Romanian Competitiveness Research Articles

A Social Constructionist Approach to Institutional Change: The Case of the Romanian Competition Council

Abstract Society has built institutions to face various problems in each area of our lives. Yet, institutions face considerable problems in fulfilling their objectives in a continuously changing world. With this in mind, the present study starts from the institutional resistance to change and searches for ways to improve efficiency and increase the positive impact on social welfare. For this, we start by looking at the competition authorities as new institutions and we study how they work and the role of communication, learning, and transparency in increasing institutional efficiency and receiving social legitimacy. The paper begins with a mixed theoretical approach to institutional change and focuses on the role of legitimacy in stimulating institutional change, and the type of institutional change for increasing efficiency. The research ends with the Romanian case study which shows the necessary aspects for making the institutional change real.

Romania ∙ The Romanian Competition Council: Towards Becoming a Markets’ Authority

Romania ∙ The Romanian Competition Council: Towards Becoming a Markets’ Authority

Exchange Rate Effects on International Commercial Trade Competitiveness

This study is meant to be an evaluation sustained by theoretical and empirical considerations of the exchange rate impact on international commercial trade competitiveness. In this respect, the study aims to find how the exchange rate influences Romanian competitiveness through assessing the effects generated on exports and imports. The main purpose of the study is to assess the complex action of the exchange rate on international commercial trade competitiveness in contemporaneity and the connections between these variables. The empirical part contains a regression analysis where exports and imports are dependent variables influenced by a series of determinants.

Romania ∙ A Closer Look at the Recent Practice of the Romanian Competition Council in Public Procurement Cases

Romania ∙ A Closer Look at the Recent Practice of the Romanian Competition Council in Public Procurement Cases

Regional differences in entrepreneurial perceptions and implications for the Romanian competitiveness policy

Abstract Understanding entrepreneurship as being spatially rooted transforms it in a regional and national competitiveness factor. Despite the increasing importance of the territorial dimension in supporting economic growth at policy and declarative levels, in practice, in Romania, the territorial structure and spatial organization of the economy contributes little to the national value added. In this context, we study regional differences in entrepreneurial initiative and perception and their possible impact on the national competitiveness strategy. We use primary data collected in three Romanian regions (Centre, North-East, Bucureşti-Ilfov) and conduct a statistical analysis of the data. The results indicate different comparative regional profiles. The regional differences in the intentions, motivations, barriers and limitation for entrepreneurship confirm the theoretical view that personal motivations of becoming an entrepreneur are determined by environmental conditions. We conclude that the regional differences should be taken into account in the elaboration of the competitiveness policy, corroborated with the results of other similar studies.

REGULATION AND ENFORCEMENT OF COMPETITION POLICY

Competition policy starts by shaping a legislative framework. This is aimed to establish boundaries for conducting competition and also sets limits of licit and illicit demarcation, for competitive and anticompetitive practices. The Romanian Competition Law has a divalent approach and it aims to provide specific behavioral conditions in order to stimulate and protect free-market competition, with the ultimate goal of developing a balanced, efficient and competitive economy. Our country’s Competition policy is based on punishing the behavior. There are three such types of anti-competitive behavior, namely: agreements between undertakings, abuse of dominant position and mergers and other concentrations between undertakings. Recent Practice proved that this “enforcement-conduct-punishment” structure is not necessary the best way to address competition and it is high time for authorities to switch both regulation and enforcement of competition from the “classical perspective” towards concepts like “competition advocacy” and “soft power” and give competition policy a new, reshaped face.

