Analyzing the Economic Potential of Romanian Administrative Regions

Abstract

This paper proposes a scientific approach of regionalization activity in Romania. The approach consists of applying the Principal Components Analysis (PCA), a complex multivariate method for marketing data analysis, implemented in SPSS, for some instantaneous statistical series of economic indicators available in the Statistical Yearbook, at the level of one year, here, 2010, collected for all the counties of Romania. After identifying the significant factors of economic development at the national level, they are combined in two principal components, depending on the socio-economic meaning of the most correlated variables. Then the PCA is applied for the counties of each region, using the same socio-economic variables identified as principal features of the economic policies undertaken at national level, for all counties, in 2010. In this way there are emphasized the socio-economic differences between the counties of a region, but also there can be seen the differences between the development level of regions, depending on the relative positions of their counties, on the same map of the considered economic coordinates. In this way it can be appreciated the different impact of the economic policies, at national level, and at regional level. The approach can be repeated for the following years, to see any dynamic changes, as consequences of the economic policies. The methodology used in this paper can be used to better manage the economy of Romanian regions and to establish macroeconomic marketing policies to stimulate different regional activities depending on the economic targets.