Escolar Documentos
Profissional Documentos
Cultura Documentos
Volume XIII
Issue 1
2013
EDITORIAL BOARD
EDITOR in CHIEF:
• Professor, PhD. Dãnuţ Tiberius Epure, Rector, “Ovidius” University of Constanta,
Romania
MEMBERS:
• Professor, PhD. Paolo Andrei, Università degli Studi di Parma, Italy;
• Professor, PhD. Stefano Azzali, Università degli Studi di Parma, Italy;
• Professor, PhD. Grigore Belostecinic, ASEM Chişinãu, Republic of Moldova;
• Professor, PhD. Maurice Chenevoy, l’Institute Universitaire Profesionalise,
Universite D’Auvergne, Clermont 1, Clermont–Ferrand, France;
• Professor, PhD. Jacky Mathonnat, L’Universite D’Auvergne, Clermont1,
Clermont–Ferrand, France;
• Professor, PhD. Ionel Bostan, Faculty of Economic Sciences and Public
Administration, “Stefan cel Mare” University of Suceava, Romania;
• Professor, PhD. Viorel Cornescu, University of Bucharest, Romania;
• Professor, PhD. Victor Ploae, Vice-Rector, “Ovidius” University of Constanta,
Romania;
• Associate Professor, PhD. Costel Nistor, Faculty of Economic Sciences, “Dunãrea
de Jos” University of Galati, Romania
v
SCIENTIFIC COMMITTEE:
• Professor, PhD. Ion Botescu, Faculty of Economic Sciences, “Ovidius” University
of Constanta, Romania;
• Professor, PhD. Elena Condrea, Faculty of Economic Sciences, “Ovidius”
University of Constanta, Romania;
• Associate Professor, PhD. Sorinel Cosma, Faculty of Economic Sciences,
“Ovidius” University of Constanta, Romania;
• Associate Professor, PhD. Ramona Gruescu, Faculty of Economics and Business
Administration, University of Craiova, Romania;
• Associate Professor, PhD. Marian Ionel, Faculty of Economic Sciences, “Ovidius”
University of Constanta, Romania;
• Associate Professor, PhD. Simona Utureanu, Faculty of Economic Sciences,
“Ovidius” University of Constanta, Romania;
• Lecturer, PhD. Student Victor Jeflea, Faculty of Economic Sciences, “Ovidius”
University of Constanta, Romania.
vi
TABLE OF CONTENTS
Section I: International Affairs and European Integration
vii
17. Popa Suzana - The Cybernetic System of National 82
Economy and Foreign Investment
18. Popa Suzana - The Theories of the Comparative and the 88
Competitive Advantages in the
International Trade
19. Săveanu Cristina - The Effects of Risk Events on the 92
Efficiency of Financial Market
20. Stoian Andrei, Becherescu - From Tulips to Black Swans - have the 97
Radu Financial Rules Changed?
21. Utureanu Simona-Luize - Strategy of Competitive Forces in the Air 101
Transport
22. Virlanuta Florina Oana - International Investments, Comparative 105
Analysis Romania-European Union
viii
11. Carp Lenuta - FDI Impact on CEECs Development under the 164
EU integration
12. Ciobanu Carmen - Analysis of the Degree of Absorption of EU 170
Liliana Funds, 2007-2013
13. Constantin Sanda - Gross Domestic Product and the Investment 175
Percent in Romania and in the European Union
14. Criste Adina, Lupu Iulia - The European Project beyond the Financial Crisis 179
15. Damian Monica - Challenges of the National Bank of Romania’s 184
Monetary Policy on the Road to Euro Area
16. Dârzan Mihaela - The Relationship between FDI and Convergence 190
under the Current Evolution of the Global
Economy. Aspects Regarding The New Member
States.
17. Ghita Simona - An Analysis of the Energy Efficiency of the EU 195
Economy in the Context of Sustainable
Development
18. Herghiligiu Roxana - Operational Risk Disclosures in Hungarian 200
Commercial Banks
19. Iluț Bogdan - European Banking Integration in the Aftermath 205
of the Global Crisis: the Case of the New EU
Member Countries
20. Larion Alina-Paula , - The Social Law Rules Developed by the Council 211
Chirtoacă Natalia of Europe
21. Marinas Marius- - Trade Integration of the Central and Eastern 215
Corneliu European Economies with the Euro Area
22. Marinas Marius- - Business Cycles Synchronization with the Euro 220
Corneliu Area. The Case of CEE countries
23. Milea Camelia, Ailinca - Aspects of Some Problems of the Euro Area 226
Alina Georgeta, Member States
Iordache Floarea
24. Moldovan Nicoleta- - The Incidence of Environmental Taxes on the 232
Claudia, Corduneanu Economic Competitiveness
Carmen
25. Nedelcu Monica Letitia - The Liquidity of the Financial System and the 238
Sovereign Debt Crisis in Europe – Is There a
Solution?
26. Neguriță Octav - The Effects of Creating the European Union 244
Bank, on the Banking System in Romania
27. Pana Elena Cristina, - Corruption, with Emphasis on Health System 250
Nisulescu Ileana
28. Păiuşan Robert - Mihail Manoilescu, a Professor of the 255
Polythechnic School of Bucharest
ix
29. Prada Elena - Economic Development and Migration in 259
European Union
30. Roman Angela , Șargu - Evolutions and Trends in the European 265
Alina Camelia Microfinance Market
31. Sandu Ioana - Moldova in the Eastern Partnership: Free Trade 271
Attempts, Asymmetric Benefits
32. Şeitan Silviu-Marius - Administrative Perspectives Concerning the 275
European Economic Relations
x
11. Mașcu Simona, Burlacu - Harmonisation of Excise Duties on Energy 330
Valentin, Cojocaru Products and Electricity in Central and Eastern
Diana European Countries
12. Mihai Mihaela, Țițan - Are Education and Innovation the Paths to the 336
Emilia Inclusive Economy?
13. Neacșu Gabriela, - Current Requirements for the Quality of the 341
Dăneci-Pătrău Daniel Environmental Factor “the Water” in the Area of
Romanian Black Sea Coast
14. Sabou Simona - Tourism in Maramureş, between Desire and 347
Reality
15. Sarlea Mihaela, Manta - The Exposure of Chinese Higher Education to 353
Stefan George, Vaidean the Development of International Education
Viorela Ligia System
16. Smrcka Lubos, - Economic Aspects of the Aging Population. 359
Colibasanu Oana – Case Study on the Czech Republic
Antonia
17. Stignei Veronica Paşa - Local Government and Sustainable Economic 365
Development
18. Stignei Veronica Paşa - Mathematical Analysis of the Incidence of Local 371
Government Investments on Economic Growth in
the Constanta county
19. Ulman Simona-Roxana - National Competitiveness and Its Measuring 376
xi
7. Avram Costin Daniel - The Balance between Flexibility and Security 415
in the Labor Market in Romania
8. Bozga Liviu, Mateescu - IT Service Management- Key to Success in 419
Mihaela, Gheorghe Business
Marian
9. Brinza Georgiana - Supply Chain Metrics 424
10. Carstea Claudia - Optimization Techniques in Project Controlling 428
11. Cherbeleata Iuliana, - The Real Problems of Mergers and 433
Gogoncea Ramona Acquisitions
12. Cioban Costel-Ioan, - A World Of "Seniors" - The Effect Of The 437
Cioban Gabriela-Liliana Crisis?
13. Ciobanu Dumitru, - Advantages and Disadvantages of Using Neural 444
Vasilescu Maria Networks for Predictions
14. Condrea Elena, Sârbu - Aspects Regarding Quality Assurance, 450
Roxana, Rizea Raluca Acreditation and Certification of Romanian
Daniela Universities
15. Cosma Emil - Events and Macros in Microsoft Access 2013 455
16. Cosma Sorinel - Weber and Mises: Views on Bureaucracy 461
17. Cosma Sorinel - Leon Walras and Social Justice 467
18. Cristian Elena Raluca, - The Emigrant ''Identity'' în the Current Global 473
Bărăgan Laura Georgeta, Context
Moise Elena
19. Dimitriu Mihail - Controlling the Influence of Globalization on 478
the Firm
20. Dobre Ana Maria, - R versus Other Statistical Software 484
Caragea Nicoleta ,
Alexandru Ciprian
Antoniade
21. Gheorghiu Gabriela, - Externalities, Public Goods and Natural 489
Fronea Ciprian Mihail, Monopoly as Market Failures and Their
Brăiloiu Liviu Implications for the Consumer
22. Gheorghiu Gabriela - Information Assymetries as the Main Source of 494
Market Failure Affecting the Consumer
23. Holban Dana-Elena - Economic Issues in the Wind Energy 500
Development at World and European Level
24. Horga Maria-Gabriela, - The Influence of Income Changes on the 504
Ionescu Alexandra, Nancu Financial Performance of the Firm
Dorinela
25. Ilie Constantin, Ilie - Analysis of the Tourism Influence Over the 509
Margareta, Bujdoveanu Employment and the Persons’ Income in the
Aurica Constanta County Area
xii
26. Iliescu Mihaela Elena, - Consumers’ Behaviour on the Insurance 513
Stroe Andreea Mihaela Market
27. Ionescu Cristian - Investors' Perceptions and Financial Instability 518
in the Emerging Countries
28. Ionescu Cristian - Current Account Deficit and Financial 523
Instability in the Emerging Countries
29. Jeflea Victor Florin - Ways of Classifying Banking Customers Using 529
Fuzzy and Crisp Algorithms
30. Jeflea Victor Florin - Cloud Computing Information System for 534
Attracting Banking Sector Customers
31. Korneenko Olga , - Modern Trends in the Use of Information 538
Doroshev Dmitry Systems in Trade Organizations
32. Lazăr Cristina Mihaela, - Cloud Computing for Small and Medium-Sized 541
Muhcină Silvia, Muhcină E-Commerce Businesses. An Overall Look on
Despina the Benefits and Risks of Cloud Computing in E-
Commerce
33. Lupsa-Tataru Dana - Towards a Knowledge-Based Economy 545
Adriana, Lupsa-Tataru
Florin Razvan
34. Lupsa-Tataru Dana - Knowledge Management Evaluation. 549
Adriana, Lupsa-Tataru Comparative Study
Florin Razvan
35. Maftei Daniel, Albu - The European and Romanian Wind Energy 553
Angela Investments Dynamics
36. Mateescu Mihaela, Suba - Decision Support Tool to Testing and Trials 559
Gabriela laboratories
37. Moraru Camelia, Popovici - Effects of Fiscal Policy on Economic Growth. 563
Norina, Ștefănică Virginia An Analysis Based on Economic Literature
38. Neagu Olimpia - Organisational Learning and Knowledge 568
Management within NGOs
39. Negoescu Gheorghe - The Entrepreneurship, an Actual Challenge for 573
the Young Graduates of Higher Education
Institutions
40. Oncioiu Ionica - Data Mining - an Instrument Managing the 579
Knowledge Collected for the Enterprise
41. Paraschiv Dorel Mihai, - Simulation Models in Economic Higher 584
Belu Mihaela Gabriela, Education
Popa Ioan
42. Paraschiv Dorel Mihai, - Eco-Innovation and its Contribution to 589
Cocuti Raluca-Elena Competitiveness
xiii
43. Parpandel Denisa - Elena, - Emerging Markets - “the Engine” of World 595
Gheordunescu Maria Economy
Elena, Gust Marius
44. Pascu Emilia , Milea - Improving Customer Relations Through 601
Oana Maria , Nedea Mediation
Petronela Sonia
45. Păcuraru Raluca Olguţa , - Using Blackboard Learn to Develop 605
Grecu Iulia Educational Materials
46. Pivoda Roxana - Changing Labor Paradigms in the 611
Contemporary Era
47. Pop Stanca Alexandra - A Parallel between Socialism and Cooperatism 616
48. Popa Florina - The Role and Importance of Services in 621
National Economy
49. Postolache (Males) - Development of an Intelligent System 626
Daniela Prototype Intended for Accounting in Forestry
Entities
50. Răduț Carmen, Codreanu - ERP Implementation and Integration in SMEs 632
Diana-Elena
51. Robu Maximilian Iosif - Implementing Cloud Computing Based 638
Information Systems
52. Rogoza Mykola , - The Method of Estimation of Development 642
Кuzmenko Aleksandra Potential of Trade Enterprises of the System of
Consumer’s Cooperative Society of Ukraine
53. Sîrghi Nicoleta - The Evolutionary Perspective of the Firm 648
54. Stanica Nicolae Cristian - Multi-Scale Integrated Analysis of Socio- 652
Economic Systems
55. Şerbănescu Luminiţa, - Usage of Business Intelligence Solutions for 658
Ţaicu Marian the Analysis of Deviations in the Use of the
Standard Cost Method
56. Vancea Diane Paula - Policy Action to Prevent Unemployment in EU 663
Corina, Ploae Victor and Romania
57. Văduva Cecilia Elena - Export Credits Insurance in the International 667
Practice
58. Vidrascu Paula - Angela, - Unemployment - The Global Issue of 673
Iacob Oana Camelia, Contemporary World Economy
Volintiru Ana Maria
xiv
Subsection: Marketing – Management
1. Aldea Roxana-Elena, - Consumer Socialization of Children – Literary 679
Brandabur Raluca Review
Ecaterina
2. Anastase (Badulescu) - Ensuring the Profitability, as an Essential 685
Ileana Objective of Public Organization in
Management
3. Asandei Mihaela, - The Hypermarket – A Solution to Develop the 690
Gangone Andreea Romanian Retail
Daniela
4. Balabanits Anzhelika, - Improvement of the Marketing Interaction 696
Minakova Iryna based on Information Technologies
5. Balint Antoniu Ovidiu, - The Applicability of the Behavioral Market 702
Cristea Andrei Mihai, Segmentation Theory in Transport Networks
Niculescu Daniela
Mihaela
6. Bilouseac Irina - The Deconcentration of Public Services in 707
Romania
7. Boldureanu Daniel - Performance Indicators of Human Resources 712
in Health Organization
8. Boldureanu Daniel - Quality Indicators Used in the Analysis of 716
Health Managerial Performance
9. Borovykov Oleksandr - The Experience of Activity of National Service 720
of Mediation and Reconciliation of Ukraine
10. Buşu Mihail , Cioacă - An application of the Kalman filter for market 726
Sorin studies
11. Călin-Costin Georgiana- - The Risk- an Element that Influences the 732
Delia Success of an Entrepreneur
12. Ciceo Andreea, Ionescu - A Critical Review of Service Quality 736
Andreea
13. Ciobanica Mihaela- - Strategic Capacity Assessment Action at S.C. 741
Lavinia Hervis S.A. During the Crisis
14. Ciobanica Mihaela- - Management of Personnel Fluctuations at the 746
Lavinia CN Romanian Post
15. Ciorasteanu Gianina, - Online Marketing for Small Strategic Thinking 752
Mihailescu Mariana Farmers in Organic Farming
16. Constandache Mihaela, - The Analysis of the Total Quality Management 757
Stanciu Anca-Cristina, effects in SC Cupidon SA from Saturn Resort
Radu Steluta and their Impact on the Organization
Competitiveness
17. Dinculescu Elena-Silvia, - The Trends in Banking Management of 763
Vilcu Anca Romania
xv
18. Dinu Gabriel - Models of Voter Bahavior 768
19. Dinu Loredana - A Study Regarding the Tourism of the Area 772
Iron Gates
20. Dionisie Cristina - Exploiting the Agritourism Potential in the 776
North East Region during the current Crisis
21. Drogomyretska Mariana - Employee Motivation Theories and their 781
Applications in Modern Organizations
22. Grigore Claudia , Zanfir - Emotion Management in Health Care Services 786
Adriana
23. Grigorescu Adriana, - The Importance of Communication 790
Lupu Maria - Magdalena Proficiency in Management
24. Huma Elena - Mergers & Acquisitions Market Trends In 796
2013
25. Ioan Corina Anamaria, - Social Networks – Challenge and Oportunity 800
Luca Florin Alexandru, in the Development of Personal Brand
Sasu Constantin Marketing Strategies in the Virtual Environment
26. Ionescu Andreea, Ciceo - Particularities of the Marketing 806
Andreea Theodora Communication Strategy through Social Media
27. Ionita Roxana Mihaela - Vulnerabilities in Romanian Tourism 810
Development
28. Isac Nicoleta, Antoniu - Analysis of Motivational Theories on 814
Eliza Approaches of Human Factor at Next
Automobile Company
29. Isachi Silvia Elena, - The Importance of Marketing Activities during 820
Chitiga Georgiana the Economic Crisis
30. Jugănaru Ion-Dănuț , - The Current Stage of Shale Gas Exploration 825
Jugănaru Mariana and Expoatation in European Countries
compared to the U.S. Sitoation
31. Jugănaru Mariana , - SWOT Analisys on Shale gas 831
Jugănaru Ion-Dănuț Exploration/Exploitation in Romania
32. Kostyshyna Tetyana - Education Development as a Prerequisite for 837
the Formation of a Competitive Wage System in
Consumer Cooperative of Ukraine
33. Leon Ramona - Diana - A Managerial Early Warning System for the 842
Sustainable Knowledge Based Organization
34. Luca Florin Alexandru, - Implementation and Development of the 848
Ioan Corina Anamaria, ”Employer Branding Management” Concept on
Sasu Constantin the Romanian Labor Market in the Current
Economic and Social Context
35. Mihai Daniela - Study on E-Commerce Market Segmentation 855
xvi
36. Mitran Paula Cornelia, - Possibilities of Evaluating the Effects of 861
Parvu Iuliana, Ipate Implementing the Quality Management Systems
Dragoș within the Romanian Organizations
37. Morariu Alunica - - Career Analysis in the Public Administration 868
System
38. Morozan Cristian, Enache - Brand Communication For Youth 874
Elena
39. Morozan Cristian, Enache - Online Performance Through the Affiliate 880
Elena Marketing
40. Muhcina Silvia , Moraru - Image and Identity in the Academic Field 885
Andreea-Daniela, Fronea
Ciprian Mihail
41. Munteanu Valentina - Special Features Of The Human Resources In 889
The Field Of Commercial Companies
42. Munteanu Valentina - Managerial Style And Organizational Climate 894
43. Nica Panaite, Leon - A Managerial Early Warning System for the 898
Ramona - Diana , Neştian Sustainable Knowledge Based Organization
Andrei Ştefan
44. Nicodim Liliana, Negoi - Development Trends of Internet Business 904
Eugen Remus, Nitu Models
Claudiu Valentin
45. Nicodim Liliana, Negoi - Proposed Solutions from Government Level 908
Eugen Remus, Nitu and Companies to Maintain Profitability in the
Claudiu Valentin Internet Business during the Economic Crisis in
Romania
46. Nicolae (Gîju) Elena - Knowledge Management - a Prerequisite for 913
Daniela the Development and Management of
Intellectual Capital
47. Nițu Oana, Epure Dănuț - Evaluating the Potential Competition of the 917
Tiberius, Tileagă Cosmin Enterprise
48. Olteanu Laura - Dynamics of Tourist Accommodation 923
Possibilities in Romania Under the Impact of
Economic Crisis
49. Olteanu Laura - Consumer Preferences for Products and 929
Tourism Services in Romania between 2008-
2011
50. Oncioiu Ionica - An Empirical Study of Consumer Behavior in 935
the Cuban Mobile Phone Market
51. Parvu Iuliana, Mitran - Managerial Strategies for Enhancing 941
Paula, Ipate Dragoș Universities - Bussines Environment Partnership
52. Podasca Raluca, Matei - The Role of Support Systems in Intelligent 947
Ramona Mihaela Decision Making
xvii
53. Popa Simona, - Quality Assurance VS.Quality Culture into the 953
Constantinescu Lucretia Higher Education Services. Points of
Mariana, Ionescu Convergence to Performance
Romanita Valentina
54. Popovici Norina, Moraru - Human Resource Management: Key Issues 959
Camelia, Popovici
Veronica
55. Preda Costel - Methods and Techniques to Motivate Human 965
Resources in NFA ROMSILVA
56. Preda Costel - Strategies to Improve Human Resources 969
Management in the NFA ROMSILVA
57. Rudych Lesia - Strategic Approaches In The Formation Of 973
Human Potential In Terms Of The
Competitiveness Of Enterprises Of Consumer
Cooperatives In Ukraine
58. Rus Mihaela - Perceived Leadership Style Influence on Job 978
Satisfaction for Staff to Aviation Companies
59. Salagean Liana Ramona - Marketing Policies, Promotion and 984
Comunication on Pharmaceutical Market in
Romania and European Union
60. Simoni Smaranda, Mihai - Organizing Strategies in Ecotourism 989
Daniela Management
61. Slavova Milanka - Integrating Internal Branding in Marketing 995
Strategy
62. Stan Ştefania Anca - Teamwork- a Solutions for Romanian 999
Organizations
63. Stanciu Anca Cristina, - The Importance of Commercial Services in 1003
Constandache Mihaela, the Trade Activity
Racoceanu Cristina
64. Stanit Alexandra, Popa - Defining Performance Management in the 1009
Liliana Mihaela Public Sector
65. Stepanova Larysa - Main Directions of Labor Potential 1014
Development of Trade in Ukraine
66. Sudacevschi Mihaela - Issues of Marketing Strategies in the Banking 1018
Industry
67. Tănase Gabriela Lidia - The Budgets’ Role in the Audit of Economic 1023
Entities
68. Tocan Madalina Cristina, - Modern Approaches in Romanian 1029
Chindris-Vasioiu Oana Management in the Context of Knowledge
Economy
69. Tudorache Ana-Maria - The Relationship between Motivation and 1035
Efficiency of Human Resources
xviii
70. Vasilescu Liviu - Conflict and Autorithy in the Educational 1039
System
71. Voicu-Dorobantu Roxana - Eco-Innovation in SMEs – a Draft Tool for 1045
Improvement
72. Yurko Igor - Application of the Workshop Method as a 1049
Solution for a Regional Program of the Retail
Entrepreneurship Development
73. Zima Liliana Adela - Public Policy End of Life Vehicles Reflected 1054
at Opel/Vauxhall
74. Antohi Ionuț - The Challenges of Human Resources 1060
Management Practice in a Knowledge Based
Organization
xix
10. Botoc Claudiu - The Effect of Working Capital on Profitability: 1114
Evidence from Romania
11. Bunea-Bontas Cristina - Methods for Measuring the Impairment of 1119
Aurora Accounts Receivable
12. Burcă Ana-Maria, - Application of Autoregressive Models for 1125
Bătrînca Ghiorghe Forecasting Marine Insurance Market
13. Busuioc Witowschi - Literature Review Regarding the Determinants 1130
Irina Raluca of Banking Profitability
14. Caloian Florin, Sahlian - Concepts and Principles of Performance Audit 1135
Daniela Nicoleta,
Ponorica Gabriela
Andreea
15. Carataș Maria Alina, - Risk Management and Compliance as Main 1141
Spătariu Elena Cerasela Topics within Nowadays’ Romanian Internal
Auditing
16. Călean Ioana, Rof - Addressing the Concept of Performance and its 1146
Letita-Maria Quantification in Romanian and French Vision
17. Chitan Gheorghe - The Effects of Corporate Governance on the 1151
Net Interest Margin and the Solvency Ratio -
Evidence from Romania
18. Chitiga Georgiana - The Budget Deficit – A Reflection of the 1156
General Economic Imbalance
19. Cibotariu Irina Ştefana, - The Politics of Budgetary Expenses - Essential 1162
Iancu Eugenia Element within the Macroeconomic Politics
20. Ciurlău Loredana, - Implementation of Modern Concepts of Control 1166
Căruntu Genu and Internal Audit in the Banking System
Alexandru
21. Clipici Emilia, Frant - Characteristics of Health-Care Systems 1170
Florin
22. Covrig Mihaela, - On Some Determinants of Demand or 1176
Mircea Iulian, Manea Renunciation for Renewal of CASCO (Motor
Daniela Ioana Hull) Insurance Policies for Individuals
23. Dandara Daniela - The Impact of the Global Financial Crisis on the 1180
Romanian Banking System
24. Dima Florin-Constantin - Measurement and Evaluation in Financial 1185
Accounting
25. Dima Florin-Constantin - Accounting Normalisation Instruments and 1189
Sources
26. Dobre Elena - Innovative Financial Instruments-Cause and 1193
Solution for Financial Crisis?
xx
27. Dobre Florin, Vîlsănoiu - Financial Reporting under XBRL and the 1199
Daniel, Popa Florina Impact on the Financial Audit
Adriana
28. Dobre Florin, Popa - Briefing In History Of Audit And Financial 1204
Florina Adriana, Brad Reporting
Laura
29. Dogaru Dorin Madalin, - Electronic Public Procurement - A New Reality 1210
Pautu Sorina Crina , On Public Administration
Mustea Lavinia
Teodora
30. Doros Alexandra - From the Accounting Treatment Required by 1214
the Accounting Regulations Corresponding with
European Directives to the Accounting Treatment
Required by IFRS - Legislative Steps Taken by
Romanian Credit Institutions
31. Ducu Corina Maria - Operational Techniques and Methods used in 1218
the Internal Control Process
32. Duduiala Popescu - The Financial and Economic Crisis in Romania 1222
Lorena and the Possibilities of Recovery
33. Duhnea Cristina - The Relation between Economic Growth and 1227
Capital Flows in the Context of Financial
Liberalization
34. Dumitrescu Diana, - Ethical Dilemmas: Are the Accountants Doing 1232
Bobițan Nicolae, Something Good or Something Bad?
Costuleanu Carmen
35. Dumitrescu Serju, - Some Considerations on the Fiscal Fraud 1237
Avram Marioara Resulted from the Assignment of Social Shares
36. Dumitru Florentin - Using the Information Tehcnologies for the 1242
Valentin, Stanila Human Resources Reporting
Georgiana Oana, Jinga
Gabriel
37. Georgescu Cristina - Aspects Regarding the Influence of the 1248
Elena Governance Structure on the Company’s
Performace
38. Georgescu Cristina - Relevant Performance Indicators in the Analysis 1253
Elena of Corporate Governance
39. Georgescu Iuliana - Transfer Pricing: Alibi for Cross-Border Tax 1258
Eugenia, Afrăsinei Evasion
Mihai-Bogdan
40. Ghiță-Mitrescu Silvia, - The Contracts for Difference – Elements of 1264
Duhnea Cristina Financial Innovation on the Romanian Capital
Market
xxi
41. Guni Claudia Nicoleta - Consideration on consolidated financial 1268
statements of the group
42. Guni Claudia Nicoleta - The role of corporate governance within groups 1274
of companies
43. Gust Marius - Dynamics and Structure of Domestic Credit in 1279
Romania
44. Haralambie George - The Impact of Globalization in the Context of 1284
Alin the Current Crisis
45. Huian Maria Carmen - Considerations on the Profile of Respondents to 1288
the Comment Letters Submitted for IFRS 9
Financial Instruments. Phase 1 and 2
46. Iancu Eugenia, - Conceptual Sides Concerning the Inter- 1294
Cibotariu Irina Ștefana Conditionality amongst the Underground
Economy and Taxation
47. Ionescu Alexandra, - Firm Financial Performance: An emprical 1299
Horga Maria-Gabriela, Investigation on Romanian SMEs
Nancu Dorinela
48. Ionete Toplicianu - A Cost Radiography and the Premise of the 1304
Selina, Toplicianu Application of the ABC Method in Overnight
Valerică Hospital Stay
49. Ispas Roxana - Consequences of the Adoption of European 1309
Fiscal Pact in Romania
50. Ispas Roxana - The Impact of Financial Crisis on the 1315
Transactions in Off-Shore Zones
51. Lenghel Radu Dorin - Views on the Internal Control System of 1321
Economic Entities
52. Lenghel Radu Dorin - Views on the Internal Control System of Public 1327
Entities
53. Lobonț Oana-Ramona, - Theoretical Condensation of Intensity, 1333
Vlădușel Ioana, - Limitations and Determination of Tax
Compliance in a Behavioral Economics
Approach
54. Manea Marinela- - The Fair Value – between Theoretical 1339
Daniela Predictability and Practical Modeling within the
Romanian Accounting Area. Case Study for the
Societies within the Transportation Field in
Romania
55. Manta Stefan George, - Quantitative Analysis of the Higher Education 1345
Sarlea Mihaela, System in Germany- Realities and Perspectives
Vaidean Viorela Ligia
56. Mardiros Daniela- - Foreign Direct Investments Under the Impact of 1351
Neonila Public Sector's Corruption in the European
Union's Economies
xxii
57. Mardiros Daniela- - Effects of Corruption in the Public Sector of 1357
Neonila Emerging Economies - Behavior of Public
Officials, Public Funds Misappropriation and
Government Effectiveness in the Fight Against
Corruption
58. Mănescu Dragotoiu - Accounting Policies Influence Upon the 1363
Mileva Valentina, Position and Financial Performance in an
Togoe Greti Daniela , Enterprise
Avram Veronel
59. Mihaila Nicoleta, - Evolution of Taxation in the period 2004-2012. 1367
Isachi Silvia Elena Impact on the Romanian Economy
60. Mihalache Anita - Case Study on Export Accounting Based on 1372
Commission
61. Mitroi Loredana - New Measures in the Management of European 1378
Georgiana, Nicolae Banking System under the Influence of the
(Gîju) Elena Daniela Economic Crisis
62. Munteanu Irena, Pitu - The Transmission Mechanism of the Interest 1384
Mirela Rates from the Inter-banking Monetary Market
to the Loan Market in Romania
63. Munteanu Irena, Piti - Concentration and Competition in the 1389
Georgiana, Ratea Romanian Banking System
Mihaela
64. Munteanu Petrică - Accounting Support Function for Supply Chain 1394
Management
65. Nicolae Traian Cristin, - Fair Value Accounting versus Historical Cost 1399
Pepi Mitică Accounting - the Impact on Financial Statement
Presentation
66. Niţoi (Barbu) Nicoleta, - Diversity and Consensus on the Status of 1405
Barbu Costel, Nistor Accounting
Ion
67. Nițu Oana, Epure - The Correlation Between Inflation Rate, Interest 1410
Dănuț Tiberius, Tileagă Rate and Household Savings in the Current
Cosmin Period
68. Paşcu Ana-Maria - Considerations Concerning the Quality of the 1414
Services Provided by Accounting Professionals in
Romania
69. Pepi Mitica, Nicolae - Audit Conservatism versus Unique Regulation 1420
Traian Cristin of Financial Markets in Romania
70. Percic Stanislav, - Empirical Evidence of a New Trilemma 1426
Apostoaie Constantin-
Marius
xxiii
71. Petrescu (Neacsu) - Reorganization, a Possible Bridge over 1432
Claudia Maria, Vladaia Bankruptcy
(Vlad) Madalina Lucia,
Nistor Ion
72. Piciu Gabriela Cornelia - Criteria for Substantiating Decisions under Risk 1436
73. Pochea Maria-Miruna, - Significance of Volatility in Option Pricing 1440
Filip Angela-Maria
74. Popa Ionela - Substantiation Budgetary Indicators. Features 1445
on their Size at an Educational Institution
75. Popescu Tudor - Exit Routes and Performance Measurement for 1449
Private Equity Investments
76. Radu Riana Iren, - The Entrepreneurship, an Actual Challenge for 1455
Mihalcea Lucean, the Young Graduates of Higher Education
Negoescu Gheorghe Institutions
77. Ristea Luminita , - Is Patent Box a Solution to Retain and Attract 1461
Trandafir Adina Innovative Businesses in EU? History, Concept
and Further Development
78. Ristea Luminita , - Introducing Patent Box Regime in UK – a 1466
Trandafir Adina possible model to be followed in Romania
79. Ruse Elena, - The Role of Cost Accounting in the 1471
Susmanschi Georgiana Management of the Activity Center
80. Ruse Elena, - Internal Audit and Fraud Prevention 1475
Susmanschi Georgiana,
Spineanu Georgescu
Luciana
81. Sahlian Daniela - Solvency Margin in Insurance Field – The Need 1480
Nicoleta, Stănilă for IFRS Compliance
Georgiana Oana, Ispas
Simona
82. Salomia Maria - Features on Risk Assessment in Financial Audit 1486
Mădălina, Pirnea Ionela
Carmen
83. Sobol Anna, - The Effectiveness of the Financial Control and 1490
Sukhachova Natalia, Factors Affecting It
Krachenko Iryna
84. Spătariu Elena - The Paradigm of Information Technology and 1496
Cerasela, Caratș Maria CAATTs in the Modern Internal Audit
Alina
85. Spineanu-Georgescu - Convergences and Divergences between Cash 1501
Luciana Flows and Cash Flows Company
86. Șerbănescu Cosmin - An Approach to Enterprise Risk Management 1505
for Archive Depos
xxiv
87. Ştefan-Duicu Viorica - Economic and Social Mutations - Interacting 1509
Mirela, Ştefan-Duicu with the Subject and Paradigms of Management
Adrian Sciences
88. Talpos Ioan, Avram - The Evolution of Public Debt in Romania in the 1514
Alexandru Context of the European Fiscal Compact
89. Tanasa Florentin-Emil, - Case Study on the Accounting Policies Used by 1519
Prodan-Palade Doina Companies Listed on the Bucharest Stock
Exchange (BSE) Tier I
90. Todea Nicolae, Udrea - Effects of the Option "Fair Value" on the 1524
Ana Maria, Cioca Entity's Financial Position and Assets
Ionela Cornelia
91. Tofănică Ramona- - Profitability of the Banking System in Romania 1529
Ionela
92. Togoe Greti Daniela - Auditor's Role in the Use of European 1533
Structural Funds
93. Trandafir Raluca- - The Analysis of the Economic and Financial 1537
Andreea, Mirea Performance Based On the Rates of Return in
Marioara Hospitality Industry Companies On the
Romanian Seaside
94. Ţaicu Marian, Dumitru - Aspects Regarding the Relevance of the 1543
Mihaela Performance Measurement Indicators
95. Udrea Ionel - Radiography of The System of Credit 1549
Institutions in Romania
96. Udrea Ionel - Analyzing Banking Risk 1554
97. Ungureanu Mihaela - The Economical and Ecological Importance of 1559
the Environmental Impact Assessment
98. Ungureanu Mihaela - An Answer to the Need for Businesses’ 1564
Compliance with Green Demands – ECO-AUDIT
99. Ungureanu Sebastian - Performance Analysis on Intermediary Balance 1569
Management Panel
100. Văduva Maria - The Risks in the Insurance of Persons 1575
101. Vechiu Camelia, - The Crisis and its Effects upon the Romanian 1580
Gherman Liliana - Banking System
Victoria, Tudose
Geanina - Gabriela
102. Velicescu Nicolae - Accounting Policies of fixed assets and 1584
Bogdan, Branza Diana Influence of Financial Results in Romanian
Elena Listed Companies
103. Vlădaia (Vlad) - Fair Value and Its Significance in Performance 1589
Mădălina-Lucia,
Petrescu (Neacșu)
Claudia-Maria
xxv
104. Mititelu Cătălina, Radu - The European Social Charter (Revised) and the 1593
(Mitra) Mariana Protection of the Human Rights
105. Radu (Mitra) Mariana, - Specific Provisions on the Procedure for 1599
Mititelu Cătălina Judicial Cooperation in Criminal Matters
xxvi
Section I
International Affairs and European Integration
***
Subsection 1
International Affairs
“Ovidius” University Annals, Economic Sciences Series
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Ardelean Andreea
Burciu Andreea
Titan Emilia
The Bucharest Academy of Economic Studies
ardelean.andreea@yahoo.com
andreea.burciu@gmail.com
emilia_titan@yahoo.com
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ANOVAb
Table 1. Model SS df MS F Sig.
Correlations
1 Regression 2.020 5 .404 1.076 .405a
gdp emigr
Residual 7.134 19 .375
gdp Pearson Correlation 1 .362
Total 9.154 24
Sig. (2-tailed) .064
N 27 27 Coefficientsa
emi Pearson Correlation .362 1 Unstand. Stand.Co
gr Sig. (2-tailed) .064 Coeff. eff.
N 27 27 Std.
Model B Err Beta t Sig
The scatter plot is giving a slightly idea of
1 (Const) .251 .357 .704 .490
how the two comparable data sets agree with
each other. This table shows Pearson product EPI -.032 .028 -.433 - .257
moment correlations between the pair of 1.168
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Analysis of Variance
Source Sum of Df Mean F- P-
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5. References
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international notion which defines a working -the implications of global city culture as
method of intergovernmental cooperation) well as the environmental issues of the U.N.
and globalism (specific definition class of environmental global program Agenda 21.
ideological term of imperialism, in which a [8],[9]
part dominates all other parties). All of these imply a deepening of
Thus globalization term refers to the globalization cost benefit distribution
continuous, dynamic and progressive analysis in terms of the North South
integration of nation states from discrepancies and supranational -national
economically, financially, politically and contradiction, in the way of the necessary
culturally point of view because the problems reform of so called Washington Consensus
facing humanity are global rather than ,on the relationship between the global
national. “autarchic” macroeconomic treatment and
From a larger perspective, globalization is the real living consumer standard, between a
both a concept, a reality condition and an global approach and a deepen reconsidering
socio cultural process that encompasses the of real national specific conditions, the
causes, course, and consequences of respect of the sovereignty of nation state
transnational and transcultural integration of constitutionality, its economic policy and
nation states actors. national culture to diminish the costs of over
Determined by the by Christianity and indoctrination risk of the presumed free
Great Geographical Discoveries spillovers as choosing human being that has duties and
well the impact of the three waves of rights written in state constitution as well in
agrarian, industrial and knowledge revolution his conscience.
globalization is characterized by flows of The reality of globalization is sad : despite
goods, services and people, meaning of the apparent victory of free markets
deepening of economic, commercial ideology, and the pretention that
integration, transfer of policies and globalization is an instrument of closeness,
knowledge exchanges across borders, global appear two isolated worlds, each with
political negotiation of national interest in the specific problems: on one hand it is about
spirit of the fact that “interdependencies the globalization of richness that exploit
respect the independence of parts”[1] business, travel and educational opportunities
It is a borderless world of formal and protecting its own citizens' rights and on the
informal rules in which the free migration of other hand there is another globalization of
economic, financial, social, technologic, poverty and loneliness, which also deserve
knowledge and human capital generate respect which implies the need to regulate
global positive and negative spillovers in the markets and global reform of global
context of a socio cultural and politic economic, financial and democratic
historic process of transition to risk society, institutions.
illustrated by the exchange of ideas, In the same time globalization is a topic
experiences and general human aspirations in of scientific researches related to conceptual
which the unique and unrepeatable national and applicative issues such as:
patrimony enriches the heritage of universal - the related concepts of centre and
values[2],[3] periphery in the historical evolution of the
In this respect, the impact of globalization world as a global system global [10];
is vast in time space, and that reveals some -competitive transnational practices of
economic, political, and cultural issues as circumscribed aspects of economic, political
such: and cultural management in which private
-the implications of global actors agents manifests as capitalists, bureaucrats
behaviour (World Bank, IMF and OMC) on and cultural[11];
the unequal distribution of globalization -multidimensional aspects of the network
costs and benefits. [4], [5] society and its technological space time
-the issues generated by post communism compression –the perception of physical
cold war politics encouraging the space disappearing in the context of
intergovernmental cooperation and reducing accelerating of communication speed-
the political hegemony of supra state [12],[13]
institutions influence[6],[7] ;
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Botiş Sorina
Transilvania University Brașov, Faculty of Economics and Business Administration
sorina.botis@unitbv.ro
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monopolies, consortia, trade unions and other Table 2. The number of credit institutions
banking alliances, resulting from the by country in 2013
unification of banks, thus forming new Country Credit institutions
power centres.[7] BE Belgium 104
Table 1. Regions by total tier 1/total DE Germany 1.866
assets/total pre-tax profits 2011 EE Estonia 34
Country Tier 1 Assets Pre-tax IE Ireland 469
($bn) ($bn) profits GR Greece 52
($bn) Es Spain 302
US 1059.9 13,341.0 131.5 FR France 633
Eurozone 1721.6 40,895.0 2.1 IT Italy 710
China 781.5 13,533.2 206.3 CY Cyprus 135
Japan 600.9 13,075.5 60.0 LU Luxemburg 140
UK 440.8 9999.5 32.9 MT Malta 27
Brazil 123.8 1729.2 33.1 NL Netherlands 262
Source: www.thebankerdatabase.com AT Austria 749
PT Portugal 150
According to the Lisbon Group, the SI Slovenia 23
international banking sector is following the SK Slovakia 28
trend of the economy, which means that FI Finland 323
integration processes, technological, Euro area 5998
economic, capital concentration, are more
Source: ECB-Number of monetary
intense in most developed three regions,
financial institutions(MFIs): February 2013
North America, Western Europe, Japan and
www.statistics@ecb.europa.eu
newly industrialized countries of South an
Southeast Asia.
The first merger in EU took place in June
Industrialised Europe has been the
2005 when UniCredit merget with German
primary destination for cross-border lending
Group HVB, which is itself formed by the
activity for the past three decades. The US is
combination of Bavarian banks Bayerische
the second destination, followed in the past
Hypotheken-und Wechsel-Bank and
decade, by entire regions like Asia and
Bayerische Vereinsbank in 1998. Integration
Pacific Countries, emerging Europe and
with the HVB Group was reinforced by the
Latin America.
merger with Bank Austria Creditanstalt in the
The major factors contributing to
year 2000 and enable further growth for the
European banking sector consolidation,
UniCredit Group. The company has its
through a large number of mergers and
registered office in Rome, with
acquisitions, were technological advances,
approximately 40 million customers and
the globalization of financial markets,
operations in 22 countries. UniCredit’s core
enhanced supervision of credit system, the
markets are Italy, Austria, Russia and
creation of a single financial market in the
Southern Germany, being the largest
European Union and the introduction of the
financial group in Eastern Europe. The
euro, market liberalization, economic
company has investment banking divisions in
reforms, even banks’ desire to increase in
London, Milan, Munich, Vienna, Moscow,
size.
Budapest and Warsaw.[8]
The result was a constant growth of
Deutsche Bank (DB) is currently the
mergers and acquisitions in the EU banking
largest bank in the world with assets of
sector. In the same time the number of credit
EUR2.186 trillion (US$2.810 trillion). In
institutions in the euro area and in the EU
2012 was awarded the title of Best Foreign
decreases further, from approximately 12.000
Global Investment Bank by Euromoney
at the end of 1990 to 7.000 at the end of
magazine and won six awards from Global
2004, to 5.998 in February 2013 in EU
Finance including Best Corporate Bank, Best
banking.[2]
Foreign Exchange Bank and Best Credit
The table shows the number of credit
Derivates Provider. Mitsubishi UFJ Financial
institutions by country.
Group (MUFG) is the second largest
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financial institution in the world with assets of restructurating and the reform of
of US$2.803 trillion. The Bank of Tokyo- commercial banking and the increase of the
Mitsubishi UFJ is the main banking arm of banks size and the value of mergers and
MUFG.[3] acquisitions. At the end of 90s, each of
American banking transformation nationwide banks had less a hundred
become possible after the changes in the branches, while the liders in the group had a
banking and financial law. Introducing in the chain of seversl thousand branches.
1990s the following legislations, Riegle- Despite this tendency, the number of bank
Neal Interstate Banking and Branching mergers and acquisitions in the USA was
Efficiency Act of 1994, played the big role in growing very slowly in the next few years.
the acceleraration of the mergers and The number of banks M&A transactions
acquisitions process in the USA, allowed between 2000-2004, increased only from 213
buying interstate companies possessing a in 2000, to 215 in 2004.[9]
bank, banking mergers in different states, The financial crisis spawned bankruptcies,
opening new branches in the other states and restructuring of companies and financial
running bank activity in a form of the agent institutions, mergers and takeovers, direct
of the other bank. financial support significant funding from the
The American banking industry has US government, and approved $700 billion
experienced an unprecedented number of to be used only in order to save American
mergers and acquisitions on a belief that financial institutions from the crisis effects.
gains can accrue through expense reduction In 2012, Citigroup received, along with Bank
(Wells Fargo estimated an annual cost of America, the largest state support of $7,5
savings of $1billion from its acquisition of billion, down 32,5% from 2011.[5]
First Interstate), increased market power, Many of these institutions are or were
reduced earnings volatility, during the publicly traded, their exit from the market not
banking consolidation process of the 90s. only affects the credibility of the US capital
More than 1500 mergers took place in the market but also the stock trading volume, the
US banking sector between 1993-1996 price volatility.
years.
But the banking consolidation process
was procceding with different intensity, as a
part
Table 3. The major banking company merged in the last fife years
Year merger Acquirer Acquired Name of Transaction Ultimate
closed bank merged entity value succesor
2008 TD Banknorth Commerce TD Bank $8,5 billion TD Bank
Bancorp
2008 JPMorgan Bear Steams JPMorgan $1,1 billion JPMorgan
Chase Chase Chase&Co
2008 Bank of Merrill Lynch Bank of $50 billion Bank of
America America America
2008 Wells Fargo Wachovia Wells Fargo $15,1 billion Wells Fargo
2008 JPMorgan Washington Jpmorgan $1,9 billion JPMorgan
Chase Mutual Chase Chase&Co
2008 Fifth Third First Charter Fifth Third $1,1 billion Fifth Third
Bank Bank Bank Bank
2008 PNC National City PNC $5,08 billion PNC
Financial Corp. Financial Financial
Services Services Services
2008 U.S.Bancorp Downey U.S.Bancorp U.S.Bancorp
Savings and
Loan
2009 M&T Bank Bradford M&T Bank M&T Bank
Bank
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In Central and Eastern Europe, the foreign quarter of 2013. The agreement signed
subsisiaries do not always bring profits, even between the two banks, provides the
the banking markets remaind stable in 2011. assumption by Raiffeisen Bank Romania(part
CEE banking markets continue to be of Austrian RaiffeisenBank International), a
dominated by foreign investors with: portofolio of over 100.000 clients, with assets
UniCredit, Erste, Reiffeisen, KBC and SG of RON460 million (over EUR90 million )
controlling a combined 35% of total banking and over RON770 million (over EUR175
assets in the region. Although the number of million), in deposits according to data from
banks making losses (34 out of Top 200 December 31, 2012, and all employees of
banks in CEE) increased slightly against the CitiBank retail banking division.[12]
year before the profitability ratios remained
stable with combined return on equity (ROE) 4. Conclusions
close to 7,6%, and return on assets (ROA)
exceeding 0,8%.[10] International banking activity is an
Poland remained the single largest important component of a broader process of
banking market in the region, with assets financial globalization and integration.
worth EUR 293 billion and holding the 30% More radical steps are nedeed in
share.[10] reforming the structure, ownership and
In the present, the foreign acquisitions are incentives for banks to make them more
not an option for the international banking attractive long-term investment.
groups hited by the financial crisis, the trend Globalization of banking and other forms
is to sell subsidiaries as part of restructuring of financial services may influence
plans. regulatory and macroeconomic challenges for
The prime beneficiary of the restructuring the countries involved.
plans in Europe, was Russia’s Sberbank, the Mergers and acquisitions in banking
largest bank in Russia, buying the Central sector become familiar in the majority of all
and Eastern European network of Austria’s the countries in the world. A large number of
Volksbank in 2011.[11] international and domestic banks all over the
For example, branch in Romania of world, are engaged in mergers and
Citigroup, the banking group with the largest acquisitions activities.[13]
network, during the restructuring program, In the present, the foreign acquisitions are
has identified 21 global markets, including not an option for the banks, the trend is
Romania, where there will be restructuring, heading the other way, as selling subsidiaries
cuts or even closing their activity, in the as part of restructuring plans.
perspective of profit targets for 2015. World economy in recent decades has
In Romania, Citigroup following a been characterized by a decrease in the
repositioning plan, involving business exchange of goods between rich economies
efficiency and reduce costs, restructured the with high growth rates in North America,
consumer banking sector, positioning itself Western Europe, Asia and rest of the world,
in the segment of companies. especially Africa.
Raiffeisen Bank Romania will acquire the Acording to estimates, this trend will
retail portofolio of Citigroup Romania. The increase in the future. Thus, participation of
transaction will be completed in the third regions like Africa, Middle East, Latin
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Burghelea Cristina
Hyperion University, Bucharest, Romania
crystachy@yahoo.com
Dumitrescu Miron
Hyperion University, Bucharest, Romania
a3du2005@yahoo.com
Cristea Dan Gabriel
Hyperion University, Bucharest, Romania
dancristea2@yahoo.com
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Figure 1 – The total value of international The total value of intra-Community trade
trade (billion euro) in 2009 dropped by over 20% and increased
in 2010 and 2011 by 21% and 17.9%.
Exports declined in 2009 by almost 9% and
had increases of 25% and 19% in the next 2
years. Imports registered a sharp decline in
2009, nearly 30% and successive increases of
19% and 17% in 2010 and 2011. The latest
data which could access, in January 2012,
total intra-EU trade of Romania went up by
Source: authors based on data taken from 7.4% to 5414.1 million, of which exports has
www.eurostat.ro increased by 4.2%, being of 2559.3 million
and imports by 10.4%, amounting to 2854.8
Followed the same trend was evident in million. Romania's negative trade balance in
the evolution of exports and imports. Thus, a the relationship with partners from European
decrease of 14% in 2009 compared to 2008 Union (EU) increased by 128.5% in January
exports was followed by successive increases 2012 compared to the corresponding period
of nearly 30% and 20% for subsequent years. of the previous year from EUR -129.3
Imports showed a significant decrease in million to -295, 5 million euros [4]. For the
2009 over 30%, but were followed by two period analyzed, 2009-2011, international
increases in 2010 and 2011, with 20% and trade had an extra-similar evolution, as
17%. Referring to the deficit, there was a big shown in the table below (see figure 3).
increase in 2009, almost 60%, following a
decrease and an increase in percentage of Figure 3 – The total value of extra-
under 5%. According to data that could be Community trade
allowed to access, the total value of
international trade of Romania was 7,402.7
million euros, up 5.1% from the same period
last year, while exports registered an increase
to 3472,1 million euros (+1.6%), and imports
to 3930.6 million euros (+8.3%). In these
circumstances, Romania's trade deficit
increased by 117.0% from the level of -211.3
million (31 January 2011), at -458.5 million Source: authors based on data taken from
(31 January 2012) [9]. www.eurostat.ro
Following the same trend as the total
value of foreign trade of Romania, the values The total amount of extra trade fell by
of total intra-EU trade in 2009 decreased 35% in 2009 over the previous year,
compared to 2008 and successive increases in increasing by 30% in 2010 and in 2011 by
2010 and 2011 (see figure 2). 20%. Exports decreased by 25% in the first
analyzed year and increased sequentially by
Figure 2 – The total value of intra- nearly 40% in 2010 and 25% in 2011. Extra-
Community trade (million euro) EU trade deficit decreased continuously with
60%, 17% and 20% in the three years
analyzed. The latest data which could be
accessed, in January 2012, total extra-EU
trade amounted to 1988.6 million euros,
0.8% less than the same period of 2011, of
which exports 912.8 million (-5.1%) and
imports 1075.8 million euros (+3.1%). For
the same two periods of analysis, the trade
Source: authors based on data taken from deficit Romania-non EU countries increased
www.eurostat.ro from -82.0 million to the level of -163.0
million (98.8%).[8] The table presented
below (see figure 4) reflects the evolution of
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China and her Influence on the New World Order in the Context of the
Nuclear Threats of North Coreea
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2. Reasons that sustain China’s global great business opportunities, and that on the
influence long term. Economic freedom creates
political freedom, so many Western analysts
China put in an impass again the world expect an advance of democracy in the next
order, requiring rearranging of global decade, for example the organization of free
influences. One reason is that a quarter of elections in the regions.
Earth's population lives in China, hence arose
all sorts of debates on the future of China as a 3. A new cold war or a new alliance
world power. Its economy has had an against North Coreea?
impressive momentum over the past 30
years, this being undoubtedly a significant The world is overwhelmed by the
force. However, can an increase of 30 years economic strength of China, very difficult to
mean development forever? compete with. By using simple products,
In order to get an idea about the Asian dragon dominates the world market.
importance that 1.3 billion people suddenly Despite numerous predictions, the Chinese
enter into the world capitalist there are economy does not seem to be affected by the
enough some data and some logic: the new crisis. On the contrary, it lends intelligently
colossus economic growth is 10% per year, It the Americans so that they continue to
thus doubling their GDP every seven years consume their products.
[2]. Some announces a new Cold War in
From where did she go? 500 years ago which China to replace Russia, recalling that
China was the most advanced civilization on the New Empire Middle possesses
Earth, then froze. Marx described it as rotten, sophisticated nuclear facilities, that has the
semicivilisation, that vegetates stuck in jaws largest army in the world and its budget for
time. Now at the age of 60 years of defense increases by 10% per year. Then,
communism, China revives a staggering China is still, despite recently discovered
pace, and the world shuddered under the relative freedom, a totalitarian power such a
threat of its rule. Largest urban construction threatening one. In addition, China has
program ever seen, the biggest foreign serious problems with human rights, pointing
investment and sustained the highest growth out the many repressive actions, internal
rate, the largest coal, steel and cement large cleavages (about 800 million poor), a
production in the world, and superlatives can severely altered natural environment and an
continue[3]. early social security system.
Dozens of cities megalopolis (each of At the moment, China is one of the largest
which can accommodate a population greater oil consumer in the world, although annual
than that of England) are growing, with consumption per capita is one and a half
highways, magnetic levitation trains, huge barrel, much lower than ten barrels which
malls and thousands of stylish skyscrapers. consumes a Spanish for example. On the
Three hundred million mobile phones in other hand, the number of cars will increase
use and two hundred million Internet users. tenfold over the next fifteen years, which
Here are produced almost all the toys of the implies an unprecedented increase in oil
world, two thirds of copiers and microwaves, imports.
DVDs and shoes. Besides this mentioned above, plus
Over half of the world's existing cranes increased industrialization taking place in
are working in China, building cities for China, create opportunities for it to become
migrants from rural largest zones in history. in a few years the crude oil-importing
Consumption also increases to un country, which worries the West because,
unprecedented scale, savings too, forming a according to current calculations, there will
middle class increasingly receiving free not be enough oil to cover future needs of
market opportunities to meet individual this colossus. This will generate serious
aspirations. strategic conflicts with the Western powers,
Economic freedom increases, although particularly the United States, aiming control
many people live in China without an elected of the ,,black gold”.
government than the rest of the world. There was no wonder the Chinese strategy
Country remains communist, but provides aimed at signing agreements last year and
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achieving considerable investment in Central business cycles, letting poor business aside, it
Asia, an area that the United States is trying will throw off. Then, the smallest
to dominate, and if Americans fail to gain performance gap will stop the growth
control of energy reserves that China needs momentum. There are structural limits
in the coming years, this will provide world growth and China is close to them.
leadership in the twenty-first century. In the Future progress of China, and its
light of this, the president of China declared development as a major power will depend
on 7 april, 2013, that „no country has the so largely, and the skill with which the ruling
right to throw Asia in to chaos”[4]. elites will solve two related problems that the
On the other hand, the events from the current generation of leaders shift power to a
beginning of the millennium, that is taking younger team and that of meeting the
over anti-terrorist operations in Afghanistan growing tension between economic and
in 2001 already says a lot. Once the U.S. is political system of the country. Even a
proposing Hamid Karzai the country's tripling of GDP would leave China's
President, a former adviser to the "Unocal" population still in last place in terms of per
oil company signed with the presidents of capita income, not to mention the real
Turkmenistan and Pakistan the agreement for poverty as a significant part of the Chinese
the construction of coveted pipeline. In short, population.
the United States won in this area largely Even under the most favorable
crucial battle in the fight with China. circumstances, it is highly unlikely that this
Another aspect deals with China's coal country is becoming truly competitive in
needs, which are also considerable. So far no terms of the key dimensions of world power.
electricity was the main brake on Yet China is really about to become the
development of the country, but this began to dominant regional power in East Asia,
change with the opening of hundreds of already the dominant geopolitical mainland.
power plants and thermal performance of Military and economic power makes its
which coal consumption increased to 1.4 immediate neighbors, except India, seem
billion tons annually. China is the main even smaller. Therefore, China's continued
importer of steel, nickel and aluminum. assertion is very natural in accordance with
Domestic consumption of raw materials its historical, geographical and economic
coming from outside the state is so great that headquarters.
the question is because there are not enough However, divergent interests between the
ships. U.S. and China in the Pacific could lead to
military confrontation, a second Cold War it
4. A few of the China’s little problems could be imminent, with the geostrategic
center of gravity moving from Europe and
China bets now, at the beginning of the the Middle East to Asia. Strong arguments
new decade, that can keep balance forever. It are China’s investments of 30 billion dollars
relies on being able to gradually shift in 2006, in the defense industry and military
resources from coastal regions into the capacity development-oriented to design
country, without encountering resistance strength away: missiles, submarines and
from the coastal area and without facing fighter jets[5].
internal unrest. Is it an evidence of a belligerent spirit the
The problem is that even though China allocation of 10% more each year to defense
seems to be a country with capitalistic private budget? China realizes that if he wants to be
property, banks and all that entails credible politically it must be military strong,
capitalism, is not a real capitalism in the not just economically. A reason that the
sense that capital markets do not determine European Union does not seem to share as
distribution. What matters are the long as most member countries face the
relationships and not necessarily good strategic problem of investing in defense
business plans. industry, research and the creation of a joint
China has grown extraordinarily in the military force.
last 30 years. The idea that such growth rates It is true, China is ranked fourth in the
can last indefinitely violates the basic world in the defense budget and has the
principles of economics. At one time, largest army in the world - 2.5 million
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people. But even in these circumstances, admit that it is more likely to develop power
China spends on defense than 10% of what centers competing U.S. at regional level like
the U.S. Congress allocated annually for China and India in Asia, or the European
Pentagon. Union on the old continent being possible
Chinese wisdom says to postpone battles and reemergence of Russia. These power
which are not sure he can win. China must centers will not be autonomous but connected
focus on a strategy for further growth. Once by networks that interconnect them by
created economic foundation, China could common interests.
move to another stage to have a more U.S. does not seem to be prepared and
offensive stance in international politics. At animated by the desire to hand over to China.
present China can not afford to scare current Among the 500 largest companies in the
economic partners, depending on foreign world, only 15 are Chinese, most of them
investment, particularly the U.S., Europe, American and European. Despite
Japan and the Asian "tigers", Chinese globalization, the U.S. is still the world's
movements are carefully watched and would largest producer, covering 75% of its own
immediately amend any hazardous military consumption needs. Other countries and
policy or policy accompanied by imperialist regions of the world can take the place of
flavor. China, if they manage to produce cheaper
Despite alarmist voices, it is most likely and better quality. Indian Bangalore region
that competition between China and the U.S. has a second Silicon Valley, the location of
will not be military but economically all the major companies that produce and
expressed. A rivalry likely to be cut, as in the offers leading technology.
economic war between the U.S. and the Arnold Toynbee, in his study compared to
European Union on the export of cheese, the 26 civilizations that have marked human
bananas, steel or subsidies for Boeing or history, captures the causes that led to the
Airbus, by means of negotiation and genesis, growth and decline of great empires
compromise in the WTO, to which China and civilizations dominant throughout
belongs and since 2001 as well as history. We are aware that a dominant source
Chinese officials, ordinary Chinese seem to of lifting power in the world, but also their
be rather oriented towards a better life and decline was acquired or that the loss of
success in business, although recent internal cohesion and a great creativity and
antijaponese events in China, showed that vitality. U.S. still seem to lack them, while
there is a full tank of nationalism that can China can not claim that is very high in all
escape from communist control. these chapters. However, the U.S. budget
deficit and the presence of 500,000 foreign
5. Conclusions U.S. military warns dissipation of resources,
expansion and unbridled ambitions, are
Various estimations from internal collapse causes that led to the collapse of other great
and bank implosion to economic and military powers[5].
strengthen will inevitably lead to a conflict Undoubtedly, China is a great power. The
with the current global superpower, the U.S., question is how much. Currently, no country
feeding the strategies and visions for the can develop outside reality of globalization
future of China and the configuration of and international networks. Conflict as a
international relations in the century which conventional war is not inevitable, especially
just begun[5]. when interdependence is so great. The total
Some analysts already foresee a decline of level of U.S. investment in China is now 48
U.S. and Chinese triumph. Some of them billion dollars. China not only benefit from
were quick to announce that after Europe American investments, investing itself in
world domination since the seventeenth 2009, one billion U.S. dollars. U.S. exports to
century and of America since the twentieth China increased by 1600 times in the last 15
century, we are witnessing the next great years. China has in its reserve banks 600
global paradigm shift by moving the center billion dollars. Most American and global
of power in Asia with representatives of corporation, Wal-Mart, imported annually
China, India and Japan. goods worth $ 18 billion produced in China.
Perhaps the most honest would be to EU exports to China increased by 600% in 15
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years.
Strained political relations between Japan
and China have prevented 28,000 Japanese
companies to invest in Dalian region in
south-western China, opening its branch of
production. Similarly, Taiwanese investment
in mainland China and mutual profits do not
seem to take into account political frictions.
Despite all this, in this moment the
powers of the world are forced to allie for
stopping one cause, stopping the mad North
Coreean leader. The threats to the world
peace can not be left without response, the
nuclear crisis cannot be left to degenarate and
all we need right now is to have the necesary
peace to fight with the ongoing economic
crisis. This is dispute of high vain and the
leaders of the world should have the maturity
to stop it.
6. References
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Grigorut Cornel
,,Ovidius” University, Constanta, Romania
cornel.grigorut@gmail.com
Nistor Filip
,,Mircea cel Batran” Navala Academy, Constanta, Romania
fillip.nistor@anmb.ro
Popa Catalin
,,Mircea cel Batran” Navala Academy, Constanta, Romania
catalin.popa@anmb.ro
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disposed to use under the existing social and In recent years, one of the causes of
economic conditions at a time. [2] decrease labor supply is the risk in shipping
Supply of seafarers is tightly associated and this mainly due to accidents at sea
with the scale of the world fleets which is followed by criminalizing seafarers guilty
linked with world economy’s climates. obligation to pay damages or even
At the microeconomic level, the deprivation of liberty. Approximately 80-
emergence of labor supply is shaped by real 85% of accidents at sea are due to human
wage (in the classical theory) or the nominal factors.
wage (in Keynesian theory). Errors due to:
Labor supply is strongly influenced by the lack of adaptation to conditions at sea
institutional framework and in particular the (40% of accidents occur in the first 10-12
extent of the services of social benefits hours of departure). In the first 3 to 4 days or
(pension, health, unemployment- 7 to 8 days increases number of accidents;
compensation system). prejudice of lack of danger in known
Specificity labor supply in shipping areas (10% of accidents);
resulting from: lack of attention (due to the first two
a) Seafarers has a high degree of cases), stress, burnout;
specialization abusive use of radar navigation in
In order to perform a specific function areas of input, output, channels, straits;
shipboard personnel must have certain objective risk factors - weather
specialization courses of training conducted conditions, technical failures, erroneous
to ensure knowledge and skills. maneuver of other ships.
Specialization courses are organized and run Following the completion of a study by
by training centers, except those organized the International Transport
by the university for preparing maritime Workers’Federation in the Black Sea,
officer or naval engineering. between 01.012012-31.05.2012, were
The high degree of specialization of labor identified the major problems faced crews,
which operates in the naval sector represent on the first place being situated wages paid
an obstacle to labor market supply which to by employers.
fulfill this requirement must sacrifice Figure 1 Risks assumed by the crew
financial resources and time.
b) Working conditions onboard ships
Maritime work differs from other diverse
activities by unity in diversity - meaning that
a crew of a vessel may be composed of
sailors whose nationality often differ. In
shipping, sometimes prevails the interest
owner who seeks to hire crew vessels, in
compliance with the minimum international
law in this field, seafarers willing to accept
toughest working conditions.
Because of the specific working Source: ITF study, Black Sea of Shame,
conditions existing in shipping, labor supply 2012, p.5
is less numerous than in other areas. The Another risk factor is breach of contract
factors that determine this specific working signed by the crew with crewing agency, a
conditions are: long period at sea away from factor which may be removed by affiliation
family, conditions onboard a ship, workload, of seafarers to a union that can protect their
with shorter turns that repeated etc. rights. The main risks arising in case of
Working conditions in the naval sector abandonment ship or ship’s wreck when can
require guaranteeing minimum employment result even loss of life. All these elements
and decent life on board. Factors that causes can be translated into risks that have an
specificity of work of seafarers determine impact on labor supply in the maritime
that working staff in shipping need to have sector.
inclination to pursue this profession. d) Age structure is a barrier to entry for
c) Risks taben by seafarers seafarers
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3. Conclusion
4. References
32
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Volume XIII, Issue 1/2013
Grigorut Corneliu
,,Ovidius” University, Constanta, Romania
cornel.grigorut@gmail.com
Popa Catalin
,,Mircea cel Batran” Navala Academy
catalin.popa@anmb.ro
Nistor Filip
,,Mircea cel Batran” Navala Academy
fillip.nistor@anmb.ro
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network, because as we have seen in last sluggish, as a crisis stimulus transmitted from
decade, the causal chain have a complex financial side to real economy [6].
determination, as a result of a interaction of In the next stage, after the liquidity deficit
many parameters imperative to be considered is installed on markets as investments
together on a global scale. changing behavior, the production crisis is
coming to face a supply contraction, in this
2. The contemporary crisis and its phase becoming clear and vivid the organic
determinative factors connection between financial system and real
economy. There will be affected the supply-
Analyzing the recent crisis example side countries delaying in their reaction as a
started on 2007, it can be stated that the first reactive behavior to the market. The demand
stage countries that have faced the crisis diminishing attitude installed in developed
direct effects in financial and economic terms countries, which are the best consumers for
were the demand-side countries, which have developing countries as pricing competitive
based their position on global network mostly advantage beneficiary, will trigger significant
on domestic demand and on the capital and gaps in exports for this type of economies,
technological export. In their case the gap and further the sluggish trends in GDP
resulted from comparing the real values (as increases. But this is not fair because the
on mortgage values example) with the market cheap demand from developed countries is
bubbled values have first triggered a major supported throughout the good consuming
financial crisis, and further a collapse of times, as a ,,competitive advantage”, by the
investment system as a corrective response to lower living standards for labor market in
over appraisal tendencies on the estates developing countries, so this could be
market. [6] considered as an ,,elitist” behavior. The
The demand increasing based on credit capital export is not looking for higher profits
behavior enhancement, have conducted to an but finally will subsidy indirectly the
inappropriate credit maturities (comparing cheapest consumption in developed
the borrowers and lenders aspirations) tied to countries. The output contraction moment
banking risk dilution and derivates excessive will launch a supply crisis, depicted by more
usage. From that point on the bank severe effects as economic decreasing and
competition became hard and the response social disturbance (as unemployment or
was the inappropriate increase of mortgages living standards dropping), the production
providing as bubble the decreasing potential restrictions determining the trade parameters
related to real values of aggregate income on assessment and a new bargain on
domestic market. When the market values international level, but on unequal positions
bubble blown up the investment system as always. [8]
attached to the financial intermediation In this regard, considering the entire
system, dominated by the demand-side framework, it seems that in a period of a
economies capital export, have triggered the profound crisis as systemic one either in
negative effects toward supply-side financial or economic side of global
economics, hungry for capital, affecting in economy, any try to launch back the
chain also the companies and house holdings. consumption based on credit enhancement
The next stage of crisis mechanism was the should be a wrong and unsustainable
demand breakage, the values diminishing on decision. This is inapplicable first because
markets together with credit guarantee the developed countries will draw back their
system, this attitude affecting on a long time investment to protect as instinctively the
the revision of risk factors and the credit internal demand, and second because
default swap rates, coming not to incentive entering into a diminishing demand spiral the
the real economy but to block it. Thinking in developing countries will face hard landing
this manner is proper to consider that the first positions in stocks due to their sluggish
stage of a financial syncope is triggered by export. At least on short time horizon this
the investment sluggish tendency, as it has intention to support the demand through
been induced by the demand-side economics. credit will stimulate but unsustainable the
Thus, the first crises stage the demand crisis, economy recovery [4].
which is based on capital movement
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This theory is sustained by the lack of take advantages from technological advance
market or production system reaction in [11].
2009, when the monetary policies in almost Following this ration the technological
of the countries had been relaxed till where advance should produce efficiency in cost
the interest rates went so down close to terms not like today when the new
negative earnings, but without any significant technologies were irrelevant to market prices.
result on medium on long term as the time When the spiral of credit is getting faster the
passing has proved. The simultaneously real consumption curve will be affected by an
increasing of risk premium rates (as Credit artificial appetite for demand, and further
Default Swap rates) suggest more the lack of will trigger an artificial inflation not
trust on markets and its connection with the correlated with the economic efficiency
demand and consumption appetite than a lack rations. As example we should remember the
of liquidity of financial system. From this Opel corporation case where the most
perspective a solution but radical for crisis modern cars plant built at the begging of
overcome is a general deflation as an option 2008 have a strange effect on final cars prices
for a new assessment wave on market values getting higher than before up to 10%, in
in order to rebuild the fundamentals for real contradiction with Taylor efficiency
economy and its financing sources. But the principles. Implementing new technologies
deflation of course will affect the production we should get lower prices, good for demand
system which will be forced not only to burst and spending incentive attitude not on
restructure their outcome system but the go credit but based on real incomes of house
deeper in structure of costs despite on the holdings.
investment politics on medium and long In conclusion the globalization
terms which will generate an un-investment phenomenon is defined by the interactions
position from financial markets. This should recorded between nations and economic and
trigger the real consumption values in order financial entities, being moved by two
to reduce the panic in investors’ opinion. driving forces as: (1) the world trade and (2)
Additional to these desiderata should be the financial market integration tendency.
imperative to bargain new dues for long term The economies are connected into a global
credits together with a real restructuring of network, on regions levels, first through
production sector. goods fluxes and second through capital
For a country like USA the optimum flows. However, when the positive results
model for economic incentive is not the from economic side are used in speculative
credit rebound but the prices diminishing manner the fragile equilibrium between those
attitude in order to equilibrate the power three main types of economies as it has been
purchasing of real demand with the real value described above, will be affected on a long
of aggregate incomes on markets. term in the disruption of real values facing
Afterwards, as the incomes are contracting in induced market values. First the capital
crisis phases and the normal attitude oriented countries are directing their
regarding the consumption recovery should excessive capital flows toward developing
not the credit incentive but the prices general countries but mainly on speculative ways
deflation based on real production neglecting the economic reasons. Throughout
restructuring policies. The capital injection the period when the artificial demand is
into an overheated production system supported and stimulated by the credit
debated from real demand on market, expansion the developing countries evolving
especially on long term investment goods profitable on a positive market perception,
will not get to a sustainable effect but will getting earnings from this situation. But
just enlarge the lack of trust in real market when the aggregate income will not cover
values, defying the economic cycles (see the anymore the capital promised interests and
Kitchin cycles). the mortgage markets becomes pessimistic,
According to Frederick W. Taylor theory the capital flows are retracted being suddenly
the real solution for economic efficiency drawn back by investors in spite of economic
should be find not in the financial direction efficiency. And here comes the problem,
but in a production organization policy, as when the developing countries have not the
the main economic fundamental in order to
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same resilience to the capital drawing back [3] Friedman T.L., The Olive and the Lexus. How
generalized attitude. to Understand Globalization, PRO
Foundation Publishing House, Bucharest,
3. Conclusions 2001
[4] Mishkin F., Systemic Risk, Moral Hazard and
When the capacity of economies to react the International Lender of Last Resort,
is so heterogeneous the crisis forms and Columbia University, NBER, 1998
further evolutions are different. The strong [5] Popa, C., The International Monetary and
capital countries will suffer in first crisis Financial System, „Mircea cel Bătrân” Naval
Academy Publishing House, Constanţa, 2007
stage on a short time in lack of capital
returning from investment places. Their [6] Popa, C., The Globalization and International
Financial Institutions, „Mircea cel Bătrân”
policy will support the capital drawing back, Naval Academy Publishing House,
desiring a domestic proper liquidity. The next Constanţa, 2008
effect will be the upper price for capital [7] Popa, C., Ionescu, L.C., The International
export toward developing countries trying Monetary and Financial Institutions Policies
thus to recover the losses from financial and Strategies in Globalization Framework,
system together with different speculative „Mircea cel Bătrân” Naval Academy
attacks on young markets or currencies. The Publishing House, Constanţa, 2010
supply side economics will be further [8] Rischard J.F., The 12th clock. 20 global
affected by this attitude of demand side problems and 20 years to solve it, Romanian
economics, getting an expensive access to Banking Institute Millenium Tres Publishing
financial resources in order to sustain the Hause, Bucharest, 2004
production stocks and economy overheating, [9] Schumpeter J.A., The Theory of Economic
just to avoid hard landings. So we can see Development: an Inquiry into Profits,
even a spiral here, triggered by capital flows, Capital, Credit, Interest, and the Business
Cycle, OUP, New York, 1961
coming from supply side economics as more
expensive resources and lower demand and [10] Soros G., MoveOn's 50 Ways to Love
Your Country: How to Find Your Political
going toward supply side economics, facing
Voice and Become a Catalyst for Change,
the stock increasing and lack of liquidity on Inner Ocean Publishing, Washington, 2004
economic input. That spiral should be [11] Taylor F., Principles of Scientific
disrupted not based on credit recovery or on Management, Harper & Brothers, 1911
capital injections in bail out economies, but
should take under consideration the real
equilibrium between market values and real
values determined by real incomes and
spoiled by long term financed consumption.
[10]. The solutions for crisis disruption in a
global context could find appropriate first the
production restructuring policies and second
the technological insertions in order to
recover the economic efficiency. The world
should start to learn how to work together in
a viable economic and financial network,
understanding the deep connections
established already between economies,
regions and world trade components.
4. References
36
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Halep Maria
Doctoral School ASE Bucarest – International Business
mariahalep@yahoo.com
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persons ratio decreased from 1,75 in 1992 to C. Quantitative easing policies lead by
1,4 in 2010. And still, France has one of the central banks help encouraging public bonds
highest birth rates in the developed world. demand. Central banks buy public bonds or
The following chart testifies for the ageing
accept them as guaranties when financing
population trend.
financial institutions. Therefore, in the
Chart no 1: Tax payers/retired persons context of inexistent growth in the aftermath
ratio evolution of a financial bubble crash, possessing public
debt in their assets enables banks to get
access to central banks financing resources.
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Source:, Reinhardt, C., Sbrancia, B., “The 6. Debt liquidation in current developed
liquidation of government debt, NBER WP world.
16893 march 2011,
http://www.nber.org/papers/w16893 This section analyzes the after 2008 world
outlook and develops an investigation to
Unlike fiscal adjustment, highly consider whether today’s situation presents
unpopular and costly for politicians, financial the characteristics of a financial repression
repression is more opaque to the general era.
public and, therefore, it is far easier to Firstly, banks and national individuals are
implement and to be accepted, it is therefore more and more encouraged to hold national
much alike an indirect tax. public debt, similar to a creation of a captive
Between, 1945 and 1980, for about 30 public. For instance, some peripheral
years, real interest rates were on average European countries’ banks, but not only,
negative, in both developed and developing have in recent years liquidated foreign assets
countries (see chart no 4). and replaced them with public government
If financial repression operated through bonds, as it is proved to be the case for Spain,
public debt detention, it was mainly Portugal, Ireland and, to a less extent, UK.
supported by even lower returns on savings,
capital account moves restrictions and, Chart no 5 : Public debt portfolio hold by
particularly, generalized negative returns on local banks, 2008-2010, in GDP %
government bonds almost all over the world.
The liquidation effect is calculated by
applying the negative real interest rates to the
public debt portfolio basis, for the years
characterized by negative real interest rates
[6]. Results are presented in the following
table. For instance, for the UK and the U.S,
the annual liquidation rate is around 3,4%. In
a decade, it accounts for 34% of the public
debt, not taking into account the cumulative
effects [6].
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This is particularly true in Japan, where most Source :World Economic Outlook 2011
public debt is hold by Japanese households or database
institutions. But these massive interventions of
Thirdly, interest rates are maintained emerging economies’ central banks are costly
particularly low, by massive bonds purchase and only have a short term effect, so, usually,
and monetary easing policies by major emerging economies combine foreign
central banks around the world, at that point treasury bonds purchase with some capital
that it is becoming doubtful whether the account control measures. While the IMF
information contained in the bond prices historically prohibited capital account
reflects real risk [4]. controls, it recently softened its view,
Fourthly, macro-prudential policies allowing capital account management
encourage banks and insurers to hold very policies under certain circumstances [1,2].
liquid, non risky assets, which are, What is certain is that it’s the first time, since
surprisingly, public domestic bonds. Basel III the Bretton Woods arrangement broke up,
is particularly biased toward government that international community is so permissive
bond detention and reinforces the vicious towards emerging markets’ capital account
dependence between governments and measures. This time, the context makes these
financial institutions. measures acceptable for developed countries
Finally, it is worth noticing a considerable as well, because they keep investors from
change in the emerging markets capital developed countries captive in the developed
account management policies, which is not markets, where real interest rates are very
neutral for the current situation in developed low, and even negative.
countries. Emerging markets are export
oriented and low stable exchange rates allow 7. Conclusions
them to maintain their price competitiveness.
Classically, when high return expectations Since 2008, potential growth has been
from foreign investors appear, foreign short continuously diminishing and economies
term portfolio investments climb up, putting don’t turn at their full capacities.
a pressure on exchange rates, which Public and private debts in developed
eventually appreciate, thus damaging the economies are situated at historical heights
exports activities. Central banks intervene by and pressure is rising on central banks and
buying massive quantities of foreign governments to contain public debt interest
government bonds, and therefore indirectly expenses, but also to start reducing the
contributing to maintain high demand on Debt/GDP ratio. Fiscal adjustments in
developed countries government bonds.[3] Europe have proved very painful for
population, costly from a political point of
Chart no 6. Reserves of developing view and inefficient, considering the poor
developed and transition economies and achievements of these countries and their
China suffering economies.
In this context, financial repression
appears to be a viable and acceptable solution
in order to start reducing the debt burden
weighing on developed economies. Recent
measures adopted in different parts of the
world, and namely in Europe, testify for
financial repression coming-back. In the
recent Cyprus crisis [7], financial repression
goes even further and takes the form of a
deposits freeze, followed by deposits taxation.
Indeed, when the European Union granted
Cyprus a rescue plan of €10 billion on March
17h it asked Cyprus to partly finance the deal.
Cyprus achieved this by seizing deposits and
taxing them at 6,75% up to 100 000€ and at
9,90% for the exceeding surplus. We could
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References
42
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Halep Maria
Doctoral School ASE Bucarest – International Business and Economics
mariahalep@yahoo.com
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their domestic stabilisation objectives. demand conditions, which are in turn shaped
Interest rates have been raised only hesitantly by the global monetary policy stance. The
in response to overheating domestic growing role of financial investors in
macroeconomic and financial conditions out commodity markets may have further raised
of concerns that this would widen interest the sensitivity of prices to monetary
rate differentials and further boost capital conditions [2].
inflows. As a result, monetary policy in The growing relevance of monetary
emerging market economies may be policy spill-overs suggests that central banks
systematically too permissive, though a new need to take better account of the global
wave of capital account control measures has implications of their actions. In a highly
shown up in the past few years, and, for the globalised world, a more global monetary
first time, both the IMF and developed policy perspective is also called for to ensure
countries are more permissive than in the lasting price and financial stability called for
past, because measures in developing to ensure lasting price and financial stability
countries keep investors from developed
countries captive in the developed markets, iii) Monetary policy and long term risks
where real interest rates are very low, and for central banks
even negative [4,5].
The prevailing loose global monetary Currently, long term anticipations do not
conditions have been fuelling credit and asset point out raising inflation risks, in both
price booms in some emerging market advanced and emerging economies, as
economies, creating risks of rising financial suggested by market indicators and consumer
imbalances similar to those seen in advanced surveys.
economies in the years immediately
preceding the crisis. Their unwinding would Graphic no° 6: Inflation expectations in
have significant negative repercussions, also developed and emerging markets
globally as a result of the increased weight of
emerging market economies in the world
economy and in investment portfolios.
Loose global monetary policy has
probably also contributed to the strength of
commodity prices since 2009, as illustrated
in graphic no.5.
1 Five-year inflation expectations five years ahead; monthly
averages
Graphic no° 5: Commodity prices, 2 Six- to 10-year-ahead mean consensus forecasts of consumer
1997 - 2012 price inflation.
Source: Bloomberg
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and commercial banks' reserves with root causes of financial fragility and
the central bank, the money supply is formed economic weakness.
by the aggregation of banks and central The combination of fragile growth and
banks balance sheets. It is compound of exceptionally low interest rates in advanced
demand deposits and currency in circulation. economies, and efforts to manage the
Bank’s reserves with the central bank are not spillovers in emerging market economies, has
included in the money supply, as they are the helped to extend monetary easing globally.
asset of the bank and the liability of the The resulting risks of a build-up of
central bank, thus compensating themselves. financial imbalances and increasing
Thus, money supply does not fully depend inflationary pressures in emerging market
on central bank’s actions, but also on economies might have significant negative
commercial banks’ behaviour and the repercussions on the global economy.
demand prevailing in the economy. If banks Therefore, there is an urgent need for central
decide to grant few credits to the economy, banks to take better account of the global
or if the demand is poor, money supply will spillovers from their domestic monetary
not increase, irrespective of central bank’s policies to ensure lasting financial and price
monetary policy, because the commercial stability.
banks liquidity surplus will transform in Moreover, central banks need to take into
central banks reserves.it is exactly was is account longer-term risks influencing their
currently happening in the Euro Zone, where credibility and operational independence.
investment is suffering and global demand This would complicate the eventual exit from
morose. Capacities are not used at their full monetary accommodation and may even
potential, firms are deleveraging and threaten central banks’ credibility and
households postpone their consumption operational autonomy. This concern is
decisions and increase their savings[3]. reinforced by political economy risks arising
That being said, banks do hold reserves in from the combination of balance sheet
their assets, and, theoretically, these assets policies that have blurred the line between
could be poured into the economy, monetary and fiscal policies, on the one hand,
generating a money supply increase and, and the risk of unsustainable fiscal positions,
subsequently inflation or financial bubbles. on the other.
Therefore, despite current low inflation Finally, central banks need to take into
rate risks, central banks must conduct account inflation risks carried by their
sterilization policies, i.e. absorbing surplus unconventional policies, despite current low
liquidities by selling bonds and securities expectations of inflation.
held in their balance sheets.
References
5. Conclusions
[1] BIS, (2012),”82nd Annual Report, 1 April
The global monetary policy position is 2011– 31 March 2012”, Bank for
unusually accommodative. Interest rates are International Settlements, June 2012
[2] BIS, (2011),”81nd Annual Report, 1 April
well below traditional benchmark measures.
