Volume 33 / 2011

FREE COMPETITION THEORY AND THE SECRET AGREEMENTS BETWEEN COMPANIES. SAINT GOBAIN UNDER THE CHARGES OF CARTEL

Author: Andreas STAMATE

Abstract: The European view of economic competition, which is the European Parliament view and enforced by the European Commission does not have a coherent theory of efficiency in allocating resources and justice on a market. The positive law proceeds at incriminating and penalizing with arbitrarily fixed fines the players on different markets but not offering a definition of what competition or free market means, not to mention a theory of the firm. It delivers, of course, a sort of theory, but we argue that it is not coherent and moreover, pretends to be what it cannot possible be, namely free of any value judgments. The present paper exposes an alternative view to the theory used by EC when decided to fine with 1.4 billion euros the European car glass suppliers Saint-Gobain, Pilkington, AGC and Soliver for cartelizing, and it also presents the case from the perspective of free competition theory based on private property rights of owners.
Key words: cartel, secret agreement, welfare losses, free competition, property rights, competition public policy
JEL Classification: B53, D43, D61, L13, P14
 

SOME CHALLENGING (MACRO)ECONOMIC ASPECTS OF FDI IN ROMANIA

Authors: Gheorghe ZAMAN, Valentina VASILE, Mirela MATEI, Carmen CROITORU, George ENESCU

Abstract: The research intends to analyse a series of FDI effects on Romania from the viewpoint of structure, volume and dynamics by types, sectors and branches, development regions and origin countries, as well as the impact on the expatriated and reinvested earnings, trade balance, and profitability of economic agents with FDI, transfer prices, and competitiveness of exports. The outcome of the research highlights the overall negative trade balance of enterprises with FDI between the years 2007-2010, the relation between reinvested and expatriated profit, and the unfavourable impact of some energy traders on competitiveness. The importance of foreign investments in industry is highlighted, especially in the manufacturing industry and the unsatisfactory structure of FDI, which in Romania aims at the medium- and low-tech level branches.
Keywords: FDI; repatriated earnings; trade balance; state-owned transnational corporations, transfer prices
JEL Classification: F21; F23; F41; L32; L60
 

FINANCING INNOVATIVE SMALL AND MEDIUM SIZED ENTERPRISES IN TIMES OF CRISIS

Authors: Dejan ERIC, Isidora BERAHA, Sonja DJURICIN

Abstract: Small and Medium-sized Enterprises (SME) in general and particularly innovative ones are becoming an increasingly important factor on the road to achieving smart, sustainable and comprehensive development. Because of their propensity to innovative undertaking and risk, SMEs contribute significantly to economic growth but are generally less productive and pay the cost of high rates of death and lower rates of profitability. Financing SMEs is risky and uncertain and for innovative SMEs it is even more difficult to access financing. When financing innovative activities, investors perceive high risks and it is even more emphasized in times of crisis when there is an increase in the cost of capital. Institutional support and governmental programmes have an important role in closing financial gap that innovative SMEs are faced with. Because the survival and development of SMEs is to a great extant determined by their ability to access favorable financing, the main objective of this paper is to provide policy recommendations for promoting availability of financing to innovative SMEs in order to foster economic recovery and more dynamic development of Serbia. The recommendations are to emerge from analyzes and evaluation of currently available sources of finance for innovative SMEs.
Keywords: innovative small and medium-sized enterprises, economic growth and development, financing, risk, crisis
JEL Classification: L25
 

