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Problems in the structure of Romania’s economy

Author

Listed:
  • Albu, Lucian-Liviu
  • Georgescu, George

Abstract

The study focused on the early stage of Romania’s transition to the market economy during 1990-1992, based on statistical data available at that time. Because of the inherited structural distortions, the persistence of strong forces of inertia and the incoherence of economic and monetary policies, the transition to the market economy has been delayed in the early 1990’. In the absence of an adequate outline for de-monopolization and privatization of the economy, the liberalization of prices did not lead to an efficient resources allocation; on the contrary, the structural imbalances between demand and supply have deepened. The fall in industrial output and its poor competitiveness, due to the dominant position of this sector, has pushed the whole economy into a severe recession. A more rigorous management of the reform program, based on realistic assessments of opportunities and resources, with the help of more investments, including by the increase in foreign investments, should foster structural adjustments towards improving industrial performances and implicitly smoothing the way to the market economy.

Suggested Citation

  • Albu, Lucian-Liviu & Georgescu, George, 1994. "Problems in the structure of Romania’s economy," MPRA Paper 29880, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:29880
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    File URL: https://mpra.ub.uni-muenchen.de/29880/1/MPRA_paper_29880.pdf
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    References listed on IDEAS

    as
    1. Mundell, R.A., 1991. "Stabilization Policies in Less Developed and Socialist Countries," Papers 5, United Nations World Employment Programme-.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    economic growth; transitional economies; structural adjustments; industrial restructuring; privatization; foreign investments; informal economy;

    JEL classification:

    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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