2010– 31 March 2011”, Bank for
At the same time, central bank balance sheets International Settlements, June 2011
have reached an unprecedented size. [3] Dumas, J.P. (2012), “Zone Euro : pourquoi
As fiscal policies become useless as n’y a-t-il pas d’inflation malgré une forte
economies embark in austerity policies in croissance de la base monétaire? “, Le Cercle
order to return to equilibrium, sustained Les Echos, 8 octobre 2012
monetary easing is is the last weapon at [4] Gallagher K., “The IMF, Capital Controls and
governments’ disposal. However, there are Developing Countries”, EPWEconomic &
things that monetary policy can do and Political Weekly, May 7, 2011, vol. XLVI,
cannot do. While it can ensure market no 19
[5] IMF (2012), “Recent Experiences in
liquidity, prevent disorderly deleveraging and
Managing Capital Inflows—Cross-Cutting
bankruptcies deleveraging, monetary policy Themes and Possible Policy Framework”,
does not tackle solvency, nor structural http://www.imf.org/external/np/pp/eng/2011/
problems. It cannot be uses as a substitute for 021411a.pdf
those policy measures that can address the
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interested of the preferential or flows have outmatched the trade flows, and
discriminating trade, issue proven by the the extended size of the market made easier
statistical data that revealed an increase upon such progress [5]. “The engine” was
the trade flows concentration, on the regional represented by the entrance of United States
or trans-regional level, tendency that have in “the field”, this time in quality of essential
been more emphasized starting with the “player”. The decision of USA on
eighties. preferential exploring and approaching the
trade relationships was significant,
2. The waves of regionalization considering that in the previous decades, this
was a fervent supporter of the
This phenomenon has known various multilateralism. Diverting from the principle
phases over the time, known in the specialty of non-discrimination, promoted by the Most
literature under the name of values of the Favored Nation Provision, USA negotiated
regionalization. [3] free-exchange agreements with Israel and
The first “wave” of the “early” Canada (CUSTA - Canada - US Free Trade
regionalism during the fifties – seventies, Area), after which this launched the proposal
was launched by the creation of European for a free exchange hemispheric region
Economic Community, by means of the (Enterprise for the Americas Initiative);
Treaty of Rome (1957), and followed by a subsequently, an agreement was signed
series of cooperation initiatives at the together with Canada and Mexico in order to
regional level between countries in progress establish NAFTA. It is appreciated that “this
of development. At that time, the United conversion” of USA to regionalism does not
States of America militated in favor of the represent just the catalyzer, but also the
multilateralism; notwithstanding, they have factor that involves steadiness and
supported the integrationist process in West lastingness for the second wave of the
Europe, thus seeing a counter-weight to the regionalism [6]. The most underlying
USSR ascension and what it signified on one situation of “transition” in the American
hand; on the other hand, this was seen as politics actually relies in the USA concern
instrument in multilateralism promotion, towards the erosion of its hegemony within
considering that a united Europe might the economic and politics world sphere. [7]
facilitate the progress of negotiations within As regards Europe, the integrationist
GATT. Under the momentum of European process has continued in both the successive
Common Market, the regionalism has been enlargement, as well in the deepness; the
disseminated in Africa, Latin America and European “preferentialism” was also
other regions; the countries in progress of extended. Regarding Asia, Latin America
development, which implemented the policy and Africa, the old preferential agreements
of imports substitution, have aimed towards have been restarted, as well as the new
the reduction of costs generated by this type established ones [8]. By means of “Europe
of industrialization, by exploiting the scale 1992” programme, and the integrationist
economies achieved after the preferential scheme, of which protagonist was USA, the
opening of market. Nevertheless, by the end idea according to which the regionalism was
of the 60s, their attempts have failed, “a must have” was agreed. In this way, a new
especially because the industries allotment opinion current appeared in Asia, current that
was intended to be carried out by supported the need of creating a new trade
bureaucratic negotiations. [4] block, of whose epicenter should be Japan, as
At the end of the 80s, the regionalism a counterweight to those blocks created
came out on the world arena, forcefully around the United States; on the other hand,
imposing in the nineties; this type of “new the old preferential schemes were
regionalism” represented the solution of the emphasized at the level of all continents, and
structural changes that have been carried out the new preferential schemes occurred [9].
on the world economy, as consequence of the Notwithstanding, the success of negotiations
globalization process. In parallel to the carried out within Uruguay Round and
gradual liberalization of the trade, the part of creating the WTO, as successor of GATT,
direct foreign investments in the global have represented a reaffirmation of the
economy was amplified: the investment employment of most states, towards the
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Over the time, many theoretical models were the regional level, most of countries, as
built, by which solving a issue was carried especially of the existing groups, have
out, issue related to the effect of directed towards the trans-regional
discriminating trade policy effect over the cooperation, usually on world scale; in the
progress of multilateral trade system. The context, it is not difficult to imagine the
issues has remained yet opened, especially “magnets” that might polarize, though it is
that there are quite few “consecrated” difficult to imagine how the polarization
integrationist schemes, most of them being of regions might be delimited; this is done how
relatively recent calendar data. Alan Winters much more so each country is member within
started a study dedicated to this topic at least one preferential agreement.
(published in 1996, under the aegis of World Moreover, during the history, the world
Bank), by the same question: “Will the forces power balance has known changes; currently,
that the preferential trades agreements launch one might speak about that “Triad” and the
encourage or not the trend towards a more economic progress of China and of all other
free global trade? We haven’t achieved yet countries within the Asian region might
an answer at this question”. [17] reconfigure this status quo. One should not
ignore that all countries related, from various
4. Conclusions reasons, to the preferential liberalization have
also assumed agreements within the WTO,
The regionalism has become a challenge thus registering on the multilateralism line.
for the future; it is outlined as result of the The value of the indicators that quantify the
most WTO member states for the preferential level of market opening does not suggest a
liberalization of the trade exchanges; during closing trend, but contrary, a trend more and
the post-war period of time, the successive more emphasized over the trade blocks
waves of regionalization have transformed existing within the world trade.
“the pattern” of the world trade.
The antagonist or complementarily References
relationship between regionalism and
multilateralism has determined many debates [1] Dunn, Jr, R.M.., Mutti J. H.”International
occurrence; the integrationist schemes Economics”, 6th edition, Routledge, Marea
represent a reality of the world landscape and Britanie, 2004
their part within the world economy design, [2] Irwin, D., „Multilateral and Bilateral Trade
which cannot be ignored. The reality has Policies in the World Trading System: An
Historical Perspective”, in „New Dimensions
proven that demarches of liberalization upon
in Regional Integration”, edited by Jaime de
preferential basis have been increased, in a Melo and Arvind Panagariya, New York:
rhythm more accentuated rather than the Cambridge University Press, 1993, p. 103 şi
multilateral level; a great part of the world următoarele
trade flows intensification consists in the [3] Memedovic, O. ş.a., „Multilateralism and
direct consequence of the agreements regionalism in the post Uruguay era”, 1st
negotiated at the regional and trans-regional edition, Springer, 1999, p.7
level. The dual nature of the preferential [4] Bhagwati J., “Regionalism and
trade schemes or the mixture between the multilateralism: an overview”, in J.de Melo;
free exchange and protectionism will offer A. Panagaryia, „New dimensions in regional
integration”, Cambridge University press,
them a specific feature, of potential trade
1995 , p.28
“fortresses”. At first sight, one might be [5] Sampson G., Woolcock S. (edit.) ,
tempted to believe that the people will be „Regionalism, Multilateralism and Economic
divided in the future into a low number of Integration. The Recent Experience”, United
trade blocks, polarized around the high Nations University Press, Tokyo-New York-
powers. Actually, regarded as stricto senso, Paris, 2003, p. 283
only the European Union might be classified [6] de Melo J., Panagaryia A., „New dimensions
as “trade block”; the other integrationist in regional integration”, Cambridge
groups will enjoy of a higher flexibility as University press, 1995, p. 5
regards the external policy options. [7] Frankell J.A., „Regional Trading Blocs in the
World Economic System”, Institute for
Moreover, it seems that after “the
International Economics, 1997,
consumption” of all cooperation resources at
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http://bookstore.petersoninstitute.org/book-
store/72.html
[8] Memedovic O. ş.a., „Multilateralism and
regionalism in the post Uruguay era”, 1st
edition, Springer, 1999
[9] Bhagwati J., cited paper., p.31
[10] Pomfret R., “Regional Trade Agreements”,
Working Paper 2005-15, in M. Fratianni, A.
Rugman , “Regional Economic Integration”,
Elsevier, 2006
[11] Memedovic O. ş.a., „Multilateralism and
regionalism in the post Uruguay era”, 1st
edition, Springer, 1999, p. 8 and following
[12] R. Pomfret – Is Regionalism an Increasing
Feature of the World Economy?, IIIS
Disscution Paper nr. 164, may 2006
[13] Baldwin R., „Multilateralising regionalism.
Spaghetti bowls as building blocs on the path
to global free trade”, paper presented at the
World Economy Annual Lecture,
Nottingham, UK, June 2006, p. 1
[14] Schiff M., Winters A., „Regional Integration
and Development”, Oxford University Press,
2003, p. 187
[15] Winters, A., „Regionalism versus
Multilateralism”, The World Bank
International Economics Department,
International Trade Division, November 1996
[16] http://www.wto.org/english/tratop_e/region_
e/region_e.html
[17] *** “The Text of the General Agreement on
Tariffs and Trade”, Geneva, 1986,
www.wto.org
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Tourism has long been recognized as an Because they pay a great attention to
economic development strategy which social and economic development, people
generates incomes and is regarded as one of living in present-day society lead a stressful
the fastest growing industries in the world. and unbalanced life [1]. This phenomenon is
For this reason, all countries are looking for reflected into tourism and hospitality
ways of establishing business relations and of business by the increase of tourists’ interest
attracting tourists. for heath and wellbeing improvement during
the holidays. The time dedicated to health is
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Lupu Iulia
Criste Adina
“Victor Slăvescu” Centre for Financial and Monetary Research, Romanian Academy
iulia_lupu@icfm.ro
a.criste@icfm.ro
1. Introduction Efficient
allocation of
Financial globalization
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has really begun since the mid of 1980s, due countries (see Figure no. 2).
to the relaxation of restrictions on capital
movements decided by many countries, Figure no. 2 – Chinn and Ito financial
supposing that international financial flows openness index - evolution by groups of
would stimulate economic growth and countries during the period 1970-2010
smooth consumption. The expected benefits
were substantial, especially for the
developing countries, which in general, are
more capital-poor than others and have their
income growth more volatile.
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of increasing the borrowed capital were and affected several countries (crises in East
obvious advantages for the developing Asia, Mexico, Russia and so on).
countries, due to the fast pace of The economic literature in the field of
liberalization in the emerging markets from financial globalization is quite extensive and
Latin America, East Asia and Eastern began to be visible in the early 1990s,
Europe. drawing attention to the risk associated with
The introduction of the euro in 1999 has the international financial integration.
contributed to the internationalization of Historical overviews of the main examples of
financial markets in developed countries, how crises affected the developed countries
being the most important event before the are presented in [3] and [4].
current crisis. The crises that affected the emerging
When a country's financial system is markets in the 1990s have led to less
liberalized, it becomes subject to a financial optimistic remarks on the financial
discipline imposed by the foreign and local integration of these countries - [5], [6], [7].
investors. Given the ability of the foreign An analysis of the current crisis, with a
capital to move more quickly between foray into the pre-crisis period (1999-2007)
different countries, their role in establishing and an analysis of the financial globalization
the financial discipline is more efficient. The after the crisis are well made in [8]. In the
national capital tends to have more author's view, the financial globalization has
restrictions on international investments. contributed to an increasing asymmetry on
The main reason why foreign investors credit growth and external position of the
are interested to hold assets in emerging country, which has played an important role
countries is their high performance. in propagating the crisis. Once appeared, the
However, the amount of foreign capital financial globalization has played a buffer
flowing from the rich countries to the role for some countries, while for others it
emerging countries is still below the has amplified the crisis. Another conclusion
expectations predicted by theory, especially of the study is that the global crisis has
due to the institutional and political risks shown that the international financial
specific to emerging markets. integration increases the costs of the
When we have a massive impact of the economic policies’ and regulations’ failure,
foreign capital into the country, by increasing both in prevention and crisis management.
the dependence on this capital, the economy A new opinion appeared in UNCTAD
becomes more fragile and exposed to the report in 2012 Development-led
crisis by creating funding difficulties, Globalization: Towards Sustainable and
especially if the economic situation is not a Inclusive Development Paths: the
solid one. globalization driven by the financial sector
Globalization can lead to crises and for has led to uneven results, unstable and unfair,
countries with good economic situation, therefore is proposed a new path -
largely because of the international financial globalization driven by development [9].
system imperfections. A new agenda based on three levels has
If the crises are often associated with the emerged.
financial liberalization, studies show that The first tier requires enabling the
they are complex and are not only a developing countries to mobilize their
consequence of globalization, but also an domestic resources, strengthening their
aftermath of various local factors. Statistics productive capacities and thus enjoying
show that for a long time, the financial gains in a fair manner.
markets are characterized by crisis, both in A second level involves creating more
times of economic integration and robust multilateral structures that generate
disintegration periods. collective responses to the challenges
In addition to crises generated in one ahead.
country, the financial globalization can lead A final tier involves strengthening
to financial crisis through the contagion regional links, including South-South
phenomenon. Thus, the main feature of the cooperation to consolidate the stability
crisis that occurred during 1990s, in the and open new opportunities for growth.
transition countries, is that they passed over
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5. References
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Maruntelu Carmen-Liliana
Dumitrascu Elena
Facultatea de Litere, Universitatea Ovidius, Constanta
liliana_maruntelu@yahoo.com
elena_mam2006@yahoo.com
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-Have you ever worked in a firm in Methodists studies over evaluation. Indeed,
the domain of your study? (Are you working in order to evaluate each teacher we should
at present?) compare the objectives with the results. At
-Where and in what kind of a firm? the end of the 87s Sibylle Bolton publishes a
-What is/was your job about? What book on evaluation. According to this study,
do you actually do? the learning objectives must be defined as
-Which are the fields of interest? behavior objectives which mean that the tests
-Are you a member of an must take into consideration the factors
association? which influence the language behavior. Even
- Do you practice sports? Do you like though they could not be named by this
music? How do you spend your free time? generic term, these objectives can only be
-What kind of a future job do you communicative.
wish to have? Which are the main reasons? In her book Evaluation, published in
Is/Will be your job difficult? Why? 2001, Christine Tagliante highlights these
-What skills are necessary for this objectives underlying the specific importance
specific job? of the general objectives “they are centered
-What skills do you possess? on the learner and they indicate in the ability
-What kind of advice would you give terms, the final results of the course of a
to someone who wants to work in this field? single unit of a course of a map shot.”
-Are foreign languages useful in your Communication skills have been
job? identified as multidimensional and so it
-Do you think it’s important to know becomes crucial to classify how they will be
one or two foreign languages in order to assessed in the students’ work. Furthermore,
succeed in the professional life? the particular communication skills required
-Do you like to work alone or as a in a profession are usually poorly defined.
part of a team? One study identified that communication
-Which one of the following do you skills assessment must:
prefer: a small of a big firm? • Be formal so that it occurs at specific
-Which place do you prefer: office, times and contributes to a student’s marks.
house, abroad, your own country? • Provide feedback to be educational.
-What about the work program: • Involve active participation by students
regular hours, variable hours, weekend in actual communication situations.
hours? • Tackle student insights so that skills are
-Give a reason for your motivation! identified and developed [6].
-Which is your main interest in a Individual feedback is important for
job? improving the education of students.
-Remuneration? However, there needs to be prudent
-The interest and the use of work? identification and clear operational
definitions of the rating dimensions so that
The second test the same standards are applied to all students:
This can be related to a simulation consistency and accuracy. It is vital that the
interview in which the candidate meets student understands what is expected and
bilingual collocutor, the examiner who wants what will be assessed ahead of time to
to know an aspect of his/her country, starting facilitate education, learning and the
from a document written in the mother generation of desirable characteristics,
tongue. The candidate should offer thereby delivering formative (feed-back) and
information about his/her country, region, summative (evaluation) assessment [6]. The
town, and answer a few questions, give oral communication element also needs to fit
suggestions about the social and economic in well with the subject at hand.
aspect and be able to speak about the social
climate. 5. Conclusions
The climate for the objectives of the
foreign languages study has risen in the past Language and communication skills are
twenty years and we can also notice an recognised as important elements in the
intensification of the didactics and education of the modern economists,
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6. References
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The National Bank of Romania published, Another important statistics made by the
on regularly basis, the FDI statistical survey, National Bank of Romania’ surveys is the
which was compiled based on the distribution of FDI took into account the
country of origin of the direct holder of at
least 10 percent in the resident direct
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In Romania the foreign direct investments [3] Website: http://www.bnr.ro, National Bank of
flows, were, also, affected by the current Romania and National Institute of Statistics,
crisis, the recovery was a more rapidly than “FOREIGN DIRECT INVESTMENT IN
the recovery of the foreign direct investments ROMANIA in 2009” ISSN 2247-5095
(online);
flows of EU-27.
[4] Website: http://www.bnr.ro, National Bank of
All the figures for 2011, presented in Romania and National Institute of Statistics,
Table 1. to Table 6 show signs of a recovery “FOREIGN DIRECT INVESTMENT IN
of foreign direct investment in EU-27 (both ROMANIA in 2008” ISSN 2247-5095
outward and inward) and in Romania (online);
(inward). [5] http://epp.eurostat.ec.europa.eu, EUROSTAT
The overall activity of foreign direct Statistics Database; European Union direct
investment enterprises had a positive impact investments (ESMS metadata file -
on Romania’s economy after the beginning bop_fdi_esms);
of crisis in 2008, and especially over [6] www.inf.org, IMF Balance of Payments
Manual, 5th edition.
Romania's trade balance (industry and trade
having an important role), contributing, every
year, with more than 69 percent to total
exports and with more 60,1 percent to total
imports.
In my opinion, taking into account, that
the country of origin of the direct holder of
Romania’ Foreign Direct Investments are
members of European Union and that the
European Union economy starded to recover
from the current financial crisis, the volume
of foreign direct investments made by
European Union member states in Romania
will increase in the next period, with positive
impact on the future Romania’s trade
balance.
The increasing of foreign direct
investments stocks in Romania will have,
also, a positive impact over the development
of Romanian economy taking into account
that in the past the foreign direct investments
flows were made, mainly, in industry (with
over 41% of total volume of foreign direct
investments made in Romania), in trade (with
over 12% of total volume of foreign direct
investments made in Romania) and in
financial intermediation and insurance (with
over 18% of total volume of foreign direct
investments made in Romania).
5. References
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word. In other words, tropes are procedures situation. Hyperbole is a figure generally
to replace a word or a set of words, with considered a bit difficult and exist a real fear
another term or another expression. The main in using it. Hyperbole particularly
form that appears “trop” within a speech is characterizes language of the snobs, using
metaphor (figure of speech which arises by precious speeches of past centuries. Thus,
implied comparison by replacing the word adjectives such as "formidable", "great",
object of comparison). In fact, the "awesome" or "fantastic" or even
comparison is often used by orators and exasperating repetition of "super" are now
lawyers in their efforts to convince the considered unbearable. To qualify somebody
auditors. This is a figure of meaning without as "brilliant" or "total zero" highlight real
being considered the most important figure. limited spirit and a real poor vocabulary
Meaningful comparison is not very sharp and rather than a figure of speech having success
full subjectivity as in the metaphor itself. among listeners. A student asking "Sir,
Statements in the front of judges such as please help me to pass this exam, because I
"under the influence of extreme emotion am dead cold, the cold makes me suffer like a
defendant acted like a robot" or "the evidence martyr and drove me crazy in the last week"
presented by the prosecution is like a sand will lead to the opposite result. There are a
castle" provides images that can be easily plenty of hyperboles that go up to impossible
identified by their color and which may and the unreal situations and will be useless
influence the judges and the crowd and can in the effort of a lawyer to win “the heart of
lead to desired results by speakers. judges”. So, phrases such as "my client is an
Metaphor is more subtle and more Angel and her husband is the Devil himself"
powerful and lead to strong emotions that can or "is not the fault of my client that the car
be exploited for the benefit of speakers. The accident happened because maybe he
same effect occurs when the prosecution consumed some alcohol but the fog that night
lawyer said in court about the accused person you could cut it with a knife", will definitely
charged with the crime of family lead to opposite results.
abandonment that "Mr. Smith, who was in Euphemism or significant attenuation is
front of you, has a heart of ice." In this case, other figures distinguished by the fact that
the lawyer starts from the fact that ice is cold dilutes the shocking elements, crude or
and by this analogy judges who compose the ridiculous of an idea. According to most
jury must perceive a lack of sensitivity and dictionaries, euphemism is a word or
humanity of Mr. Smith, who has no feelings expression in speech or in writing, replacing
for the family that he left. a word or phrase unpleasant, offensive,
Although not directly related to classical indecent or obscene, respecting the
rhetoric, the image or the symbol may be parallelism of meaning. Function of
used for rhetorical purposes. Symbol or euphemism is to avoid contradiction, taboos
emblem is often used to achieve different and conflicts. For experienced lawyers, there
goals. Use of the symbol and emblem consist is never a situation "extremely damaged", but
in metaphorical representation of an object or a "serious" no "strikes", but "social
a sign. Justice is often represented by a conflicts", no "prison" but "places of
balance, metaphor with direct reference to detention" nor "thief" but "person convicted
the notion of justice. Similarly, a heart for theft", "trafficking of influence" but
pierced by an arrow showing love, while a "lobby". Euphemism is used to eliminates
hand with two fingers rose in the form of the fear or unnecessary conflicts and generally to
letter "V" stands for victory. remain courteous and cautious.
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References
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expectations and requirements, depending on the opinion of the local Public Order
the evolution of the operational situation in Commission - the entity that directly
an area. manages issues related to maintaining public
• the principles of proximity and order and safety in each administrative area.
proportionality is the principle that compel In the course of their daily activity the local
local police activity to be located in the police may face situations beyond their legal
"vicinity" of the citizen having as main goal competence. In this case, the local police
meeting of the public request. Proportionality officers are obliged to communicate
refers to the need, the volume and intensity immediately to authorized institutions the
of activity to be harmonized with existing identified situation (the report will be
operational situation at a given time in a addressed to Romanian police, prosecutors'
given area. offices, etc.) The report of the local police
• the principle of openness and officer will refer to data and information
transparency, and quality refers to actions related to the violation of law which
taken by local police to be easily known to acknowledged while performing daily tasks
the general public either directly or through and activities. Act no. 155 from 2010
the media. concerning the local police, expressly states
• the principle of efficiency and that "in the exercise of its duties, local police
effectiveness, requires that local police cooperates with national police units,
actions have maximum results, desired by the respectively territorial structures of
community, in terms of volume, limited only Romanian Police, the Romanian
by human and material resources. Gendarmerie, the Border Police and the
• the principle of responsibility and General Inspectorate for Emergency
accountability, requires a high sense of civic Situations”. Local police cooperates with
attitude. Local police should perform their other central public administration authorities
duties considering permanent legal and social and local governmental organizations and
effects of his actions, which must be in with individuals and companies under the
compliance with the law. provisions of law". Moreover, in special
• the principles of impartiality and non- circumstances, local police may expressly
discrimination refers to impartiality, request the intervention of the competent
objectivity and equal treatment of all who territorial units of national police or
come in contact with local police [2]. Romanian Gendarmerie (county police
Local Police operates daily in the interest inspectorates, mobile gendarmerie or
of the local community, and based solely on brigades of gendarmes etc.) For any situation
legal provisions of the Romanian law. that is beyond the jurisdiction or
Moreover, regulation of the executive responsibility of local police this force might
authority of the local public administration is “call” for the help of appropriate law
the main "sources" of actions and measures enforcement body. According to the needs
undertaken by the local police in performing and peculiarities of each area, local police
its tasks set by law. Moreover, each local can conclude with other authorities and
police must operate in accordance with the institutions protocols of cooperation or
regulations specific to each domain. Local collaboration (e.g. county school
police actions are set by administrative inspectorates, environmental state units, the
actions in local and central public State Inspectorate in Construction etc.).
administration authorities. These protocols come to support the
To fulfill the duties specific, it is institutions and obviously bring benefits for
preferable that each local police to be the community. Signed protocols will be
established by each city hall taking in established and will create concrete ways of
account the establishment of an adequate cooperation with national police and other
number of general directions, directions, institutions that is offering support to local
services, offices and departments. All the police in performing specific tasks or
organization way is determined by the activities. Moreover, the continuous
number of citizens, the existed problems of exchange of information between
and not last taking into account the financial abovementioned institutions, continuously
possibilities of each city hall. It is essential providing of the specialized assistance in
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specific cases and supporting each other in These responsibilities are set out in the plan
certain situations, substantially increase of public order and safety, according to the
efficiency of the activities of these Romanian law. This document is a key
institutions under conditions of decreasing element in organization and function way of
costs. each local police unit. Normally, this plan
should be thinking out annually taking in
3. Organization and function way of the account the opinion of each local authority.
local police. 2. In the field of traffic on public roads,
local police have a number of
According to Law no. 155 of 2010, local responsibilities. The local police control the
police are organized and function through conditions and integrity of the traffic signs
local authority decision as a functional (signs, traffic lights, road markings).
compartment within specialized apparatus of Immediately inform the local authorities
the Mayor or General Mayor (in the case of about irregularities on the proper functioning
the General Mayor of Bucharest) or public of traffic lights, signs and road markings
institution local interest, with legal situation.
personality. Romanian legislator agreed to let 3. In the area of building discipline and
the local authorities to organize local police billboards. Local police carried out checks
as the entity with its own legal personality or and controls to identify unauthorized
as a specialized compartment within the constructions or buildings under construction
apparatus of the Mayor. or under demolition process. Local police
If we are speaking about the capital of the should monitor permanently the situation of
country, the law stipulates that local police provisional or temporary buildings.
will be organized by a decision of the 4. In the field of environmental
General Council of Bucharest (in terms of the protection, local police have a number of
local police of Bucharest) and the decision of responsibilities [3]. Local police will check
each territorial sector of the capital (local how the legal provisions in force regarding
police to be set up in each sector). procedures for lifting, transporting and
A local police officer can be detached storage of household and industrial waste are
from one unit to another. Posting can be done followed in the area of competence.
under the conditions mentioned in the 5. In the field of street commerce, local
resolutions adopted by the respective police has a number of attributes control
councils, taking into account the agreements concerning how marketing activities are
between the administrative-territorial units. conducted by individuals and companies.
By law, administrative-territorial unit that 6. In the area of records of people, local
supports local police officer will conclude police have power to establish contraventions
written agreements with each administrative- and apply sanctions (fines or warnings) to the
territorial unit receiving these local police persons who do not comply with the legal
services. To avoid any interruptions of a domicile, residence and identity documents.
financial nature, administrative and territorial
unit that detaches police must specify clearly 4. Other specific function way of the local
in the local budget funding sources for these police in Romania.
police officers detachment. In this way, will
be avoided any financial inconvenience for Local police which is structured in
the local police officer and for the local functional departments with responsibilities
police unit. in the field of road traffic concluded
Specific powers to local police protocols with the database administrator [4].
1. His duties in the field of public order In this way is provided necessary technical
and safety, and the guard movable and and personnel training for this work, in order
immovable state property or private property. to bring the database imposed penalty points
Local police have powers in commercial and due to the detection of road to driving
recreational areas (shopping malls, large offenses. The local police implements the
shopping centers, holiday villages, measures specified in Romanian law.
amusement parks, etc.), In parks, squares, Minutes of the contravention of the police
cemeteries, and also other public places. officers with responsibilities in traffic
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Popa Suzana
University of Pitesti, Faculty of Economics
suzanaciuca@yahoo.com
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in order to underline the quantitative The firms sector, called the real productive
relationships that can be established between sector, is made up of a multitude of
the different parts of the national economy enterprises of the economy which belong to
systems in the complex process of achieving the individuals either directly ( they own
the macroeconomic balance. them) or indirectly (hold shares to the
respective firms). The main economic
The macroeconomic sectors activity of the firms sector is based on the
production of goods and services, achieved
The economy may be regarded, at the through the consumption of capital goods and
macroeconomic level, as a dynamic system, of work (production factors). The goods and
made up of a multitude of systems linked services designed to the consumption are
together by direct and indirect connections of those that the firms send them to the goods
different types, every subsystem having its and services market in order to be purchased
own evolution and objectives which are and then consumed by the accommodations
conditioned by the accomplishment of social sector. The capital goods refer to cars,
welfare. Taking into account a very equipments, installations, means of
aggregate variant, the general structure of the transportation etc., that are not completely
cybernetic system of the national economy consumed in the production sector, but they
have the following sectors[3]: are used in a variety of manufacturing cycles
1. The accommodations sector in order to market goods and services
The accommodations sector is formed by the designed to consumption.
totality of the cybernetic systems of the The firms can produce, besides goods and
individual accommodations (the consumers) services designed to the personal
from the microeconomic level. The consumption (final) also capital goods
simultaneous treatment of individual designed to the productive consumption,
accommodations leads to an aggregate thus, contributing to the growth of total stock
behavior of the accommodations sector, as a of capital existent in the economy.
result of the interconnected function between 3. The public sector
millions of accommodations that exist within The public, also called governmental sector,
the national economy. The private propriety consists of the totality of central and local
is dominating, and certain factors such as institutions, as well as of the enterprises
work, are either in the direct propriety of the (administrations, national societies, etc.)
individuals within the accommodations, or found under the state ownership that achieve
belong to them indirectly through the shares public goods and services, such as defense,
that they hold and that give them the quality education, health, administration etc., and
of owners. The incomes of the also goods and services designed to the
accommodations sector, together with the consumption of other sectors of the economy
possible loans taken from the financial (highways, communication networks,
market (consumer credits) are spent by the schools, etc.) and that are too costly to be
accommodations sector to purchase goods accomplished by the firms sector.
and services. A part of these total incomes is The public sector purchases from the private
used by the sector in order to pay the taxes. sector goods and services that are used in
The savings represent that part of the total order to achieve public goods. For instance,
incomes of the accommodation sector which the public sector can buy from firms
is used neither for purchasing goods and stationary for administration, tanks and
services nor for paying the taxes. The bombproof machines for defense, computers
accommodations are inclined to save from a for education etc. Although, these goods and
lot of reasons. From the income saved, they services coming from the firms sector are
can increase the consumption during the considered, at the level of the public sector,
periods when lower total incomes are resources which are used to produce goods
achieved, they can offer education to their and ,,public” services. Some other time, the
children or increase their accumulated public sector itself can realize goods and
wealth. services through the enterprises found under
2.The companies sector (private, the state propriety, using for this hired
productive)
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resources from the production factors market transformed into internal currency, and the
(including work). outputs into an international recognized
4. The external sector currency or into the respective country
The material flows (such as imports and currency.
exports) and the financial flows between the 5.The financial sector
national economy and the rest of the world Generally, all the sectors lend and save
are realized through the external sector. If funds. The important thing is that these
one neglects this sector within the economy, processes determine a balance: if certain
one can say that it is a closed economy; on sectors save more than they spend, a funds
the contrary, one can speak about an open surplus can be created; this surplus is used to
economy. cover the funds deficit from the other sectors.
Any economy needs some goods and On the other hand, other sectors, which spend
services that the internal productive sector more than they save, have a funds deficit,
does not accomplish them or accomplish they borrow these funds from those which
them in insufficient quantities, so these goods have a surplus.
and services are to be imported; at the same The financial sector is the one that
time, any economy can produce additional achieves the funds transfer from the sectors
goods and services which can sell them on which have a funds surplus to those which
the world market, so they are exported. It is have a deficit. At the same time, the financial
noticed that the respective flows input and sector insures the interest payment deserved
output mainly from the firms sector, but the to those who lend funds from the received
public sector ca also make imports and incomes from those who borrow funds.
exports. The financial sector is made up of the
In order to make imports, both sectors multitude of different types of banks and of
should pay a part of their incomes, while for other financial intermediaries (insurance
exports they receive incomes from the companies, investments funds, retirement
exterior. funds etc.) that exist within an economy. The
A certain difficulty is represented by the annual savings accumulation of the sectors
currency used to make these mutual which have additional funds allows the
payments. The national economies have realization of investments funds used by the
different currency, a fact which weights the sectors which they have a funds deficit to
trade exchanges ( e.g. one of the main develop the productive activities.
reasons of introducing the euro in some of Usually, the sectors that save most are the
the European Union countries is given by the accommodation sector and the public sector.
facilities it creates when it is about the The accommodation sector constitutes the
payments of the export and import flows). most important sector which creates a funds
In order to solve the transformation of surplus. The savings achieved by this sector
foreign currency into internal currency and go to the other sectors and bring to the
vice versa, there are currency intermediaries accommodations sector a redundant income
within the financial sector (banks or due to the interest paid by these sectors. The
exchange offices) that, on the financial most frequently used forms of saving are: the
market ( more precisely on one of its formation of savings accounts, the purchase
components called currency market), they of firms and corporations bonds, the purchase
make exchanges between different currency. of insurance policies, contributions to the
Thus, the external sector uses the currency pension scheme etc.
market only to make currency The sectors which lend the biggest funds
transformations needed to the right course of are the public and private sectors. The funds
the exports and imports. transfer between these sectors is made, as a
In addition to these trade flows, any rule, on the financial market. On this market,
economy has inputs and outputs of capital the funds offer of those who save is equal to
flows. These are generally formed by foreign the funds demand of those who lend for a
investments made by the residents of other given level of the interest rate. If the funds
states in the internal economy or on the demand is temporarily higher than the funds
international financial markets. These capital offer, the competition between sectors to
flows are also transformed; the inputs are obtain funds from a rather limited offer will
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raise the price of funds, that is, the interest exhaustively know the investment
rates. Generally, higher interest rates will phenomenon, exacerbated by the
encourage savings, and they will discourage unsuccessful attempts to find universal,
the borrowers until the demand and offer are complex, comprehensive unifying models,
again balanced for a new level of interest either systematic or formal logical and
rates. causal. The type of modeling which sought to
synthetically express investment phenomena,
Foreign investment and the sustainable initially statistical, and later econometric, has
development of each cybernetic system gradually been replaced by smaller,
called national economy pragmatic solutions, with an obvious impact
in simulation and forecasting, as embodied
This paper addresses, in a complex by parsimonious models, relatively unstable
manner, the system of domestic economy. compared with the rapid changes in global
This approach is simultaneously economic in economy[4]. The investments triggered off
content and cybernetic through the systemic by the entrepreneur, a key player of the
vision of the structure and its operation, its economy, have been and still remain linked,
interaction with other systems in the over the past century as well, with economic
environment. The economic system is in a growth and recession.
period dominated by the principle of If an enterprise is defined as a practical
managerial pragmatism, a period graphically manner of organizing a business, where
called by John Kenneth Galbraith “the age of products and services are performed and
practical judgment”, whose new features, provided, jobs are generated, contributing to
values and principles are changing almost gross or net domestic product and import, to
entirely and continuously, no less than the export and especially to sustainable
resources, products and services of the new economic development, a foreign or
economy. international investment implies the existence
From Adam Smith’s “predictors and of at least two economic agents, an issuing
squanderers”, to the under-consumption agent and a receptor one, located in different
balanced by excess investment, by national economic spaces, and the existence
overestimating the ubiquitous Malthusian of an investment flow from the issuer to the
investor, to the detriment of a normal recipient. The investments flows can be
consumer, from Ricardo’s compensation of directed towards a receiver or destination
labour demand by reinvesting capital to the economy (inflow), conceptually representing
Keynesian type of inverse correlation of investment inputs, or can be generated by an
interest rates and investment levels, an issuing economy, or an investment source
economic concept linked to economic growth (outflow), meaning investment outflows.
centering on material and financial resources Closely related to the connection between
was shaped, and so it has become more and the issuer and the receiver of the investment
more necessary with every innovative flow, one can distinguish between foreign
approach; thus, investment occupied a more portfolio investment (FPI) and foreign direct
extensive area, in economic thought and investment (FDI), where the former possess a
theory. Over the last two centuries, the high migration potential, a completely
theories of foreign investment have shifted to unstable character, redefining itself as “hot
the center of economic growth analyses, and money”, while the latter category involves a
in the last half-century, the explanatory long-term relationship and implies a lasting
models have multiplied exponentially, but the interest and control performed by a resident
structural impact has permanently been under entity of one economy in an enterprise
the dynamics and the avalanche of an resident in another economy, thus bringing
increasing number of novel exogenous or the host country a great deal of advantages
factorial variables, which were nevertheless and benefits (from the chain effects of
rejected by the statistical tests of stability of growth, development and optimization, to
modelled and parametric correlations. stable financial resources, from the transfer
In parallel with the quantitative evolution, of managerial skills and improved technical
there have also been deep qualitative expertise to greater adaptability, from better
changes, stemming from the desire of targeting the export to the markets of goods
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and services, to financing local research and economic growth models, and models of
development capabilities, etc.). economic cycles and fluctuations. A systemic
understanding of the economy has been
Conclusions possible by deepening the study of the
classical factors, and the neo-factors, as well
Knowing the cybernetic system called as the entrepreneurial paradigm. The
national or domestic economy, or originality of the theoretical synthesis, with a
macroeconomic knowledge involves a role in the in-depth understanding of the
continuous, rigorous and coherent insight investment phenomenon, lies in this approach
system. centered on the entrepreneur and
The onset of theoretical investigation entrepreneurship [5].
consists in looking for characteristic This systematic conceptual approach was
variables, to be found in the system of intended to restructure and continuously
national accounts (SNA), renamed the reshape the hierarchy of the factors or
European System of Accounts (ESA) in the explanatory variables of the economic
area of the same name. To understand the phenomenon of investment in general. The
role and importance of each topic and major conclusion of this extended theoretical
economic sector of the SNA, as a cybernetic approach was that Romania’s transition to a
system or subsystem, viewed separately or new cybernetic system of real economy (a
within the framework of national economy, modern market economy, integrated into the
its interdependencies with other topics or EU), should seek to adjust all the subsystems
sectors, and the functions of the various to the requirements of the external
markets that form at this level as elements of environment in which they operate,
the regulation and self-regulation processes, respectively by:
as well as in controlling, directing and the partial or total sustainable
guiding those systems towards achieving its transformation of the production
own ends, and the general economic subsystem (clean and sustainable
objective, it is necessary to first study and technologies),
summarize the models of circular flows in the gradual technological and
economy, the model of the representative informational transformation of the
agent, those based on genetic algorithms, or, subsystem generated by the balance
more simply, on agents. Then, a conceptual of demand and supply (products from
and functional reference is in order, even a another category of resources),
limited one, concerning the investment ensuring better coverage of the
multiplier, which designates a selected factor, labour market subsystem,
which indicates to what extent an initial setting up and applying a new ethical
economic impulse (a separate and system to the subsystem of
independent variable) influences an profitability,
explanatory value (investment as a dependent applying a new morality to the
variable), at the same time as a necessary processes of the subsystem of
reference to the investment accelerator, forming and distribution of income,
equally defined by a selected factor, which and even of the profits of foreign
this time quantifies the rate at which direct investment.
investments fluctuate in relation to another
explanatory variable, the two concepts then References:
coming together as the multiplier-accelerator
to merge the regulation/control and [1] Ţigănescu I. E., Dumitru M., Scarlat E.,
stabilization mechanisms, as well as the Oprescu Gh., Andrei A., Curs de cibernetică
advantages of the two previous models, economică, Editura ASE Bucureşti, 1993
which have become, in practice, the most [2] Ţigănescu I. E., Roman M. D.,
often invoked and applied models. The Macroeconomie. O abordare cantitativă,
modelling of an economic cybernetic system Editura Economică, Bucureşti, 2005
is synthesized by means of three main classes
of models, namely the balance between
aggregate demand and aggregate supply,
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Popa Suzana
University of Pitesti, The Faculty of Economics
suzanaciuca@yahoo.com
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The comparative advantage has been trade. As a matter of fact, as we have already
described as offering a static approach of the shown, the modern theories realised from the
international trade based on the relative comparative advantage perspective, largely
endowment with production factors. The approached the elements analysed by the
notion of comparative advantage is a ACN theory. The trade based on the
fundamental concept of economy that made technological disparity has been debated by
Paul Samuelson, the laureate of th Nobel Posner[7] and Vernon[8] offering a dynamic
prize, declare as being the only statement from extension of the comparative advantage
all social sciences which is evidently true and theory in the model of the product life cycle
never devoid of importance. at the international level.The importance of
The competitive advantage is a more the production factors mobility was
complex and more dynamic concept which is recognized by Mundell [9] ever since 1957.
based on innovation and new technologies. Deardoff, Ethier and Krueger (1984)
In this context one can underline four of elaborated different articles showing the great
the most important elements that derive from economists’ concern for this field, long before
Porter’s theory: Porter. Cosequently, his statement according
the first one, a misunderstanding of to which he invented (discovered) a new
the comparative advantage within his paradigm of international trade can not be
theory and a return to an old point of sustained. The theory of the comparative
view and to a long rejected advantage does not provide a revealing
explanation of trade; explanation as to the intra-industrial trade,
the second element refers to the between countries having the same level of
statement according to which his endowment from the production factors’point
theory introduces new elements in of view , according to Porter’s statements.
analysing the theory of international Although, this idea had also been declared
trade, but this one is not deeply long ago by other economists concerned with
founded because the economists had this domain, who explained this type of trade
previously seen these elements; as a result to the scale economy. [10]
the third element refers to the A series of analysts consider that Porter
omission that appears from Porter’s appears in rather surprising positions by the
position as a ,, competitive” defender statements made within his theory. Thus,
against the comparative advantage, Warr[11] shows that this theory refers to the
makes the others misunderstand his importance of differentiated goods production
position regarding the governmental and especially of those belonging to the high-
involvement; tech industry and it shows the decrease in
finally, it is evident that, by rejecting importance of the comparative costs, fact
the comparative advantage, Porter which apparently justifies the waste of public
relies on the weight of his logic in expenditures or/ and of protectionist policies
creating the elements for the in the attempt of promoting the early
proposed model of development. development of top industries. This
Porter’s “attack” to the comparative interpretation of competitive advantage
advantage demonstrates, perhaps, to a certain menaces to encourage policies which will
extent (according to his critics) a fundamental waste the resources already limited of the
misunderstanding, encountered in the developing countries. Nowhere within his
confusion which is made between the role of theory, Porter does not embrace the idea that
the absolute and relative productivity as to the governments can use mindlessly the public
trade determination. Porter states that , expenditures, the protection and
wishing to counterattack the external administrative measures instead of
competition and to export, an industry must elaborating more efficient policies in the
attain the standards of an ,,absolute field of different industries. Generally, Porter
productivity”. was known as a well-known opponent of the
Probably, due to a (deliberately) less exact governmental intervention [12].
understanding of the comparative advantage, Porter denies the fact that a superior
Porter considers that his theory represents a competitivity can be obtained through the
new paradigm in the field of international comparative advantage and insists on the fact
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References
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Săveanu Cristina
Doctoral School of Economics
University “Al.I.Cuza” Iasi
cristina.saveanu@yahoo.com
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5. References
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Stoian Andrei
The Academy of Economic Studies
stoianandrei@gmail.com
Becherescu Radu
The Academy of Economic Studies
radu.becherescu@gmail.com
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eventually burst into crises with huge addressed in order to prevent future failures
economic impacts. in the financial system. Namely, the
By performing an analysis of the following can be stressed out.
previously enumerated crises, one can outline
certain behaviours in respect to the causes 3.1. Asymmetric Information
that led to the events. The particular “assets”
that were the starting basis of the crises are of This can be defined as the existence of
particular importance as they can suggest more or superior information for one party in
what was the origin in each cases. comparison to another, related to a particular
The bulbs in the “tulip mania”, stocks in transaction. This can lead to a harmful
the Great Depression, oil in the 73’ oil crisis, situation as one party can take advantage of
currencies in the Asian crisis from 97’, home the other party's lack of information.
prices in the US subprime turmoil were all As per Mishkin [6], the asymmetric
“assets” that either were overvalued or rose information view of financial crises, defines
unsustainably in price and led to the build up a financial crisis to be a nonlinear disruption
of bubbles that produced important effects to financial markets in which the asymmetric
when they burst. information problems of adverse selection
Therefore, the causes that led to the crises and moral hazard become much worse, so
can be split into two main categories: the that financial markets are no longer able to
particular ones, specific to each of the crises efficiently channel funds to those who have
and the common ones, which we can identify the most productive investment
in most crises and which can provide a opportunities.
solution to the prevention and better Adverse selection is an immoral
management of future financial issues. behaviour that takes place before a
Focusing on the common causes that let to transaction based on a surplus of information
the crises throughout history, one can that one party has. A buyer does not know if
highlight the unsustainable increase in the a seller is selling the security because of a
prices for a particular asset - a feature that sudden need for liquidity, or because the
applies to both advanced countries and also seller is trying to get rid of the toxic assets,
to emerging economies. For the EMEs, the which can lead to market illiquidity [5].
structural weaknesses are also to be taken Moral hazard occurs when a party
into account. Among these we can stress the protected from risk behaves differently than
limited financial development, the faulty it would behave if it were fully exposed to
governance structures, over-regulated the risk. Moral hazard arises because an
markets, external liabilities denominated individual or institution does not take the full
extensively into a foreign stronger currency consequences and responsibilities of its
or the fear of floating the exchange rate [3]. actions, and thus, has a tendency to act less
The increase in prices for that particular carefully than it otherwise would, leaving
asset should trigger some flags for the another party (usually the government) to
regulators and authorities in that particular hold some responsibility for the
market in order to include some additional consequences of those actions. The ‘too big
supervision and countercyclical measures in to fail’ is a very good example in the US
that area, so that a full scale event can be subprime crisis.
prevented.
Also, speculative actions without 3.2 Sudden stops
economic sustainability should be
discouraged through specific measures as A sudden stop is an event in which local
they exacerbate the booms, while creating economies lose access to international capital
panic by initiating the capital flight. markets, as foreign creditors become
panicked due to financial turmoil (e.g.
3. Issues to be addressed financial crises), thus stopping lending to
local economies. Sudden stops are usually
By an analysis of the development in the described as periods that include at least one
crises that have occurred one can identify observation where the year-on-year fall in
several common issues that should be capital flows is at least two standard
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deviations below its sample mean as per countries, especially China) which was
Calvo et al [1]. echoed in corresponding current account
surpluses was a very important pressure
3.3 Capital flight factor on the world interest rates, which were
driven down.
Capital flight occurs when assets or This was considered by some of the
money rapidly flow out of a particular economists to be the main factor encouraging
country, due to an event that has some the credit boom, lowering the risk premia and
economic consequences. Such events could increasing the prices of assets in the US, in
be either an increase in taxes on capital or the the years preceding the crisis.
government defaulting on its debt that alarms Still, the most import part of inflows
investors and causes them to decrease the coming into the United States came from
value of the assets they posses in that Europe, while surplus countries (China,
country, or just to lose confidence in its Japan, OPEC Countries) accounted for a
economic strength. much smaller portion. Furthermore, the latter
The main effect is wealth disappearance, group invested mostly in US bonds and other
together with a sharp reduction in the similar safe assets.
exchange rate of the affected country (for From this perspective, one could say that
variable exchange rate regimes this takes the the global imbalances were not one of the
form of depreciation, for fixed exchange rate main causes preceding the crisis; however
regimes this leads to a forced devaluation they did fuel it by an important amount.
from the original peg rate). Another
consequence of capital flight is the sharp 3.6 Deregulation
decreases in the purchasing power of the
country's assets which creates problems for Most of the new financial instruments that
importing goods and for paying foreign debt. are being “invented” do not fall under the
regulations in place. This is one of the exact
3.4 Free rider problem reasons why the new instruments are created,
so that they can avoid certain regulatory
A free rider is someone who benefits from requirements or prohibitions that would
resources, goods, or services and does not normally apply. Furthermore, in the boom
pay the costs associated however can still period, one could notice a tendency towards
take advantage (free ride off) of them. The deregulation and a pressure to relax the
investors acquiring a piece of information financial constraints, as the private sector is
will not be able to benefit from the entire taking advantage of the momentum.
increase in value of their assets as other will Still, most of the crises have shown that
also benefit, without having paid [4]. there is always a shortfall in this domain, and
especially during a boom period, in order to
3.5 Global Imbalances lower the magnitude of cycles, the
governments and regulatory bodies should
In the current globalised world, the impose additional controls in order to
current account imbalances that may appear increase the prevention and decrease the
seem to be less and less taken accountable for potential risks.
the macroeconomic and financial stress, as
the gross financial flows have started to 4. Conclusions
outweigh in importance the net ones.
The factors that emphasise the global Financial crises have occurred in many
imbalances also imply that the gross instances throughout history, still no actual
international financial flows are at the heart solution has been found in order to prevent
of any assessment of risks related to the them. Most crises have taken the economic
financial stability [7] environment by surprise, although the built
An important view, especially related to up of events and facts, together with a similar
the US Financial Crisis is that the excess of unfolding that have amplified the impact and
savings versus investments in the emerging effects can be traced in most of them.
markets (and one could outline the Asian
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One cannot anticipate the particular event, [5] Kirabaeva, K. (2009), “The Role of Adverse
area or industry that may lead to the crises, Selection and Liquidity in Financial Crisis”,
however, by determining which were the Cornell University – Departments of
common causes and the common Economics.
[6] Mishkin, F.S. (1996), “Understanding
developments that added to the creation and
Financial Crises: A Developing Country
amplification of these financial turbulences Perspective”, World Bank Annual
can assist in a better anticipation and Conference on Development Economics, 25-
management and further help identifying 26 April 1996, Washington D.C.
solution in diminishing the effects. [7] Obstfeld, M. (2012), “Does the current
Regulations imposed by national account still matter?”, Working Paper 17877,
governments or rules created by international National Bureau of Economic Research,
bodies that everybody should obey are the March 2012
final act in order to prevent future financial [8] Roubini, N. and Mihm S. (2010), “Crisis
disasters. As the world is moving towards a Economics: A Crash Course in the Future of
Finance”, The Penguin Press, New York.
more globalized stage, with ever more
increased interconnections between regions,
states and companies, any disruption in a
particular area is very likely to rapidly spread
to a larger scale. However, in order to
implement this, a very important role is to
identify the main features of pre-crises,
during the crises and after the crises events
that have the most important influence and
that create the negative effects which need to
be eluded. These effects have shown that the
financial turbulences can also have an
important social impact which should not be
disregarded.
By analyzing the history of crises, one can
see that many of the fundamental principles
remain the same, still the occurrence has not
changed, and moreover the crises seem to
appear more frequently and with a greater
impact within the last decades. Therefore all
common causes should be addressed in order
to minimise the potential appearance and
effects that a full scale financial crisis could
have on the economic environment.
5. References
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Utureanu Simona-Luize
Faculty of Economic Science, Ovidius University of Constanta
simona_utureanu@yahoo.com
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Intensity of rivalry
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the aircraft capacity increases. The marginal for another airline which provides services
costs for additional transported passages are through a transit connection. Between these
very low, which strengthens the update of the kind of competitors, heterogeneous, the
prices. The variable costs per aircraft are also ability to avoid competition through the price
significant and have been increasing (e.g. is less likely.
fuel price). The airline companies operate in the
political context specific to their origin
Figure 3 Relative high proportion of market. Operating on an international market,
fixed costs over short term they compete with companies which operate
under different conditions. This fact can
affect the competitive interaction between
them in a way which is not related to their
efficiency.
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recreation and some business traveler, depends on the ration cost/benefit of other
websites took the place of the tourism agents. means of transportation compared with the
For corporate clients the tourism agents are air transport.
still important, but they have changed their High speed trains for short distances
strategy in order to reduce the costs for their which run on European and Japaneese train
customers. tracks compete with the air transport.
Recreation website became the dominant Additionally, they can offer point-to-point
sells channel, mostly for flight tickets with connections.
low price. They allow easy comparison of the Private airplanes (regarding time-share
price for different airline companies and they programs) can compete with scheduled
increased the transparency of the prices. flights of airline companies, especially on the
Global distribution systems (GDS) collect business and first class sector, mainly for
data from airline companies and provide it to locations with low density traffic.
the tourism agents and recreation websites. Phone / Internet / Video confference
Some of them also have their own tehnology – offer high quality condition,
aggregation websites through which they making possible communication without the
directly sell tickets to final customers. need for people to travel.
The negotiation power of the supplier is This paper sugests that the capital
big. Some of them can record capital yield invested is not used optimally. The airline
bigger than the biggest airline companies. companies invest the biggest amount of thier
The aircraft manufacturers – In the last assets in the aviation industry, but they are
decades there has been a strong consolidation not capable of generating a sufficient yield
of the market for the aircraft manufacturers. for this capital. There are airline companies
If in 1992 there were 15 aircraft that have created positive yield for their
manufacturers in USA, today there are only investors (network airlines and low-cost
three left. Regarding the production of airlines). However, the aviation industry as a
commercial aircrafts, the two giants – Boeing whole did not succeed to accomplish the
and Airbus – allocate very big fonds for level of its yeild that the investitors expected.
research and development, this fact is The inefficient utilization of the existing
impossible for small manufacturers. capital will increase the cost of accumulating
The work force – Airline companies are new capital to substitute and extend the
dependent of their skilled employees, current levels of the capacity, and maybe
especially pilots and tehnical personal. discourage completely new investors.
Network airlines are sensitive at activities
interuptions in their hubs. In companies 5. References
usually exists different unions for different
types of personal (sindicates), each of them [1] Wensveen, J.G., Wells, A.T., Air
having the capability of disrupting the transportation: a management perspective,
activity. Ashgate Publishing Ltd., Farnham, 2007
[2] Pilarski, A.M., Why Can't We Make Money in
Airports – thier primary impact on the
Aviation?, Ashgate Publishing Ltd., Farnham
structure of the airline industry was through 2007
constraining the capacity imposed by the [3] Porter, M.E., “Industry Structure &
existing infrastructure and by the operational Competitive Strategy: Keys to Profitability”,
practices. Financial Analysts Journal, 1980, Vol. 36,
No. 4 (Jul. - Aug. 1980), pp. 30-41.
The Threat of Substitutes [4] Porter, M.E., “The Five Competitive Forces
That Shape Strategy“, Harvard Business
In the past, the threat of replacing the Review, January 2008, pp. 78-97
aircraft travel (the airline transport service) [5] IATA Report – Vision 2050
with other means of transpotation played a
moderat role. Now certain segments started
becoming important. Thre subtitution
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The share of exports in world exports Public debt should not exceed 60% of
of a country is not reduced by more GDP;
than 6% over the past five years; Average unemployment rate should
Nominal unit cost of labor (expressed not exceed 10% in the last 3 years.
as a ratio of average pay of an
employee and real GDP per number of European Commission presents an annual
persons employed) not increase by report to alert mechanism, published
more than 9% for the euro area and February 14, 2013, which identifies 12 EU
12% for the rest of the EU Member Member States macroeconomic risks that
States the last 3 years. require in-depth analysis: Belgium, Bulgaria,
Cyprus, Denmark, Finland, France, Italy,
Internal imbalances UK, Slovenia, Spain, Sweden and Hungary.
States enjoying a program of financial
Private sector lending must not exceed assistance from the EU and IMF - Romania,
15% of GDP; Greece, Ireland and Portugal - is already
Real housing prices should not rise under a reinforced economic surveillance.
more than 6% per year;
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By analyzing the 10 indicators in the year Although the euro zone economy is
2012 it is noted that Romania has no internal delicate, investment flows to Europe has
macroeconomic imbalances, but it appears continued to grow in 2011, investment
three external imbalances, the indicator for projects being at a number higher than pre-
"costs nominal unit labor" correcting the crisis period, the number of projects
following developments next year. increased by a share of 2% in 2011 compared
So, Romanian imbalance is emphasized to previous year.
further by the net investment position in 2011 The U.S. also stay ahead in terms of
with a considerable gap to the maximum investment in Europe, exceeding by 26% the
allowed, although small patches (about 63% total number of investment projects and
of GDP) than the current account deficit projects developed by this increased 6% in
which is slightly below the lower limit of the 2011, reaching the highest level in 10 years.
variation. Specialists consider that Europe will
Net investment position, ranking first overcome current economic problems faced
three EU countries that are seriously affected due to the increased level of attractiveness.
by this external imbalance is: After China, Western Europe is regarded as
1. Hungary, with a correction from the the most attractive destination for FDI and
year 2011 to -108.5 -112% of GDP next Central and Eastern Europe ranks third.
year; The most attractive European countries
2. Portugal, with a correction from the currently-Switzerland, Sweden and Germany
2011 to -103.5 -107.5% of GDP in 2012; - ranks 3, 5 and 9. These countries have an
3. Ireland, with a percentage of 90.9% of export-oriented economy and maintain fiscal
GDP in 2011 increased to 92.2% of GDP discipline. Prospects for European countries
in 2012. with financial problems seem to be
If we were to define investment position, dependent on how well they are prepared to
we say it is a necessary tool in the design of recover. Ireland (20) Iceland (26) and Italy
macroeconomic policies for external (40) seem to be doing better in this respect
financing. This actually reflects the than Portugal (41) Spain (39) and Greece
indebtedness of a country foreign debt (58), which still scares investors.
structure, the situation of FDI and portfolio's After significant declines in 2010, FDI
stock of external financial assets and flows from all European countries doubled in
liabilities and in calculating its count changes 2011. FDI flows from the EU to the rest of
in exchange rates, international prices other the world came to 370 billion in 2011, having
financial adjustments. fallen from 316 billion in 2009 to 146 billion
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Section I
International Affairs and European Integration
***
Subsection 2
European Integration
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Andrieş Andreea
“Alexandru Ioan Cuza University” of Iaşi
Doctoral School of Economics and Business Administration
andreea_andries01@yahoo.com
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In the same vein on the very low level of Therefore, if in the period prior to the crisis,
monetary policy interest rates and central the absence of the fiscal union constituted a
bank's extended balance sheets, there is the potentiating factor of asymmetries in the
danger of confrontation with the inflationary transmission of monetary policy decisions in
risk with well-known negative effects. Thus, it the financial and real plan, the ECB’s present
is inevitable a reconfiguration of the task to manage the issue of sovereign debt
relationship between monetary and fiscal crisis together with 17 distinct fiscal
policy that does not affect the independence of "umbrellas” is not easy at all, especially if we
the central banks and their credibility. take into account phenomena like the ageing
On the other hand, the general monetary population.
policy framework (strategy, objectives, Moreover, the restoration of euro's stability
instruments, transmission mechanism) is found and the normal functionality of the propagation
within a process of transformation that will try mechanism of monetary impulses depend
to answer as best as possible to the need of crucially on restoring fiscal soundness and
insuring both price stability and financial sustainability.
stability in an optimal monetary “mix”, that is An important step in managing the
why the task of central banks is one so sovereign debt crisis was made in 6 September
complex and provocative. 2012, when it was announced the concrete
Last but not least, the current crisis has possibility to take Outright Monetary
prompted considerable controversy (without Transactions (OMTs) aimed to restore the
reaching a consensus) regarding the mode of normal transmission of monetary policy that
action of central banks in terms of asset price has had the effect of stress diminishing in the
bubbles in the sense of "leaning against the financial markets. In the same vein, despite the
wind" or “cleaning up” after the bubble burst. officials' statements from the European Central
Therefore, in the post-crisis times, one of Bank according to which Outright Monetary
the most important common concerns for Transactions will not affect central bank’s
central banks stands in assuring both price independence (OMTs not being a form of
stability and financial stability with only one “disguised" financing of governments) and will
instrument, which is currently not working at not lead to inflation, concerns about the
its normal parameters, namely the monetary transformation of the relationship between
policy interest rate. monetary policy and fiscal policy at the
expense of the first, still persist.
4. Insights into the main forthcoming In terms of time horizon, in the short term,
challenges for the European monetary one of the major concerns of the ECB is
authority carrying out successfully the European
Banking Union, considering the fact that
In addition to the previously mentioned funding through banks is prevalent in the EU,
challenges, the current global crisis is an on the one hand and consequences of banking
important factor of amplification of what can crises like the one in Ireland, on the other hand.
be the greatest difficulty facing the ECB since On the medium and long term, in addition to
its establishment, namely the sovereign debt the problem of sovereign debt, the euro area
crisis. enlargement is still a big challenge for the
It should be noted, however, that sovereign ECB, if we consider the following: the current
debt issues do not constitute a reflect of some configuration of the euro area is not included in
euro's weaknesses, but of the misguided the category of optimal currency area; the
policies in the past (in terms of non-compliance recent crisis has led to a loss of
with the conditions enshrined in the Maastricht competitiveness in the countries that have
Treaty referring to the fiscal sustainability) recently joined the EMU; the lack of
implemented in certain countries in the homogeneity of countries and the asymmetry in
European Monetary Union (Greece, Portugal, the transmission of monetary impulses still
Spain, Italy). impede an optimal functioning of the euro area.
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Moreover, the economic and financial decisions, including the introduction of non-
characteristics of the candidate countries do not standard measures.
seem to relieve the burden of the ECB, on the With the major malfunctions occurring at
contrary (the inflationist potential is higher, the the level of the interest rate channel, the ECB
soundness of public finances and structural was forced to open a new channel, namely the
reforms are still shaky and require a liquidity channel (with new financial effects
considerable period for curing and not only), and challenges in terms of managing it) (see
which is why we consider that the ECB will Figure 1) in order to restore the normal
probably be more prudent, especially given the functionality of the monetary transmission
example of the too early accession to the euro mechanism, and despite the lack of experience
zone of countries such as Greece. in using it, the results in the financial markets
From another perspective, since the onset of were favourable. However, one must have in
the effects of the actual crisis, ECB’s efforts mind that liquidity doesn’t solve structural
have focused on the proper functionality of the problems and can’t be used infinitely.
transmission mechanism of monetary policy
Figure 1.Transmission channels of ECB’s monetary policy
Source: [1]
Because the effects of the global crisis have impact of the monetary policy shock upon the
influenced the evolution of GDP and inflation, GDP compared to inflation, but also the
it was naturally for the monetary policy stronger impact in states under sovereign stress
transmission mechanism to know the influence (Greece, Ireland, Italy, Portugal and Spain)
of new factors with significant weight as it is mainly through the credit channel, compared to
the sovereign debt, making more difficult the other countries (Austria, Belgium, Finland,
ECB’s main task. [8] Thus, in Figure 2 and France, Germany, Luxembourg, Netherlands).
Figure 3 one may remark a more powerful
Figure 2. Countries under sovereign stress
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Source: [1]
Moreover, at trust chapter it must be 4. Conclusions
underlined also the worrying evolution of the
Economic Sentiment Indicator (provided by The present work outlined some major
Eurostat) which is of course unfavourable to concerns for central banks from developed
the monetary transmission. Therefore, economies and not only, for the period after the
considerable efforts are needed on the part of present turmoil (very low level or close to zero
the European monetary authority and not only, of the monetary policy interest rate and the
in order to install a solid confidence in danger of maintaining it for too long,
financial markets and in the economy in substantial expansion of central banks' balance
general, so that the evolution of interest rates to sheets, the difficult process to implement exit
be consistent with the economic and financial strategies from unconventional measures,
fundamentals and to allow a good and adequate treatment on the formation of asset
symmetrical transmission of monetary price bubbles, the reconfiguration of the
impulses of the European Central Bank.
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monetary policy framework in order to ensure [4] Stark, J., “Adjusting monetary policy in a
that both price stability and financial stability challenging environment”, Speech
are achieved and others) to highlight even more at the “ECB and its Watchers XIII” conference,
the complexity of the challenges for the Frankfurt am Main, 10 June 2011
[5] González-Páramo, J., M., “The conduct of
European monetary authority.
monetary policy: lessons from the crisis and
In essence, it is worth noting that maybe challenges for the coming years”, Speech at the
the great and specific challenge for the ECB SEACEN-CEMLA Conference, Kuala Lumpur,
since the launch of the euro is the adequate 13 October 2011
management of the sovereign debt crisis in the [6] Cœuré, B., “The monetary policy of the
absence of a single fiscal union and under the European Central Bank”, Speech
conditions of a financial and economic at Barclays’ European Conference
environment marked by uncertainty and Tokyo, 26 March 2012
fragility and a generalized mistrust. [7] Praet, P., “Economic adjustment in the euro
Last but not least, it is imperative the need area”, Speech Congress 2013,
Frankfurt am Main, 27 February 2013
for submission of substantial efforts to
[8] Ciccarelli, M., Maddaloni, A., Peydró, J.-L.,
strengthen the euro (to avoid in the future the “Heterogeneous transmission mechanism:
question of dismantling the euro zone or of monetary policy and financial fragility in the
manifesting the redenomination risk). euro area”, Working Paper Series, No. 1527,
In terms of future research directions, we March 2013
consider analysing the evolution of ECB’s [9] Hoogduin, L., “Economic and Monetary Union
monetary policy framework in the post-crisis and the Sovereign Debt Crisis“, Lecture by Lex
period (with special focus on the monetary for the Masters Course European Union Studies
policy transmission mechanism) and the of Leiden University, Den Haag, 23 February
implications of Eurosystem’s outright 2011
[10]De Grauwe, P., “Challenges for Monetary
transactions in the secondary markets for
Policy in Euroland”, Journal of Common
government bonds upon the relationship Market Studies, Blackwell Publishers, Ltd,
between the European Central Bank’s 2002, Volume 40. Number 4. pp. 693–718
monetary policy and fiscal policy. [11]Drudi, F., Durré, F., Mongelli, P., “The
Interplay of Economic Reforms and Monetary
References Policy in the Case of Euro Area”, Working
Paper Series, No. 1467, September 2012
[1] Cœuré, B., “Challenges to the single [12]Roman, A., Politici monetare, Editura
monetary policy and the ECB’s response”, Universităţii „Alexandru Ioan Cuza”, Iaşi, 2009
Speech at Institut d’études politiques, Paris, 20 [13]Roman, A., Bilan, I., „The Euro area sovereign
September, 2012 debt crisis and the role of ECB’s monetary
[2] Constâncio, V., “Challenges to monetary policy policy”, Procedia Economics and Finance,
in 2012”, Speech at the, Emerging Markets Queries in Finance and
26th International Conference on Interest Rates, Business, Volume 3, 2012, pages 763 – 768
Frankfurt am Main, 8 December 2011 [14] European Central Bank,
[3] Draghi, M., “The monetary policy of the https://www.ecb.int/home/html/index.en.html
European Central Bank and its transmission in [15]Bank for International Settlements,
the euro area”, Speech at Università Bocconi, http://www.bis.org/
Opening of the academic year 2012-2013, [16]Eurostat,
Milan, 15 November 2012 http://epp.eurostat.ec.europa.eu/portal/page/port
al/eurostat/home/
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Anechitoae Constantin
anechitoae@yahoo.com
Buzarna-Tihenea (Gălbează) Alina
The Faculty of Law, Administrative Sciences and Sociology,Ovidius University of Constanta
alina_buzarna84@yahoo.com
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with the long distance navigation. In France extended to vessels also registered in Euros
and Italy, "cabotage" is international and once that register is approved. In order to
national; the latter is divided in terms of avoid distortion of competition, Community
customs in small and great cabotage. shipowners exercising the freedom to provide
The transportation of goods by “cabotage” cabotage services should comply with all the
is based on a permit granted by the customs, conditions for carrying out cabotage in the
subject to customs control; in case of transit, Member State in which their vessels are
the goods transported by "cabotage" will be registered; whereas Community shipowners
presented to the customs, at destination, operating ships registered in a Member State
within the deadline provided by the law. who do not have the right to carry out
Transport and towage in national "cabotage" cabotage in that State should nevertheless be
are usually reserved for national ships. beneficiaries of this Regulation during a
Vessel masters who do "small cabotage" transitional period. The implementation of
are not required to have a patent higher than this freedom should be gradual and not
"captain of cabotage". Maritime transports in necessarily provided for in a uniform way for
“cabotage" do not comply with the restrictions all services concerned, taking into account
of the last paragraph of Art. 5 of the Hague the nature of certain specific services and the
Rules. Long-distance vessels are granted this extent of the effort that certain economies in
right only for “determined goods” which are the Community showing differences in
not part of normal commercial shipments development will have to sustain.
during normal trade operations. The introduction of public services
entailing certain rights and obligations for the
5. Community cabotage shipowners concerned may be justified in
order to ensure the adequacy of regular
Having regard to the Treaty establishing transport services to, from and between
the European Economic Community, and in islands, provided that there is no distinction
particular Article 84 (2) thereof, having on the grounds of nationality or residence.
regard to the amended proposal of the Provisions should be adopted so that
Commission [7], having regard to the safeguard measures can be taken as regards
opinions of the European Parliament [8], maritime transport markets affected by a
having regard to the opinion of the Economic serious disturbance or in the event of an
and Social Committee [9], on 12 June 1992, emergency; whereas, for this purpose,
the European Parliament adopted its suitable decision-making procedures should
Resolution on the liberalization of maritime be introduced. In view of the need to ensure
cabotage and its economic and social the proper functioning of the internal market
consequences. This resolution is in and of possible adaptations in the light of
accordance with Article 61 of the Treaty experience, the Commission should report on
freedom to provide services in the field of the implementation of this Regulation and if
maritime transport is to be governed by the necessary submit additional proposals [11].
provisions of the Title relating to transport. These devices imposed (by the European
They had in view the fact that the abolition of Community) the adoption of a normative act
restrictions on the provision of maritime on the matter, entitled Regulation (EEC) no.
transport services within Member States is 3577/92 of the Council of 7 December 1992,
necessary for the establishment of the applying the principle of freedom to provide
internal market; whereas the internal market services to maritime transport within
will comprise an area in which the free Member States (maritime cabotage) [10].
movement of goods, persons, services and Maritime cabotage was liberalized on 1
capital is ensured; therefore freedom to January 1993. In the case of France, Italy,
provide services should be applied to Greece, Portugal and Spain, territorial
maritime transport within Member States. cabotage will be liberalized gradually
The beneficiaries of this freedom should be according to a specific program for each type
Community shipowners operating vessels of transport service. In these countries,
registered in and flying the flag of a Member territorial and inter-insular cabotage was not
State whether or not it has a coastline. By liberalized until 1999 [12].
means of this resolution, this freedom is
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Anechitoae Constantin
anechitoae@yahoo.com
Buzarna-Tihenea (Gălbează) Alina
The Faculty of Law, Administrative Sciences and Sociology,Ovidius University of Constanta
alina_buzarna84@yahoo.com
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recommendations of the International Labor for quality shipping, complementing the three
Organization adopted in 1920. major conventions of the International
The Maritime Labor Convention - MLC Maritime Organization (IMO):
of 2006 was adopted by the International • The International Convention for the
Labor Organization (ILO) with unanimous Safety of Life at Sea (SOLAS);
votes. It applies to international shipping and • The International Convention on
covers key issues such as the minimum Standards of Training, Certification and
requirements for seafarers to work on a Watchkeeping for Seafarers (STCW
vessels (Title I of MLC), the conditions of Convention);
employment (Title II, MLC), • The International Convention for the
accommodation, recreational facilities, food Prevention of Pollution from Ships
and catering (Title III, MLC), health (MARPOL).
protection, medical care and social services MLC has four titles that refer to the rights of
(Title IV), and its compliance and seafarers:
implementation (Title V) in order to ensure - Title 1. Minimum requirements for
decent working and living conditions on seafarers to work on a ship;
board and the procedures for implementing - Title 2. Conditions of employment;
them. - Title 3. Accommodation, recreational
The Convention can be seen as the first facilities, food and catering;
maritime labor code for more than 1.2 - Title 4. Health protection, medical care,
million seafarers worldwide, as well as for welfare and social security protection.
ship owners and maritime nations across the In addition, Title 5 of the MLC provides
globe. for mechanisms that improve the supervision
The Convention will enter into force after its at all levels, from vessel, company, flag State
ratification by the 30 member countries of and port State to the State provider of
the International Maritime Organization workforce and the ILO system for worldwide
representing at least 33% of the world gross uniform compliance and control. Indeed, in
tonnage. At the moment, 22 countries addition to a solid set of rules, it was needed
representing over 45% of the world’s tonnage a more effective system of law enforcement
have ratified the MLC [3]. control and compliance in order to eliminate
substandard vessels, for reasons of vessels
3.1. The provisions of the Maritime Labor safety and security and for environmental
Convention - MLC no. 186/2006 protection.
The task force on maritime employment
As ILO generally recognizes and and competitiveness recommended the
explicitly declares, the maritime industry is implementation of the MLC. This task force
“the first truly global industrial area” which is an independent body created by Vice
“requires an international legal response, President Siim Kallas, in July 2010, and it
properly articulated – global standards completed its work in June 2011, by
applicable to the whole area”. publishing a report [4] containing policy
The Maritime Labor Convention, adopted recommendations on how to promote the
in 2006, contains comprehensive provisions seafaring profession in Europe.
relating to the employment protection and the
rights of all seafarers, irrespective of 4. The European Union's interest in
nationality and flag. maritime labor
MLC seeks the creation of decent
working conditions for seafarers and ensures The EU Member States and the
fair competition for quality ship owners. It Commission supported the ILO’s work in
sets out the seafarers’ rights to decent work this area since the very beginning. The
for a wide range of situations and it was European Union considers valuable the MLC
intended to be globally applicable, easily contribution because this convention aims to
understandable, updatable and uniformly establish several fair competition conditions
enforced. It has been designed to become a in the maritime field globally, by setting
global instrument known as “the fourth common minimum standards for all flags and
pillar” of the international regulatory regime seafarers.
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In this respect, the EU has already This initiative is part of the EU policy on
adopted the Council Decision 2007/431/EC maritime professions. In fact, as outlined in
of 7th June 2007, authorizing the ratification the Commission Communication to the
by the Member States, in the interest of the European Parliament, the Council, the
European Community, of the ILO European Economic and Social Committee
Convention of 2006 on maritime labor [5] . and the Committee of the Regions, entitled
Some Member States have already ratified “Strategic goals and recommendations for the
this Convention (Spain, Bulgaria, EU’s maritime transport policy until 2018”,
Luxembourg, Denmark, Latvia and the the EU has a real interest in making maritime
Netherlands), while others are about to do it. professions more attractive for Europeans
In fact, the national laws of Member States through activities involving, as appropriate,
are generally more protective and more the Commission, the Member States and the
detailed than the ILO standards. In order to maritime industry. This directly affects the
maintain consistency between the implementation of the MLC, which brings
international and national standards and to considerable improvement of working and
ratify the Convention, it is required the prior living conditions on board.
completion of a vast and long review of the This Communication stresses that the
national legislation. existing agreement between the European
Also, the EU adopted the Council social partners on the implementation of the
Directive 2009/13/EC of 16th February 2009, key elements of this Convention
implementing the Agreement between the demonstrates the overwhelming support for
European Community Shipowners this initiative by the maritime industry and,
Associations (ECSA) and the European therefore, shares the actions of the European
Transport Workers’ Federation (ETF) on the Union and of its Member States which
Convention of 2006 on maritime Labor and should aim at:
amending the Directive 1999/63/EC [6]. The - the move towards the rapid ratification
Directive 2009/13/EC is a significant of MLC by Member States and the
achievement of the sectoral social dialogue immediate adoption of the Commission
and this proposal aims to ensure that it has proposals by the agreement of social partners
adequate means of ensuring its on the implementation of the Convention key
implementation throughout the Union. elements into EU law;
To this end, it also provides for the - the actual enforcement of the new rules
obligation of Member States to implement through appropriate measures, including the
the Directive 2009/13/EC, when they control requirements for the flag and the port
exercise their powers as flag States. In the State [7].
current situation, through the Directive The White Paper “Roadmap to a Single
2009/13/EC, the European legislation has European Transport Area - Towards a
been aligned with the international standards competitive and efficient transport system in
set by the MLC. This directive takes over the terms of resources” [8] underscores the
relevant provisions of the MLC contained in importance of the social agenda for maritime
Titles I, II, III and IV (mentioned above), transport, both to promote employment and
which establish the seafarers’ rights. to increase safety; the Commission Staff
working Document accompanying the White
4.1. European social partners Paper anticipates launching a proposal aimed
at ensuring the effective implementation of
However, because the European social the MLC.
partners which wish to implement the
agreement by a Council decision under 5. Social standards based on ILO
Article 155 of TFEU do not have the power conventions
to include in their agreement the provisions Currently, during the controls applied by
to ensure the implementation contained in port States, there are already carried out
title V of the MLC, they addressed the inspections on the social standards based on
Commission asking it to do so. This is the ILO conventions, particularly the ILO
precisely the goal proposed by this initiative, Convention no. 147/1976 concerning the
in connection to flag State responsibilities.
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6. Conclusions
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Apătăchioae Adina
Faculty Of Economics and Business Administration, "Alexandru Ioan Cuza" University,
Iași, România
adinaapatachioae@yahoo.com
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leveled and have become more stable, management plan and can not be independent
creating an environment where new of the business model practiced by banks or
opportunities are available to both companies risks taken individually [3].
and households. From here the harmonize Contrary to these economists, the authors
financial benefits have expanded in terms of Abdilahi and Katsushi argue that financial
reduction of unemployment rate and integration is beneficial to economic growth,
economic growth. in these circumstances will be registered
The introduction of the euro has positive effects in terms of economic
significantly pulsed achieving financial performance. They also said that accelerating
integration by reducing transaction costs, the integration process will reduce the
increasing investment resources, reducing negative effects of the crisis and will avoid
risks and rates of exchange between such situations in future [6].
currencies, but also brought market Financial integration through the financial
confidence, which has favored the system channel the financial resources
development of direct investment and of necessary for economic growth: ensures trade
entire investment portofolio. fluidization, portfolio diversification and risk
All these elements, together with a central reduction. Also, financial innovation reduces
bank, focused on ensuring price stability, the production of information asymmetries,
helps develop financial innovation useful in reduce transaction costs and increase
carry out the activities in the real market. competitiveness, all of this are possible only
Also, an integrated financial system ensures through an integrated market.
proper transmission of monetary policy in the Studies undertaken shows that financial
euro area. integration generates direct positive effects
In addition to this last item, financial on productivity growth and the economy [7].
integration will increase the Eurosystem
responsibilities in ensuring financial stability Figure 1. Growth Accounting for More
and of payment system, will determine the and Less Financially Open Economies
modernization of the financial system and
contribute to the growth of non-inflationary
economic climate [2].
Moreover, the stability and an adequate
supervision of the market facilitate the
appropriate allocation of resources,
diversification of assets and an increased
competition between financial institutions
leading to a reduction in intermediation costs
[1].
In literature is appreciated that a more
integrated financial market is beneficial to an
sustainable economic growth. Both financial
integration and also financial innovations
have beneficial effects on financial efficiency
and on real market [3]. Moreover, an long-
term positive impacts on economic growth is
observed in the reduction of market
volatility.
Contrary to this statement, are authors
who believes that a common financial
market, characterized by greater mobility of
capital, leading to an increase risks,
Source: M. Ayhan Kose, Eswar S. Prasad, and
speculation in the market and
Marco E. Terrones, Does Openness to
macroeconomic instability [4] and [5]. Same International Financial Flows Raise Productivity
idea compart and Papademos, which Growth? 2008 International Monetary Fund, p.33
recognizes that positive effects may be
accompanied by inconveniences in risk In addition to these advantages generated
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Figure 2. Money market rates: financial area in storage costs which will be transferred
crisis stress and cross-border dispersion later in the prices of loans.
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Avadanei Anamaria
Tomuleasa Ioana-Iuliana
Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business
Administration
anamaria_avadanei86@yahoo.com
iulianatomuleasa@yahoo.com
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Table no.2: Evolution of the trading income individual level, banking risks have increased
growth rate in the selected countries, during based on low interest in monitoring off-
2009-2012 (%) balance sheets items and low credit quality.
2009 2010 2011 2012 At the aggregate level, the risk combination
BG 43,98 21,11 -8,89 38,71 represents a precondition for the creation of
CZ 296,41 -35,58 -16,06 55,61 the speculative bubble. Among the reasons
which have generated a new business model
LV -305,26 -17,61 -27,82 18,62
we mention low profitability, risk
LT 251,32 -35,44 -94,95 80,54 management limits and bank leverage.
PL 4,73 25,16 -18,99 -1,33 Central bank supervision, applied both for
RO n.a. n.a. n.a. n.a. banks and non-financial corporations, has the
HU n.a. n.a. n.a. n.a. role to clean the banking business model,
Source: own processing after IMF Data limiting the toxic trends (such as excessive
lending). It is desirable to adopt efficient long
The reason involves objective term risk practices, in order to ensure
performance comparability associated to sustainable development and responsible
different risk levels, respectively transactions financial intermediation activity. Commercial
output-risk profiles [11]. banks results show their limits, the
vulnerable spots and announce the new
Table no.3: Evolution of credit risk* in the trends - high provisioning costs, financial
selected countries, during 2009-2012 deleveraging and low risk appetite.
2009 2010 2011 2012
BG 6,4 11,9 14,97 16,9 Table no. 4: Evolution of ROA in the selected
CZ 5,2 6,2 5,48 5,06 countries, during 2009-2012
LV 16,4 19 15,03 9,59 2009 2010 2011 2012
LT 19,3 19,7 21,18 18,6 BG 1,10 0,86 0,85 0,80
PL 8,0 8,8 4,8 5,09 CZ 1,50 1,30 1,50 1,38
RO 7,9 11,9 13,63 17,3 LV -1,6 -1,8 0,49 2,51
HU 6,7 9,7 12,13 16,14 LT -4,23 -0,34 1,21 0,80
*NPL/Gross loans PL 0,90 0,90 1,19 1,20
Source: own processing after IMF Data RO 0,30 0,20 0,025 -0,16
HU 1,70 0,59 0,25 0,26
It is relevant to mention that credit risk Source: own processing after IMF Data
has been the main challenge within the
banking systems in the last few years, Thus, banks have initiated measures to
registering high growth rates and volumes. control costs by scaling network outlets but
The European emerging countries have been also by delaying or reducing investment
affected by the financial crisis, through programs. Increasing interest margins, sales
contagion channels. The banking systems of fixed assets and the purchase of
experienced a deterioration of bank asset government bonds were among the most
portfolios. The implication of monetary common strategies put in place by banks to
authorities in various agreements to ensure improve their short-term financial position.
financial stability has served as an anchor of (See Table no.4 and 5).
credibility and macroeconomic stabilization
(See Table no.3). Table no.5: Evolution of leverage ratio in the
The increase of systemic risk has been selected countries, during 2009-2012
caused by a translation into the business 2009 2010 2011 2012
banking model from originate and hold form BG 7,74 7,79 9,11 9,88
to originate and distribute form. In the CZ 11,22 10,70 15,27 15,07
traditional model, banks use term deposits to LV 10,68 11,12 9,71 8,82
support long-term lending. Mainly, the LT 14,20 12,43 10,64 8,79
associated risks are liquidity risk, interest rate PL 10,85 9,73 12,93 12,09
risk and credit risk. In the actual model, RO 10,60 9,49 -3,33 1,88
banks have tried to avoid the exposure to HU 10,35 10,49 12,68 11,12
these risks, by selling assets. At the Source: own processing after IMF Data
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recent context, Handelsbanken continues the and participants to the financial systems, in
expansion process through new units terms of examples and lessons learned. In
designed to bring more clients and to order to prevent imbalances and to reduce the
maintain loyalty. consequences, the key aspects refer to a high
A fundamental lesson that should be level of transparency and an efficient
learned from this financial crisis involves communication between all parties.
moderation as a key coordinate for rational
behavior.
