Determining Local Economic Development in the Rural Areas of Romania. Exploring the Role of Exogenous Factors

Sustainability, vol. 11, no. 1, 282; DOI:10.3390/su11010282, 2019

24 Pages Posted: 12 Mar 2019

See all articles by Alexandru Pavel

Alexandru Pavel

Babeş-Bolyai University of Cluj-Napoca - Department of Public Administration

Octavian Moldovan

Babes-Bolyai University - Faculty of Political, Administrative and Communication Sciences

Date Written: January 8, 2019

Abstract

Based on data collected for 398 communes from the North-West development region of Romania between 2007 and 2014, this article presents a local economic development (LED) index for rural communities and identifies the main factors which influence LED in these communities. Our results show that exogenous factors, such as location in the influence area of urban communities and the existence of a direct connection to the European Road Network, influence the level of LED. At the same time nor the aforementioned exogenous factors nor other exogenous factors, such as non-refundable investments programs in local core infrastructure (financed by the European Union and the Romanian Government) which were designed to accelerate/spur economic development, as well as direct connections to the National Roads Network, do not have any statistically significant influence on spurring/accelerating LED (at least in this short period of time).

Keywords: economic development index; exogenous factors; non-refundable investment programs; rural development; principal component analysis; regression analysis

JEL Classification: P25, F63, O2, Q01, H54

Suggested Citation

Pavel, Alexandru and Moldovan, Octavian, Determining Local Economic Development in the Rural Areas of Romania. Exploring the Role of Exogenous Factors (January 8, 2019). Sustainability, vol. 11, no. 1, 282; DOI:10.3390/su11010282, 2019, Available at SSRN: https://ssrn.com/abstract=3338445

Alexandru Pavel (Contact Author)

Babeş-Bolyai University of Cluj-Napoca - Department of Public Administration ( email )

Traian Moșoiu Street, no. 71
Cluj-Napoca, Cluj, 400132
Romania

Octavian Moldovan

Babes-Bolyai University - Faculty of Political, Administrative and Communication Sciences ( email )

Str. Traian Mosoiu, Nr. 71
Cluj-Napoca, RO- 400132
Romania
0040-744891466 (Phone)

HOME PAGE: http://www.apubb.ro/

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