Considerente Privind Consecinnele ncclccrii Legii Concurennei Nr. 21/1996 (On the Consequences of the Infringement of the Romanian Competition Law)

Romanian Abstract: Articolul trece in revista principalele consecințe ale incalcarii regulilor de concurența. Cel mai adesea astfel de incalcari rezulta in aplicarea unor amenzi, care sunt printre cele mai ridicate in sistemtul de drept administrativ (pâna la 10% din cifra de afaceri in anul fiscal precedent aplicarii sancțiunii) și care sunt in centrul eforturilior pentru a preveni comportamentele anticoncurențiale. In plus, autorii incalcarilor pot fi obligați sa plateasca despagubiri celor afectați de acțiunilor lor iar persoanele fizice care sunt implicate in inițierea și coordonarea unui cartel pot atrage raspunderea lor penala - pedepse cu inchisoarea sau amenzi penale - dar aceste sancțiuni sunt inca puțin aplicate in România și datorita acestui fapt nu au inca același impact cu cel al amenzilor contravenționale. In ceea ce privește sancțiunile contravenționale, articolul discuta in ce masura o sancțiune contravenționala minora, așa cum este avertismentul, este aplicabil intr-o legislație care este cunoscuta mai degraba datorita nivelului ridicat at sancțiunilor. Articolul argumenteaza ca posibilitatea de a aplica un avertisment pentru incalcarea regulilor de concurența ar trebui clarificat intr-o viitoare modificare a legii concurenței, fie in sensul excluderii acesteia, cu desavârșire, fie prin prevederea ca in cazul unor incalcari cu impact redus autoritatea de concurența ar putea emite avertismente, impreuna cu ordine de incetare a incalcarii. English Abstract: This paper represents a brief review of the main sanctions which may apply in case of the infringement of the competition rules. Such infringement trigger the application of fines which are among the highest in the administrative law system (up to 10% of the turnover in the previous fiscal year) and are at the core of the efforts made to deter anticompetitive behavior. In addition, the infringers may be obliged to pay damages to those affected by their actions and the individual persons involved in the initiation or coordination of a cartel are subject to criminal sanctions – imprisonement or criminal fine - but the latest are less frequently applied in Romania and do not have, as such, the same consequences as the administrative fines. In respect of the administrative sanctions for the infringement of the anticompetitive behavior, the paper discuss whether or not an administrative low sanction such as the warning is applicable in a legislation which is famous rather for the high amount of the sanctions. The paper argues that such a sanction should not be used except for a very few situations. An extended usage of the warning would affect the efectivness of the competition law. The author considers that the possibiliy to apply a warning for the infringement of the competition rules should be clarified in a future amendment of the competition law, either in the sense of excluding it from the range of sanctions or by providing that the competition authority may issue a warning, together with cease-and-dessist orders.

Comparative Analysis of Romanian Competitiveness Evolution

The main subject of this paper refers to an analysis of the recent trends and evolution of Romanian competitiveness compared to the European Union competitiveness and it is structured in four main parts. The first section of the paper regards an introduction of the competitiveness evolution process, recalling the three actual evaluation models of the competitiveness level. In the second part of the paper there can be found the competitiveness indexes practiced and published by the World Economic Forum, indicators that are structured on three main levels as following: the Global Competitiveness Index and its aggregate indicators that are developed on three categories of factors that are essential for the competitiveness process (Basic requirements, Efficienty Enhancers, Innovation and sophistication factors) and the indexes associated to the twelve pillars of competitiveness: Institutions, Infrastructure, Macroeconomic stability, Health and primary education, Higer education and training, Goods market efficiency, Labor market efficiency, Financial market sophistication Technological readiness, Market size, Business sophistication, Innovation. Based on the values obtained after consulting the World Economic Forum Reports and regarding the competitiveness from a global perspective, the third part of the paper presents a comparative analyses of the evolution of the Romanian competitiveness process and the one of the EU27. In the last part of the paper there can be found the conclusions of this analysis, with respect to the values found.

Romanian competition policy

Romania plans to complete its accession negotiations with the EU by the end of 2004 and hopes to join the EU in January 2007. The implementation of an effective competition policy is an essential part of this process. The following article examines Romanian competition policy and compares it to the EU's competition acquis.