Geographical Economics and Per Capita GDP Growth in Romania

Abstract

[Abstract] This paper analyses the growth dynamics in the Romanian economic over the period 1995-2008 and the link between them and the economic geography of the country in light of the transition process started in the early nineties. The analysis of the growth dynamics is carried out at different geographical scales and using different time spans. The analysis of the growth dynamics is followed by an econometric exercise which first tries to check for the (non)existence of convergence and then we have studied to which extend the economic geography of the country is a key ingredient in the observed growth dynamics. The results of our analysis point out that regardless of the period of study under consideration a catching-up process across Romanian counties is not taken place. Rather a divergence process is pretty much at work. Our second important conclusion is that the economic geography of the country is shaping the growth dynamics observed over the course of the years in Romania.