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Theoretical and Applied Economics
No. 9 / 2014 (598)

Demo-economic restructuring in South-Muntenia development region. Causes and effects on the regional economy

Bucharest University of Economic Studies, Romania

Abstract. The social effects were always at the core of economic theories and policies. Each person has two key roles: as a factor of production and the role of consumer, which reveal its importance for the development of certain economies. This paper focuses on researching the causes that generate migration flows and demographic changes in South-Muntenia Development Region. This approach involves the use of mathematical economic tools to support empirical assumptions. The analysis performed is useful to highlight the main changes in the behavior of individuals, as a result of major restructuring undergone by the regional economy in the last two decades.

Firstly the economic effects of the declining population which is serverly increasing in the rural areas are analyzed. Development disparities (social and institutional infrastructure, basic public services and utilities, etc.) determine individual migration from rural to urban centers in the hope of a higher standard of living. Also, another important reason that decreases the number of rural residents is the declining birth rate. In this regard, the quantitative analysis is necessary to determine the link between the economic and social indicators, and captures the influence of behavior change in the demographic balance as a result of economic changes.

Keywords: sustainable development, labor market, demographic, migration flows.

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