The most stringent challenges of the 9. References
European banking systems are related to
regulation and efficient monitoring of the [1] Lipski, J., “Through the Looking Glass: The
risk, a sustained rhythm of real convergence Links between Financial Globalization and
process and economic recovery reforms. Systemic Risk in Globalization and Systemic
Risk”, edited by Evanoff, D., Hoelscher, D.,
Kaufman, G.C., ISSN: 1793-3641, World
3. Conclusion Scientific Publishing Co. Pte. Ltd., 2012;
[2] Shin, H.S., “Securitisation and financial
The recent financial crisis has changed the stability”, The Economic Journal, 119, pp.
climate in which operates the actors of the 309-332, 2009;
financial markets, affecting the relationship [3] Gorton, G. B., Pennacchi, G. G., “Banks and
between customers and banks, companies or loan sales. Marketing nonmarketable assets”,
individuals. Great giants of the financial Journal of Monetary Economics, 35, 389-
markets, so-called too-big-to-fail entities 411, 1995;
(TBTF), became an obsessive concern for the [4] Santomero, A. M., Trester, J. J., “Financial
innovation and bank risk taking”, Journal of
government and monetary authorities,
Economic Behavior & Organisation 35, 25–
considering that business size, market power 37, 1998;
and complexity are major issues related to [5] Instefjord, N., “Risk and Hedging: Do Credit
the management of an institution. These Derivatives Increase Bank Risk”, Journal of
characteristics should be handled in a specific Banking and Finance, 29, 333-345, 2005;
manner, without threatening the robustness [6] Wagner, W., “The liquidity of bank assets
and resilience of the banking system as a and banking stability”, Journal of Banking
whole. Flexibility transpose into and Finance 31, 121-139, 2007;
sustainability. [7] Stiroh, K., J., “Diversification in banking: Is
Summarizing, the new banking business noninterest income the answer?”, Journal of
Money, Credit and Banking 36(5): 853–882,
model can be analyzed based on the
2004;
following coordinates: [8] De Young, R., Roland, K., “Product Mix and
• Strategic reconfiguration; Earnings Volatility at Commercial Banks:
• Capital reconfiguration (financial Evidence from a Degree of Leverage Model”,
capital - costs, working capital - Journal of Financial Intermediation 10
infrastructure, human capital– staff); (January), 54-84, 2001;
• Activity reconfiguration - [9] Baele L., De Jonghe, O., Vander Vennet R.,
(embracing the traditional activities, “Does the stock market value
diversification?”, Journal of Banking and
moderation, risk-adjusted
Finance 31(7): 1999–2023, 2007;
performance); [10] De Jonghe, O., “Back to the basics in
• Management risk reconfiguration. banking? A micro-analysis of banking system
Changes in the financial environment are stability”, Journal of Financial
necessary due to the amplification of Intermediation 19(3): 387–417, 2010;
contagion risk in the monetary union, [11] Bessis, B., “Risk Management in Banking”,
especially considering the latest events John Wiley & Sons, Ltd., 2002;
manifested in Europe. The sovereign debt [12] Dănilă, N., “Noul model de business al
crisis has severe implications on the banking băncilor comerciale și provocările lui”, 2013,
www.bnr.ro;
system stability, questions the integrity of the
[13] Aucremanne, L., Ide, S. , Lessons from the
Euro zone and generates conflicts among crisis: Monetary policy and financial
countries. stability, 2010,
The unprecedented size of the current
turmoil is a warning for both decision makers
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http://www.nbb.be/doc/TS/Publications/Eco
nomicReview/2010/ecorevII2010_H1.pdf;
[14] Altunbas, Y., Manganelli, S., Marques-
Ibanez, D., “Bank Risk during the Financial
Crisis. Do Business Models Matter?”, ECB
Working Paper, No. 1394, 2011;
[15] Bernanke, B., “The effects of the Great
Recession on central bank doctrine and
practice”, 2011, http://ideas.repec.
org/a/fip/fedgws/y2011x49.html;
[16] Borio, C., “Central banking post-crisis:What
compass for uncharted waters?”, 2011,
http://www.bis.org/publ/work353.pdf;
[17] González-Páramo, J., M., , “Lessons from the
crisis for monetary policy and financial
stability”,2010, http://www.ecb.int/press/key/
date/2010/html/sp100903.en.html;
[18] Scheicher, M., Marques-Ibanez, D.,
“Securitisation: Instruments and
Implications, in Handbook of Banking”,
edited by Berger, A., Molyneux, P., Wilson,
J., Oxford University Press, 2010;
[19] *** Association for Financial Markets in
Europe (AFME),”Securitization Data Report:
Q2 2012”, London, 2012
http://www.sifma.org/
research/item.aspx?id=8589940734.
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1958- The European Social Fund and the Fund, which is specifically dedicated to
European Agricultural Guidance and supporting less developed EU Member
Guarantee Fund were established. States.
1975- After Denmark, Ireland and Great 1995- Through the accession of Sweden
Britain joined the Community, the European and Finland, sparsely populated regions
Regional Development Fund (ERDF) was started to receive funding.
created. Thus, the concept of redistribution 1997- The Treaty of Amsterdam (signed
between the rich and the poorer areas of the in 1997, in force since 1999) lays the basis
Community appears for the first time. The for the principles of the European
allocated budget was 1.4 billion currency Employment Strategy.
units (ECU) for the period 1975-1977 1999- Berlin- The second reform of the
(around 4% of the budget), which was going Structural Funds, with a focus on
to be distributed, by quotas, among the 9 supporting disadvantaged social groups and
Member States. Eligible actions: 1. regions. As a result, a new set of regulations
investments in small enterprises which for the period 2000-2006 is drawn up, and
created at least 10 jobs; 2. investments in two new structural pre-accession instruments
infrastructure linked to point 1; 3. are introduced, namely the Instrument for
investments in the infrastructure of Structural Policies for Pre-Accession
mountainous areas. (ISPA26) and the Special Accession
In the period 1975-1985 the ERDF budget Programme for Agriculture and Rural
increased by 10 times, from ECU 258 million Development (SAPARD27).
to ECU 2290 million, and its share in the
Community budget doubled, from 4.8% to The reform of the regional development
7.5%. [3] policy for 2007-2013
1986-1987- The concept of economic and
social cohesion was introduced in the Treaty, The enlargement of the European Union
with a view to helping the last States that to 27 Member States brought numerous
joined the Community (Spain and Portugal) challenges to economic competitiveness,
to face the challenges of the single market. with the existing gaps between Member
1988- The first reform of the Structural States and their regions increasing strongly.
Funds, corresponding to the Jacques Delors For the period 2007-2013, the cohesion
package, led to redefining the objectives of policy is financed from the EU budget
the Structural Funds, i.e. of the ESF (1958), through 3 structural instruments: the
EAGGF (1962) and ERDF (1975), under the European Regional Development Fund
umbrella of the cohesion policy. (ERDF), the European Social Fund (ESF)
1989- The principle of multi-annual and the Cohesion Fund (CF). In addition to
programming is introduced in the system of this, there are the following complementary
granting Structural Funds, based on actions: the European Agricultural Fund for
establishing priority objectives and finalizing Rural Development (EAFRD) and the
the system of partnerships between Member European Fisheries Fund (EFF).
States.
1992- It is decided to double the budgets Objectives of the EU cohesion policy
for disadvantaged regions: Spain received
ECU 10.2 billion, Italy ECU 8.5 billion, The main objective is to achieve
Greece ECU 7.5 billion, Ireland ECU 4.46 convergence, i.e. to reduce the disparities
billion – these funds were granted for which exist between different EU regions and
promoting the structural development and Member States with a GDP per capita under
adaptation of less developed regions 75% of the Community average and the
(according to Priority Objective 1). regions affected by the so-called “statistical
1993- This year marks the reform of the effect”.
Structural Funds through the Treaty of Thus, under the current financial
Maastricht, economic and social cohesion perspective, approximately 80% of the
being mentioned for the first time among the Structural Funds are earmarked for this
general objectives. A new financial objective (according to the EU Treaty).
instrument is created, named the Cohesion Regional competitiveness and
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and investing in growth when it is most crisis better than the EU average, whereas
desperately needed. [...] But we also have many regions from Ireland (where the
lessons to learn: results are sometimes unemployment rate had reached 12.8%),
Southern Finland, Northern and Central Italy,
patchy and Member States need to speed up
which had previously been in a developing
their efforts to use the EU resources. As we stage, were particularly affected.
look ahead to the new programming period, Nevertheless, the performance of the
we expect Member States and regions to convergence regions varied extensively.
focus the policy even more on results and The recession was particularly severe in the
priorities that will have the greatest impact”, Baltic States, Greece, Ireland, Portugal and
as the Commissioner for Regional Policy Spain. Although the Baltic States and Ireland
are recording economic growth, Portugal and
Johannes Hahn declared.
Spain are still in recession in 2012, a
recovery of their economic situation not
3. The impact of the global crisis on the
being estimated until 2014, while Cyprus and
cohesion policy
Greece are still facing the decline of the
GDP. [6]
Breaking out in the USA at the end of
2007, due to the collapse of the real estate Employment in the EU declined
significantly in the period 2007-2012, up to
market and of the banking system, the
6 000 jobs being lost. Whereas in 2009 the
mortgage crisis spread rapidly and became in
unemployment rate is 8.1%, in January 2013
no time a major worldwide concern.
it reaches 10.8%. The lowest unemployment
As an important buyer of “toxic assets”
rate is recorded in Austria (4.9%), and the
from the portfolios of American banks, the
highest in Greece (27%) – November 2012.
European banking system initiated its
Thus, the crisis increases the economic
decline. The main impetus factors:
disparities (the role of the cohesion policy is
- the strong increase of commodity prices
heavily undermined); the latest data indicate
(for example, oil price increased by over
differences between regions of 3.5 to 10.5
100% between 2007 and 2008);
percentage points (between the States
- the strong appreciation of the euro against
situated in the North and South of the
the dollar (by 33% in the period 2006-2008);
Eurozone).
- the delayed effect of interest rates (8
The business environment is also strongly
subsequent growths in the period 2006-2007,
affected by the recession, with total
from 2% to 4%).
According to the fifth “Report on investments (gross fixed capital formation)
dropping from 21% of GDP in 2008 to 18%
economic, social and territorial cohesion of
in 2012.
2010” [5], the economic crisis hit regions
specialised in manufacturing, in particular,
and the highest increases in unemployment EU’s anti-crisis measures plan [4]
were recorded in regions highly dependent on
“With the crisis, EU cohesion policy
construction. Regions specialised in tourism,
funds have become even more important as a
most of them with a GDP per capita below
source of investment across the Union. The
the EU average, have not yet been affected
European Social Fund is delivering crucial
significantly, just as regions with large shares
support to our human capital, especially
of public employment. In the same way,
regions specialised in financial and business helping young people to maximise their
chances of a successful career. The
services, most of them situated around capital
preparation of the next generation of
cities or developing metropolitan regions,
programmes is a unique opportunity to
have been affected to an average extent in
underpin our growth and jobs strategy with
terms of the impact on GDP and
significant financial support. Social and
employment.
human capital investment needs to play an
The estimates of the last cohesion report
important role in this”, declared the
indicated the fact that at the level of NUTS 2
Commissioner for Employment, Social
regions, 64 convergence regions (CONV)
Affairs and Inclusion, Lázsló Andor.
and 15 transition regions (TRANZ) faced the
As part of their response to the financial
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crisis, the EU institutions agreed to a set of economic and financial crisis [5], for a
measures to promote simplification and smooth application of the programme the
improve the flow of EU funding: following measures are recommended:
- the simplification of national and regional “phasing out crisis-related measures where
procedures, reducing the time for paying they risk impeding active measures to combat
advances to public authorities and long-term structural unemployment; and
enterprises that benefit from state aid strengthening the ESF’s focus on structural
(Bulgaria, Cyprus, Ireland, Hungary, measures and vulnerable groups.”
Spain, Italy, Lithuania, Latvia, Slovenia, Moreover, the ESF will have to be fully in
United Kingdom); line with Europe 2020 Strategy, with a view
- the reduction of national co-financing to achieving the 5 proposed objectives on
within the limits of a regulatory ceiling employment, research, education, the fight
(Spain, Greece, Ireland, Italy, Lithuania, against poverty and energy/climate. All this
Portugal and, to a lesser extent, Belgium, will be based on the system of economic
France and United Kingdom); governance, which aims to coordinate policy
- the temporary increase of the co-financing actions carried out at EU and national level.
rates – up to 95% – for Member States In this way, the European vision according to
with the greatest budgetary difficulties which “the crisis can make us stronger” may
(Greece, Hungary, Ireland, Latvia, find its application in practice.
Portugal and Romania);
- although the decrease of national public 5. References
financing results in the reduction of the
total investment volume, the goal is to [1] Dragan, G., “Politica de coeziune
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[2] “Treaty establishing the European
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implement the EU and IMF adjustment European Economic and Social Committee
programme in order to speed up the and the Committee of the Regions-Cohesion
policy: Strategic report 2013 on programme
absorption of EU funds.
implementation 2007-2013”,
http://ec.europa.eu/regional_policy/how/polic
4. Conclusions y/doc/strategic_report/2013/strat_report_201
3_en.pdf
It is undeniable that the EU has been [5] “Evaluation of the reaction of the ESF to the
facing serious difficulties in this period of economic and financial crisis”-
crisis, and that the effects of the economic http://ec.europa.eu/esf/main.jsp?catId=67&la
downturn at a global and national level had ngId=en&newsId=7963&furtherNews=yes
an impact on job supply and demand. [6] “European Economic Forecast” -
However, the sums allocated for active http://ec.europa.eu/economy_finance/publicat
ions/european_economy/2013/pdf/ee1_en.pdf
policy measures concerning the labour
market actually increased during the crisis.
This may be due to the anti-crisis measures
implemented by each Member State facing
difficulties, to the support from IMF, but also
to the European Social Fund, which
contributed to longer-term structural changes
on labour markets. According to the
evaluation of the reaction of the ESF to the
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Brasoveanu Florica
University Ovidius of Constanta
Faculty of Law, Administrative Sciences and Sociology
floriordache@yahoo.com
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On the list of topics are situations of down by the Treaty of Rome and later in the
unemployment, illegal labor and within the Treaty on European Union, Article 49: Any
chapter on goods liberalization measures of European State which respects the principles
European standardization and eco-labeling set out in Article 6 (1) may apply to join the
are of great interest Also, not all goods can European Union. Article 6 (1) provides that
move freely in the Union, but only those that the Union is based on the principles of
meet the criteria set by European standards liberty, democracy, respect for human rights
and in addition we define and specify the and fundamental freedoms, and the rule of
prohibited goods in the single market. law, principles common to the Member
Restrictions on the free movement of States. [10]
goods, and any taxes or measures having The calendar of EU accession of each
equivalent effect to them are restricted. candidate country depends on the progress in
Starting from the great magnitude of the the accession procedure according to the
phenomenon of freedom of movement, from criteria defined in Copenhagen in 1993. [4]
its advantages and disadvantages, we believe a) stable institutions guaranteeing
that research and conclusions drawn from democracy, the rule of law, human rights and
this study will contribute to the knowledge of respect for and protection of minorities
field regulations both in theoretical and (political criterion) .
practical aspect. b) a market economy and capacity to cope
The date of January 1st , 2007 will with competitive pressure and market forces
remain in history as the date of the accession within the single internal market (economic
to the EU. In connection with this last criterion) .
statement, however, some clarifications are c) ability to assume the obligations of
necessary, Since I believe that Romania membership, in particular subscribe to the
belonged to the European history, geography, aims of political, economic and monetary
traditions and culture. policy.
Romania has been politically integrated Membership requires according to the
in the new Euro-world part of the club of the European Council in Madrid -1995 - not only
most select states. [8] the adoption of the acquis communautaire,
It remains to be seen how the regional but also creating and developing legal and
political and economic Europe map it will administrative structures necessary for the
look in the near future, how it will correct implementation of European policies.
cracks between large and small countries, Therefore, to the Copenhagen criteria, a 4th
how one can merge strong and weak states in criterion was added:
order to reach a common goal. d) administrative capacity to implement
We decide the answer, on the infallible the acquis communautaire.
land of Europe today. The question to Any citizen or EU citizen has the right to
consider is to know how to keep what move and to reside freely within the territory
Monnet proposed and we realized in the last of the Member States.
50 years, as the current political and Freedom of movement and residence may
economic situations require. be granted, in accordance with the Treaty
The EU is the successful laboratory of establishing the European Community, to
experiences regarding unification. We started third country nationals residing legally in a
from a collaboration between two rival Member State. (Charter of Fundamental
countries to speak today about 27 accessions Rights of the European Union - Article 45)
and many more in the near future. The first global consecration of the
Jean Monnet himself concluded that from principle of free movement of persons was
an economic union, states will want to go to a made by the Universal Declaration of Human
political one. History has proven that union Rights that states in Article 13 that everyone
between peoples remains close only if based has the right to freedom of movement and
on common values. residence within the borders of each state. In
The current European Union was the Europe this right was included in the Treaty
product of a conspiracy of elites with good of Rome which held abolition, as between
intentions and results. Member States, of obstacles to the free
Basic conditions for expansion were laid movement of persons, services and capital.
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Free movement of persons constitutes one happen only when today's governments will
of the fundamental freedoms guaranteed by facilitate access to information also in
Community law, an essential element of the deprived areas, because in fact, the situation
internal market and European citizenship, as is worrisome. Lack of information on the
defined by the Single European Act. [9] other hand leads to criminal behavior. [11]
The concept of “European citizenship”, To inform the public of free movement in
introduced by the Maastricht Treaty particular is not only sufficient but also
recognized the right of free movement and necessary in a democratic society. “Do you
residence within the EU citizens. All Member want to know the European Union?” remains
States have adopted, except Great Britain, in an invitation to all who wish to move freely
1989 the Social Charter of fundamental rights in the European spirit. That is why, even for
of workers and have subscribed to the Social these benefits, we should thank the founders
Chapter of the Maastricht Treaty, adopting of Europe of yesterday for the Europe today.
the 1994 Directive on the establishment of
Labour Councils in transnational firms. The 4. References
chapter on free movement of persons began
to be negotiated in 2002, in Brussels, at the [1] Constantin Anechitoae, Elements of
first Conference of Accession. international law. Course Notes, Ed. Bren,
Bucuresti, 2010.
3. Conclusions [2] Constantin Anechitoae, Geopolitics of marine
activity. Elements of maritime environment
The Conclusions we stopped at are few protection law.Course notes, Ed. Bren,
Bucuresti, 2005.
because there are some challenges in our
[3] Iordan Gheorghe Barbulescu, EU from
discussion topic and themes of thought, so economics to politics, Ed. Tritonic, Bucuresti,
that I conclude with the following questions 2005.
that deserve treatment in the future: [4] Stoica Camelia, Freedom of Movement in the
Where can I travel? Why do we need EU, Ed. Oscar Print, Bucuresti, 2001.
border acts? What services we can provide in [5] Fuerea Augustin, EU Manual , Editia a II-a,
the Union? May we set up a company in Ed. Universul Juridic, Bucuresti, 2006.
another European country? [6] Madalina Botina, Marilena Marin, „The
I hope that this study will make a modest Dissolution of a Marriage on the Territory of
contribution to disseminate European law an EU State, Between a Romanian Citizen
and The Citizen of That State. Territorial
among those interested in this very important
Competence” published in „Proceedings of
and contemporary issue. the 2nd International Conference on Law and
Considering the contents recorded in the Social Order”, vol. I, Constantza, 2012, pp.
study the following recommendations are 48-52;
required: to clarify the meaning of concepts [7] Marilena Marin, „Promotion and development
of freedom of movement not only through of the idea of legal obligation, the guarantee
rules, but also by implementing it to the mind and protection of human rights within the
of citizens, developing a strategy in favor of boundaries of the European Union ”, work
the European citizen in the sense of bringing submitted to the international conference
to their attention their Rights and freedoms in entitled "Current Issues in the global
economy," ninth edition, organized by the
a more practical and convenient manner such
Faculty of Economics, University Ovidius
as informing through the media. Constanta , 31.05.2012;
It is true that treaties, conventions and [8] Marilena Marin, „The Principle of
many other treats and regulations govern Contradiction in Civil Trials -
freedoms available to European citizens, but Communication, Persuasion, Manipulation”,
many people who generally know them, do written paper at the international conference
not know how to apply them. It is a vast entitled "Global Economy under Crisis"
range of people who either do not have organized by the Faculty of Economics,
access to the media or are disinterested. University Ovidius Constanta , 07.12.2012 –
I propose that theme of free movement of published in Annals of Ovidius Economics
Series, Vol XII, Part II, 2012;
goods, persons, services and capital no
[9] Cătălina Mititelu, The Human Rights and the
longer be on the table of officials but to be Social Protection of Vulnerable Individuals,
carefully debated by citizens. And this would in Journal of Danubius Studies and Research,
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Brasoveanu Florica
University Ovidius of Constanta
Faculty of Law, Administrative Sciences and Sociology
floriordache@yahoo.com
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informing of the decision, as required by law European law, constitutional law, civil and
" is required criminal, highlighting the complexity of the
Regulatory documents are issued by the administrative act, whether normative or
environmental protection authorities individual are obvious.
according to differentiated procedures Given that the with the environmental
established by special acts, depending on the protection at the moment the focus is on
environmental impact of projects and prevention of unwanted effects detrimental to
activities subject to authorization. natural and human components of the
Another important issue is public environment or the environment as a whole,
participation in decision-making, the proceedings prior authorization and the
environmental authorities have the obligation obligation to conduct a study about the
to provide information and public consequences of human actions on the
participation in environmental decision- environment and possible solutions to be
making, methods established by government taken to reduce or eliminate their effects, are
decision; public consultation is mandatory particularly effective legal means for the
for issuing regulatory acts proceedings. [1] achievement of immediate and long-term
Regarding the enforcement regime, it is objectives of sustainable development. [12]
by the civil, administrative and / or criminal The Authorization procedure is based on the
law, depending on the offense committed. principle of precaution at the environmental
[16] decision and prevention of environmental risks
Civilian regime covers damage caused by and producing damage. [3]
pollution. The damage is estimated by Part of the authorization procedure, the
measurable negative effect on human health evaluation of environmental impact is a
product, property, the environment as a process that identifies, describes and
whole and not on whether or not the fault of establishes direct and collateral, cumulative,
the operator. [14] principal and secondary effects of a project
Injury coverage is usually through over the health of people and environment.
monetary compensation, in nature repairs, [15]
being, in most cases, impossible. [4] There fore, the impact assessment
Contravention Liability is drawn when procedure is a process under national
one of the acts representing offenses, environmental law that requires that public
according to the ordinance is committed by and private projects with significant
the business owner environmental impact activities by their
Pollution problem and therefore protecting the nature, size or location, undergo a process of
environment should be approached in the broader assessing of these effects before the release of
context of future economic growth model . Like the environmental agreement. [17]
any factor of production, the environment has a The administrative act becomes
value and a price that must be recognized and administrative regulation (environmental
taken into consideration as such. If the main cause permit, authorization / integrated
of degradation of the ecosphere is related to the environmental permit, an environmental,
forms of production and consumption of the etc.), It is issued by the competent authorities
industrial type society, the solutions must be for environmental protection, for those
sought from economic positions, without interested in directly / indirectly; those it
diminishing the importance of other agents of addresses to become responsible to comply
social, moral, cultural nature and not least, the with measures imposed by it, in the
importance of resources offered by positive law. collaboration between the issuer and the
[13] receiver to achieve the goal "a Clean
In this context come the regulations on Romania".
prevention and integrated control in our country,
amended by Emergency Ordinance no. 152 of 3. Conclusions
10 November 2005 concerning integrated
pollution prevention and control. At the end we bring out a series of de lege
The interpenetration, dependence and ferenda proposals, aimed at improving the
completion of the items in different branches environmental protection process in out
of environmental law, administrative law, country
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Abstract
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and in 2011, a slightly higher one, of 5,682 the current transfers surplus. Trade deficit
million euro, situation supported by the reduction mitigated the negative impact of
improved trade balance due to rebound in Romanian workers abroad transfers on the
external demand and domestic demand current account in the context of deteriorating
contraction, but limited by the reducing of labor market in the euro area.
Table 1. The evolution of the current account deficit of the balance of payments in Romania,
2003-2011
2003 2004 2005 2006 2007 2008 2009 2010 2011
Current account (net)
-3,060 -5,099 -6,888 -10,156 -16,714 -16,157 -4,913 -5,518 -5,682
(mil. euro)
Goods and services -3,893 -5,536 -8,155 -11,755 -17,413 -18,450 -7,165 -7,196 -7,083
Income -1,195 -2,535 -2,326 -3,246 -4,127 -3,683 -1,902 -1,914 -2,336
Current transfers 2,028 2,972 3,593 4,845 4,826 5,976 4,154 3,592 3,737
GDP (mil. euro) 52,577 61,064 79,802 97,751 124,729 139,765 118,169 124,059 136,480
The share of current
-5.8 -8.4 -8.6 -10.4 -13.4 -11.6 -4.2 -4.4 -4.2
account deficit to GDP (%)
Source: NBR, Balance of payments and international investment position of Romania, Annual
Reports 2004-2011, Eurostat available data and own calculations
Figure 2. The evolution of the current account deficit of the balance of payments in Romania,
2003-2011
Source: Own calculations, using NBR and Eurostat available data
Although exports of goods and services in driven by lower domestic demand and also
Romania have increased at a rapid pace by exports decrease.
during 2003 and 2008, domestic demand In 2009 the sharp decline of GDP
grew even faster, a situation that has pushed continues simultaneously with rising
the current account deficit from 5.8 per cent unemployment and sharp rise in poverty.
of GDP in 2003 up to 13.4 per cent of GDP Both import and export of goods and services
in 2008. Economic activity declined decreased significantly in 2009 compared to
significantly since the fourth quarter of 2008. the previous year, and later in 2010 and 2011
Real GDP growth raised from an average of both indicators revert to an upward trend
9 per cent (from the previous quarter) in the (Table 2 and Figure 3). This has influenced
first three quarters of 2008 to 13 per cent in the current account deficit that declined again
the last quarter. The decline was mainly since 2009 until present.
Table 2. The evolution of export and import of goods and services in Romania, 2003-2011
2003 2004 2005 2006 2007 2008 2009 2010 2011
Export of goods and
18,284 21,883 26,401 31,553 36,547 42,532 36,170 44,043 52,332
services
Import of goods and
22,215 27,372 34,512 43,297 53,874 60,757 43,310 50,466 59,358
services
Source: Eurostat available data
As a result, the share of current account GDP of Romania in the period 2003-2011 is
deficit of balance of payments as a share of as follows:
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Although significant external deficits may in the form of external loans of the banking
be partially caused by the alignment of an and nonbanking sectors. In this context,
economy like Romania one, most of this Romania’s international investment position
magnitude raises questions of sustainability, deteriorated significantly from -24.7 per cent
especially if they persist for long periods. of GDP in 2003 to -60.5 per cent of GDP in
A significant part of the deficit was 2011.
financed by net inflows of other investments
Also, the net foreign direct investment per cent of GDP). Since 2008, amidst strong
recorded during 2003 and 2011 an oscillatory global and European imbalances, the trend of
evolving, reaching 9,059 million euro (9.3 net FDI in Romania was a considerable
per cent of GDP) in 2006, the year before reduction, as well as the share of net FDI in
Romania accession to EU and in 2008 a GDP, in 2011 their level being 1,920 million
maximum level of 9,496 million euro (6.8 euro, about 1.4 per cent of GDP.
The shock wave of the global crisis has agenda of governance reforms and public
provided certain economic imbalances and sector.
vulnerabilities increasingly large in Overheating of internal and external
Romanian economy, rooted in poor economic imbalances was reinforced by pro-cyclical
management and as a result of the unfinished nature of fiscal policy in Romania, with no
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medium-term orientation, and also by the All these have brought real challenges to
frequent public sector wage increases Romania’s monetary policy relatively
combined with an increase in employment in restrictive by raising the reserve requirement
this sector [6]. (or cash reserve ratio) by central bank
Result of fiscal consolidation efforts (National bank of Romania) and interest rates
during 2003 and 2005 that led to a reduction in an attempt to alleviate inflationary
in the budget deficit to 1.2 per cent of GDP pressures.
in 2005, it gradually increased again and Eliminating some administrative measures
reached 9 per cent of GDP in 2009. This to curb non-governmental credit growth led
reflects the strong crisis of public finances to a relaxation of credit policy, banks being
and demonstrates weak link between encouraged to develop their own lending
budgetary and development planning. Public policies given their profile and risk strategy.
expenditure grew at a rapid pace compared to Expansion of non-governmental credit to
fiscal revenues whose share in GDP has non-banking customers, amid increased
gradually deteriorated after Romania joined income of the population and also the relative
the EU, in the frame of the global crisis, easing credit conditions, was manifested not
situation unaccompanied by a corresponding only in 2007 but in the first half of next year,
increase in the quantity and quality of public local money market situation became tense
services. since the second half of 2008, especially in
august, in the frame of U.S. problems
3. The evolution of the banking system in expansion in the world economy.
Romania Romania’s financial system dominated by
commercial banks played an important role
Financial markets have been seriously in the overheating of the internal market.
affected by the global crisis and economic During 2003 and 2007, total system assets
recession, stock market losing 65 per cent of have doubled, from about 36 per cent to 74
its peak value, in august 2008. As financial per cent of GDP, banking sector having 83
market conditions worsened, fiscal deficit per cent of total assets. Dominance of
financing focused more on short maturities. foreign-owned banks in the Romanian system
Also the rapid deterioration of Romania will increase the unfavorable situation due to
macro environment created risks to financial further turmoil in international financial
and banking stability. markets (Table 5).
Amid the uncertainty caused by the global the private sector decreased in intensity, loan
crisis and risk aversion of banks, lending to balance variation reaching into negative
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values, despite monetary policy measures also due to the implementation of new
taken by the central bank. Thus, from the regulations imposed by the central bank on
second half of 2008, the lending process is lending to individuals [5].
restricted considerably, especially in retail, Deteriorating loan portfolio quality
credit became less accessible and more (Figure 4), mainly due to economic recession
expensive and the deposit created rate is and rising unemployment and to the high
reduced. It was, on the one hand, the level of interest charged by banks, increases
Romanian banking sector response to the the vulnerability of the Romanian banking
international financial market uncertainties at system. However, banks have sufficient own
the time, leading to a limitation of funding resources to cover any unexpected losses
for subsidiaries in Romania from foreign from credit risk remained uncovered by the
parent banks, and therefore reduce the rating provisions made and realization of collateral
of the country, and on the other hand was to the borrowers.
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5. References
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Burciu Andreea
Bucharest University of Economic Studies, Department of Statistics and Econometrics
andreea.burciu@gmail.com
Ardelean Andreea
Bucharest University of Economic Studies, Department of Statistics and Econometrics
ardelean.andreea@yahoo.com
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Table 1. Brain drain ranking and agriculture level (rank). The data is provided by
proportion in EU 15 countries EUROSTAT and Global Competitiveness
Index, and refers to the year 2011.
Brain Firstly, we registered a KMO index of
Drain 0.739, appropriate for performing a Principal
Agriculture Component Analysis. In the correlation
Country Ranking
(%GDP) matrix of the standardized variables we can
(out of
142) notice both positive and negative correlations
United with some stronger than others. The
4 1 Communalities table reveals the fact that 4
Kingdom
Sweden 6 2 out of 7 are relevant for the common factors
The having a value over 0.782. The Scree Plot
11 2 and the Total Variance Explained Table show
Netherlands
Finland 13 3 the fact that there are only two components
Luxemburg 16 0 needed in order to explain all the variables.
Belgium 17 1
Austria 27 2 Figure 1. Scree Plot
Denmark 29 1
Germany 31 1
Ireland 34 1
France 43 2
Spain 54 3
Portugal 80 2
Italy 105 2
Greece 119 3
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because the more the population is qualified, remittances (REM) sent by Romanian
the more competitive the country becomes. employees and workers living in the EU-15
countries. The following table shows the
4. Remittances from EU-15 to Romania level of remittances based on Eurostat data
received by Romania in the last years:
In the second part of the paper, we shall
analyze the connection between the level of
100%
90% Italy
80% Spain
70% Greece
60%
Percents
United Kingdom
50%
Netherlands
40%
30% Luxembourg
20% France
10% Germany
0% Denmark
2007 2008 2009 2010 2011
Belgium
Years
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REM and the level of WAGES is positive, as countries. On the other hand, the EU-15
when the wages are higher, the level of countries progress with the important
remittance is higher. Given that the high- contribution of high skilled professionals that
skilled immigrants have better wages and the immigrate in search for a better life. So the
lower skilled are opposite, we can conclude difference between the sums of money
the fact that the higher skilled immigrants invested by the Eastern European countries in
send back to Romania a larger sum of teaching that workforce and the remittance
money. they receive may not be so large. Some of the
Moreover, the correlation between REM countries, namely Greece, Italy, Spain and
(the level of remittances) and the Portugal rely on low skilled immigrants, but
unemployment rate is negative. We can add given their country profile, this type of
the fact that the unemployment rate for the immigrants are suitable for enabling their
high-skilled professionals is lower than the advancement in agriculture and
one for low- skilled therefore, given all these constructions, for example. All in all, it is
information, the qualified individuals have a important for the Eastern European countries,
better remittance rate than the under namely the EU-12, to continue to develop, to
qualified. Last, but not least, the connection increase their economies and to provide for
between the remittances and the GDP per their workforce a suitable environment so
capita variation in the EU-15 countries is that they remain in their home country. At
positively correlated to the variation of the same time, the globalization trend will
remittances. So, they vary in the same way. enable the migration to continue whatsoever
Except from the model presented, our and so, the remittances will continue to be a
paper wanted to see if we can find a subject for research and debate.
connection between the clusters we
previously analyzed and the level of 6. References
remittances send from that certain clusters or
countries. The econometric model was the [1] Boboc C., Driouchi A., Titan E.,
same and the period considered was 2007- Interrelations between Education, Health and
2011, because of lack of previous data. Still, Economic Development in European
countries like Austria, Finland, Sweden and Countries, Economies of Central and Eastern
Europe: Covergence, Opportunities and
Portugal have had brakes in time series and
Challenges, Tallinn School of Economics and
data unavailable regarding the remittance Business Administration, 14-16 iunie 2009,
sent to Romania, therefore it was impossible Tallinn – Estonia.
to consider working in the two clusters that [2] Boboc C., Ţiţan,E., Ghiţă, S. – „Labour
emerged at paragraph 3. We have also tried Market Inequalities and Economic
to work only with a few countries from each Development”, în Revista Economic
cluster, but even though the correlation was Computation and Economic Cybernetics
strong, the model had a p-value that was not Studies and Research, nr. 4/2012, vol. 46, p.
small enough to validate the alternate 49-64
hypothesis. [3] Boboc C., Ţiţan E., Todose D., „International
migration – challenges to European Union”,
în volumul The international economic
5. Conclusions conference: Romania within the E.U.:
opportunities, requirements and
In this paper, the authors have tried to perspectives”, volume I, Lucian Blaga
indicate the way the EU-15 countries divide University of Sibiu, The Faculty of Economic
into countries that attract high skilled Sciences, Lucian Blaga University Publishing
individuals versus low skilled individuals. House, 10-11 may 2007.
Moreover, we analyzed the connection [4] Ghiţă S., Voineagu V., Ţiţan E., Boboc C.,
between the sums of money as remittances Todose D. –„Brain drain phenomena in
sent home by Romanian citizens living in the Romania – possibilities of econometrical
modeling”, în Revista Economic Computation
EU-15 countries. On the one hand, the
and Economic Cybernetics Studies and
international debate over the impact of Research, nr. 3-4/2007, vol. 41, p. 33-42
remittances over the receiving countries is [5] Ghiţă S., „A Characterization of the
very vast and it is obvious that they Migration Phenomenon among Young
contribute to the development of that certain Romanian Specialists”, publicata in
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Carp Lenuţa
„Alexandru Ioan Cuza” University of Iasi
lenutza_carp@yahoo.com
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movement of capitals – human, commercial not able to guarantee an active role of the
and financial. These will led their economies authorities in guiding their economies.
to trade liberalisation between EU and The attraction of an increased volume of
CEEC, stimulating the increase of FDI has become one of the main objectives
international volume of exports and imports. of national policy, the policy makers focussig
on liberalizing their economies. FDI are
Figure 3. Evolution of the share of trade in widely recognized for their positive
GDP in CEECs during 1990 – 2012 externalities generated in the economy,
stimulating the economies to make
improvements in the political stability,
reflected both in higher volume of foreign
flows and superior economic growth rates.
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Abstract regions.
Every seven years regional policy is
European funds have not made enough reviewed by the EU institutions. Theories,
progress, the sustainable absorption being concepts, models used, field specialists,
thus a challenge, the absorption rates being procedures, participants, involved agencies,
very low with real problems in the authorities, the degree of involvement in
implementation of approved projects. The promoting programs, insufficient access to
internal absorption rate at the end of 2012 funds have created confusions leading to a
was 16.23% and the external absorption rate decreased level regarding absorption of
(money received the European Commission structural funds. Through accomplished
in Romania) of 6.3%. studies, through reports, statistics, samples,
case studies, questionnaires, the conclusion
Keywords: funds, budget, programs, was - low absorption in terms of attracting
absorption, payments. structural funds in Romania.
J.E.L. Code.: C13, C15, F36
2. European funds
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Constantin Sanda
Transilvania University of Brasov
Faculty of Economic Sciences and Business Administration
sanda.constantin@unitbv.ro
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euro
24000
2. Analyses 23500
23000
The GDP/person in Romania and in the
European Union evolution is presented in 22500
Table 1 [1]: 2007 2008 2009 2010 2011
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15 2009.
10 In the last year of analyze it was a very
5 small increase, with only 0,08%.
0 Also, in the last year 2011 we can observe
2007 2008 2009 2010 2011 that comparison with the first year of
analyze, the percent of investment by
Investment by institutional sector-%- institutional sector in GDP decrease with
of GDP 2,69%.
Data source: EUROSTAT 3. Conclusion
We can observe that the percent of We can observe that GDP in Romania and
investment by institutional sector in GDP in in the European Union had different
Romania increase in 2008 comparison with evolution.
2007 with 1,72%. In Romania, the GDP/person fluctuated
In the next two years it was registered a during the analyzed period, but, in the last
decrease with 7,49% in 2009 comparison year we can see that the indicator level
with 2008 and with 0,47% in 2010 increase comparison with the first year of
comparison with the previous year 2009. analyze.
In the last year of analyze 2011 the In the European Union was constant for
percent of investment by institutional sector the first two years, than registered a decrease
in GDP start to increase, meaning with 0,6% for the following two years and in the last
comparison with the previous year 2010. year of analyze increase and rich to
We can see also that in the last year of aproximately the same value as in the firs
analyze the percent of investment by year of analyze.
institutional sector in GDP decrease The other indicator took into
dramatically, with 5,64%. consideration, investment by institutional
In the European Union the situation is not sector -%- of gross domestic product had
necessarily the same, as we can se in Figure almost the same trend also in Romania and in
no 4: the European Union, meaning that the
indicator decrease for the firs years but
Figure 4. Investment by institutional registered an increase in the last year.
sector -%- of GDP in EU We have to specify that the indicator did
not reach the first year level.
In the same time we have to specify also,
22
that even if the level of investment by
21 institutional sector -%- of gross domestic
20 product was higher in Romenia than in the
%
19
European Union as a percent, it was
determined to a different level of GDP.
18
In the eurostat newsreales[2],euro
17 indicators published on 6 of march 2013 it is
2007 2008 2009 2010 2011 specify thatt the EU 27 external current
account recorded a surplus of 34.1 billion
Investment by institutional sector-%-of euro (1.0% of GDP) in the fourth quarter of
GDP
2012 compared with a surplus of 24.7
Data source: EUROSTAT bn(0.8% of GDP) in the fourth quarter of
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2011, according to first estimates from area and by 0.6% in the EU27in the fourth
Eurostat, the statistical office of the European quarter of 2012, after -0.6% and -0.4%
Union.In the fourth quarter of 2012, respectively in the previous quarter. During
compared with the fourth quarter of 2011, the the fourth quarter of 2012, GDP in the United
deficit of the goods account turned into a States was stable compared with the previous
surplus (+5.1bn euro compared with - quarter (after +0.8% in the third quarter of
15.6bn),while the surplus of the services 2012). Compared with the same quarter of
account slightly increased(+36.9 bn the previous year, GDP rose by 1.6% in the
compared with +35.7bn)and the deficit of the United States (after +2.6% in the previous
current transfers account dropped (-19.1 bn quarter). Over the whole year 2012, GDP fell
compared with-22.8 bn). The surplus of the by 0.6% in the euro areaand by 0.3% in the
income account fell (+11.2bn compared with EU27.
+27.4bn). On 6-th of march the same year
2013 in the same publication it was specify 4. References
that GDP fell by 0.6% in the euro area
(EU17) and by 0.5% in the EU27 during the [1] www.eurostat
fourth quarter of 2012, compared with the [2] Epp.eurostat.ec.europa.eu/cache/ITY_PUBLI
previous quarter, according to second C/2-08032013
estimates published by Eurostat, the [3] Lupsa-Tataru, Dana Adriana, Convergenta
dintre conceptele de managementul
statistical office of the European Union. In
cunostintelor si e-learning, Revista
the third quarter of 2012, growth rates were - Economia, vol. 11, nr 2, p. 59-81, 2008,
0.1% and +0.1% respectively. ISSN: 1454-0320
Compared with the same quarter of the
previous year, GDP fell by 0.9% in the euro
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Criste Adina
“Victor Slăvescu” Centre for Financial and Monetary Research, Romanian Academy
criste.adina@gmail.com
Lupu Iulia
“Victor Slăvescu” Centre for Financial and Monetary Research, Romanian Academy
iulia.s.lupu@gmail.com
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by the developments concerning several the countries which have implemented the
relevant macroeconomic indicators, taking strongest austerity measures have also
into account the nominal GDP growth rate, recorded the strongest declines of economic
the general government balance, the activity reflected by GDP [5]. This idea is
employment rate, and also the unemployment sustained by empirical evidence.
rate. The analysis is performed based on
Eurostat and Ameco data, for several Figure No. 2.The relation between the
countries from the euro area: Germany, nominal GDP and the fiscal deficit
France, Austria, Italy, Spain, Greece, Ireland,
and Portugal.
The uncertainty shock and the persistent
sovereign debt crisis, which reflect the high
deleveraging needs in the public and private
sector, have engendered a decrease of the
economic activity in most of the European
countries, cutting back on spending,
investment and employment for households
and corporations.
In Figure No. 1, we illustrate the
differences between euro area countries, Source: Authors’ calculations based on Eurostat
concerning the dynamics of employment rate, Data; Ameco Data, for 2012 concerning the fiscal
measured as the percentage change for 2011 deficit
Note: DE – Germany; AU – Austria; FR –
against 2008. Admittedly, the peripheral
France; IT – Italy; PT – Portugal; ES - Spain; EL
countries have been the most affected, while - Greece; IE - Ireland
Germany and Austria recorded positive
changes.
As it turned out (Figure No. 2), Greece,
Figure No. 1. Employment rate in several Portugal, and Ireland have substantially
euro area countries reduced their deficits since 2009, despite the
fact that their economies were stagnant or
contracting. The data shows that there is a
negative correlation between the intensity of
the austerity measures (considered here as a
reflection of the differences between the
budget deficit level in 2012 and those
corresponding for the 2009) and the
economic performance, because the austerity
measures implemented in these countries
have depressed their economies: the more is
decreasing the budget deficit, the more is
Source: Eurostat Data; authors’ calculations decreasing the economic activity.
Note: DE – Germany; AU – Austria; FR – Paul Krugman said that the austerity is a
France; IT – Italy; PT – Portugal; ES - Spain; EL bad policy when the interest rate is near zero
- Greece; IE - Ireland lower bound, the economy enters in a
liquidity trap and thus the narrowing effects
This picture strengthens the idea that the of the fiscal consolidation on the demand
German solution regarding the euro debt can’t be offset by a monetary expansion [8].
crisis, based on the application of the The large fiscal consolidation didn’t increase
austerity measures has failed. Even the the confidence and economic growth, but has
European Commission noticed that such a deepened the recession in the peripheral
policy has deepened the economic recession, countries.
mainly in the peripheral countries [6]. The severe austerity programs introduced
De Grauwe and Ji argue that there is a in the Southern Eurozone countries since
strong negative correlation between the 2011, which have destroyed the social
austerity programmes and the GDP growth: protection and safety nets, engender the risk
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of social tensions in Europe, between since it does not affect just one person, but
countries and between social classes, with a the other family members and relatives, and
direct repercussion on the viability of the the consequences can be catastrophic in the
European project. social and psychological fields.
The economic recession is reflected not The European crisis and the austerity
only by the GDP growth rate contraction, but measures promoted by Germany have
also by the increasing of the unemployment amplified the social tensions, engendering
rate. strong protests among people, and even the
Figure No. 3 illustrates the dramatic developing of several radical groupings. For
evolution of the unemployment rate in 2012 example, in Italy have emerged radical
against 2009, in Greece, with the largest parties, which opposed to the austerity
increasing, above 150%. Large numbers have program implementation, and Greece has
been recorded in Portugal, Spain and Italy. already developed a radical right movement.
The result of these changes is also reflected Thus, the unemployment crisis is a political
by the level of the unemployment rate: Spain one, and it could affect, through social and
and Greece are the most affected countries, political issues, the course of the monetary
with levels of this indicator near 25%, in integration process in Europe.
2012. At the opposite side, Germany and At the European level, the current major
Austria have improved the unemployment priority should be dealing with the demand
rate. led recession in some European countries,
not with their budgetary position.
Figure No. 3. The evolution of unemployment
rate in several euro area countries 3. The policy crisis implications upon the
European project viability
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hand, countries that are financially the European countries undermines the
“stronger”, considered that the “weaker” political power of the governments to pursue
countries should bear the debt burden by the required policies for managing the
implementing tightening policies. On the financial system. It is hard to imagine a
other hand, the “weaker” countries deemed common European policy at this moment,
that the developed economies of Europe have because the differences between countries on
to bear the debt burden by supporting further the unemployment rates make difficult the
lending activity, although the risk of default governance by common policies.
has increased. This difference has kept The failures concerning the eurozone
tensions between countries creating a vicious governance, caused by the global financial
circle: the European crisis has been fuelled and economic crisis, and amplified by the
by the political tensions which in turn has sovereign debt crisis and by the derived
deepened the crisis. economic downturn, have revived the
Besides the vision regarding the way of importance of the political will, which was,
sharing the crisis burden between countries, at the beginning, the fundament for the single
if we considered the burden sharing between currency project.
social classes, it would arise the conflict There is a trend for a chain-exhibiting
between the middle and the lower social occurrence: the national economic problems,
class, on the one side, and the wealthy social which are undoubtedly a priority for the
class, on the other side. Namely, the middle national authorities, which are weakening the
and lower social class should bear the crisis national motivation for remaining in the euro
burden by reducing the public expenditures area, consequently dragging along a feeling
which they benefit, or the debt burden should of distrust on the idea of common
be assimilated by the "elite" of the society, governance in this union.
increasing its taxes and regulations [7]. Basically, the European crisis is threefold:
The conditions induced by the current the sovereign debt crisis, the unemployment
crisis faced by the euro area are a test for the crisis induced by the economic downturn,
sustainability of the monetary integration in and the crisis of countries’ inability to find
Europe. The political crisis is revealed by the common solutions.
tensions arising between the euro area As Friedman [7] signals, the problem of
countries and by the reactions of other solving the European crisis is not the lack of
countries concerning the policy pursued by solutions and ideas, but the lack of a common
the developed European countries. Such a agreement about who will pay,
situation questions the development of a geographically and socially, the price. The
European political community, which should tensions between countries and those
be extended beyond the institutional between the social classes are engendered by
framework. If the tensions between countries the lack of the authentic common solutions.
are increasing, then the European common The economic and social burdens,
institutions will lose their legitimacy and the unequally distributed across countries and
European Union member states will begin to also across social classes, represent an
formulate their own internal and external important threat facing the European Union
policies. in the near future. The test for Europe is not
the sovereign debt, but the social problems
4. Conclusions management.
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Damian Monica
„Ovidius‟ University of Constanța, Faculty of Economic Sciences
m0nicadamian@yahoo.com
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(NBR), the paper concentrating itself upon compatible with the Maastricht price stability
the challenges of the monetary policy of the criteria is being imposed, so that fluctuation
NBR which result from the Maastricht margins provided in the Exchange Rate
convergence criteria. Mechanism II are respected. In this sense, the
conflict between the two objectives
2.Romania's participation in the Exchange represents a challenge for the monetary
Rate Mechanism II and the implication policy of the NBR.
upon the monetary policy The increase of the nominal interest rate
in order to alleviate the inflationary pressures
The adoption of the euro currency by can determine an increase of the interest rate
Romania is conditioned by the participation differential vis-à-vis the euro area which
in the Exchange Rate Mechanism II for at encourages the speculative capital inflow
least two years, being considered the ante- and, therefore, the leu currency is appreciated
chamber of the integration to the euro area. against the European currency.
According to the 2012-2015 Convergence Although the nominal appreciation has a
Program, the commitment to adopt the Euro positive impact upon the inflation rate, taking
in 2015 is maintained, the moment of into consideration that the imported goods
Romania's entry into ERM II not being with the highest average in the consumer’s
specified. basket (foods) is very large, the capital
According to the European Union's inflow have negative effects upon the
Treaty, during the Exchange Rate inflation target through the liquidities
Mechanism II a country can not adopt the increase. Also, a nominal appreciation too
following monetary regimes: the fully large on a short–term leads to losing the
floating exchange rates, the crawling and external competitiveness and therefore, to the
anchored pegs, other than the euro. increase of the current account deficit.
During the participation in the Exchange In the June 2009 - May 2011 period, the
Rate Mechanism II, Romania is obliged, leu exchange rate against the euro has
according to the Maastricht Treaty, to respect fluctuated between -1.94% and 2.98%
the exchange rate fluctuation band of ± 15%. compared to the reference level (the month of
Consequently, the strict inflation targeting is May 2009), indicating a high stability of the
no longer viable, but a more flexible form is national currency, facilitating the fixation of
necessary to ensure the fulfilment of the two the central parity in the ERM II entry
criteria: the price stability and exchange rate moment.
criteria. The nominal appreciation of the national
This flexible variant of the inflation currency during the ERM II can also be the
targeting includes a strategy based on a result of the manifestation of the Balassa-
single instrument, examined by Jonas [9] and Samuelson effect, the real appreciation
a strategy with two instruments, proposed by realizing itself through the exchange rate
Orlowski and Rybinski [13].The first strategy and, less through the inflation differential.
is based on the use of the interest rate for the The interventions on the foreign exchange
realization of the two objectives, while market (currency purchases and the
Orlowski and Rybinski [13] propose the sterilization of the liquidity in the national
realization of the inflation target through the currency) can be used for the prevention of
adjustment of the interest rate and the the appreciation of the national currency, but
stabilization of the exchange rate through this option is considered to be inefficient,
interventions on the foreign exchange because it does not permit the diminishment
market. of the interest rate, being an incentive for the
According to the European Council's capital inflow. In case the exchange rate isn't
Resolution in 1997, during the ERM II the in line with the equilibrium exchange rate,
exchange rate stability is subordinated to the despite the effectuated interventions, the
primary objective of the monetary policy, the central parity will be revalued according
price stability being a condition prior for the with the state of the economy.
currency stability. Thus, the necessity of the In our opinion, in order to realize the
realization of the inflation rate level exchange rate stability objective, a
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combination of the two methods because the catching-up process will also
aforementioned is necessary, using with continue after this moment, which means that
priority the interest rate. We consider that in order to fulfill the inflation criteria, the
the appeal to the intervention operations on nominal appreciation of the leu is necessary.
the foreign exchange market should be On the other hand, in the condition of the
effectuated in case the reduction of the liberalization of the capital flows, an
interest rate has not been sufficient to exchange rate requires the loss of the
alleviate the appreciation of national monetary autonomy and, implicitly, the
currency. control of the inflation. Therefore, we
A second situation which might appear consider that flexible inflation targeting
during the ERM II refers to the depreciation aimed the fulfilling of both conflicting
of the leu and the risk of breaking the inferior criteria is appropriate for Romania during
limit of the variation interval, an increase of the participation in the Exchange Rate
the interest rate being necessary then. In this Mechanism II.
case the exchange rate stability is in Borowski et.al. [2] has examined two
concordance with the inflation target, but the ways to reduce the inflation rate during the
restrictiveness of the monetary policy reduces participation in the Exchange Rate
the aggregate demand with negative effect on Mechanism II in Poland: the increase of the
the economic growth. interest rate and the nominal appreciation.
The low level of the interest rates is not a The results of the simulation show that the
sufficient condition to maintain the exchange impact of a shock of the exchange rate is
rate stability. For instance, the stability of the produced after eight months, while in the
Czech koruna in the recent years isn’t only case of a shock of the interest rate the effect
due to the low interest rate level, but also appears after sixteen months. The reduction
because of national bank’s credibility to of the inflation rate by 0.5 percentage points
maintain the inflation rate at a low level. can be realized either through the increase of
Thus, the credibility of the national bank the interest rate by 1% or through the
is a necessary condition for the fulfilment of appreciation of the national currency by
the two nominal convergence criteria: the 2.5%. The author concludes that the interest
inflation and the exchange rate. We consider rate policy is less efficient during the ERM
that the National Bank of Romania must II.
strive in order to win the credibility through In our opinion, the reduction of the
the fulfilment of the proposed inflation target. inflation rate during the ERM II will be done
In the opinion of the governor of the in three ways:
NBR, after the ERM II entry it is possible to 1. If there are inflationary pressures
maintain the direct inflation targeting or the provoked by supply-side factors (the
adoption of the exchange rate targeting, the hike in the oil price), their
second variant being used as to not generate moderation will be realized through
conflicts between objectives, considering the the increase of the interest rate in
increase of the degree of openness order to anchor the inflationary
(approximately 66% in the year 2010), the expectations.
exchange rate becoming the main monetary 2. In case of the price increase are
transmission channel. His opinion is backed caused by demand-side factors, the
up by Hungary’s experience, which in the inflation reduction will be realized
year 2001 it has adopted the direct inflation through raising minimum reserve
targeting strategy and a mechanism similar requirement, the application of a
with the ERM II (with a fluctuation band of preventive credit policy in the case of
±15% around the central parity). In order to consumption credits and/or the
protect the rate’s fluctuation band, the restrictiveness of the fiscal policy,
National Bank of Hungary had to sacrifice these measures not being
the inflation target in the years 2003 – 2004 accompanied by the interest rates
[8]. increase. Their maintenance at a low
We consider that the exchange rate level is necessary for the fulfilment
targeting isn’t viable for the ERM II entry, of the other convergence criteria.
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3. Although the depreciation of the leu deficit is forbidden. In case the financing is
by 15% is permitted, we consider realized through loans, the budget deficit
that the nominal appreciation is does not have an inflationary character. On
necessary for the fulfilment of the the contrary, the loans from commercial
inflation criteria. This necessity is banks restrict the liquidity in the bank system
imposed, on the one hand by the real and, therefore, determine the increase of the
appreciation of the national currency interest rate.
as a result of the real convergence The negative impact of the fiscal deficit
process and on the other hand, the upon the inflation rate highlights the
exchange rate variations reflect necessity of the fiscal consolidation, as it is
themselves faster on the prices, presented in the convergence criteria of the
compared with the interest rate, in Maastricht Treaty. But Vierra [16]
which case the monetary impulses investigating the inflationary effects of the
transmit themselves with a certain budget deficit in six countries of the
delay. In the case of the appearance European Union suggests that the
of the too strong appreciation or relationship between the two variables is
depreciation of the leu, the NBR will inverted in the case of a majority of studied
intervene on the foreign exchange countries, meaning that the inflation leads to
market, so that the national currency the increase of the deficit. The lack of
to be appreciated by a few empirical evidence concerning the
percentage points, a favourable monetisation of the fiscal deficit is explained
situation for the two nominal by the change of objectives of the monetary
convergence criteria. policies in the beginning of the eighties (the
entry in the European Monetary System)
3.The coordination of the monetary policy towards the price stability and the fiscal
with the fiscal policy in the context of the consolidation and the higher independence of
fulfilment of the convergence criteria the central banks.
The reduction of the budgetary deficit is
The accession to the euro area implies a realized through the application of a
mix of economic policies which will ensure restrictive monetary policy, through the
the fulfilment of the five nominal increase of fiscality and/or the reduction of
convergence criteria provided in the public expenditure, with effect upon the
Maastricht Treaty. The monetary policy can aggregate demand, in the sense of its
not ensure the price stability without the reduction and, implicitly, upon the inflation
support of the other components of the rate. But we must specify that the increase of
macroeconomic policy – the fiscal policy and the indirect taxes (VAT, excises), as a
the income policy. In the period prior to the measurement for the reduction of the budget
entry in the euro area, the fiscal policy will deficit, have a negative influence upon the
have a crucial role in the maintenance of the price consumer and, as a consequence, the
economic stability. impossibility of the fulfilment of the inflation
Empirical studies demonstrate the criteria.
relationship between the fiscal deficit and In the opposition, the direct tax increase
inflation. Thus, Catão and Terrones [4], reduces the income and decreases, as a result,
Fisher, Sahay and Vegh [7] have shown that the inflationary pressures, but this measure
there’s a strong relationship between the isn’t always efficient. In case the population
fiscal deficit and inflation in the countries doesn’t pay its fiscal obligations, the sums
with a high inflation and developing which represent unpaid taxes can be destined
countries, and it rules out this relationship in for consumption.
the case of developed countries and countries In our opinion, in order to fulfil of the two
with a low inflation. This link is explained aforementioned objectives, the adjustment of
through the fact that the budget deficit is the budget deficit must be based on the
financed through monetary creation – reduction of budget expenditure, because the
seigniorage. According to the Maastricht tax increase can have an inflationary
Treaty, the monetary finance of the budget character.
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A successful fiscal consolidation must be the disinflationary effect can disappear in the
based on the reduction of the public moment of the evaluation of the convergence
consumption and not on the diminishment of criteria. We consider that the restrictive fiscal
public investments which can beneficial for policy can be applied in any given moment
the long term economic growth. The before the ERM II entry, because the
experience of the new member states of the reduction of the inflation is done in a
EMU shows that the decrease of the inflation sustainable way, according to the Maastricht
rate through the promotion of a restrictive Treaty, which means that if the level of the
fiscal policy has permitted the relaxation of inflation rate was reduced before the moment
the monetary policy and consequently, the of the evaluation, it will be maintained even
convergence of the interest rates. after that moment.
The reduction of the aggregate demand, as For the fulfilment of the inflation target, a
a result of the tightening of the fiscal policy, balanced income policy is also necessary to
determines the diminishment of the money ensure the correlation between the wages in
demand and, therefore, the decrease of the the public sector with the ones in the private
interest rates, thus eliminating the incentive sector and with the labour productivity
for the capital inflow [17]. In the author’s evolution. The wages increases in a rhythm
opinion, the restrictiveness of the fiscal superior to labour productivity generates the
policy through the increase of income can unit labour costs increase, which will have
determine the extension of the fiscal effects on consumer prices.
expenditure, the effect being null. On the We consider that the coordination of the
other hand, the decrease of expenditure in a monetary policy with the fiscal policy is
strong economy isn’t a very popular measure. essential for the fulfilment of both the
The empirical studies highlight the bi- inflation criteria and the deficit criteria. The
univocal relationship between inflation and objective of the fiscal policy is to reduce the
the increase of public expenditure, Ezirim et. budget expenditure in order to reduce the
el. [5] suggesting the fact that the fiscal budget deficit and to alleviate the aggregate
policy is an appropriate instrument for demand, while the objective of the monetary
combating inflation in the United States. In policy is represented by the reduction of the
order to reduce the inflation, the government interest rate with the purpose of fulfilling the
should properly reduce the level of public fiscal and exchange rate stability criteria.
expenditure.
The interest rates increase amid the 4. Conclusions
inflationary expectations exercise negative
influences upon the budget deficit through The monetary policy strategy which will
the increase of expenditure with the interest be lead by the NBR during the participation
afferent to the public debt. Thus, during the in the ERM II will be directed towards price
ERM II the monetary policy must reduce the stability, as a main objective, with the
interest rate, necessary for the reduction of simultaneously maintenance of the exchange
the budget deficit and the stability of the rate stability.
exchange rate, the inflationary shocks being Romania’s participation in the Exchange
absorbed by the fiscal policy. Rate Mechanism II has implications on the
Borowski and Brzoza-Brzezina [3] monetary policy: on the one hand it must
suggest as an optimal moment for the reduce the inflation rate, while on the other
restrictiveness of the fiscal policy – the hand it must respect the provided fluctuation
period prior to the entry in the ERM II. In band. Thus, the reduction of the interest rate
this case, the fulfilment of the budget deficit differential is imposed in order to ensure the
criteria, the credibility of the exchange rate exchange rate stability, but this measure isn’t
policy and the reduction of the inflation rate in concordance with the inflation criteria.
at the proper moment (in the middle of the Thus, the diminishment of the interest rate
ERM II period) are being assured. The author will be done by monitoring the
specifies that the early application of a approximately constant maintenance of its
restrictive fiscal policy does not assure the real level. In case the interest rate differential
fulfilment of the inflation criteria, because maintains itself at a high level, stimulating,
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thus, the speculative capital inflow, the [14] Orlowski, L., „Monetary Policy and Inflation
central bank intervenes in order to avoid a in the European Monetary Union –
strong appreciation of the leu. Perspectives and Lessons‟,Paper to the
symposium A new humanism for Europe:
The role of universities, Rome, 2007
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[9] Jonas, J., „Euro Adoption and Maastricht
Criteria: Rules or Discretion?‟, Center for
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[11] Magazzino, C. „The Nexus between Public
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[12] Ogwuru, H., „Public Expenditure and
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Dârzan Mihaela
Romanian - American University
mihaela.darzan@yahoo.com
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Figure 2. Productivity per hour worked Figure 3. Disposable income per capita
convergence convergence
5. Conclusions
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Ghita Simona
Academy of Economic Studies in Bucharest - Department of Statistics and Econometrics
simona.ghita@csie.ase.ro
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Source: made by the authors, based on data Figure 2. Total R&D Expenditure (% of
available on EUROSTAT Database. GDP)
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%
0
-2 decreases in intensity from the previous
-2
19 7
19 8
20 9
20 0
20 1
20 2
20 3
20 4
20 5
20 6
20 7
20 8
20 9
10
period. It is a period of some stability in the
9
9
9
0
0
0
0
0
0
0
0
0
0
-3
19
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Source: made by the authors, based on data Finally, in the last sequence of time (2007-
available on EUROSTAT Database. 2010) the meaning of the correlation between
the two indicators has changed, becoming a
6. Conclusions. very strong and positive correlation.
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Herghiligiu Roxana
Alexandru Ioan Cuza University of Iasi
Faculty of Economics and Business Administration
roxana_herghiligiu@yahoo.com
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Budapest Hitel- és - - - - - -
Fejlesztési Bank
Calyon Bank - - - - - -
CIB Bank 1 - - - - -
Citibank - - - - - -
Commerzbank - - - - - -
Credigen Bank - - - - - -
Deutsche Bank - - - - - -
Erste Bank Hungary 1 1 - - - 1
FHB Bank 1 - - - - -
Hanwha Bank - - - - - -
ING Bank 1 - - - - -
KDB Bank - - - - - -
Kereskedelmi és 1 - - - - -
Hitelbank
Kinizsi Bank - - - - - -
MagNet Bank - - - - - -
Magyar Cetelem Bank - - - - - -
Magyar - - - - - -
Takarékszövetkezeti
Bank
Magyarországi - - - - - -
Volsksbank
Merkantil Váltó és - - - - - -
Vagyonbefektető Bank
MKB Bank 1 - - - - -
Oberbank 1 1 - - - -
OTP Bank 1 - - - - -
Porsche Bank Hungaria - - - - - -
Raiffeisen Bank - - - - - -
Sopron Bank Burgenland - - - - - -
UniCredit Bank Hungary - - - - - -
WestLB Hungaria Bank - - - - - -
Table 3. Summery
Disclosure Item % percentage
Risk Management Framework 18.18%
Operational risk definition 27.27%
Establishing operational risk Committee 18.18%
Policies, process and procedures 6.06%
Operational Management Departement 6.06%
Operational risk capital charge as % of 15.15%
minimum regulatory capital
Operational risk exposure (by business line) 9.09%
Operational risk measurement systems 3.03%
Information on the models used to manage and 33.33%
measure operational risk
Information on Key risk indicators (KRI) 9.09%
Unexpected loss from operational risk 0%
Tehnology and system risk 0%
Risk of Human Error 0%
Legal risk & other operational risk 3.03%
% percentage: equal the existence of item in banks divided on total number of banks
The previous tables show the disclosure commercial banks annual reports, we provide
items for all Hungarian banks and if they evidence that both extent and content of
abide by our research factors to each factor disclosures on operational risk of the banks
from annual report for each bank. are very poor, reflecting the lack of concern
First of all, by analysing Hungarian of managers of the banks, of supervisers and
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of other agents, relating to operational risk [2] Helbok, G., Wagner, C., “Determinants of
disclosures. Operational Risk Reporting in the Banking
Second of all, there are many dissonances Industry”, Journal of Risk, Austria, 2005,
refering at the approches of exposing the Available at:
http://ssrn.com/abstract_id=425720
main information about operational risk.
[3] Ojo, M., “The Impact of Capital and
There are few banks which manifest interest Disclosure Requirements on Risk and Risk
in disclosing information about their Taking Incentives” Oxford, 2010, Available
operational risk. at: http://mpra.ub.uni-muenchen.de/20404.
Finally, the area of operational risk [4] Haija, M.F.A.E., Hayek, A.F.A., “Operational
disclosure is poor in Hungarya, because Risk Disclosures in Jordanian Commercials
banks are still in the process of developing Banks: It’s Enough”, International Research
operational managament departments, Journal of Finance and Economics,
operational management framework, EuroJournals Publishing, Jordan, 2012, pp.
procedures and processess. 50-61.
[5] Basel Committee on Banking Supervision,
Conclusions “Basel II: International Convergence of
Capital Measurement and Capital Standards:
A Revised Framework’’, Bank for
Hungarian commercial banks have a poor
International Settlements, Switzerland, 2005.
disclosure of operational risk. Moreover, our [6] Basel Committee on Banking Supervision,
study expose that the preponderence of “Enhancement to the Basel II Framework’’,
Hungarian commercial banks do not give Bank for International Settlements,
information about operational risk. Most of Switzerland, 2009.
annual reports of hungarian commercial bank [7] Galloppo, G., Rogora, A., “What Has Worked
do not even mention about operational risk. in Operational Risk?”, Global Journal of
Furthermore, we recomend that Hungarian Business Research, Italy, 2011, pp. 1-17.
central bank should impose to commercial [8] Frolov, M. “Bank Credit Risk Disclosure in
banks to include in their annual report the Japan”, Journal of Banking Regulation,
Palgrave-Macmillan Ltd, United Kingdom,
main information about operational risk and
2006, pp.221-242.
to enhance the disclosure of operational risk
References
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Volume XIII, Issue 1/ 2013
Iluț Bogdan
„Alexandru Ioan Cuza” University of Iaşi, Romania
Faculty of Economics and Business Administration
ilut2k@yahoo.ro
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the last two decades, a large body of [5]) from the ones achieved in the case of the
literature being focused on related subject, monetary and bonds markets ([6], [7]).
employing both qualitative and quantitative The academic literature identifies a series
approaches (see: [1]). One quick conclusion of challenges that prevent the deepening of
that can be draw from this large body of the banking integration process, these being
literature is that the banking sector of the EU more obvious in the case of the new EU
has undergone through tremendous changes member states. Thus, these challenges are
in the last decades. It all started with the represented by the characteristics of the
deregulation of the capital markets, national business environment [8], the socio-
determined by the London Stock Exchange demographic barriers that exist that tend to
Big Bang in the eighties, followed by the be enhanced by the heterogeneous juridical
European Commission initiatives and fiscal frameworks, that is specific to each
materialised in the banking directives that member country and nevertheless the
aimed to stimulate cross-border banking different impact that the recent global crisis
activities and finally by the development of had on the national macroeconomic
the Lamfalussy process and the subsequent environment ([9], [10], [11]).
proposal for the creation of a banking union
in the aftermath of the global financial crisis. 3. Methodological considerations
These impactful events that have succeeded
in a short period of time have exercised a In order to underline the progresses made
tremendous pressure on the business model in the banking integration process by the
of the EU banks, the enlargement to 27 sample countries we have employed in our
members presenting yet another simulating analysis the law of one price.
incentive for pan-European development and Thus, according to the law of one price, as
competition. a result of the integration process the nominal
Thus, in the face of these challenges the interest rates should converge toward the
banks operating in the European Union have lowest registered level that exists in the case
diversified their portfolios, universalising of the analysed countries [6].
their operations and aiming rather for a In order to completely underline this
general public (both retail and corporate) complex process we will also take a look at
then a specific niche. As a result European the changes that have been registered in the
bank provide customers with a wide range of competition level from the analysed banking
products and services beside the traditional sectors, as a deepening of the integration
ones: insurance products, investment process should point out to an increased
products like fund units, private banking and competition level, as entry barriers are
wealth management services and removed and the cost for accessing these new
nevertheless portfolio management and banking markets drops significantly.
advisory services. The liberalisation and In order to establish the dynamics of the
deregulation of the financial sectors has also competition on the banking sectors from the
prompted an increased competition for banks new European Union member states we will
from non-banking actors, thus the boundaries take into consideration two main indicators.
between banks and other financial agents The first indicator that we will use is the
have become more blur [2]. As mentioned CR5 Index, which represents the percentage
earlier the extension to 27 members has that the top five banks are having in the total
provided the opportunity for Western assets of the system and which reflect the
European banks to develop their cross-border concentration degree of the market. The
activities in the new member countries, as indicator is calculated based on the formula:
these markets are far from reaching their full
potential. This has lead also to an increase of A1 + A2 + A3 + A4 + A5
the competition level in the case of the new CR5 = x100
EU member countries banking sector [3]. AT
Although the legislative initiatives at the
European level have aimed an improvement where A1, A2, A3, A4 and A5 represent the
of the overall integration level of the banking value of the assets held by the top five banks
sectors the progresses registered are far ([4], in the system and AT represent the value of
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the total assets of the banking system. It can Swiss franc, most of the mortgages being
take values between 0.1% and 100%, where denominated in these currencies. At the other
the low value represents a highly dispersed end of the spectrum are the banks operating
market and 100% represents an oligopoly or in the Czech Republic, Poland and Slovakia.
monopoly. In the case of Poland the low level of non-
The second index that we will use is the performing loans can be attributed to the
Herfindahl–Hirschman Index, which ability of the government to maintain a stable
underlines the degree of competition which macroeconomic environment during the
exists on the market and is calculated based international financial crisis and its
on the following formula: aftermath, while in the case of the Czech
N Republic and Slovakia it was the strict
H = ∑ s1
2
regulations imposed by their Central Banks
i =1
that prevented banks from overexposing
where si is the market share (in our case the them in the credit boom period and thus the
value of banking actives) of firm (bank) i and number of clients that have defaulted on their
N represents the number of banks that exist loans was relatively low.
in a certain market. It can take values
between 0 and 10000. If the values are below Figure 1. The ratio of non-performing loans
100 it underlines the existence of a highly in the case of the sample countries in 2012
competitive market, if the value is below
1000 it reflects a dispersed market, if the
value is between 1000 and 1800 it indicates a
relative moderate concentration in the market
and if the value is above 1800 indicates a
highly concentrated market.
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Figure 2. Intermediation level in the case of loans, Bulgaria and Romania registering as
the sample countries in 2012 presented previous a high level of non-
performing loans.
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is represented by the high ratio of non- in the aftermath of the crisis the banking
performing loans, the banks needing a solid integration process has continued to deepen
rebound strategy as the macroeconomic in the case of the analysed countries.
recovery being still a long way ahead. In this context it becomes interesting to
analyze the evolution of the average interest
Figure 4. CR-5 on the banking sector in the rates for retail deposits, in order to confirm
case of the sample countries in 2012 the previous registered results (figure 6).
6. Conclusions
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in the banking integration process, despite for the emergence of cross-border business”,
the negative impact of the global financial EU Monitor, Deutch Bank Research, no. 34,
crisis. 2006.
Although the banking sectors of the [5] Staikouras, P., Staikouras, C. and Agoraki,
M.E., “The effect of board size and
analysed countries have undergone through a
composition on European bank performance”,
processes of reform, privatisation and EU European Journal of Law and Economics, no.
ascension there is still room for 23, 2007, pp. 1-27.
improvement, both in the case of the banking [6] Baele, L.M., Ferrando, A., Hordahl, P.,
integration process and the development of Krylova, E. and Monnet, C., “Measuring
these banking sectors. Probably the most financial integration in the euro area”,
important challenge will be the deepening of European Central Bank Occasional Paper,
the banking integration process beyond the no. 14, 2004.
result achievable through the stabilisation of [7] Manna, M., “Developing Statistical Indicators
the macroeconomic environment and in the of the Integration of the Euro Area Banking
System”, European Central Bank Working
context of a possible banking union.
Paper Series, no. 300, 2004.
[8] Roman, A., "Sources of financing european
7. References smes and new supporting EU policies:
evidence from the new EU member states,"
[1] Gual, J., “The integration of EU banking Anale. Seria Stiinte Economice. Timisoara,
markets”, Centre for Economic Policy Faculty of Economics, Tibiscus University in
Research Discussion Paper Series, no. 4212, Timisoara, 2012, pp. 245-252.
Londra, 2004. [9] European Central Bank, “Financial
[2] Rajan, R.G. and Zingales, L., Banks and Integration Report 2010”, Annual Report
markets: The changing character of Series, Frankfurt am Main, 2010.
European finance, in: Gaspar, V., Hartmann, [10]Buch, C.M. and Heinrich, R.P., “Financial
P., Sleijpen, O., (Eds.), Proceedings of the Integration in Europe and Banking Sector
2nd ECB Central Banking Conference on the Performance”, Kiel Institute of World
Transformation of the European Financial Economics Report, 2002.
System, European Central Bank, Frankfurt, [11]Roman, A. and Avadanei, A, "The Monetary
2003. Policy Transmission Mechanism under
[3] Lensink, R. and Hermes, N., “The short term Financial Distress. An Overview," Ovidius
effects of foreign bank entry on domestic University Annals, Economic Sciences Series,
bank behaviour: does economic development Ovidius University of Constanta, Faculty of
matter”, Journal of Banking and Finance, no. Economic Sciences, 2011, pp. 1832-1838.
28, 2004, p. 553–568.
[4] Dieckmann, R., “EU retail banking - Drivers
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which, each person under its jurisdiction the right to life, prohibition of slavery,
must enjoy the human rigths and fundamental respecting the right to privacy, the freedom
freedoms plus the sincere desire of the of thought), the European Convention brings
participants-the members, to compete some developments and concretizations in
effectively in achieving the purpose of the fields like: right to freedom and security, the
Council. right to found a union, prohibition of forced
This Council has the Committee of or compulsory labour.
Ministers in its structure, which is the Concerning the prohibition of forced or
decision organization of the European compulsory labour it can be seen that this
Council and the Parliamentary Assembly European Convention took certain terms
(called Consultative Assembly until 1974) from the International Labour Organization
which is a consultative organization without Convention, number 29/1930 regardind the
law making power. Besides the two main forced or compulsory labour, convention
organizations, in the European Council which was adopted in the 14th session of
structure there are also the European Court of International Labour Conference. This
Human Rights , the General Secretariat, the convention is also among the eight
Congress of Local and Regional Authorities. fundamental conventions of International
Till the present, the European Council Labour Organization.
developed a number of over 200 European In the specialty literature, the forced
conventions and agreements, and these labour is also called „modern slavery”[2],
documents are the real source of the regional which refers to underpaid work, the work
international law (especially in human rights performed in high-risk of accidents
issues) some of which are open to ratification conditions and in certain situations to
for the states which are not members of this trafficking people. Sometimes, the forced
organizations. labour is performed by the migrant workers.
These are binding conventions and A lot of migrant workers are exposed to the
agreements only for the states that sing, ratify risk of exploitation and abuse because most
or accede to them. employers don't respect international labour
Besides these conventions, the European standards [3].
Council adopted a series of recommendations
which haven't got a judicial power, but they Under the art.4, par. 2 from the European
offer strands of organizations and, in many Convention, no one can be constrained to
situations, these recommendations have perform a forced or compulsory labour; by
become conventions and agreements. exception of this rule, it is not considered
Since 1950, the European Council forced or compulsory labour:
„equips” Europe with an „European -any work required to be done in the
Convention on Human Rights” establishing ordinary course of detention imposed or
the legal protection mechanisms at European during conditional release from such
level. detention
European Convention on Human Rights -any service of a military character or, in
and Fundamental Freedoms was adopted on case of conscientious objectors in countries
4th November 1950, in Rome and came into where they are recognized, service exacted
force on 3rd September 1953. instead of compulsory military service
This convention is also judged to be a -any service exacted in case of an
fundamental document on human rights emergency or calamity threatening the life or
protection and guarantee by both, the well –being of the community.
instituted and procedure and through a wide -any work or service which forms part of
range of rights and freedoms, devoting them normal civic obligations.
the recognition and guarantee. Regarding the right to establish a union,
It is considered the most important legal referred to in Article 11 from the
instrument in the conventional system of the Convention[4], it can be drawn just the idea
European Council[1]. that any person has the right to establish a
Although reiterates a number of rights union and to join a union but not the right of
enshrined in the Universal Declaration of trade unions to function freely.
Human Rights (we mention some of these:
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The compliance with the Convention is social security (1964) and the European
provided by the existence and functioning of Convention on Social Security (1972).
the European Court of Human Rights, This way, the European code of social
composed of a number of judges equal to the security is the only legal instrument which
one of the contracting parties. defines European social security rules. It was
Under the art.35 of the Convention, it can adopted in 1964 but came into force on 17 th
be seen that you cannot go to the European March 1968. This code also establishes
Court on Human Rights only after the minimal protection levels, which the states
exhaustion of the ways of internal appeal. must provide them in nine social security
The European Convention on Human fields and it has as a purpose, the
Rights covers only civil and political human harmonization of social security systems of
rights. Therefore, the Council of Europe, in the Member States of the Council of Europe
its effort to regulate and protect the [6].
economic, social and cultural human rights Otherwise, the Code was revised, so that
adopted, in Turin, on 18th October, 1961, the was opened for signature on November 6,
European Social Charter (came into force in 1990[7].
1965). Among the most important human After a period of four years from the
rights covered by the Charter can be development of the European code of social
mentioned: the right to work, union rights, security, the European Convention on Social
negotiation, the social security. Security (adopted in 1972 came into force in
This document sets out 19[5] rights that 1977) came in addition to it. This Convention
the Contracting States undertake to has as a foundation, the fourth principles of
guarantee. the international[8] Law of social security
In other news, this book can be meaning: equal treatment in social security
considered a mixed text because it includes between domestic and foreign people,
declarative part, which set social polity maintenance of rights acquired abroad, the
objectives to be pursued by Member States of uniqueness of the applicable law as well as
the Council of Europe and part legal, listing the transfer of benefits between the countries
obligations for a State ratifies. One of the concerned.
obligations of Member States is to submit This Convention applies to all fellow
periodic reports for consideration to a Contracting States, stateless persons residing
committee of experts. in their territory and their family members
Moreover, the European Social Charter is and survivors [9] and covers all social
a summary of international labour law, as it security benefits.
is produced mainly by the International
Labour Organization. 3. Conclusions
Council of Europe’s concern about this
international document led to the revision of From the analysis made, we can conclude
such content Social Charter in 1996, was that European community and the world one
reinstated in the document adopted in have reached a stage of evolution, where the
Strasbourg on 3 May 1996, known as the development and security of human existence
European Social Charter (revised). can't be unilaterally treated. In this context,
In its new redaction, the document we the human development cannot be provided
refer, appears as a set of core labour rights without offering it safety: at the same time,
and social security. In addition to the 19 safety is not guaranteed without development
rights, which are defined by the European and both can't be guaranteed without the
Social Charter, the new revised Charter adds respect for human rights.
another 12 rights. For this reason, it is necessary to target
In the legal doctrine this document is the need to coordinate the efforts of all states
considered to be one of the „major Council of to achieve the best interests of the
Europe treaties in human rights, an European international and European community,
reference tool in social cohesion”. respectively the protection of human rights
The Council of Europe adopted (among and freedoms.
those presented above) the European code of In this context, the fundamental rights
represent the convergent point which is based
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on the European Convention on Human [3] Iancu, N., Migraţia Internaţională a foţei de
Rights, at the level of the Council of Europe, muncă, Editura Pro Universitaria, Bucureşti,
legal text that represents a reference point in 2013, pg.123.
any democratic legal system. [4] Popescu, A. Drept Internaţional şi european
al muncii, Ediţia 2, Editura CH.Beck,
The Council is aware that legal norms,
Bucureşti, 2008, pg.269;
tools and mechanisms for the protection of [5] po
human rights have little effect if European [5] Voiculescu, N., Drept comunitar al muncii,
citizens are not informed of their existence Editura Wolters Kluwer, 2009, pg. 101;
and scope. [6] Voiculescu, N., Drept comunitar al muncii,
According to the content of this paper and Editura Wolters Kluwer, 2009, pg. 109
analyzing the content of the European [7] Voiculescu, N., Drept comunitar al muncii,
Convention on Human Rights, but especially, Editura Wolters Kluwer, 2009, pg. 109
observing the mechanisms of action of the [8] Popescu, A., Drept Internaţional şi european
Council of Europe we can conclude that, in al muncii, Ediţia 2, Editura CH.Beck,
Bucureşti, 2008, pg.269;
terms of protection and providing human
[9] Popescu, A., Drept Internaţional şi european
rights, these are much safer than anywhere in al muncii, Ediţia 2, Editura CH.Beck,
the world. Bucureşti, 2008, pg. 286;
[10] Nistor, V., Drept social european, Editura
References Fundaţiei Academice Danubius Galaţi, 2004;
[11] www.europainfo.ro.
[1] Voiculescu, N., Drept comunitar al muncii, [12] www.mmuncii.ro
Editura Wolters Kluwer, 2009, pg.71 [13] www.onuinfo.ro
[2] Popescu, A., Drept Internaţional şi european
al muncii, Ediţia 2, Editura CH.Beck,
Bucureşti, 2008, pg.27.
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Marinaş Marius-Corneliu
Bucharest University of Economic Studies, Department of Economics
marinasmarius@yahoo.fr
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Costs (C) (%GDP) Benefits (B) (%GDP) and maintenance of competitive advantages
related to the taxation level or to the labour
costs. As the direct foreign investments have
B contributed to the CEE economies'
C integration in the global channel of products,
then the share of the intra-industry trade will
be closer to the level recorded by the most
important trade partners from the Euro area.
