Business Cycle Synchronization – Part of the European Integration Case Study: Romania and the Eurozone

Authors

  • Petre Adrian The Bucharest University of Economic Studies

Keywords:

business cycle, structural similarity, convergence

Abstract

The purpose of this study is to identify the degree of business cycle synchronization between Romania and the eurozone. For this scientific approach, I analyzed two important indicators, in terms of business cycles synchronization: commercial intensity (Eickmeier and Breitung; 2006) and structural similarity (Krugman; 1991). The intensity of Romania's trade with the eurozone is low, which is an important issue for ensuring a sustainable growth rate. In terms of structural similarity with the eurozone, the Romanian economy recorded structural gaps, which generates vulnerability to asymmetric shocks. When the degree of integration increased, Romania recorded a downward trend of trade with the eurozone. Due to low competitiveness of Romanian products and services, this country has a less favorable position in the eurozone,. The results obtained after performing this study shows that Romania must become more convergent, in structural terms, with eurozone economy, in order to move to the next stage of the European integration.

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Published

2015-05-15

How to Cite

Adrian, P. (2015). Business Cycle Synchronization – Part of the European Integration Case Study: Romania and the Eurozone. International Journal of Economic Practices and Theories, 5(3), 271-276. Retrieved from http://ijept.eu/index.php/ijept/article/view/Business_Cycle_Synchronization_Part_of_the_European_Integratio

Issue

Vol. 5 No. 3 (2015): Special issue on Competitiveness and Economic & Social Cohesion

Section

Articles

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