TOWARDS SUSTAINABLE DEVELOPMENT: REAL CONVERGENCE AND GROWTH IN ROMANIA

RUGEA Felicia Elisabeta, West University of Timișoara

Abstract:
The complexity of the current global economy requires a holistic approach regarding the subject of economic growth and sustainable development. This approach is necessary since it is well known that countries have different degrees of economic development. Fulfilling the criteria of nominal and real convergence for any EU country is the first step towards achieving a common goal, sustainable development. Therefore this paper is based on the idea that a country can achieve a sustainable development by meeting real and nominal convergence criteria for an extended period of time. The convergence criterion is explored through a series of indicators. The present study investigates these indicators in the case of Romania, such as: GDP per capita, labour productivity, investment and interest rates and public debt. The analysis shows that although there is an economic growing trend, given especially by EU membership, since 2007, the problems are much deeper and are related to social inequality and regional disparities in development. As a solution this paper identifies several monetary and fiscal measures to improve these indicators and eventually to achieve a sustainable development.

Keywords: real convergence, sustainable development, determinants of growth, fiscal policies, monetary policies

JEL Classification: E2, E6, O23

Volume: 69, Issue: 4

Pages: 137 - 147

Publication date: November, 2017

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/69413rugea.pdf

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