Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom
In defiance of its unimpressive track in structural reforms and relatively low foreign direct investment (FDI) inflows, Romanian exports have experienced surprisingly strong performance in both European Union (EU) and non-EU markets since 2000 afte...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/11/5449409/romanias-integration-european-markets-implications-sustainability-current-export-boom http://hdl.handle.net/10986/14189 |
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okr-10986-141892021-04-23T14:03:21Z Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom Kaminski, Bartlomiej Ng, Francis FOREIGN DIRECT INVESTMENT FOREIGN MARKETS FDI GROWTH WAGES MACRO STABILITY VALUE CHAINS EXPORTS TRADE FOREIGN TRADE INVESTMENTS INTEGRATION INTRA-PRODUCT TRADE FOREIGN INVESTMENT INDUSTRIAL RESTRUCTURING MULTINATIONAL CORPORATIONS BACKWARD LINKAGES In defiance of its unimpressive track in structural reforms and relatively low foreign direct investment (FDI) inflows, Romanian exports have experienced surprisingly strong performance in both European Union (EU) and non-EU markets since 2000 after a four-year period of flat growth. While the first phase of growth in 1992-95 can be easily explained by redirection of trade toward the EU once the state monopoly over foreign trade was abolished and other policy areas liberalized, the current second phase of export expansion raises questions concerning its drivers and sustainability. Having examined overall foreign trade performance, evolving patterns of specialization, Romania's competitiveness in EU sunrise markets, changes in factor intensities of trade with the EU, and "intra-product" trade, the authors conclude that Romania's export offer has become diversified, reflecting an impressive progress in industrial restructuring. Restructuring has been facilitated by FDI inflows, even though they appear to have been too small to generate such a big effect. Romanian firms have become increasingly part of international production networks and traditional global value chains. Sustainability of this performance depends on maintaining macroeconomic stability and keeping wage increases in line with productivity growth, as well as increasing Romania's ability to attract larger FDI inflows through improvements in business climate and trade facilitation. 2013-06-26T14:00:08Z 2013-06-26T14:00:08Z 2004-11 http://documents.worldbank.org/curated/en/2004/11/5449409/romanias-integration-european-markets-implications-sustainability-current-export-boom http://hdl.handle.net/10986/14189 English en_US Policy Research Working Paper;No.3451 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Romania |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FOREIGN DIRECT INVESTMENT FOREIGN MARKETS FDI GROWTH WAGES MACRO STABILITY VALUE CHAINS EXPORTS TRADE FOREIGN TRADE INVESTMENTS INTEGRATION INTRA-PRODUCT TRADE FOREIGN INVESTMENT INDUSTRIAL RESTRUCTURING MULTINATIONAL CORPORATIONS BACKWARD LINKAGES |
| spellingShingle |
FOREIGN DIRECT INVESTMENT FOREIGN MARKETS FDI GROWTH WAGES MACRO STABILITY VALUE CHAINS EXPORTS TRADE FOREIGN TRADE INVESTMENTS INTEGRATION INTRA-PRODUCT TRADE FOREIGN INVESTMENT INDUSTRIAL RESTRUCTURING MULTINATIONAL CORPORATIONS BACKWARD LINKAGES Kaminski, Bartlomiej Ng, Francis Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom |
| geographic_facet |
Europe and Central Asia Romania |
| relation |
Policy Research Working Paper;No.3451 |
| description |
In defiance of its unimpressive track in
structural reforms and relatively low foreign direct
investment (FDI) inflows, Romanian exports have experienced
surprisingly strong performance in both European Union (EU)
and non-EU markets since 2000 after a four-year period of
flat growth. While the first phase of growth in 1992-95 can
be easily explained by redirection of trade toward the EU
once the state monopoly over foreign trade was abolished and
other policy areas liberalized, the current second phase of
export expansion raises questions concerning its drivers and
sustainability. Having examined overall foreign trade
performance, evolving patterns of specialization,
Romania's competitiveness in EU sunrise markets,
changes in factor intensities of trade with the EU, and
"intra-product" trade, the authors conclude that
Romania's export offer has become diversified,
reflecting an impressive progress in industrial
restructuring. Restructuring has been facilitated by FDI
inflows, even though they appear to have been too small to
generate such a big effect. Romanian firms have become
increasingly part of international production networks and
traditional global value chains. Sustainability of this
performance depends on maintaining macroeconomic stability
and keeping wage increases in line with productivity growth,
as well as increasing Romania's ability to attract
larger FDI inflows through improvements in business climate
and trade facilitation. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kaminski, Bartlomiej Ng, Francis |
| author_facet |
Kaminski, Bartlomiej Ng, Francis |
| author_sort |
Kaminski, Bartlomiej |
| title |
Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom |
| title_short |
Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom |
| title_full |
Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom |
| title_fullStr |
Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom |
| title_full_unstemmed |
Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom |
| title_sort |
romania's integration into european markets: implications for sustainability of the current export boom |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/11/5449409/romanias-integration-european-markets-implications-sustainability-current-export-boom http://hdl.handle.net/10986/14189 |
| _version_ |
1764430872784666624 |