MANAGEMENT BENCHMARKS OF CULTURAL POLICY

Authors: Maria MOLDOVEANU, Valeriu IOAN-FRANC

Abstract: As public policy, cultural policy focuses on providing conditions for free and undisturbed exercise of cultural rights: right to culture and information, right to cultural identity, right of intellectual property protection, right of participation in cultural life, etc. Cultural rights are specified as a distinct class in the catalogue of international principles regarding culture created by The Cultural Diversity Network, consisting of ministers in charge from many countries such as: cultural heritage preservation, free movement of works and creators, dialogue between cultures, diversity promotion, etc.
In this respect, it defines also "the intervention areas" along with actions to be taken, so that each stage of cultural policy, understood as a process of continuous construction, should gain more value. Therefore, as public policy, cultural policy has an undisputed impact on urban/rural areas/territories, at least according to the authorities' intention to correct some discrepances as regards the number and location of cultural services in the community area, their equipping, easy access of inhabitants to cultural institutions, the density and representativity of the cultural life itself.
Key words: Cultural economics; Economics of the Arts and Literature; Public goods; Development Planning and Policy; Political economy.
JEL Classification: Z1; Z11; H41; O2; P16.
 

THE IMPACT OF THE CRISIS ON THE SME SECTOR IN ROMANIA - THE BACK-UP OF INNOVATION AND ENTREPRENEURSHIP DEVELOPMENT

Author: Zsuzsanna K. SZABO

Abstract: It is widely recognized that the economic recovery largely depends on the improvement of the SME sector. In the order to determine the opportunities and to analyze the challenges faced by Romanian SMEs in (post)crises period, the paper presents first a short review of the national economy and the role of the SME sector. The paper presents also the situation of the SME sector after 2008 and a SWOT analysis in order to identify targets for the next period in concordance with the Europe 2020 strategy.
Keywords: crisis, SME, entrepreneurship, innovation
JEL Classification: L25, M21, I25, L29, H12
 

THE ROLE OF TOURISM IN THE DEVELOPMENT OF BORDER REGIONS IN HUNGARY

Authors: DAVID Lóránt, TOTH Géza, BUJDOSO Zoltán, REMENYIK Bulcsú

Abstract: Following the changes of regimes in Central Europe, research into border regions has been increasingly adverted. However, various suggestions of researchers came into light on the definition and role of borders. Prior to the changes of regimes, the development of cross-border tourism was counterworked by administrative tools resulting in settlements in border regions becoming peripheral. Negative effects emerged mostly at border sections demarcated between countries either not able to join (for some reason) or not willing to gain access to the European Union and certain member states (occurring at the Ukrainian, Serbian, Belarusian and, in some cases, the Croatian border). In the field of cross-border cooperation, within the tourism industry, a west-to-east and north-to-south gradient can be detected that, by the present logic, can be explained by the changes of economic circumstances and the succession of European Union accession.
Key words: Macroeconomics; Microeconomics; Distribution; Werface Economics; Trade and Environement; Market structure; Tourism Urban Rural and Regional Economics
JEL Classification: B21; B22; D3; D6; F18; L1; L83; R1
 

MARKETING RESEARCH, A SUCCESS FACTOR FOR AN ENTREPRENEUR

Authors: Liviu CIUCAN‐RUSU, Manuela Rozalia GABOR, Iulia APĂVĂLOAIE

Abstract: The aim of our paper is to emphasize the importance of partnership in the case of a small business. Being one of the main features of the marketing strategy, marketing research is often perceived as a feature of big companies, involving huge effort of people and budget. In the case of an entrepreneur, "condemned" to run the business on his own, the need for networking is one of the most important function in order to reach substantial benefits. In this respect, we have designed a case to express the positive effects of collaboration with experts in the case of marketing research in order to increase the value of decision in customer satisfaction and positioning.
Keywords: entrepreneurship, marketing research, small business administration
JEL Classification: L26 - Entrepreneurship; O32 - Management of Technological; L26 - Entrepreneurship; O32 - Management of Technological Innovation and R&D
 

WOMEN ENTREPRENEURSHIP IN ROMANIA

Author: Angela ON

Abstract: Considering entrepreneurship the domain with the greatest potential for creativity and innovation, any investigation on this field is recommended, in order to reveal new aspects that can influence the small enterprises development. From this point of view, female entrepreneurship represents an important source of innovation, only partially exploited or even forgotten.
Keywords: entrepreneurial activity, women entrepreneurship, entrepreneurship gender barriers
JEL Classification: M12
 

