Academic journal article Theoretical and Empirical Researches in Urban Management

The Industry in Romanian Urban Areas and Development Regions

Academic journal article Theoretical and Empirical Researches in Urban Management

The Industry in Romanian Urban Areas and Development Regions

Article excerpt

1. INTRODUCTION

The Lisbon Strategy was directed towards enhancing European competitiveness and transposing Europe into the most important economy in the world. The Europe 2020 Strategy, a follower of the Lisbon Strategy, conducts the development of the "intelligent increasing, comprising/inclusive and sustainable development", which will help Europe rebuild after the economic crisis and to achieve high levels of productivity and the employment rate, social and territorial cohesion, knowledge and innovation becoming key factors. Romania latches closely onto the European Union policy in the field of industry, in order to develop a competitive national market, integrated in the European market.

Industry is very important in maintaining the global economic leader status for the European Union. Therefore, a competitive industrial sector may lead to beneficial effects throughout the economy, through the means of raising productivity, added value and economic efficiency, as well as through increasing the quality of the products, the generation of jobs in support services and through generating innovation with multitudinous economic and social applications (European Commission, 2011).

In Romania, industry contributes with 30% to GDP, counting 21% employed out of the total national labouring force. Labor productivity, calculated in accordance with the GDP per employee, was in the year 2013, 0,105 mil lei, overtopping the national average, which reached the 0,061 value, one seen as not too high in terms. These values mirror the orientation to less advanced forms of production, with added value.

In old industrial regions basic industries and traditional industries predominate, and modern and innovative sectors, generally lack. Development of advanced sectors could help overcoming some of the problems and could contribute to greater diversification and performance of these regions (Todtling et al., 2013). Top industries offer higher growth opportunities, but upraise bigger problems, due to their nature, being huge energy consumers (Yan & Kien, 2013).

Generally speaking, in developed countries, by comparison to the primary sector, the secondary sector is defined through a high contribution in the structure of national economy, and top branches in industry are developing faster than the classic ones (steel mills, mining, textiles etc.). However, in modern economies, and especially in the European Union, industrial activities have lost their importance but services have been facing good performance development.

Industrial production of processed goods is one of the most important indicators of the sustained economy, in most countries, especially manufacturing industry. Mining has a shoddy representation in all European countries, except for Germany, Sweden, Austria, Denmark and Spain (which depend mainly on coal, the extraction of lignite and peat), where the coal sector has a greater impact on national economies than other sectors (San Cristobal & Biezma, 2006). In most of the countries, statistics show a continuing decline of the coal industry (Cobarzan, 2008). Since 1998, when the Government reduced subventions to mining sector, the mining industry in Romania has gone through a major restructuring process (Hamlin & Cobarzan, 2006).

According to the European Statistics Office, at the European Union level, the industrial production recorded a 0,4 percent increase in June 2013, compared to the same period of the year 2012. The most significant boosts were registered in Romania (9,6%), Poland (5,3%) and Estonia (4,7%) and drops in Finland (5,9%), Bulgaria (4,4%) and Czech Republic (3%). It is self-evident that Romania had the most substantial growth in the European Union regarding the industrial production. The second largest growth in the industrial production in the European Union was registered in September 2013 compared to the same month of the previous year in 16 countries of the European Union. …

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