Snapshot Views of the Romanian Economy on Regional Level Using Input-Output Methodology

Abstract

Our present paper proposes to give snapshot views on the status-quo of the Romanian economy at the level of development regions. From a methodological perspective, the study is based on the construction of an aggregated national Input-Output table from the more detailed one of the National Institute of Statistics, followed by the derivation of regional tables using the non-survey GRIT technique. Quantitative sectoral interrelationships are going to be analysed based on multipliers, backward and forward linkages in order to identify key sectors within regional economies. This could serve as a baseline for assessing the impact of several policies of the European Union on the Romanian economy, such as the Cohesion Policy and the Common Agricultural Policy. The lower territorial approach – i.e. the construction of regional Input-Output models – used within the present study is in accordance with the European Union’s NUTS2 level policy design and planning philosophy on the one hand. On the other hand, this analytic direction makes possible the use of the results as a base for regional economic development strategy design, highlighting structural specificities and discrepancies among regions of the same country.

Keywords

• Input-Output methodology
• regionalization
• NUTS2 regions
• GRIT technique
• output backward and forward linkages
• key sectors