Under these terms, those economies
Degree of trade integration (% GDP) accession to the Euro area should not be
accompanied by additional costs in terms of
Beside the direct influence of the trade trade. However, the results obtained in the
integration degree upon the adoption of a economic literature are contradictory. On the
single currency, there is also an indirect one hand, de Grauwe and Mongelli [3]
influence, which is the effect of the degree of asserted that the emphasis of the trade
correlation between the business cycles. relations between the structurally divergent
Regarding this, there are two views in the economies (such as the Euro zone and some
economic literature: an optimistic view and a of the CEE economies) will increase the
pessimistic view. In the optimistic view, the probability to form a heterogeneous
trade in the European Union countries is an monetary union. On the other hand, Bussiere
intra-industry trade to a great extent, so that and the others [1] settled that the CEE
most of the aggregate demand shocks affect economies are characterized by a degree of
the countries from this economic union in the trade integration which is superior to that of
same way. If a unique market is made, most the monetary union, this fact reducing the
of the demand shocks will tend to have a costs for the adoption of the unique currency.
symmetric effect. According to this This finding confirms the results of the
approach, the increase of the trade integration analysis made by Zumer and Melitz [8],
degree will lead to a convergence of the according to which the new EU member
economic structures and to the occurrence of countries have an exports structure more
asymmetric shocks. diversified, thus providing a higher resistance
Therefore the degree of business cycles to the action of some shocks specific to a
synchronization and the benefits of adopting certain activity sector. A significant factor
the single currency will get increased. In the which influences the relation between the
pessimistic view, the trade integration results trade integration and the business cycles
in a regional concentration of the industrial synchronization is constituted by the
activities and in the occurrence of intra/inter-industry feature of the trade.
asymmetric shocks, thus reducing the degree According to a study made by Munkácsi [5],
of correlation of the business cycles. The some of the new EU member countries (such
empirical evidence of Frankel and Rose [2] as Hungary and the Czech Republic) record a
support the optimistic approach. Frankel and share of the intra-industry trade superior to
Rose asserted that the countries with the the cohesion countries, thus increasing the
strong economic relations tend to record a probability of occurrence of more symmetric
higher business cycles correlation, claiming shocks with the Euro zone countries. As the
that the emphasis of the trade integration due CEE economies are quite open from a
to the monetary unification will generate the commercial point of view, then one of the
better synchronization of the economic economic growth engines is represented by
cycles closer to the specificity of an optimum the foreign exchanges, mainly with the Euro
currency area. zone economies.
The CEE countries have recorded a fast
increase of exports, despite of the national 2. The degree of trade integration
currencies appreciation tendency from the
period previous to the economic crisis, as a Romania's economy is relatively less open
result of the foreign investments, of the in terms of trade compared to other CEE
privatization process, of reducing the countries, but the trade is especially made
commercial barriers along with entering EU with the Euro area core countries. In this
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regard, Romania was the ninth economy in compared to 2004) and Lithuania, in this case
EU in 2011 in terms of the share of the the decrease being by approximately 7
exports towards EU-27 (71% of the total) and percents.
the eighth in terms of the share of the imports According to figure 3, it results that
from EU-27 (72.7% of the total imports). Estonia and Latvia imported over 77% of the
During the period 1999-2011, the share of goods from EU-27 in 2011, while Lithuania
Romania's exports to EU was quite stable, recorded the lowest dependence on European
ranging between 70.1% and 75.3%. The Union, its share being of 56.7% of the total.
Romanian adhesion to the EU does not With reference to exports, over 83% of the
generate an increase of the share of exports Slovenian and Czech external market is
above the levels recorded during the period European Union, while Hungary's and
2003-2004 (figure 2). In contrast, the share of Poland's exports are at least 76% to the other
imports was decisively influenced by the economies of the union. The Baltic States
adhesion to the European Union, as a recorded a reorientation of exports towards
consequence of the elimination of the custom countries outside EU-27, the share of the
duties and the weak competitiveness of some European exports decreasing by 14-15
of the domestic final products. Thus, the percents in 2011 compared to 2003-2004. As
share of imports from EU increased in 2007 in the case of imports, Lithuania is the least
by 8 percents in comparison with the integrated CEE economy also in terms of
previous year, after which it was limited to exports to the other EU countries.
approximately 73%.
Figure 3. The share of trade exchanges
Figure 2. The evolution of trade exchanges between CEE and EU-27 (2011)
between Romania and EU-27 85.0
78.0
76.0
80.0
74.0 75.0
72.0
70.0
70.0
68.0 65.0
66.0
60.0
64.0
62.0 55.0
60.0 50.0
58.0 Slovakia Czech Poland Hungary Slovenia Estonia Latvia Bulgaria Lithuania
Republic
56.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Share of exports to EU-27 (%of the total) Share of imports from EU-27 (% of the total)
Share of exports to EU-27 (%of the total) Share of imports from EU-27 (% of the total)
Data source: Eurostat
Data source: Eurostat
Among the European Union countries, the
Among the ten economies which are the CEE economies (except the Baltic States) are
most integrated with EU-27, six of them are the most integrated with the economies of the
from CEE, both in terms of imports and also monetary union, especially with the core
of exports. These economies' accession to EU ones (Germany, France, Italy, Austria, the
has rather influenced, as in the case of Netherlands, Belgium and Luxembourg).
Romania, the imports and less the exports to Thus, in 2011 approximately 54% of the
the other countries from the economic union. exports and 52% of the imports of the
Thus, in 2004 relative to 2003, the share of Romanian economy were made with the Euro
the imports from EU increased by 8.9 zone countries, yet these values being lower
percents in the Czech Republic, by 8.7 compared to 2004, when approximately 60%
percents in Estonia, and by 7.4 percents in of the foreign trade was made with the
Lithuania. However, the increase of the countries from the current monetary union. In
dependence on European imports was 2011 five out the first ten destination
temporary in most of the CEE economies, the countries for the Romanian exports/imports
most significant decreases being recorded by were from euro area (i.e. 44.5% of the total
Slovenia (by 14.4 percents in 2011 if exports, 41.5% of the total imports), thus
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Volume XIII, Issue 1/ 2013
the same group. Thus, the share of exports to Periphery 12.6% 10.4% 9.8% 8.3%
the Euro zone core has reduced by 24 THE
CZECH Core 58.7% 46.8% 48.1% 52.1%
percents in Hungary, and by approximately
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Volume XIII, Issue 1/ 2013
REPUBLIC
Periphery 2.6% 2.8% 2.6% 2.9% According to the optimum currency area
ESTONIA
Core 22.5% 16.6% 11.0% 12.2% theory, this situation will reduce the costs of
monetary integration for CEE economies.
Periphery 1.9% 1.9% 0.8% 0.6%
HUNGARY
However, the degree of trade integration with
Core 65.8% 47.6% 41.2% 41.9%
the euro area is important and in absence of
Periphery 3.3% 3.7% 3.5% 3.4% the transition to the single currency. Thus,
LITHUANI
A Core 38.7% 20.1% 19.4% 22.1% increasing of the demand in the euro area will
Periphery 1.9% 2.6% 2.8% 1.8%
generate a significant impact on highly
LATVIA
integrated economies with monetary union,
Core 40.2% 23.5% 15.7% 14.9%
stimulating the recovery of these countries.
Periphery 3.4% 5.5% 5.8% 1.4% Also austerity measures promoted in the
POLAND
Core 55.9% 42.1% 42.5% 46.3% monetary union will affect in a greater extent
Periphery 2.3% 2.6% 3.5% 3.4%
the growth process of the more integrated
ROMANIA countries.
Core 62.1% 50.0% 39.0% 42.7%
Periphery 1.5% 1.9% 1.7% 1.7% [1] Bussière, M., Fidrmuc, J., Schnatz, B.,
SLOVAKIA “Trade Integration of Central and Eastern
Core 57.8% 45.6% 37.0% 41.1%
European Countries: Lessons from a Gravity
Periphery 1.3% 2.0% 2.2% 3.0% Model”, ECB Working Paper Series, No.
Data source: Eurostat 545, 2005, pp. 4-20
[2] Frankel, J.A. and Rose, A.K. “The
endogeneity of the optimum currency area
Beside the influence upon the trade criteria”, Economic Journal 108, 1998, pp.
relations with the countries from the 1009-1025.
monetary union, the CEE countries' [3] de Grauwe, P., and Mongelli F. P.,
accession to the European Union has “Endogeneities of Optimum Currency Areas:
generated the reorientation of a part of the What Brings Countries Sharing a Single
exports towards economies from the same Currency Closer Together?”, European
group, which are characterized by a closer Central Bank Working Paper Series 468,
development level, having a similar 2005, pp. 5-30
geographical position. Thus, the CEE [4] McKinnon, R. I., “Optimum Currency
Areas”, American Economic Review, Vol 53,
economies exported at least 13.5% of the
1963, pp. 717-724.
total to the other economies from same [5] Munkácsi, Z., “Export structure and export
region in 2010, while in 1999 only the Czech specialisation in Central and Eastern
Republic recorded a share higher than 10% European countries”, Occasional Papers,
of the total. Slovakia is the most integrated, Hungary National Bank, No. 81, 2009, pp. 2-
exporting over 31% of the total to the other 40
six economies, while the share of Hungary's [6] Socol, C., Hrebenciuc, A., “Effects of
exports increased by 10 percents within International Financial Turbulences
seven years only. As a consequence, the Extension on the Romanian Economy.
group of the seven CEE countries will Prevention Solutions”, Theoretical and
Applied Economics, No. 8 (525), 2009, pp.
develop synchronized in terms of trade, due
31-42
both to the dependence on the same group of [7] Socol, A., „Costs of Adopting a Common
economies (the Euro area core) and also to European Currency. Analysis in Terms of the
the trade integration with economies from the Optimum Currency Areas Theory”,
same region. Theoretical and Applied Economics, no. 2,
2011 (555), pp 89-100
Conclusions [8] Zumer, F., Mélitz, J., ”Partage du risque dans
l'Union européenne. Expériences
In this study I have demonstrated that interrégionales et internationales”, Revue de
there is a strong trade integration between the l'OFCE, Presses de Sciences-Po, vol. 0(5),
Central and Eastern European countries with 2002, pp. 299-323
the rest of Europe, especially with those
belonging to the core of the monetary union.
219
“Ovidius” University Annals, Economic Sciences Series
Volume XIII, Issue 1/ 2013
Business Cycles Synchronization with the Euro Area. The Case of CEE
Countries
Marinaş Marius-Corneliu
Bucharest University of Economic Studies, Department of Economics
marinasmarius@yahoo.fr
220
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Volume XIII, Issue 1/ 2013
correlated with that of the Euro area supposes the decomposition of a data series
economy. Based on the cluster analysis, in two unnoticeable components, i.e. the
Kappler [8] identified the following country trend and the cyclical component. This
groups of the monetary union: 1. Austria, statistic method is based on solving a
Germany and the Netherlands; 2. France, problem related to the minimization of a
Belgium, Italy and Spain; 3. Greece and function related to the mean square
Portugal. Gogas and Kothroulas [6] estimated deviations of the cyclical component and the
that the common monetary policy tends to changes of the trend's increasing rhythm:
destabilize the economies from euro area HP=
periphery, as they are less correlated with the T T
group of the three biggest countries, which min y * {∑[( yt − yt* )2 + λ ⋅ ∑ [( yt* − yt*−1 ) − ( yt*−1 − yt*− 2 )]2}
t
t =1 t =1
achieve 60% of the entire Euro area GDP.
Aguiar and Soares [2] studied the correlation where:
between the business cycles by means of the T represents the total number of
wavelet transformation and they identified observations; yt – time series; yt* - the trend
the existence of a convergence of the of the time series; yt – yt* constitutes the
periphery economies to the Euro zone core, cyclical component of the time series; λ –
but with different speeds. The studies which penalty coefficient of the sum between the
analyzed the business cycles synchronization variations of the time series trend's increasing
between the new member countries and the rhythm, which determines the degree of
Euro area showed inferior results compared smoothness for the trend component.
to the Euro zone core, and, respectively, In this study, I have applied the Hodrick-
superior results if compared to some Prescott filter in the case of seven CEE
periphery economies, such as Greece. The countries (Romania, Bulgaria, the Czech
results outline the fact that there is not a Republic, Poland, Hungary, Slovenia and
homogenous group of the new member Slovakia), of the current Euro area with 17
states, but most of them are rather correlated members and of nine Euro area economies
with Germany than with the Euro area. (Germany, France, Austria, the Netherlands,
Italy, Spain, Portugal, Greece, Ireland). I
3. The Hodrick-Prescott filter have used the GDP data series in constant
prices (millions of euro) with 2000 as a fixed
The simplest way to estimate the business base. For 16 out of the 17 entities included in
cycles synchronization is to extract the the analysis, the data series covers the period
cyclical component of an aggregate indicator 1998:Q1-2011:Q1, namely 53 observations,
such as GDP, industrial production or certain while 45 observations were available for
components of the GDP and to calculate the Greece starting with the 1st quarter of 2000.
statistic correlation between the business Before using the filters to extract the cyclical
cycles by means of the Pearson or Spearman component, I proceeded to eliminate
coefficients. This method was used by seasonality by using the TRAMO/SEATS
authors such as Artis and Zhang [3], Socol solution provided by the Eviews 7 software.
and Socol [12], Levasseur [9], Kappler et al.
[8] and Gogas and Kothroulas [6]. The 4. The correlation between the business
business cycle represents the fluctuation of cycles
the real GDP around the trend constituting
the potential GDP. The changes of the trends The most often used method to estimate
are explained as being the result of the the convergence between the business cycles
factors influencing the long run aggregate in the case of two countries A and B is to
supply (capital stock, employment, total calculate their statistic correlation. From a
factor productivity), while the changes of the conceptual point of view, a correlation
cyclical component are the effect of the coefficient surprises two features of the
short-term demand and supply shocks. In this relation between two business cycles –
section, I have used a univariate method to synchronization and amplitude of their
identify the business cycle, based on the variation. Thus, the existence of a perfect
Hodrck-Prescott filter. It was introduced by concordance of the recessionary and
R. J. Hodrick and E. C. Prescott [7] and it inflationary gaps for two economies reveals
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synchronization between the business cycles vulnerable if it would join to the Euro area
of the economies A and B. especially because of the fact that it has not
Firstly, I have calculated the Pearson and strong enough domestic mechanisms to
Spearman correlation coefficients between adjust certain asymmetric shocks.
the national business cycles (for the 16 The analysis of the business cycle
countries) and the business cycle of the Euro synchronization for the entire considered
zone with 17 members, for the entire period period cannot outline the changes generated
1998:1-2011:1 (figure 1). by some factors, such as the adoption of the
single currency, EU's successive
Figure 1. Business cycle correlation with enlargements or the influence of the capital
Euro area flows from the period 2005-2008.
1
Theoretically, these factors may induce a
0.9
higher correlation of the Euro area periphery
0.8
0.7
countries and of the emerging Central and
0.6 Eastern European economies with the Euro
0.5 area core economies. Calculating the
0.4
business cycles correlation with the Euro area
0.3
for two approximately equal periods of time
0.2
0.1
(1998:1-2004:4 and 2005:1-2011:1) it results
0 some differences related to the results from
FR IT DE AT NL IE SP SL CZ HU PT PL BG SK RO GR
Pearson Correlation Spearman Correlation
the entire analyzed interval (table 1). Thus,
Data source: Eurostat
there is an emphasis of the business cycle
synchronization with the Euro area during the
The results obtained confirm an extremely second period in comparison with the first
high correlation between the business cycles one in the case of all economies included in
of the Euro zone core countries and the this study. For example, Germany, France,
business cycle of the entire monetary union. Italy, Austria and the Netherlands were
Its most important three economies correlated between 95% and 98% with the
(Germany, France and Italy) have a Euro area.
correlation coefficient which takes the values Among the periphery countries, Portugal
between 93% and 98%. Beside these, Austria and Greece recorded better results during the
and the Netherlands record higher second sub-period, the correlation
correlations of the business cycles. As for the coefficients being higher to those calculated
five economies, there are no significant for the entire period, while Spain's and
differences with reference to the types of the Ireland's business cycle correlation was quite
statistic correlation of the business cycles. similar, during the second period, to that
Among the Euro area periphery economies, recorded during the entire analyzed period.
Ireland and Spain have been the most As for the EU emerging economies, all of
correlated with the Euro area, as the them recorded a higher business cycle
correlation coefficients took values close to correlation along with the accession to EU
90%. On the contrary, Portugal's business and with the emphasis of the degree of
cycle has been correlated by 81% with the commercial and financial integration with the
Euro area, while Greece was the most Euro area core economies. Generally, their
divergent economy of the monetary union. correlation coefficients for the second sub-
Among the new EU member countries, period are higher than those calculated for
Slovenia, the Czech Republic and Hungary the entire interval. Thus, the business cycles
recorded higher correlations compared to of Hungary, Slovenia and the Czech
Portugal and close to 90%. The least Republic have become as correlated with the
correlated economies with the Euro area have Euro area as the periphery economies. If
been Romania, Bulgaria and Slovakia, the during the first sub-period, the evolutions of
last one despite the fact that it adopted the Romania, Greece and Slovakia were
Euro currency since the beginning of 2009. negatively correlated with the Euro area,
With reference to the optimum currency area during the second sub-period positive
theory, Romania would be the most correlations only were recorded, higher for
the third economy and lower for Greece. The
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Volume XIII, Issue 1/ 2013
business cycle correlation in Romania was (Spain, Italy and Austria). Along with the
69% during the period 2005:1-2011:1, this occurrence of the crisis, the degree of
value being close to those of Bulgaria, but business cycles synchronization with the
higher than in Greece. Euro area was significantly reduced in
Greece, Romania and Bulgaria, while in the
Table 1. Business cycle correlation with Euro other economies it was at least 86% (Poland).
area in two sub-periods Therefore increasing the business cycle
correlation of the three economies was
(P) (S) (P) (S) temporary only, because these neutralize with
1998:1-2004:4 2005:1-2011:1
RO -0.5 -0.47 0.69 0.69
difficulty the shock induced by the global
BG 0.11 0.21 0.73 0.72 crisis, what prolonged the economic
CZ 0.52 0.53 0.93 0.92 recession.
PL 0.7 0.55 0.81 0.75
SK -0.39 -0.36 0.88 0.89
In order to outline the differences between
SL 0.7 0.79 0.92 0.95 the economies included in this study, I have
HU 0.33 0.21 0.9 0.91 built two charts, the first one including the
GR -0.61 -0.65 0.39 0.56 countries characterized by a negative
IE 0.86 0.8 0.92 0.9
PT 0.76 0.78 0.92 0.87 business cycle correlation during the first
SP 0.89 0.86 0.91 0.87 sub-period (1998:1-2004:4), and the second
IT 0.88 0.89 0.98 0.98 one including the other CEE countries.
DE 0.97 0.95 0.96 0.95
FR 0.96 0.9 0.98 0.98 Starting with the five-year business cycle
AT 0.89 0.86 0.97 0.97 finished in the 3rd quarter of 2006, the
NL 0.94 0.89 0.95 0.96 synchronization with the Euro area has
Note: (P) – Pearson correlation; (S) – Spearman significantly increased in most of the
correlation economies included in the figures below.
Data source: Eurostat
Thus, Greece and Romania passed from a
negative correlation to a positive one, which
The analysis for the two sub-periods is though not statistically significant and then
allows the examination of the hypothesis to a significantly positive one, while in
related to the endogeneity of the optimum Poland, Bulgaria and Hungary the correlation
currency area theory. Since business cycles increased from approximately 30%, up to
become more correlated with the Euro area over 90%. Hungary is the only economy in
along with the use of a single currency or which the maximum was recorded at the end
increasing trade integration, the business of the period, the business cycle correlation
cycle synchronization criterion should not be being by 5 percent higher than before the
considered ex ante, but ex post, ie after economic crisis. Slovenia is, also, a more
joining to the monetary union. Consequently, special case, as the business cycle correlation
the costs of a common monetary policy will with the Euro area was higher than 90%
be reduced subsequently to the adoption of starting with the business cycle finished in
the single currency. Another method used in 2007.
the economic literature to estimate the
dynamics of the business cycle
Figure 2. CEE and Greece business cycle
synchronization degree is to calculate a
synchronization with the Euro area (rolling
rolling window correlation for a five-year
window correlation – 5 years)
interval. The results obtained record a
1.00
progressive increase of the business cycle 0.80
0.40
occurrence of the economic and financial 0.20
-0.40
-1.00
2003:3-2008:2 all economies recorded a high
4
4
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
02
03
03
04
04
05
05
06
06
07
07
08
08
09
09
10
10
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
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1.00
[2] Aguiar, L.F., Soares. M.J., „Business
0.80
Cycle Synchronization Across the Euro-Area:
0.60 a Wavelet Analysis”, NIPE Working Papers,
0.40
No. 8, 2009, pp. 3-10
0.20
[3] Artis M.J., Zhang W., „International
business cycles and the ERM”, International
0.00
Journal of Finance and Economics, 2(1),
-0.20
1997, pp. 1-16
-0.40
[4] Baldwin, R., „The Euro's Trade Effects”,
4
4
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
:Q
02
03
03
04
04
05
05
06
06
07
07
08
08
09
09
10
10
European Central Bank Working papers, No.
20
20
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BG CZ PL SL HU
References
225
“Ovidius” University Annals, Economic Sciences Series
Volume XIII, Issue 1/ 2013
Milea Camelia
“Victor Slăvescu” Centre for Financial and Monetary Research,
Romanian Academy, Bucharest,
camigheorghe75@gmail.com
Ailincă Alina Georgeta
“Victor Slăvescu” Centre for Financial and Monetary Research,
Romanian Academy, Bucharest,
alina.glod@gmail.com
Iordache Floarea
“Victor Slăvescu” Centre for Financial and Monetary Research,
Romanian Academy, Bucharest,
226
“Ovidius” University Annals, Economic Sciences Series
Volume XIII, Issue 1/ 2013
In order to be part of the EMU, both the years, their constraint to seek financial aid,
original countries and those that have joined accompanied by tough austerity conditions
later the EMU had, at least theoretically, to led to more and more discussions on the
meet the same conditions. Nevertheless, there feasibility and appropriateness to exit the
are many countries in the euro zone that have euro area and even the European Union, of
failed to meet some of the convergence several countries. Such ideas have been taken
criteria at the moment when they have joined into consideration in Greece, Portugal, Spain,
the euro area. Thus, in 2000 (prior to its entry Italy, Cyprus, Great Britain etc. Even in
into the euro area), Greece had a general Germany most people think the country
government gross debt as a percentage of would be better outside the euro area.
GDP of 103, 7% [2] well above the nominal Theoretically there is no provision in the
convergence criteria for this indicator. The European Union treaties for "expulsion" of a
entry of Cyprus into the euro zone has not country from the euro area or from the
either been based on the fulfillment of all the European Union. The analysts and the
convergence criteria, this country having not official sources say that a country could be
fulfilled the criterion on the general deprived, de facto, by the statute of euro state
government gross debt as a percentage of by closing its access to the European Central
GDP. Thus, before the entry of Cyprus into Bank (ECB) operations, which would force
the euro zone, in 2006, this indicator was that country to issue its own currency for
65.3% [3]. Malta did not fulfill either the resumption of money circulation in the
criterion on the general government gross economy in order to pay wages.
debt as a percentage of GDP, and she has The exit of a country from the euro zone
fulfilled the budget deficit criterion only a (we think, particularly, of Greece and
year before its joining the euro zone [3]. Cyprus) is unlikely because of the many
Italy, Spain, Netherlands, Austria, Belgium, disadvantages and perils. The central issue is
Germany did not fulfill the criterion on the the general chaos at local and regional level –
general government gross debt as a implicitly with political, financial, economic
percentage of GDP at the moment of their and social impact.
entry into the euro zone [4], while Ireland, No one can say exactly what will be the
Denmark and Portugal have almost met this consequences of a country leaving the euro
criterion in 1998, an year before their joining zone, but some effects can be predicted.
the euro zone [4]). The first effect will materialize in
In this situation, the global financial and problems of the banks in the country, with
economic crisis has led to a deepening and spillover effects in the countries where they
intensification of the various problems have offices and branches. The contagion
(economic, financial, social, cultural, etc.) effect will affect other foreign-owned banks
already faced by the euro area countries. In in other countries.
this context, there have been brought to light We consider that an important effect will
the structural deficiencies of some economies be of psychological nature. The public
of the euro area, emphasizing the differences reaction in the case of an announcement of a
between them (the deficiencies in the state leaving the euro area will be the
relationship between the banking system and decisive element during future events. The
the real economy, the architectural flaws of highest probability is that the human reaction
the monetary union etc.). is represented by lack of confidence and
Thus. in the recent years in the European panic. Most likely if the public found out,
Union , including in the euro area, there have that the authorities of that state prepare the
been exacerbated a number of problems such exit from the euro area, the resulting panic
as: the slowdown of economic growth, the could lead to acceleration of the process. The
amplification of the risk of reducing the banks will suffer massive loss of credibility.
credit supply toward the real sector, the Depositors will feel constantly threatened by
increase in intensity of the sovereign debt the danger of losing their savings. This will
crisis proliferating the risk of spreading, by lead to massive withdrawals of deposits and
contagion, of its effects, etc. finally to complete freeze in lending.
The avalanche of unbearable problems Practically the banking activity will collapse.
faced by the European countries in the recent
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Volume XIII, Issue 1/ 2013
As you know, the banks are the area are facing, it is important to succinctly
transmission channels of capital flows in the present the situation of some countries that
economy, or, with the their collapse, the have considered the possibility of leaving the
economic activity will return, finally, euro zone. Thus, Greece, with a small
suddenly or gradually, to barter exchange. economy heavily indebted to euro zone
Investors will loose confidence in the countries, is the first country that has needed
euro, and also local currencies will not be massive financial assistance from the
able to survive without the assistance of European Union and the international
national central banks. The costs will be seen financial institutions. In order to avoid
in public indebtness. bankruptcy, Greece has received a huge
The stock exchanges will collapse one financial help, provided either by directed
after another, due to a major spillover effect "injection" or through debt cancellation by
in all European Union countries. Currency private creditors.
devaluations will affect all social classes, and Portugal, heavily indebted to Spain,
the state will not be able to honor its passes also through a serious recession,
obligations to employees or to social assisted having been forced to sign, in May 2011, an
categories. Even obtaining loans by the austerity plan with the European Union and
government will become more difficult both the International Monetary Fund (IMF).
in terms of credit conditions and of the cost Ireland, a small country, but with an
of borrowing, which will increase important financial sector, with high
significantly. Unemployment will also economic growth until 2008, has entered into
increase and consumption will be affected. recession because of the housing bubble that
Companies will also record high losses. devastated the country's banking sector. This
There will be a general loss of confidence, is the second country that has concluded a
which will make very difficult economic and financial aid plan with European Union and
financial exchanges in that economy and in the IMF, accompanied also, as in the case of
the European Union. In some countries Greece, by harsh conditions imposed by the
facing the same major problems as the international creditors.
country leaving the euro area, similar effects Spain, having debts to Germany and
will occur, which will multiply the estimated France, and passing through a deep recession,
costs of leaving the Union (or the euro zone) managed to avoid a plan of global assistance
even of a single country. for its economy by obtaining in June 2012 a
At the political and economic level, the credit line for its banking sector from the
exit of a country from the euro zone will euro zone.
entail its isolation, thus creating the The euro zone crisis shows that for
possibility of an attack on its resources from analyzing the situation of a country, the
creditors who will require their funds back. indebtedness of the private sector has great
At the same time, the resources in the importance. Thus, Spain and Ireland,
banks of that country will not necessarily be countries with relatively low public debt, but
directed to its territory, but to other areas of with private huge debts has been hit hard by
the European Union and the world, thus the crisis.
occurring disorder in terms of financial, Italy has also high debts. France is the
human, capital formation values, etc. most exposed to them.
In general, the crisis situation from the Germany highly exposed to the debts of
country combined with the costs of the euro Spain, Greece, Ireland and Portugal would
zone exit will determine at the social level, suffer if one of these countries would go
discontent and social revolts that may extend bankrupt.
to other countries in the region. The sovereign debt crisis highlights the
We think that a possible exit of a country importance of the banking system for each
from the euro zone, will happen only if the country, and how important it is the state’s
entire European and global context will agree and local capital’s control in the domestic
and will consider the country is ready for banking system, something that has not been
such a step. taken into account in some European
In order to get a more complete picture of countries.
the problems that the countries from the euro
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Volume XIII, Issue 1/ 2013
Netherlands, the fifth largest economy in country has exacerbated the problems caused
the euro area faces major problems such as a by the losses due to the debt cancellation
mortgage debt of the highest in Europe, small program of Greece and the decline in the
exports, the European crisis, etc. Of the four housing market. Going forward with the idea,
largest Dutch banks, SNS Reaal and ABN it can be said that the Cypriot banks have
Amro have been nationalized, and ING has been encouraged to invest in the government
received in 2008 funds that it has not still bonds of Greece. Thus, a few years after the
fully paid back to the state. adoption of the euro, Cyprus has come to the
Direct or indirect subsidies granted by situation to be forced to seek financial aid
governments (which leads to increased public from the euro zone whose operation is
debt) and the use of very cheap lines from the currently perceived as rigid and extremely
central banks to the financial sector, in some compelling.
cases meant to avoid bank bankruptcies, is a The agreement between Cyprus and the
main issue in Europe. consortium consisting of the International
The public debt crisis is not the main Monetary Fund, the European Commission
crisis showing in the euro area. According to and the European Central Bank aims at
some economists [1], the euro zone crisis is removing the uncertainties and the danger of
primarily a balance of payments crisis and a forcing Cyprus to exit the euro zone. The
banking crisis. The original cause of the euro harsh conditions enforced on Cyprus by
zone crisis can be found in the institutional Germany and the IMF aim at reducing the
arrangements and in some of the policies country's oversized banking sector (about
implemented. The situation is due to the eight times the GDP). But if by this
heterogeneity between the member states of Agreement it will be destroyed the country's
the European Monetary Union and it raises financial sector, which is the engine of the
the problem of the divergence on making economy, affecting Cyprus’s ability to pay
joint decisions with impact on the economic back its foreign loans, then the negative
development. Thus, the adoption of a joint effects over this country will be numerous
decision can produce contradictory effects and powerful.
between countries. For example, in the case Cyprus passes through a deep crisis
of asymmetric shocks, due to structural considered a "systemic risk". The European
differences at the level of EMU, the proposals to close the second large bank of
implementation of a single monetary policy the country, Cyprus Popular Bank, in which
meant to counteract the negative effects, will the state holds 84% of shares, to restructure
often have under-optimal effects, at least for the Bank of Cyprus with large losses for
some Member States [5]. depositors could have very extensive effects
Prof. D. Daianu stressed repeatedly that in Europe, and even around the world.
the euro zone crisis is connected with that of The policy strategy chosen in Cyprus is
overfinancialization of economies [1]. very similar to the solution, which has been
Continuing this idea we mention that adopted in the case of Iceland. Iceland
between the financial system (especially, the allowed its three largest banks to fail as part
banking system), which assesses the of the solution to the banking crisis that
economic performance and the risk struck the country in 2008. The Icelandic
characteristics of the economy, and the real experience could hold many lessons for
economy, it must exist a “right” relationship, Cyprus, since the impact of the re-structuring
which has been neglected in the euro area could be similar. One of these refers to the
countries. fact that Cyprus will need to reinvent itself.
The overfinancialization of some The Icelandic experience has also shown
economies, in general, in this case of those that capital controls, once in place, are
from the euro area, can lead to the outburst of difficult to dismantle. Capital controls should
a financial crisis of vast proportions, if there be carefully studied so as to minimize the
is no effective regulation and supervision. strain on businesses, as well as the
Sometimes the fulfillment of these disincentives for the banking sector to
requirements is not enough. Thus, in the case effectively restructure. This will be the case,
of Cyprus, the large size of the financial for instance, if restrictions on domestic
system relative to the total economy of the transfers or on loan restructurings are
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imposed. This type of restriction will not fragmentation of the euro area since during
only deter depositors from undertaking a the last years there has been a phenomenon
sensible diversification, but will also lead to of banks’ withdrawal from other countries,
complacency on the part of banks. [6] phenomenon that causes undesirable,
There are alternative strategies for solving dangerous and worrying effects (the
a banking and financial crisis. But there is a complication of the effective monetary
theoretical premise that is important to put in transmission mechanism in the euro area, the
practice: the financial sector is based on trust. prevention of free movement of capitals, the
Whatever the plan is, it should be coherent isolation of problems banks from the euro
and explained clearly and transparently, so area, etc.).
that agents’ expectations are anchored in the In the process of creating EBU, a series of
success of the plan from the outset. divergent interests confront, namely those of
Destabilizing leaks or statements that are the states from the euro area with those
later withdrawn should be avoided. In the outside it, of the countries financially sound
case of a banking crisis it is even more with those of the countries with problems
important for policy-makers to treat that are ever more.
communication as an important component
of the policy toolkit, because the 3. Conclusions
communication strategy of policy-makers
anchors expectations and builds credibility. From the facts presented above, it can be
What concerns the recent policy actions in concluded that in Europe a "bundle" of crisis
Cyprus to resolve its banking crisis has gather way, such as the euro zone crisis,
shown that a well structured communication which is primarily a balance of payments
strategy has been conspicuously absent. [6] crisis and a banking crisis, but also a
We emphasize that given that in other sovereign debt crisis and a crisis of an
European Union countries (Ireland, Iceland, economy overfinancialization.
Malta and Luxembourg), the financial assets It also can be noted that the euro zone
exceed several times the GDP, the crisis arises from inappropriate institutional
imbalances in this respect being even bigger arrangements and from the implementation
than in Cyprus. of macroeconomic policies in an
A connection can be made with the fact heterogeneous medium (the euro area
that everything happens in a period of control Member States).
consolidation in the euro area financial In this situation, it is not surprising that
sector, of implementation a comprehensive after a period of time, in some of the euro
financial reform agenda in response to the zone Member States, the national
financial crisis. disequilibria enhanced and under the pressure
In the euro area, given that the banking of the international financial and economic
system has shown major weaknesses during crisis they have exploded. In the case of
the crisis, it has been decided that the first some countries, we can even say that their
area to work to is the banking integration. entry into the euro zone, at the moment when
Thus, the European Commission requested it had taken place, has been an error and that
the creation of the European Banking Union the geopolitical reasons prevailed at the
(EBU), which intends to achieve a substantial expense of economic logic.
reform program in the field of the Single The functioning of the euro area is at
Market regulation, program, which is in present rigid and very burdensome. The
progress [7]. austerity terms agreed by European Union
By creating the EBU, the European Union member countries with the European Union
wants to restore confidence in the euro. Also, and the international financial institutions for
the creation of EBU means ensuring a unique obtaining access to external financing are
framework for handling "problem banks", the difficult to fulfill.
standardization of the schemes for Due to the serious problems faced by an
guaranteeing banking deposits, as well as a increasing number of euro area countries,
mechanism of fiscal aid from governments. they have taken into consideration the
The establishment of EBU is considered possibility of exit from this union, which will
to be important in order to avoid the present have important consequences for both parts.
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4. References
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Moldovan Nicoleta–Claudia
Corduneanu Carmen
West University of Timișoara,
Faculty of Economics and Business Administration
nicoleta.moldovan@feaa.uvt.ro
carmen.corduneanu@feaa.uvt.ro
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manufacturing technologies but also the of the produced damages in the price of the
citizens’ decisions concerning the domestic good or economic service generating the
energy consumption, are made according to pollution, which destroys the environment
the information included in prices and the tax respectively.
can change the price and integrate the In comparison with the approaches based
external costs, then the environmental taxes on regulation, there is also an economic
together with the economic instruments approach based on the signal transmitted by
represented by the direct regulations, the prices on the market, as the environmental
certifications on the greenhouse gas taxes are incorporated in the prices of the
emissions, the grants and financial benefits produced or traded economic goods as well
may represent an instrument of the as the manufacturing prices. Companies shall
environmental policy. be interested in the polluting emissions’
At the business environmental level there reduction when the cost of these efforts shall
is however the fear that the environmental be lower than the fiscal cost. An alternative
policies can reduce competitiveness and to the economic approach is the voluntary
influence the economic growth negatively. approach, consisting in the participation of
This fear is not justified in the opinion of the companies to public programs and
Porter [7], who affirms that the negotiated agreements as they would be more
environmental policy might be beneficial for successful regarding the impact on
competitiveness, because the costs of competitiveness. However, a study made by
conformity with such a policy can be fully OCDE [5] recommends the caution
balanced out through innovations generating concerning the specific instruments of the
competitive benefits which should allow three approaches, as their economic
companies in question to receive the “first efficiency is reduced due to the behaviour of
mover advantage” in the area of technologies certain companies trying to circumvent the
which have a market potential in the future. regulations and environmental taxes.
In his opinion, the strict standards on the Accordingly, we consider that it would be
products performance together with the more efficient for the environment protection
product safety have an impact on the to establish certain performance objectives
environment, contributing to the updating of on environment protection at the level of
technologies and the formation of each company.
competitiveness advantages. Subsequently, in The environmental taxation brings
a work published in 1991, he insisted on the resources to the budget without generating
fact that well-conceived environmental welfare losses because integrating the
policies can generate efficiency incomes in external costs in the equilibrium of markets
production through innovation and therefore, presents a static efficiency but also a
an absolute advantage of innovating dynamic one through the fact that it
companies in regard to the non-standardized encourages the reduction of these costs. In
ones. Accordingly, Porter and Linde [8] order to assort the environmental policies
suggested the quick enactment of some new with competitiveness, the environmental
environmental standards which, in authors’ taxes can be used to fund the decrease of
opinion, represent a competitiveness factor. taxes and fees on the working factor which is
Although the regulation allows the direct not related to the polluting emissions, but
targeting of the polluters, the encouragement also the measures intended to support the
of the innovating processes and structural competitiveness.
competitiveness, however due to its Introducing the environmental taxes can
inflexibility, the environmental taxes and create competitiveness issues on short term at
markets of the greenhouse gas certifications the sector level, but by fact that they force
are preferred. These economic instruments companies to replace the old technologies
encourage the innovating processes and with new nonpolluting ones, we ensure a
competitiveness implicitly, being more reconciliation of the environment policy with
efficient from the economic perspective. the one regarding the competitiveness
Practically, through the environmental taxes support. The fact that the environmental
we intend to change the behaviour of the policies imply for companies a cost related to
polluting companies, by integrating the cost the renunciation to the use of polluting
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technologies, they are concerned with the costs and benefits for man and society
impact on profitability. It is obvious that if correctly [4].
the costs of the compensations related to the The environmental taxes seem to present
produced damages are higher than the costs a serious challenge for company
needed to reduce or avoid pollution, then competitiveness, their existence implying
from the economic perspective, this costs’ that they are applied to all goods affecting the
substitution is efficient. environment. On the other hand, they
represent an incentive to improve the
3. The environmental taxation and environment performances of the companies.
competitiveness in the European Union In this case, the Business Council for
Sustainable Development states that “a lot of
In order to prevent the emergence of the waste reduction programs and
unwanted modifications to the planet climate environmental programs for the business area
system, the political decision makers agreed economically healthy and offer positive rates
that a general operative framework is needed of profitability in relative short periods of
to include political and economic measures time” [9].
designed to reduce the global warming and Notwithstanding, there is a significant
prevent the emergence of the climate discrepancy between such a conclusion and
changes. The objective of the United Nations the business environment which considers
Framework Convention on the climate that the environmental policy and especially
changes in 1992 was “to achieve the the environmental taxes represent a major
stabilization of greenhouse gas threat to the competitiveness increase. But if
concentrations in the atmosphere at a level companies lose their competitiveness, they
that would prevent dangerous anthropogenic lose in their market share, become less
interference with the climate system. profitable and eventually, they give up on
The impact of the environmental policy business.
on the economic competitiveness of The analysis of the macroeconomic
companies, sectors of activity and indicators calculated by various entities and
competition on the internal market integrated foundation reveals the difficulty of
to the regional level, represents one of the highlighting all factors influencing on the
European Commission concerns in the last economic competitiveness of the countries.
two decades [2]. The European Commission In order to see if there is a relation between
established that in order to get correct prices competitiveness and the fiscal instrument
and create incentives for an economic used for the implementation of the
behaviour in favour of the environment environmental policies we shall compare
protection, the member states can use Global Competitiveness Index (GCI) to the
economic and fiscal instruments to value of the fiscal collections derived from
internalize all the external environment costs the environmental taxes.
contracted during the entire product lifecycle
so that the environment favourable products Figure 1. Global Competitiveness Index and
shouldn’t be disadvantaged from the point of environmental taxation at the level of the EU
view of the competition, in comparison with member states in 2010
the products determining pollution and
wastes [3].
The European Commission adverted that
the economic decisions are largely made
according to price signals. As the consumers
adapt the purchase decisions according with
the price changes and the companies
determine the product design, the
technological development and the
organization of the manufacturing process Source: The World Economic Forum,
largely according with the market prices, it is Eurostat, data processed by the author.
essential that these prices reflect the total
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States such as Netherlands and Denmark %), Bulgaria and Cyprus with 2,9 %. Values
have the highest level of environmental taxes between 2,8 – 2,5% were registered by
in GDP. Other states in the top of the Finland, Sweden, Great Britain, Hungary,
European most competitive economies such Poland, Italy and Portugal. Practically, it
as Sweden, Finland, Germany, and Great seems that this fiscal instrument is
Britain have a high level of the insufficiently used to support the
environmental taxation. Instead, in the states environmental protection policy. Moreover,
which made the object of the last two we must remark that their value is important
extensions but also in certain states of the in states with high Global Competitiveness
euro zone such as Greece, Portugal and Italy, Index, such as Sweden, Finland, Netherlands
the environment taxation is high. This and Denmark. Therefore, we cannot consider
observation is explainable because the that the decreased value in the 14 member
environment taxes as they are currently states is caused by the fact that governments
established don’t have an effect on the attached priority to competitiveness increase
competitive position of the member states, and to economies’ opening, considering that
the impact being at the sector and company the fiscal instrument would have a negative
level. impact. For a more correct image, the
Although there is an instrument for the analysis of the environmental taxes should be
environmental policy implementation, structurally refined at the level of the taxes
however, in order to attenuate the negative on resources, the taxes paid by the industrial
effects on competitiveness, there are multiple pollutants, the taxes on energy and transport.
exceptions and reductions to the sector level Figure 2. The value of the environmental
which vary from a state to another. Although taxes in the gross domestic product,
the member states agree with the 1995-2010
harmonization of the environmental taxation,
it is difficult to achieve as it needs the
existence of their unanimity. If a group of
states agrees to coordinate its efforts towards
harmonization the impact on competitiveness
is not completely solved because there isn’t
the possibility of the practice of neither an
external common tariff at their geographical
border nor a control at the borders between Source: http://epp.eurostat.ec.europa.eu, data
states. processed by the author.
In order to have a global image on the use
of the fiscal instrument concerning the In the same period, at the EU27 level the
environmental policy implementation in the value of the environmental taxes in total
EU member states, we shall analyze the value taxes dropped by 0,7%, given the fact that
of the environment taxes in the gross only in five member states their level is
domestic product and the total taxes taken below the European average in 2010, namely
respectively. in France, Belgium, Spain, Austria and
In the analyzed period (1995 – 2010), the Denmark. The highest values included
value of the environment taxes in GDP at between 10,7 – 9,2% were registered by
EU-27 level dropped by 0,3% against their Bulgaria, Slovenia, Netherlands and Malta,
decrease in 14 of the 27 member states. The followed by another group of states
analysis refinement at the level of the represented by Latvia, Estonia, Ireland,
member states reflects the existence of some Cyprus and Poland where the value was
substantial differences. In 2010, the value of between 8,8 – 8,1%. In Portugal, Greece,
the environment taxes in GDP exceeded the Romania and Czech Republic the value of
European average of 2,4% both in some of the environmental taxes in total taxes was
the old member states and in those which between 7,9 – 7,1%. While in most member
made the object of the last two extensions. states the importance of the collections
Denmark and Netherlands separate from the deriving from the environmental taxes
others with a value of 4%, being followed by decreased, in others they increased. However,
Slovakia (3,6 %), Malta (3,1 %), Estonia (3 although the increases were specific to some
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of the new states against the increase of the Denmark, Finland, Germany,
fuel excises, there are old states such as Netherlands, Sweden and Great Britain
Netherlands and Finland where the ranked among the reform supporting
contribution of the environmental taxes to the countries. The reform supporting countries
national budget financing increased during proceeded to the increase of the
the analyzed period. environmental taxes and used the additional
Figure 3. The value of of the environmental incomes obtained in this way to fund the
taxes in total taxes, 1995-2010 reduction of the taxes on salary incomes or
other incomes obtained by natural persons,
with the purpose of encouraging the
employment. In the same time, they
implemented measures referring to
reductions of the tax rates or reimbursement
schemes, in order to protect the
manufacturers against any negative effect on
competitiveness, deriving from the increase
Source: http://epp.eurostat.ec.europa.eu, data of the entry costs. The basic idea was the
processed by the author. transfer of the tax burden from the working
factor towards the use of the goods and other
In order to reduce the impact on environmental harmful activities, as a result
competitiveness through price, the Union of the impact on the cost exercised by the
opted for the application of the “double environmental tax.
dividend” principle to the environmental In order to study the efforts made by the
taxation. Practically, it consists in the member states in the direction of a reform on
reduction of other compulsory contributions environmental taxes, we shall analyze, at the
such as the contributions related to social level of the above mentioned states, the value
security paid by corporations or the reduction of the taxes on the workforce in comparison
of the salary tax in order to balance out the with the value of the environmental taxes in
fiscal cost generated by the introduction of total taxes. The performed analysis
the environmental taxes. A neutral effect on emphasizes that in Denmark, Netherlands
competitiveness would be if the and Finland, during the analyzed period, a
environmental taxes apply not on the reduction of the fiscal pressure on the
manufacturing place but on the consumption working factor occurred as the environmental
place, but we raise the question of the taxes increased, being interrupted by a trend
efficiency of achieving the intended reversal in 2001 and during 2007–2009
objectives through the environmental respectively. Except a few years, in Sweden,
protection policy. There are various other Germany and Great Britain increased or
solutions and exceptions, by which we can decreased the pressure on the working factor
limit the effects on competitiveness but the concomitantly with the increase or decrease
objective which must be taken into account is of the environmental taxes.
that by means of environmental taxation to The introduction of new environmental
encourage the formation of new less taxes or the increase of the existing ones
polluting technologies generating a big added determined the member states to adopt
value, the only ones capable to ensure both different strategies to reduce the actual fiscal
the real increase of competitiveness and the pressure on the industrial activities. As
environmental protection. Etkins and Speck [1] noted, the common
The commission suggested the reform of purpose of these policies was that of
the environmental taxes to simultaneously protecting the internal industries against the
promote the economic growth, employment risk of losing the competitiveness as a result
and a better quality of the environment. of the unilateral introduction of the
Actually, the suggestions aimed that the environmental taxes, as any type of tax which
increase of the environmental taxes should be is additionally added to the business costs
accompanied by a corresponding reduction of could affect the international competitiveness
other taxes, so that the global fiscal pressure of an activity or a sector.
remains unchanged.
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An important aspect regarding the European Commission back from 1991. But
environmental taxes and competitiveness is there were states which brought arguments
represented by the way of using the fiscal against it, appealing to the principles of
incomes generated by their taxation. In the sovereignty and subsidiarity, based on the
case in which these incomes are returned right of enacting their own taxes, so that the
under a certain form to the environmental tax impossibility of reaching a unanimous
payer companies, then their competitiveness, agreement at the European Union level on
on the whole, shan’t suffer, even if certain this topic has generated the impossibility of
gaps of competitiveness are identified at the enforcing the suggestion made by the
sector level. In the case in which the incomes European Commission.
deriving from the levied environmental taxes Even in a presumed context of
aren’t returned to the payer companies, then achievement of such a unanimous agreement
the effects generated on their competitiveness at the level of the EU member states, the
shouldn’t be compared to the non-taxation concerns regarding the competitiveness,
situations, but to the effects caused by the existing in the OCDE member states but at
increase of the same incomes and the the global level too, in our opinion, make the
achievement of the environment international harmonization of the
improvement through other possibilities. environmental taxes a difficult and long-term
The instauration of such taxes is designed process.
to include the costs of the damages produced
on the environment in the market prices of References
the goods and activities with a negative
impact on the environment, the purpose of [1] Ekins, P., Speck, S., „Competitiveness and
their implementation being that of increasing Exemptions from Environmental Taxes in
the incomes in order to fund the Europe”, Environmental and Resource
environmental policies, to induce Economics, Vol.13 (4), 1999, pp. 369-395.
[2] European Commission, Towards
environment less harmful models to the
Sustainability-An European Community
behaviour of the economic agents, and last Programme of Policies and Action in
but not least, to reduce the fiscal pressure on Relation to the Environment and Sustainable
the workforce, for the unemployment Development, vol. II, COM (92)23,
reduction. Bruxelles, 2004.
[3] European Commission, „Competitiveness
Conclusions Effects of Environmental Tax Reform”,
Final Report to the European Commission,
The effects of the environmental taxes on DG Research and DG Taxation and Customs
competitiveness can be attenuated by Union, 2007.
[4] European Commission, Enhancing economic
excepting or granting concessions for the
policy coordination for stability, growth and
vulnerable sectors, by performing certain jobs – Tools for stronger EU economic
adjustments of the customs or by the governance, COM(2010) 367/2, Brussels,
international harmonization of the taxes. 2010.
Each of these approaches also implies some [5] OCDE, Les approches volontaires dans les
negative aspects: the first one diminishes the politiques de l’environnement, Paris,2003.
tax efficiency and increases the cost for [6] Pigou, A. C., L’économie de bien-être,
achieving the presumed environment Dalloz, Paris, 1958.
objectives; the second one presents the risk [7] Porter, M., The Competitive Advantage of
of disguised protectionism and may infringe Nations, The Free Press, New York, 1990.
[8] Porter M., Van der Linde, C., „Toward a
on the international commercial standards;
New Conception of Environment.
and the third one is difficult to negotiate, Competitiveness Relationship”, Journal of
being perceived sometimes as coming in Economic Perspectives, vol. 9, n° 4, 1995.
conflict with the principles of the fiscal [9] Schmidheiny, S., Changing Course, Mass.:
sovereignty of the states and subsidiarity. MIT Press, Cambridge, 1992.
The ideal theoretical solution for the [10] Smith, S., Caicedo, E., Berger, A., Écotaxes:
attenuation of the environmental tax effects quels enseignements ?, Les Séminaires de
on competitiveness implies their international l’IDDRI, n° 8, Paris, 2003.
harmonization. a step forwarded by the
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The Liquidity of the Financial System and the Sovereign Debt Crisis in
Europe – Is There a Solution?
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to observe the dependence of the Euro-zone was not the case for Greek or Portuguese
banks on the quality of the sovereign bonds spreads of the sovereign debt. Their yields
issued by European periphery countries. increased dramatically after 2010.
The financial crisis of 2007-2008 and the This effect was determined by the loss of
global economic downturn have exacerbated confidence of the investors in the capacity of
the levels of the euro-zone sovereign debt, sovereigns of the European Periphery
reflecting the effects of automatic stabilizers, countries to meet their obligations. This loss
discretionary stimulus measures and official of confidence affected also the banks from
sector support to the financial sector. Beyond the euro area. Graphic 2 reveals the five-year
the initial liquidity crunch, many euro-area CDS premia on senior bonds issued by the
banks faced solvency problems, and national major banks from the selected euro zone
governments across the euro area stepped in countries, which had similar trends as the
to provide banks under their jurisdiction with spreads of the sovereign bonds.
funds or guarantees. In fact the sovereign debt crisis has
The IMF [14] estimates that total direct determined an increase of the funding costs
support for the financial sector, by the middle for the banks from the affected countries, and
of 2011 amounted to roughly 6 percent of impaired their market access. Banks from
GDP in countries such as Greece and Greece, Ireland and Portugal have seen their
Belgium, 13 to 14 percent in the Netherlands CDS premia rise to extremely high levels.
and Germany, and 41 percent in Ireland. The
level of sovereign debt in Ireland and Spain Graphic 2 – CDS premia for bank
increased dramatically over this period,
placing these countries next to Greece,
Portugal and Italy. This situation is easier to
follow observing the figures presented in
Table 2.
The financial crisis period also revealed
the fact that the euro area did not have a
common crisis management and resolution
framework. There were no backstops for
sovereigns and banks, so that the crisis had
severe effects on Greece, Ireland, Portugal,
Spain, Italy and Cyprus [17].
Retrospectively looking, the major cause
for the sovereign debt crisis in Europe was Source: BIS Quarterly Review, Davies and
the external debts of the European countries Ng (2011), Datastream, Bloomberg.
which exposed the banks from the euro area
to the sovereign risk as shown in Table 2 The banks from the European Periphery
[2,22]. countries suffered a drain up of the liquidity
through capital flows. During the crisis, the
3. Effects of the sovereign debt crisis investors from these countries shifted funds
into safer assets such as German bonds
The most important effect of the
which have benefited from the safe haven
sovereign debt crisis, combined with the
financial crisis was the decreased liquidity of status. There was a risk-averse "flight to
the sovereign bonds. If until the financial quality" process.
crisis the euro area sovereign bonds were Another consequence of the sovereign
considered without risk, regardless of the debt crisis doubled by the financial crisis was
issuer, from that moment on important the increased demand from domestic banks
differences were observed between countries. for their own government debt. Graphic 3
Graphic 1 shows these gaps between issuers, illustrate these trends for the period 2007 –
identified as spreads for 10 year sovereign 2011.
bonds. If the German had relatively constant A study conducted by Arslanalp and
sovereign bond yields, even with a Tsuda [3] identified the factors that
decreasing trend in the last few years, this determined this trend as follows: the global
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recession – that has reduced demand for bank 4. Measures taken by European Central
loans and, as a result, the banks had as only Bank
alternative to accumulate government debt
instead; bank deleveraging; Basel III and new Considering the internal and external
financial regulations; rising home bias; the exposures of the euro area banks to the
ECB’s long-term refinancing operations and sovereign debt, it is obvious that the default
changes in its collateral criteria. of a country, even the default of a sole one,
will generate a dramatic situation. This is
Graphic 3 – Euro aria: Banks holdings of valid not only for the euro zone financial
own government debt securities, 2007 – 2011 system, but also for the international
In percent of bank holdings of all euro aria financial system. To prevent the possible
government securities damages of a euro area country default, the
European Central Bank took a series of
measures since the beginning of the crisis.
One measure takes into consideration the
establishment of the European Financial
Stability Facility (EFSF). This facility was
instituted in 2010 and later will be
transformed into a permanent fund, the
European Stabilization Mechanism (ESM)
that will obtain funding from the
participating countries and will provide loans
Source: IMF, Arslanalp and Tsuda (2012), to countries in difficulties. What is to blame
IMF International Financial Statistics about this measure is the fact that the amount
collected from the euro zone countries is not
A Report of the Committee on the Global enough to cover the needs of the system, if
Financial System, conducted by Fabio there are more countries in possible default.
Panetta from the Bank of Italy in July 2011, At the same time, if the rate for the loans is
showed that sovereign risk adversely affect high that will be a signal to the market that
banks’ funding costs through several there is a significant risk of default and that
channels, due to the pervasive role of there is no trust in the success of the package.
government debt in the financial system. That will determine the investors not to buy
These channels determine the following sovereign bond issued by the country with
situations: the losses on holdings of problems. High interest rate also makes it
government debt weaken banks’ balance more difficult for the governments to reduce
sheets, increasing their riskiness and making their budget deficit and to slow down debt
funding more costly and difficult to obtain; accumulation [8]. But above all an
higher sovereign risk reduces the value of the institutionalized bailout facility would create
collateral banks can use to raise wholesale perverse incentives for countries to run up
funding and central bank liquidity; sovereign their balance sheets. The availability of
downgrades generally flow through to lower emergency cash has the potential to weaken
ratings for domestic banks, increasing their market discipline and create a moral hazard,
wholesale funding costs, and potentially since countries know that mismanagement of
impairing their market access; a weakening public finances would not carry heavy
of the sovereign reduces the funding benefits political or economic costs [10].
that banks derive from implicit and explicit Another measure of the ECB was to take
government guarantees [20]. increasingly large deposits from commercial
As the history of the recent crisis reveals banks in surplus countries and to extend
there is a bilateral linkage and influence increasingly large loans to commercial banks
between liquidity risk and sovereign risk. in deficit countries. Willing not to aggravate
This can determine a self-fulfilling crisis [1]. the developing collateral squeeze, ECB also
At the same time the inter-linkages of the reduced its reserve requirements, and
euro-zone markets and the similarities substantially relaxed its own collateral
between countries stimulate the contagion eligibility rules. These facts determined the
risk which will enable the systemic risk [11]. flight of the credit risk from the balance
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benefits and public wages [19]. [11] Gorea, D., & Radev, D. (2013). Euro Area
On the other hand, robust real GDP Sovereign Debt Crisis: Can Contagion Spread
growth also increases the likelihood of a from the Periphery to the Core? Social
major debt reduction because it helps Science Research Network , 2054696.
[12] Gourinchas, P.-O., & Jeanne, O. (2012).
countries to grow their way out of
Global Safe Assets. BIS Working Papers ,
indebtedness. The question is how will the 399.
euro-zone act to stimulate economic growth [13] Guerrieri et al., L. (2012). Banks, Sovereign
nowerdays? Debt and the International Transmission of
The problem seems to be much deeper Business Cycles. Board of Governors of the
considering the results of recent studies Federal Reserve System International
which reveal that above a 90-100% of GDP Finance Discussion Papers , 1067.
threshold, public debt is, on average, harmful [14] IMF. (2011). Global Financial Stability
for growth [5]. In the same study confidence Report, Grappling with Crisis Legacies.
intervals for the debt turning point suggest Washingron: IMF.
[15] Kilponen et al., J. (2012). Sovereign Risk,
that the negative growth effect of high debt
European Crisis Resolution Policies and
may start already from levels of around 70- Bond Yields. Bank of Finland Research
80% of GDP, which calls for even more Discussion Papers , 22.
prudent indebtedness policies. [16]Matziorinis, K. (2011). Is the 'Euro Bond' the
Answer to the Euro Sovereign Debt Crisis?
7. References What Outcomes can Investors Expect out of
Europe? Social Science Research Network ,
[1] Adler, G. (2012). Intertwined Sovereign and 1999518.
Bank Solvencies in a Model of Self-Fulfilling [17] Mongelli, F. P. (2013). The Mutating Euro
Crisis. International Monetaru Fond Working Area Crisis IS the Balance Between
Papers , 12/178. "Sceptics" and "Advocates" Shifting? ECB
[2] Allen, W., & Moessner, R. (2013). The Occasional Paper Series , 144.
Liquidity Consequences of the Euro Area [18] Muellbauer, J. (2011). Resolving the
Sovereign Debt Crisis. BIS Working Papers , Eurozone Crisis: Time for Conditional
390. Eurobonds. Center for Economic Policy
[3] Arslanalp, S., & Tsuda, T. (2012). Traking Research
Global Demand for Advanced Economy [19]Nickel et al., C. (2010). Major Public Debt
Sovereign Debt. International Monetary Reductions. Lessons from the Past, Lessons
Fond Working Papers , 12/284. for the Future. ECB Working Paper Series ,
[4] Blundell-Wignall, A. (2012). Solving the 1241.
Financial and Sovereign Debt Crisis in [20] Panetta, F. (2011). The Impact of Sovereign
Europe. OECD Journal: Financial Market Credit Risk on Bank Finding Conditions.
Trends , 2011/2. Basel: CGFS Papers BIS.
[5] Checherita, C., & Rother, P. (2010). The [21] Shambaugh, J. (2012). The Euro's Three
Impact of High and Growing Government Crises. Brookings Papers on Economic
Debt on Economic Growth. An Empirical Activity , 157+.
Investigation. ECB Working Paper Series , [22] Stein, J. (2011). The Diversity of Debt Crisis
1237. in Europe. CESifo Forum , 4.
[6] Darvas, Z. (2011). The Ten Roots of the Euro [23] Wood, R. (2012). The Economic Crisis: How
Crisis. CESifo Forum , 4. to Stimulate Economies Without Increasing
[7] Davies, M., & Ng, T. (2011). The Rise of Public Debt. Center for Economic Policy
Sovereign Credit Risk: Implications for Research Policy Insight , 62.
Financial Stability. BIS Quarterly Review .
[8] De Grauwe, P. (2011). Managing a Fragile
Eurozone. CESifo Forum , 2.
[9] De Santis, R. (2012). The Euro Area
Sovereign Debt Crisis. Safe Haven, Credit
Rating Agencies and the Spread of the Fever
from Greece, Ireland and Portugal. ECB
Working Paper Series , 1419.
[10] Fischer et al, H. (2011). Why the Greek
Meltdown Become a Euro-Zone Crisis. The
Whitehead Journal of Diplomacy and
International Relations , 43+.
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Neguriță Octav
Spiru Haret University
octavnegurita@yahoo.com
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predict how soon it can be implemented even Therefore, avoiding this Union would have
in the euro area. led to a complication of the economic
situation, on the banking plan in our country,
2. The need to amend the national since most banks would operate under the
banking system supervision of some banking organizations
that would evolve, in the other states,
After prolonged negotiations on the according to new financial principles.
mechanisms of institutionalization of the Romania could benefit from such a
European Banking Union it was in principle mechanism that has the potential to
established the start of the first phase of the strengthen the confidence in the banking
integrated banking supervision, starting system in the region, given that, the local
March 2014. The other three elements of the market is dominated by credit institutions in
Union do not have a specific timeframe to be the euro area capital. The main purpose of
applied. Romania is among the countries that the European Banking Union is to break the
are Banking Union Member States. One of link between heavily indebted governments
the main provisions is represented by the and the banks facing their own difficulties,
monitoring of large banks by the European the central element of the debt crisis that hit
Central Bank not only within the euro area, Europe in early 2010. While there are more
but also in the non-euro national banking banks holding capital from the euro area, that
systems. What draws the attention is not only by establishing this Union would give
the rapid development of such measures, but confidence to the respective banks, this
also the essential character of the provisions would have a positive indirect effect on the
of this Union, which reveal the importance of banking system in Romania. [4]
this new community bank concept, the more In recent years, the emergence of the
important for Romania. disintermediation phenomenon, as well as its
Currently, in the national banking system, impact on the real economy has become a
banks are still a sector with high privileges concern in Europe. In Romania, the
compared to other sectors. These have disintermediation process could consist of
special regulations on bankruptcy, reducing funding provided to local branches
refinancing at low cost, and low by parent banks or reducing lending to the
capitalization requirements. Also, banking private sector. In the current context of the
companies have the possibility to operate crisis, there has not been recorded in the
with a fractional reserve, allowing them to Romanian banking system a trend,
keep only a fraction of demand deposits in significantly enough to reduce funding by
their deposits. The rest of these demand parent banks. This is also demonstrated by
deposits can be used for crediting, even a few the relative degree of reliability of banking
times. In this way, these privileges can only companies in Romania. In recent years, the
lead to the increase of the moral hazard on solvency ratio has evolved between 14% -
the banks, that already exists, as well as to 15% representing higher levels of the
financial risks, more difficult to anticipate in prudential threshold of 10% recommended
these circumstances. We can add the problem by the National Bank, after the outbreak of
of limited capitalization of the banks, the international financial crisis. Those
indicator that reaches 14% for Romania. [2] values represent, nevertheless a dose of
There may be a concern regarding the economic optimism, especially since the
association of the Romanian banking system credit institutions in our country have
with this Banking Union, since our country is continuously evolved in an environment of
not a member of the euro area. It is also the austerity and uncertainty, by the persistence
problem of the other non-euro countries that of the effects of the financial and economic
have adhered to this economic concept. This crisis. According to the annual reports of
association comes naturally, especially that NBR, domestic banks held an action to
most of the banks’ capital, in the domestic minimize possible spillover effects, trying to
banking system, is held by banks from the adapt both to the new regulatory framework
euro area. Over 80% of the domestic banking oriented towards consolidation and to the
sector is owned by banks from the current requirements of the financial markets.
Community, represented by the euro area. [3] [5]
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3. The ECB role within the banking Treaty entered into force as of January 12,
system in Romania 2013.
Our country has a banking market
By adhering to the mechanisms of the generously dominated by foreign banking
Banking Union, Romania has accepted groups, overwhelmingly depending on the
subordination, at least partially of certain Eurozone markets. The economy is strongly
banking companies and under the supervision dominated by the euro and it records a lower
of the European Central Bank. The same as level of productivity and competitiveness,
in Romania there is only one Central Bank based on relatively fragile institutions in front
(BNR) that sets rules for all the banks in the of external economic pressures. The interest
system, in Europe as well there should be for the Banking Union is so natural, that once
only one central bank to impose rules for the formed, it will influence the domestic
banks in the system (ECB). Even if the banking system activity directly and
relations with other countries outside the EU indirectly.
should be developed, the reality is that at this There has often circulated the idea of a
moment, Romania's economic exchanges are passive politics of the Romanian banking
more than 80% with the European Union, system towards the evolution, at least for the
which limits a lot the directions that Romania moment, of the European Banking Union. If
can take on future development. [6] the problems of banks in the euro area were
So far, the ECB has proved that, it is an solved, it would be great because they control
institution that has successfully managed the most of the local banking system and
contemporary economic fluctuations, automatically this would be more solid.
especially the acute financial problems faced However, things are much more complicated
by several countries in the euro area. It has when we are dealing with them in terms of
often been drawn the attention to the the relations between the national authorities,
relatively passive role of the ECB within the according to the percentage of the foreign
national banking systems in the euro area, bank capital involved, the relationship of
suggesting the idea of the modification of the economic power or the degree of euro
monetary policy as stipulated. The integration.
establishment of the Unique Mechanism of Under these circumstances, it cannot be
Supervision comes to confirm the need to ignored the danger that this requirement of
change the role of the European Central the ECB to optimize the banking groups in
Bank, respectively the growing importance of terms of liquidity and capital could induce
this institution in the banking activity across resources movements, destabilizing our
the EU. The European Financial Stability country. However, the ECB involvement in
Fund (EFSF) and now the ESM (European the "Vienna Initiative" was meant to stop
Stability Mechanism) are seen as useful such a phenomenon after the outbreak of the
means to mitigate the cost of the financing financial crisis in late 2008. The collective
sovereign debt of countries in difficulty. guarantee of the deposit, when established,
Along with the Banking Union, the ESM will also raise a big problem. If it is imposed
could have the possibility to capitalize only for the euro area countries, the ECB will
directly the banks in danger of insolvency. not be able to prevent cash outflows from
In this context, the entry into force of the economies outside the euro area, if the latter
Fiscal Union Treaty, along with the attempts are perceived as less solid and the euro is
to institutionalize the European Banking intensely implemented, as it is the case of
Union is no longer accidental. This is Romania. In order to prevent such a situation,
explained by the fact that a banking union the guarantee scheme should be extended and
cannot work without tax arrangements, which there should exist financing lines
means common resources for intervention arrangements between the National Bank and
and burden-sharing. The financial transaction the ECB. These latter could also imply a
tax is mentioned as supply source of a substantial participation of the European
possible Eurozone budget. The transaction Central Bank to supply the ESM with
tax could be the source for the EU budget. resources.
Romania is a signatory state of the Tax Being included within the European
Banking Union would mean, for Romania, to
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have economic policies suitable for such a assigned another responsibility of such
structure and, in addition, to participate with complexity.
resources in financing the intervention Besides its role as central bank, the ECB
devices in the Banking Union. But it cannot has gained the role of principal financial
be denied the fact that Romania was able to support for indebted countries as well as that
absorb only 10% of EU resources that have of financier of the banks hit by the crisis.
been provided. This is an especially more This role is undermined by the financial
worrying situation as Romania has the balance and, on behalf of the Eurozone
obligation to pay contributions to the EU interest, contrary to its own status. In
budget. On the other hand, by direct addition, there has not been reached a
participation in the Functioning of the complete agreement with the EU States to
Banking Union there would be required other confer the institution the necessary powers. If
national resources, which would increase it recognizes the fact that the ECB is dealing
public debt. [7] with banks with systematic risk, then it
On short and medium term, there is a should be given the right to impose measures,
worrying situation, considering that Romania above the regulatory institutions in our
is one of the EU states with the lowest level country.
of public debt, especially related to the GDP. The responsibility to supervise without
On long term, the perpetuation of the low also having the power to intervene could
level of absorption of EU funds, combined represent a dangerous prerogative. This gives
with weak contributions to the EU budget, the feeling of a European regulation, but
and that of the Banking Union, may leaves all the power in the hands of the
significantly degrade the national financial National Bank of Romania’s authority.
system. From here to the European Central Therefore, if all goes well, then the ECB will
Bank intervention, in the role of ultimate have effectively no role. But, in the event of
creditor for our country, there is only one a crisis, the ECB could be held liable, which
step. [8] would represent a dangerous precedent in
Romania needs a rapid evolution of the legal and political terms. [9]
performance in absorbing the European Currently, the different structure of the
resources, in the use of public resources in banking system in Romania, the local
general as well as in increasing tax revenues. regulations, and also the legal and judicial
This actually means the overall functioning systems make it very difficult to apply a
of the economy, in order to benefit directly Community mechanism to guarantee
from participating to the European Banking deposits. Given that there are large European
Union. Such a development of performance banking companies, comparable in terms of
of the domestic banking system would numbers to those of the national income in
automatically lead to the adoption of the Romania, the domestic banking system could
euro. Only considering these issues we can have serious problems in participating to
justify the sense of direct participation to the deposit guarantees for all the banks in the
unique monitoring mechanism. States participating to the Union, limiting its
activity.
4. Issues on the application of the One of the solutions would be primarily
principles of the European Banking Union the development of the domestic capital
in the Romanian banking system market, so that the share of bank assets in
gross domestic product to decrease and the
One of the issues raised by the actual debt accumulated in the banking system not
existence of the Banking Union is the to affect significantly the economic
retention related to the supervision exercised development of Romania. Another solution
by the European Central Bank. This idea is to would be to establish a system of pooling the
limit that power, although within this project, risks associated with the deposits only at the
the ECB should monitor all the major banks retail banks level, not including investment
in and out the euro area. But since this banks, whose risk is still too high.
institution is the only strength pillar in the Recent economic developments warn that
debt crisis, it is not recommended to be there is a risk that the whole process of cross-
border integration to be destroyed because of
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the tendency of the European banks to self- extremely complex banking system, within
isolate. This economic situation recommends the European Union by a single institution,
and supports the creation of the European with relative experience in this field. [11]
Banking Union as a means to protect the
global banking system. The cross border 5. Conclusion
integration process has been developed and
enhanced over 20 years and it is in danger to The establishment of a single supervisory
be completely destroyed because of the authority is an essential condition in order to
containment measures taken by the banks in enable the direct recapitalization of the banks
Europe. These have undergone a series of by the European Stability Mechanism. In this
restructurings in an attempt to avoid another context, the European Council confirmed the
crisis. month of June 2013 as the deadline for
According to the project of the Banking reaching an agreement on the national
Union, the ECB will receive the power to frameworks better harmonized, on the
authorize and withdraw banking licenses in banking resolution and deposit guarantees.
Romania, to apply new rules on the The Commission will introduce by summer
requirements related to the banks’ capital and time, a single resolution mechanism for the
to perform stress tests and field inspections. countries participating in the MSU. This
It will also have the authority to supervise mechanism, that will include an effective
banks’ purchased or sold goods, and the right protection, aims to ensure the financial
to impose sanctions for non-compliance in stability in case of bank failures and to
the Romanian banking system. This aspect minimize costs for the taxpayers. The
has generated various criticisms, mainly European Council stated that the proposal
related to the issue of national sovereignty should "be considered as a priority" for its
over its own banking system and whether the adoption until the summer of 2014.
ECB will be able to fully understand the The European’s Commission Project,
specific problems of the banking activity in which requires strengthening the supervisory
Romania. [10] responsibility at the level of the European
It is not very clear which will be the Central Bank, for the larger banks in the
impact of the Banking Union package on our community space, has caused serious
country that is not part of the euro area. All disagreements. One of the friction points is
that it is said, is that our country should the connection between the 17 Member
cooperate closely with the European Central States of the euro area and the ten states
Bank, with the possibility for this bank to outside the Monetary Union, namely the right
have the same supervisory role in the other to vote in the future supervisory council of
non-member states of the euro area. The the ECB. In Romania, the euro area banks
involvement of the European Parliament or have a significant share in the banking
of other national legislative institutions will system. In recent years, it has managed
be limited to an advisory opinion role, which through its own important efforts to
generates the problem of potential authority strengthen the prudential parameters even
abuses from the ECB, which will assume the above the levels required in their home
control and supervisory roles of the most countries. Taking into account the expected
important European banks. developments, it is absolutely natural the
The governing rules of the European desire to avoid the error of these indicators,
Banking Authority, one of the three at least on medium term.
supervisors of the financial sector, created in Considering that the supervision of the
2011, is about to be substantially modified in banks with capital in the euro area, could be
this financial context. In the conditions when exercised both by an authority at European
it is already known the influence of the level (European Central Bank) or by the
European Parliament on the Banking National Banking Authority (BNR), it is
Authority, and the limitation of its absolutely necessary to clarify the issues
prerogatives, it would mean to limit the related to the decisions’ ranking. The
prerogatives of the European Parliament at cooperation framework between the
the banking level. The attention is drawn on centralized supervision at EU level and the
the risk regarding the management of the national supervisory authority, as well as the
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countries analyzed. In 2012, CPI increased officials were considered to be the most
from 3.6 in 2011 to 4.4, so the result is a corrupt.
lower perception of corruption by 0.03. If we Global Integrity Index (GII) quantifies
compare CPI the evolution of Romania to the the existence and effectiveness of anti-
EU average -27 we see a reduction in this corruption mechanisms that promote public
gap from 3.69 in 2006 to 2.77 in 2011. integrity. Integrity Indicators are assessing
Denmark, Finland and New Zealand are both the existence of laws, regulations and
tied in first place, recording the highest CPI institutions meant to stop corruption, as well
score of 9 points due to growth and the rules as their implementation and the free access of
governing the behavior of people in public citizens to those mechanisms. Global
office. Afghanistan, North Korea and Integrity Index can range between 0 and 100
Somalia occupy last place with a score of (Table 2).
0.8 due to lack of responsible leadership of
effective public institutions and lack of Table 2 Values of Global Integrity Index
concern for corruption. (GII)
Globally, areas perceived to be most
affected by corruption, are considered to be
those shown in Table 1:
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Paiusan Robert
Bucharest University of Economic Studies
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The candidate who claimed the honour to Tasca’s comments would be resumed usually
fill in the vacant position, maintained the without citing the source, in many writings
Commission, had to prove the in-depth on this theme issued in the last decades.
knowledge of economic science, of the Tasca’s change of attitude could be
doctrines and of its method. Or, the two explained at least partially, by political
registered candidates were far from meeting aspects. As an ambassador of Romania in
such demands, and therefore they could not Germany and the Netherlands, professor
be appointed. Instead, as the report stated, the Tasca felt he was bound to support the
Commission proposed the appointment in the appointment of Manoilescu, a favourite at
vacant position of Mihail Manoilescu, an that time of King Charles II in the vacant
engineer, an honors graduate of the position of the Polytechnic School. Later,
Polytechnic School of Bucharest, ‘though he after his fall from grace of the sovereign,
did not claim this teaching position’. This Tasca would resume the polemic dialogue
appointment was justified by the scientific with him.
activity of over 15 years (more precisely, 11 On 29 June 1931, the report of the
years, n.a.) when he approached the Commission including the recommendation
economic issues ’with the power of a for the appointment of Manoilescu in the
thorough connoisseur of the subject and of a vacant position was approved during the
passionate innovator’ [2]. meeting of the Board of Education. On 9
If for the two candidates, we could only July, the director of the School addressed to
suppose who the main author of the report the Minister of public instruction asking him
was, the appreciations on Manoilescu’s to act in this respect. The minister informed
scientific activity certainly belonged to him on 5 August that under the High Royal
Tasca. The latter had not only a higher Decree no. 2843 of 1 August 1931,
training in that line than the two members of Manoilescu was appointed full professor at
the Commission, but he was accustomed for the Department of Economic Sciences,
some time with Manoilescu’s economic Organization and Rationalization starting
ideas. with 1 September 1931 [5].
As a professor, Manoilescu was a
3. Manoilescu’s contribution dynamic and jolly presence, close to the
students. He would speak freely, with wide
Tasca used to mention among his digressions from the theme of the lecture,
writings, first ‘Théorie du protectionnisme et while keeping the text of the lecture on the
de l’échange international’, published in chair. Year after year he attempted to bring
Paris, in 1929. In a well-known review dated new elements, in point of contents, and of the
1930, he was critical about some basic presentation of the courses. Florin Manoliu
concepts introduced or redefined by and Cristian Petrescu were among his
Manoilescu, such as work productivity, net assistants.
value, individual and national gain a.s.o. [3] A topic that was constantly brought to the
This time, the tone of the appreciations was attention of the students was turning to value
much more benevolent: the courage and human personality, both at the level of the
boldness to elaborate a general theory of individual and at the national level. In every
protection made honour to the author. generation, he used to say to the students [6],
The theory built by Manoilescu started the relation between the valuable young
from three sentences, as Tasca called them, people and the mediocre ones maintained
depending on the factors which determined almost constant. Therefore, he pleaded for
the work quality, the opposition between the the careful widening of the number of
national and individual gain and the students, considering that a sudden raise –
differences between the international and claimed by some student organizations of the
individual exchange. Even if some of us, time – would inevitably lead to the
Tasca concluded, in a prudent note, did not degradation of the level of the educational
fully agree with his scientific approach, process. The student engineers, as
Manoilescu’s work remained the most Manoilescu said, gathered a too high number
brilliant economic book published by a of valuable young people, who were removed
Romanian author in the last decades [4]. from other professions. Flattering for the
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audience, even if not entirely confirmed by borders was distressing for a public
the statistics of that time, this fact could not personality with Manoilescu’s past. Under
be a reason of concern for the doctrinaire of such conditions, mid-August the departure
Romania’s industrialization, but – on the preparations for settlement in Portugal
contrary – of real satisfaction. started, which represented a triple advantage
An old custom required from the to be a neutral country, geographically
professors that in the inaugural lecture of protected against any foreign invasion and
every academic year, they should approach with a political system ideologically close to
from an original perspective, a theme Manoilescu. Besides, the Portuguese prime-
concerning the object of study, the minister Salazar was, at least declaratively,
methodology of the discipline and its an admirer of his writings and had urged him
interferences with other domains. The eight years before to continue his
inaugural lectures delivered by Manoilescu professional career, if need be, in his country.
between 1931-1937: Method in economic
sciences (1931), Economy, science, technics 4. Adverse events and consequences
(1932), Economic science and the engineer’s
career (1933), Spiritual autarchy in Acting in this sense, Manoilescu had a
economic science (1934), Economic science meeting on 23 August, in the morning, with
and collective ideals (1935), Mathematical the Ambassador of Portugal in Romania, who
method and the issue of human will in was at the time on Valea Prahovei. The latter
economy (1936) and Human will in economic assured him that he was instructed to grant
science (1937) would be published in the for the whole Manoilescu family the entrance
volume Attempts in the philosophy of visa for Portugal, which would occur in a few
economic sciences, edited in 1938. The days. His trip would take place by air from
volume was reviewed among others by I. Bucharest. But, just like on so may previous
Veverca in ‘Economic and Statistic Annals’, occasions during his life, the events took an
7-10, 1938. unexpected turn. After the act of 23 August
The academic lecture of political and the transformation of Bucharest in a
economy delivered by Manoilescu – battlefield, the variant of travelling by plane
including, besides the inaugural lectures, became too risky. Another way seemed safer:
other 21 lectures – was lithographed first by a boarding on a train with Romanian-German
group of students and published in 1933 and ethnics that would leave from Brasov to
1934. The course was reviewed among others Germany on 26 August. Manoilescu was
by M. Platareanu in the ‘Economic and assured he would have a train compartment
Statistic Annals’, 4-6, 1933. The author for the whole journey. But the declaration of
continued to complete his lectures and edited war between the former allies Romania and
them under the form of a Course of political Germany and the prospects of his internment
economy and rationalization, Bucharest, 446 as an enemy citizen (and, moreover, a former
pp, in 1940. dignitary) in a German concentration camp
His performance as a professor was removed this variant too. An important role
affected by his many concerns and interests. was played in this episode, according to the
Starting from here, some of his family memories of his nephew [8], the fact
contemporaries reproached him, more or less that leaving the country in a German train
directly, inconsistency and superficiality. The was equal, under the given circumstances,
most vocal of his critics reproached him that with desertion to the enemy, which would
not every economic heresy should be have disqualified him morally.
communicated to the students, despite the After the beginning of the academic year,
charm of novelty [7]. Manoilescu wrote to the rector of the
His removal from office had, just like his Polytechnic School on 8 October that, for
appointment, a political connotation. Before health reasons, he would settle temporarily in
the end of the courses in June 1944, Breaza and requested for a 3-month leave
Manoilescu had joined his family in refuge at starting with 1 November 1944 [9].
Breaza, where they watched greatly The new government in Bucharest made
concerned the development of the war. The his intention known to judge the dignitaries
fast on-coming of the frontline to Romanian of the former political regimes guilty for the
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country disaster, and for the territorial losses according to the note received by the
incurred by Romania in 1940 and for the Ministry of National Education [11].
political approach to Nazi Germany. In this
context, the former dignitary Manoilescu was 6. References
arrested on 12 October 1944 and brought for
hearings to the headquarters of the Police [1] The Polytechnic School of Bucharest, M.
Prefecture of Bucharest. The Rector of Manoilescu dossier, unnumbered page.
Politehnica (where his application had been [2] Idem, Report for the verification of the titles
registered on 14 October) distantly notified and papers of the candidates to the
Department of Economic Sciences,
that ‘as at the present you are under arrest,
Organization, Rationalization.
your application for leave is not approved’ [3] Paiusan, R., Confruntari de idei privind
[10]. evolutia economiei de piata, (Confrontation
Early February 1945, Manoilescu got ill of ideas on the market economy evolution),
of typhus exanthematicus and was transferred Bucharest, 1998, pp.44-47.
under guard to Colentina Hospital. There, he [4] Polytechnic School of Bucharest, M.
continued to be investigated between rounds Manoilescu dossier, Report for the
of treatment. In the hospital, Manoilescu verification of the titles and works of the
received the visit of his family and friends, candidates to the Department of Economic
with whom – according to a delation of his Science, Organization, Rationalization,
unnumbered page.
political adversaries – was eating
[5] Idem, no numbering.
delicatessen and was drinking champagne. [6] According to the memories of engineer Vasile
Developing a viveur image, partying while Ghiocel, former student of Manoilescu, in the
the rest of the population was affected by the academic year 1941-1942.
war and by indigence was meant to make him [7] Nicanor, P, Cand profesorii nu-s profesori:
detestable to public opinion and to prepare oglinda, (When the professors are not
his marginalization. professors: the mirror), in ‘Viata
Romaneasca’, 1935, pp 11-12.