EVALUATION OF OPTIMAL MONETARY POLICY STRATEGY IN ROMANIA IN THE CONTEXT OF FULFILMENT OF CONVERGENCE CRITERIA

Author: Monica DAMIAN

Abstract: Adopting the euro currency implies the fulfilment of Maastricht convergence criteria, which implies a number of challenges for the macroeconomic policy mix, due to the existence of the conflict between them. The paper analyzes empirically the main monetary policy strategy in the context of euro in Romania.
The results of the study show that inflation targeting is an optimal monetary policy strategy to achieve real and nominal convergence criteria.
Keywords: monetary policy strategy, euro, inflation, Maastricht criteria.
JEL Classification: E31, E52
 

FDIs AND INVESTMENT POLICY IN SOME EUROPEAN COUNTIES AFTER THEIR EU ACCESSION. CHALLENGES DURING CRISIS

Authors: Magdalena RĂDULESCU, Elena Nolica DRUICĂ

Abstract: The aim of this paper is to find out to what extent the accession countries will be able to benefit from an increase in the quality of foreign direct investments (FDIs) that they receive due to EU membership. Although there will be some investment in new affiliates resulting in greenfield subsidiaries, transnational companies (TNCs) may divest their operations in response to better location advantages elsewhere in the EU (as Spain and Portugal are experiencing because their low-cost advantages are eroded). In many Central and Eastern European (CEE) countries, the share of foreign ownership in total capital stock is already typically much higher than in older EU member states, but we can already observe a trend of relocating TNCs' subsidiaries to other emerging countries in order to diminish the costs, in the context of the present crisis and we believe that this trend will continue in the future, especially in the crisis context when the inceptive burden is heavy for governments. The conclusion of this paper is that the CEE countries haven't faced quite similar conditions as the Southern European countries that acceded to the EU in the ‘80s. So, their benefits have considerably diminished and the present crisis didn't help them at all to reduce their economic gaps comparing to the developed European countries.
Keywords: FDIs, Central and Eastern European countries, EU accession, investment policy, crisis
JEL Classification: F21, F23, G01, G24, G38
 

CAREER MANAGEMENT PERSPECTIVE IN PUBLIC ADMINISTRATION

Author: Camelia‐Olivia ILIEŞ

Abstract. An innovative public organization must be capable to access, internalize and implement the newest forms of knowledge and capitalize efficiently and effectively the potential of human resources available to it. Economic, political, social, administrative, organizational changes in the context of the global crisis impose permanent efforts aimed to ensure flexibility and to redesign the public organizational architecture, adaptation of career management systems to new conditions. Public organisational entities make substantial efforts to increase the quality of public services, performances and their innovative capacity, using as much as possible the employers' potential and talent. The paper explores the importance of the concept, role, objectives and management of career from both individual and public organizational perspective. We try to identify the career features and its innovative role in the knowledge-based economy during the crisis, considering the fact that public services have in fact the ultimate responsibility for managing their own careers.
Keywords: public career management, organizational development, innovation, crisis, knowledge-based management
JEL classification: M53, M12
 

THE IMPORTANCE OF EDUCATING AND TRAINING HUMAN RESOURCES IN TIMES OF ECONOMIC CRISIS IN ROMANIA

Author: Petruța BLAGA

Abstract: In Romania, employment is a priority, significant efforts being made to adapt the Romanian system to the European Employment Strategy for labor force distribution.
In this respect, in order to harmonize several aspects of employment in Romania with those from the EU, the Romanian Government has launched a series of programs designed to improve the labor market in this period of economic crisis. These programs aim to promote and increase access of human resources to education and to quality initial and continuous professional training, seeking thus to develop a knowledge-based economy.
Keywords: human resources, education, professional training, labor market, crisis
JEL Classification: I25, M53, O15, O16
 

