Abstract. This paper presents a model based on simultaneous equations with statistical determined parameters for describing the evolution of important issues relating to local development. The main issues considered are public and private business development environment, employment, demography, social comfort, etc. Parameter estimation with simultaneous equations model was done by procedures implemented in EViews using empirical data sets from city Braila, Romania, for the period 2000 to 2005. Applying the Durbin-Watson test, results were compared for the simultaneous equations model where the parameters were estimated by twostage least squares method.

Keywords: simultaneous equations models; local development; systemic models.