5. Conclusion [8] Dinu, M. , Mihail Manoilescu – repere
biografice (Mihail Manoilescu – biographic
landmarks), in M. Manoilescu, Etica politica
Still unrecovered, Manoilescu was
(Political Ethics), Bucharest, 2010, p. 47-48.
reincarcerated at the police headquarters in [9] The Polytechnic School of Bucharest, M.
Bucharest on 19 May 1945. Two weeks later, Manoilescu dossier, unnumbered page.
on 2 June 1945, the Rector of Politehnica [10] Idem.
‘had the honour to inform him’ that he had [11] By Decree 1581, published in the ‘Official
been dismissed from the position of full Gazette’ of 24 May 1945 and registered at the
professor starting with 24 May 1945, Polytechnic School on 1 June 1945.
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Volume XIII, Issue 1/ 2013
Prada Elena
The Bucharest Academy of Economic Studies
elena.prada@gmail.com
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Volume XIII, Issue 1/ 2013
origin countries follows an inverted U-shape emigration flows to and from a country; a
relationship: total emigration rates are very country may report low net migration but
low for low income countries, higher for experience high immigration and emigration
lower-middle and upper-middle income flows.
countries, and decrease again for high - International Migration Stock % of
income countries (although they remain population is the number of people born in a
higher than for low and lower-middle income country other than that in which they live and
countries). Second, this pattern is different it also includes refugees estimated for a
for the migration rates of the tertiary particular period (usually a year) related to
educated, where no large differences in the total population of the receiving country.
emigration rates for the three groups of Comparing these two variables we can
developing and emerging countries is conclude that the last one gives indication of
observed, while high income countries have the immigration stock of a country.
noticeably lower emigration rates[5]. The set of exogenous variables used are:
GDP per capita – highlights the
2. Data and Method economic development of the analyzed
countries;
Data used for the study comes from Compensation of employees and
World Bank database, unfortunately for some Unemployment Youth, ages between 15
important variables there are limits on the to 24;
availability of data. Compensation of employees (at current
All variables are analyzed for the year prices) (ESA95, 4.02) is defined as the total
2010 for 28 countries of the European remuneration, in cash or in kind, payable by
Continent (Bulgaria, Romania, Latvia, an employer to an employee in return for
Lithuania, Hungary, Croatia, Poland, Czech work done by the latter during the
Republic, Slovak Republic, Portugal, accounting period. Compensation of
Slovenia, Greece, Cyprus, Spain, Italy, employees consists of wages and salaries,
France, Belgium, Germany, Netherlands, and of employers' social contributions.
Austria, Finland, Ireland, United Kingdom, education: Primary school enrollment;
Denmark, Sweden, Iceland, Norway, and health and demographic: fertility rate
Luxembourg). Croatia in 2010 was in process (the expected number of children born
of integration in European Union and she per woman in her child-bearing years),
will become a member on 1st of July 2013. life expectancy at birth.
Although there a limitation concerning Considering the methods involved in the
data availability, I have found and used a existing literature the main influence on
series of variables for covering both migration is reflected by GDP[6] or GNP
economic development and migration in used by Rotte and Vogler[14] instead of
order to identify if there is a correlation income or wage variable, where they’ve
between them. studied the migration from least developed
As endogenous variables I have countries ( from Asia and Africa) to
considered: Germany, by comparing the OLS model with
- Net migration is the difference between random effect panel model(two depending
immigration to and emigration from a given variables – asylum migration and inflow – in
area during the year (net migration is positive correlation with economic opportunities
when there are more immigrants than (GNP per capita ratio home/Germany),
emigrants and negative when there are more political situation and home country
emigrants than immigrants). Since many characteristics (urban population, distance to
countries either do not have accurate figures Germany)), they concluded that the total
on immigration and emigration, or have no inflows reacted to political freedom and the
figures at all, net migration has to be distances is significant only for Asia.
estimated. It is usually estimated as the According to World Bank Metadata, GDP
difference between the total population per capita is the final result of the production
change and the natural increase during the activity of resident producer units and it is
year. Net migration gives no indication of the often considered an indicator of a country’s
relative scale of the separate immigration and economic development. As we can observe
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from Table. 1. Luxembourg has the highest households, and even the investments in
per capita Gross Domestic Product, which goods.
clearly stands out from the other countries, at The correlation between GDP per capita
opposite stands Bulgaria and Romania. and the migration variables: international
migration stock and net migration can be
Table 1. GDP per capita rating for year shown by building a bar chart. For the figure
2010.Source: World bank Database. below I have used the data from a few
Last 5 important countries implied in the migration
Top 5 countries with countries with the phenomenon as sending and receiving
the highest lowest migrants.
GDP per capita GDP per capita We can observe that for Sweden there are
52222.5 Luxembourg 5633.9 Hungary more migrants than immigrants, though has a
high Gross Domestic Product per capita,
39970.2 Norway 5332.5 Lithuania probably this an effect of weather conditions,
unfortunately there was not any available
33943.1 Iceland 5011.2 Latvia data for the net migration and international
migrant stock besides the year 2010 to
32631.1 Sweden 2636.7 Romania compare the evolution of those variables.
The outstanding country is Luxembourg
30667.8 Denmark 2555.1 Bulgaria which has the highest Net migration and the
second highest international migrant stock,
having more immigrants than migrants. It is
A study based on data from renowned that Luxembourg has survived the
Eurobarometers on multinomial Logit model financial crisis and still it is considered the
is analyzing the macroeconomic determinants country with the highest standard of living.
(GDP per capita, Unemployment rate, Years Hence, people tend to migrate to countries
of schooling and Gini Index) of migration that offer better living conditions.
abroad intentions in Europe by comparing Romania has a high net migration and
two moments of time: 2002(UE10) and comparing it with the international migration
2005(UE15) – capturing the 2004 stock we can conclude that Romania is also a
enlargement of UE[15], the conclusion was receiving country.
that young educated people tend to migrate
between EU countries. Figure 1. The correlation between GDPper
An OLS model regarding British capita, International Migration Stock and
Columbia Net Interprovincial Migration was Net Migration. Source: World Bank
described by Schrier and McRae[13], in this Database.
model the dependent variable, the estimated
annual British Columbia net interprovincial
migration from 1985 to 1998, is studied
along unemployment rate and GDP for
determining a prediction equation on
Interprovincial Migration.
Yashiv and Levy[8] estimated OLS and
Fixed Effects regression models to examine
the effect of customary migration
determinants on the flow of migrants to Israel
Comparison between Israel, Europe and the
United States 1990‐2004.
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Luxembourg
Sweden
France
Italy
United Kingdom
Germany
Spain
Norway
-50.00 N 28 28
GDP Correl. 0.080 0.651
-100.00 per capita
Sig. 0.686 0.000
-150.00 N 28 28
GDP per capita (constant 2000 US$) Life Correl. 0.449 0.461
Net migration expect.
Sig. 0.016 0.014
at birth
International migrant stock (% of population) N 28 28
School Correl. 0.293 0.013
Assuming that there is a correlation enroll.
Sig. 0.130 0.947
between the exogenous and the endogenous N 28 28
variable described above, first we need to
Unempl. Correl 0.301 -0.160
show if there is any correlation between all
youth
the variables studied through Pearson
ages 15- Sig. 0.120 0.415
Correlation Coefficient by analyzing if each
24
dependent variable has a significant Pearson N 28 28
Correlation Coefficient with each
*. Correlation is significant at the 0.05 level
independent variables.
(2-tailed).
As it shows in the table below:
Net migration has strong linear
We can observe that there is a linear
correlation with life expectancy and
correlation between some variables and so
unemployment youth ages 15 to 24 – if
we can proceed to the Ordinary Least
net migration is positive it means that life
Squares Multiple Regression Analysis,
expectancy and unemployment youth
represented mathematically as:
ages 15 to 24 are reasons for migrating.
Y ' i 1 * X 1 2 * X 2 3 * X 3 .... k * X k
International migrant stock has strong
linear correlation with GDP per capita Where the Y’ is the endogenous variable and
and primary school enrollment – it means Xk are the exogenous variables.
that people settle into a country To explore the relation between migration
concerning its economic development and economic development I considered a
and the opportunities of education. various econometric models based on the two
endogenous variables.
First model refers to the correlation
between international migration stock and the
exogenous variables and the second has as an
endogenous variable net migration.
All OLS regressions described are
synthesized below into a table, where we
presented the coefficients and the
significance of all the variable of the models
above.
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Roman Angela
„Alexandru Ioan Cuza” University of Iaşi, Romania
Faculty of Economics and Business Administration
aboariu@uaic.ro
Șargu Alina Camelia
„Alexandru Ioan Cuza” University of Iaşi, Romania
Faculty of Economics and Business Administration,
s_alina_camelia@yahoo.com
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second part of the paper aims to highlight the institutions are NGOs or foundations
some key features of the microfinance system (22%), Non-Bank Financial Institution (20%)
in the European countries and to highlight the and microfinance association (16%), while
lending patterns practiced; the third part the lowest share is held by Savings Bank
emphasis some major evolutions recorded by (3%), Government Body (1%) and Religious
the European market of microcredit and some Institution (1%). The analysis in the case of
implications of the recent financial crisis. the European countries, based on the survey
Our research ends with conclusions. made by the European Microfinance
Network (EMN) for the period 2010-2011
2. The European microfinance framework underlines that in countries like Hungary or
and micro-lending models Spain over 50% from the institutions
participating to the survey are NGOs or
Microcredit is defined by the European foundations. Comparatively, in countries like
Commission as the loans under 25.000 euro Albania, Belgium, Finland, Lithuania,
for micro-enterprises, unemployed or Moldova, Romania, Serbia and Sweden the
inactive persons that wish to be involved in non-banking institutions are dominating
an independent activity or do not have access while in Bulgaria and Croatia credit unions
to the traditional banking services [4; 5]. and cooperatives are in top. A different
Through its destinations, the microcredit has situation is registered in Great Britain where
a vital role in the sustainability of the micro- 80% of the institutions from the survey are
enterprises, the development of new income Community Development Financial
generating activities, the creation of new jobs Institution. Overall, we can consider that
and the sustainability of the social and from an institutional point of view the
financial inclusion. The major role of the European microcredit market is characterised
microcredit results also if we take into by a high degree of heterogeneity.
account the key figures, that underline that
99% of the European start-ups are micro and Figure 1. The ratio of the different type of
small firms, while a third of these are created institutions in the European countries for
by unemployed persons [5, p. 5]. Overall, 2011
through its double role, economic and social,
the microenterprise can have a major
contribution to the fulfilment of the
objectives stipulated in the Europe 2020
Strategy, the achievement of a smarter, more
sustainable and more inclusive economic
growth.
The economic reality from the EU
member states underlines that the size of the
microcredit varies significantly from one
country to another, from values below to
values above the threshold established by the
Source: [2]
European Commission. As a result in the
European countries, especially in the EU
According to the target groups, the survey
member countries, there is no single
undertaken by the European Microfinance
definition for the microcredit, which makes
Network underlines that some suppliers are
for it to be granted by various entities, for
targeting the bankable entrepreneurs (like
example commercial banks, saving banks,
start-ups and microenterprises), while other
cooperative banks and also non-banking
suppliers are targeting the non-bankable
entities like microfinance institutions, credit
entrepreneurs, like financially excluded
unions, foundations, not for profit
people. This diversification of the
associations that predominantly are active at
microcredit suppliers makes the microcredit
national or regional level, or event on both
practices to be not only different from one
levels. The diversity of the institutions from
country to another but also from one
the European microcredit market is
institution to the next. In this context, the
underlined in figure 1 that shows that most of
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Volume XIII, Issue 1/ 2013
European Commission has enhanced its are: the creations of jobs (72% aiming such
preoccupations aimed at promoting and an objective), promoting micro enterprises
extending the best practices in the (69%) and SMEs (53%), followed by the
microfinance sector, publishing in 2011 an increase of the access to financial services
European Code of good conduct, the (49%). A smaller percentage have mentioned
encompasses recommendations and norms as a main objective social inclusion and
regarding the granting of microcredit’s [6]. poverty reduction (42%) and women and
Taking into account the type of business minority empowerment (39% and 33%
that the microfinance institutions are focused respectively).
on (see figure 2), the results of the survey
undertaken by the European Microfinance Figure 3. Main objectives of the microcredit
Network for the period 2010-2011 underlines suppliers in the European countries
that two thirds from these institutions are
aiming start-ups (81%), the existing firms
(72%), self-employed without employees
(72%), while less than a third are aiming
entrepreneurs in pre-start-up phase (29%),
informal businesses (28%) and social
enterprises (22%). The country analysis
underlines significant differences, thus if in
the case of most Eastern Europe countries the
microfinance institutions are focused only on Source: based on data from [2]
micro-lending, the situation is different in
Western Europe where the institutions are In close correlation with the main
focused on other operations. Such an objective of the European microcredit
orientation of the European institutions suppliers we can state that there are two
signals that they are in different stages of lending models [2], microenterprise lending
their business cycle, the Eastern European and social inclusion lending respectively (see
being more mature while the Western figure 4).While microenterprise lending aims
European being much younger (being the granting of loans to bankable or nearly
founded after 2000) and aiming a wider bankable microenterprises, social inclusion
range of operations. lending aims the self-employed individuals
that because of their socio-economic statue
Figure 2. Type of businesses aimed by the do not have access to banking services. If in
European microfinance institutions the case of the microcredit size both
categories are aiming the same amount (up to
25.000 euro), the differences appear in the
destination of the microcredit, thus: business
microcredit aims to support the
microenterprises and the self-employed while
personal microcredit aims the personal needs
and consumption of the client.
Through the distribution of the two
lending models the survey undertaken by
EMN underlines that social inclusion lending
is more practice by some microfinance
Source: [2] institutions, like all the microfinance
associations, 91% of the credit unions, 64%
Another significant aspect underlined by of the non-banking financial institutions. In
the survey undertaken by the European the case of these institutions the clients under
Microfinance Network (EMN) is represented the poverty level represent 13% from the
by the main objectives of the European whole lending activity [2].
microfinance institutions. Thus, the results of
the survey (see figure 3) underline that the
main objectives of the microcredit suppliers
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Volume XIII, Issue 1/ 2013
Figure 4. Lending models in the European specific to a country among which are: the
field of microcredit juridical framework, the existence of usury
laws, the inflation rate, the refinancing cost
of the microfinance institutions etc. Overall
in the case of the European countries
analysed we can observe that the granting
period is shorter in the countries where the
average interest rate is higher and the average
loan size is smaller.
Source: [2, p. 16]
3. Recent evolutions in the European
A significant characteristic of the microfinance landscape and the
European microcredit market is given by the implications of the crisis
average duration of loan and the interest rate
charged. Regarding the period for which a A first aspect that reflects the evolution of
microcredit is granted, this is between 6 the European microcredit sector is given by
months and 7 ½ years. According to the the number of granted microloans and their
survey undertaken by EMN almost two thirds volume. Thus, it is underlined that although
from the microfinance institutions are the number of microfinance institutions
granting microloans up to three years. A included in the surveys undertaken by EMN
cross-country analysis underlines the in the period 2003-2011 has been different,
existence of major differences (see figure 5). the data in table 1 show an important
Thus, comparatively with the Western development of the microloans sector. In this
European countries in some Eastern way we can observe a 7 time increase of the
European countries that have the most microloans number, from 27.000 in 2003 to
developed microfinance sectors like 204.080 in 2011 and a 5 time growth of their
Romania, Serbia and Bosnia-Herzegovina the volume, from 210 million euro to 1,047
period for which a microcredit is granted is million euro (see table 1).
extremely short as a large part of these loans
are granted for the working capital, involving Table 1. The evolution of the microcredit’s in
a smaller value and a shorter period. the European countries included in the
sample, for the period 2003-2011
Figure 5. Conditions for the microloans in Number Value (million EUR)
the analysed European countries 2003 27.000 210
2004 35.553 295
2007 42.750 394
2008 90.605 802
2009 84.523 828
2010 178.572 779
2011 204.080 1.047
Source: [2]
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average loan size from 9.641 euro to 7.129 The significant expansion of the European
euro [2]. The cross-country EU analysis microfinance sector has been stopped in the
underlines that in the Western European context of the recent financial crisis. As we
countries like Belgium, Finland and Ireland can observe from the data in table 1 the
the average loan size is well above the EU number of microloans has registered a
average, while the Eastern European negative increase of -7% in 2008 compared
countries, especially Romania, Poland and with 2009, for the first time since the EMN
Bulgaria register values well below the EU surveys stated in 2003. As a result of the
average loan value. economic recession, the increase of the
Through the distribution of the microloans firms’ bankruptcies, the diminishing of the
on countries, the EMN survey underlines in people’s income, the microfinance
2011 the existence of high disparities. Thus, institutions have registered a significant
on the one hand, if in Western Europe the growth of the non-performing loans that has
volume of microloans granted in 2011 by the determined an increase of the risk aversion of
microfinance institutions has been 680 the microcredit suppliers and implicitly the
million euro, representing 65% from the total diminishing of their offer. On the other hand,
volume of European microloans, while in the microfinance institutions have faced
case of the Eastern European countries the increased difficulties in accessing the
volume of microloans has been of 368 external financing sources as their price
million euro, representing 35% of total increased.
European microloans (see figure 6). On the Regarding the demand for microloans, it
other hand the significant discrepancies can be anticipated an increase of this, both
appear between the EU Western and Eastern for social inclusion lending and for
member countries also in the case of the microenterprises lending, especially in the
number of microloans but also on their European countries with a high
volume (see figure 2). A clue of the unemployment rate [8].
regarding the discrepancies between these The significant difference between the
countries underlined by the EMN survey [2] demand and the supply of microloans and
is reflected by the average number of also the major problems faced by the
microloans per institution, that was around microfinance institutions (for example the
1226 microloans in the case of the Western lack of institutional capacities, the lack of a
EU member countries comparatively with regulatory framework, lack of access to funds
1575 in the case of the Eastern EU member for lending and the covering of the
countries. This situation underlines that the operational costs) [9] underline the necessity
microfinance institutions from the EU for the support of the European microfinance
Eastern member countries are more sector by the national public authorities and
developed and mature that their Western the European decision makers. The public
peers. support of the microfinance sector is not an
easy solution taking into account that most of
Figure 6. Distribution of the microcredit’s the European countries are faced with a
between the European countries in 2011 significant deterioration of their public
finances situation.
Regarding the actions of the decision
makers at EU level, we can underline that in
the context of the negative effects on the
crisis on the microfinance sector, the
European Commission has intensified its
aiding efforts in this direction. In this way it
is worth mentioning the setting-up in March
2010 for the first time at the EU level of a
financing program for the European
microfinance sector known as Progress
Microfinance [10], that will allow the
Source: authors calculations based on data providers of microloans from the EU member
from [2] countries to increase the volume of their
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“Ovidius” University Annals, Economic Sciences Series
Volume XIII, Issue 1/ 2013
granted loans. Also, an important role in the Microfinance”, Consultative Group to Assist
supporting of the EU microfinance sector is the Poor, Washington, DC, 2002.
played also by the initiatives of the European [2] European Microfinance Network,
Commission [11]: JEREMIE (Joint European “Overview of the Microcredit Sector in the
European Union 2010 – 2011”, by Bendig,
Resources for Micro to Medium Enterprises)
M., Unterberg, M., Sarpong, B., EMN
through which the microcredit providers Working Paper, Brussels, 2012.
benefit from special guarantees and loans, [3] Kraemer-Eis, H., Conforti, A.,
and also JASMINE (Joint Action to Support “Microfinance in Europe. A market
Micro-finance Institutions in Europe), that overview”. EIF Working Paper 001, EIF
aims the development of the microloans offer Research & Market Analysis, 2009.
in the EU. [4] European Commission, “Microcredit for
small businesses and business creation:
4. Conclusions bridging a Market gap”, DG Enterprise,
2003.
[5] European Commission, Accompanying
Through the content of our research we document to the Decision of the European
have aimed at synthetically underling the Parliament and of the Council establishing a
recent evolutions of the European European Microfinance Facility for
microfinance market and its main Employment and Social Inclusion (Progress
characteristics. A series of key facts and data Microfinance Facility), ex ante evaluation;
provided by the surveys undertaken by the SEC(2009) 907, Commission Staff Working
European Microfinance Network show a Paper, Brussels, 02.07.2009.
significant expansion of the European [6] European Commission, “European Code of
microfinance sector, but the development of Good Conduct for Microcredit Provision”,
December 2011.
this being still in its early stages. Moreover
[7] Kraemer-Eis, H., Lang, F., Gvetadze, S.,
we can acknowledge the existence of some “European Small Business Finance
major disparities, especially between the EU Outlook”, EIF Working Paper 16, EIF
member countries determined mainly by the Research & Market Analysis, 2012.
regulatory and institutional framework. [8] Bruhn-Leon, B., Eriksson, P., Kraemer-Eis,
The recent financial crisis has left its mark H., “Progress for Microfinance in Europe”,
also on the European microfinance sector, EIF Working Paper 13, EIF Research &
that has faced a series of major problems. On Market Analysis, 2012.
the other hand, if we take into account also [9] European Microfinance Network,
the severe diminishing of the bank loans “Overview of the Microcredit Sector in the
European Union 2008 – 2009”, by Bárbara
supply we can consider that the microfinance
Jayo, B., Rico, S., Lacalle, M., Working
institutions would have the opportunity to Paper Number 6, Paris, 2010.
extend their activity. But, the recovery and [10] Decision No 283/2010/EU of the European
development of the European microfinance Parliament and of the Council of 25 March
sector depends significantly on the support 2010 establishing a European Progress
provided the national and European decision Microfinance Facility for employment and
makers, both through the increasing of the social inclusion, Official Journal of the
available funds for the microfinance European Union L 87/2 din 7.4.2010.
institutions and the encouragement of [11] European Commission, “European Union
different persons to invests in this type of Support Programmes for SMEs”, January,
2012.
institutions.
[12] Bercu, A., M., „The Opportunity to Identify
As future research directions we consider a Single European Tax. A Comprehensive
of interest an empirical evaluation of the Analysis”, Theoretical and Applied
social and financial performances of the Economics Journal, vol. 5(558)
microfinance institutions from various EU (supplement), 2010, pp. 389-394.
member countries. [13] Littlefield, E., Kneiding, C., “The global
financial crisis and its impact on
5. References microfinance”, CGAP, Focus Note No. 52,
2009.
[1] CGAP, “Microfinance Consensus
Guidelines. Guiding Principles on
Regulation and Supervision of
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Volume XIII, Issue 1/ 2013
Sandu Ioana
The Bucharest University of Economic Studies, Faculty of International Business and
Economics
ioanamarina18@yahoo.com
271
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Source: Based on Ciucu, C., Chivrigă, V., Toderiţă, A., Tornea, I., Consecinţele unei Zone de Liber-Schimb
Aprofundate şi Cuprinzătoare asupra economiei Republicii Moldova, European Institute of Romania, 2011,
pp. 34
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2015, consisting of duty-free access and 182.4 million dollars in 2001 to 1083 million
removal of quota for all goods, excepting dollars in 2011, whereas exports registered a
a few agricultural goods. Thus Moldova five times growth: from 431.4 million dollars
has become the only country in the ENP in 2001 to 2256.3 million dollars in 2011 [9]
(the evolution of 2006-2011 is represented in
having been granted such a preferential
Figure 1 above).
trading regime with the EU [8].
Out of the total 1651 million dollars
Part of the Association Agreement, the increase in exports for the given period, 55%
DCFTA (Deep and Comprehensive Free was represented by the growth of exports
Trade Area) would involve not only towards EU countries, while the increase of
'WTO minus' provisions – concerning imports from the EU contributed by 42% to
exclusively tariff reductions – but also efforts the total imports of Moldova (4299 million
to comply with advanced rules for opening dollars). Trade with EU countries, as well as
the services market, investment regimes and the total trade flows of Moldova have
government procurement, as well as for recorded high trade deficits within the last 11
adapting to EU technical and sanitary years.
standards. Given the more accelerated growth of the
As for the field of labour migration, country’s exports to EU, their ratio in total
mobility partnerships were created to deal exportation flows from Moldova increased
with issues such as illegal migration or from 32% in 2001 to 49% in 2011, reaching a
border management (the latter has been peak of 52% in 2008 and 2009 (Figure 2
addressed through the EUBAM mission), and below).
Moldova has been among the pilot countries Even if, for 2010, exports to EU have
to sign it in June 2008. grown slower than the ones to other
destinations, in 2011 this situation improved
Figure 2. The ratio of trade flows to EU-27 in the total trade flows, %
Sursa: Based on Ciucu, C., Chivrigă, V., Toderiţă, A., Tornea, I., Ibidem.
Pursuing the expected positive spillover by 1.5 percentage points. The reduced ratio
effects of developing a free trade area with of EU in the total Moldavian exports might
the EU through soft coordination, Moldova be explained by the slower recovery of EU
has been continuously adapting its trade economies after the crisis, as compared to
policy ever since the initiation of the DCFTA other trading partners, respectively reflected
in early 2012. in a lower increase of demand in Moldavian
Nonetheless, progress in bilateral trade goods versus other source destinations.
has been registering steady growth after Imports, on the other hand, have lessened in
2000. Imports increased six times: from
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ratio over the analysed period, from 48% in gain structural power of negotiation with the
2001 to 43% in 2011. leaders of the giant Single Market.
Exports towards EU have enhanced after
the introduction of GSP+, in January 2006, References
by 94,3 million dollars up against 2005, their
ratio in total exports rising by 10.5 [1] Dreyer, Iana, “Trade Policy in the EU’s
percentage points, from 40.6% to 51.1%. Neighbourhood. Ways Forward for the Deep
This situation could have been equally due to and Comprehensive Free Trade
the Russian embargo set in 2006 on Agreements”, Notre Europe – Institut Jacques
Delors, 2012, available at: http://www.notre-
Moldavian alcoholic beverages, animal and
europe.eu/media/I.Dreyer_TradePolicyInEU
vegetable products. However, the next two Neighbourhood_NE_May2012.pdf, pp. 15.
years, exports to EU have increased by 140 [2] Wallace, Helen, Pollack, Mark A., Young
million dollars, what can be only attributed to Alasdair R., Elaborarea politicilor în
the GSP+ liberalisation. Uniunea Europeană ediţia a 6-a, European
Institute of Romania, 2011, pp. 348-349.
Conclusions [3] Mocanu, Oana Mihaela, Politica Europeană
de Vecinătate. Realizări şi perspective,
Taking part in the Eastern Partnership has Nomina Lex, Bucharest, 2010, pp. 221-222.
brought Moldova a strong belief in a new [4] Wallace, Hellen, Idem, pp. 332.
[5] http://www.enpi-
orientation towards the EU. The electoral
info.eu/eastportal/content//743/The%20Easte
crisis of 2009 has been successfully rn%20Partnership
overcome, as the Alliance for European [6] European Commission, Communication from
Integration has given proof of Moldova’s the Commission to the European Parliament
willing to adhere to EU norms and and the Council, Eastern Partnership, COM
regulations and comply with the European 2008 823 final, the 3rd of December 2008.
normative power. [7] European Commission, Communication from
Nevertheless, strong reforms are to be the Commission to the European Parliament
accomplished by the Moldavian authorities and the Council, Eastern Partnership,
by the time all targets included in the COM(2010) 207, the 12th of May 2010,
available at:
Association Agreement will be fulfilled. The
http://eur-
most challenging of all is the pathway to lex.europa.eu/LexUriServ/LexUriServ.do?uri
creating a Deep and Comprehensive Free =COM:2010:0207:FIN:RO:PDF, pp. 6-8.
Trade Area with the EU, comprising not only [8] http://www.mfa.gov.md/din-istoria-rm-ue/-
of liberalisation with the Single Market in the [9] National Bureau of Statistics of the Republic
manufactured goods, but also a progressive of Moldova, data available at:
free trade in agricultural goods, services, in http://www.statistica.md/category.php?l=ro&i
adapting sanitary and technical procedures, dc=336
as well as in defining the government
procurement sector and investment regimes.
Trade flows against the EU has shown a
steady growth in both exports and imports
with member states since 2000. However, the
EU does not seem to benefit in the same way
from open trade relations with small
countries such as Moldova, both because of
the feeble dimension of the Moldavian
market and of the types of goods imported
from its neighbour (mostly alcoholic
beverages, soft goods and some animal and
vegetable products).
Along with the DCFTA agreement that
would help Moldova gain some competitive
advantages on the EU market, strong political
reform is yet to be undertaken in order to
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Şeitan Silviu-Marius
Center of Financial and Monetary Research – Victor Slăvescu
Romanian Academy
silviuseitan@yahoo.com
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GE2. The finality of the process of European economic cooperation with two multitudes
integration corresponds to the pattern of established on the criterion of two distinct
classification of the multitudes based on the values of heterogeneity; the possible
limit values GE1Min and GE2Min: the continuation of the process of integration will
possible continuation of the process of be resumed after the lapse of a medium or
integration, after a medium or long (most long period, when the minimal set of
probably long) interval, towards a GEunique operational principles of the regional
whose threshold value will be GEmin; the macroeconomic system will have been met,
condition of such continuation of the process according to the previous statements.
of integration would be: Regarding the approach of the current
situation, and from the perspective of the
GE1Min ≈ GE2Min, international risks, we need to take into
consideration the possible depreciation of
- limiting, by design, the process of some already acquired European values, case
European integration to a single multitude in which the regional economic-
corresponding to a GE, GEmin respectively, administrative pattern may move closer to the
with the following relations in relation with second pattern presented above, i.e. limiting,
the previous scenario: by design, the process of European
integration to a single multitude, accepting a
GE > GE1 higher GE and a corresponding higher
GE ≥ GE2 GEmin, while the depth of the process of
integration/economic cooperation will
and necessarily be lower.
All these economic and administrative
GEMin > GE1Min patterns proposed for the construction of a
GEMin ≥ GE2Min. regional pattern based on economic
cooperation must lead, in the acceptation of
Regarding the formation of these this analysis, to the promotion of a single
multitudes of components included in the vision; this should also be the reason for the
large multitude corresponding to the regional national macroeconomic affiliation to that
pattern of economic cooperation, we have the particular system, i.e. acquiring a higher
following relation: the larger is the number of economic and social standard compared to
entities composing the multitude, the higher the situation of non-affiliation to the regional
will be GE and GEmin, respectively. system.
Regarding the depth of the process of
economic integration (same as in the case of 3. The necessity if reviewing the process of
the processes of economic integration), the European integration given the current
larger is the number of entities composing international context
the multitude, the higher will be GE and
GEmin, which, in terms of the administration Regarding the current state of the
of the internal risks of the system, will European Union, we have the case of the first
necessary require a lower depth of the scenario described above.
process of integration/economic cooperation. The current international macroeconomic
Regarding the association between the situation revealed the following main
analysed economic pattern and the current problems within the European Union:
case of the European Union, in the - the high level of heterogeneity of the
acceptation of this analysis and given the composing national macroeconomic entities
current circumstance, it is more appropriate in relation with the depth and speed of the
to continue the process of European process of European integration, reason why
integration according to the first scenario it was not yet possible to establish a regional
mentioned above: limiting, at this moment, in structure with an administrative capacity able
order to ensure the administrative capacity to administer the risk, shocks and
required by the current international macroeconomic effects due to situations like
macroeconomic situation, the process of the economic crises, or to allow the member
European integration to the pattern of states to establish their own operational
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Starting from the administrative pattern As final conclusion, the current pattern of
presented earlier, these coordinates will the European Union must be reviewed and
depend mainly on the number of multitudes redesigned so as to ensure a correspondence
composing the regional system and on the between the current and potential resources
level of heterogeneity associated to this on the one hand, and the assumed objective,
pattern. on the other hand. The current functional
In the acceptation of this analysis, the deficiencies of the macroeconomic system of
current macroeconomic stage of the process the European Union have been also
of European integration is due mainly to the emphasised by the risk phenomena at the
fact that the political decision-making factor international macroeconomic level, in the
has been considered – and has therefore acted absence of which the designed pattern would
accordingly – as having a higher importance have had a higher probability of
than the macroeconomic decision-making implementation with a much lower degree of
factor. erosion.
Starting from this aspect, as solution for
the sustainable evolution of any References
macroeconomic system, we propose the
establishment of a consolidated decision- [1] Dumitrescu, Sterian;Ion, Niţă, Ciochină,
making fundament, by the establishment, at Iuliana. Construcţia europeană: Uniunea
the institutional and conceptual levels, of a Europeană. – Piteşti, Editura Independenţa
Economică, 2005.
medium of cooperation between the political
[2] Tofan, Mihaela. Integarea României în
decision-making factor and the structurile Uniunii Monetare Europene –
macroeconomic decision-making factor, as Bucureşti, Editura C. H. Beck, 2008.
essential factors, reciprocally independent [3] Tudorel, Ştefan;Beatrice, Andreşan –
and with equal weight, of the economic- Grigoriu. Tratatele Uniunii Europene:
social evolution. Versiune consolidată. - Bucureşti, Editura
Hamangiu, 2007.
4. Conclusions [4] *** - Enciclopedia Uniunii Europene. -
Bucureşti, Editura Meronia, 2006.
Within such context, both the level of the [5] *** - Tratatul privind aderarea României
la Uniunea Europeană. - Bucureşti, Editura
macroeconomic entities forming the
All Beck, 2005.
European system, and the level of the system [6] *** Maastricht Treaty – February 1992
of the European Union, in the acceptation of
this analysis, should review the progress of
the process of European integration starting
from the following priorities:
- implementation of programs for the
administration of the present risks and of the
effects that have already been induced into
the system;
- configuration of a macroeconomic
administrative system having the minimal
necessary capacity to administer the risks and
the situations presumed by the complexity of
the level of real economy development; given
the main characteristics of the European
system, in the acceptation of this study, such
direction of action is optimally built starting
from the implementation of specific national
programs depending on the variety of the
national macroeconomic systems; depending
on the evolution of the process of European
integration, this system should become
unitary at the scale of the entire European
macroeconomic system.
279
Section I
International Affairs and European Integration
***
Subsection 3
Regional Development Strategies
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Anghel Cristian,
Technical University of Cluj-Napoca, Faculty of Sciences
cristiananghel77@gmail.com
Rădulescu Corina,
Technical University of Cluj-Napoca, Faculty of Sciences
corina.radulescu@cunbm.utcluj.ro
Toader Rita,
Technical University of Cluj-Napoca, Faculty of Sciences
rita.toader@cunbm.utcluj.ro
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Aim the place and role of the stakeholder participatory identification of local
in the local development structures needs and specific solutions applied
(according to the model in Figure 3). through projects and local
Figure 3. Sensitive and hard to limit area of „common interest”, adapt.[1]
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citizens in the strategic planning process and measures supporting these objectives finalize
their permanent information helps ensure the “Local Sustainable Development
their support in this program and their Strategy”. The implementation phase
common interest in accomplishing the supplies the reference terms for local
proposed objectives. development programs on priority fields, as
well as criteria for delimitation and resource
5. The analysis of the local development concentration, an also for prioritizing projects
process at Baia Mare City level elaborated by the III-rd level, drawing up the
“short project list” or the “Local Action
According to the theoretical models Plan” [4].
presented above, the following list present The supplied products have been the
the means by which Baia Mare City level resource analysis and the local
stakeholder analysis has permitted the problems/needs analysis (study of potential)
institutional construction of the local leading to identification of solutions or the
development process formed by: “long list” of local development projects on
Baia Mare City Hall – coordinator; specific fields. Another important result
Baia Mare City Hall Directors; would be the initiation of the forming process
Local Public Services Directors; of cross-institution project teams and public-
Parliamentary Parties representatives private partnerships.
in the Local Council; From the “vertical” analysis
Important Employers’ Organizations (hierarchically – functional) of the presented
representatives (representative structure one can observe the means by
economic operators); which all local development stakeholders
Representatives of important NGOs, have been involved in the local sustainable
universities; development planning , taking into account
Project executive coordinator – every structure’s type and interest (Fig. 5).
Planning Integration, Development The “stakeholder” analysis must follow
Service Director; the dynamics of local development
Work Group coordinators – Local stakeholders as opposed to the public
Experts ( Public and Private). activity, decision and policy but in the same
This group’s activity results are time it is also used during the monitoring and
transposed into the local development policy evaluation of the public information,
document, “Local Sustainable Development consultation and facilitation results,
Strategy”, establishing for the 2008-2020 permanently developed by the local public
period the vision (model) for city authority.
development as well as the priority The final result of a stakeholder analysis
development directions, strategic objectives can be concentrated in a matrix containing a
and policies supporting the achievement of synthetic presentation of collected and
these objectives. processed quantity and quality data.
The supplied product is in the planning
phase, specific objectives and general
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Table 1. Synthetic model used by Baia Mare City local public administration
Impact /
Interested Factors Category Role Influence
Importance
City Hall lPA S–O 5 5
Local Council Social Committee lPA S–d 3 5
Public Social Work Service PAm T–o 4 4
NGO – authorized social services providers CS O–i 3 2
NGO – representatives of social services O – p,i,
CS 5 2
beneficiaries m&e
University – social research CS T–a 3 4
Local enterprises working in projecting,
BE O – p, i 2 3
constructions
A synthetic model (excluding data and involvement in the decision-making process
contact persons) used by the Local Public in a community, and who can significantly
Administration of Baia Mare City is change the evolution course. These are the
presented in table 1, and the abreviations are: so-called stakeholders who mark their
PA – public administration(or:lPA influences by applying strategies.
territory/administrative; sPA – hierarhically The issues related to the elaboration and
sectorial; mPA - mixt); BE –bussiness application of local strategies consist in
environment ; CS – civil society; Functional assuring the real participation of stakeholders
role in the development process is defined in identifying needs, analysed problems,
by level of involvement: S – strategic; T – adopting and especially enforcing the public
tactical; O – operational; x process stage: a – decisions. The real development of local
analisys; d – decision; p - projecting/ design; communities should be based on their own
i – implementation ; m&e – monitoring and strategic notions of development. Therefore,
evaluation; o – entire process;Figures from 1 the selection of the development direction is
to 5 where 1 is the lowest level and 5 is the made by the local government, considering
highest level of activity, decision, policy their resources and the economic policies
impact/importance for the interested factor; elaborated by the central government
Figures from 1 to 5 where 1 is the lowest
level and 5 is the highest level of influence 7. References
that the interested factor can have on the
activity, decision, debated policy. [1] Anghel, C., Perfecționarea managementului
The supplied products have been the public. Politici utilizate in administrația
resource analysis and the local publică locală, Teză de Doctorat, Școala
problems/needs analysis (study of potential) Națională de Studii Politice și
Administrative, București, 2013.
leading to solution identification or the “long
[2] Freeman, R.E., Strategic Management: A
list” of local development projects on Stakeholder Approach , Darden Graduate
specific fields. Another important result School of Business Administration,
would be the initiation of the forming process University of Virginia, 1994.
of cross-institution project teams and public- [3] Preda, A.I.O., Sorescu, A., Florea, R.,
private partnerships.From the “vertical” Presadă, F., Poiană, S., Decizia Publică în
analysis (hierarchically – functional) of the secolul XXI, Centrul de Resurse pentru
presented structure one can observe the participare publică - CeRe, București, 2008.
means by which all local development [4] *** Agenda 21 locală - planul local de
stakeholders have been involved in the local dezvoltare durabilă al municipiului Baia
Mare, Document realizat în cadrul proiectului
sustainable development planning , taking
Programului Națiunilor Unite pentru
into account every structure’s type and Dezvoltare ROM 98/012, cu sprijinul
interest [4]. Guvernului Marii Britanii si coordonat de
Centrul National pentru Dezvoltare Durabilă,
6. Conclusions Baia Mare, 2002
Basically, local development is grounded http://www.primarie.multinet.ro/al21/
on a complex system that includes factors [5] *** Strategia de dezvoltare durabilă - Baia
with major roles with respect to the Mare 2020, http://www.baiamare.ro
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Anghel Cristian,
Technical University of Cluj-Napoca, Faculty of Sciences
cristiananghel77@gmail.com
Rădulescu Corina,
Technical University of Cluj-Napoca, Faculty of Sciences
corina.radulescu@cunbm.utcluj.ro
Toader Cezar,
Technical University of Cluj-Napoca, Faculty of Sciences
cezar.toader@cunbm.utcluj.ro
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Inefficient public cultural marketing space with mainly historical, cultural and
Substantial decrease in the number of religious destination, through modernizing
public property workshops and spaces and rehabilitation of the historical and public
for creation; edifices in the Citadel Market.
Insufficient involvement of artists The project proposes the valuing of the
associative structures in promoting following resources in the area:
specific social, occupational, financial Historical signification of the area;
rights. Value of historical monument; un-
Strategic objectives: researched archaeological potential;
Promoting the city creative potential, Urban value; quality of natural
both contemporary creation as well as environment, especially through
patrimony inheritance Baia Mare valuing the protected long-standing
Artistic Centre/ Baia Mare Painting trees; integration of Citadel Market in
School the historical and cultural patrimony
Supporting creators in the field of of the Old City Area ( Liberty Square,
visual arts through legal, economic Peace Square, Art Museum, City
and social measures Theatre, Butcher’s Bastion, History
Increasing visibility and importance and Archaeology Museum); using
of artistic creation in the life of local information technology to connect the
community. objective to the regional, national and
Increasing public access and art European patrimony.
consumption at the level of various b. „CERAMICS” Project -
social-professional categories and international cooperation project, financed
development of specific market. through the Interregional IV C
Directions for action: Program,[4] sustaining the development
A new approach to local artistic of cooperation between towns with
education common cultural inheritance, confronted
Protecting and supporting visual arts with the same difficulties and having the
same goal to conserve and promote the
creators (e.g. protection of copyright)
field of ceramics and of small crafts in
Stimulating intercultural dialogue and
Europe.
direct involvement of artists in
The project activities have led to:
drafting policies and establishing
Elaboration of a common diagnosis of
strategic objectives for the field of
the ceramics sector, with conclusions
visual arts.
leading to the editing of a Best
Increasing public interest for visual
Practice Catalogue and
arts through new forms of public
recommendations for local support
education.[4]
policies for the ceramics field,
accomplished for every partner.
4. Implemented projects
Intensive experience exchanges
between representatives of the
As the first results of this local planning,
ceramics field in the partner regions:
the first projects dedicated to the Culture
subfield have been started and implemented. Hungary, Romania, Portugal, Italy
and Slovenia
a. Rehabilitation and promotion of
cultural and historical identity – Citadel Elaboration of the Action Plan for the
Market – Stephen Tower” - infrastructure ceramics field and supporting it at
project, contracted for funding in the local administrative and political level
Integrated Urban Development Plan ( – Baia Mare Local Council.
Regional Operational Plan, Axis 1
5. Conclusions
Supporting sustainable development of
towns, Major Intervention Field 1.1.
Strategic planning is considered a process
Integrated Urban Development Plans) having
that is developed chronologically and
as a general objective the cultural – historical
systematically, enabling local communities to
valuing and promotion of an urban public
create their own image of their future,
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6. References
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Bulin Daniel
The Bucharest University of Economic Studies
daniel.bulin@yahoo.com
Bunghez Magdalena
The Bucharest University of Economic Studies
magda@travelpoint.com.ro
Lincă Aurora Costina
The Bucharest University of Economic Studies
aurora.linca@yahoo.com
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Corduneanu Carmen
Moldovan Nicoleta–Claudia
West University of Timișoara,
Faculty of Economics and Business Administration
carmen.corduneanu@feaa.uvt.ro
nicoleta.moldovan@feaa.uvt.ro
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residence in the jurisdictions which offer the determine externalities on the private
combination of taxes-public goods consumption and on the public expenditure
corresponding to the personal preferences at and bring into focus both the possible
a minimum cost. existence and the optimality of a non-
Tiebout ignores the fact that the residence cooperative fiscal equilibrium. In the
choosing depends on the working places and elaborated model, they depart from the
incomes and the residence place can be supposition that the optimum level of
different from the place where the capital is taxation and the supplied public goods must
established, therefore the principle of provide the citizens’ welfare and the
equivalence between the paid taxes and the budgetary equilibrium. In their opinion, the
public services the tax-payer is provided with fiscal competition between states determines
ceases to exist. Setting aside the contagion the alteration of the taxable bases when the
means the fact of not taking into rates of the indirect taxes are differentiated
consideration that, the activities’ because, in accordance with the origin
concentration in a given zone has an impact principle, the differentiated level of the rates
on other, influencing the citizens’ preferences influences the export or import of economic
and their welfare, and consequently, Pareto goods between states. As every states
optimum disappears. In conclusion, Tiebout’s establishes its level of taxation, setting aside
opinion according to which the citizens’ the one applied in other state, if a state would
mobility provides a fiscal optimum and reduce the taxation rate, then, the funded
therefore a fiscal harmonization is not public goods would decrease but the welfare
necessary doesn’t correspond to reality. loss would be balanced by its increase on the
In the models elaborated by Zodrow and expense of the consumption increase. The
Mieskowski [32] and Wilson [31], the states confronted with the loss of taxable
working factor is stationary; the population base would be forced to reduce the rates to a
composing the house sector fully consumes level to which the fiscal equilibrium wouldn’t
the salary and holds a part of the global be optimal any more.
capital, which is the only mobile factor. The As a result of the performed researches,
financing of the public sector, of the De Combrugghe and Tulkens [7] stated that
jurisdictions perfectly monetary integrated when the rates of the consumption taxes are
and which are on the same level of identical in two states there is an optimal
administration is made through a tax applied non-cooperative fiscal equilibrium, but its
on the capital factor. The increase of the tax improvement can be achieved only by
on the capital factor, in order to supply more increasing the rates and not be their
public goods, determines the decrease of the reduction. Therefore, the increase of the
private incomes, the increase of the consumption tax rate shall determine the
production cost of the public good per tax- increase of the public expenditure (of the
payer, the decrease of the taxable base, as the public consumption) in the state exporting
capital factor performs investments and private goods and services.
delocalizes towards jurisdictions where the In order to analyze the fiscal competition,
benefit after taxation is higher. authors appealed to:
Concomitantly with the increase of the - urban economics: Von Thünen [28]
taxable base in the jurisdictions where the tax explained the localization of the agricultural
is lower, the public goods provided by them activities by maximizing the net ground rent;
also increase. Consequently, the fiscal Alonso elaborated the monocentric city
externalities determine the jurisdictions to model; Marshall A. approached the
reduce the taxation rates in order to attract agglomeration phenomena of the companies,
the capital and the public goods are provided the emergence of the industrial districts, the
to a suboptimal level. sources of the scale economies; Hoover [12]
Placing their research to the level of a approached the effects of the agglomeration
federation with a small number of member economies; Henderson [11] elaborated a
states which have the right to institute taxes, model in order to explain the company
Mintz and Tulkens [20] stated that the concentration);
different taxation rates of the consume, in the -regional science: Weber [29] stated that the
conditions of pure and perfect competition, minimization of the total transport cost
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determined the optimal implantation place collections and stating the necessity of the
for a company; Christaller [6] stated that the fiscal harmonization in general and
transport costs and the economies of scale especially the taxation rates. Persson and
determined the emergence of certain central Tabellini [23] state that, given the fact of the
places which were assimilated to the urban European economic integration, there is a
centres; Lösch [16] explained the tendency of leveling the income tax
concentration through the arbitrage between downwards, and when the costs of the capital
the reduced transport costs and the increasing mobility become insignificant we can reach a
benefits generated by specialization and void tax for the capital incomes. Oates [21]
economies of scale; Pred [24] was interested but also Gérard-Varet&Thisse [10] show that
in the dimension and localization of the the delocalization of the economic activities
urban centres; determined by the increase of the fiscal
-space competition: Hotelling [18] stated that pressure produce externalities, consisting in
anticipations regarding competition the enlargement of the taxation bases in the
according to the selling price influenced the implantation countries, but also on the fiscal
companies’ localization strategies by which collections in the provenance countries and
he explained the agglomeration phenomena. their passing-by at the supranational level
In the literature referring to space degenerates in a suboptimal allocation of the
economy, there are a large number of models public goods. For the internalization of
by which various authors try to analyze the externalities, they find for the fiscal
space distribution of the economic activities, harmonization.
departing from different suppositions related Interested in the impact of the fiscal
to the factors’ mobility. Baldwin et al [3] competition on the space distribution of the
proceeded to a gathering of them in four economic activities, given the fact of the
categories. In the conditions of the working European economic integration and the
factor immobility, the models based on the existence of the agglomeration effects,
supposition of the capital factor mobility Ludema and Wooton [17] started from the
stated that the concentration of the economic supposition that the working factor is the one
activities was determined by the profit which determines the space distribution. In
difference [19]. Given the fact that their opinion, the agglomeration of the
delocalization is made without costs, at the economic activities is encouraged by the
company level the cost of the working factor need of reducing the transport costs and the
is variable depending on the produced reaction of the taxable bases to the taxes’
quantity, and the cost related to the capital modification. When the agglomeration forces
factor is constant. The models with the are predominant in comparison with the
capital accumulation and depreciation depart dispersion ones, the economic integration can
from the supposition of the capital and determine the increase of the taxation rates
working factors’ immobility [2], stating the which shall have as effect the production
existence of a process of accumulation in the decrease, imports increase and the consumers
attractive economic zones and a process of shall pay the transport costs related to the
depreciation in the peripheral economic imported goods, as well as the working factor
zones. Centre – periphery models depart migration. The increase of taxes shall be
from the supposition of a differentiated attenuated by the reduction of the transport
mobility of the working factor depending on costs and the final impact shall be found in
the training level [8], [14], [22]. The models price, influencing the company
based on the contractors’ mobility depart competitiveness on the market.
from the supposition of the As opposed to Ludema and Wooton who
contractors/capital owners’ mobility, affirm that the regional integration amplifies
interested in the level of the real incomes the agglomeration forces and allows the
when they delocalize and the lack of mobility states to recover their fiscal autonomy,
of the human factor employed [9]. because the delocalization determines the
Various authors were concerned with the increase of the consumer price index, Rieber
impact of the fiscal competition from the [25] states that the integration in an
point of view of the space, analyzing the environment with an imperfect competition
effects of the capital mobility on the fiscal and increasing benefits has considerable
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implications on the distribution of the the working factor is mobile, setting aside the
productive activities, determining the capital mobility which represents a reality.
reduction of the costs and prices implicitly, Bénassy-Quéré et al. [5] have elaborated a
influencing on competitiveness through model through which they support the
price. possibility of coexistence of certain regions
Keen and Marchand [13] elaborated a with high levels of taxation and public
model of the fiscal competition taking into expenditure together with regions where
consideration the public expenditure which is these are low. They tried to explain that
distributed between an input for the mobile competition, by taxes and public goods,
companies and a public good consumed by explain the continuing of certain high rates of
the stationary workers. They suggest the taxation in the economic integration
rebalancing of expenditure for population, as conditions.
they stat that governments support the On his turn, Rieber [25] tried to prove that
companies. On his turn, Wildasin [30] stated the localization of the direct investments in
that together with competition through taxes the member states is not exclusively
there is also a competition trough public influenced by the taxation of profit made by
expenditure funded on the expense of the companies, but we must take into
fiscal collections. consideration the relative importance of
The impact of public infrastructures on whole factors influencing the production
industries’ localization was studied by Martin costs.
and Roger[19] who affirm that their level and Taking up the topic concerning the
quality influence the companies’ decisions supposition of a pure and perfect competition
and contribute to the emphasis of the and stating that the market competition is
agglomeration forces. On their turn, Justman, imperfect, Dixit and Stiglitz [8] consider that
Thisse and van Ypersele [15] have affirmed the factors determining the agglomeration
that the public infrastructures influence the and respectively, the dispersion of the
companies’ transport costs and the mobile economic activities influence on the space
workers’ localization decisions by means of localization of the companies. The size of the
the utility function differential between working market and its level of training, the
different regions. scale economies generating increasing
Anderson and Forslid [1] analyze the benefits, the information exchange between
impact of public goods and services on the companies, the presence of the professional
space localization of the mobile factors of providers, represent factors which encourage
production, given the increase of taxes and the emergence of an agglomeration effect as
the existence of the agglomeration effects a result of the capital factor and working
which lead to the concentration of the factor concentration in the same economic
economic activities. In order to analyze the zone. Instead, the congestion effect, the
taxation impact on space distribution of the immobility of the working factor, the
activity, they take into consideration various available lands, the ground rents and the
situations in which the taxation rate either transport costs determine the dispersion of
coincide or they are different at the level of the economic activities, discouraging their
the two categories of employees and regions. concentration.
In the opinion of the mentioned authors, the Accordingly, the company localization
public goods and services funded by means depends on the relationship between the
of taxes represent a factor which encourages increasing benefits and costs, and the market
agglomeration, and the impact on the size and customers’ incomes represent
localization decision depends on the determining factors for the emergence of an
preference to the offered utilities. In order to agglomeration effect. After the
limit the agglomeration effect and to stabilize agglomeration has attracted new companies
the mobile working factor, they suggest the and consumers, subsequently, given the
translation of the fiscal obligation towards market saturation, the competition increase
the stationary factors (the farmers, for determines the delocalization towards other
instance). However, the performed analysis is zones where it is more reduced.
restrictive, because they consider that only Starting from the supposition according to
which public decision-makers try to
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maximize the welfare of the stationary transport expenditure and increases the
factors, Krugman and Venables [14] and incomes of the two regions, and the taxes
Venables [27] have analyzed the relationship may increase as the rich electorate is
between the level of the working factor agreeable to pay more for taking advantage
remuneration and localization, departing of public utilities. Consequently, the
from a model based on the fiscal arbitrage economic integration provides the capital
between the factors of production which sets attraction in the rich regions with a higher
aside the costs of the unequal dispersion of level of taxation. Baldwin and Krugman
the economic activities. In their opinion, consider that, because of the agglomeration
given the fact of the European integration, and dispersions forces, the fiscal
the economic activities centralize in central harmonization determining a single rate
countries, even if the salaries are higher. doesn’t bring a welfare increment for the two
Affirming that the European economic regions as the rich region shall reduce the
integration hasn’t determined the effects taxation to a level where the capital should
envisaged by the theory on fiscal not be attracted by the peripheral region. In
competition, as there are still different their opinion, together with the factors
noticeable rates of taxation between the operating towards agglomeration or
developed states (in the centre) and the dispersion, which are emphasized by the
emergent states (on the periphery) of the geographical economics, the fiscal
Union, Baldwin şi Krugman [4] elaborated a competition can contribute to the
model in order to identify the reasons for concentration or dispersion of the economic
continuing different rates of taxation, activities.
departing from various suppositions: the
capital owners are considered the mobile 3. Conclusions
contractors; the working factor is stationary;
there is an asymmetry related to the capital
distribution which is located at North; the Practically, the conclusions of the
purpose is to analyze the competition traditional approach are based on the
between the central states and the peripheral supposition of certain constant benefits when
states only by means of the levels of the competition is pure and perfect. If the
sustainability, removing the influence of level of the taxation rates variation represents
transport expenditure on localization, given the only explaining factor of the production
the fact that the capital flows and the factors localization in the traditional
governments’ reaction are discontinuous approach of the fiscal competition, in
(because the capital can totally delocalize opposition the new geographical economics
from North to South and backward); tries to explain the localization decisions of
-the national richness influence on the the companies, employees and mobile
supplied public goods and services (which capital, by taking into consideration all the
means that in the case of the developed states factors influencing the space distribution in
their provision is made by means of certain the conditions of the economic integration
higher taxes in comparison with those in increase. This brings into focus the impact of
which the capital shows a deficit, in the the agglomeration and dispersion forces on
absence of a fiscal competition). the localization of the mobile factors,
As opposed to the classical theory of considering that companies in order to
fiscal competition, Baldwin and Krugman achieve increasing benefits shall direct
affirm that capital is centralized in regions towards markets of large sizes, where the
where the market size is bigger even if the degree of activity concentration is high. As
rate level is high and not in the poorer long as the agglomeration forces are big, the
peripheral regions. The fiscal competition mobile factors shall not delocalize if takes
determines the central developed regions to increase.
reduce the taxation rates according to the
taxation level of the house sector in order to References
deal with the lower rates used by the less
developed peripheral regions. In authors’ [1] Andersson, F., Forslid, R., „Tax Competition
opinion, the economic integration reduces the and Economic Geography”, Journal of public
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Economic Theory, Vol. 5(2), 2003, pp. 279- [17] Ludema, R.D., Wooton, I., „Economic
303. Geography and the Fiscal Effects of Regional
[2] Baldwin, R., „Agglomeration and Integration”, Journal of International
Endogenous Capital”, European Economic Economics, Vol. 52, 2000, pp. 331-357.
Review, Vol. 43(2), 1999, pp. 253-280. [18] Hotelling, H., „Stability in Competition”,
[3] Baldwin, R., at al., Economic Geography and Economic Journal, Vol. 39, 1929, pp. 41-57.
Public Policy, Princeton University Press, [19] Martin, P., Rogers C.A., „Industrial
2003. Localisation and Public Infrastructure”,
[4] Baldwin, R., Krugman P., „Agglomeration, Journal of International Economics, n° 39,
integration and tax harmonisation”, 1995, pp. 335-351.
European Economic Review, 2002, Vol. 48, [20] Mintz, J., Tulkens, H., „Commodity tax
pp. 1-23. competition between member states of a
[5] Benassy-Quere, A., Gobalraja N., Trannoy, federation: equilibrium and efficiency”,
A., Tax Competition and Public Input, CEPII Journal of Public Economics, Elsevier, vol.
Working Paper, 2005-08. 29(2), 1986, pages 133-172.
[6] Christaller, W., Die Zentralen Orte in [21] Oates, W.E., Fiscal Federalism, New York :
Süddeutschland, Jena, Verlag von Gustav Harcourt Brace Jovanovich, 1972.
Fischer, 1933 (traducere în engleză de [22] Ottaviano, G., Thisse J.F., Agglomeration
Baskin, C.W., 1966. Central Places in and economic geography, CEPR Discussion
Southern Germany, Englewood Clis, N.J. Paper, 2003, 3838.
Prentice Hall). [23] Persson, T., Tabellini, G., „ The Politics of
[7] De Crombrugghe, A., Tulkens, H., On Pareto 1992:Fiscal Policy and European Integration,
improving tax changes under fiscal Review of Economic Studies, n° 59, 1992, pp.
competition. CORE Discussion Papers 689-701.
1987005, Université Catholique de Louvain, [24] Pred, A.R., The Spatial Dynamics of US
Center for Operations Research and Urban-Industrial Growth, 1800-1914,
Econometrics (CORE), 1987. Cambridge MA, MIT Press, 1966.
[8] Dixit, A.K., Stiglitz, J.E., „Monopolistic [25] Rieber, A., „Intégration régionale, mobilité
Competition and Optimum Product du capital et concurrence fiscale”, Économie
Diversity”, American Economic Review, Vol. internationale, n° 81, 2000, pp. 21-42.
67, 1977, pp. 297-308. [26] Tiebout, C.M., „A pure theory of local
[9] Forslid R., Ottavianog, I.P., „An analytically expenditures”, Journal of Political Economy,
solvable core-periphery model”, Journal of Vol. 65, 1956, pp. 416-424.
Economic Geography, Vol. 3, 2003, pp. 229- [27] Venables, A.J., „Equilibrium Locations of
240. Vertically Linked Industries”, International
[10] Gérard-Varet, L. A., Thisse, J.-F., „Économie Economic Review, vol. 37, n° 2, 1996, pp.
publique locale et économie géographique », 341-359.
Annales d’économie et de statistique, n° 45, [28] Von Thünen, J.H., Der Isolierte Staat in
1997, pp. 1-18. Beziehung auf Landwirtschaft und National-
[11] Henderson, J.V., „The sizes and types of ökonomie, Hamburg, Perthes, 1926.
cities”, American Economic Review, Vol. Traduction anglaise de Wartenberg.
64(4), 1974, pp. 640-656. [29] Weber, A., (translated by Carl J. Friedrich
[12] Hoover, E.M., Location Theory and the Shoe from Weber's 1909 book), Theory of the
and Leather Industries, Cambridge MA, Location of Industries, Chicago: The
Harvard University Press, 1936. University of Chicago Press, 1929.
[13] Keen, M., Marchand, M., „Fiscal [30] Wildasin, D.E., „Nash Equilibria in Models
Competition and the Pattern of Public of Fiscal Competition”, Journal of Public
Spending”, Journal of Public Economics, Economics, Vol. 35(2), 1988, pp. 229-240.
Vol. 66(1), 1997, pp. 33-53. [31] Wilson, J.D., "A theory of Inter-regional tax
[14] Krugman, P., „Increasing Returns and competition”, Journal of Urban Economics,
Economic Geography”, Journal of Political Vol. 19, 1986, pp. 296-315.
Economy, vol. 99, n° 31, 1991, pp. 484-499. [32] Zodrow, G., Mieszkowski, P., „Pigou
[15] Justman, M., Thisse, J.F., Van Ypersele, T., Tiebout property taxation and the
Taking the bite out of fiscal competition, underprovision of local public goods”,
CEPR Discussion Paper, 2001, 3109. Journal of Urban Economics, Vol. 19, 1986,
[16] Lösch A. Die Räumliche Ordnung der pp. 356-370.
Wirtschaft, Gustav Fisher Verlag, 1940.
Traduction anglaise: The Economics of
Location. New Haven (CN), Yale University
Press, 1954.
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Figure 1. Duration of CMR Solution Regarding the criteria for CRM software
Implementation providers selection, our respondents
indicated: the cost, the compatibility with
other systems and the term as the most
important in the selection of a supplier.
(Figure 3)
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usure-friendly characteristics
1 Source: author's data
0 2 4 6
Regarding the benefits of CRM
implementations, the banks analyzed
showed: a better knowledge concerning
customers (53%), increasing the number of
Source: author's data cross sales (45%), making better targeted
marketing campaigns (40%), increase
services quality (30%), better performance of
So far only 60% of respondents recognize customer loyalty (20%) and better customer
the strategic importance of CRM solutions, request management (10%). (Figure 5)
while the operational relevance is indicated
by 40%. Most respondents consider Figure 5. The Benefits of CRM
implementations CMR as revenue of Implementations
increasing opportunities, neglecting the
possibility of reducing costs. better knowledge about customers
Integrating customer information, 53%
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Figure 6. The Key Success Factors in This action is a result of better targeting of
CRM Implementations marketing campaigns, sales and services
tactics [8].
The customer loyalty leading to organic
growth can only be built through excellent
shopping experience and durable. This
internal human resources involves understanding the needs and
66%
external consultants' support
preferences of each client. One of the biggest
55%
technical solution quality
challenges banks faced is how can better
44% understand their customers, to offer
change management capabilities
33% personalized services, including the
system customization
30% application of “Exception Management”
financial resources 20% adjustable single each client.
0% 20% 40% 60% 80%
5. References
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The countries selected are representative Table3. International tourists’ arrivals and
for the impressive number of ski resorts and receipts 2011
for the specific infrastructure. More than that, Country Tourists Arrivals Tourism
they have oriented the tourism circulation to Mil Receipts
well positioned market’ segments. As far as Bil. USD
the mountain tourism, the focus has been on Austria 23,01 19,8
the development of leisure equipment’s on France 79,5 53,8
one hand, and the general tourism activities Germany 28,4 38,8
one the other hand. Italy 46,1 43
Switzerland 8,5 17,5
Table2. Major ski areas visitors USA 62,3 116,3
China 57,6 48,5
Country Skier visits* Proportion of Source: tourism highlights 2012,
thousands foreign skiers http://dtxtq4w60xqpw.cloudfront.net/sites/all/files
% /docpdf/unwtohighlights12enlr_1.pdf;
Austria 52.006 66
France 54.760 28 The majority of countries selected are
Germany 13.560 10 positioned on the top of charts in regard to
Italy 26.820 15 the tourist arrivals and receipts, meaning that
Switzerland 27.550,8 50 are perceived to be the most attracting
USA 58.201 5,6
destinations worldwide. This appears as a
China 4.640 0,5
consequence of the permanent implication in
Source: http://www.vanat.ch/RM-world-report-
2011.pdf; developing the tourism infrastructure and
* It refers to an average 5 last seasons or estimated; services. Along the others, the mountain
tourism has detached itself by becoming a
Table 2 presents a statistic regarding the leisure opportunity for ski and après ski
number of skier visits and the proportion of activities.
foreign visitors, both indicators draw The exigent consumer is attracted to the
attention to the fact that skiing represents the destinations that provide a more diversified
most important leisure activity for mountain touristic offer, encompassing the benefits of
tourism. A brief analyses show that Austria leisure components. The relation between
has the biggest number of foreign skiers in demand and offer is interdepended; for
comparison to the local ones, but in the same instance the trends in the demand’s evolution
context, the skier visits are ranking on the stimulates the manifestation of future offer
third position. USA present itself on the first and also the new and divers offer has the
position concerning the number of skier ability to enhance the addressability degree
visits, with mainly local tourists (only 5.6% regarding tourist age, nationality, level of
are foreigners). education and others.
The figures are sustained by the Ski practice stimulates increasing tourist
destinations’ notoriety on the international circulation to areas that are catering to their
market, especially those related to the Alpes needs and wants. As a result, the innovation
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turns into more and more ski areas, ski slopes season, statistics consistent with market
with different difficulty degrees, artificial realities. Unfortunately, the ski areas and the
snow machines, ski schools and so on. specific equipment are rather poorly
Therefore, mountain tourism destination managed, with little exception; for instance
have searched for innovative methods to the Prahova Valley hosts the most attractive
decrease the seasonality impact, by investing resorts: Sinania, Predeal, Busteni and others.
in specific equipment such as artificial snow The large number of tourists corresponds to
machines, or by promoting other forms of the public and private investments in tourism
ski, like grass ski. Nevertheless, mountain infrastructure. As a result, the tourist’s
tourism represents a major attraction for all circulation to particular mountain areas tends
types of consumers that offer a great to increase the seasonality degree with
perspective for general development and negative impact on destinations and locals.
competitivity. Regardless of this, the entire mountain
tourism infrastructure it position itself at a
3. Romanian Mountain Tourism low level compared to the most important
international destinations.
Over time, Romania’s natural potential Given that the proportion of Romanian
has exerted an attraction for different types of tourism is higher than that of foreign tourists
tourism. Despite the natural environment, the it’s important to analyze the evolution of
tourism components are inadequate and mountain tourists in comparison to other
insufficient and rather poorly harmonized. areas, as it follows:
Nowadays, this is an accurate situation,
especially since tourism development didn’t Table4. Domestic travel by Romanian
consider the evolution in accommodation, residents in tourism areas
food and beverage and most of all, the leisure Thousands
one. 2009 2010 2011
Many destinations have invested in Total 11.165,0 10.796,9 11.985,6
accommodation units regardless of the Seaside 6
1.469,3 1.309,5 1.438,5
necessity of sustainable tourism, or the Mountain 2.921,7 2.597,6 3.051,4
inexistence of the entertainment s
Spas 290,9 213,5 298,8
opportunities. This has led to an overflow of Danube 108,1 43,07 42,4
tourists in the visited locations, with little or Delta
no leisure structures. The lack of these or Round 97,1 91,4 86,5
their obsolete appearance gave birth to a Trips
decrease of tourists’ interest in the local Other 6.763,2 6.541,7 7.067,7
destinations; related to the modern areas
expectation of tourists which concentrates on Source: adaptation from
the leisure services and facilities. http://www.insse.ro//cms/files\publicatii\Breviar
In addition, similar countries have acted turism_2012. pdf; 2011, 2010
towards growing reputation in the tourism
market. Their initiatives concentrate to It can be seen that, mountain areas play an
promote different forms of tourism and important part in tourists’ selections of
attractions based on the variety of destination. The dynamic records positive
opportunities of entertainment, recreation, oscillation of tourism circulation due to the
development of education level, psychical increased attractiveness of summer and
and psychological toning etc. It consequence, winter sports offers.
it is imperative that Romanian’ tourism The choice of mountain resorts as tourism
emerge from this incertitude and neglect and destinations is explained by the excitement of
reposition the image of an important adventure tourism, extreme sports, and
destination. nevertheless ski practice. Even though the
As far as mountain tourism, Romania has leisure opportunities of mountain tourism are
a great potential, with 27 ski areas and 80 at a wide range, the modern consumer is
authorized ski slopes [2]. The mountain attracted first by the ski facilities and other
resorts are permanently visited by a large free time activities are placed on the second
number of tourists, especially in the winter option. This ranking stimulates investments
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in ski areas and equipment’s rather than non- The modernization of slopes
ski activities. descriptive panels, rental equipment
Related to this are the initiatives of local centers, protection nets and others;
and national authorities; they have developed The increase of non-ski activities for
a program for mountain tourism development the segment of non-skier consumer
entitled “Ski in Romania „that focuses on 17 and the large variety of them;
ski infrastructure programs: 54 ski slopes, 14 The extension of ski season by
of them with artificial snow and 23 with providing artificial snow or
nocturne facilities accompanied by 2 biathlon developing grass ski as an alternative
tracks, 1 polygon, 1 trampoline, 2 leisure for winter sports;
equipment.[3] The particularization of ski slopes in
The actions were sustained by organizing regard to the type of sport practiced
the event “FOTE” – European Youth (ski fond, free ride, free style,
Olympic Winter Festival – that required new telemark)[5]
ski areas, artificial snow, ski lifts and other The creation of ski and snowboard
necessities to cater for them. The European schools in correspondence with the
Olympic Committee chose Romania as a number of slopes homologated;
proper destination for this event, focusing on Organizing sport events of national
the premises that Brasov has invested in the or international notoriety for
tourism and leisure infrastructure. enlarging the Romanian mountain
The large number of countries participants offer and potential;
– 45 – with 910 athletes [4] has led to an The promotion of accommodation
increase in Romanian tourism activities. The units that include winter and summer
main problem (regarding the Romanian sport equipment for all types of ages;
tourism initiatives) consisted in a little or less An intense promoting activities
promoting actions in order to extend the through the mass media and
importance of this event, event that especially through the social
determines benefits for all tourism networks such as Facebook, Twitter,
organizations. Nevertheless, taking part in an Google + etc.;
international event, developing and Creating complex tourism packages
organizing it prove that mountain tourism can similar to all inclusive clubs based on
be an important attraction for a variety of the experience of international
consumers. leaders, for instance Club Med, or
multifunctional tourism centers;
4. Perspectives for mountain tourism The development of information
development centers that provides important and
detailed references about the
Taking into consideration that some mountain destinations and facilities;
initiative have changed the face of ski areas Identifying initiatives from the
and therefore mountain tourism and other countries that are similar to us from
destination are lacking the necessary funds tourism point of view and valorizing
for tourism development, a series of them etc. These represent a few
strategies are considered, such as: actions that can stimulate the
The attraction of local and foreign development of mountain tourism
investors to specific destinations; based on the leisure equipment and
The strong collaboration between the services.
national, local authorities and the
tourism enterprisers; 5. Conclusions
The consolidation of accommodation
units, food and beverage ones and The leisure infrastructure has the ability to
leisure infrastructure; change the tourism development and its
The development of ski areas, ski image in a world ranking. Mountain tourism
slopes and all the equipment required services represent a major component of
in destinations with tourism potential; leisure and therefore it is a priority to attract
investments in valorizing its potential.
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6. References
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Epure Marcel
Alexandru Ioan Cuza University of Iaşi
Doctoral School of Economics
epure_marcel2000@yahoo.com)
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preference for relative power. For example key cultural effect, described in the General
wealth would be utilized to promote the Power model as cultural blindness. From the
image of power and superiority among peers, point of view of western economist, the
and less wealthy individuals. This preference general premise, from which all economic
for power is similar with Geert Hofstede theory derives, is the desire for material
cultural dimension.[5] For example the affluence. This is obviously true for all men
power distance index describes very well the alive, well most of them. But the way in
preference for power in a given community. which this is acquired isn’t universally true.
The findings don’t contradict Fudulu’s If you are culturally programed (culture has
conclusions. Hence cultures with preference been describe by Hofstede as Software of the
for relative power tend to develop centralized Mind 1991) to prefer relative power, then all
institutions, strong market regulation, your material gains will reflect this in
autarchy and oppressive political institution. relation with your peers and superiors. Hence
Dictatorships and weak human rights ratings scientists were, with a few exceptions,
are also characteristic. Such countries are practically blind to this elusive obvious
plagued by corruption and issues regarding reality. People in some culture simply prefer
implementation of efficient institutions. Such positions of power in relation with their
cultures tend to have more likely quantitative peers. This power, in turn, can provide the
positive trends, then positive quality trends in possibility to acquire wealth, by securing
their economic development indicators. high income; fame, recognition, corruption,
The second alternative is to control the wealth redistributions, and extortion form the
absolute wealth, without the implication of inferior ranking individuals etc. All their
relative power when referring to this concept, institutions and actions will reflect this
like in the case of hedonistic consumption preference. This explains very well the
practices. So the individuals try to control the persistence of ineffective free market
natural environment. The success in life is institutions, and lack of sustainable economic
measured by the means of one’s ability to development
control his resources, emotions and Relative power and absolute wealth are
rationality, in order to acquire wealth. This is the only two mega-objectives or mega-goods.
not done in order to acquire a position of It’s obviously that one cannot have one
influence and power. This is indeed hundred percent preference in any one of
unnecessarily, because the acquisition of these two goods, but a mixt in different
wealth isn’t a factor relative to others people proportions, much like in microeconomic
wealth. This is called absolute wealth, marginal theory. So the preferences for these
because it is not comparable to other people. two mega-goods can be described in terms of
Such preference for absolute wealth microeconomic theory.
promotes positive games among individuals,
and the drive for material possession The Problem
consistent with the protestant work ethic idea
of predestination. Such point of view is often All fundamental concepts like rules,
called salvation through acquisition of institutions and cultures can be defined using
wealth. these two goods. Each culture would have a
One of the main points for criticism predetermined opportunity cost for these
regarding Weber’s theory revolves around goods. This opportunity cost would be
these issues. One cannot ignore the overall inversely related to the preference for a given
success in economic terms of the Jewish good. For example if a culture has high
diaspora population, or indeed the economic opportunity costs for power (because
success of Japan. Max Weber speculates that individuals don’t accept to be treated
this is due to the fact that the spirit of unequally) they would prefer absolute wealth
capitalism is found in many other cultures, instead, hence the community would tend to
but somehow it wasn’t capably of promoting develop free market institutions and a
social and economic change in the magnitude democratic system. “Institutions are
of the Protestant Revolution. The main opportunity cost rankings and cultures are
argument for such inconsistencies, not only preference rankings in terms of the two
for Weber, but also for Institutionalism, is a mega-goods. Each institution, irrespective of
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the particular field or sector to which it is stressing the belief, that one must devote
belongs, consists of a ranking in terms of body and soul to one’s work. Diligence and
opportunity costs for the two mega- industriousness were accepted practices
objectives [1, pp.170] among the common people long before Japan
The consistency with economic was forced to open its gates to the world.
performance for a culture requires decoding Suzuki Shosan (1579-1655) a buddist zen
them in terms of preferences and opportunity monk, strongly advocated that sweating at
costs for the two mega-goods wealth and one’s work means the practice of Buddhism.
power. Paul Fudulu classified the criteria of Shosan preached that: Any samurai, farmer,
consistency in two sets. The first set consists artisan or a merchant, must exercise diligence
of criteria which have a direct reference to in one’s profession:
absolute wealth: (like material prosperity, 1) Samurais must sacrifice themselves for
work related values, prohibition of interest. the master with courage,
The second set consists of criteria which 2) Farmers must go out into the fields to
contain references to the preference for work with devotion,
power. (The means of salvation, type of 3) Artisans must pursue a craft with
asceticism, obedience to authorities, the determination and responsibility
masculinity, and the type of spiritual 4) Merchants must work in the name of
organization.) These criteria, and the way in heaven, and should engage in trade for the
which they can be related to opportunity benefit of country and people. [4, pp.12]
costs for the two mega-good are extensively In this aspect virtual redemption and end
described by Paul Fudulu. This produces the of the cycles of reincarnation is possible for
following general ranking in a descending everyone, not only for the monks, that
order: Judaism, Protestantism, Catholicism, practice an ascetic life impossible for the
Orthodoxy, Islam, Confucianism and common people. Hence a huge relative
Buddhism.[2, pp. 169] power source for the culture. Now the ascetic
As we can see Buddhism and way of the monks, can be performed in
Confucianism, both important religion in everyday life. The perfection in
Japan, score the lowest ranking for economic accomplishing ones duty to the family, peers,
compatibility. Paul Fudulu concludes that superiors, country emperor, is the way to
economic development in Japan is due to achieve true illumination, and eventually the
imported economic institutions that were end of the cycle.
imposed with force by the Japans political This is nothing more than what the
elite. Hence the institutional environment Protestant preacher demanded form the
resembles a system compatible with the ordinary believer, and is consistent with low
protestant work ethic, but this was imposed opportunities costs for absolute wealth.
with political means. Figure 1 Japans economic institution,
We argue that, although japan in fact from the General Power perspective
imported foreign economic institutions, their wealth
Avuție
OCCIDENT
implementation and success is due to some
informal institution, which were in place long JAPONIA
Japan
before Meiji era. Informal institutions are
based on cultural particularities and local
religion. Somehow Japan manages to have
high relative power preference, which is
combined with western culture high absolute
wealth preference.
Why do Japanese people have a work
ethic that puts even then best protestant power
Putere
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Source:[3]
In Figure 2 we can see the evolution of
Japans GDP per capita on PPP. Data suggests
that Japan has a development level equal
with most of the Western Europe protestant
countries. These countries have strong liberal
economies, but also with strong regulations
and government intervention, but Japan lacks
behind more liberal countries like Swiss or
USA. The relatively long period of two
decades shows that Japan development in
qualitative terms is somewhere in the middle
range, of developed economies. The
empirical data form IMF, and World Bank
supports this finding.
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Gheorghe Lucian,
Ovidius University of Constanta, Faculty of Mechanical Engineering, Industrial and
Maritime
gheorghelucian2003@yahoo.com
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sugestions should be opportune for a new - 21st art. reffers to investors that finance and
content of the law: realize investments or interventions on the
- First of all the formulation of the title of a existing constructions from the concieving to
new law should be, by example, „Law no.10 projecting, execution and reception. As an
regarding the insurance of the quality in obligation and responsibility these investors
constructions”, because it is about regulations shoud:
referring to human activities and their results, Invest only in constructions concieved
the actual form „Law no. 10 regarding the and projected respecting the conditions
quality in constructions” not being clear and of quality imposed by the technical
explicit from the judicial point of view (the regulations and agreements in operation;
grammatical interpretation) of the The execution should be realized based
participants to this actions. on a contract wich contains the
- 1st article could be formulated this way: supplementary quality conditions and the
„The insurance of the quality in constructions terms of their guarantee, using materials
is done by a series of activities and measures of whom the quality is certified and
ment to grant the constructions the capacity under the controll of authorized fizical or
to satisfy the requests of the beneficiarys juridical person;
according to their functional destination”, The reception should endorse the finding
instead of the definition „The quality in of respecting the conditions of quality
construction is the result of their hole mentioned in contracts and the remedy of
performances in exploitation, in order to deficiency”.
satisfy, during their period of existence, the - 22nd art. reffers to designers, who should:
exigences of the users and colectivities”. The Respect the provisions of the
refering from the 1st art. 2nd align. to technical regulations, of the technical
technological instalations and equipments agreements and those of the contract
can be missing. reffering to the minimal conditions of
- In its actual form, the 2nd art. mentiones : quality;
„The provisions of the present law are Elaborate instructions and projects
applied to constructions of any cathegory and regarding the monitoring of the
their afferent installations – in spite of the constructions;
form of property or destination – named in Participate to verifications during the
the following constructions, and also to their execution and reception of
works of modernization, modifying, theconstruction, providing the
transformation, consolidation and repair. documentation of the project for the
There are excepted the buildings for dwellig technical manual of the construction.“
with ground and first floor and the annexes - Another aspect left uncovered by the
situated in rural environement and in villages Law no 10/1995 regards the certification of
that belong to towns, and also the temporary the professional qualification. The quality in
buildings”. I considere that the 2nd art. could constructions represents one of the prioritary
be formulated this way: „The provisions of objectives at the national level, because
this law are adopted as part of all cathegories Romania’s position in an intense seismic
of constructions, indifferently of their form area, with special climatic conditions, leads
of property.” The completion regarding to to the necessity of adopting radical measures
„works”, as well as the „exceptions from the for insuring the quality level of constructions,
law” do not have a sense. in order to protect people’s lives and goods,
- 3rd art. could be more enlightening if the society and the environement. Law no.
formulated like this: „By the present law it is 10/1995 grants the legislative field wich
established the system of insuring the quality allows the realization of constructions at the
in constructions wich should lead to the level of requests, still existing a legislative
realization of constructions able for lack in the evaluation of the professional
exploitation according to their destination competence of societies, both Romanian and
and that do not endanger the life and health foreign, who participate to the concieving
of people, the integrity of goods and the and execution of constructions, regardless of
cleanliness of the environement”. the form of financing.
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3. Conclusion
4. References
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Volume XIII, Issue 1/ 2013
Gheorghe Lucian,
Ovidius University of Constanta, Faculty of Mechanical Engineering, Industrial and
Maritime
gheorghelucian2003@yahoo.com
321
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Romania has a cost of approximately 55%, blocking material resources and some
the rest being covered by taxes. worksite means of organisation during long
periods of time, blocking the “successful
Establishing the circumstances in execution guarantee”. Most of the times, the
which VAT is exigible in obtaining value of unfavourable effects is higher than
incomes the level of the profit from the contracts.
The current system of collecting VAT is
very damaging for construction Aspects concerning the estimation of
entrepreneurs, in the event of carrying out the value of the supply contract
construction works financed from public If contracts have a period of completion
money or from the money of economic longer than 12 months, then the contracting
agents with integral or majority state-owned parties have the right, throughout the
capital. Currently, the obligation to pay the completion period of the contract, to arrange
VAT arises on the date of making the for the modification of the clauses regarding
delivery of goods and chattels, transferring its price, for what remains to be completed,
ownership of real estate assets, and providing by an addendum, only in the event of the
the services, more specifically at the time of occurrence of circumstances which prove to
delivering the bill to the client, regardless of be detrimental to the lawful commercial
whether it has been paid or not. From the interests of the parties and which could not
moment of delivering the bill to the client, be provided upon conclusion of the contract.
the construction company becomes indebted The formula for updating the price of the
to the Ministry of Public Finance by the contract, applied in order to ensure protection
corresponding equivalent value of the VAT. against inflation, must not result into
It is commonly known that in the exceeding the price expressed in euros at the
construction field, between the time of time of making the offer. I feel that a
issuing the bill (a bill recognised by the monthly updating of the undertaking contract
client) and that of collecting (cashing) it is advisable, according to the inflation index
more than 60 days pass. During the time in even in the case of contracts whose period of
which the construction company did not cash completion is shorter or equal to 12 months.
the bills and therefore did not pay the
corresponding VAT, it cannot participate to Reducing the quantum of the successful
the auctions organised for public execution guarantee
investments, since, according to the laws in The guarantee should be constituted as a
force, the company being indebted to the bank deposit, and the updating of the
state, it becomes ineligible for the auction discount price should be done according to
activity, thus losing important contracts. the euro - RON exchange rate or to the
cumulated inflation index.
