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 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.

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Bibliographic Details
Main Authors: Kaminski, Bartlomiej, Ng, Francis
Format: Policy Research Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, D.C. 2004-11
Subjects: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,
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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spelling dig-okr-10986141892021-04-23T14:03:21Z 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
institution Banco Mundial
collection DSpace
country Estados Unidos
countrycode US
component Bibliográfico
access En linea
databasecode dig-okr
tag biblioteca
region America del Norte
libraryname Biblioteca del Banco Mundial
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
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
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
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
topic_facet 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
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 2004-11
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
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AT ngfrancis romaniasintegrationintoeuropeanmarketsimplicationsforsustainabilityofthecurrentexportboom
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