METHODOLOGICAL IMPLICATIONS OF THE OF EXTENSION OF THE NUMBER OF CONSIDERED MARKETS IN A NON-WALRASIAN EQUILIBRUM MODEL

Author: Florin‐Marius PAVELESCU

Abstract: This paper deals with the consequences of the extension of the number of markets that are taken into consideration in a non-Walrasian equilibrium model. It is reviewed the initial content of the theory of non-Walrasian equilibrium and emphasizes the main modelling factors of the respective equilibrium. It proposes the inclusion of the capital market in the model of non-Walrasian equilibrium and is also reveals the implications of the extension of the respective model to the classification of types of non-Walrasian equilibrium and to the content of macroeconomic and structural policies. Also, it proposes an econometric method for the estimation of the type of unemployment. The respective methodology is practically used in the case of Romania for the period 1991-2004.
Keywords: mobilizing factor for economic activity, full Keynesian unemployment, partial Keynesian unemployment
JEL Classification: D5, E2, O4
2(41)-bis/2011
 

PARTICULARS OF TREATMENT OF EXTREMELY ASYMMETRIC RISK

Authors: Stelian STANCU, Ion Gh. ROŞCA, Gabriela PRELIPCEAN, Mariana LUPAN

Abstract. The Society perceives the dangers as threats, challenges and risks. Risk is defined as direct and assumed threat. Most of all, the highest risks in modern society are likely asymmetric. They include the whole sphere of human activity and they are accompanying man in almost everything he does. As long as the world is diversifying and is ranking, the more numerous and more acute become asymmetric threats. Because asymmetry is difference, meaning the possibility to act differently and to react differently, in order to capture, destroy, win strategic initiative and freedom of action and, therefore, to defeat. We present a series of theoretical issues related to risk analysis and risk analysis techniques: scenario technique and probability-impact matrix technique. In the second part of the paper an analysis of critical infrastructure and types of asymmetric risks are presented. The third part of the paper presents a study of portfolio risk using GARCH models (1.1), considering the daily returns of RASDAQ-C and BET indexes and the RON /USD exchange rate, and also an analyses of the achieved results will be considered.
Keywords: dangers, threats, vulnerabilities, risks, critical infrastructures, risk evaluation, extreme risk, asymmetric risk
JEL Classification: J10, D53, D81, G32, P28
 

CHARACTERISTICS OF RISK IN EXTREME EVENTS

Authors: Stelian STANCU, Ion Gh. ROSCA, Gabriela PRELIPCEAN, Mariana LUPAN

Abstract. It is known that the environment and the human society often support the actions of some dangerous phenomena of different origins, natural or anthropogenic, that may cause destructive and brutal disturbances in some systems or default situations.
In the following, some natural catastrophic events observed nowadays and their overall costs are presented.
In the second part of the paper hazards and their risks assessment are described and also we emphasize the types of hazard, their effects and their associated risk assessment.
The third part of the paper presents a study of portfolio risk using GARCH models (1.1), considering the daily returns of RASDAQ-C and BET indexes and the RON/EURO exchange rate, and also an analysis of the achieved results will be considered.
Keywords: natural hazard, vulnerability, risk assessment, economic effects, social effects, environmental effects
JEL Classification: J17, D53, D81, C19, P28
 

CONTRIBUTIONS REGARDING THE MANAGEMENT OF THE EFFECTS OF GLOBAL WARMING

Authors: Gabriela PRELIPCEAN, Angela COZORICI, Mariana LUPAN

Abstract. The paper contains analyses about the effects of global warming and climate change. The impacts of climate change may be physical, ecological, social or economic. Evidence of observed climate change includes the increasing temperature, CO2 emissions, droughts, floods, etc. Human activities have contributed to a number of the observed changes in climate. This contribution has principally been through the burning of fossil fuels, which has led to an increase in the concentration of CO2 in the atmosphere.
It is predicted that future climate changes will include further warming, sea level rise and a probable increase in the frequency of some extreme weather events.
Key words: global warming, climate change, extreme events, greenhouse gas, floods
JEL Classification: Q54
 