The allotment of investment funds
uncorrelated with the contracted A legal framework should be created,
completion time by a normative act issued by Parliament,
At present, a serious problem which which to allow for the qualification
construction undertakings are facing is the certification of construction companies.
lack of discipline in contractual relations, Certification of professional qualification
especially in the case of investment of construction enterprises represent a
objectives financed through state budget and official recognition to businesses whose
local budgets, as well as through the own activities in construction, by bodies
sources of economic agents with integral or recognized by the regulator in the
majority state-owned capital. The lack of construction. The existing legislation, Law
discipline in contractual relations is visible in 10/1995 on the quality of construction ensure
the lagging year after year of the dates of at least in theory building performance level
release for the works with the increment of requirements. However, it is imperative to
the period of completion, as a result of low introduce ways that technical competence of
levels of fund allotment. In such a situation, enterprises to be kept under control.
the construction entrepreneurs’ activity In most EU countries the construction
results in unfavourable economic effects by companies are certified in terms of
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4. References
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Volume XIII, Issue 1/ 2013
Ghita Simona
Academy of Economic Studies in Bucharest - Department of Statistics and Econometrics
simona.ghita@csie.ase.ro
Manea Daniela
Academy of Economic Studies in Bucharest - Department of Statistics and Econometrics
daniela.todose@csie.ase.ro
1. Introduction
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Figure 1. Total income and total expenditure Figure 2. Indices of real earnings and indices
of households - real values 2001 (lei, monthly of total expenditure of households (% -
per household) previous year=100)
160
1200,00
140
lei, monthly per household
1000,00
120
800,00 100
%
80
600,00
60
400,00
40
200,00 20
0
0,00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Indices of real earnings (%) (previous year=100)
Total income of households Total expenditure of households Indices of total expenditure of households (%) (previous year=100)
Source: made by the authors, based on data in Source: made by the authors, based on data in
Romanian Statistical Yearbook, 2012, Romanian Statistical Yearbook, 2012,
National Institute of Statistics and National Institute of Statistics and
www.insse.ro [6] [8] www.insse.ro [6] [8]
In the first part of the last decade, growth Between 2005 and 2011 in Romania
indices of real earnings recorded lower households spend approximately equal
values than those of real expenditure of the weights for the purchase of food products and
population. In the second part of the decade for the purchase of non-food goods (although
(after 2005) the evolution of the two the share for the first category of goods is
indicators is similar. Indices have values slightly higher). Thus, in 2011 36,1% of
above unit on almost the entire period, except money expenditure for consumption was
for the years of financial crisis [2]. spent for the purchase of food products,
34,8% - for the purchase of non-food goods
Table 2. Indices of real earnings and indices and the remaining 29,1% - for payment of
of total expenditure of households (% - services.
previous year=100)
Table 3. Money expenditure for consumption,
2005-2011
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Figure 3. Structure of money expenditure, by Table 4. Total expenditure and total income
categories of products and services (%) at territorial level, in 2011
2005-2011
100%
80%
60%
40%
20%
0%
2005 2006 2007 2008 2009 2010 2011
NE
household), followed by Western region. In
C
terms of household income, North-Eastern
NW
Region ranks on the last place (727,86 lei,
0 200 400 600 800 1000 1200
monthly per household), preceded by South-
lei, monthly per person
West-Oltenia Region (741,24 lei, monthly
per household). In terms of households Total expenditure (lei, monthly per person) 2011
Total income (lei, monthly per person) 2011
expenditure, the last place belongs to South-
West-Oltenia Region (658,94 lei, monthly Source: made by the authors, based on data in
per household), preceded by South-Eastern Romanian Statistical Yearbook, 2012,
Region (687,14 lei, monthly per household). National Institute of Statistics and
www.insse.ro
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100%
90%
Applying the Relative distances ranking
80% method, first in terms of these criteria ranked
70% Bucharest-Ilfov Region, followed by Western
60%
50%
Region (which carried 55% of the maximum
40% performance) and North-Western Region
30%
20%
(who made 49 % of maximum performance).
10% The last ranked region was South-Eastern
0% (37% of maximum performance), preceded
NE
TOTAL
NW
SE
S-M
SW-Olt
C
W
Buc-If
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Western Region (as in Relative distance and absolute poverty rate. After the appliance
ranking method). The last two regions, of these methods the Bucharest-Ilfov Region
ranked in the hierarchy differ from those was ranked first, the Western Region was
resulting from the application of the first ranked the second; the South-Eastern Region
method: the 8th rank - Central Region; the 7th and the Central Region were the last ranked
rank: the South-Eastern Region. This is regions.
explained by the fact that the unemployment
criteria recorded the worst value in Central 6. References
region, and had a fairly significant share in
real average final rank. [1] Bob, C. (coordinator), Model integrat de
analiză şi previziune ierarhică a ofertei şi
Table 7. Results of the applying the Real cererii satisfăcute de produse industriale şi
ranks method servicii în cadrul pieţei unice europene- faza
a doua, AES Publishing House, Bucharest,
2009.
[2] Gerstberger, C., Yaneva, D. – „Analysis of
EU-27 household final consumption
expenditure — Baltic countries and Greece
still suffering most from the economic and
financial crisis”, Economy and finance,
Statistics in focus, 2/2013, EUROSTAT,
2013.
[3] Ghiţă, S. – Statistică, Meteor Press Printing
House, Bucharest, 2006.
Source: authors’ calculations [4] Ţiţan, E., Statistică. Teorie. Aplicaţii în
sectorul terţiar, 2nd Edition, Meteor Press
5. Conclusions Publishing House, Bucharest, 2012
[5] ***, Raport privind incluziunea sociala in
Due to its role of reducing the negative Romania in anul 2010, Ministry of Labour,
impact of human activity on the environment, Family, Social Protection, Bucharest, 2012.
[6] ***, Romanian Statistical Yearbook, 2012,
the sustainable consumption represents a
National Institute of Statistics, 2013.
major theme – along with the sustainable [7] ***, Sustainable development in the
production pattern - of the European European Union, 2011 monitoring report of
Sustainable Development Strategy. In real the EU Sustainable Development Strategy,
terms, total consumption expenditure of EUROSTAT Statistical Book, 2011 Edition.
households in Romania increased in the first [8] www.insse.ro
eight years of the last decade, growth
followed by stagnation and even by a decline
during the global financial crisis that hit our
country. Between 2005 and 2011 in Romania
households spend approximately equal
weights for purchasing food products and for
purchasing non-food goods (although the
share for the first category of goods is
slightly higher). Thus, in 2011 36,1% of
money expenditure for consumption was
spent for the purchase of food products,
34,8% - for the purchase of non-food goods
and the remaining 29,1% - for payment of
services.
In the last part of the paper we had
applied two ranking methods: Relative
distances ranking method and Real ranks
method. We had used four ranking criteria:
GDP per inhabitant, ILO unemployment rate,
total average monthly wages by household
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Mașcu Simona
Doctoral School of the Bucharest University of Economic Studies
mascu_simona@yahoo.com
Burlacu Valentin
Cojocaru Diana
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revenues, only for extraction and production, from energy taxes in EU-10, and the third
not to be levied on the distributors, but on the highest in EU-27, in 2010, as Graph 1.2
power producers. shows.
The highest excise duties on domestic use
3. Excise duty levied on energy products of natural gas are in Slovenia, Estonia, and
and electricity in CEEC-10 Latvia. In Poland LPG, natural gas, coal and
coke are exempted from excise duties.
To understand whether the low percentage The lowest taxes levied on energy
of GDP derived from energy taxation is products used in non-business heating can be
caused by a lower taxation, or poor collection found in four countries where the ratio of
capacity, this article presents the situation of energy tax revenues in GDP is the second
excise duties applied to the most important highest, the fourth, the sixth, the seventh in
sources of energy in relation to the minimum the CEEC-10 (Bulgaria, Poland, Latvia,
EU rates on July 2010 and January 2013 in Lithuania). LPG used in non-business is
CEEC. levied only in Romania and Slovenia (Table
Table 2.1 provides an overview of the 2.1).
excise taxes on energy products and Taxation of fuels used for heating used in
electricity in 2010 and it shows some business and non-business district is by far
variation between the countries of the the highest in Slovenia. Taxes levied on gas
analyzed region. Czech Republic and oil heating – business and non-business use-
Slovenia have had the highest tax rates in Romania are the third highest, after Czech
introduced for motor fuels and were above Republic and Hungary, and those on natural
the EU minimum excise tax rates. gas, heavy fuel oil coal and coke are levied at
Slovakia has imposed the highest taxes minimum excise duty level, in 2010.
both leaded and unleaded petrol. In 2010, Estonia has the highest electricity
Nevertheless, it has the lowest value in consumption taxes for households. In
energy tax revenues in the EU-10, which Bulgaria, Latvia, Romania, Slovenia the EU
stood at 1.6 % of GDP in 2010. At 505, 11 minimum tax level for electricity is applied.
EUR/1000L for unleaded petrol, taxes are the Only in Slovakia there is no electricity tax at
next highest in Czech Republic. The all for households. The EU minimum levels
information presented above reveal that only in electricity taxation used in the business
Bulgaria and Romania had a minimum level sector are applied by two countries, Romania
and below the minimum of excise duty for and Lithuania.
unleaded petrol, in 2010. This analyse reveals that in 2010, Latvia
In Bulgaria, natural gas used in propellant opted to maintain the lowest possible level of
use, commercial/industrial use, heating excise duties on energy products;
business use and heating non-business use nevertheless the revenue from environmental
processes are fully exempted from energy taxes grew up and was 2.4 % of GDP Graph
tax. Also, in Bulgaria the EU minimum 1.2).
excise duty are applied to almost all energy
and electricity products. Although, Bulgaria
was the country with the highest revenues
Table 2.1 Energy products and electricity excise duty in CEEC, July 2010
Minimum excise
BG CZ EE LV LT HU PL RO SL SK
duty
Leaded Petrol-
424,38 539,34 422,77 423,55 579,24 459,56 * 421,19 421,61 597,49
421 EUR/1000L
Unleaded Petrol-
350,24 505,11 422,77 379,78 434,43 444,02 390,55 *348,04 484,51 514,50
359 EUR/1000L
Gas oil propellant use
306,78 430,76 392,93 330,37 274,27 360,21 302,00 293,215 427,00 368,00
330EUR/1000L
Gas oil
Industrial/Commercial
306,78 430,76 110,95 56,47 21,18 360,21 302,0 293,215 213,50 225,71
use
21 EUR/1000L
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3.1TaTable 3.1 Tax increase in 2013 compared to the tax rates in 2010
Energy product BG CZ EE LV LT HU PL RO SL SK
Leaded Petrol-
+0,013 - +0,085 - -0,052 * - - -
421 EUR/1000L -
Unleaded Petrol-
+0,036 +0,013 - +0,093 - -0,026 +0,04 +0,033 +0,188 +0,07
359 EUR/1000L
Gas oil propellant use
+0,075 +0,016 - +0,017 +0,17 +0,105 +0,174 +0,127 +0,05 +0,05
330EUR/1000L
Kerosene Propellant use
+0,075 +0,014 - +0,017 - -0,052 +0,034 - - -
330 EUR /1000 L
LPG
Propellant use - +0,013 - +0,017 - +0,42 +0,05 - - -0,3
125 EUR /1000 kg
Natural Gas
Propellant use +0,42 +0,38 0 - - 0 0 - +0,4 -0,3
2,6 EUR /gigajoule
Natural Gas
Heating Non- business
0 +0,018 - -0,22 0 0 0 0 +0,4 -
use
0,3 EUR /gigajoule
Coal and Coke
Heating Non-business use - - - - - -0,06 0,31 - - 0
0,3 EUR/gigajoule
Electricity
Non-Business use - +0,015 - - - -0,055 +0,034 - +2,05 0
1,0 EUR/MWh
Source: Excise duty tables, July 2010, January 2013, European Commission, Taxation and Customs Union, Indirect
Taxation and Tax administration, Environment and other indirect taxes
The increase of excise duty in 2013 on saw a significant increase of LPG taxes from
electricity for households in Slovenia stands 2010 to 2013, 0,42. Table 3.1 highlights that
out for its size (increased by 3,05 (%)). the only country where no changes occurred
Another significant increase of excise duty in in excise duties on fuels and natural gas, coal
2013 compared with 2010 levels occurred on and coke, electricity for households is
natural gas used as propellant, which took Estonia. This can be explained by the fact
place in a Balkan country Bulgaria (0,42), that, in 2010, the revenue from energy taxes
and Slovenia, (0,4). Also, another relatively has formed 2.6 % of GDP in Estonia, placing
marked increase of natural gas tax took place it on the second position among the CEE
in the Czech Republic, over 0,38 increase in countries. As for reductions, the most
2013 compared to 2010. Hungary, where remarkable case is Hungary, which have cut
energy taxes formed 2 % of GDP in 2010, the excise taxes from 2010 to 2013 on four
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energy products: leaded petrol, unleaded [1] Excise duty tables, Part II, Energy products
petrol, kerosene used as fuel, coal and coke and electricity, July 2010, January 2013,
used for households heating and electricity European Commission, Directorate General,
for households. Another country which Taxation and Customs Union, Indirect
Taxation and Tax administration,
significantly reduced its excise duty on LPG
Environment and other indirect taxes,
(-0,3) and natural gas used as propellant (- Energy;
0,3%) is Slovenia. In Slovenia, the ratio of [2] Council Directive 2003/96/EC of 27 October
energy tax revenues in GDP is the highest in 2003 restructuring the Community
the CEEC-10 and EU-27, recording 3,1 (%) framework for the taxation of energy
of GDP. products and electricity
Official Journal L 28,, 31/10/2003 P. 0051 –
5. Conclusions 0070;
[3] European Commission, 2012 Report, „ Tax
reforms in EU Member States. Tax policy
The tax systems in the ten Central and
challenges for economic growth and fiscal
Eastern European countries that joined the sustainability”, WORKING PAPER N.34 –
European Union (2004 and 2007) have 2012.
undergone environmental taxation reforms [4] Report on the Energy Sector in Slovenia for
aiming to reduce greenhouse gas emissions 2010, The Council of the Energy Agency of
as efficiently as possible. The energy taxation the Republic of Slovenia.
is used in order to stabilize and to enhance [5]"Slovak electricity transmission system, Plc.",
the more distortionary existing taxes. A Retrieved from http://www.sepsas.eu/.
properly designed energy taxation could [6] Agerpres, ‚Special tax on revenues from
improve economic efficiency and remove an liberalization of energy price, in effect in Jan
2013’, Wednesday, August 2012;
existing distortion by charging users the true
[7] MEMO/11/238, Brussels, „Revision of the
cost of energy products consumption. Energy Taxation Directive”,13 April 2011;
This analysis of excise taxes for energy
products, which only apply on final energy
demand exclusive of the non-energy use, and
not on energy production or transformation,
in post-communist European member
countries, shows some variation between
environmental fiscal policy in the countries
of the region.
While Slovakia has imposed the highest
taxes both leaded and unleaded petrol, it has
the lowest value in energy tax revenues in the
CEEC-10, which stood at 1.6 % of GDP in
2010. In Bulgaria, the EU minimum excise
duty are applied to almost all energy and
electricity products. Although, Bulgaria was
the country with the highest revenues from
energy taxes in 2010, in EU-10, and the third
highest in EU-27, as Graph 1.2 shows.
In Romania, energy products and
electricity are levied at minimum excise duty
level proposed by the European Commission.
Considering that Romania and Bulgaria
are the European Union's poorest states, with
a per capita gross national income of €6,440
and €4,460, increasing the energy prices in
the context of the liberalisation of energy will
hurt households.
6. References
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Volume XIII, Issue 1/ 2013
Mihai Mihaela
The Bucharest University of Economic Studies
mihaela2173@yahoo.com
Țițan Emilia
The Bucharest University of Economic Studies
emilia_titan@yahoo.com
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This indicates the evolution of poverty in a index in education on the three levels of
given country or, to a greater extent, through education.
comparative studies, at the international The index includes gross domestic
level. Obviously, this system of indicators is product GDP per capita expressed in
not the only tool used in the process of purchasing power parity.
comparing the stages of economic and social The most important thing is that at the
development at the international level, but time of data analysis and data correlation
these index offer a relevant meaning to the does not forget about the hazard of the HDI.
studies. Unlike the degree of literacy and educational
enrolment are measurable, life expectancy
2.1. Global Innovation Index (GII) can only be estimated. This is the time of
genetic aspects and, clearly, the conditions
The competition between organizations and the way of life affects the decisive
does not exclude forms of cooperation and indicator.
innovation involves their ability to develop In these circumstances, it is possible that
both technical knowledge and practice. life expectancy to be erected in the developed
Furthermore, I believe that learning and countries but they do carry a relevant
innovation play an important role in the progress in terms of innovation, but the most
economic development of a country. The underdeveloped to have a better rank. These
present study presents the evolution of the aspects can be considered relevant degree
INSEAD [3] reports – Global Innovation milestones of human development of a
Index and includes indicators that go beyond country.
the traditional measures of innovation (such HDI is calculated as the simple average of
as the level of research and development in a these three indicators, its values indicating
given country). the degree of development in reverse order.
In the 2012 Edition of the global report by
the innovation, it is observed that the 2.3. Index of cognitive skills and
developed States have progressed in terms of educational attainment
innovation, but smaller ones have better
ranking. If we look at the top 10 Nations To be able to carry out a comparative
noted that only seven are in Europe. analysis of international education systems
has developed an Index of cognitive skills
2.2. Human Development Index (HDI) and educational attainment. Moreover, taking
into account that it compares results from 39
Human Development Index (HDI) is countries and Hong Kong (China), on two
calculated in order to highlight the evolution categories: cognitive skills education and
of the quality of human life and is a education level, from the analysis of the
quantitative measure of the degree of a index can be a relevant image on the situation
country's success in the ability to be able to of education level in the countries studied.
develop its human capital. Covers three Of note is the fact that it is becoming
major landmarks: life expectancy, literacy increasingly relevant in shaping educational
and GDP per capita. From this point of view, policy at local, national and international.
we can approach this three-dimensional and
index according to the needs of the study, we 2.4. Unemployment Rate
will look at that or we can highlight the
choose we make. Life expectancy index The unemployment rate represents the
measures a country's performance in this number of unemployed in the active
regard based on the average life expectancy population unemployed, as defined by BIM,
at birth in relation to the minimum level (25 are people aged between 15-74 years who
years), and 85 years represents the maximum meet the following three conditions
level. simultaneously: I don't have a job, I am
Literacy index is obtained by calculating available to start working within the next two
the weighted average of two parts: a share of weeks and have been in search of a job at any
two third part for this index representing time during the last four weeks and the active
adult literacy and a third for coverage of population from the economic point of view
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includes all persons who provide labour force innovation and creative activity results.
available for the production of goods and Analyzing and correlating data from
services during the reference period, Table 1, note: regarding GII, Europe with
including both the occupancy and the long- more innovation – innovation leaders from
term unemployed. Northern Europe and the West. Thus, in the
A low level of unemployment reflects the context of the estimates, we can consider
ability of a country to supply a perfect "innovation leaders" in UE countries with
balance between request, obviously amid an high incomes, such as the Nordic Countries,
economy capable of consolidated to provide Switzerland, United Kingdom, Netherlands,
sustainable jobs and making more smaller the Luxembourg, Ireland, Germany, Malta,
existing labour force. Estonia, Belgium, France, Slovenia, the
In the present study is relevant to know Czech Republic and Hungary, which have
that, nationally, in addition to the context achieved success in creating innovation
witch indicators are used and other ecosystems.
categories of indicators that can serve the But, by comparison, although the
substantiation process, elaboration, viewpoint of HDI is in the second part of the
implementation, monitoring and evaluation report GII we can notice that the United
in the field of employment and vocational Kingdom has a leading position. Explainable,
training: indicators on access and because although allocations for research and
participation in education and training; development expenditure (% of GDP), GDP
indicators of quality and efficiency of fell, the rate for growing has values smaller
vocational education and training; indicators than 0.3.
on education system results; results From these calculations and observations,
indicators on education and vocational we can estimate that there is no explicit
training in the labour market and of labour dependency relationship between the two
and quality indicators on participation and indices, which means that you should take
investment in Continuing Education/FPC. into consideration the other factors of
influence.
3. Data Analysis
3.2. HDI and Index of cognitive skills and
The purpose of this chapter is to identify educational attainment (2012)
the degree of correlation between the
abovementioned indicators as they are In the calculation of an Index of cognitive
reflected on the basis of statistical data and skills and educational attainment data do not
reports from various organizations. exist for the following EU Member States:
To this end, we have chosen to study the Cyprus, Estonia, Finland, Latvia, Lithuania,
27 member countries of the European Union Luxembourg, Malta and Slovenia.
witch cover the spectrum of economic If OECD has dates of from national
development and political and regional statistics, depending on the degree of
developments over the last two decades. The completion of each countries education
analysis aims, on the one hand, outlining participant, the data has been checked, then
correlations between EU Member States on used and analize where it is considered that
the same index and, on the other hand, the they can be comparabile. In some cases, there
links between them at some point. are no data on upper-secondary and/or
tertiary graduation rates were not available.
3.1. HDI and GII (2012) In this case, the country has been attributed
to the average score for this indicator. A
As I mentioned above, the HDI is disadvantage for the country to get the
composed of three components, and in the average score is that if, in reality, this low
analysis of the two indices, we will take into average in this, his score boosts Index and
account the GDP Index. GII index assesses vice versa. However, this was considered to
innovation on the basis of criteria such as be the most fair and transparent. This is true
institutions, human capital and research, for literacy rate.
infrastructure, loans, investment, acquisition Relevant in comparing the two indices is
and dissemination, interconnections, an educational framework of the HDI index
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with "z-score" Index of cognitive skills and using the data for the countries in the Index,
educational attainment. The latter indicates and then the distance of the observation from
how many standard deviations an observation the mean in terms of standard deviations.
is above or below the mean. For countries like Ireland, Germany, the
To complete the z-score first calculated Netherlands, we can see clearly the existence
each indicator's mean and standard deviation of a correlation between the two indices.
Figure 1
Source: http://hdrstats.undp.org/en/indicators/104706.html;
http://thelearningcurve.pearson.com/index/index-ranking
human development index, and the index of
3.3. HDI and Unemployment Rate (2012) income we can associate with the higher
education.
The lowest rate of participation in the Analysis of the degree of correlation
labour market is recorded among people with between the HDI and other indicators reveals
incomplete secondary education, and studies a number of positive and negative aspects
that assessed in the case of persons with about the way they are designed. Each of the
undergraduate and graduate studies. The indicators analyzed have strengths and
unemployment rate is highest among people weaknesses in terms of contributing to the
with low levels of education. formation of an inclusive economy.
Here we can say that the HDI is obviously Also note the average and high
influenced by Unemployment rates. But a productivity in some countries that there are
careful analysis of the data shows that people with a higher educational level. In
regardless of the level of HDI, other words, we can say that the productivity
Unemployment Rates can be as high. If we and, why not, with the development of the
take the example of the two countries at the latest trends and technologies, and
opposite pole: Ireland – with the highest HDI innovation, are directly proportional to the
in Bulgaria, and the lowest point (both at the hope of life to more than average school with
level of the year 2012), note that the a clearly superior quality of life and with an
Unemployment Rate reveal things exactly unemployment rate as low as.
backwards. Here we can consider that it is In conclusion, as the Professor Schleicher
related with the HDI hazard component in said: “It is not a question of if you are rich,
this framework. you can afford a good education system... .
You may need to build a 40-year time gap
4. Conclusions between investment and economic outcomes,
but the causality of the link is established.”
From the above relations is evident [4]
connection between the four indices. The
GDP is higher so we see a better score on the
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Table 1
Index of cognitive skills and educational Unemploy-
HDI Global Innovation Index rankings
attainment ment Rate
Country Score
Overall Cognitive Educational
Rank 2012 (0- Rank Income Rank Region Rank Notes Dec-12
Index Skills Attainment
100)
Austria 18 0.908 53 22 HI 22 EUR 15 1,8,10 0.15 0.24 -0.03 4.7
1,4,8,
Belgium 17 0.917 54 20 HI 20 EUR 14 0.35 0.43 0.20 8.2
10,11,15
Bulgaria 57 0.826 41 43 UM 6 EUR 27 1,4,9,11 -0.23 -0.37 0.05 12.4
Cyprus 31 0.869 48 28 HI 28 NAWA 2 na na na na 13.6
Czech
28 0.913 50 27 HI 27 EUR 18 8,12 0.20 0.20 0.21 7.2
Republic
Denmark 15 0.924 60 7 HI 7 EUR 6 8,10 0.50 0.41 0.68 7.4
Estonia 33 0.892 55 19 HI 19 EUR 13 na na na na 9.9
Finland 21 0.912 62 4 HI 4 EUR 3 na na na na 8
2,4,8,
France 20 0.919 52 24 HI 24 EUR 16 0.13 0.23 -0.06 10.6
10,11
Germany 5 0.948 56 15 HI 15 EUR 10 8,10 0.41 0.56 0.12 5.4
3,6,10,
Greece 29 0.899 35 66 HI 43 EUR 36 -0.31 -0.25 -0.43 26.4
11,12
Hungary 37 0.874 47 31 HI 30 EUR 21 0.33 0.46 0.07 11.1
8,10,
Ireland 7 0.96 59 9 HI 9 EUR 7 0.53 0.42 0.74 14.2
11,12
Italy 25 0.911 45 36 HI 33 EUR 23 0.14 0.20 0.02 11.2
Letonia na na na na na na na na na na na na 14.3
Lithuania 41 0.85 44 38 UM 4 EUR 24 na na na na 13.3
Luxembourg 26 0.858 58 11 HI 11 EUR 8 na na na na 5.4
Malta 32 0.876 56 16 HI 16 EUR 11 Na na na na 6.6
Netherlands 4 0.945 61 6 HI 6 EUR 5 1,8,10 0.59 0.72 0.32 5.8
Poland 39 0.851 40 44 HI 38 EUR 28 10,11 0.43 0.26 0.77 10.4
10,11,
Portugal 43 0.835 45 35 HI 32 EUR 22 0.01 -0.09 0.21 17.3
12
Romania 56 0.836 38 52 UM 11 EUR 33 1,4,11 -0.60 0.88 -0.04 6.7
Slovakia 35 0.872 41 40 HI 35 EUR 25 8,10 0.32 0.16 0.65 14.5
Slovenia 21 0.936 50 26 HI 26 EUR 17 na na na na 9.4
Spain 23 0.919 47 29 HI 29 EUR 19 10,11 -0.08 -0.01 -0.24 26.1
Sweden 8 0.94 65 2 HI 2 EUR 2 8 0.24 0.31 0.08 8
United 8,13,
Kingdom 26 0.886 61 5 HI 5 EUR 4 0.6 0.5 0.81 7.7
14,15
Source: http://hdrstats.undp.org/en/indicators/104706.html;
http://thelearningcurve.pearson.com/index/index-ranking
http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database
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Neacşu Gabriela
Spiru Haret University, Faculty of Accounting and Financial Management Constanta
gabrielle_neacsu@yahoo.com
Dăneci-Pătrău Daniel
Spiru Haret University, Faculty of Accounting and Financial Management Constanta
danusidenima2@ahoo.com
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treatment and evacuation of urban Romanian seaside, the water produced being
wastewater, NTPA – 001/2002 that refers to distributed towards Palas.
setting limits for loading with pollutants the Galesu catchment, a surface source is
industrial and urban wastewater, the important for supplying with potable water
evacuation in natural water collectors, NTPA the Constanta County (figure 1).
– 002/2002 concerning the discharge Figure 1 Interconnected system of water
conditions of wastewater into the towns supply
sewerage networks and directly into the
wastewater treatment plants; and the
Government Decision no. 100/2002 for the
approval of quality standards that have be
accomplished by the surface wastewater for
the process of making the water potable, in
which are included NTPA 013/2002 and
NTPA 014/2003.
The purpose
The purpose of conducting this paper is that
of bringing to the attention of all competent
factors and of those from the industry, the
importance of the existence of a modern
system for discharging wastewater. Also, the
population must be sensitized in order to save
and protect potable water sources.
The hypothesis
The hypothesis used refers to “the awareness
of all economic agents no matter their size on
the necessity of the existence of some
personal systems for treating the Source: Neacşu Gabriela, 2009, [4]
wastewater”. Through it, we can diminish the
danger of polluting the sea water, as a natural For Galesu catchment, it was determined
water collector, but also the Black Sea coast the pH according to STAS 6325-75 and SR
area. ISO 10523-97, fix waste according to STAS
9187-84, conductivity STAS 7722-84 and SR
2. Materials and methods EN 27888-96, chlorides STAS 3049-88 and
SR ISO 9297-98, phosphates STAS 10064-
The realisation of the strategy for 75, chromium STAS 7884-67, SR ISO 9174-
improving the water quality is based on many 98, SR ISO 11083-98, ammonium STAS
studies, as for example, Studying 6328-85, the chemical oxygen demand for
technological flows at three big industrial five days STAS 6560-82, lead STAS 6362-
agents: CET Palas Constanţa, Midia 85, copper STAS 3224-69, cadmium STAS
Nãvodari Petrochemical Factory and La 1184-78 and SR ISO 5961-93, nickel STAS
Farge Medgidia Cement factory. The water 10267-89, total ionic iron SR ISO 6332- 96,
pollution sources present in the area of SR 13315-96 and STAS 3086-68, zinc STAS
Romanian seaside, or the situation of surface 6327-81, phenols STAS R 7167-92.
sources, respectively of sewerage network The evolution of the indicators tracked for
and of wastewater treatment plants. appreciating the quality of potable water has
shown that the majority fits into normal
2.1. The researched material limits, some of them even being situated well
under the admissibility limit. There are,
Galesu catchment is a water source though, two exceptions, the ammonium
coming from Poarta Albă–Midia Năvodari quantity which was situated above the
Canal, with an installed total capacity of admitted limit during the period 2005-2006,
44151/s or 16650 m3/h and a nominal power going down slowly under the limit in 2007,
of 5930 kW, being used for obtaining potable growing slowly in 2008 and the iron one,
water in the town and in the north area of which had a growth during 2006, and then
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decreased in 2007. Seeing it as a whole, we in figure 2 situated near the economic agents
specify that the occurred overcomes are studied in the thesis mentioned above, are:
mainly due to facilities for treating the Midia Năvodari-personal system that serves
obsolete and worn out water. the Petrochemical Factory, CET Midia and
The treatment represents the complex Navodari town, Poarta Alba wastewater
process of restraining and neutralizing the treatment plant and Constanta North and
dissolved harmful substances, in suspension South wastewater treatment plants.
or in colloidal form present in the industrial
wastewater or domestic waters, in wastewater Figure 2 Wastewater treatment plants
treatment plants [2]. The main purpose is that
of improving the quality of these waters in
order to be discharged in the emissary
without affecting the flora or the fauna. After
the water is treated in wastewater treatment
plants, it can even be reused in certain fields
or technological processes.
The wastewater treatment, depending on
the water characteristics and on the
requirements of the evacuation in the
emissary, needs mechanical-biological
simple wastewater treatment plants or
complex wastewater treatment plants. The
wastewater with mostly inorganic character
will be treated in wastewater treatment plants
only through physical and chemical means of
restraint and neutralization: sedimentation,
neutralization, precipitation, coagulation,
flocculation, absorption onto activated Source: Neacşu Gabriela, 2009, [4]
carbon, ionic exchange. The wastewater with
a mostly organic character is treated in a CET Palas has a sewerage network of
wastewater treatment plant through physical, approximately 5 km inside the enterprise
chemical and biological procedures. where the waters are taken by RAJA
The waters treatment in wastewater Constanta, the wastewater quality being of
treatment plants is tracked through level I (source: Environmental engineer
determinations before and after the entering inspector Madalina Munteanu). According to
in the system for: pH reaction; fixed and NTPA 002/2002 “for the wastewater
volatile solid suspensions, BOD5 – the evacuated in the towns’ sewerage networks”,
biochemical oxygen demand for five days, in we tracked: the hydrogen ions concentration,
mg/l, necessary for the biochemical oxidation pH according to SR ISO 10523-97, the
of organic matters at a temperature of 20o C matters in suspension STAS 6953-81, the
and in conditions of dark; COD – chemical biochemical oxygen demand for five days
oxygen demand, in mg/l for the oxidation of STAS 6560-82, ammonium nitrogen STAS
oxidised mineral salts and organic 8683-70, sulphates STAS 8601-70, lead
substances, based on potassium dichromate 8637-79 and cadmium SR ISO 5961-93
or permanganate; the nitrogen presence met [6],[7].
under the form of free ammonia, organic The samples of wastewater discharged
nitrogen, nitrates and nitrites; the presence of into the sewerage system, made during the
microorganisms which are of different types, months: March, July and September in 2009
some of them contributing to the treatment at CET Palas, have emphasized the fact that
process, and others producing diseases and in general the matters in suspension and the
infections to people and animals; their oxygen chemical content are situated well
presence leads to the necessity of disinfecting below the acceptable limit, the ammonium
the water when it comes out from the presents oscillations registering peaks in July
wastewater treatment plant [3]. and September, being situated though under
The wastewater treatment plants present the acceptable limit, as for the rest of the
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other indicators, the lead and sulphates sea, the pumping station being designed to
content is also very low, the only overcome allow when needed an exchange of waters
registered is at cadmium in September. between the two lakes for regulating the
The waters discharged near the Navodari levels [1]. Through this common system, the
lock are wastewater that came from the control and the maintenance of the medium
sewerage network of Navodari town, level of Tasaul lake became possible,
collected both from the economic agents avoiding the unwanted oscillations of level
present in the town, others than Midia due to flow variations of the main affluent -
Petrochemical Factory, and from the Casimcea. After 1988 there was a general
population. The sampling took place before tendency of alkalinisation of Tasaul lake
the samples were treated in the Midia waters, the annual average values of pH
wastewater treatment plant. The wastewater registering increases of up to 8,8 and even
discharged here come both from Midia port more in the next years, fact that conferred the
and from Midia power plant. Midia lake an alkaline aspect, which situated it to
Petrochemical Factory discharge the the superior limit of the acceptability for a
wastewater in the emissary lake specially lake with fishery destination.
created for this purpose that is connected to
another lake situated in Chituc sand bank and 2.2. Methods and instruments used
which is finally linked to the Black Sea.
As a general observation, we can say that The evolution assessment of the waters
we can’t establish a connection between the pollutants in Constanta County was realized
industrial activity and the summer season, in virtue of sampling conduction, as well as
within the meaning of diminishing the of data provided by: Environmental
activities with impact on the Black Sea coast Protection Agency Constanta, Dobrogea
during the summer season. Litoral Water Directorate Constanta, S.C.
The lacustrine system Taşaul – Corbu R.S.J.A S.A. Constanţa and National Institute
(Gargalâc) in the wide bay found between of Marine Research –Development „Grigore
Midia Cape and Pescariei promontory lie the Antipa” tracking those water resources that
lakes: Corbu (Gargalâc) and Taşaul. From were directly connected to the thesis subject
Midia Cape to Constanta the relief is much and to the economic agents studied within the
flat, three steps being remarked. On the third thesis.
step which is presented under alluvial, sandy
form there are located the territories of 3. Discussions and results
Taşaul and Corbu (Gargalâc) lakes, isolated
from the sea through well consolidated In the studies conducted on the polluting
seaside. Tasaul and Corbu lakes have a industries, we permanently considered the
reduced underground supply limited to the importance that the Romanian Black Sea
contribution from the underground and from coast has, as a curative and recreational
the patches of limestone. factor for the development of regional and
The samplings are made in the exit national tourism. In this context, we can
sections of Corbu lake, the connection with highlight that in a relatively young economy,
Tasaul lake and the centre of the lake. The as the one from Constanta County, a balance
lake Tasaul falls in the category of lakes with between the industry and the tourism has to
brackish water, with the mineralization be kept, a symbiosis between the two
between 1-24,7 g/l. Corbu lake can be used branches in full development has to be
for fish being exploited by S.C. Pestom S.A. created.
(Corbu arrangement), using annually a The water is an environmental factor just
volume of 3194 thousand m3 of water, as important as the air. Therefore, the paper
quantity entirely returned. Tasaul lake is presents a series of measures with protection
exploited by S.C.Pestom S.A. (Kogalniceanu role, presented in table 1.
arrangement), which uses 1300 thousand m3 The plan elaborated as a guidance guide
and R.A.I.F. Constanţa for irrigations. For of the economic agents in view of sustainable
example in the case of Tasaul lake, the two development comprises a series of measures
lakes Tasaul and Corbu have been provided that targets the industry agents, whose
with a common system of discharge into the technological processes affect the
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environment.
Table 1 Measures to improve environmental quality water in areas with tourism potential
But the lack of financial funds that are to would be that related to applying investments
be invested in the environment protection, programs that refer to the implementation of
and the rare check from the Environmental clean technologies, for examples wetlands
Protection Agency determine that most of extension, that are often used in the world,
economic agents cumulatively pollute but very little known in our country, although
(especially if they are concentrated in the Petromidia has such a system for 25 years,
same area, as in Constanta case) almost as the emissary from Corbu village. Initiating
big economic agents do [5]. some actions that lead to forming such lakes
(we would rather recommend the artificial
4. Conclusions ones) would have as effect the territory
mapping in order to track down the
An action that would especially concern appropriate situations where they could be
the economic agents with financial power located (as close as possible to the economic
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Sabou Simona
Economic Sciences and Physics Department, Faculty of Science, North University Center
of Baia Mare, Technical University of Cluj-Napoca
simona.sabou@gmail.com
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tourism, has been constantly growing in 183. So, this year, tourists accommodation
recent years. structures in Maramureş represented 31% of
In 2010, in Maramureş, 2.37% of the total the total existing in the North – West Region.
number of employees in the county were Of the 183 tourism units most fall into the
employed in 'Hotels and restaurants', category farmhouses (110), followed by
according to data from the National Institute urban and rural tourist guesthouses (35),
of Statistics [2]. The trend is towards hotels and motels (27), as shown in Table
increase, but the pay is low compared to 1[3].
other fields of activity.
In terms of tourism infrastructure, there is Table 1: Structures of tourist
1 Tourist Information Centre in Maramureş. accommodation in the North - West and
There are 5 such centers in the NW Region, Maramureş in 2008
the rest being in Cluj (3) and Bihor (1). There Tourist accommodation NW MM
is also an association that promotes tourism Region
in Maramureş. Hotels and motels 141 27
The number of existing tourism agencies Inns 1 0
in the North – West Region in 2012 was 322, Chalets 20 4
of which 39 were in Maramureş County. Camping and cottage 12 0
Most of these agencies have operated in Cluj type units
(171) and Bihor (58), Maramureş being on Villas and bungalows 89 4
the 3rd position. Camps for students and 19 3
In the North-West Region, in 2008, there preschool
were 585 tourist accommodation structures, Urban and rural 67 35
according to data from the Cluj Regional guesthouses
Department of Statistics [3]. Of these, the Holiday villages 0 0
majority were in Cluj (206) and Maramureş Farmhouses 225 110
(183).
Hotels for young people 3 0
In terms of percentage, their distribution
Hostels 5 2
between the counties of the NW Region is
Tourist stops 3 0
shown in Figure 1 [3].
Sea accommodation 0 0
Figure 1: Percentage distribution of tourist Total 585 183
accommodation structures for the counties of Source: Cluj Regional Department of
the NW Region in Statistics (2013), Regional Statistics,
2008 [Online], Available:
http://www.cluj.insse.ro/cmscluj/rw/pages/sta
tReg.ro.do [March 31, 2013].
SJ BH
SM
11%
4% 14%
BN
4%
The structure existing in Maramureş
follows the regional trend. At regional level,
also, most tourist facilities are farmhouses,
MM
31% CJ
which account for 38% of all tourist
36%
accommodation structures in the Region.
However, in Maramureş, farmhouses
represent a much higher percentage, i.e. 60%
Source: Cluj Regional Department of of all tourism facilities.
Statistics (2013), Regional Statistics, The number of farmhouses increased from
[Online], Available: year to year. For example, in 2006, there
http://www.cluj.insse.ro/cmscluj/rw/pages/sta were 87 registered farmhouses in Maramureş
tReg.ro.do [March 31, 2013]. County; in 2008 the number increased to a
total of 110 [3].
Tourist accommodation structures in Figure 2 shows the distribution of the 225
Maramureş County had an upwards trend. farmhouses existing in the NW Region, for
For example, in 2006, 146 such units were the 6 counties [3].
registered, while in 2008 that number grew to
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Figure 2: Distribution of farmhouses in the Maramureş is part of the same trend, the
six counties of the NW Region in 2008 value recorded in 2006 being 1.199 thousand
– days, 1,454.8 thousand - days in 2008 and
1567.0 thousand in 2011. The values
SM SJ
2% 2%
BH
4%
BN
1%
recorded for each county in the North - West
Region in 2011 are shown in Figure 3 [3].
MM
CJ Figure 3: Accommodation capacity in
42%
49% operation expressed in a thousand people -
days for each county in the North – West
Region in 2011
3500
http://www.cluj.insse.ro/cmscluj/rw/pages/sta 1500
1570
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- thousand tourists - MM
9%
6%
2000 74.4
2001 93.8 BH
44%
2002 89.4
2003 86.0 CJ
29%
2004 79.0
2005 91.4 BN
9%
2007 97.0
2007 108.8
2008 106.1 Source: Cluj Regional Department of
2009 91.5 Statistics (2013), Regional Statistics,
2010 92.5 [Online], Available:
2011 107.1 http://www.cluj.insse.ro/cmscluj/rw/pages/sta
Source: Cluj Regional Department of tReg.ro.do [March 31, 2013].
Statistics (2013), Regional Statistics,
[Online], Available: The evolution of the number of people
http://www.cluj.insse.ro/cmscluj/rw/pages/sta who stayed overnight in Maramureş is shown
tReg.ro.do [March 31, 2013] and the North - in Table 3 [3].
West Regional Development Agency - North
- West Region Development Plan 2014 – Table 3: Evolution of the number of
2020, [Online], Available: http://www.nord- people who stayed overnight in Maramureş
vest.ro/SERVICIIPentru-Dezvoltare- from 2000 to 2008
Regionala/PLANIFICARE- Year Number of people who spent the
REGIONALA/Planul-de-dezvoltare- night in Maramureş
regionala-2014-2020.html, [April 04, 2013]. - Thousand tourists -
2000 185.1
In 2011, the number of tourists arriving in 2001 216.3
Maramureş was 107,100 persons, 32,700 2002 192.8
persons more than in 2000 [4]. The highest 2003 191.0
value was recorded in 2007, when 108,800 2004 186.0
tourists arrived in Maramureş. However, the 2005 208.7
values recorded in 2000 are lower than the 2007 211.0
ones recorded in 1995, when 123,200 tourists 2007 229.0
arrived in the county. 2008 215.9
The number of overnight stays also Source: Cluj Regional Department of
increased in the North – West Region, Statistics (2013), Regional Statistics,
reaching 2,536.9 thousand tourists in 2008, [Online], Available:
while the value recorded in 2000 was 1,960.8 http://www.cluj.insse.ro/cmscluj/rw/pages/sta
thousand tourists. The values mentioned are tReg.ro.do [March 31, 2013]
still lower than the value recorded in 1995,
i.e. 2,542.2 thousand. Tourists who spent the The number of tourists who stayed
night in the North – West Region in 2008 overnight in Maramureş was 215,900 tourists
chose Bihor as their destination, as can be in 2008, a value higher to that recorded in
seen in Figure 4 [3]. 2000, 185,100 tourists. During this period the
highest value was recorded in 2007.
Regarding the of net use index of
accommodation capacity in operation
(number of overnight stays compared to the
accommodation capacity in operation), it had
a fluctuating evolution in recent years in the
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References
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Volume XIII, Issue 1/ 2013
Șarlea Mihaela
Manţa Ştefan George
Vaidean Viorela Ligia
„Babeş-Bolyai” University Cluj-Napoca
Faculty of Economics and Business Administration
mihaela.sarlea@econ.ubbcluj.ro
stefan.manta@econ.ubbcluj.ro
viorela.vaidean@econ.ubbcluj.ro
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graduates has fallen dramatically, from system. However, in 1993, the idea of a new
674400 students to 47800. This had a major reform appeared on the Government's
impact on universities, the decline being agenda, intended to optimize University
profound. The reforms introduced after this system and trying to make it compatible with
period managed to stabilize and revitalize the the economic situation. The process was
system. Structural reforms have been long; the first steps were taken in 1998
initiated in respect of the management of the aiming to achieve economies of scale. Once
institutions, investment, labor recruitment or this reform implemented, the administration
management measures between institutions of universities has returned almost entirely to
[2]. These measures were designed to give local administrations. But perhaps the most
universities greater autonomy and a greater important measure has been that the
opportunity to respond to the needs of education institutions were brought together.
students. Thus, by 2002, 637 universities were merged
One of the largest structural changes to to create 270 new institutions of higher
the higher education system occurred in 1985 education. In addition, 317 universities have
when the Government launched the so-called signed contracts of cooperation for the
"3D" and "3C”reforms [3]. formation of 270 conglomerates.
The Reform of the "3D" included In 2010 the Chinese higher education
depolitization, decentralization and diversity system was formed by 797 institutions which
in the University System. Once this reform offer only postgraduate programs (research
implemented, the control of the University centers), 2358 institutions of higher
has returned to local administrations in order education, 368 centers offering
to obtain a much better cooperation between undergraduate adults and 836 private
education institutions at the local level and institutions (there establishment was
the needs of the communities. Educational approved in 1980). The programs offered are
institutions were given greater autonomy divided into classes of license, master and
with respect to organizational management. PhD programs and are available both to
The phenomenon of depolitization held more national students and foreigners.
at the curriculum level and in terms of Figure 1 The Chinese educational structure
diversity, it was felt primarily through the
establishment of private universities. With
the implementation of this reform amounts
allocated from the State budget to finance the
universities began to fall, which has forced
the management of the educational
institutions to obtain additional sources of
funding from research contracts, tuition fees
or donations.
The second part of the reform, entitled "3
C", is referring to commercialization,
competition and cooperation. The first term,
commercialization, refers to the acceptance
of the idea of imposing tuition fees and the
ability to provide market research and
development services. When it comes to
competitiveness, this refers not only to the
competitiveness of institutions but also to the
one between students, employees or
researchers. With regard to cooperation, it is
necessary to establish partnerships both at
institutional level as well as between Source: authors’ processing based on the
universities and public or private date presented by Finnish National Board of
environment. Education
These reforms had the desired effect and It can be seen that the Chinese education
also revived the Chinese higher education system has a complex structure which gives
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students the opportunity to follow the most international students. In 2011 the number of
advantageous type of preparation. At the end those who decided to travel to China to study
of high school, those who wish to attend the for the first time has exceeded the threshold
courses of a higher education institution must of 290,000 students, their number increased
take a national exam for admission. This over 10% compared to 2010. Students
system is maintained since 1977 when, for desiring to go to China to study come from
the first time, it was introduced such a review countries like Korea, Japan, Thailand, South
because, the number of high school graduates America, and Russia. From European
was very large compared to the much smaller countries, most students come from France
number of places in universities. and Germany.
Graph1.The evolution of students in This high interest that students from all
China, 2005-2010 (millions persons) corners of the world provided to the
educational system in China may be placed
and on behalf of international prestige that
this system offers. In the Academic ranking
of World Universities-man Chinese
education system consists of 28 universities,
of which four are in the top 200. The most
well-established institution is Peking
University followed by the Jiao Tong
University and Tsinghua University.
Graphic 2.The share of higher education
graduates of total population in China,
2000-2010 (%)
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requires a tuition fee of up to $ 2,000 for a need to open up to the world economy, and
bachelor degree and between 2,000 and 4,000 on the other hand changes in socioeconomic
dollars for a Masters program. Even if these conditions nationally.
amounts do not seem to be very high, for a With a growing population, an
Chinese citizen they may represent the whole educational system that gathers hundreds of
income for one year. millions of people annually, the financial
In order to be helpful for the students with effort in the national budget is consistent. In
limited financial possibilities, the State order to increase the competitiveness and the
initiated a support program, through which quality of the reforms implemented that
over 5 billion dollars are spent annually in meant to boost both educational institutions
various forms of grants, loans and tax and students to become more competitive
exemptions. These measures come especially both nationally and internationally.
to help students from rural areas, where the Reduction of funds assigned to universities
standard of living is very low. In 2009, and increase of direct or indirect support to
students have benefited from 622000 aid students represents a form of long-term
programs. However, this number is very investment in human resources.
small compared to the total number of We cannot take into account, when
students, 5.27 millions, coming from poor conducting this analysis, without talking
families [5]. about a country that is based on a centralized
Benefits in the form of scholarships are system. Although officially a decentralization
awarded to students and foreigners. In 2011 of the education system was imposed, it is
the number of those who have benefited from important that, through the measures, China
a program with over 25,000 has exceeded would not intervene in the institutional
14% more than the previous year [6]. Many management and it would allow universities
of these funds are allocated in the form of to adopt policies in line with the
loans, which students must pay back after requirements and needs of the market.
graduation. In daily life this can become a China, the second world economic power,
burden in light of the fact that only one must obey to the economic systems imposed
percent of the 63% of graduates are able to by the international economy. In order to
find a job [7]. maintain this level, it must possess a
To be able to still have an educational competitive advantage also in terms of
system, the Chinese State has approved an education. This can be achieved only through
action plan for the period 2010-2020 which the creation of a system of educational
aims on one hand to increase the quality of quality, giving the economy the experts it
the education system and on the other hand to needs. Investment in research and
extend the population's access to education. development cannot be neglected either. The
Thus, by the year 2020 it is desirable that at allocation of funds in order to create
least 20% of the working-age population to innovative products and services can
acquire higher education, aiming to a generate results that will maintain China
doubling of the percentage recorded in the among the most powerful countries in the
year 2009. It is also desirable that by the end world.
of this period the structure of higher
education to become more balanced across References
regions, to promote and to recognize the
talents, to focus on research and increased [1] U. Brandenburg, J. Zhu, Higher Education in
social services adjacent to the educational China in the light of massification and
process.[8] demografic change. Lessons to be learned for
Germany, 2007
[2] Ministerul Educației din Republica Populară
4. Conclusions
a Chinei, Educația superioară în China, 2009
[3] L. Xue, Universities in China’S National
The higher education system in China is Inovation System
characterized by permanent structural [4] Unesco Institute for Statistics UIS Statistics
changes. These changes can be put on one in Brief, Education (all levels) profile –
side at the expense of international pressure China,2010
to which the country is conducted by the [5] Xinhua,China Daily, Gov’t financial aid for
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Smrcka Lubos
University of Economics, Prague, Czech Republic
smrckal@vse.cz
Colibasanu Oana – Antonia
Academy of Economic Studies, Bucharest, Romania
oana_antonia_colibasanu@yahoo.com
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rate below the level of simple reproduction of of which is somewhat better than that of
the population brings collateral problems European countries, the differences between
from the angles of both public budget developed countries lies more in the extent to
expenditure and income. which they have become caught in the
As far as expenditure is concerned, we are problem. For instance, at any time in the past,
speaking primarily of the above-mentioned the population group aged 0 to 14 years was
pension systems [19] and of healthcare always more numerous than the 65+
expenditures. We should, however, also population group. This means that there were
remember the pressure on other social always more children than pensioners
expenditures which will appear especially in (expressed in today’s language). At the
connection with the growth of the population beginning of the second decade of the 21st
in the 80+ age group. century this ratio, however, reversed in
As regards income, this concerns numerous states. We can name Italy,
primarily a decrease in the general gross Germany, Spain, Portugal or Greece. Over a
domestic product or other similar aggregated small number of years the remainder of
data expressing the entire economic volume Europe will find itself in the same situation.
of a given country. This will also be In the Czech Republic, this will evidently
connected with a decrease in tax revenues – come to pass in 2014 or 2015; in 2020
on the one hand, influenced by a general society will comprise of approximately 16.2
decrease of economic volume; on the other percent children, whereas the ratio of people
hand, insofar as the amount of taxed persons over 65 years old will be almost 17.2 percent.
will diminish, as will income from taxed In 2050 this will be approximately 14.3
businesses. Whether this will occur as a percent children to 29 percent of people aged
result of their decreased profit or transfer of 65+ years.
production to other countries not affected by We basically see two highly significant
these demographic complications is phenomena: Firstly, a deceleration in the
irrelevant. global dimension of population growth
Economic systems of developed countries (International data Base, 2011); secondly, the
which have been referred to over the past precise opposite of catastrophic predictions
twenty years as new economies or knowledge regarding the complete overpopulation of our
economies and which place their hopes in the planet is taking place [8]. We can with a
development of creative industries will, pinch of salt say that if our planet is indeed
instead of assumed economic growth, arrive threatened with overpopulation, this will be
at a historically unknown situation (at least an overpopulation of “pensioners” in a best
unknown in peacetime), to which we will case scenario, in which these people have and
refer as the “old-age trap” for want of a better will have created sufficient reserves for their
expression. old age. A more likely scenario, however,
shows a population of people past productive
2. The “old-age trap” in the Czech age, whose prolonged lives will be
Republic from the angle of expenditure financially secured only in the most
inadequate way [10].
As a departure point, let us use the If we examine this demographic
premise that the demographic development development more closely, this shift can
of developed countries is basically similar, adequately be shown by the so-called
which is in very approximate terms a true demographic tree. In the first picture we can
notion confirmed also by data (UN 1982, observe the shift between 1991 and 2010 and,
1999, 2002, 2010, World Bank 1994). In as we can see, the tree has substantially
reality, however, this development varies narrowed in the lower section of the youngest
quite considerably in individual countries. population groups, although the change in the
From our point of view, the most important other age groups are not yet marked.
issue is direction, and in this regard we can
assert that it is truly very similar, regardless
of the above-mentioned differences in
numerous details. If we do not include the
United States, the demographic development
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cash flow problems and, most importantly, is absolutely certain that among developed
financially unstable. Moreover, costs for countries there is one which could afford to
healthcare dramatically grow with the do this without transferring a significant
progression of age. portion of the expenses to the population –
Another aspect is the prolonging of time for instance, by means of increasing so-called
over which the older generation will draw health insurance or, more likely, by means of
higher expenses for healthcare due to serious a significant reduction of the guaranteed level
or relatively serious illness. Let us note that of healthcare.
in certain countries – e.g. in Hungary or in But here we are moving beyond the limits
Germany – the average citizen will clearly of our reflection as expressed in the
fall ill or will face significant health introduction of the text.
problems as early as ten years before he
becomes entitled to old-age pension. 3. The “old-age trap” of the Czech
Generally, we can summarise these Republic from the angle of income
observations into a contention that
demographic development will exert The problem of the “old-age trap” from
considerable and systematic pressure on state the angle of future income of the public
budgets, whereas this pressure cannot be budget and thus from the angle of creating
estimated at the given time and we have no the gross domestic product is analysed far
method at our disposal that can quantify it. less than the problem of future expenditures.
This pressure will arise from two highly It is known that capital does not suffer from
sensitive political areas – from the need to over exaggerated sentiment, so it cannot
finance the pension system and the need to really be assumed that it will remain in
finance healthcare for the population. countries that will in the coming decades
European countries arrived at a complicated begin to be simultaneously confronted by
state of affairs at an early stage when (while several kinds of negative pressure as a result
developing the concept of the social state) of their demographic parameters. It is
they took it for granted that the government necessary to properly understand that this
is responsible for the pensions of the strain (from the angle of capital) will begin to
inhabitants and also that the population were transform into significant risks with the
to be provided with healthcare which we passage of time. We can summarise these as
could deem as state-of-the-art in the world follows:
context. As we know, reforms of the pension Strain on the expenditure side of the
system are in progress and are primarily budget (the pension and healthcare system)
moving in the direction of responsibility for will transform into risks of increased labour
individual living standards being transferred costs and into risks of higher taxation which
to individuals because countries are gradually affected countries could resort to as a
declaring that only basic and rather low reaction to the unsustainable state of public
pensions will be paid from public resources. finances burdened by forced payments in the
It naturally took over twenty years before the context of the pension and healthcare system.
European public grew accustomed to this The lack of manpower in the area of
idea, yet this still does not mean that it has creative workers will lead to a growth of
fully accepted it. Problems with healthcare salaries in these fields, the same development
are not being discussed for the time being – will occur among manual labourers also,
aside from occasional observations from the especially among those who need high
economic field that the present concept of qualifications to perform their duties.
highest possible standards paid by state- Demographically exhausted countries
organised insurance is unsustainable. with a small proportion of young inhabitants
Thus, as far as estimates regarding the will not provide sufficient innovatory
growth of state health expenditure are potential.
concerned we can expect that the retention of The entire field of creative industries will
the present system and standards will in the on the one hand suffer a lack of creative
next two decades double the costs for this forces. On the other hand, it will be
system; they will, however, probably triple especially drastically affected by a reduction
(not including inflation). Let us consider it of domestic demand as the increased ratio of
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inhabitants 65+ to the population as a whole specific qualifications and the ratio of posts
cannot be an assumption for stable demand in for the unskilled or uneducated is not at all
these fields. Creative industries are based on marked.
new methods, new experiences, constant High recruitment of workers from abroad
change and development. Age groups falling between 2005 and 2008 showed that, as far
into the general appellation of 65+ will not as the education structure and measure of
be the natural consumers of products from qualification is concerned, the Czech
the creative industry. Republic is not in a position to attract highly
The entire area of domestic demand will qualified workers. It is probably not possible
undergo significant changes and will be to expect an improvement from this
transformed in the direction of demand for direction. Thus, during the time of the
other merchandise and services than those greatest economic growth, 290 thousand
that have been in demand until the present. people worked in the country legally (in the
There will be a substantially greater demand second half of 2008), their numbers dropped
for pharmaceutical products, dietary sharply during the crisis. Roughly seventy
supplements, services of a social character. percent of these legal (but temporary)
On the contrary, there will be a reduced workers were employed in blue-collar
demand for services and products consumed professions, and in this context in less skilled
more by the younger generation. This natural professions. This is not to say that many of
reform of domestic demand (whereas we are them were uneducated. Often well educated
in the context of the term domestic demand people were in question, though their true
now thinking of demand in developed qualification is completely different and
countries as a whole) will be costly for mostly unusable outside of their countries of
entrepreneurial subjects and will also be origin (the classical example is teachers of
accompanied by complications in the area of national languages).
buying power of the growing numbers of the On the other hand, qualified employees
65+ age group. These will be caused came almost exclusively from the Slovak
primarily by problems with the securing of Republic. But because the Slovak economy
the pension system and by a marked growth has been growing faster than the Czech
of costs among these consumers in terms of economy for several years, whereas the
securing their own health as a top priority. demographic development in the Slovak
Republic is similar to that of the Czech
4. Conclusions Republic, a further influx of workers from
this region can probably not be expected.
A significant drop in available manpower The change in the demographic structure
will manifest itself in the whole economy; of the population and the general drop in the
the impact on individual fields will vary. number of inhabitants – even if these
From the angle of gross domestic product, phenomena are partially alleviated by a
the processing industry is the most positive migration balance – will lead to
substantial in the Czech Republic (1.242 extensive changes in the structure and
million employees) and commerce (0.631 performance efficiency of the economy in the
million employees), followed by construction Czech Republic. This shift can be expected in
(0.497 million employees) and transportation the imminent twenty years, that is, until
(0.331 million employees), whereas the total 2032, whereas pressure for changes and
number of those employed in the entire especially the depth of these will steadily
national economy was 4.934 million people grow stronger.
(2009). At the same time 0.352 million
people were unemployed (in the sense that 5. References
they were registered at the appropriate
employment bureaus) of which over two [1] ARLTOVÁ, M., LANGHAMROVÁ, J.
thirds were people without education or only (2010): Migration and ageing of the
with secondary education without population of the Czech Republic and the EU
countries. Prague Economic Papers 19 (1),
matriculation. As regards qualification
str. 54-73, Prague.
assumptions, the most marked were the
processing industry, which requires several
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[2] CIKÁNEK, M. (2009): Kreativní průmysly: [17] UNITED NATIONS (2002): Madrid
příležitost pro novou ekonomiku, Institute of International Plan of Action on Ageing,
Art - Theatre Institute, Prague, 2009 Madrid 2002.
[3] CSA (1992): Statistical ročenka České [18] UNITED NATIONS (2010): World
republiky 1992. Czech Statistical Authority. Population Ageing, Economic&Social
[4] CSA (2009): Projekce obyvatelstva České Affairs, New York, Accessible [16.5.2011] at
republiky do roku 2065. Czech Statistical <http://www.un.org/esa/population/publicatio
Authority. Accessible ns/WPA2009/WPA2009-report.pdf>.
at <http://www.czso.cz/csu/2009edicniplan.n [19] VAN DER NOORD, P., HERD, R. (1993):
sf/p/4020-09> [8. 6. 2012]. Pension Liabilities in the Seven Major
[5] CSA (2010): Statistická ročenka České Economies, OECD Working Paper.
republiky 2010. Czech Statistical Authority. [20] WALKER, A. (1981): Towards a Political
Accessible Economy of Old Age, Revised version of a
at <http://www.czso.cz/csu/2010edicniplan.n paper presented at the British Society of
sf/kapitola/0001-10--0400> [7. 6. 2012]. Gerontology Annual Conference, Aberdeen,
[6] CSA (2012): Výsledky zdravotnických účtů 1980, Ageing and Society, 1/1981, pp. 73-94.
ČR 2000 až 2010, Czech Statistical [21] WORLD BANK (1994): Averting the Old
Authority. Accessible at Age Crisis, New York, Oxford University
http://www.czso.cz/csu/2012edicniplan.nsf/pu Press
bl/3306-12-r_2012 [25. 6. 2012]
[7] INTERNATIONAL DATA BASE (2011).
U.S. Census Bureau, Population Division.
Accessible [16. 6. 2011] at
<http://www.census.gov/ipc/www/idb/index.
php>.
[8] MALTHUS, T. R. (1798): An Essay on the
Principle of Population, London. Accessible
[10.5.2011] at
<http://www.econlib.org/library/Malthus/mal
Pop1.html#Chapter%20I>.
[9] MEADOWS, D. H., RANDERS, J.,
MEADOWS, D. L., BEHRENS, W. W.
(1972): Limits To Growth, A Potomac
Associates Book, New York.
[10] PETERSON, P. G. (1999): Gray Day: The
Global Aging Crisis. Foreign Affairs Jun.-
Feb. 1999, pp. 39-52.
[11] PHILLIPSON, Ch. (1991): The social
construction of old age: perspectives from
political economy. Reviews in Clinical
Gerontology, 1, pp 403-410.
[12] PIŇERA, J. (2001): Liberating Workers: The
World Pension Revolution. Cato´s Letter, n.
15, Cato Institute.
[13] SCHOLEFIELD, A. (2001): The Death of
Europe. The Salisbury Review, 4, pp 26–28.
[14] STEYN, M. (2006): It´s the Demography,
Stupid, The New Criterion. Accessible
[10.5.2011]
at <http://www.freerepublic.com/focus/f-
news/1550710/posts>.
[15] UNITED NATIONS (1982): Vienna
International Plan of Action on Ageing,
Vienna 1982.
[16] UNITED NATIONS (1999): The World at
Six Billion. Population Division, Department
of Economic and Social Affairs, United
Nations. Accessible [16.6.2011]
at <http://www.un.org/esa/population/publica
tions/sixbillion/sixbillion.htm>.
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on investment activity and hence locally and implementation of decentralization for local
on meeting the priorities set out in the autonomy.
general interest of citizens (combating Local authorities are becoming more
poverty, improving living conditions)[1]. involved in the development of local public
Consequently, the administrative choice is investment to improve the quality of life of
influenced by political factors and this that community. This is based on the
element is the substantive difference between tendency in many countries registered
public and private investment. decentralization, which involves giving
With foundation for the rule of law, that greater responsibilities to local and regional
the separation of powers, decentralization of authorities. They know best as interest in the
public services and local autonomy, areas they control and will do everything
organizational and functional structures of possible to achieve local development
government are located both at the state objectives.
(central government and state territorial Local autonomy in the administrative
administration) and in the communities local territorial structure is achieved by regulation
(local government). Local government is and decision (council) and the operating
what form of organization best suited to the structure (town hall). It can be said that the
idea of autonomy, being associated with it, government is self because local autonomy is
through the principle of decentralization actually an expression of the principle of
unlike state administration of the territory, administrative decentralization. This
which has little autonomy, through the independent regional and micro regional
decentralization principle that characterizes administration assumes an organization of
it. We can say that the basic function of local communities and local structures
government is the needs of the communities complementary central government
of administrative units, always having a organization. In the "European Charter: local
continuing relationship of proximity with autonomous exercise of power", adopted by
citizens. the European Council on 15 October 1985,
the essence of this principle is found linked
3. Conceptual approaches regarding local to local communities both local (communes,
administration districts and departments) and in regional
communities (regions) [5].
Administration is one of the most useful Networking relations between central and
human activities are found in any area and at local authorities, and also inside of local
all levels of government, in all its complexity authorities, have been changed by the
of social life revision in 2003 of the fundamental law of
Etymologically speaking, the term the state, emphasizing the two concepts in
"administration" comes from Latin and is line with the developments of European
composed of the prefix "add" which means Member: local autonomy and
"to" or "to" and "ministry" which means decentralization of public services. Relations
"servant", "help" or "caretaker"[2]. The word between structures representing local level
"administer" means a state of inferiority (institution mayor and council) and local
execution of one or even help tool, tool. representatives of the central system
Explanatory Dictionary of the Romanian (prefects) are subject to the principle of local
Language provides for the verb "manage" autonomy.
explanation "drive", "to rule" or "to Local autonomy attributes symbolizing
administer an enterprise or institution" and the existence of local political structures and
the term "administration" means all of a state debt capacity to solve problems in the
administrative organs [3] . Romanian community interest. In fact, it made the
administrative system comprises 41 counties transfer of powers from the central
and in Bucharest, 320 cities in 103 administrative authorities operating at the
municipalities, 2,860 or 12,951 villages level of municipalities; there are a number of
common [4]. The large number of common problems with providing limited support
and there are three levels of local government necessary to fulfill their material (material
in our country meets the requirements for the resources, logistics, human resources and
organization of local government in the providing financial resources).
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today's professionals, took place in the early development is given the explosive growth of
1970s after the feeling of shock due to energy population. Specialists are very worried
crisis. Significant is the first use of because although developments in food
"sustainable development" by the Prime production and population are both
Minister Gro Harlem Brundtland in 1987 in progressive, one has an arithmetic
the report regarding the future of mankind progression while the other geometric. In this
but the imposition concept materialized with context, the overall amount of food will
the United Nations Conference on always be less than the demand for the
Environment and Development held in Rio planet's population.
that VUT de Janeiro in 1992. The specialized The existence and perpetuation of
literature covered by someone can give sustainable development is possible where
meaning endorsed as sustainable environmental characteristics overlap with
development: meeting the current needs of the culture and spirituality of the community
society must be made without compromising that is also part of the ecosystem, where
the ability of future generations to meet their people take care of the surrounding nature.
needs [7]. What you need to do a community concerned
Synthesizing and many approaches to with the future is to have long-term policies
achieving sustainable development concept and very long interconnected and integrated,
early on, we can say that natural resource taking into account both economic and social
belongs to a generation within cause and issues as well as environmental ones. In light
effect, that any social unit should not be more of this reality is an abundance of natural
debt than it can pay to her during life. In resources does not always ensure a positive
other words, sustainability is a property set to development of the economy, not to talk
operate in a perpetuum mobile, i.e. about environmental damage compensation
indefinitely without exhausting resources to provided. Inability to achieve a positive
major. Solving this problem requires the effect by exploiting plentiful biological
involvement of all stakeholders; it is a burden resources is determined either by
multisectorial and multiple stakes. mismanagement of resources, either by
Meanwhile, her approach should be a inefficient management. The inefficiency
cooperative manner with holistic methods. may be allocative or productive, that
Sustainable development is actually at the meaning do not exist a proportional
moment emergency doctrine that economic allocation between different establishments
development should not be seen only in the or there do not consistent combination of
short term but have a time constant taken to production units.
infinity. Green jelly should be well respected All concepts of development in our
by all communities, their actions should not country must be affiliated to restore and
be above the biosphere, the laws of physics maintain the ecological balance in the short,
and chemistry that have made our life on medium and long term. Therefore, the
earth. Lately were debated and adopted resources must be the energy, but in an
international convention that applies scale on amount and over a period to ensure the
biological environmental restoration, so restoration of values. In conclusion,
basically the sustainable future development. sustainable development must satisfy two
Main negative effects produced by previous conflicting goals: ensuring the standard of
economic activity that must be addressed by living of the population without affecting the
future developments are biodiversity standard of living of the biosystem. As can
conservation, protection of forests and be inferred and the present role of public
limiting the use of certain chemicals. investment in solving problems such as
Although they seem antagonistic environmental protection, restoration of
concepts, economic development and ecological balance where it was broken, etc.
environmental protection should be The natural consequence is that in almost all
consolidated and seen together so adversely areas of life will make drastic changes and
affected the environment in a given time and managers of administrative units will require
space to be always followed by an excellent managerial skills to be able to
adjustment measure. Another element that translate the legal and practical paths to this
has a negative role on sustainable goal and achieve desired results society.
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They both consumer habits have changed and f. provide attractive area increases as
people's conception about the economy, the quality of local public services;
society and politics. When we, Romanians, g. promoting public welfare and local
need a steady transformation of mentality, economic units by maintaining a
permanent and active participation in local favorable local climate.
life in all its aspects, cancellation excessive Achieving the ultimate goal of sustainable
bureaucracy and secrecy at a constant development of the area can be obtained by
awareness of our actions and the impact on proper exploitation official use and
the present life and future. For sustainable development policies. Like any political
growth, we all need to think unselfishly if we action, it is an attribute of the authorities, this
could achieve our personal interests would local time and are represented by the
coincide perfectly with the interests of the following factors: human resources; transport
community, so that it will reach a infrastructure; financial resource , Real estate
modernizing democracy. assets; intake and division management
Local government is the body itself from duties; environment and lifestyle;
the administrative point of view and one that organizational capacity.
manages the welfare of the community he Within the European Union, the objective
leads by actions leading to economic growth of sustainable development is pursued in the
of the area. It is the guarantee of a positive regions because they can mobilize energies
development of the unit by creating and resources. The core problem remains the
opportunities for local economic stimulus establishment of competence in accordance
initiatives in the particular system: policy with the principle of subsidiary, but that does
development on which to create new not create problems of administrative
businesses or develop existing ones, ensuring structures, not anime ideas separation on
local fiscal policy to encourage businesses in ethnic solidarity and not touch.
the area, achieving optimal urban plan that
meets the needs of development, sale or entry 5. Conclusions
into concession - based on the favorable
situation for the community, land or services. Throughout this paper, we have presented
Thus, actions that contribute to the welfare of concepts related to the management of local
the population are [8]: authorities in sustainable development of the
a. the study of the economy of the area area. Also considered important to involve
and making a complex and interrelated local authorities in improving the quality of
political development of the region; life of its citizens after making public
b. coordination of economic investments in areas of general interest to the
development in the area, so as to local community. I believe that local
achieve interoperability between governments are better able to discern and to
public and private in the whole interconnect a whole puzzle consists of
economic resources; private economic structures of the area. Local
c. as coordinator of local economic government is the body itself from the
development, local authorities administrative point of view and one that
establish plans and strategies in the manages the welfare of the community, he
short, medium and long; leads by actions leading to economic growth
d. project management, the foundation of the area.
of local economic development The effectiveness of the sustainable
programs and policies (for proper development takes place only if the local
strategic planning, local budget government and community consensus given
instruments and financial the existing resources and enter into a
management are critical); commitment to partnership with the private
e. providing local public services sector to create jobs and stimulate economic
(water supply, transport, sanitation, activity in an economic area defined. In order
public lighting and fire prevention, to assess and manage potential situations of
protection and security of citizens, crisis management is recommended to
health care, etc.); prevent and combat insurance crisis in the
administrative structures of logistics for the
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References
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investment leads to increases in per capita various segments of equal value xi.
income. I think that in our county, local Disturbance vector u consists of n
government investments characteristics random variable with average 0 and
specific current first because they are below, even asymptotically, a normal
manifested in all areas (infrastructure, distribution.
tourism, education, health, etc.) and are made
Based on the above, I limited the study
in terms of split funding and timetable. So
with the basic unifactorial mathematic model
the investment made concrete takes place
type selecting independent variable as local
during a calendar year effects on living
public investments in Constanta and the
standards experienced by the community.
dependent variable we considered relevant
Social utility of public investment projects
GDP / capita in Constanta.
gives us goals that question is not really
In determining equations, we used the
recover invested funds but create a revenue
software package EXCEL and MS Office 10
stream to allow the administration to
applications listed in: Data Analysis and
maintain the objective of providing
Regression command.
community benefits. When referring to the
Will be introduced for each regression
highway such as Constanta -Medgidia, after
following:
the project has made it possible for road
Entry X - vector of public investment
transport in the area to be faster and cheaper.
Constanta County Council, the independent
I think it is important to know the amounts
variable;
invested in the local government to get the
Outputs Y - vector GDP / capita
most relevant results in terms of welfare
Constanta, i.e. the dependent variable.
experienced by the population.
Regression function must have a
correlation coefficient as close to the value
3. Develop of mathematical models 0.95 to be considered representative. In the
unifactorial type and their utility present model, we used a regression
prediction error (α) of 5%. In studying the
The analytical model involves relationship between independent and
primarily a function of output Y as the dependent variables. However, in order to
dependent variable that accounts for the test hypotheses using F test and t test of
impact of independent variables X and global significance (Student) to verify
associated parameters [2]. How to hypotheses on simple averages to
materialize these items when forecasting compensate for lack theoretical dispersions.
the evolution of GDP / capita in To study the interdependence of local
Constanta County determines the type of public investments in Constanta and GDP /
model to be used. capita in Constanta County will use the
Linear regression by the method of simple regression:
Yt = a 0 + a1Xlt
least squares modeling method is most
often used. Initial assumptions are: 4. Unifactorial type model regarding
1. Array of experiences, observations incidence of public investments in welfare
in variable p is fixed: Xnxp is stochastic of citizens
and n> p. In other words, the data
obtained correctly (without systematic For choosing mathematical function f (x)
errors of observation) are sufficiently recourse to the graphical representation of the
large, so that solutions to provide two rows of values presented in Table 1.
stability.
2. X is of rank p (columns are linearly
independent - form a basis of a vector
space p - dimensional).
3. Value of residual variable are
independent (not correlated). Residual
variable has a spread (dispersion) for
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Table 1. Input data and model output Table 2. Correlation coefficient of the
GDP / capita in Constanta regression function
X Y Y estimated
Nr
Years PI CCC GDP/capita GDP/capita Regression Statistics
crt
mii lei (RON) lei (RON) lei (RON)
1. 2006 23434,906 20449 22599,49 Multiple R 0,833600002
2. 2007 52135,308 22637 23791,12 R Square 0,694888963
3. 2008 75760,832 28630 24772,04
4. 2009 134310,466 27649 27203,00 Adjusted R Square 0,618611203
5. 2010 156190,612 28245 28111,45 Standard Error 2363,296466
6. 2011 231684,044 30113 31245,91
7. 2012* 275961,057 32940,40 Observations 6
Source: Stignei Veronica”Alternative de finanţare
a investiţiilor publice locale şi eficienţa lor”, Where:
Teza de doctorat suţinuta la FEAA Iaşi, 2013 Multiple R - multiple correlation
coefficient. R Square - coefficient of
Note: * - estimated determination (is equal to the square of
PI CCG – public investment made by multiple correlation coefficients). It may be
Constanta County Council thought, expressed in percentage, as the
GDP / capita - GDP / capita for the proportion of the variance of the dependent
county of Constanta variable explained by the variation of
To achieve this you can use Microsoft independent variables: in our model the
Excel inserting the diagram by dots. By variable x explains 69.5% of the variation in
choosing the trend line that best y.
approximates the function can identify the Adjusted R Square - the corrected
equation. coefficient of determination. Is
introduced to offset (partially) the effect
Figure 1. Diagram by-point correlation of mechanical growth of R 2 together
between the investment made by the County with the increasing number of
Council and GDP / capita in Constanta. independent variables..
35000 Standard Error - standard error of the
30000 estimate. It is calculated as the standard
deviation of residues (for the number of
25000
degrees of freedom used ANOVA will
20000 see picture, below) and standard
y = 0.0415x + 21626
15000 R² = 0.6949 deviation error estimate u.
10000
Table 3. Analysis of variance - ANOVA
5000
Regression Residual Total
0 df 1 4 5
0 50000 100000 150000 200000 250000 SS 50880796,09 22340680,74 73221476,83
Source: data processing from Microsoft Excel MS 50880796,09 5585170,186
F 9,109981
If open dialogue Data Analysis, Analysis Significance
0,039229718
F
Tools, Regression (Excel), the analysis of the
Source: data processing in Microsoft Excel
resulting regression function determined in
the following form:
To test the hypotheses will interpret table
To check the correlation between the two
analysis of variance (ANOVA). Columns of
variables y and x have linear correlation
this table have common meanings in a
coefficient R (0.8336) that the more close to
painting ANOVA:
1, the relationship between the two variables
Source of variation - total variance
is stronger. Coefficient of determination
decomposition shows the variation explained
(R 2 ) is 0.6949 (close to 1).
by regression and residual (unexplained)
df - number of degrees of freedom;
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6. References
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Ulman Simona-Roxana
Alexandru-Iona Cuza University, SDEAA, Iasi
simonaulman@yahoo.com
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„The World Economic Forum’s Annual to this idea, Balkyte and Tvaronnaciene, also,
Global Competitiveness Reports have studied sustain that the notion of national
and benchmarked the many factors competitiveness refers to the economic
underpinning national competitiveness” [15]. performance of a nation measured as the
In this report, the competitiveness is defined ability to offer to its citizens high standards
as „the set of institutions, policies, and of living built on a strong and solid basement
factors that determine the level of on the long term and a high possibility of
productivity of a country”. Instead, the choosing the work places for those who want
productivity fixes the level of prosperity and to work [2]. Another competitiveness
the rates of return obtained by investments in definition is given by Subarna and Rajib,
an economy. The definition reveals the who consider that national competitiveness
significance of the national environment for represents the ability of a nation to create and
the process of doing business; environment maintain an environment which offers plus
which is determined by the conduct of the value for its companies and more prosperity
institutions and the policies established by for its citizens [12].
them. In this way, to be competitive means to Economic literature identified a consistent
be able to have positive satisfactory results at list of important factors influencing the
the macroeconomic level. national competitiveness. The social
Porter tried to integrate all the theories infrastructure, including education, health,
about the concept of competitiveness and to public assurance and politic institutions,
create the Diamond Model which was including monetary and fiscal policies which
compound by four important factors of the institutions promote define the wide
competitiveness and the relations between context in which the productive economic
them: factor’s conditions, demand’s activity evolves [3]. Also, national resources,
conditions, the supported and connected geographical position, country size and
industries and the strategy, structure and national culture are important determinants
rivalry of a company, creating, in this way, which make a country to be more
the environment in which the companies competitive than another [11].
appear and learn to be competitive [13]. Different from these perspectives, Porter
Macerinski and Sakhanova consider that, in sustains that national competitiveness doesn’t
this model, competitiveness is defined as the depend only of politic, legal, social,
capability of a nation to create the macroeconomic conditions, because these are
environment which helps companies to necessary, but not sufficient to generate
innovate faster than the foreign competitors, opportunities for wealth creation. This is
assessing the extension of the productivity as created at the microeconomic level, on the
being the most important national strategy basis of operational strategies and advanced
[5]. In addition, Onsel and Ulengin underline practices of the companies, underlying, in
that although many authors consider that this way, the importance of the
competitiveness is equal to productivity, microeconomic level [10].
these two related concepts are different one
by another. Productivity represents a feature 3. The measure of national competitiveness
of the state and competitiveness refers to the realized by World Economic Forum
position of a country compared with others
[7]. Stateskeviciute and Tamosiuniene It was observed that different points of
identify a list of nine national view exist from the perspective of
competitiveness determinants, underlying understanding the concept of
that a country is competitive when it has a competitiveness. This lack of idea uniformity
high standard of living, high rate of is also met when the specialists want to
employment, high productivity, commercial measure it. The existent models select and
equilibrium, high national attractiveness, group different competitiveness factors and
high ability of objective implementation, include them into a general system. So, the
healthy politics, high flexibility and ability of results can vary depending on the used model
sustaining growth [14]. All these of measurement.
determinants reveal different aspects of Different international organizations
macroeconomic performance and, according calculate competitiveness indexes and,
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among them, World Economic Forum although the evaluation was tried to be
publishes The Global Competitiveness Report corrected in this way, the weight of this
every year. It is based on the Porter’s importance is subjectively determined [7].
approach, professor at Harvard Business
School, which is the basis for the Global Figure 1. The key pillars for factor-driven
Competitiveness Index (GCI) construction. economies
Since 2005, the World Economic Forum has
based its competitiveness evaluation on this Basic Requirements:
GCI, „a comprehensive tool that measures
Pillar 1. Institutions
the microeconomic and macroeconomic
foundations of national competitiveness” Pillar 2. Infrastructure
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driven stage and 20% for the innovation- the innovation-driven stage, the Eleventh
driven stage. pillar: Business sophistication and the
Twelfth pillar: R&D Innovation try to find
Figure 2. The key pillars for efficiency- out the quantity and the quality of the local
driven economies supplier, the nature of competitive advantage,
the value of chain breadth, the extent of
Efficiency enhancers:
marketing, etc. and the capacity of
innovation, quality of scientific research
Pillar 5. Higher education
and training
institutions, intellectual property protection,
etc.
Pillar 6. Goods market
efficiency To achieve the measurement in an
Pillar 7. Labor market
objective way, there are used statistical data
efficiency
such as enrollment rates, government debt,
Pillar 8. Financial market budget deficit, life expectancy, obtained from
development
the United Nations Educational, Scientific
Pillar 9. Technological
readiness
and Cultural Organization (UNESCO), the
IMF, The World Health Organization
Pillar 10. Market size
(WHO). There are also used data from the
Key for efficiency- World Economic Forum’s annual Executive
driven economies Opinion Survey.
