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Modelling The Economic Growth In Romania With The Solow Model

Author

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  • Caraiani, Petre

    (Institute for Economic Forecasting, Romanian Academy, Bucharest)

Abstract

In this study I make an estimation of the Solow model for the Romanian economy. Starting from the estimates of the parameters from other studies, I simulate the model both for the 1990-2004 period and in the long run. The study shows that the Solow model provides a good approximation of the dynamics of the Romanian economy for the 1990-2004 period, with respect to the dynamics of the aggregate GDP and to the ratios of the main macroeconomic variables, like production per worker, capital-output ratio or capital per worker. The simulation for the 2030 time horizon indicates a potential of growth of over 3%.

Suggested Citation

  • Caraiani, Petre, 2007. "Modelling The Economic Growth In Romania With The Solow Model," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(1), pages 77-88, March.
    • Handle: RePEc:rjr:romjef:v:4:y:2007:i:1:p:77-88
    as

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    References listed on IDEAS

    as
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    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. Caraiani, Petre, 2004. "Estimating Total Factor Productivity In The Romanian Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 1(1), pages 97-108, February.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic growth; productivity; transition;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects

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