DISCRETIONARY FISCAL POLICY AND GOING CONCERN PRINCIPLE FOR SMES IN CRITICAL ECONOMIC ENVIRONMENT

Authors: Mihaela GÖNDÖR, Ramona NEAG

Abstract. Based on European and Romanian evidence regarding economic and legislative environment, the aim of the present paper is to analyze the impact of the fiscal policy during 2009-2010 on the SME's activity, in terms of the Going Concern Principle in Critical Economic Environment. The objectives of the study are the identification of the possible negative effects of the discretionary fiscal policy in Critical Economic Environment and the identification of the potential solutions from the perspective of non-discretionary fiscal policy. Considering important to clarify some conceptual issues related to discretionary and non-discretionary fiscal policy from the perspective of the Going Concern Principle in critical economic environment, this study is based on logical analysis in principal.
Key Words: Discretionary Fiscal Policy, Nondiscretionary Fiscal Policy, Going Concern, Economic Environment.
JEL Classification: E62, H32, Q56
 

MODELING AND FORECASTING THE EXCHANGE RATE IN ROMANIA

Author: Mihaela BRATU

Abstract. Econometric modeling of the exchange rate saw successive progresses, the forecasts based on the ‘70s models having a rather good accuracy, as recent researches showed. In order to explain the monthly evolution of RON/USA exchange rate during 2007-June 2011, I used three econometric models: a simultaneous equations model, an autoregressive model of order 1 and a model respecting the sense of Granger causality. From the statistical analysis of forecasting accuracy for one-month-ahead forecasts for July and August 2011 based on these models I found that the best predictions are those based on the model that is compatible with the sense of Granger causality. The higher errors are those of the forecasts based on the AR(1) model. The importance of knowing the best exchange rate forecasts The importance of knowing the best exchange rate forecasts is related to the improvement of decision-making and the building of the monetary policy.
Keywords: exchange rate, forecasts, accuracy, Granger causality
JEL Classification: E27,C51, C52, C53
 

A SURVEY ON THE DRIVERS AND MECHANISMS OF FINANCIAL CRISES

Author: Dan OLTEANU

Abstract. This paper aims to investigate the origin and to analyze the mechanisms of forming the main economic imbalances previous to financial crises. For this purpose we first outline a typology of crises depending on the characteristic symptoms, and we identify statistical indicators corresponding to the main drivers of the instabilities, specific to each category of crises. Second, a classification of these factors will be performed depending on their share in producing effects and the intensity of propagation of the effects over the economical results. Finally, we define a set of essential variables in triggering financial crises, along with the interdependences between them.
Keywords: Financial crises, Financial fragility, Credit, Indebtedness
JEL Classification: E44, E51, F34, G14
 

MULTIDISCIPLINARY BACKGROUND FOR MODELING PROCESSES AND PHENOMENA RELATED TO TERRORISM

Authors: Gabriela PRELIPCEAN, Irina CAUNIC, Mircea BOSCOIANU

Abstract. The study aims to create an integrated framework of analysis allowing the optimization of government decisions to intervene in case of a major terrorist attack for limiting the consequences and restoring order and functionality, based on a set of specific models. This initiative is due to the lack of knowledge in this area of research and it is justified by the existence of new risks, as the risk of terrorism. Internationally there is a growing trend in conducting researches on the extreme risk events, which should lead to an intensification of scientific knowledge at national level.
Key words: terrorist organizations, mathematical models, interdependent security model
JEL Classification: G1
 

ASSESSING THE EXPORT PERFORMANCE IN TRANSITION COUNTRIES: THE CASE OF THE REPUBLIC OF MOLDOVA

Authors: Alexandru STRATAN, Victoria CLIPA

Abstract. Despite their common legacy of central planning and of a new beginning in the '90s, transition countries have achieved different export performances. Although there is not a consensus among economists on the dimension of exports impact on economic growth, the non-performance or poor performance of exports may indicate inadequate policy reforms that by consequence do hinder economic growth. The purpose of this paper is to make an assessment of performances that Republic of Moldova's exports have achieved after 20 years of transition compared to other countries in Eastern Europe and Central Asia.
Keywords: transition, export performance, competitiveness, export concentration, trade specialization, Lafay index, medium and high-tech exports
JEL Classification: F13, F14, F43, O11, O57