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Section II
Business Economy and Administration
***
Subsection 1
Economy and Economic Informatics
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of students, the number of teaching staff and variables, I have used the χ2 test statistic
the birth rate. They are annual indicators, (KMO and Bartlett’s Test output). To that
drawn from the official statistics provided by effect, the following statistical hypotheses
the National Institute of Statistics, for the have been made:
period 1990-2011. [10] H0: the independence hypothesis (the
After processing the data in SPSS, there correlation matrix is a unit matrix);
are obtained the following results regarding H1: the dependence hypothesis.[8]
the statistical variables: the correlation In order to test these hypotheses, SPSS
matrix, the calculated value of statistics χ2 provides the calculated value of the test
and of the KMO statistics, the variance in statistics (χ2calculat=219,734) and the
variables, the eigenvalues and the variance probability value associated to the calculated
explained by each factorial axis, the variable test statistics (Sig.).
coordinates on the factorial axes, the Table no. 2 KMO and Bartlett's Test
contributions of variables to the inertia of Kaiser-Meyer-Olkin Measure of Sampling
.681
factorial axes and graphics. [7] Adequacy.
a. The correlation matrix shows the values of Approx. Chi-Square 219.734
Bartlett's Test of
correlation coefficients between the Sphericity df 15
variables, considered two by two. It is a Sig. .000
square matrix, symmetrical towards the main A Sig.<0,05 value associated with the
diagonal. The correlation matrix form is as calculated value of χ2 test statistics shows
follows: that the hypothesis H0 is rejected and the
Table no.1 Correlation Matrix hypothesis H1 is accepted. It can thus
Unit
PSchool No.of No.of Teachin Birth guarantee (with a probability of 0.95) that
pop pup. stud. g staff rate there are statistically significant connections
Units 1.000 .832 .942 -.917 .687 .437 between the statistical variables, and the
School pop .832 1.000 .951 -.799 .469 .717
No.of pup. .942 .951 1.000 -.937 .528 .674
correlation matrix is not a matrix unit. The
No.of stud. -.917 -.799 -.937 1.000 -.414 -.649 calculated value of the χ2 test statistic is
Teaching
.687 .469 .528 -.414 1.000 -.162 sensitive to the sample size: when n
staff
Birth rate .437 .717 .674 -.649 -.162 1.000
increases, the chance of rejecting the null
hypothesis is very high. However, this does
The analysis of correlation matrix not guarantee that there are statistically
coefficients allows the assessment of the significant connections between variables.
possibility of applying the principal The simultaneous analysis of the results
component analysis: the high values of these obtained from testing the independence
coefficients (higher than +0.5 and lower than hypothesis using the χ2 test statistics and the
-0.5) show that there are statistically correlation matrix determinant value allows
significant connections between the variables identifying the properties of this matrix
considered. In this case, the principal which present an interest to the PCA. [9]
component analysis can be applied. The low Identifying the existence of the
values of these coefficients show that there is connections between variables is facilitated
no correlation between the statistical by the calculation statistics Kaiser-Meyer-
variables and, therefore, the principal Olkin (KMO), measure of sampling
component analysis cannot be applied. adequacy. The KMO statistic can take values
A feature of the correlation matrix is that the in the interval [0,1]. A value greater than 0.5
number of correlation coefficients increases indicates that there are statistically significant
significantly when the number of the connections between the statistical variables
variables included in the analysis increases, and, therefore, the PCA can be applied. In
regardless of the size of the statistical our case, a value of 0.681 shows that the
community. This significant increase in solution obtained from the application of
correlation coefficients shows the PCA is a good one.
impossibility of interpreting the connections c. The variance of variables (Communalities
between the variables only by analyzing the output)
values presented in the Correlation Matrix. The standardization of variables leads to
b. In order to test the hypothesis of the new zero average variables and to variance 1.
independence between the statistical The variances of the statistic variables are
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shows the position of the variables on the The position of the variables in this
factorial axis. diagram shows that there is a direct and
Table no.5 Component Matrix strong connection between the variables
Component School population, Number of pupils and
1 2 Number of educational units and that there is
Units .951 .241 a strong inverse correlation between the
School population .943 -.104 variables Number of students, on the one
No. of pupils .997 -.025 hand, and School population, Number of
No. of students -.941 .079 pupils and Number of educational units, on
Teaching staff .556 .802 the other hand.The coordinates of the
Birth rate .666 -.717 variables on the factorial axis represent the
For example, the variable Number of units linear equation coefficients of the
has a highly positive coordinate on the first connections between variables. In our case,
factorial axis (0.951) and a low positive the first factorial axis is a new variable
coordinate on the second factorial axis defined by the linear combination of the
(0.241). The variable School population has a original variables of the form:
highly positive coordinate on the first F1=0,951Units+0,943 School population
factorial axis (0.943) and a negative +0,997 Number of pupils – 0,941 Number of
coordinate on the second factorial axis (- students +0,556 Teaching staff + 0,666 Birth
0.104). This indicates that the variable will rate.
be graphically represented in the positive In order to identify the variables explaining
values quadrant of the first factorial axis in the second factorial axis, there are chosen the
the negative values quadrant of the second values in the column Component 2.[7]
factorial axis. g. The contribution of variable Xj to the
The high values of the coordinate of the inertia of axis k (Component Score Matrix
variables on the factorial axes show that output).
those variables are strongly correlated with The high values of contributions show the
the respective factorial axis. importance of the respective variable in
For example, the variables School differentiating the statistical units considered.
population, Number of pupils, Number of In our case, all variables contribute to the
students and Number of educational units are formation of the first factorial axis, while for
strongly correlated with the first factorial the second axis the only variables which are
axis, revealing that these variables contributing are Teaching staff and Birth
significantly explain the differences between rate.
the statistical units (i.e., there are significant Table no.6 Component Score Coefficient
differences between the statistical units in Matrix
Component
terms of the values recorded for these 1 2
variables). Units .215 .195
The graphical representation of these two School population .213 -.084
points in the system of the first two factorial No. of pupils .225 -.020
axes is as follows: No. of students -.213 .064
Graph no.2 The first two factorial axes Teaching staff .126 .650
Birth rate .151 -.582
The interpretation of the position of the
statistical units on the factorial axis has two
main study directions: analyzing the
closeness and the remoteness between the
statistical units and explaining the position of
the statistic units by integrating the variables
within the analysis.[7]
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Graph no.3 The position of the statistical situation due to a high birth rate (the birth
units on the factorial axis rate in 1990 was 13,6%; it reached 10,4% in
2,00000
1999). However, in the 90's, the number of
students was very low (192,110 students).
REGR factor score 2 for analysis 3
1996/1997
2001/2002 1998/1999
1,00000 1997/1998
1995/1996 The second period is characterized by an
2002/2003
2004/2005 2000/2001
1999/2000 important decrease in the number of
0,00000 2003/2004 1994/1995 educational units, the number of pupils and
2008/2009
2009/2010 2006/2007
1993/1994 1992/1993 of the teaching staff and by an increase in the
-1,00000 number of students. At the level of the school
2010/2011 1991/1992
year 2007-2008, there have been recorded
-2,00000 907,353 students.
The drastic reduction in the birth rate after
-3,00000 1990/1991 the 90’s has led to a significant decrease in
-2,00000 -1,00000 0,00000 1,00000 2,00000 the school population and in the number of
REGR factor score 1 for analysis 3 pupils. The economic crisis that broke out in
2008 and the reforms initiated in the
4. Conclusions educational system have significantly left
their mark on all the analyzed indicators,
The educational system is the main which recorded significant decreases.
subsystem of education, which refers to the
institutional organization of education. 5. References
The European integration does not imply
[1]Baltagi,B.H.,Econometrics,Springer,2008.
only the Romanian partners’ access to
[2]Benzecri, J.P., Correspondence Analysis
databases and education policy documents of Handbook, New-York, 1992.
the European Union member states, but also [3]Everitt,B., Dunn, G., Applied Multivariate
the access of relevant European authorities Data Analysis, Arnold, London, 2001.
(central institutions or specialized bodies, [4]Greene,W.H., Econometric Analysis, Prentice
experts and decision makers etc.) to data Hall, 2003.
banks and to any source of information on [5]Kachigan,S., Multivariate statistical analysis,
the education in Romania. Radius Press, New Zork, 1982.
Unfortunately, Romania is labelled by [6]Maddala,G.S., Introduction to Econometrics,
many states as a weakly economically and Wiley, 2001.
[7]Pintilescu,C., Analiză statistică multivariată,
socially developed country. The value of
Editura Universităţii Alexandru Ioan Cuza
demographic indicators (population growth, Iaşi, 2007.
total population) is decreasing, while the [8]Verbeek,M., A Guide to Modern
economic indicators (unemployment, Econometrics, Wiley, 2005.
inflation) reach one of the highest thresholds [9]Spircu,L., Analiza datelor- Aplicaţii
among the EU countries. economice, Editura Economică, Bucureşti,
The first factorial axis, which explains the 2005.
key differences, records a value of 73,77% of [10]Anuarul Statistic al României 2005, 2011
the total variance and shows two periods in Institutul Naţional de Statistică.
the evolution of the main indicators of
education: the first period consists of the Acknowledgment
90’s, respectively from 1990 to 1999, and the This work was supported by the project co-
second period consists of the years 2006- funded from the European Social Fund
2011. through the Development of Human
The first period is a time when the Resources Operational Programme 2007-
number of educational units, teaching staff, 2013, contract no. POSDRU/90/2.1/S/63784.
number of pupils and of students were high,
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still present in some older textbooks, the universe was created by God out of raw
according to which „the matter is eternal; it materials (therefore it does have a
cannot be created, nor destroyed”. [3] 1,9% beginning);
of the students (9 individuals) answered with the universe did not appear, in the sense
„I do not know”, which shows that the that it does not have a beginning in time.
students are either unaware of the above Apparently, the contradiction can be
mentioned options, or that they did not avoided if the creation of the universe out of
adhere to any of them. time is accepted, but, in this situation, its
The answer to the first question must be entrance in time can be considered as a
correlated with the answer to the second one, beginning. As a result, this interpretation
which refers itself to the manner in which the leads to the fact that the universe does have a
universe emerged. [8] beginning in time.
Table no. 3 How did the universe appear? Another interesting aspect is the fact that
How did the universe Frequency % 65 students answered at the first question that
appear?
the universe does not have a beginning,
Through the Big Bang 133 28.1
It was created by God out of whereas at the second question, 32 students
246 51.9 stated that the universe did not appear, in the
nothing
It was created by God out of
56 11.8
sense that it does not have a beginning in
raw materials time. Consequently, there are at least 33
It did not appear because it students that consider that the universe does
32 6.8
does not have a beginning
I do not know 7 1.5 not have a beginning, but they adhere to one
Total 474 100.0 of the following possibilities: Big Bang,
After processing the answers, we drew the creation of out nothing, creation out of raw
following conclusions: materials, or „I do not know”. This
51,9% of the students consider that the inconsistency shows that the notions are not
universe was created by God out of nothing. clear for those individuals.
This conception is according to the orthodox In this sample there are 302 students
dogmatic. (63,71%) that accept the fact that the
28,1% of the students consider that the universe was created by God and 133
universe appeared through the Big Bang, students (28,05%) that consider that the
according to the modern scientific theories. universe appeared through the Big Bang.
11,8% of the students consider that the Both variants imply the fact that the universe
universe was created by God out of raw has a beginning in time.
materials. This conception is not accepted by As a result, there must be 302+133=435
the orthodox Dogmatic. students that clearly affirmed that the
6,8% of the students consider that the universe has a beginning. However, only 400
universe did not appear, in the sense that it students clearly stated that the universe has a
beginning. The discrepancy can be explained
does not have a beginning in time.
in the same manner as in the previous case.
1,5% of the students (7 individuals)
Out of 474 students, 397 students study
answered „I do not know”. It is interesting
Economic Sciences, and 77 study Orthodox
to note the fact that 7 students said that they
Theology.
do not know the manner in which the
Table no. 4 Crosstabulation: The material
universe emerged, considering the fact that 9
Universe/ Faculty
students stated that they do not know if the The material Faculty Total
universe has or does not have a beginning. universe Economic Theology
Therefore, the 2 students that affirm that Sciences
they do not know if the universe has or does It has a beginning 337 63 400
not have a beginning adhere to one of the It does not have a
54 11 65
beginning
following possibilities:
I do not know 6 3 9
the universe was created by God out of Total 397 77 474
nothing (therefore it does have a beginning);
the universe appeared through the Big Out of the students that study Economic
Bang (therefore it does have a beginning); Sciences, 337 (84,88%) consider that the
universe has a beginning, and 54 (13,60%)
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consider that the universe does not have a universe that was created by God (out of
beginning. nothing or out of a pre-existent material).
As a result, as a percentage, there are Table no.6 Symmetric Measures
more students that study Theology that Value Approx. Exact
accept the version of the universe without a Sig. Sig.
beginning, version which is rejected by the Phi -.005 .918 1.000
orthodox Dogmatic. However, the difference Cramer's V .005 .918 1.000
Contingency
is quite small (0,68%). Coefficient
.005 .918 1.000
Based on the 14,28% percentage, it can be N of Valid Cases 429
affirmed that there is an influence of the The association coefficient is ϕ=-0,005,
conception according to which the matter is which shows the lack of association.
eternal, it cannot be created, nor destroyed, It can be observed that 13 students
conception that is used in Chemistry, Physics consider that the universe does not have a
and Astronomy. beginning, affirming that it appeared through
This principle dominates the scientific the Big Bang, and 28 students state that the
Romanian world before 1989, as it can be universe does not have a beginning, but it
seen in the following paragraph: „The matter was created by God.
is eternal. Taken as a whole, the matter is The third question from the questionnaire
eternal and infinite through time and space; it refers itself to the age of the universe.
does not have a beginning or an end”. [9] After the centralization of the recorded
At the second question form the answers, the following results were obtained:
questionnaire, the Big Bang Theory is
67,1% students consider that the age of the
accepted by 132 (33,24%) students from
universe is higher than 16 billion years;
Economic Sciences and by a single (1,29%)
15,2% students consider that the age of the
student from Theology, which can be
universe is lower than 16 billion years;
explained by the fact that the students from
Theology accept the creation of the world by 12,2% students consider that the age of the
God. Furthermore, we are going to study universe is 16 billion years;
through comparisons the answers to the first 5,5% students answered with „I do not
two questions. know”.
For the manner in which the universe Table no. 7 Correlation between How did the
appeared, we are going to consider 2 universe appear and the age of the Universe
The age of the universe
variants: the universe appeared through the How did the
< 16
universe 16 billion >16 billion I do not
Big Bang and the universe created by God appear years years
billion
know
years
(out of nothing or out of pre-existent matter).
Through the
Table no. 5 How did the Universe appear? 27 90 14 2
Big Bang
The Faculty It was created
How did the Universe by God out of 23 163 43 17
Economic Theology
appear? nothing
Sciences
Through the Big Bang 132 1 It was created
by God out of 6 37 10 3
It was created by God out of raw materials
180 66
nothing It did not
It was created by God out of appear
49 7
raw materials because it 2 25 5 0
It did not appear because it does not have
30 2 a beginning
does not have a beginning
I do not know 0 3 0 4
I do not know 6 1 Total 58 318 72 26
Total Total 77 It can be observed that 79,3% students
Furthermore, we are going to study consider that the age of the universe is higher
through comparison the answers to the first or lower than 16 billion years, according to
two questions of the questionnaire. some textbooks.
For the manner in which the universe In order to study through comparisons the
appeared, we are going to take into answers to the second and third questions, we
consideration two alternatives: the universe are going to consider the following variants:
that appeared through the Big Bang and the
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for the manner in which the universe consider that the earth is older than the sun
appeared: either through the Big Bang, or by (according to the Biblical model).
God out of nothing; In order to study though comparisons the
for the age of the universe: <16 billion conceptions regarding to the manner in which
years and >16 billion years. the universe appeared and the conception
Table no. 8 Symmetric Measures regarding the chronological formation order
Value Approx. Exact of the Sun and of the Earth, the following
Sig. Sig. data must be considered:
Phi .107 .043 .051
28,1% of the students consider that the
Cramer's V .107 .043 .051
Contingency universe appeared through the Big Bang,
.106 .043 .051 according to the current scientific theories.
Coefficient
N of Valid Cases 360 However, regarding the chronological
The association coefficient is ϕ = - 0,107 formation order of the Sun and of the Earth,
and the Yule coefficient is Q = - 0,106. Even 75,3% of the students answer according to
though the value of the association this theory.
coefficients is quite small, we observe the 63,7% of the students consider that the
fact that out of 57 students that consider that universe was created by God, but only 22,2%
the age of the universe is lower than 16 consider that the Earth is older than the Sun,
billion years, 43 consider that the universe according to the Biblical model.
was created by God out of nothing and only The faith in God can be considered as
14 consider that the universe appeared being most influential in accepting the fact
through the Big Bang. that the universe was created by God. In the
As a result, 75,43% out of the students same time, we can observe that many people
that said that the age of the universe is lower that have this conception are diverging from
than 16 billion years consider that the the Biblical model, considering that the Sun
universe was created by God out of nothing, is older than the Earth. The cause of this
which is according to the orthodox teaching, divergence must be looked for in the
not only in regards to the age of the universe, textbooks and in the science shows that
but also in regards to the manner in which the present the accepted model in most of the
universe appeared. current scientific community.
Out of the Theology students, 64,93% Out of 397 students from Economic
consider that the age of the universe is higher Sciences, 318 (80,10%) consider that the Sun
or equal to 16 billion years. Out of the is older than the Earth; out of the 77 students
students from Economic Sciences, 82,11% from Theology, 39 (50,64%) consider that
consider that the age of the universe is higher the Sun is older than the Earth.
or equal to 16 billion years. It can be The fifth question from the questionnaire
considered that this difference comes from refers itself to the chronologic order of two
the knowledge of the orthodox teaching, important moments: the formation of the sun
conclusion that is strengthening by the and the apparition of the vegetation. The two
previous observation as well. models are conflicting again.
The fourth question from the The first model is the Biblical and
questionnaire refers itself to the chronologic Patristic one according to which the
order of the formation of the Sun and of the vegetation was created in the third day, and
Earth. the Sun in the fourth day. Saint Ioan
Table no. 9 The order of the formation Hrisostom comments as follows: „This is
The order of the formation Frequency % why it shows you, before the creation of the
The sun is older than the sun, the earth covered with everything, so as
357 75.3
earth
The earth is older than the
not to assign the sun the perfection of the
sun
105 22.2 fruit, but to the Creator of the universe” [10]
I do not know 12 2.5 The second model is the one accepted by
Total 474 100.0 the current scientific community; according
The systematization of the data shows that to this model, the sun is older than the earth,
75,3% of the students consider that the sun is so the vegetation appeared after the
older than the earth (according to the current formation of the sun.
cosmologic model) and 22,2% of the students
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4. Conclusions
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technology can improve the operation of the economic actors (stakeholders) developed
business [9]. To ensure efficiency and within firms. In good corporate governance is
effectiveness of corporate governance, in expected to pay attention to all stakeholders
order to increase company performance and ‘interests including those of employees,
strengthen its position in the capital market, it creditors, customers, suppliers and local
is necessary to analyse the contribution of communities [28]. The World Bank defines
information technology in this field. corporate governance as a combination of
There are three key research questions that laws, regulations and codes of conduct
can be asked in relation to of IT: adopted voluntarily and providing companies
Are information systems able to solve the greater access to financing, lower cost of
problems of corporate governance and capital, better firm performance, and more
how is this done? favourable treatment of all stakeholders.
To what extent managers and board Thus, World Bank client countries have
members are aware of the potential initiated legal, regulatory and institutional
benefits of applying information corporate governance reform projects [36].
technologies, such as creating value for Information System can be defined as a
the company? collection of components that work together
Are they well informed for good IT to provide information to management. It
equipment in line with the company enables them to make decision which ensures
strategy? the control of the organization [3].
Business Information System is a group of
4. General theory framework interrelated components that work
collectively to carry out input, processing,
Discussions on corporate governance storage and control actions in order to
(CG) and its importance began in the 1930s convert data into information products. This
in the American academic world, while in information is used to support the activities
Europe it began at least 10 years later [7]. in an organization [27].
The term corporate governance, or as
defined in ISO FDIS 26000, organizational 5. Research approach
governance (OG) is the system by which an
organization adopts and implements the A recent study on Corporate Governance
decisions necessary to achieve goals. In other in 14 emerging markets, found wide
words, the term "governance" means the variations in performance among companies
process of decision-making and the that apply different levels of governance.
procedures by which they are implemented Generally, organizations' corporate
[8]. So the concept of governance includes governance was proportionally as strong or
how an organization is run. In accordance weak as their country's legal system [14].
with corporate governance principles of the Corporate governance refers to promoting
Organization for Economic Cooperation and fairness, transparency and accountability at
Development (OECD), corporate governance the company level [5]. A greater focus on
involves a set of “relationship between the corporate governance is largely to answer the
managers and shareholders of corporations, collapse of Enron [15], WorldCom,
as well as stakeholders like employees and Anderson, Xerox, Merrill Lynch, Allied Irish
creditors” and can be defined as a system that Bank, Alder Hey, Sellafield, Maxwell, BCCI
provides a fair and reasonable treatment for (Bank of Credit and Commerce
investors or more broadly, for the whole International) which led to the subsequent
society [30]. Also, corporate governance can adoption of legislation governing the form of
be defined as a structure used to determine the U.S. Sarbanes-Oxley Act in 2002.
the responsibility and authority of the various Competitive success of an organization is
groups involved in the functioning of the determined to a large extent on the quality of
organization [7]. management and in particular, the
Broad corporate governance is the set of organizational, decisive, informational and
rules and control mechanisms applied in last but not least by the methodical-
order to protect and harmonize interests in methodological subsystems [13]. These
many cases contradictory of all categories of subsystems involves the implementation of
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appropriate tools and techniques to help 240,000 employees and offices in 100
diagnose problems with organization and to countries. Inadequate information and the
develop an appropriate strategy [24]. inability of understanding foreign cultures
Literature associates theory agent with the may cause the failure of a business. Thus, it
notion of corporate governance (Agent is important a comprehensive information of
theory) [12], first developed by Jensen and value systems, norms of behaviour and to
Mecking (1976), and the Fama and Miller accept the existence of cultural diversity. The
(1972), which integrates modes of organizing current economy has two main
complex decision-making process within the characteristics: abundance and complexity of
company and with signal theory (Signalling data and speed of change, and thus of
theory) [2], which analyses the impact of decision-making [23]. Information is
economic and financial information regarded as one of the most valuable assets
asymmetry on entity [7]. The Administrator of a corporation [34]. Today, instant
theory describes management leadership role messaging, email, electronic documents have
in maintaining and developing the increased the flow of business [29]. In this
organization's value [19]. Other theories context, the question is not whether the
underpinning corporate governance: Board should take decisions on IT
stakeholder theory and business policy. In governance, but rather on how they should
the interests of good governance, a company do so [28].
has to draw his own way, taking into account For years, great amount of data coupled
the purpose and objectives [21]. Other with much insignificant and poor
theories associated with the notion of information have been known issues by the
corporate governance range from the agency leaders of large corporations. The expression
theory and expanded into stewardship theory, "elephant in the room" is relevant. But now,
stakeholder theory, resource dependency corporate governance and regulatory
theory, transaction cost theory, political compliance have made the room smaller and
theory and ethics related theories [1]. more exposed the elephant bigger and much
Continuous development of new IT more noisy [11]. Whether working on a
technologies was followed by a rapid simpler architecture or other more
integration of their organizational level. IT complicated (matrix, conglomerates,
has become an essential element in the strategic alliances), global corporations raises
strategic development and growth complex management problem - of their
performance of any organization. Corporate activities and the external environment, and
governance extends in IT area. Therefore we this cannot be solved only through effective
can speak of IT governance as prerequisite exploitation of interconnections . In this
for good corporate governance [18]. In this sense, information system is regarded as the
way, IT governance has become an important backbone of modern business, playing an
part of corporate governance [26]. important role for a well governed company
Information Technology (IT) is an integral [20]. Such systems characterized by
part of the business. Also, IT Governance flexibility and adaptability to changes
(ITG) is an integral component of corporate environmental, concern the poorly structured
governance. Especially after Sarbanes-Oxley or unstructured problems that managers must
(SOX) was passed in the U.S. in 2002, deal [5].
followed by similar regulations in many According to recent studies, the
countries, corporate governance and ITG implementation of IT governance / CG in
have become more and more connected as corporate structures and corporate
the IT control plan is integrated into the governance practices supported adoption of
overall enterprise plan [28]. IT in governance leads to creating value for
One of the problems facing corporations is the organization [14]. As a result, many top
the complexity of the information system. executives of companies consider their
We live in the age of giant corporations. business information technology priorities
According to the classification [10], the [20]. IT management has evolved now to
largest is JP Morgan Chase, which has assets include IT Governance (ITG). Thus, IT
of $ 2,300 billion, i.e. triple gold and foreign Governance (ITG) has now become a part of
reserves held by the European Union, corporate governance [17]. An appropriate
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information system must be able to establish claims, and they can be classified as potential
a balance between the interests of all parties stakeholders, permanent, active and
involved in the firm [28]. It involves a uninterested [16]. Information system can
management system appropriate to company effectively achieve these stakeholders to
requirements [33]. prioritize and classify them according to
In the interests of good corporate importance and role is the objectives of the
governance (CG), corporate information entity [32].
technology (IT corporate) are aligned with In addition to the large amount of time
the information needs of members of the spent collecting and analysing data gathered
Board, in order to provide relevant and from different departments, business units
timely [31]. For good corporate governance within large companies are forced to
(CG), corporate information technology (IT communicate to higher hierarchical levels, an
corporate) is aligned with the needs of the activity which is time consuming, inefficient
Board members, in order to provide relevant and bears significant costs. It is also affected
and timely information. accuracy [25]. According to The Banker
The recent economic turmoil forced firms [35] there are many problems associated with
to recognize that, even in good economic reference data: poor data quality, missing
conditions, growth does not preclude the standards, delays in data delivery, bad data
need for tangible, accurate data and reliable, coverage and high costs. Many of the
transparent analytic processes. Data has the challenges technology improve governance
potential of enhancing the IQ of an requirements imposed on companies and
organization, enabling greater agility and facilitate their application by the company
enhanced performance [31]. [5]. Automated information flow helps
Thus, IT governance can be seen as an business performance through
integral part of corporate governance and standardization, automation, simplification
therefore requires special attention from the and management processes across the
top management of the company. Integration enterprise and by providing better internal
of the two forms of government is desirable controls [9]. It would lead to a decrease of
because it has been shown that both factors information asymmetry and would increase
have a significant impact on good the transparency of all decision-making
management [26]. According to a survey processes [4].
[22], 188 corporate executives in Canada Information systems contribute to the
indicates that IT plays an important role in ability of a corporation to successfully
ensuring good governance. Firms with manage many governance requirements.
integrated IT structure seem to obtain Without the facilities offered by the new
significantly greater profits, up to 20%, than technologies available today, more staff and
those companies with similar business longer time would be required for database
strategies, but without an integrated IT management. In addition to the time spent,
structure [14]. the accuracy of the data would likely be
IT governance implementation may questionable [25].
require organizations to rethink the IT system is able to understand, in a
governance structure and the people involved complete and complex manner, information
to revive the roles and relationships within from production, accounting department,
the company [26]. IT solutions become more purchasing and sales, inventories, fixed
complex and powerful (outsourcing, third assets. It can also to put together all these
party contracts, networking, etc.), among parts of the business and make them work
others, due to the inclusion of a broader together, eliminating incomplete or irrelevant
range of stakeholders [25]. IT solutions in information for the business. Business
accordance to its strategic objectives, Intelligence is the key differentiation for
provides flexibility in two ways: adaptation business today. Business intelligence,
to each specific business environment and analytics and performance management are
openness to change permanent, resulting in top areas for a good management [38].
value creation for the company [28]. Database mismanagement may lead to
Government decisions usually involve contradictory results, distorting the truth, or a
several stakeholders who have conflicting complete lack of information on important
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Globalization
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independent locations in regions or networks from a country in which the productivity and
economically – socially interconnected, and the wages are low to a country where they
the strategies of complex integration of the are high, the production shall be huge, and
transnational organisations have materialized the global economy shall develop. The free
in the development of certain international trade removes the necessity to shift. The
integrated production systems. inhabitants of the developed countries can
The power centre of these systems has stay at home and they can buy cheap
partially moved from the field of material products from the Asian countries, where the
and natural resources to that of intensive workforce is cheap. In their turn, the Asian
technologies based on knowledge, workers can stay within their countries and
professional competences, flexibility and can have access to United States high-tech
organisational suitability [1]. products, a country with a much more
advanced technology, with a very specialized
2. The mechanisms of globalization workforce and with high capital investments.
Theoretically, this means that the demand for
It is easy to understand why the the Asian products increases with the demand
multinational corporations play such an for their unqualified workforce, and, finally,
important role in globalization: the coverage the wages of the unqualified workers within
of the entire planet, bringing the markets, the these countries shall increase. [2].
technology and the capital of the developed
countries to the same level with the 3. The improvement of globalization and
production capacities of the developing democratization
countries require the existence of certain very
large organisations [2]. The globalization itself is neither “bad”
The British economist Adam Smith, the nor “good”; it simply exists. But,
founder of the modern economy, was a undoubtedly, the globalization must be
powerful advocate of both free markets and governed.
the free trade, and his arguments are very Globalization is a phenomenon which
convincing: the free trade allows the implies risks and, as it is well known, the
countries to take advantage of it, because risks imply both opportunities and hazards.
each of them specializes in the field it excels. The good governance maximizes the
The great commercial areas allow the exploitation of opportunity windows opened
companies and individuals to specialize by globalization and abates the hazards
themselves further and to become more which might have impact on certain
competent in what they do. Imagine yourself categories of people from certain world
a small village where there is only one baker, areas.
and then imagine a big village which might The role of catalyser of the globally really
have two or three bakers. In a bigger town free competition is, according to Antonio di
there could exist more bakers of which some Pietro, the key element for the understanding
of them would make only bread and others of which concrete policies must we put into
only cakes. In a bigger town there could be practice and which action lines must we
only bakers which make bread or cakes – its promote, in our quality of “global political
bakers would have so many clients so as he class”, in order to get a net benefit, at a
would specialize more and more, producing a global level, from this extraordinary process.
large variety of very good cakes and bread More shortly, Antonio di Pietro
specialties. Greater markets increase the centralizes his analysis on the following
effectiveness of each producer and amplify preliminaries:
the possibilities of choices available for the - The globalization must go hand in
consumers. hand with democracy; otherwise, we
In the lack of a free trade, the capital and cannot reach the free economical
the workforce shall record different profits in competition;
different countries. In a country which has no - This competition cannot be achieved
capital, such as equipments and technology, if the fiscal paradises and the enclaves of
the workforce shall be less productive and money laundering are tolerated.
the wages lower. If the workforce migrates
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Even if the term “democracy” can be The establishment of the global political
defined in many ways, we can assume that economy is related to the democratization in
the level of democracy is given by the various ways. First, it strengthens the
“amalgam” of moral imperatives spread authority of occidental capitalist centres over
within the society and by the way the social the developing world, reducing the political
and political processes are organized [3]. and economical options made available for
The democratization is part of a distinct the developing countries. The developing
set of changes within the global order. It is countries and the post communist ones have
particularly related to the establishment of a repeated and regular contacts with the agents
really global politic economy, to the or governments of the capitalist nucleus.
occurrence of the institutions of global This is a result of the support governments
governance and to the establishment of a which are based on political conditioning, of
global communication network. the development of some humanitarian
Strang considers the democratization a intervention programs in the former
consequence of the establishment of the Yugoslavia or in Somalia, for example, as
global political economy: well as of the apparition of regionalized
“Most of the recent changes of the global commercial blocks which started to dissolve
policy, regardless the level of their apparent the previously well-established boundaries
despair, have mostly common roots in the which distinguished the North from the South
global politic economy. We can see the same and the West from the East. At present, the
forces of the structural change responsible for south countries or the post communist ones
the release of the Central Europe, the discover that they are “fixed” in a certain
disintegration of the Soviet Union [...] and development model which depends of the
the radical changes of many governments of formal democracy and of an open economy.
the developing countries, from the military or They are caught in a series of political
authoritarian governments towards relations with the developed countries which
democracy, and from protectionism and includes a bond to the liberal democratic
industrialization based on substitution of model of development [4].
imports, towards the opening of boundaries The general meetings of the Club of
and the promotion of export.” Rome which took place in the last years
The establishment of the global political continued to centralize on the problematics,
economy has its roots mainly in the globally considered, of learning, as one of the
globalization of production, trade and essential issues in the process of social
finances. The specialists agree that the development. The ignorance – synonymous
current extension of the trade is higher than to the absence of permanent learning in the
in any other point in human history and that contemporary period – was invariably
we assist to the apparition of some finance identified as a serious major impediment both
and production markets that are really global. for the extension of the knowledge era, for
The globalization process is both the cause the social development, as well as for the
and the consequence of a seismic global abatement of poverty.
transformation at the level of the national But the knowledge and globalization era
economic policies and of the global continue to be current premises for the theses
movements towards economic deregulation of the Club of Rome; as a matter of fact,
and global integration. The development knowledge has an undisputed role in all
cannot take place anymore between contemporary theories on globalization.
pressurized or insulated national boundaries. Within the meeting from October 2005,
This is the case of developed societies, but it the Club of Rome brought into attention the
can be even truer in the case of developing central idea – the long term global thinking
societies which do not benefit of enough which must centre on the preoccupation for
capital, know-how technology and trust. the future generations – in other words, the
Thus, globalization is an irregular process Club suggested that a new type of thinking is
which affects the countries differentially. It necessary (essentially global, long term,
has the greatest impact on vulnerable and interdisciplinary), otherwise the social
weak countries, where the countries are less development and the eradication of major
capable to moderate its effects. global problems (among which the poverty
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Asalos Nicoleta
„Ovidius” University of Constantza
nasalos20@gmail.com
Trandafir Raluca Andreea
„Ovidius” University of Constantza
trandafirraluca@hotmail.com
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relations of cooperation and a competitive management, etc.. This new model is applied
pole is a regional innovative cluster with to the emerging innovative cluster in the
national (an elite cluster) and international woodworking and furniture industry created
vocation or a cluster network (6). The in the region Brasov - Covasna by FP7
economic reality in Romania required the project "Pro Wood".
presence of catalytic institutions (entities In the policy of clusters, poles of
specialized in the innovation and competitiveness, Romania is interested in the
technological transfer, consulting firms, following:
chambers of commerce etc.) within the - Attracting foreign investment and
pattern called “the Four Clover” [7]. investment funds in clusters / poles of
At the end of this studies survey, competitiveness in Romania;
regarding the economic competitive - Exchange experience with entities which
agglomerations cluster type developed in develop cluster policies and strategies;
Romania, we should also mention the most - The development in partnership of
recent initiative in this field which consists in Benchmarking;
the process of ‘’cluster mapping’’ (fig. 1) - Exchange of experience and best practices
launched by the Ministry of Economy, Trade with other clusters both in business and
and Business Environment (MECMA) with economic cooperation;
the declared purpose of identifying the - Romanian clusters include transnational
existing and the potential clusters in and cross-border networks;
Romania. The project, launched in 2009, in - Preparation of cluster managers and
the framework of the mutual agreement study visits, trade missions, etc..;
between the German (represented by GTZ) - Supporting the participation of
and the Romanian government (represented Romanian clusters in Innovation Tours,
by the Ministry of Economy) was held during international fairs and exhibitions to promote
8 months (June 2009-January 2010) regional brands;
[8].There were identified, based on the - International cooperation (public-
course of 8 regional workshops (held in private) in creating theme parks like
Bucureşti, Iaşi, Timişoara, Râmnicu Vâlcea, Technopolis, Copernicus and so on;
Mioveni, Bistriţa, Sfântu Gheorghe and - The Participation of Romanian
Constanţa), whose results were validated by innovative clusters in projects of the Danube
analyzing the questionnaires completed by Strategy, of the South East Europe
the most important regional actors and in Transnational Programme, INTERREG IV C
conjunction with regional development plans etc..
and regional development strategies The clusters that form will represent the
developed by RDAs. nuclei of competence which will contribute
in future to increase the competitiveness of
3. The Current Analyze of the Romanian regional business environment and further
Cluster Process. A Real Success? development of some initiatives, benefiting
from the support of local public authorities,
The "Triple Helix" - a model that fits well universities and other business support
cluster structures in many other European structures and research as well.
countries and in which the three actors In the year 2012 in Romania were
(universities and research institutes, identified 33 clusters / poles of
industries and public authorities) cooperate competitiveness which are largely functional
voluntarily very well, must be adapted to since 2011, so we can say that this
work in the Romanian realities. This way phenomenon is at the beginning, we take the
emerged The "Four Clover" model where, in previous experiences of countries with a
addition to the three actors listed above has tradition already in this phenomenon of
occurred a fourth actor whose role is to creating clusters / poles of competitiveness.
facilitate the cooperation of the other three, Doing an analysis of clusters / poles of
the fourth actor is the institution catalysts: competitiveness on domains it is noted a
specialized service providers, technology concentration of 50% of these clusters in
transfer centers, chambers of commerce, automotive, green energy, textiles and
consulting services in the field of cluster tourism. It is also argued that the
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1920
[2] CISA, Avantajul Competitiv al Regiunilor:
Evaluare a Competitivităţii de Ţară, 1998
[3] Ferrari, M.R., Small Enterprise Clusters for
Local Development in Transition Context:
the Case of Romania, Milan, 1999
[4] Ionescu, V.Supply-Side Strategy for
Productivity, Competitiveness and
Convergence between the CEECs and (în) the
EU - Romania Case Study, București, 1999
[5] Guth, M., Cosnita, D. Clusters and Potential
Clusters în Romania- A Mapping Exercise-,
Inno Consult, Bucureşti, 2010
[6] Porter, M.E., 2000. Location, Competition and
Economic Development: Local Clusters in a
Global Economy, Sage Publications:
Economic Development Quarterly 14, no.1
[7] MECMA (Ministerul Economiei, Comerţului
şi Mediului de Afaceri), 2009. Ghid pentru
implementarea în România a conceptului de
cluster inovativ, Proiect solicitat şi finanțat de
M.E., Direcția Generala Politici Industriale şi
Competitivitate,
www.minid.ro/presa_2010/iulie/ghid230720.
pdf
[8] AMPOSCCE, 2011. Analiza situaţiei existente
privind polii de competitivitate existenţi şi
potenţiali din România,
http://amposcces.minid.ro/
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Asăvoaei Alexandru
Alexandru Ioan Cuza University of Iaşi
Doctoral School of Economics
alexasavoaei@yahoo.com
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theories argue that the markets will always do not act fully rational. Because the
have the tendency to self-correct almost information is “asymmetrical”, most of the
instantly, every time minor and conjectural times, the economic agents are compelled to
imbalances will occur. Therefore there would rely rather on instinct or intuition, in order to
be impossible for an economic crisis, adopt economic decisions, than on
especially one of this magnitude, to take probabilistic calculations.
place. The historian Robert Skidelsky, One could ask what is the connection
accurately and appropriately summarize the between these new concepts and the deep
substance of these theories, as follows:”by economic crisis that started in 2007 and that
means of rational expectation and real still appears to be far from over. The answer
business cycle theory economists came to to that question is that, this economic crisis,
believe that the future was certain, the like many other crises from the past, occurred
unemployment was voluntary and the precisely because of the instinctive
numbers could substitute common sense.”[8] behaviorsthatare adopted, especially by the
Just by reading the point of view participants on those markets characterized
presented above, everyone should realize that by very high volatility, like the financial
the neoclassical assumptions are unrealistic, markets. And we know that these markets
and that is the main reason which has have played a big part on the development of
determined, in our opinion, a crisis of the this crisis. The best example is that of the
economic science itself. In the real world speculative transactions made with those
things happen in a different way and the “toxic” financial derivatives, issued by the
economic science cannot afford to farther many powerful financial institutions, like the
ignore the reality. American investment banks.
The prices of certain asset categories, like
3. A Keynesian perspective on the causes the well-known CDOs, seemed, for a while,
of the current economic crises to increase constantly and rapidly. As a
result, many people perceived these price
The Keynesian school of thought offer, on increases as a golden chance to become rich,
the other hand, an entirely different in a very short period of time. Everyone
perspective on the causes of major wanted to buy this kind of assets and nobody
macroeconomic fluctuations like the one we seemed to realize that the price increases
are experiencing nowadays. In his works, were not going to last indefinitely. This kind
John Maynard Keynes explicitly contradicted of behavior reveals at least two aspects,
the assumptions of perfect rationality that which are closely related to the Keynesian
were also highly appreciated in the time concepts of “uncertainty” and “animal
period that preceded the Great Depression. spirits”. First of all we can see that nobody
The lack of realism that characterize the really knew about the real value of the assets
neoclassical theories is best emphasized by they were buying and secondly, that nobody
Keynes in the following fragment: “The seem to care about it. We know now that
orthodox theory assumes that we have a these assets were based, in a large proportion
knowledge of the future of a kind quite at least, on potentially non performing
different from that which we actually mortgages, but in those days the buyers were
possess… The hypothesis of a calculable deliberately ignoringthis possibility, in the
future leads to a wrong interpretation of the same manner as “a healthy man puts aside
principles of behavior which the need for the expectation of death.”[4]
action compels us to adopt, and to an The increases in prices of both, the real
underestimation of the concealed factors of estate assets and financial assets were not
utter doubt, precariousness, hope and caused by “pure rational” behaviors, but
fear.”[5] rather by that kind of “naive optimism” that
Thus, Keynes introduced in the economic Keynes had spoken about in his masterpiece
vocabulary and analysis, notions like “animal – “The general theory of employment,
spirits” or “uncertainty”. He argues that interest and money” published in 1936.
people in general, and especially the Another aspect that perfectly illustrates
economic agents, possess different levels of the irrational behavior of the economic
knowledge, and thus, most of the times they agents in the period that preceded the current
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economic crises is represented by the ease one could dream about. Many journal articles
with which the financial institutions granted and even books reinforced this idea, and the
loans even to the very risky customers. But, results were spectacular. Not only the
in spite of the fact that some bank managers experienced investors, but common people
have anticipated the difficulties that might also, rushed to buy real estate properties.
arise when those customers would not be able Moreover, this phenomenon extended on
to repay the loans, they continued to “play other countries as well. All over the world the
this dangerous game” arguing that it was the real estate prices increased substantially, as
only solution to maintain the competitiveness well as the buyers’ confidence.
on the financial markets, of the institutions Money illusion have also played an
they represented. More than that, even if they essential role in the “price explosion” that
wanted to adopt different and more prudent occurred on the real estate markets. That is
strategies, they would not have been able to because, buying or selling a house represent a
control the actions of every broker that transaction that most people only make once
worked there; the asymmetry of information in a lifetime, and people tend to remember
would have prevented that. In conclusion, the nominal acquisition price. Thus, if
they had no choice but to do what everybody someone had bought a house twenty or thirty
else was doing, hoping that the “judgment years ago, the actual market value of that
day”will arrive as late as possible. house would seem much higher. This creates
This type of behavior has also been the impression of an extraordinary
described by Keynes in his works. He named investment. But this appearance is deceiving
it – “herd behavior”, and compared it with because in the given time interval, all the
the game of “musical chairs”, a game where other prices had increased proportionally.
everybodyhas to dance while the music is Even the “fairness” has played an
still playing.In a similar way, both the important role in the development of this
managers and the brokers had to “follow the crisis, at least in the United States. That is
crowd” if they wanted to keep their jobs. because of the political pressures made by the
Otherwise they would have been fired or leaders of the Afro-American community, in
forced to resign. More than that, the situation order to obtain less restrictive conditions
of the financial system wouldn’t have regarding the access at mortgages, for its
improved, because others would have taken members. These advantages were obtained.
their place instantly, and would have The American government allowed certain
continued to lend carelessly. public institutions, like Fannie Mae or Freddy
In the recent years, the Keynesian concept Mac, to reduce the lending standards for the
of “animal spirits”has been developed by members of this community. However, the
other influential economists, like Robert price that the Americans paid for that
Shiller or the Nobel Prize laureate – George decision was rather high. That is because the
Akerlof. They divided this concept, which private financial institutions were encouraged
Keynes has defined as “a spontaneous urge to to adopt less restrictive credit terms for their
action rather than inaction”[4] into five customers, as well. After that we all know
subcomponents, namely: confidence, what followed…
fairness, corruption, money illusion and A special form of corruption could be
stories.[1] They have also emphasized the identified in another crucial moment of the
role which each of these components has crisis. That is the moment when the rating
played during the present economic crises. agencies were given the opportunity to
For instance, a key role in the price increases evaluate the financial derivatives issued by
that facilitated the formation of the real estate the financial institutions. In spite of the fact
speculative bubblefrom the US market was that they were aware of the unorthodox
played by “stories”. More exactly, when the methods used by the financial institutions to
dot-com bubble exploded in March 2000, create these products, they preferred to look
many investors have shifted towards the real the other way and to give favorable ratings to
estate market. This caused an initial price almost everything. Of course they received
increase of this category of assets, which, in consistent fees in exchange of their
time, gave birth to the idea that owning a “generosity”. In these circumstances we
house or a piece of land was the best business believe that it is safe to say that the rating
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agenciesand their corrupt behavior have do they think was doing better in economic
played a crucial role in the outburst of the terms, 71% of 150 respondents “voted” for
current economic crisis. Ann. However the situation changed
dramatically when the same respondents
4. Experimental evidence that confirm the were asked who they think it was happier. To
Keynesian theories that question 64% voted for Barbara. More
than that, to the question of who is more
In the previous sections of this paper we likely to leave her job earlier, 65% of 139
emphasized a few aspects related to the way respondents thought that Ann is more likely
that people act in the real world, and that are to take such a decision first.[6]
not taken into account by the neoclassical The money illusion is also clearly
doctrine. In this section we intend to provide emphasized by Keynes in his “General
additional evidence that those types of Theory”, when he writes about the workers
behavior which we described in the above rigidity to nominal wages cuts.
pages are indeed permanent characteristics of There is also experimental evidence that
the human actions. In order to do so we will people care about fairness, in the same time
present the conclusions of a few experiments they suffer from money illusion. One of these
made by certain researchers in one of the experiments presents the situation of a small
newest fields of economics, namely firm that has few employees and makes little
behavioral economy. profit. To the question about the fairness of
The first example is not exactly an reducing the wages with 7% in the absence of
experiment but an “everyday situation” that inflation, 62% of 125 respondents
Robert Shiller illustrates in one of his books, appreciated thatsuch an action would be
titled “Irrational Exuberance”, in order to profoundly unfair. However 78% of the same
emphasize the Keynesian concept of “herd respondents appreciated that a wage
behavior”. Professor Shiller presents the increment of 5% in the condition of an
image of a person that has to choose between inflation of 12% would be acceptable.[2]
two similar restaurants that are situated close Another example we will present in this
to each other. The only information that our paper that illustrates the fact that people do
hero has got about the two restaurants come not act fully rational is given by Keynes
from other people. He hears only good things himself in his book titled “A treatise on
about the first one, while about the other he probability” and published in 1921. Here
receive mixed evaluations. Thus he decides Keynes presents the following situation: there
to enter the firstone, because it is more are two urns each of them containing white
appreciated by the people. However when he balls and black balls. Certain people that are
approaches them he observes that the one he asked to extract, for example, white balls
was going to enter is almost empty while the from the two urns know that in one of them
other one is crowded with people. Seeing there are white balls and black balls in the
that, he changes his decision and enters the same proportion. About the other urn they
one that he intended to avoid. In other words, know that it also contain white balls and
he ignores the information he posses and black balls, but do not know anything about
decides to “follow the crowd”.[7] the proportion. If they would act in a perfect
A set of experiments illustrating “money rational way, they would not care from which
illusion” are presented by the economists urn they extract. The probability to extract a
Eldar Shafir, Peter Diamond and Amos white ball is exactly the same, namely 50%.
Tversky, in an article published in 1997. One However, in reality, the great majority of
of these experiments considers two people would prefer the urn that contains an
individuals – Ann and Barbara – who have equal number of white balls and black balls.
similar jobs. Both are receiving the same [3] Keynes explains this attitude by the fact
salary of 30.000 dollars, but while Ann that people “suffer” from what modern
receives a raise of 2% in the absence of psychology calls “the ambiguity aversion”.
inflation, Barbara receives a raise of 5% in Another recently established economic
the condition of a 4% inflation. In nominal sector, namely neuroeconomics, provides us
terms Ann gets 600 dollars while Barbara with even more experimental evidence about
receives 1500 dollars. When asked about who the “irrational side” of the real people. Tests
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6. References
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Bozga Liviu
University Politechnica Bucharest
liviu.bozga@gmail.com
Mateescu Mihaela
CEIS, Romanian Academy
mateescuadina@yahoo.com
Gheorghe Marian
University Politechnica Bucharest
marian.gheorghe@upb.ro
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Service Management on the basis of some associated database supports every function
standards. of the Service Support.
The following public frameworks and Also, the Service Delivery contains the
standards [1] are noteworthy regarding the following functions: Service Level
quality of IT Service Management: Management, Financial Management for IT
- ISO/IEC 20000: IT Service Management Services, IT Service Continuity Management,
- ISO/IEC 27001: Information Security Capacity Management, Availability
Management (ISO/IEC 17799 is Management.
corresponding Code of Practice) The Service Level Management assures
- Capability Maturity Model Integration continuous monitoring of the Service Level
(CMMI®) Agreements (SLAs) so as the parts of
- Control Objectives for Information and agreements be satisfied.
related Technology (COBIT®) The role of the Financial Management is
- Projects in Controlled Environments to determine and control the service costs.
(PRINCE2®) Ensuring adequate IT Infrastructure and
- Project Management Body of Knowledge planning the acquisition of software and
(PMBOK®) hardware to provide convenient service
- Management of Risk (M_o_R®) levels is the task of Capacity Management.
- eSourcing Capability Model for Service
Providers (eSCM-SP™) 3. Costs and benefits of ITSM
- Telecom Operations Map (eTOM®)
- Six Sigma™. The main costs related to IT Service
Management are [5]:
2. Main components of ITSM and their a. Staff expenditure: The implementation of
functions ITSM can lead to the creation of new work
places in IT Department to do various tasks.
IT Service Management [4] contains two Usually, in large organizations specialized
main elements: Service Support (day to day personnel is necessary while in small
operation) and Service Delivery (long-term organizations, the existing staff is sufficient.
planning, improvements). Although the staff expenditures are high ,
The functions of the Service Support are however, by increasing the efficiency
the following: Service Desk, Incident generated by the Service Management
Management (provided by Service Desk), functions, in the end, the total costs are
Problem Management, Configuration reduced.
Management, Change Management, Release b. Expenditure on training: The training
Management. costs of the staff involved in the ITSM are
The client requests are taken by the inevitable.
Service Desk which offers first-line support. c. Consultancy costs: Sometimes the
Also, it has end-to- end task for Incident specialist consultancy is needed to implement
Management and provides the informations one or more functions of the ITSM.
to the end–user domain. d. Costs of tools and equipment: Different
The Problem Management takes the equipment and tools are required for the
requests which cannot be solved at the first- Service Management activities.
line, identifies the weaknesses and negative e. Cultural change expenditure: Costs on
trend of the IT infrastructure trying to correct senior managers are required as a result of
them according to the quality management the ITSM implementation.
system for ISO 900 IT services, and Implementation of the IT Service
establishes the areas of interest in service Management leads to the following benefits
support processes. [5]:
The Change Management controls that a. High efficiency: The IT resources must be
changes taking place in IT Infrastructure guided so as to improve the performances of
have no negative impact on services. services which are most beneficial for the
The application of changes is ensured by customers.
the Release Management function. b. Higher quality IT services: Spare
The Configuration Management with its components are included to insure a lower
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risk of failure and a faster restoration to the alternative supply for services and when
normal service levels, in case of failure. there are serious problems at the level of the
c. Services are better matched to customers provision of services related to the added
needs. value.
d. Better management information and The services that an IT organizations
metrics: A key requirement for effective provide, do not have the same degree of
work processes is to continue the collection importance, so it is necessary to establish
of informations regarding the service priorities.
management. Prioritizing services [6] depends on the
e. Cost savings: An appropriate management characteristic of the company and of its
involves final lower costs with an optimal purpose. So, IT organization can focus on its
use of IT resources. strategies in order to meet the expectation of
clients. However, this classification does not
4. Strategies to increase organizational give information about how the services of
performance external providers may be used. In this
situation a service provider – customer
An IT organization must know the matrix, a practical tool to help IT
strengths and weaknesses. Otherwise it will organizations in making decisions, is built.
not be able to establish what services must Due to the present economic crisis, IT
have priority on the market and what have organizations are restricted to accomplish as
to be removed. much as possible with few resources.
Usually, IT respectable organizations call So, IT organizations must focus, as their
the benchmarking [6] for their services in principal objective, on identifying the
order to: services that give the highest value to
- Compare the services of the IT business.
organization with the services of one or
more IT organizations, identified as 5. Role of information professionals in
reference. ITSM
- Establish the prices of services in relation
to those of alternative providers Nowadays the IT systems provide broad
considered leaders in the field. opportunities to develop information services
- Bring in IT organizations the best (IS) in different economic and social
practices that lead to performance using domains. The efficiency of these services,
the successful experiences of the both for provider and user/beneficiary, is
alternative service providers. strongly dependent on the management of all
Service –based benchmarking is different the phases of their construction: IS and its
from traditional benchmarking. infrastructure design, support development,
Traditional benchmarking uses average service implementation to the user and
data and classification of existing firms maintenance [7]. The management of IS
working is the same field, and so realizing a development and maintenance requires
number of comparisons in order to improve qualified peoples and infrastructure. The key
the productivity, efficiency and costs. professionals involved in IS management
Service-based benchmarking performs programs are the information professionals
comparison with the alternative service and the human resource managers. Generally,
providers. It uses the bottom-line costs, the information professionals are traditionally
meaning all contributions that lead to greater recognized as good managers of explicit
productivity and added value. knowledge [8].
Of great value to service-based An information professional is a person
benchmarking is the specification and involved in recording, processing, managing
assessment with accuracy and and distributing information. He/she is
comprehensiveness of the services and skilled in the information storage and
prices of other service providers. retrieval of recorded knowledge.
Service-based benchmarking requires The information professional establish the
significant effort, thus, the IT organizations connections between those who have
need to use it only when there is an information, and those who need it [9].
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He/she must be well prepared in meeting the - to engage in strategies that bring on
challenges of the current and the future market information products and services
information environments. Some necessary to the audience;
abilities for the information professionals are: - to resolve customer complaints and win
- to have knowledge and skills in various their satisfaction and loyalty;
areas of information services like: - to use the complaints to improve their
knowledge management and services and customer relations;
technological systems; - to focus on a core group of products and
- to integrate information services with the services which is essential to the
needs of business; organization;
- to provide a wide range of services in - to become an expert in the tasks that are
different areas; valued and expand those products and
- to provide valuable information to services that are critical by assisting the
customers rather than just data; organization in becoming more
- to participate to a continuous training in competitive [8];
order to improve their professional skills - to direct all their energy to better and
and competencies; focused information services based on
- to have the required knowledge, skills and customer needs and satisfaction and
competencies in order to manage continuous improvement;
information services effectively [8]. - to response as quickly as possible to user
Today the traditional market for needs and demands;
information skills and services is - to improve professional competence;
continuously changing, as new skills and - to bring new products to market, and
services are being developed. Due to this reducing cost of business operations;
market dynamics the information - to meet the information needs and support
environment must be open to new and improvements in information transfer
challenging opportunities. The changing services;
nature of the current information - to understand socio-technical systems,
environment calls for new skills and resolve conflict over and negotiate plans,
competencies on the part of information and to communicate effectively.
professionals [9]. They must be well The crucial role of information
grounded in ICT related competencies such professionals is to ensure proper management
as core hardware and software skills, web of information services, which is the tool
design, internet searching and evaluation of connecting the information systems and the
electronic information. information managers. They must face
Also, the information professionalshave to challenging information environment in
bewell trained in new related fields, as: terms of demand, user expectations and
information society, knowledge management, technological innovations. Also, they need to
internet based technology, digital world, stay competitive in any information-intensive
globalized information access, networked and highly dynamic market. In conclusion
resources, new learning and research systems they must be agents of change and progress
and the high demands of the user in information accumulation, assessment,
communities, knowledge about information assortment and access[8-9].
strategy [7]. Also they must be in the same
time facilitators, advisors and consultants for 6. Conclusions
IS users. They must helping users to find
solutions and answers to their problems and • The recent development of IT
teach them how to use the information infrastructure and IT related services
product [7-9]. resulted in an increased demand to
It is important for these people: effectively manage this sector in order to
- to provide the right information to the provide high performance products.
right user at the right time; • An important guide in the management of
- to develop relationships with users ; IT services is the IT infrastructure library
(ITIL), developed in Great Britain.
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7. References
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Brinza Georgiana
The Bucharest University of Economic Studies
georgiana.brinza@gmail.com
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Acknowledgements
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Carstea Claudia
„George Baritiu” University of Brasov, Romania
15claudiacarstea@gmail.com
1. Introduction
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r.u. aplic. tehn. facilit. date r.u. aplic. tehn. facilit. date r.u. aplic. tehn. facilit. date r.u. aplic. tehn. facilit. date r.u. aplic. tehn. facilit. date r.u. aplic.
TOTAL
tehn. facilit. date
requirement that is at the core of
1 Definirea unui plan IT strategic PO1 0
2 Definirea arhitecturii informatiei
3 Determinrea directiilor tehnologice
4 Definirea organizatiei IT si a relatiilor
5 Managementul investitiei IT
6 Tintele si directiile managementului comunicarii
PO2
PO3
PO4
PO5
PO6
adaptiveness - the continuous analysis of
7 Managementul resurselor umane PO7
8 Consimtamantul cu cerintele externe
9 Evaluarea riscurilor
10 Managementul proiectelor
11 Managementul calitatii
12 Identificarea solutiilor automatizate
PO8
PO9
PO10
PO11
AI1
5 5 5 5 5 5
0
business needs and intelligent delivery of
13 Achizitionarea si mentinerea aplicatiilor soft AI2
14 Achizitionarea si mentinerea infrastructurii tehnologice
15 Dezvoltarea si mentinerea procedurilor
16 Instalarea si acreditarea sistemelor
17 Managementul schimbarilor
18 Definirea si managementul nivelelor de servisare
AI3
AI4
AI5
AI6
FS1 0
managed resources to optimize business
19 Conducerea echipei de service FS2
20 Managementul performantei si capacitatii
21 Asigurarea service-ului continuu
22 Asigurarea securitatii sistemului
23 Identificarea si alocarea costurilor
24 Educarea si antrenarea utilizatorilor
FS3
FS4
FS5
FS6
FS7
5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 capability and flexibility.
25 Asistarea si sfatuirea clientilor FS8
26 Managementul configuratiei FS9
27 Managementul problemelor si incidentelor FS10
28 Managementul datelor FS11 5 5
29 Managementul facilitatilor FS12
30 Managementul operatiilor FS13
31 Monitorizarea proceselor M1 0
32 Evaluarea controlului intern adecvat
33 Obtinerea configuratiei independente
34 Intretinerea auditului independent
M2
M3
M4
0 0 0 0 0 0 0 0 0 0 5 5 5 5 5 5 5 5 5 10 5 5 5 5 5 10 10 5 5 10 15 10 5 5 10
5. The key components of the GES
0 0 25 30 25 40 45
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5
5
5
5
5
5
5
5
5
5
5 5
5
5
5
5
5
5
5
5
5
5
5
5 5 5 5 5
5
5 5 5 5
aplic. tehn. facilit. date
0
0 0 0 0 0
2505
Cobit Standard
Infrastructure services deliver the
secure, continuous computing power and
storage capacity applications require. In
the past, resources were delivered by Cobit Standard
assigning servers directly to applications. Business agility is realized when
But low utilization and high cost from shared resources are dynamically
“one application, one server” policies allocated as needed by business
compel organizations toward shared, procedures [10, 11 and 3]. The creation
virtualized and on-demand solutions that of this dynamic link between business
make better use of processor and storage and IT is aided by a clear assessment and
capacity (Fig.5). The GES adaptive measurement of the agility from the
infrastructure technologies and solutions transformation of the underlying IT
accept requirements from and deliver infrastructure. Management software
infrastructure services to applications analyzes demand signals from every part
through open industry interfaces and web of the organization—from the
services. infrastructure through the extended
Fig.5 Evaluation report enterprise— delivering business insight
while managing and optimizing the user
experience in a secure, continuous
infrastructure (Fig.7). [8]
Fig.7 Business environment
CHANGE
COMPETITION COST
Cobit Standard
Virtualized resources provide the
foundation for the adaptive GES, with
computing power, information and
communications delivered as services Cobit Standard
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6. Conclusions
Cobit Standard
The time needed to implement or react
Fig.9 Form report to a business environment change
Range—the range of implementation
across geographies, business processes or
operating units Ease—the breadth and
scope of change that the infrastructure
can support
These three measures are used to
identify technology barriers within an
enterprise that are limiting the ability of
the business to respond to change. In
Cobit Standard particular, they must determine whether
The key to successfully building an IT is supporting agility in their business,
adaptive GES is the ability to specifically or holding it back.
measure how well the current Complexity—multiple, independent
infrastructure is able to respond to architectures each with its own
business change—and then diagnose the requirements—is a barrier to
real barriers to agility. While every adaptiveness. A complete replacement of
enterprise wants to achieve the ultimate existing assets is not usually appropriate
state of business fitness, each is unique— or sensible. Simplifying existing
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Cherbeleață Iuliana
Academy of Economic Studies Bucharest
Iulia.cherbeleata@yahoo.com
Gogoncea Ramona
Academy of Economic Studies Bucharest
Ramona.gogoncea@gmail.com
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that can cause market exit of some traditional Furthermore, those issues are conducted
companies with problems due to crisis. The also by the fear of failure of the transactions.
historically cash-rich companies from This means that unsuccessful mergers and
developed markets may find opportunities for acquisitions history, energy and resources
growth via horizontal acquisition (in other consuming, represents a cause of excessive
countries) or developing via vertical precaution. Some studies demonstrate that
acquisition (integration of suppliers or approximately two thirds of the companies
customers from existing market). involved into transactions fails and the M&A
The financial crisis made the regulatory result is a divesture afterward (Schweiger,
entities around the world to pay more 2003). [2]
attention to complex instruments used by The knowledge of the reasons of this lack
companies to achieve growth – financial or of success represents a lesson that the
transactional. The consequence in M&A decision makers should learn, or the
sector was a strengthening of control on consultants should teach.
capital requirements, which will limit the
transactions freedom. 3. Causes and studies of unsuccessful
The valuation is still made under the old- M&A
standards, at least in the insurance M&A
transactions. The opportunities that may The importance of the information in this
occur in 2013 should not be missed; on field of interest is known and the literature
contrary the valuation of the targets should about the factors which caused the failure of
be exceeded. the mergers and acquisitions is substantial.
Alternative use of capital can be also
issues that the decision factors of M&A 3.1. Factors that determine failure
should assess. If they judge that the capital
should be used for other purposes, for The most important root causes of M&A
example shares buying, the M&A failures are the following:
transactions can be still declining. However, a. Strategy - buying the wrong
companies become more reluctant to invest company
in financial instruments, especially b. Price - buying to high
derivatives which carry a higher risk. c. Implementation - execution of the
Emerging markets are an opportunity for transaction was improperly made
bigger assets and new business. The d. Unknown factor - everything done
problems that can occur from focus on adequate, but unknown factor
emerging markets are related to the occurred
regulations for those areas on long term, as Those factors should be analyzed before
the economical evolution of those parts of the the transaction decision is made by the
world is not known. decision makers:
For insurance M&A activity, catastrophes a. The target strategy represents the
are issues taken into considerations because strategy of an acquirer to buy a target. This
their enormous impact on economic life. should be done taking into consideration the
Tax reform can also affect the M&A compatibility between the two companies in
market, of course depending on the sector terms of field of operations, finance and
involved. demands, the long term goals of the acquirer
Last, but not least, the human factor is of
high importance, as the talents from M&A b. The price strategy, overpayment, has
sector should be discovered and of course bad consequences as the high price leads to
encouraged. The specialists and also forecast of high synergy. This leads to
consultant’s expertise should be used by additional pressure on the higher
decision takers. profitability, even if it is not possible.
Deloitte study shaped the configuration of
2013 M&A market under the most important c. Implementation strategy is also a phase
real issues that may occur for different that should be analyzed and planned before
situations. the transaction is closed. Of course all the
operational terms should be planned, from
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communication to business ethics. If all those Other papers go on, and verify if the
compatibilities are checked from the performances depends on the method of
planning phase, then the premises of un- financing the merger or acquisition. For
failing M&A are met. example, the one of Loughran and Vijh, [6]
from 1997 demonstrates that if the
d. Unknown factor - as mentioned in the transaction is cash financed, the results are
first part of the paper, even if everything is better than the same situation but stock
done properly and really well planned, financed.
unexpected can occur and can lead to failure Another type of performance studies, the
of the transactions. For example, a accounting one, compares the financial
catastrophe appears unexpected, and is a statements of the acquiring company before
cause of a huge slowdown worldwide. and after the transaction. Goughan, in 2007,
verified using this method if the acquirer
The value for the acquirer is given by the performed better than the non-acquirers. [7]
synergy created, which is usually as economy All the study from literature, even for
of scale or scope. The economies of scale are UK market (Meeks, 1977 and Dickerson,
obtained in horizontal mergers (transactions 1997), US (Ravenscraft and Scherer, 1987)
between companies in the same industry or or Indian market (Kumar, 2009)
similar domains), while economies of scope demonstrated that after the mergers or
in vertical mergers (transactions between acquisitions, the profitability did not grow,
companies in different stage of production’s just slightly improved for few cases.
activity). The third type of the studies, the
executive surveys, based on questionnaires
3.2. Studies of unsuccessful M&A completed by the managers of the companies
involved in transactions, offered a different
In literature, there were some studies result. This may be, in opinion of the authors
created to analyze the value and the of the studies, for example Bruner, a cause of
performance made by the transaction. The CEO’s ego.
event studies examine the abnormal results Another type of analysis, which revealed
around the time of announcement of better results and insights, are the interviews
transaction. This means the difference with the managers involved in transactions,
between the change of share price and a called clinical studies. Many studies were
given index. All of those studies realized and found the causes of success and
demonstrated a negative or below failure of the transactions. For example,
expectations evolution, related to the period Bruner in 2001 found that one merger failed
of time analyzed. For example, the study of because of disbelief in merger synergies and
Jensen and Ruback, from 1983,[3] based on a transfer control of the two parts, while
1 year analysis, revealed a return average of - another study had three clear conclusions: the
5.5%, while the studies of Magenheim& objectives of the management team is not the
Mueller, from 1987,[4] for a long-term 3 wealth of shareholders, hubris
years show a return of -16%. From the (overconfidence of the managerial team) and
literature studies it can be said that the return ignorance of the information available.
shares are oscillating. This hubris is also the reason of high
Around the time of announcement those premiums. The companies acquired with this
are positive, but the long term analyze shows high hubris of the executive management
that the acquiring firm shares declines even usually do not reach the synergy projected.
for a long period of years. The study of Usually, hubris transactions ignore the
Andrade, Mitchell and Stafford, from 2001, information provided by due diligence
goes further on, and examines the share of process, as Hill paper demonstrated in 2001.
the shareholders of both target and acquired So, the management team uses all the usual
company. [5] The conclusions are surprising, analysis but do not take it in the
as the performance of targeted company have consideration compared to the self-
in short term a positive growth, bigger than confidence.
the acquirer company shares on long term.
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3.3. Solution for failed M&A decisions based on analysis are likely to be
more successful.
A hard decision about a merger or an
acquisition that failed is inevitable. Extension 5. Bibliography
of the period of time is just extended agony,
as all the real life example demonstrated that [1] Deloitte, “Top 10 Issues for Insurance M&A
sooner the decision is made, sooner the losses in 2013”, US, 2013.
decreased. [2] Schweiger, D.M., “M&A Integration: A
The solutions can be divestitures or Framework for Executives and Managers”,
The ICFAJ Journal of Applied Finance, vol
Liquidations. 9(2), pp. 71-79.
Divestitures occurs when the organization [3] Ruback, R., Jensen, M., “The Market for
decide to sell a business unit to another Corporate Control: The Scientific Evidence”,
company. This division can be “spun off”, Journal of Financial Economics, Vol. 11,
and this mean the creation of a new business 1983, pp. 5-50.
organization with the tracking of the initial [4] Magenheim, E., Mueller, D.,“Are Acquiring
issues. One example is the case of divesture Firm Shareholders Better Off After an
is Daimler-Chrysler, when Chrysler assets Acquisition Than They Were Before?”,
Oxford University Press, New York, 1988.
were divested, with losses compared to the
[5] Andrade, G., Mitchell, M., Stafford, E.,
payment made to acquire Chrysler. “New Evidence and Perspective on
Usually this decision must be taken by the Mergers“, Journal of Economic Perspectives
same CEO and this can represent a 15(2), 2001, pp. 103-120.
psychological decision. Hitt, in his paper [6] Loughran, Vijh, “Do Long-Term
from 2005, found that the acquired Shareholders Benefit from corporate
companies which are afterward divested have acquisitions?”, Journal of Finance, 1997.
some common points, as low performance, [7] Goughan, P.A., Mergers, Acquisitions and
desire to maintain the acquisition is low, the Corporate Restructuring, John Wiley&Sons,
acquired company is young and small, or the Inc. New Jersey, 2007.
[8] Hitt, M., Ireland, R., Hoskisson, R., Stategic
acquirer has a lot of experience in divesture.
Management Competiveness and
[8] Globalization (Concepts), 6th ed. Thomson-
Another solution is closing, or south-Western, Mason, OH, 2005.
liquidations, when a division is shut down,
assets are sold and the personnel are fired.
4. Conclusions
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Cioban Costel-Ioan
Faculty of Economics and Business Administration Iași
Doctoral School of Economics
costel.cioban@gmail.com
Cioban Gabriela-Liliana
Faculty of Economics and Public Administration Suceava
gabrielac@seap.usv.ro
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into account two different issues: a social The demographic prognosis accomplished
aspect and a persona aspect. Philip J. by various specialty institutions of more
Lonmen, known researcher at New American countries have confirmed the people’s
Foundation-Washington D.C., affirmed into a progress of the world registered up to the half
report as regards the world economic of this century; in this way, the progress
situation and the people’s progress that “the analysis as regards the people’s aging process
world of today is getting older and older”. has been simultaneously emphasized (see
Table 1).
Table 1- The people’s growth prognosis related to different continents between 2010 and 2050
(Millions of inhabitants)
People’s all-
North South Oceania and
Year out on world Africa Asia Europe
America America Australia
level
2010 6.843 1.007 346 599 4.130 726 35
2015 7.219 1.115 361 634 4.351 721 37
2020 7.578 1.228 375 667 4.554 715 39
2025 7.905 1.344 388 697 4.728 707 41
2030 8.199 1.463 401 722 4.872 698 43
2035 8.463 1.584 411 744 4.992 688 44
2040 8.701 1.705 421 761 5.092 677 45
2045 8.907 1.823 429 774 5.168 666 47
2050 9.076 1.937 438 783 5.217 653 48
Source: World Urbanization Prospects, Revision in 2005
As can be noticed on the wide-world, changes coming from the last history century,
people is going to grow in numbers, fact and so on (therefore, as regards Romania,
reflected into the existence of over nine while reducing the youth people determined
milliards of inhabitants registered at the half the pyramid’s basis straitening, the increase
of this century. The increase rhythms of of old people weight determined the burying
people have been varying from one continent of pyramid’s pin).
to another. While Africa’s people will be The consequences of reducing the
doubled in numbers in the next forty years birthrate on short and mean terms will be
(for instance, from 1.007 million to over neutral, as regards the demographic impact,
1.900 million), the Asia’s people will know and preponderantly positive, as regards the
an increase of about 12.6%, as the North economic point of view. These represent an
America’s population. The South America introduction to the future demographic and
will know an increase of over 13%, while the economic development, which can be
old European continent will be the only one extremely complex and underlying negative.
affected by a diminution of people with over The predictable consequences of this
9%. Many demographers have considered the situation cannot be stopped by means of
diminution of European people as being setting up the growth of “immediate”
determined by the birthrate reduction, as well fertility; such issue will have the effect taken
as being accompanied by a fast aging of into account in the second half of the century.
people. In order to repair such situation, applying
a strategy in Romania has become necessary,
2. Demographic issues of Romania as regards the measures of straightening of
the birthrate. On improving the people’s
The demographic issues of Romania, health state, as well as the people’s
related to people’s number diminution, can demographic recovery, the governmental
signify the result of various cumulative politics of the last decade have played a part
factors: a negative external migration, to (at all significant), foreseeing:
which the natural diminution was added, the children’s growth allowance, within a
diminution achieved after the occurrence of period of two years, after the children’s
general mortality recrudescence, the massive birth;
stroke of birthrate, as well as the temporary the motherhood allowance paid;
external migration, not statistically introducing the parenthood allowance,
registered, the demographic politics or the which allows women to follow a career,
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in order to compensate the family’s Africa, the life expectancy is extremely low
incomings; (people of 52 years old), and the infantile
Exemption from some taxes. mortality and deaths within children of up to
The access to the private medical services, five years old will be relatively high (42.67
owning a high quality and professionalism and respectively, 57 at 1000 live born
level, has contributed on maintaining and children); in the developed European
increasing the health’s state of some people. countries, such situation is much more
One might mention that mother’s mortality improved (the life expectancy of over 80
has continued to register a high level of years old, 13 deaths for children under 1 year
occurrence, as comparing to the European old and 14 deaths for children under 5 years
standards (According to some recently old, as regards 1000 live born children)[3].
studies, provided by the World Health Concerning Romania, the life expectancy
Organization (WHO) , Romania has the on birth is of 73.5 (since 1970 and up to
highest rate of abortions in Europe - 520 present, the average life expectancy increased
pregnancy abortions at each 1000 live born, from 67.33 years old up to 73.47 years old.
over the average double value in European As result, in the last 41 years, the average life
Union.). expectancy was increased with 74 months,
Though knowing some exceptions, a meaning being majored with an average of 7
conception is taken into account, according weeks per year in the last 41 years.) [4] years
to which the individuals best placed as old, though it is amongst the lowest countries
regards the economic and social point of in Europe, where the main causes are the
view might simultaneously enjoy of a better infantile mortality, the youth mortality or the
state of health. Such thing results from many adults up to 65 years old mortality, as well as
studies and analysis that were carried out all the down of birthrates. As comparing to the
over the time, proving that there is a strong developed countries, the percentage of young
connection between the social-economic people (15-34 years old) is low, and of adult
status and the mortality rate [1]. and age people (35-65 years old) seems to be
The incomings disparities between the quite high in Romania.
rich and poor countries, as well as between Within the European Union, Romania is
the individuals of the same nation, have placed amongst the countries with the lowest
confirmed that the first mentioned category levels of life expectancy on birth, although
of people pays a higher attention to health. In this has been continuously improved in the
the same time, the existence of an inverse last decade, similar to the progress of
relationship between the GDP and the European Union member states, thus
mortality rate is also confirmed, the last one remaining to a lower value of almost 6 years,
being higher for the countries in progress of as comparing to the EU-27 average.
development, meaning countries of low The increase of life expectancy on birth
revenues. signifies an important issue, as regards the
The countries having higher economies life quality growth, and implicitly the
will always allot significant resources in economic growth of the country or region of
order to finance the health sector, as a the world, issue also confirmed by the studies
premise to a sustainable development on long elaborated all over the time. In this way, in
term. As result, the evaluation of people’s 1997, Barro reached to the conclusion that an
health state for nations will be emphasized by increase of life expectancy by 10% will
three indicators [2]: determine an increase of the economic
life expectancy on birth; growth, from 4% up to 10% (Evaluation
infantile mortality (under one year old); illustrated in paper of Richard M. Scheffer)
Mortality, under five years old. [5]. Such influence has been emphasized by a
These indicators have been influenced by report of the European Committee, entitled
the social-economic, cultural, behavior or Macroeconomics and health: investing in
sanitary factors and so forth, factors that are health for economic development, specific to
underlying the demographic trends that have the macroeconomics and health fields, and
been registered especially since the nineties coordinated by Jeffrey D. Sachs (2001). In
and up to present. One might see that for the this report, it is mentioned that an increase of
countries in progress of development, as life expectancy on birth by 10% will
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rata totală de f ertilitate (numărul mediu de 2,3 2,9 2,4 1,8 1,3 1,2 1,3 1,3 1,3 1,3 1,3 1,3 1,3 1,3 1,3
copii la o f emeie
rata generală de f ertilitate (la 1000 de 73,9 81,2 74,8 56,2 40,3 37,8 37,5 37,8 38,4 39,4 39,5 38,9 40,6 41 39,4
f emei din grupa de vârstă 15-49 ani)
As regards the infantile mortality rate rural environment, and not lastly, by the level
related to residence environments, this is of schooling or occupation that is reduced to
maintained as being higher in the rural mothers (homely mothers).
environment (12.6‰, with 1.268 deaths in One considers that improving such
2009), as comparing to the urban indicator cannot only be solved on medical
environment (8.1‰, with 982 deaths in level, but an interaction amongst the factors
2009). The difference became obvious to previously emphasized might be essential.
death people of over one moth old (6‰ – 604 As result to all these illustrated,
deaths in the rural environment and 3.1‰ – maintaining low values of the birthrates and
376 deaths in the urban environment) and fertility rates, as well as aging of generations,
lower to death people of under one month old will gradually bring towards a changing of
(6.6‰, respectively 664 deaths in the rural structure, on age classes related to Romania’s
environment and 5.0‰, respectively 606 people. Table 2 illustrates the people’s
deaths in the urban environment). As structure of Romania, on age classes, the
comparing to the year 2000, one might see a current situation, as well as the strict
reduction of 45 - 46%, and as comparing to conclusions that result from extremely
year 1990, the diminution has the value of pertinent prognosis, as concerns the
about 63%. demographic progress of Romania in 2050
The above mentioned situation has been (underlying especially on the prognosis of
explained by the lack of sanitary education, author V. Ghetau).
as well as the inaccurate information of
people, by a poor sanitary assistance in the
Table 2. Romania’s people structured on age classes -thousands of people-
Age class 2010* 2011** 2050**
(years) Weight Weight Weight
Number Number Number
(%) (%) (%)
Total 21400 100,0 19043 100,0 14849 100,0
0-19 3200 15 4076 2140 2459 16,57
20-64 13800 64,4 11918 62,60 8280 55,76
≥ 65 4400 20,5 3049 16,00 4110 27,67
Source: * INS, Romania în cifre, 2010; **INS, România în cifre, 2011; Vasile Gheţău, Drama
noastră demografică. Populaţia României la recensământul din octombrie 2011.
Reprofesionalizarea României IV, Institute of Projects on Innovation and Development, 2012, p. 47
The development of the dependency years old). Until 2050, Romania will reach
report of elderly people in Romania seems to the first three countries with elderly
be starting in 2027, when the generations population, since the dependency rate of
born after 1996 will enter into the old people seniorities will become three times higher in
class (over 60 years old). The prognosis for value.
the next decades have been quite concerning,
since they manifest an emphasized trend on 3. Conclusions
reducing the youth weights (0-19 years old),
and the increase of elderly people (over 65
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Ciobanu Dumitru
University of Craiova
ciobanubebedumitru@yahoo.com
Vasilescu Maria
“Constantin Brâncuşi” University of Târgu Jiu
maria_vasilescu1983@yahoo.com
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proneness to overfitting, and the empirical research where no correct answer is required
nature of model development. An overview to learn or train a network. In 1986
of the features of neural networks is Rumelhart, Hinton and Williams wrote a
presented, and the advantages and paper [15] on the back-propagation method,
disadvantages of using this modeling which opened up a flurry of activity in the
technique are discussed. late 1980s and 1990s.
Neural networks are used extensively in
2. Neural networks definitions and brief the business world as predictive models. In
history particular, the financial services industry
widely uses neural networks to model fraud
An Artificial Neural Network (ANN), or in credit cards and monetary transactions [8].
simple Neural Network (NN), is an Some of the well known types of neural
information processing paradigm that is networks are: Competitive Learning [6, 16],
inspired by the way biological nervous the Boltzmann Machine [10], the Hopfield
systems, such as the brain, process Network [11], the Kohonen network [12], the
information. The key element of this Adaptive Resonance Theory (ART) [7], and
paradigm is the novel structure of the back propagation neural networks [15].
information processing system. It is Although there are many other variations of
composed of a large number of highly neural networks, the back propagation
interconnected processing elements (neurons) network and its variants, as a subset of
working in unison to solve specific problems. multilayer feed forward networks, are
ANNs, like people, learn by example. An currently the most widely used networks in
ANN is configured for a specific application, applications.
such as pattern recognition or data
classification, through a learning process. 3. Elements of a neural network
Learning in biological systems involves
adjustments to the synaptic connections that Neural networks attempt to mimic a
exist between the neurons. This is true of neuron in a human brain, with each link
ANNs as well. described as a processing unit. Neural
A Neural Network is a parallel computing networks learn from experience and are
system of several interconnected processor useful in detecting unknown relationships
nodes. The input to individual network nodes between a set of input data and an outcome.
is restricted to numeric values falling in the Like other approaches, neural networks
closed range [0,1]. Because of this, detect patterns in data, generalize
categorical data must be transformed prior to relationships found in the data, and predict
network training [14]. outcomes. Neural networks have been
Another definition is given by Haykin [9]: especially noted for their ability to predict
A neural network is a massively parallel complex processes.
distributed processor that has a natural Processing elements, or processing units
propensity for storing experiential knowledge are linked to inputs and outputs. The process
and making it available for use. It resembles of training a network involves modifying the
the brain in two respects: strength, or weight, of connections from the
• Knowledge is acquired by the network inputs to the output. Increase or decreases in
through a learning process. the strength of a connection is based on its
• Interneuron connection strengths known importance for producing the proper
as synaptic weights are used to store the outcome. A connection’s strength depends on
knowledge. a weight it receives during a trial-and-error
In 1982, John Hopefield published a paper process. This process uses a mathematical
[11] showing how neural networks could be model for adjusting the weights, and is called
used for computational purposes. In 1984, a learning rule.
Teuvo Kohonen [13] introduced a new Training continues until a neural network
algorithm he called an organizing feature produces outcome values that match the
map, which allowed for a process of using known outcome values within a specified
neural networks for unsupervised learning. accuracy level, or until it satisfies some other
This opened a new branch of neural network stopping criteria.
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improvement at that solution state is also • Adaptive learning: An ability to learn how
known. A learning rate is user-designated in to do tasks based on the data given for
order to determine how much the link training or initial experience.
weights and node biases can be modified • Self-Organization: An ANN can create its
based on the change direction and change own organization or representation of the
rate. The higher the learning rate (max. of information it receives during learning
1.0) the faster the network is trained. time.
However, the network has a better chance of • Real Time Operation: ANN computations
being trained to a local minimum solution. A may be carried out in parallel, and special
local minimum is a point at which the hardware devices are being designed and
network stabilizes on a solution which is not manufactured which take advantage of
the most optimal global solution. this capability.
