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Theoretical and Applied Economics
No. 4 / 2011 (557)

Formal Institutions and Regional Development. Considerations Regarding Romania

“Alexandru Ioan Cuza” University, Iaşi

Abstract. Assuming that a theory of development is incomplete without a theory of institutions, we propose in this paper to analyze, in a first part, the interrelation formal institutions-regional development and the ways trough which these two components sustain themselves, then, in the second part of the paper, we will analyze the degree of convergence of the eight development regions in Romania, taking into account indicators such as: GDP per capita, average net wage gain, unemployment rate, labor productivity, the share of sectors in total employment.

The results of our research we hope to lead us, in the final of the paper, to draw some future action directions by which to reduce development disparities between regions, both at national level and at European level NUTS2.

Keywords: formal institutions; regional development; convergence; regional gaps; measures.

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