Why CEE Countries Remain Strongly Pro-European-Oriented? A Case Study - Romania and its Economic Benefits from the EU
Why CEE Countries Remain Strongly Pro-European-Oriented? A Case Study - Romania and its Economic Benefits from the EU

Author(s): Andrei Rădulescu
Subject(s): Politics / Political Sciences, Politics, National Economy, Supranational / Global Economy, Government/Political systems, Economic development, EU-Approach / EU-Accession / EU-Development
Published by: Институт друштвених наука
Keywords: EU integration; Romanian economy; production function
Summary/Abstract: Romania was the leader of the economic growth and development in Central and Eastern Europe over the past two decades, an evolution strongly influenced by the EU integration process. The GDP/capita at purchasing power parity as a weight of the Euro Area increased from around 20% in 2000 to above 60% in 2018, while the nominal GDP/capita outpaced EUR 10,000 last year. There can be noticed important differences between the pre-crisis and the post-crisis cycle. However, at present the Romanian economy is confronted again with the twin deficits challenge. On the other hand, the mid-run outlook maintains positive for Romania, an evolution supported by the recent contribution of the production factors to the dynamics of the potential GDP. In this paper we implement standard econometric tools in order to analyze the macro-financial developments in Romania over the past decades and to calibrate a mid-run macroeconomic scenario.

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