages 166-179, June.
  3. Madsen, Jakob B., 2002. "The causality between investment and economic growth," Economics Letters, Elsevier, vol. 74(2), pages 157-163, January.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:2:y:2008:i:36:p:79-94. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valentina Vasile)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.