Competitive Economic Development of The Republic of Moldova

Perchinschi Natalia,Gribincea Alexandr

doi:10.15294/ibarj.v2i1.38

Abstract

With this general framework in mind, this section has explained through various examples the circumstances in which economic theory would justify a temporary increase in trade barriers – even above the level of commitments in a trade agreement. These circumstances include when an import surge provides an argument for an increase in trade barriers as well as when a change in demand or supply or in policy leads to a sharp contraction for a particular sector and this, in turn, has a negative externality (like in the case of the one-company town). Another argument for trade policy intervention is when something alters the degree of competition in the market – for example, if a company indulges in predatory dumping. Other circumstances include developing countries providing support to infant industry, action to address balance of payment crises, and responding to a sharp increase in the world price of a product. In all these cases, the adoption of restrictive trade policy can be justified as a second-best option.

Highlights

In the medium term, the objectives of the national development strategy over the period 20082011 may be influenced by the emergence and amplification of disturbances caused by either domestic or external factors
Limited cooperation of public administration with the private sector, the social partners, the academic environment in preparing and implementing public policies and measures to increase competitiveness based on increasing productivity, the promotion of export as a priority, and ensuring macroeconomic stability
Ensuring a growth rate of 4.0-5.0 percent on a medium term, national economy requires the adoption of effective instruments of economic policy, allowing the substantially improved management and exploitation of the existing potential resources in key sectors, which determine a sustainable development in a competitive framework

Summary

Introduction

The objectives of the national development strategy over the period 20082011 may be influenced by the emergence and amplification of disturbances caused by either domestic or external factors. The adjustment of economic policies as a result of world financial crisis in terms of the negative impact of the crisis in partner states, which would limit foreign demand for domestic products intended for export.

Results

Conclusion