Momentum Rate: To help avoid settling • Fault Tolerance via Redundant
into a local minimum, a momentum rate Information Coding: Partial destruction of
allows the network to potentially skip a network leads to the corresponding
through local minima. A history of change degradation of performance. However,
rate and direction are maintained and used, in some network capabilities may be
part, to push the solution past local minima. retained even with major network
A momentum rate set at the maximum of 1.0 damage.
may result in training which is highly Neural networks are universal
unstable and thus may not achieve even a approximators, and they work best if the
local minimum, or the network may take an system you are using them to model has a
inordinate amount of training time. If set at a high tolerance to error. However they work
low of 0.0, momentum is not considered and very well for:
the network is more likely to settle into a • capturing associations or discovering
local minimum. A process of "simulated regularities within a set of patterns;
annealing" is performed if the momentum • where the volume, number of variables or
rate starts high and is slowly shifted to 0 over diversity of the data is very great;
a training session. Like other statistical and • the relationships between variables are
mathematical solutions, back propagation vaguely understood;
networks can be over- parameterized. This • the relationships are difficult to describe
leads to the ability of the statistics to find adequately with conventional approaches.
parameters which can accurately compute the The greatest strength of neural networks
desired output at the expense of the system’s is their ability to accurately predict outcomes
ability to interpolate and compute appropriate of complex problems. In accuracy tests
output for different inputs. To ensure that a against other approaches, neural networks are
back propagation neural network is not over always able to score very high [1].
parameterized, the training data must be split There are some downfalls to neural
into a training and a testing set. It is the networks.
performance of the trained network on the First, they have been criticized as being
data reserved for testing that is the most useful for prediction, but not always in
important measure of training success. understanding a model. It is true that early
implementations of neural networks were
4. Strengths and weaknesses of neural
criticized as “black box” prediction engines;
networks
however, with the new tools on the market
Neural networks, with their remarkable today, this criticism is debatable.
ability to derive meaning from complicated Secondly, neural networks are susceptible
or imprecise data, can be used to extract to over-training. If a network with a large
patterns and detect trends that are too capacity for learning is trained using too few
complex to be noticed by either humans or data examples to support that capacity, the
other computer techniques. network first sets about learning the general
Other advantages include: trends of the data. This is desirable, but then
the network continues to learn very specific
features of the training data, which is usually
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undesirable. Such networks are said to have independence etc. Because an ANN can
memorized their training data, and lack the capture many kinds of relationships it allows
ability to generalize. Commercial-grade the user to quickly and relatively easily
neural networks today have effectively model phenomena which may have been very
eliminated overtraining through difficult or impossible to explain otherwise
“bootstrapping holdout (test) samples”, and [4].
by monitoring test versus training errors [8]. Combining multiple models to improve
The mathematical theories used to forecast accuracy has been extensively
guarantee the performance of an applied studied in the literature. The literature is vast
neural network are still under development. and growing. The idea of association models
The solution for the time being may be to is the assumption that the basic structure of
train and test these intelligent systems much real data is difficult or impossible to model
as we do for humans. Also there are some by an exact model and the fact that different
more practical problems like: models can play a complementary role in
• the operational problem encountered capturing different data models.
when attempting to simulate the Effectiveness of combined forecasts was
parallelism of neural networks. Since the determined both theoretically and
majority of neural networks are simulated empirically.
on sequential machines, giving rise to a
very rapid increase in processing time 6. References
requirements as size of the problem
[1] Berson, A., Smith, S., Thearling, K.,
expands. One solution to this problem is Building Data Mining Applications for
to implement neural networks directly in CRM, McGraw-Hill, 1999.
hardware, but these need a lot of [2] Box, G. E. P., Jenkins, G., Time Series
development still. Analysis: Forecasting and Control, Holden-
Day, 1976.
• instability to explain any results that they
[3] Ciobanu, D., Using Neural Networks for
obtain. Networks function as "black Prediction in Business Planning,
boxes" whose rules of operation are Proceedings of the international conference
completely unknown. ECOTREND 2011 – Exit from the crisis and
revival of sustainable growth, November 25-
5. Conclusions 26, Târgu Jiu, Romania, 2011.
[4] Ciobanu, D., On a model for predicting the
Neural networks have broad applicability exchange rate euro-leu with a NAR neural
to real world business problems. In fact, they network, Proceedings of the 19th
have already been successfully applied in International Economic Conference – IECS
many industries [3]. 2012.
Some more specific examples of using [5] Fayyad, U., Grinstein, G., Wierse, A.,
ANN are the following paradigms: Information Visualization in Data Mining
and Knowledge Discovery, Morgan
recognition of speakers in communications; Kaufmann Publishers, 2002.
diagnosis of hepatitis; recovery of [6] Grossberg, S., Adaptive pattern
telecommunications from faulty software; classification and universal recoding, ii:
interpretation of multimeaning Chinese Feedback, expectation, olfaction, and
words; undersea mine detection; texture illusions., Biological Cybernetics, 23, pp.
analysis; three-dimensional object 187-202, 1976.
recognition; handwritten word recognition; [7] Grossberg, S., Competitive learning: From
and facial recognition. interactive activation to adaptive resonance.,
Depending on the nature of the Cognitive science, 11, pp. 23-63, 1987.
application and the strength of the internal [8] Groth,R., Data Mining: Building Completive
Advantage, Prentice Hall, 2000.
data patterns you can generally expect a
[9] Haykin, S., Neural Networks: A
network to train quite well. This applies to Comprehensive Foundation, Macmillan,
problems where the relationships may be New York, p. 2, 1994.
quite dynamic or non-linear. ANNs provide [10] Hinton, G. E., Sejnowski, T. J., Ackley, D.
an analytical alternative to conventional H., Boltzmann Machines: Constraint
techniques which are often limited by strict satisfaction networks that learn, Technical
assumptions of normality, linearity, variable
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Condrea Elena
„Ovidius” University of Constanta, Romania
Faculty of Economics Sciences
elenacondrea2003@yahoo.com
Sârbu Roxana
Academy of Economic Studies, Bucharest, Faculty of Commerce
sarburoxana@yahoo.com
Rizea Raluca Daniela
Academy of Economic Studies, Bucharest, Faculty of Commerce
r.rizea@gmail.com
Abstract 1. Introduction
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Agency for Quality Assurance in Higher changes in the program after the
Education. authorization / accreditation, subject to the
The results of the accreditation process regulations in force).
are made public, so that it can be known by Authorization - Accreditation - regular
all stakeholders, including: students, assessment of the university.
prospective students, teachers, partners of Other external evaluation on the
education etc.. institution's research capacity, capability of
If we talk about the role of university teachers, doctoral supervisors - for example,
accreditation, it can be said that there are four rating EUA (European University
aspects, namely [5, 8]: Association).
Quality assurance - a university that The accreditation process involves three
has the status of accredited university steps of specific activities (usually), namely
offers its customers and partners [10]:
confidence in the sense that the The running of a self-assessment process,
institution meets the standards in force coordinated by the lead faculty / institution,
in this area on the act of education and other members of the academic body
itself, related services for students, or the departments in the the structure of
services from the library etc.. the faculty / university. This stage ends
Allows access to state funds - with the development of a self-evaluation
according to the legislation specific to report in which reference is made to the
the education sector, only accredited criteria / standards imposed by the
universities receive funding from the accrediting agency;
state budget, based on the results of the The assessment visit, for the accreditation,
accreditation / reaccreditation. to the faculty to which belongs the program
Builds and strengthens public and submitted for the accreditation /
private sector confidence in the reaccreditation. The evaluation
institution of higher education - commission members are selected by the
academic accreditation means that the accrediting institution so as to be
educational curriculum standards are compatible with the program evaluated. In
met, the organizing of courses and the field, the evaluation team visits the
seminars / practical assignments, locations specified in the self-assessment,
organization of specialty practice, evaluates the evidence in the particular file,
continuous training of teachers, etc.. interviews academic and administrative
All this leads employers / potential staff; based on the findings, the evaluation
employers to be confident that the team prepares an assessment report which
graduates of these universities are contains some recommendations to the
prepared (at least theoretically), have accreditation committee at the level of the
the necessary skills to handle a job in certifying institution.
the field they were studying. The accreditation commission's review of
Facilitates the transfer and mobility of the evidence and respectively of the
students from one university to another recommendations issued by the members
- the transfer of students from one of the evaluation commission which was in
university to another is possible only if the field, based on a set of criteria on the
the universities involved in this process quality of university education. This stage
are accredited. An undergraduate ends with the issuance of the decision on
student may take the exam / the accreditation of the academic program
dissertation only at the an accredited in question, a decision which is
higher education institution in the field. communicated to the institution subject to
Most of the time, in Europe, including accreditation and, if applicable, all
Romania, entities exercise one of mixed stakeholders in this regard.
systems of evaluation - accreditation of
universities, namely: 3. Certification. General aspects
Authorization - Accreditation - regular
assessment of a study program (with the Broadly, "the certification is a procedure
possibility that the institution can make some for attesting the conformity of a product,
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Cosma Emil
"Ovidius" University of Constanta, Faculty of Economic Sciences
ecosma@univ-ovidius.ro
1. Introduction
2. Events Categories
An event is the result of initiating an
action on an object (control). Action can be Some events are general and they are
done with the mouse (position even without shared by most objects. For example, almost
clicking, left click, right click, double click, all objects can be clicked. Some events are
drag, drive wheel) or using the keyboard based on objects category, such as only
(pressing a key or a function key). objects that can receive text. Some other
When an action is performed on a control, events are very restricted because their object
the control must send a message to the needs particular functionality.
operating system, allowing it to know what Click Events. Probably the most
happened. The operating system must then common event fires when an object is
decide what to do, whether to respond to the clicked. The event is called On Click. This
message or send the message to another event does not carry information about the
object. Obviously, for a message to source (not identify that was using the mouse
accomplish its purpose, it must carry some or keyboard). Another common event of
information. Because there are different types controls is fired when an object is double-
of objects and there are various types of clicked. This event is represented as On Dbl
actions that can be performed on them, there Click
are also various types of messages. Focus Events. A user can place the
cursor on a control with the mouse or by
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pressing the Tab key (on keyboard) several Once a form has been loaded is currently the
times (without running click). In both cases, active form, the user can use it. After using
when a control receives focus, it fires an the form the user can close (the user can
event named On Got Focus. These controls either use the system close button or you
can generate events, for example, pressing must provide other means of closing the
Enter - On Enter. Controls may be focused form). As this starts, the form must lose
successively using the Tab key. You can focus. If the form was the only object opened
finally run events such as focus - On Exit, in Microsoft Access, the body of the
On Lost Focus. application is emptied. If there are other
Mouse Events. Mouse and keyboard objects, the form would be closed and
are working devices most commonly used. In another object would become active. As this
fact, some applications can be completely is done, the form fires the On Deactivate
used with the mouse only. The mouse is event.
responsible for at least three events (Down, When the form is being closed, it must be
Up, Move). If the user positions the mouse removed from memory to release the
on top of a control but doesn't click, the resources it was using (so that those
control fires an event named On Mouse resources can be used by other applications).
Move. In connection with moving the mouse While this is being done, the form fires the
should be taken into account several On Unload event. Once the form has been
elements: buttons, keys (Ctrl, Alt, Shift), removed from memory, it (the form) fires an
cursor coordinates. event called On Close..
Keyboard Events. There are several Text Box Events. As you know
ways to use the keyboard. The user can press already, to use a text box or a combo box, the
Tab to move focus from one control to user can click the control and start typing. If
another. A user can also click a text-based the control already contained some text, the
control and start typing. After pressing the user can edit it using keys. When the text is
key, when the user releases or depresses it, being entered or edited, the control fires the
the control fires an event named On Key Up. On Change event.
The message of this event carries the same Combo Box Events. A combo box
types of information as the On Key Down (drop down list) is a control that holds a list
event. When the user presses a key, if you are of items. To use it, the user can click the
interested only on the key that was pressed arrow of the control to display the list and
and not on any combination of keys, use the select an item. Some versions of the combo
On Key Press event. box allow a user to click the text box part of
Form Events. To use a form, the the control and start typing. The control
user must open it, either from the Navigation would then try to find an item that matches
Pane or from another object you provide what the user is typing or has typed.
them. When the form is being opened, it fires Sometimes, after the user has finished typing
an event named On Open. As the form is (and press Enter or Tab to move focus),
opening, it must occupy memory. As this is Microsoft Access (the database engine) may
happening, the form fires an event named On not find a match and would display an error.
Load. This means that the text the user typed did
To make itself known to the operating system not match any of the items of the combo box.
and to other applications on the same In this case, the control would fire an event
computer, the form must draw its border. named On Not List.
When this is being done, the form fires the Records-Related Events. Because
On Resize event. Microsoft Access is a database application, it
If the form was already opened more objects provides some event that, are particular to
(forms, reports, tables), if the user wants to records and their fields on a form or report.
bring it to the front, she must click either its To create a new record, the user must move
title bar or an area of the form. When this is to an empty record on a form. The user can
done, the operating system must paint its title click a control such as a text box and start
bar with a bright color. Either case, when a typing. When this happens, the form fires an
form comes to the front of other windows, it event named Before Insert. If a record exists
fires an event named On Activate. already, the user can open or access, click
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one of its fields and start typing or editing. To create a macro, click the Macro
When at least one value in the record has button in the Marros & Code section.
been changed, the form fires the On Dirty Macro created is given a name and will
event. After a record has been changed and appear in the list on the Navigation Pane:
submitted to the database, the form would
fire an event named Before Update. It also
might follow the situation after creating a
new record (After Insert event). If a table
contains more than one record, after the user
has opened its corresponding form, the user Two windows would display and they are
can navigate from one record to another. separated by a split bar. To give more room
When the user moves from record to record, to one of the window, position the mouse
the form fires an event named On Current. between them, click and drag in the desired
We know that, to delete a record, a user can direction. The left window presents a tab or a
click the record and press Delete. This would title bar labeled Macro1. By default, that
display a warning message. Before that window displays a combo box. The right
message comes up, the form fires the Before window displays buttons with . This means
Del Confirm event. After the user has that they are nodes. To expand a node, click
clicked one of the buttons on the message its button. When you do, the node would
box, the form fires an After Del Confirm display its items:
event. If the user decides to delete a record,
before the record is actually deleted, the form
fired an On Delete event.
3. Macros
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logically. Otherwise, you can click an action. Property Sheet for the object and access the
The bottom section would show a description Event.
of the action: Instead of first creating a macro before
assigning it to command button, as another
technique (in the Design View of the form)
you can right-click the object and click Build
Events. In the Choose Builder dialog box,
you can click Macro Builder and click OK.
The new macro would be automatically
assigned to the control.
4. Examples
After creating a macro, you can use it. 7. Click button (Form Design) from the
This is usually done by assigning it to an Create tab, Forms group. Insert the form
event of a form, a report or a control. To controls - Label with text “This will
assign a macro to an object, access the display the text of the message”:
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9. Proceed similarly for the second button. 4. Macro created will appear in the
Actions these are GoToRecord (Box Navigation Pane:
Record: Last) and Beep. Close the
Macro Builder window for the button.
10. It displays the form in Form View, and
finding its operation by pressing buttons
Fist and Last: 5. Editor Microsoft Access 2013 closes
(when closing the database is saved
under a name that is meaningful,
because in the next section will reopen).
6. Reopen previously created database and
found activation in the Form2 home:
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Cosma Sorinel
„Ovidius” University Constanta
sorinelcosma@yahoo.fr
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management of the company. Given their – bureaucracy, the modern state, and the
size, these corporations are divided into capitalist economy – were linked to one
departments, divisions, and this brings about another in their evolution. As an
a rigid bureaucratic administration in the administrative system, bureaucracy was to
absence of a creative leadership meant to Weber a social entity both indispensable and
adapt and adjust production and distribution rooted into the most prominent
to the changes in offer and demand. characteristics of modern society and a
But the fact is that no profit seeking formidable structure of the power, able to
company, no matter how large it might be, is control large scale actions, continuous in its
susceptible of becoming bureaucratic unless manifestation, socially and morally cohesive
the government interferes with its through its expertise and control of
management. [4] information.
We can say that looking into the issue of Observing the changes that were taking
bureaucracy is a good starting point for the place during the industrial revolution, Max
study of two social systems – capitalism (free Weber saw capitalism as the rational way to
enterprise, private property) and socialism. organize activities: all decisions could be
[6] And the analysis must be built onto the based on the calculation of their likely return
comparison between profit based to the enterprise. Weber's ideal bureaucracy
management and bureaucratic management. was therefore devoted to the principle of
efficiency: maximizing output while
2. Weber’s Theory on Bureaucracy minimizing input. It was characterized by
impersonality, efficiency and rationality.
German sociologist, political economist Also, it is a system based on discipline.
and administrative scholar, Max Weber is According to Weber, bureaucracy is a
considered to be the pioneer of the classic particular type of administrative structure
social scientific analysis of bureaucracy. His developed through rational-legal authority.
critical study of the bureaucratization of His rationale described it as being the ideal
society is one of the most enduring parts of way of organizing government agencies.
his work. He began the studies of Weber noted several major principles or
bureaucracy and his works led to the features of bureaucracy:
popularization of the term. In 1922 he wrote - A formal hierarchical structure – in which
a book titled Economy and Society in which each level controls the level below and, in
he showed that, in a modern society with a turn, is controlled by the level above – is the
specialized and highly complex division of very basis of central planning and centralized
labor, bureaucracy ensures collective social decision making. Subordinates follow orders
goals being attained and obstacles to or superiors, but have right of appeal (in
economic development, social advancement contrast to more diffuse structure in
and political stability being removed. In other traditional authority).
words, it solves many of the shortcomings of - Management or control by rules allows
the traditional system. decisions made at high levels to be executed
The powerful, centralized nation-states, consistently by all lower levels.
business corporations and labor unions - Very precise, inertial and abstract rules
predominant in the industrialized world of govern decisions and actions. These rules are
the 20th century were direct creations of the stable, exhaustive, and can be learned, and
bureaucratic organizational techniques. decisions are recorded in permanent files.
Weber lived and wrote in a period when - The specialists in the structure do the work
more and more people got desk jobs in large being organized according to their skills and
companies which were more of economic the type of work they perform.
cartels. Germany at that time had the most - The organization aims at serving either the
advanced type of bureaucracy in all Europe. stockholders, the board or the agency (in
Weber drew the conclusion that bureaucracy which case it is said to be “up-focused”) or
was not specific only to Germany, but the the organization itself (then it is said to be
entire modern society, springing from the “in-focused”).
extensive administrative needs of the modern
state and of the capitalist business. The three
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- Employees and customers are to be treated much more ambiguous than Weber envisaged
equally. No differences are to be made them and they can produce multiple
whatsoever. dysfunctions: obeying rules can lead to
- Employees are hired on the basis of their inflexibility and formalism, impersonality
technical qualifications, appointed not can generate indifference and insensitivity,
elected, compensated by salary, not fired hierarchy can discourage responsibility and
arbitrarily and given the chance to a life-long initiative. So, Weber is said to not have been
career. [1] able to seize the ambivalence of bureaucracy,
Weber made a clear distinction between having been influenced by the mechanical
administrative personnel and the organization discipline examples of the Prussian army and
that empowers them. A voluntary group – by Taylor’s scientific management system.
nation, union, political party, company – Weber disregarded all aspects related to
elects some sort of government to manage its individual personalities, personal needs and
businesses. The government, in turn, employs hopes of those who are supposed to work
administrative personnel to carry out its together efficiently. Plus, Weber did not
policies. And this administrative staff, once treat separately two types of authorities
constituted according to the principles above within the organization – the bureaucratic
mentioned, will be known as bureaucracy. authority given by the position held within
One of Weber's concerns was how the hierarchy, and the authority given by the
society would maintain control over experience of the individual, regardless of his
expanding state bureaucracies. He felt the or her position.
most serious problem was the increased
power of public officials and ultimately the 3. Ludwig von Mises – free market
shift in power from the leaders of society to bureaucracy versus statist bureaucracy
the bureaucrats.
He saw this expansion as a threat to liberal Originally published by Yale University
values on several levels. Firstly, he saw it as Press in 1944, Bureaucracy is a classic
a threat to individual freedom. Secondly he fundamental examination of the nature of
questioned the ability of the leaders of an bureaucracies and free markets in
organization to set its goals. Thirdly, he juxtaposition to various political systems.
called for a pluralism of bureaucratic Bureaucracy contrasts the two forms of
institutions to avoid any monopoly. Also, the economic management—that of a free
power of bureaucrats must be subjected to a market economy and that of a bureaucracy.
coherent leadership and to an efficient In the market economy entrepreneurs are
control. driven to serve consumers by their desire to
Over the years, there have been numerous earn profits and to avoid losses. In a
criticisms of Weber’s bureaucracy bureaucracy, the managers must comply with
theories, especially his claim that orders issued by the legislative body under
bureaucratic organizations based on rational- which they operate; they may not spend
legal authority are the most efficient. without authorization and they may not
There were voices who pointed out the fact deviate from the path prescribed by law.
that when Weber insisted on the superiority Writing in an age of exuberant socialism,
of bureaucracy, he only had old Ludwig von Mises here lucidly demonstrates
administration forms as elements for his how the efficiencies of private ownership and
comparison. Another aspect that was pointed control of public good production ultimately
out is the fact that, for Weber, the efficiency trump the guesswork of publicly
of bureaucracy was not a unique feature of administered “planning” through codes and
the system, but a series of features to satisfy “officialdom.” Although Mises aptly
the wide and complex needs of an industrial critiques bureaucracy and expounds
society. Each feature of bureaucracy leads in thoroughly upon the immense power of law-
fact to meeting an efficiency criterion. like codes of commissions and
Others have shown that, in practice, administrations, he does not condemn nor
obeying bureaucratic rules and norms can dismiss bureaucracy but rather frames its
limit efficiency as well as favor it. This is so proper bounds within constitutional
because the principles of bureaucracy are democratic governments. [8]
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In the foreword of the 1962 edition of his The bureaucrat is limited by rules and
Bureaucracy, Mises stated that the objective regulations in his actions.
of his work is neither to accuse nor to The objectives of the public
criticize bureaucracy, but rather to explain administration cannot be translated into
what is meant by bureaucratic management monetary terms and cannot be checked
and profit management and the differences through accounting methods. In public
between these two ways of handling administration there is no connection
operations in a company or ways in which between income and expenses. Public
people work together. services spend money. The little income they
In his view, the bureaucratic process is a produce is absolutely accidental. Their source
symptom of a condition, the effect of is the law and not the activity of the
socializing, nationalizing and market employees. Within public administration
reduction (profit based management). there are no prices and therefore results
In his 1920 article “Die cannot be assessed.
Wirtschaftsrechnung im sozialistischen So, all in all, bureaucratic management
Gemeinwesen”, Ludwig von Mises proved can be defined as the management method
that economic calculation is impossible in a used in administrative businesses that have
socialist planned economy. The central idea results with no market price (they are not
in his article is that monetary calculation is sold or bought on the market) and cannot be
the indispensable mental tool in selecting the subjected to economic calculation. We must
optimum production plan within a system of not confuse price with value here – the
social labor division. A society without successful management of public businesses
monetary calculation is a society without an does not have a price, but it does have value
economic system. Therefore, socialism and importance.
means eradicating rationality from economy. The basis of bureaucratic management
[6] Ordinary people consider bureaucratic
Bureaucratic management management to be inefficient, slow, and
Since a leader cannot be omnipresent, he formal. But what they identify as flaws and
will appoint some sort of deputy, governor, mistakes are in fact the very features of
or administrator and will delegate some of bureaucratic management. It is wrong to
his power to them but in order to limit the compare work within a governmental
power and freedom of action of his department (the aim is to obey rules and
governors, the leader will issue instructions, regulations) and work within a company
directives, rules and regulations showing which carries out its activity under the
them how to act when various problems influence of the market (the aim is to make a
arise. The governors’ management will be profit).
affected by these rules – they will no longer Bureaucratic management of personnel
do their best to solve a problem, but they will A bureaucrat works in a field in which his
be mainly concerned will complying with efforts cannot be assessed. Money is spent on
these rules. They will become bureaucrats. his or her salary, on offices and what is used
There were voices who claimed that in them (materials, equipment), but the
bureaucratic management on the one hand results of their work cannot be expressed in a
and democratic government and institutions sum of money.
on the other hand are incompatible. But When employed, the candidates have to
Mises claims this is not true: the two pillars have a certain age and certain degrees and
of democracy are the supremacy of the law they must pass certain examinations.
and the budget, and bureaucratic Promotion (and higher pay) is received
management is management in accordance mainly on the basis of number of years in
with the law and the budget. service plus further examinations.
Bureaucracy, in its essence is neither good Competence is not always a criterion. The
nor bad. It is a method of government that department heads are generally elder people
can be applied to different fields of human with only a couple of years to go before
activity. retirement. Having spent most of their lives
Any organization would fall to pieces for in subordinate positions, they have lost their
lack of restrictions.
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energy and spirit of initiative, so they tend to favored by authorities. This kind of situation
avoid what is modern and innovative. lasted for quite some time before efficient
Bureaucratic management of public experts starting to manage companies. [2]
companies With the exception of Mises, economists
The objective of a public company is to had no or little interest in bureaucratic
provide useful services to the community. behavior prior to the 60s. It was only later
But who is to decide if and when a service is that the internal mechanism of bureaucracy
useful? How can we tell whether services was properly studied especially in relation to
cost more than their results? A deficit cannot political leadership.
be read as a failure and the manager is not
blamed for it. 4. Conclusions
Any service, no matter how good it might
be, can still be enhanced. But this is done by Weber and Mises both authored studies on
the manager out of public funds and bureaucracy. They each approached
according to a strict code of instructions from bureaucracy from completely different angles
the government or the local authorities. and reached completely different conclusions
When profit is a company’s sole regarding the nature and consequences of
objective, the company will never fall under bureaucracy. Weber’s theories are formal and
bureaucratic management practices. No typological, while Mises’ theories are
matter how large it is, the company will be axiomatic. Both of them viewed bureaucracy
ruled by the spirit of capitalism. as destructive to society (it reduces
But the government can use different innovation and creativity, deepens
methods in its attempt to limit the profit of a compliance and obedience, destroys
free acting company: imposing a limit on consumer-producer communication, and
profit (the excess profit is to be given to leads to waste as a result of resources
authorities, or shared among employees), misallocation), yet continually expanding.
imposing the price or a limit on the price of Though throughout his Bureaucracy there is
the company’s goods or services, or setting no reference to Max Weber, Mises’
high rates of taxes on the company’s profit. discussion complements Weber’s and
What comes out of these situations is the fact improves upon it.
that the company is no longer interested in
increasing its profit, in cutting down costs 5. References
and improving efficiency. [6]
Any interference of the government in the [1] Beetham, D., Birocratia, Editura DU Style,
business of a company translates into Bucuresti, 1998.
disastrous consequences – they paralyze [2] Borlandi, M., Boudon, R., Cherkaoui M.,
initiative and give way to bureaucracy. Valade, B., Dictionar al gindirii sociologice,
Polirom, Bucuresti, 2009.
In the 19th century, for example, in the
[3] Bremond, J., Geledan, A., Dictionnaire
heyday of European liberalism, the boards of economique et social, Hatier, Paris, 1990.
directors used to include pairs, former [4] Echaudemaison, C.-D., Dictionar de
ministries and generals, government officials, economie si stiinte sociale, Niculescu,
secretaries of state and councilors, Bucuresti, 2012.
politicians, or relatives of theirs, who had no [5] Jessua, C., Labrousse, C., Vitry, D.,
business skills or experience but who ensured Gaumont, D., Jones, C.D., Dictionar de
a smooth relationship with the government stiinte economice, Editura Arc, Bucuresti,
and with political parties. They had no 2006.
concern about the prosperity of the company [6] Kornai, J., The Socialist System. The Political
Economy of Communism, Princeton
and, being used to bureaucratic management,
University Press, Princeton, New Jersey,
they altered the company’s management. 1992.
They were not interested in producing better [7] Miller, D., Enciclopedia Blackwell a gindirii
quality and cheaper goods, but rather in politice, Humanitas, Bucuresti, 2000.
getting government contracts and other [8] Mises, von L., Birocratia si imposibilitatea
favors as well as tax protection in exchange planificarii rationale in regim socialist,
for contributions to the political parties’ Institutul Ludwig von Mises-Romania, 2006.
funds and for positions given to persons [9] Mises, von L., Bureaucracy,
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http://mises.org/etexts/mises/bureaucracy.asp
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Cosma Sorinel
„Ovidius” University Constanta
sorinelcosma@yahoo.fr
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Walras originally intended also to write For Walras, the justification for social
comprehensive treatises on social economics economics lies with the interest towards the
and on applied economics, but lack of time study fields – economic agents, state, market,
and bad health stood in the way of that plan. money. [4]
He presented instead two collections of his
main publications on the subjects under the 2. The individual, the state and society
titles Études d’économie sociale (1896) and
Études d’économie politique appliquée In building his social system, Walras
(1898). identified four elements: the individual, the
In his Études d’économie sociale (1896), state, the general social conditions, and the
in which he applied economic theory to real particular personal positions. He also
problems, he presented the essence of his identifies a series of questions: when does the
normative economic ideas and revealed individual have to act by himself and when
himself to have also been a great thinker on does he or she act as part of the state? When
human nature, justice, mores, and the and how can it be determined if the gain is
structure of scientific inquiry and knowledge. individual or belongs to everybody? Should
Études d'économie sociale deals primarily the forest belong to the most skilled hunter or
with distribution considered from a to the entire tribe, community, or group? The
normative standpoint. answer to the first question lies with the
Walras started his career as an economist conciliation between the individual’s
in 1860, by publishing L’Économie politique freedom and the authority of the state. The
et de la justice (The Political Economy and answer to the second question lies with the
Justice). He was only 26 years old at that juxtaposition of equity between conditions
time. This book was intended to criticize inside society and between individual
Proudhon and to show his own plan of positions.
scientific socialism by showing how the As Rugină noted, the social order
theory of property and that of exchange are envisioned by Walras theoretically represents
related, which suggests the future definition a synthesis between the rights and obligations
of his pure and social economics. of the individual on the one side and of the
He brought forth a number of social state on the other side, with respect to
questions related to wealth and poverty in economic and social matters. In any civilized
society. For him, poverty does logically society one cannot exist without the other. [5]
results from laziness, stupidity or the reverse The starting point in Walras’ analysis is
of good luck. There does not exist any other the fact that nature has given the land to all of
sort of wealth than that legitimately acquired us and personal skills to each one. In terms of
by work, talent or success and proportional to natural rights, personal skills and abilities
these causes. (those we are born with and also those we
As Anghel Rugină pointed out, he drew a develop by training and education) are the
clear distinction between involuntary poverty natural right of the individual, whereas land
produced by the social system and poverty is the natural right of the state. Being the
produced by individual deficiency. In the owner of his personal skills and abilities, the
spirit of social justice, Walras made a individual will also be the owner of his work,
distinction between property legitimately wages and the goods bought with his money.
acquired by work, talent or success, and He will work when and how he will please
illegitimate property acquired by deception, and will have a standard of living according
fraud, chance or corruption. [5] to his income and to his saving habits. Also,
In this book, Walras cited his father’s let us not forget that the ability to make
conclusive remarks in De la nature de la efforts is unequally distributed among
richesse (1831) on the inequality caused by individuals. Since the individual is the sole
the increase in rent and land price in a owner of his skills and abilities (acquired by
progressive society. Based on this idea, Léon birth or by personal efforts) and of what these
Walras showed more clearly his plan for the skills and abilities can produce, for Weber,
nationalization of land when he participated taxes on wages are unjust. [8]
in a congress on taxation held in Lausanne in The distinction between individual moral
July 1860. and social moral springs from the distinction
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By the nationalization of land and the society. Leon Walras depicted a social
abolition of taxes Walras believed that his system based on liberty, freedom, justice, and
ultimate goal – the realization of his double equity. In the distribution of social wealth, he
concept of justice of equality and inequality stated that there must be a part made
by preserving complete individual freedoms available to the community at the same time
– would be achieved. as a part made available to private ownership.
The starting point for his ideas was his In his theory of property, Walras assigned
view on private property: a person’s property land and rent to the state after assigning
on a good gives the person the right to use personal faculties and wages to the
that good to satisfy a need, even if it means individual.
consuming the good. Therefore, the owner of He also made it clear that there is a social
the good also owns the service provided by morality which is distinct from individual
that good and the price generated by the morality. As a consequence, to Walras,
good. As far as land is concerned, all people society cannot be viewed as the sum of
are moral persons and have to equally profit individuals motivated solely by economic
from the natural resources that are available. rationality.
And this is applicable in the benefit of the For Walras, the state is a legitimate part of
state, in the name of commutative justice. An society. This inclusion in society should be
equitable division of land among the rewarded by land ownership and land-rent
members of the society would not be a right should be its only source of income. In his
solution as it would be detrimental to future view, government expenditure could be
generations. Land must be collectively entirely financed by land rent, which
owned by society in a stable and continuous translates into land owned by the society and
manner. He goes even further and speaks of not by individuals. And, if land rent is the
optimal allocation in dividing and using the sole source of state revenue, it may also
land. And this comes as a response to replace taxation. Therefore, Walras called for
considerations related to justice. But how tax reform. Taxes are unjust in the sense that
does the state become the owner of the land? they are a consequence of the opposition
By simply taking away the land from its between the state and the market.
owners? This would be totally against the
liberal principles. Or by repaying the 7. Bibliography
owners? This would bring no advantage to
the state whatsoever. [1] Boncoeur, J., Thouement, H., Histoire
Once the state becomes owner of the land, des idees economiques de Walras aux
it must not administer/manage it. contemporains, Armand Colin, 2004.
Walras questioned the legitimacy of taxes, [2] Jacoud, G., Tournier, E., Les grands
both proportional and progressive taxes. auteurs de l’economie, Hatier, 1998.
They go against the principle of justice, they [3] Jolink, A., Evolutionist Economics of
deprive individuals of part of their revenues Leon Walras, Routledge, London, 2006
and prevent them from reaching their ideal. (http://books.google.ro).
Walras was totally against income tax, which [4] Rouge-Pullon, C., Introduction a
he thought violates both social interest and l’oeuvre de Walras, Ellipses, 1996.
social justice. [5] [5] Rugină, A., Toward a Third Revolution
The third stage or step, beside in Social Economics. The Pathbreaking
nationalization of lands and removal of taxes, Role of Walras,
would be to let the economy function by http://digilib.lib.unipi.gr/spoudai/bitstrea
itself under the superior rule of competition m/spoudai/491/1/t37_n3_514to563.pdf .
as soon as the land has been nationalized and [6] Schumpeter, J. A., Zece mari economisti.
taxation has been abolished. [3] De la Marx la Keynes, Publica,
Bucuresti, 2010.
[7] Walras, L., Etudes d’economie sociale
6. Conclusions (Theorie de la repartition de la richesse
sociale), Librairie de l’Universite, P.
Walrasian social economics are built Pichon R. Auzias et R. Auzias, Laussane-
around the individual, the state and the Paris, 1936.
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The external migration of people is not For as long as Homo sapiens have existed,
limited only to geographic movement; it is the members of this species have migrated in
also a much more complex process, which search of food, shelter, or to run from
brings up for discussion more items. disasters or conflicts. Population movements
The changes caused by migration in its were a frequent phenomenon during each
various forms (internal and external) impact historic period, all of them having in
on the economic, political, social and common the migration’s phenomenon. All
cultural life. these movements were related to searching
They occur both at the place of origin, for a better way of life, or to conquering new
from where the potential migrants would territories – the barbarian invasions in the
leave, as well as at the destination, where middle Ages. [1]
they finally settle. Roberto Merlo in his work „Italian
literature of Romanian migration – guideline
Key words: emigrant, economic costs, and analysis” considers that „migration, by
identity, migration nature, goes beyond the political, cultural,
J.E.L.Classification:F22–International linguistic and national barrier, and the
migration literature of migration is written in a national
language, which is not always free of
difficulty and misunderstanding, if we relate
1. Introduction to national literatures and their languages. ”
[2]
In a vast specialty literature, migration is Through the years, the migration
treated as a movement, more or less phenomenon came to the attention of not
organized, of a group of persons, moving on only the economists, but especially the
a certain territory or area of a country. This sociologists, which have studied the problem
extremely controversial issue, the intensity of of migration. The foreign immigrant, in
the migration’s phenomenon, has become, in Antonio Perotti’s opinion, may be defined
my opinion, in the last decades, a „delicate” through his past, present and future. The
issue, being often treated superficially or author thinks that the immigrant may identify
theoretically. himself to his past, present and future. [3]
The main economic and social causes of Antonio Perotti considers that the
this phenomenon are often debated, as well immigrant, through his past, feels like he has
as the positive or negative impact on the no „roots”, arriving in a new country, facing
countries involved. On the other side, the a new culture. At this step he feels like a
financial and social costs that leverage on the stranger in a new world, having a past of his
immigrants in the destination country are own, a stranger in his adoptive country.
rarely discussed.
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In this situation, the reasons and main and areas in the origin country of the
causes (economic, political, and social) that emigrant.
determined his migrations play a secondary The over saturation of the labor force
role. market in a certain sector, well developed
Through his present, „he is newly- and with a real economic potential, may be
settled”, resident for a certain period of time seen as an aggressive phenomenon by the
in a new country. In this phase, his interests native population of the origin country of the
come first and competes with the ones of the immigrant.
host-population, having common and even At individual level, there are positive
similar interests with the local community phenomenons that lead, in time, to an
from which he is now part of, even sharing increase in the living conditions of contempt
the same interests with other foreign and the feeling of certainty regarding the
immigrants living in the same country as he workplace, but, at the same time, there are a
does. series of negative phenomena regarding the
Through his future, his „temporary” relation of the immigrant with the group in
situation will gradually change in time, so the host country.
that, in the end, he will be totally integrated Dudley Baines tries to find an explanation
in the new population, as a consequence of for the dimension of the migration’s
socializing and cultural and linguistic phenomenon, and reaches to the conclusion
integration. In this phase, his personality that emigrants choose to migrate taking into
changes radically, taking on fully and consideration certain characteristics of their
completely customs from the host country. country. The author considers that we may
For some immigrants, this phase is similar to talk about a so called selection of the
ignoring their own and their parents’ origin. migration’s phenomenon, which takes place
Migration leads to a good living for the and forms according to the age and gender of
people taking this decision, being preceded the migrants. [5]
by the need of adventure and the curiosity of Regardless of the age or gender of the
the young people, eager to discover new migrant, now, as it was 200 years ago, the
horizons and new parts of the world. This main causes at the base of the migrating
may be considered to be a reason for decision are economic and social in the host
mobility: the mobility of human resources as country.
a part of the development of the human The status of the immigrant when he takes
capital [4]. the decision to migrate is unclear. By the
nature and dimension of the phenomenon, the
3. The determinant factors of the external migrant is faced with, maybe, the biggest and
migration the most important experience in his life.
One of the most important factors 4. The Romanian emigrant in the current
triggering the migration process is the global context – „Finding the identity,
economic and global context, meaning the again”
economic crisis and the economic recession
many countries are going through. If people migrate under serious political
The economic cause gives migration a and economical constraints, such as the
real, current meaning, also the most refugee emigrant, the migration would be, for
important at the base of the migration the possible migrant, an option known as „the
decision. worst one”, which may involve a real
From the political, social, xenophobic and decrease in the good-being and the capacities
religious point of view, people leave an area of the pre-refugee. [6]
where they feel oppressed or unsafe. The main determinant factors worldwide
At macro economical level, migration generating the migration are: economic
leads in time to the destabilization of the climate, together with the population increase
labor force market, either through creating a in the migrant’s country, and sometimes,
surplus of supply in some areas in the host with armed conflicts, religious persecution
country, and also a deficit in some sectors and xenophobic attacks.
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The intention to migrate or to stay home The Romanian citizen has a strong
is influenced by a series of factors: language, motivation for migration: poverty in certain
cultural barriers, personal opinions of the areas of the country, low income, the lack of
potential emigrant on changing the location, real professional opportunities, low living
leaving the family and friends, changing the conditions for some part of the population;
country and birth place. all these lead to the intensification of
Trans nationalization of the „migrants’ migration.
life” led to the identification of models for Most of the Romanians left the country in
the assimilation of migrants. It is more and order to significantly improve the financial
more difficult to determine a clear distinction situation of the persons left behind at home,
between the two already traditional terms in and the same time, to have a decent living.
the specialty literature: „origin” and The choice of remaining in the Western
„destination”, or between other terms, highly countries in full economic recession or to
used: „temporary”, „permanent” and return home to increase the number of
„returning”, because the migrants’ life is unemployed becomes a real issue for the
characterized by circulation and simultaneous Romanian migrant, who is now hopeless, in a
commitment between two or more societies completely foreign country.
(communities) they are part of [7] Working abroad is most of the times a
Romania, after 1989 lived the migration’s temporary strategy, many Romanians, as well
phenomenon in various phases and forms, as other migrants, not having any other
our country being a supplier of cheap labor choice. They have to take on such a strategy
force for the countries in Southern Europe: – compromise, for themselves and their
Italy, Spain, Portugal and Greece. families.
Because of the fact that many Romanians Many of the Romanians that leave to
transited these countries in the last twenty work and cross the border for the first time,
years, we may say that the Romanian and who bring with them the children,
migrant, once arrived in the destination relatives, friends, start „colonies”, which turn
country, „takes on” many profiles or into diasporas, causing a real clash of
personalities, depending on the destination civilizations and assimilation of a new
place. culture, traditions and customs.
Sociological studies on groups of The countries in Western Europe have
migrants showed that there is a migration become so far a multi-ethnic environment,
culture, in which communication between the having important communities of non-
undecided, the ones staying at home, and the European immigrants.
group of migrants is very important. Never the less, EU was the promoter of
In time, the undecided will become more such an „experiment”, being a multicultural
determined to migrate to other countries, this and multi-religious entity, from the very
proving that the simple contact between the beginning.
one staying home and the migrant returning Furthermore, the idea of „citizenship” and
home is sometimes vital in taking some „national identity” are renegotiated in the
decisions regarding the future of the potential mutual language of the actors involved in the
migrant and his family. migration process, as a normal reaction to the
Romania is not just a gate from East to contemporary models of migration.
West (such as Portugal, Spain and Italy –
gates for South-North), our country being 5. Expenses of the migrant abroad
considered a heterogeneous labor market,
which needs qualified workers, and maybe The socio-economical determinants
less qualified in various domains. generate a series of factors that contribute to
Romania is more prone to migrating than increasing the labor force mobility.
other countries in the EU, considering the The most important are: labor force
defective labor force market, significant market segmentation, the need for much
discrepancies in wages, several shortcomings higher salaries, regional (country, continent)
and a rather high unemployment in certain demographic changes, liberalization of the
regions of the country. economic and labor force market, the
development of multinational companies and
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foreign investors which generate jobs, and All these lead to the increase of the social
last but not least, the development of the discrepancies between the ones that stay at
commercial exchanges between states and home and the ones that leave.
regional infrastructure. According to Costea Moarcăș Claudia, the
On the other hand, the financial and social intensity of the migration’s phenomenon is
costs cannot be overlooked, these costs being seen as a result, a main feature, but also as a
paid by the main actors of this process: the necessity of globalization, talking mainly
foreign migrants arriving from different about „different languages between
corners of the world, in much more attractive developed countries – developing countries –
countries, from an economic and social point poor countries”, about a true „exchange or
of view, hoping for a better life. globalization of competences” for the
The financial costs paid by the migrants mobility of employees in the developed
include: decrease of the migrants’ savings, countries, because of the rather similar high
taking a job completely out of their study economic level, the desire to migrate in order
range, some migrants are forced to constantly to earn more doesn’t exist. There is a
move from one place to another, since they replacing flow, consisting of foreign
don’t find a job in a certain region, this migrants. [8].
generating extra costs and additional There is also a real „exodus or export of
expenses, immigrants are paid much less than competences”, specific for a long term or
the normal wage for the job, most of the permanent migration, without any
time, employers take advantage of their compensation by comeback, to earn much
migrant status and give them much lower more and to balance the national budget,
wages than the official level of the market, training human resources (specific for
foreign migrants are often forced to pay developing countries.) [9]
taxes, higher than the ones paid by the local The economic crisis in the latest years has
population, most of the times the migrant affected all the EU member states, having
work without legal forms in the host country. political, economical financial and social
The social costs paid by the migrants are consequences, but especially on labor force
also considerable: the feeling of frustration, migration between countries.
of not being able to fulfill their goals in their It is well known and proved that during
own country and to be forced to work in a economic growth, migration has also positive
domain completely different than the one effects, for both the origin and host countries.
they specialized in. Making friends within But either we are in a new economic crisis or
the local population is hard. in strong recession, the Romanian is still
This thing is mainly generated by the willing to leave to work abroad, being ready
negative image that the local population has to leave home the „Romanian dream” and to
about immigrants, from local and embrace „the European dream”
international media. The Romanian is willing to „reluctantly
In time, many migrants who are away leave at home the family, relatives, children,
from their families and their loved ones fall but, at the same time, he leaves behind a
sick with certain diseases, depression, mental much darker social aspect: poverty,
or heart illness being some of the most unemployment, corruption, red tape, and his
common ones. Many migrants feel own inability to perform, all these things do
discriminated at their job, and so do their nothing but determine the fate of the
children studying in the schools in the Romanian migrant.
destination country. „The migrant is a man between worlds, he
The racism and xenophobia accentuate the has needs and life strategies he strives to
personality of the migrant changes in time, achieve by working abroad, and at the same
along with his perception on his family or his time he is a man that tries to keep or increase
own country. Most of the times, because of his quality and name.” [10]
the significant income in the destination
country, migrants are often seen by the 6. Conclusions
communities at home as being snob, new-
money people. Migration abroad, regardless the origin
country brigs up for discussion different
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Dimitriu Mihail
Centre for Financial and Monetary Research – Victor Slăvescu, Romanian Academy
dimitriu689@gmail.com
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means that at every moment of the analysis, Generally, it speaks about the seven sins
we have a certain "profile" of the of globalization and, in addition, about the
globalization process as a whole given the globalization of economy. They are:
composition profile of the process - Alienation. Leaders of the third world
phenomena (for example, nowadays, global believe that their destinies are determined by
warming phenomenon is specific to the forces of globalization and tsunamis hope
contemporary globalization, while in the 18th this turns into a beneficial force for
century, the phenomenon of industrialization reconstruction and development, not
was the most visible and effective destruction and destabilizing force
globalization). Also can be no question of threatening. Experience Africa seems to be
globalization (or a limited number) which the most frustrating, because it continues to
satisfies the lead in the overall process of be the most favoured part of the world due to
globalization. lack of economic cooperation within
Among the effects of globalization most globalization.
often mentioned in the literature mentions the - Selective action. Developing countries
following: say NO selective globalization, i.e.
- The particular challenges of global liberalization of trade, investment and
economic governance, "Interdependence financial flows was done in an accelerated
would cause when des-integration, that benefit only developed countries, while the
competing and conflicting regulatory momentum was reflected in a much weaker
agencies at different levels. Such a conflict intensity for products imported from
would weaken on global efficiency of public developing countries.
governance. "[17] - Marginalization. Most developing
- From multinationals to transnational countries consider that the only visible
companies: "The company will not rely on a consequence of globalization is their own
single major national location (as in the case marginalization. Marginalization is the
of multinationals), but will serve global situation that best describes countries outside
markets through global operations. Unlike the "current". Countries that can not keep up
multinational, transnational companies will with the rapid integration beg special
no longer be controlled or constrained by attention not to fall back into the abyss of
national policies of certain states. Rather, it poverty and decay.
will be subject only international regulatory - Return to colonialism. Interests of
standards imposed and agreed. National developing countries are confronted by a
governments could no longer take any series of international sanctions perceived as
effective regulation against these standards a return to colonialism. Colonialism returns
"[17]. as IMF, World Bank, other financial
- Continued decline in political influence institutions and economic cartels and when
and economic bargaining power of organized necessary even military alliances.
labour; Globalization reinforces economic
- Increasing multipolarity in the dependence, political and cultural.
international political system: "A number of - Imposition. Multiple options were
organizations, international non-profit completed and globalization brings dogma
agencies to transnational companies will gain "one size fits all forms." The Cold War and
more power at the expense of national the triumph of one party completely
governments and using the global markets eliminated tensions, but broke the balance,
and the media could call and obtain and now the world's countries will have to
legitimacy consumers / citizens. In this way choose one option. It will be an economic
distinct powers of national states will decline, and political system, the drawing of one
even if the majority of their citizens, dominant system.
especially in advanced countries will remain - Loss of national sovereignty. Shook the
attached nationally. In such a world national foundation's sovereignty and not due to
power would be less efficient and will not be objective reasons, but "due to the widespread
able to be used to achieve economic arbitrariness in international relations". It
objectives".[17] produces an erosion of sovereignty with
economic consequences, but also a reduction
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in the viability of institutions and social to maintain a stock of spare parts of dozens
stability. of products launched each year). However,
- Loss of identity. New cultural values of products that will have a long life (which is
globalization come with the system based on likely to need repair) will be made modular.
irrational consumption in rich countries. Thus, they, though they look different,
Globalization seems to cultural diversity according to fashion that year, will be built
"something old-fashioned." Globalization on the concept that will be kept for years.
could lead to a single civilization, - Valuation of high-tech products will tend
standardized according to Western culture. to grow at the expense of simple, basic. This
Global world as uniform and the variety will means that activities which include technical
disappear. progress in a lesser degree: as agriculture,
- Globalization of economy. In the new era animal husbandry, production of metals,
of globalization, the borders were opened, energy, fuel, etc. become increasingly less
trade barriers were removed, and information effective.
flows with unprecedented speed. "Turnover - More and more products will encompass
of transnational companies and cross-border intelligence technology. Mobile
criminal organizations explodes. Colossal communications systems, micro-computers,
fortunes are often the result of drug multimedia systems will be incorporated into
trafficking and arms smuggling, prostitution, household products, in cars, in toys, etc.
money laundering, all under the umbrella of Future products will be almost entirely
corruption. Their opportunities to exploit the automated, robotic, so that physical work will
system they have never been so high because be slowly replaced. On the other hand, the
the world market was liberalized before amount of knowledge necessary for people to
creating global institutions needed to control be able to function normally in society will
and supervision."[5] increase considerably.
- Latest trend of the information society is
3. Trends in development of firms and the idea of "communication" between
knowledge society different products. Example would be smart
house that will automatically create living
The economy of the future, mutations will conditions by human presence.
be much bigger than we can imagine at first And the companies will show many
glance. New types of electronic changes:
communication could be used as a platform - Due to competition from increasingly
for expression for political organizations, powerful conglomerates will form big
social and cultural. In the knowledge international companies? They will share the
economy, the product, many changes will risk identification, production and launching
occur: new technologies. Strategic partnerships
- Shorten the life of the product. To be between these large companies will make to
competitive, companies are forced to local small firms being disadvantaged against
constantly launch new products into the subsidiaries of multinational corporations.
market. This means that the cycle "concept, Competition will move from the local market
production, presentation, abandonment 'is at a much higher level landing at the
increasingly restricted. There are clear international level. To reduce costs,
benefits in attracting companies that can multinational companies have already begun
promote new technologies, strong companies moving production activities in poor areas,
that can support complex research programs. where labour is cheap. They were kept in
The products will be cheaper and more technologically advanced countries only
competitive. Their quality will be better, and conception and design activities. In this way
life will be determined by the design (not the they spread their branches in different
materials used). Limiting the lifetime of the countries, using local opportunities in terms
product means abandoning the idea of of information resources, natural, human, and
repairing and replacing it with the concept of legal, to obtain a competitive advantage.
reliability. This means that the products will - In the future, companies will become less
be guaranteed to withstand a certain period of and less contoured organization. The
time without repairs (because it is impossible organizational structure will change from one
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pyramid to one network type. From this point (controlled!) of material, labour, energy and
of view, the future will resemble firms information with the environment.
increasingly less with the current company. Any "membrane" defined in this way
They may have no headquarters, do not must be permeable enough to be able to
possess a certain nationality, and employees exchange from and to the environment, but
do not even know each other. Thanks to the only within certain limits.
information revolution, most transactions This includes: - a flow transfer - transfer
will be conducted on-line, business meetings channel - receiver to be part of the interface
can be replaced with video conferencing and (membrane) and the entity receiving direct
some employers will even be able to work connection with the transfer channel
from their own home at a terminal connected (external receiver) - a receiver to be part
via the Internet to a fixed "virtual" . interface (membrane) emitting entity which
- On the other hand, multinational firms is directly related to the internal environment
will seek to eliminate their structure those of the company (internal receiver) - a
activities they become unprofitable. As the transmitter which is also part of the interface
passage of time and increased (membrane) emitting entity which is directly
decentralization consortia will become more related to the transfer channel (external
"brand" than what is now known companies. transmitter) - a transmitter which is also part
In other words they will be organizations that of the interface (membrane) emitting entity
will produce goods to "mark" a certain which is directly related to the company's
quality, and the vast majority of business internal emitters (national broadcaster).
activities, from conception, promotion, The flow of transfer is carried out
bringing to market products will be continuously or periodically, and with certain
subcontracted. amplitude. Transfer channel can be potential
- The companies will develop more and or active, its activation is achieved when one
more electronic commerce (e-commerce) in a of the two ends of the channel and emits a
virtual space with its own rules of stream at the other end, a receiver interface
procedures. supports the feed (feed material, energy or
- It will develop new types of interfaces informational).
between the companies, people and artefacts Permeability is the fundamental property
evolved in society, so that the information is of the interface that allows the transfer flows
"merchandise" the most important in society. from transmission channel in the internal
In this context, we believe that means (at environment of the company.
least in the current phase of development of It is obvious that if closed systems, the
concepts) for changing relationships between permeability is zero, but if we can say that
companies in a continuously changing the open system tends towards a maximum
environment, it is a special interface, an permeability? We think not, because the
intelligent membrane included in the interface by its mode of organization and
organizational structure of the company. operation does not allow maximizing
permeability.
4. The concept of interface - tool control at If maximum permeability as we have two
the micro level extreme cases:
- Owned by the company would end up
Any input or output is noticed first being the same as the emitting entities;
company interface with its environment. [10] - Destroys the internal structure of the
In the context of open systems, the interface company and the entity receiving it
transfers made of matter, energy, information disappears.
between the environment and business In both cases, no longer make a transfer
components with a role similar to the cell and permeability referential disappears.
membrane. In general permeability P can be
In the context of this paper, this expressed as:
"membrane" is all the means, tools, Pm = f(∑Ft, ∑Fi, N, O, G)
techniques, mechanisms and procedures by where:
which the company can make a transfer - ∑Ft - cost for accepting a flow of a
certain frequency transfer
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- ∑Fi - the cost of accepting the transfer flow type shock moves forward, there is a
flow (and the type of feed) for a certain change in internal organization of the firm
amount of itself.
- N - cost "technology" for the Transferring a shock through all these
construction or maintenance interface "steps" - transmitter, transmission channel,
architecture the initial receiver of the company, working
- A - The cost for providing a with the interface, the transfer to the
predetermined degree of organization of the company's internal environment and
interface changing organizational status is a certain
- G - the cost of providing a pre-absorption erosion of the "quality" of shock.
capacity of the internal environment of the This erosion that is carried out in a
company. suitable time frame, the receiving entity may
It is very important for the survival of the be beneficial for the purposes of proper
firm's internal organization of the interface to adjustment.
allow a transfer so as to ensure the
functioning of the parameters set according 5. Conclusions
to company strategy, plans and tactics
adopted. This paper tried to add some views on
Shock may occur when: how certain specific concepts dynamic
- Transfer flow exceeds the capacity of the approach to business firms may alter the
channel and then transfer lock can be turned methodological level. One of the biggest
in shock to the issuer; obstacles reported by several authors [14,32]
- Transfer the flow exceeds the capacity of is the requirement to gather a large amount of
the receiver; data to characterize the dynamic system (as it
- Transfer flow is changed or turned off can be considered a company). Taking them
during transfer, because the issuer or change is very often hampered by the lack of
channel transfers properties. appropriate measurement tools for dynamic
- Transfer flow is blocked inside the variables, the excessive prolongation of the
interface, although it has a utility company's duration of the research, the reactions that
internal environment. may occur in some cases the subjects to
- Transfer flow past the interface and repeat a task request a number of times
blocks the organizing company's internal (decreased motivation or fatigue,
environment. abandonment).
From the point of view of the firm, shocks Our research is at the beginning, but what
occur when flows exceed certain we do believe that efforts in recent years to
predetermined limits transfer of entity sets integrate the concept of interface in economic
(or transmitters) and its impact on the theory will lead to proper management of
organization. firms in an unpredictable future.
It should be noted that the organization
must be seen in two ways: 6. References
- The internal organization of the firm in
general [1] Abraham, F.G., “Economie politica”,
- The internal organization of the Editura Humanitas, Bucureşti, 1997
interface. Usually overlooks the fact that an [2] Atkins, P., “Amprenta lui Galileo. Cele 10
interface is organized in a certain manner, mari idei ale știinţei”, Editura ALL,
including items, relationships, actions, Bucureşti, 2008
processes, mechanisms and right is carried [3] Baker, M. J., “Marketing Strategy and
Management”, Palgrave Macmillan, New
out, but all are more or less noticeable York, 2007
depending on the size of the interface and / or [4] Baldwin, R.E., Martin, Ph., “Two Waves of
company. Globalization: Superficial Similarities,
In this vision with shocks occurring on the Fundamental Differences”, NBER Working
interface can transfer to the internal Paper, Series 6904, January 1999
environment of the company or be stopped [5] Bari, I., “Probleme globale contemporane”,
with the interface and have a change in the Editura Economică, Bucureşti, 2003
organization of the interface, and then if the
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[6] Baye, M. R., “Managerial economics and [24] Korten, D.C. “Corporațiile conduc lumea”,
business strategy”, 7th Edition, Mc.Graw- Editura Antet, Oradea, 1997
Hill, 2010 [25] Kotler, Ph., “10 păcate capitale de
[7] Blackburn, W. “The Sustainablity marketing. Semne şi soluţii”, Editura
Handbook”, Earthscan, 2007 Codecs, Bucureşti, 2004
[8] Chesnais, F. “La mondialisation du capital”, [26] Lipsey, R.G., “Economia pozitivă”, Editura
Syros, Paris, 1994 Economică, Bucureşti, 1999
[9] Cordellier, S. (coord.), “Mondializarea [27] Lynch, Richard, “Corporate strategy”,
dincolo de mituri”, Editura Trei, Bucureşti, Prentice Hall, Boston, 4th Edition, 2006
colectia Ideea Europeană, 2001 [28] Marin, D. “Globalizarea si aproximarile ei”,
[10] Dimitriu, M., (coord.), “Șocuri entropice și Editura Economică, Bucureşti, 2004
dezvoltarea sustenabilă la nivel [29] Martin, H.P., Schumann, H., “Capcana
microeconomic”, Editura Tehnopress, Iași, globalizării”, Editura Economică, Bucureşti,
2012 ediția a doua, 1999
[11] Dunning, J.H., Hamdani, K.A. (eds.): “The [30] McDonald, M., “Marketing Plans. How to
New Globalism and Developing Countries”, prepare them, how to use them”, Elsevier
United Nations University Press, New York, Linacre House, Jordan Hill, Burlington,
1997 USA, 6th Edition, 2007
[12] Drucker, F.P., “Despre decizie și [31] Mehra, B., Merkel, C., Bishop, A.P., “The
eficacitate”, Editura Meteor Press, Internet for empowerment of minority and
Bucureşti, 2007 marginalized users”, New Media and
[13] Drucker, F.P., “Management strategic”, Society, Chicago, 2004
Editura Teora, Bucureşti, 2001 [32] Molnar, M., “Brain complexity as revealed
[14] French, R. M., Thomas E., “The Dynamical by non-linear and linear electrophysiology”,
Hypothesis: One Battle Behind”, The International Journal of Psychophysiology,
Behaviour and Brain Sciences, Cambridge, 34, 1999, pp. 1–3
21(5), 1998, pp.640–641 [33] Popescu, Gheorghe, “Evoluția gândirii
[15] Georgescu-Roegen, N., “Legea entropiei şi economice”, Editura George Bariţiu, Cluj-
procesul economic”, Editura Politică, Napoca, ediţia a doua, 2001
Bucureşti, 1979 [34] Postelnicu, Gh., Postelnicu C. “Globalizarea
[16] Glăvan, B., “Împotriva curentului. Însemnări economiei”, Editura Economică, Bucureşti,
despre criza financiară actuală”, Editura 2000
Universul Juridic, Bucureşti, 2009 [35] Ridderstrale, J., Nordstrom, K., “Funky
[17] Goldsmith, S., Samson, D., “Sustainable Business”, Editura Publica, București, 2007
development and business success – [36] Rugină, Anghel, “Fundamentele noi şi vechi
reaching beyond the rhetoric to superior ale analizei economice”, Editura Academiei
performance”, Australian Business Române, Bucureşti, 1993
Foundation, University of Melbourne, 2005 [37] Stiglitz, J.E., “Globalizarea. Speranțe și
[18] Hirst, P., Thomson, G., “Globalizarea sub deziluzii”, Editura Economică, Bucureşti,
semnul intrebarii. Economia internationala si 2003
posibilitati de guvernare”, Editura Trei, [38] Vernimmen, P., Quiry, P., Dallochio, M., Le
Bucureşti, ediția a patra, 2002 Fur, Y., Salvi, A., “Corporate Finance.
[19] Hunger, J.D., Wheelen, L.T., “Essentials of Theory and Practice”, John Wiley and Sons,
Strategic Management”, Prentice Hall, Ltd, Oxford, 2009
Boston, 5th Edition, 2011 [39] Waters, M., “Globalization”, Routledge,
[20] Ikuo, A., Hiroshi, O., “An entropy model for London, 1996
marketing structure analysis and price
decision of new brand”, University of Osaka
Prefecture, Sakai, Osaka 591, Japan, vol.33,
Issue 2, 2006, pp. 251-260
[21] Jinling, Li, Renjing, Liu, Shanshan, Sheng,
“The Implication of Dissipative Structure
Theory to Enterprise Information System”,
Springer Boston, Boston, Vol. 205, 2006,
pp.705-710
[22] Keynes, J.M., “Teoria generală a folosirii
mâinii de lucru, a dobânzii şi a banilor”,
Editura Ştiinţifică, Bucureşti, 1970
[23] Knight, F.H., “Risk, uncertainty and profit”,
University of Chicago Press, Chicago, 1985
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2. Literature review
Keywords: R, SAS, SPSS, statistical
software, statistical analysis, variable In the last few years, the literature became
selection wide as regards the statistical software; also
Clasificare J.E.L.: C46, C81, C82, C87 regarding comparisons between the most
commonly used statistical software: SAS,
SPSS, R, Stata, Matlab, Statistica.
1. Introduction The technical report “Strategically using
General Purpose Statistics Packages: A Look
The use of data analysis tools in at Stata, SAS and SPSS” [5] draws a parallel
companies and especially in official statistics between SAS, SPSS and Stata. There is also
offices has a high inertia to change, often a section dedicated to R where it is
because of the high aversion to change characterized as hard to learn.
caused by the use of commercial software A real valuable study is “R for SAS and
generally with a predictable cost. SPSS users” [8] because it presents in a
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comprehensive and captivating way the use one of the biggest giant of databases: Oracle
of R for users of SPSS and SAS; the book through Oracle R Enterprise [12].
could be a real useful “translator” kit. R offers the freedom to use for teaching
Also, for the ones who want to migrate real-world examples from outside
from other statistical software to R and need organizations, which is forbidden to
further assistance, there is a special website academics by SAS and SPSS licenses (it
[17]. Anyway, R stands in a continuous benefits those organizations, so the vendors
develop and release at academic level, say they should have their own software
growing list of print books and e-books. license). R also gives many opportunities to
the open-minded people that use it. The
3. The advantages of R contribution users have to R is a real value-
added for the software itself as well as for the
While SAS and SPSS have many things in contributors.
common, R is different. It is a software with The wide area of use - statistics,
personality. journalism, mapping, finance, forecasting,
First of all, it is open-source, the cost of social networking, computational biology
using it being related only with the training and many more – makes R a common
of users. Also, its numerous GUIs, IDEs and language for all the researchers and data
packages are freeware. R is working on analysts.
various operating systems: Windows, Linux,
Mac OSX and it is easy to install and 4. Variable selection for stepwise
configure. regression in R
The fantastic useRs community grows
continuously. The users of R have a very 4.1. Conceptual framework
enthusiastic behaviour and they consider the
knowledge exchange a real challenge. The When a multiple regression analysis has a
user support is based on a very active mailing large number of explanatory variables
list, blogs and dedicated forums. (exploratory studies) it is not feasible to fit all
R is used for statistical analysis, data possible models so it is more efficient to use
manipulation, visualization and exciting the variable selection method. Hence, if we
applications in various fields like: statistics, do not know in advance what variables to be
economy, financial, business, genetics, included in the model could be applied two
engineering, biology and many more. algorithms (regression step): forward
One of its big advantages is the linkage stepwise regression and backward stepwise
with the way statisticians think and work regression.
(e.g.: keeping the track of missing values). In case of forward stepwise regression, all
It bears Excel integration via RExcel; the predictor variables are added one by one
SPSS has not this issue available. Other big in the model and are correlated with the
easement is the use of mix-and-match models variable of interest. The variable that has the
for best results and re-use and reproduce new highest correlation is introduced first in the
discovered techniques on analytic operations equation. The next variable which is
that the user is going to perform – this is introduced into the equation has the highest
difficult in SAS or SPSS. R functions can correlation, after being eliminated earlier
nest inside one another, creating nearly variable effect. The process continues until
infinite combinations of output, in this way it the predictor variables contribution is too
gives the warranty for the best result. small to be considered. At backward stepwise
Also, R could be a threat for Geographic regression, all predictive variables are
Information Systems (GIS) because it has introduced into the model, being successively
great and competitive tools for a wide variety removed (in case they do not have a
of map functions and projections. Also, R has significant contribution).
interactive motion graphs and charts [11];
SPSS has not this feature available. 4.2. Description of dataset and R
R supports connection with the main procedures
commercial software, such as: SPSS, SAS,
Matlab and Statistica. It is also integrated in We considered a dataset with 18
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exhaustive selection algorithm concerning Currently fighting with the three giants of
the statistical significance of each variable. the statistical computing – SAS, SPSS and
Below it is performed a plotting of a table of Stata, R is in a continuous release and
models showing variables in each model. The
upgrade of its components. Some experts [7]
models are ordered by the selection statistic.
> plot(leaps,scale="r2") have already forecasted that year 2015 will
It gives rise to the output in the Figure 2. be the beginning of the end for SAS and
SPSS. According to the latest data [6], there
Figure 2. Plot table of models showing are 6,275 R packages in all major
variables in each model repositories, 4,315 of which at CRAN.
6. Conclusions
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Trademarks
RStudio, Revolution R, SAS, SAS
Enterprinse Miner, IBM SPSS Modeler, IBM
SPSS Statistics, Stata, Statistica, Matlab,
Minitab and EViews are registered
trademarks of their respective companies.
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Gheorghiu Gabriela
„Ovidius” University of Constanta, Faculty of Economic Sciences
gabrielag3110@yahoo.com
Fronea Ciprian Mihail
Financial Guard of Constanta
Brăiloiu Liviu
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fulfilled by the activities inclined to generate they are assured to some of them, they are
negative or positive externalities, on purpose assured to all and no one can be excluded
to prevent the production of eventual from using them.
imbalances within the market, starting from However, these concepts involve a
the principle “it is better to prevent than to profoundly theoretical characteristic and, as
repair”. Such an example would be safety James M. Buchanan also observed [7], while
conditions in consumption that a specific in daily life the characterization of some
product must fulfill in order to receive goods as purely private is obvious, the
marketing authorization. identification of some goods as purely public
This approach, also known by the name of is difficult, if not impossible to fulfill. More
demand and control, however involves exactly, in practice we find only the situation
certain deficiencies, such as: the of some public goods so-called “impure” or
impossibility of taking into consideration the „mixed”, these satisfying only one of the
entire variety of situations with which pure public goods, to which effect there can
economic agents directly involved may be made a distinction between club goods -
confront, and especially those who can be which, although non-rival, their access can be
indirectly involved; excessively high costs reserved only to certain categories of
generated by the political process which consumers (the case of television or radio
intervenes in the establishment of the broadcasting available only by means of a
respective regulations; low adjustment decoder for the decryption of TV and radio
rhythm of regulation process to the rapidity signals and without which anyone can be
of the innovation one which determines the excluded from providing those broadcasts)
permanent occurrence of new technologies. and common goods - which, although
Consequently, it is estimated that a much characterized by non-excludability, may be
better technology of encouraging the divided to a certain extent (the case of
behaviors society wants is represented by the communal natural resources, the most
adjustment of particular costs in order to take frequent examples to this effect being sea and
into account social costs, too, by levying ocean water, fishy resources etc.).
taxes in the case of negative externalities and Coming back to the idea that the problem
subsidizing in the case of positive raised by public goods can be assimilated to
externalities. Even this alternative is not the one which is characteristic to externalities
without problems, a clear identification being from the theoretical point of view,
difficult and especially the exact economists also applied in this situation
measurability of externalities in order to game theory, a different paradox unfolding
establish correctly the tax level, respectively to them, that of the “free riders”, which
the subsidy level which must not generate a appears as a consequence of non-
new imbalance within the market by levying excludability characteristic of public goods.
it. Thus, there will always be individuals who
will prefer to profit by the respective goods
3. Public goods freely, without contributing proportionally to
social effort (tax payment, the compliance
A particular case of a positive externality with certain limitations, the abstention from
which generates an imbalance within the certain actions) necessary to assure them.
market is represented by public goods. To Although morally (and sometimes even
this effect they can be defined, in opposition legally) condemnable, the “free rider”
to “public goods” – “public evils”, which alternative is the most rational, from the
generate negative externalities instead of individual point of view, because it
positive ones (for example the pollution or maximizes the initiator’s advantages.
the corruption of political class). Paradoxically, if it is adopted by several or
In Paul A. Samuelson’s classic approach each one of the members of a community,
[5] and Richard A. Musgrave’s [6], public this alternative leads to a non-rational
goods diverge from the particular ones by solution (disadvantageous) for all.
being non-rival, in the sense that they cannot Starting from this paradox of clandestine
be distributed to each one of them, being passenger, the bases of the theory advanced
communal, and non-excludable, because if by Mancur Olson with regard to the logic
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collective action were laid, which comes to private sector becomes if not disarmingly
refute the presumption according to which ineffective, being very expensive, even
persons with collective interests would impossible.
voluntarily act together, so that to promote Practical experience pointed out that,
this type of interests. What Olson puts forth worldwide, neither the state not the market
is the fact that, on the contrary, “unless the managed always to allow individuals the
number of individuals in a group is quite maintenance of a long term productive use of
small, or unless there is coercion on some public goods.[13,14] The solutions which
other special device to make individuals act functioned best were different from case to
in their common interest, rational, self- case, for the most part even the institutions in
interested individuals will not act to achieve charge with such categories of goods
their common or group interests” [author’s represented complex mixtures of institutions
underline].[8] In the argumentation of this analogous to the private and public ones.
point of view, Olson starts from the pre-
requisite that the person who cannot be 4. Natural monopoly
divested of the benefits supplied by a
collective good, once it was produced, is Bound up with the discussion with regard
divested of the motivation of willingly to public goods is the one concerning natural
involving in the production of the respective monopoly, respectively that situation in
good. which a producer can realize a specific series
An eloquent example to this effect is of goods and services to the lowest cost, in
represented by the collective action of a comparison with any other economic agent,
group of consumers, as it is the case of as a result of some scale economies. The
consumers’ independent associations, as a producer who lies in this situation has the
response to certain incorrect practices a “natural”, innate power to eliminate the
producer commits, an initiative in which competition and control sale price within the
certain consumers may decide not to market, which he will try to raise in order to
participate in, for example by means of some scale up profit. It is easy to understand that,
annual contributions paid to the respective under these conditions, those who suffer
associations and by the agency of which most are the consumers, whose choices are
these can finance such actions, but by whose fundamentally affected, the alternative at
results they can profit without being their disposal being an expensive one and, in
excluded. most cases, even a dissatisfactory one from
Maybe the most important concern with the qualitative point of view.
regard to public goods is connected to who Therefore, another market failure is
should be in charge with their production and produced, which, in order to be rectified, the
provision, a debate on which no unanimously strict supervision by governmental authorities
accepted point of view has been reached of economic operators’ activity who lie in
either in academic environments or in the such a situation and the exercise of a specific
political ones. For example, in the situation control on their price policy were invoked
in which rational consumers, in search of towards protecting consumers’ interests. On
maximizing their own interests, come to the contrary, when the best modality for
degrade the used commons, a situation recovering the allotment inefficiency lost by
defined by the collocation “the tragedy of the monopoly prices is represented by the
commons”[9], there are opinions which competition, governmental intervention is
indicate public authority as the best control required by deregulating the activities which
alternative on the majority of natural are characteristic to such natural monopolies,
resources, in order to impede their in the sense of guaranteeing market access
destruction.[10] for other competitors, which meet
At the counter pole we find opinions consumers’ demands with more diversified
which underline the necessity of ending the offers, and also better, both as to price, and as
joint ownership system, by starting a to quality.
privatization process of resource exploitation A particular discussion on these lines
[11,12], although, many times, the covers the so-called public services or the
production and provision of public goods by services of general economic interest –
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„Ovidius” University of Constanta, Faculty of Economic Sciences
gabrielag3110@yahoo.com
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Expected benefit
of search (EB)
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Considering the cost of search operation producers and the actions unfolded by them,
(C) that must be borne by the consumer, the which disclose information about them, but
optimal search strategy will be determined in especially with regard to the quality of their
terms of reservation price, corresponding to offer, which is not always reflected by means
that level of the benefit expected after the of the prices. As a matter of fact, the
search operation which allows the recovery information regarding the quality of the
of the expenses involved. Thus, when even traded products and services within the
consumer finds a price that is bellow or equal market is most difficult to be obtained by
to the reservation price, he must stop the consumers, reason for which it represents the
search and purchase the located good, as the main source of informational market failure.
cost of further search outweighs the expected On these lines, two types of asymmetries
benefit of search, although it is possible that were developed in economic theory, which
the price of the respective good is not the start from the pre-requisite according to
lowest possible. Similarly, when even which one of the participants in a transaction
consumer finds a higher price than the has at least a relevant piece of information in
reservation price, he should continue the comparison to his partner. To a certain
search operation, as the expected benefit extent, this is inevitable, because any
from further search exceeds its cost. individual normally knows much more things
In practice, the level of the expenses about himself than somebody else. In the
involved by information search process in model of adverse selection, one of the parties
which the consumer must commit himself in involved in the transaction does not have all
order to adopt the best purchase decision, relevant information in relation to the
directly influences the prices established characteristics of the good or service which is
within the market. Thus, prices tend to rise the object of the transaction, while in the
along with the rise of the expenses implied model of moral hazard, the same party lacks
by getting the information, a situation which for relevant information concerning the
confers sellers a specific monopoly power, actions the other party may undertake.
due to consumers’ limited mobility in finding • The term of adverse selection was
better transactions, as to costs. This evolution initially used in insurances in order to
is explained in that, in proportion as search describe the situation in which the persons
costs rise, the gain obtained by the person exposed most to a certain risk are more
willing to find the lowest price will be more inclined to sign an insurance contract, since
and more reduced, and the extent to which the insurer cannot discriminate against them
companies will be able to exploit their by reason of the lack of information with
monopoly position will be larger. regard to the individual risks which are
Particularly, sellers can exploit the lack of specific for each person. The problem of
information on the part of the consumers adverse selection was then generalized by
asking them scaled up prices for the offered economists to other markets, not only the
products. insurance one, as motor car market, labor
Consequently, as Stanford J. Grossman force market or capital market.
and Joseph E. Stiglitz reasoned, since in real On these line, George A. Akerlof’s
economy information costs, prices can not remains famous with regard to “market for
reflect perfectly the information available lemons”[8], where second hand car buyers
within the market; or, those who would can not know exactly their quality,
invest their available resources in order to get respectively if they are good or bad (lemons),
that information would not receive any type so that they will be inclined to pay for them a
of compensation, so that the existence of price that is situated somewhere between the
some entirely efficient markets from the price of a good car and that of a bad one.
informational point of view becomes Owners will sell less good motor cars, being
impossible.[6,7] dissatisfied with the very low price received
In addition to the prices, the transmission in exchange for them, but they will choose to
of information by the consumers also may sell more lemons, being satisfied with the
take place in the market perimeter through good price they are repaid with. After a
other methods, respectively by means of specific time, buyers will realize this and will
advertising or the decisions adopted by the not be inclined to pay the old price asked for
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a lemon. Consequently, the price will fall buyers with regard to sellers’ identity, the
even more, so that more less good cars and quality and the prices of the products offered
more lemons will be offered on the market. by them. But, unfortunately, correct
Ultimately, good car sellers will be taken out information connected to the offer is not
of the market. The conclusion is that market always transmitted by advertising, a
fails to keep lemons away because of discussion on which we will go back
imperfect information with regard to their immediately.
true quality, these coming to overlap at the The initiative of rectifying the
expense of good quality cars. informational deficit can come not only from
On such a market, the disposition to sell the most informed person, but also from the
second hand cars or not at the practiced price uninformed one, respectively the consumer,
reveals information about that car if it is a who can undertake search actions of some
lemon or not, so that, those willing to sell supplementary details concerning the seller
cars at market price will actually be write-off and the quality of his offer, a process named
owners, since they profit by them, unlike the by Joseph E. Stiglitz – screening [10].
owners of quality cars, who would rather not However this solution involves certain limits
sell them at all, since they only lose. which reside in the inherent expenses of
Starting from this example, it is logic for previously analyzed search operation.
us to think that some participants in the • A second model of informational
market, as lemons’ sellers, will not be willing asymmetries – moral hazard, was delimited
to transmit supplementary information that by Kenneth Arrow and also exemplified for
might jeopardize their image in front of the first time in the field of insurance
buyers, or their gain diminishes considerably. services.[11] The informational asymmetries
On the contrary, other participants in the which are the subject of this model are
market, as quality car owners, will prefer to considered, in fact, as a problem connected to
transmit information by which the quality of incentives, because when they are insured
the offer can be perceived, in order to against a specific risk, the consumers of such
determine the consumers to buy their cars at services do not dispose of adequate
the expense of lemons. incentives for undertaking actions that are
This imperfection can be rectified by meant for avoiding the regarded risk.
providing the surplus of necessary Moreover, insurer’s actions are for the most
information in the consumer’s benefit in part imperfectly observed or even pass
order to adopt the best decision. The unnoticed by the insurer.
undertaking may firstly come on the part of A special case of this model was
the more informed person, respectively the developed by Stephen A. Ross and became
seller, by emitting signals toward the partner known under the name of principal-agent
with regard to his credibility and the quality problem [12], which may appear when
of the offer – a procedure which is known in employing by the consumer an authorized
specialty literature under the name of supplier in order to provide him certain
signaling and developed by Michael specialty services. If their interests are not
Spence[9]. Such signals take the form of aligned, the agent will have the tendency to
guarantees; these, the more advantageous adopt an opportunistic behavior, trying to
they will be, the better quality of the products maximize his own utility, being advantaged
they will communicate to the clients for two also by the principal’s impossibility of
reasons: on one hand, the reduction of the monitoring him at any step, and especially
risk of going to supplementary expenses by because of the lack of specialty knowledge,
repairing possible failures, but, especially, on so that he will finally have more information
the other hand, the certainty that the seller compared to the principal regarding the
would not have offered that guarantee if the intentions or the actions he undertakes.
chances of the product to get out of order had Generally, the problem of incentives
not been small. degenerates in a market failure when
Not lastly, an important signaling source individuals are not gratified for what they do
on the part of the seller is also represented by or when they do not have to pay the entire
advertising, whose main role, estimated in cost of a wrong action. This problem can be
this context, is that of informing the potential solved by the agency of the negotiation
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between the interested parties, respectively factors, respectively the time available to the
between the consumer and the service consumer, his education level and the
provider, of some contracts in which should financial income, estimating that, generally,
be specified very clearly all the conditions the consumers more educated and prosperous
for the development of the transaction, from the financial point of view tend to
especially the obligations which come to consult several information sources with
each one of the parties in any given situation regard to the offer, these being separately
and the eventual penalties to bear for the analyzed by comparison before making the
breach of contractual terms. However, it is purchase decision.[15]
impossible that such a contract comprises all Moreover, under the conditions of
the unexpected situations that may appear technological developments presently
during the development of the transaction, involved in communication filed, especially
and even if it were possible, the parties by extending the use of the internet – which
would lose a lot of time for stipulating them firstly result in the reduction of information
distinctively. Additionally, no matter how search cost, and secondly, the increase of its
complex the contract would be, uncertainties volume which is at the consumer’s disposal -
and dispute still may appear, so that this only more and more the problem of informational
represents a partial solving of the incentives overload is raised. On these lines,
problem. experiential proofs point out the fact that,
Another solution in offering incentives in although consumers feel more satisfied and
market economy is constituted by reputation less confused when they have a surplus of
[13, 14], which can be gained by a company information, the decisions adopted by them
through reliability and the quality of are not always the most “inspired” [16,17], a
products, respectively of the offered services. tendency which can be explained by the
But in order for the reputation to be an limited time at his disposal in order to
efficient mechanism, companies must record process the available information and which
losses if it would suffer. Consequently, in the move them toward ignoring certain
markets where quality is maintained due to a information sources. Accordingly, the more
reputation mechanism, price must be superior time and effort are spent, the less remains for
to marginal production cost (otherwise processing it on purpose to make a decision,
companies do not have incentives for so that consumer’s decisional process
maintaining their reputation), unlike the involves, in the end, a limited rationality.
hypothesis of competitive markets with
perfect information, where competition 3. Conclusions
reduces the prices to the level of marginal
cost. In fact, in the markets where reputation The internal logic of functioning of
is very important, the necessity to establish it market economy, approached from the
acts as a barrier at the market entry and limits perspective of the interests and motivations
the nature of competition; in order to become of the consumers in economic activity –
known, new-comers must offer a sufficiently producers and consumers, points out the fact
small price, accompanied, in most cases, by that they are in an out of balance proportion,
powerful guarantees with regard to the objectively, at the expense of the latter, even
quality of the offered products, conditions if the consumers, with their needs and
under which the access on such a market necessities, should represent the origin and at
becomes extremely expensive. the same the final point of the production
Regardless of the source of origin and the activity. The existence of the “sovereign
cost of obtaining them, even when the consumer”, invoked by the supporters of free
consumer would ideally be in the possession market, is jeopardized within the context of
of all the necessary information for adopting economic reality, by the failure of the action
the best purchase decision, a different of spontaneous self-adjustment of the market.
problem intervenes, namely the process of Considering that information asymmetries
that information, an activity which implies a represent the form of market failure which
supplementary effort on his part in order to most often affects the consumers, this
understand and interpret it. In fact, situation offers the traders the possibility of
information process is dependent on several influencing their decisions, so that the
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choices undertaken by the consumers are no [13] Leffler, K. B., “The Role of Market Forces in
longer guided exclusively by the principle of Assuring Contractual Performance” in
rationality, but they can be induced by the Journal of Political Economy, Vol. 89, no. 4,
interests of transaction partners. 1981, pg. 615-641;
[14] Shapiro, C., “Premiums for High Quality
Such situations demand the deliberate
Products as Returns to Reputations” in
intervention of public power towards the Quarterly Journal of Economics, Vol. 94, no.
diminution of this relation which is 4, 1983, pg. 659-680;
unfavorable to the consumers up to an [15] Thorelli, H. B., “Concentration of
acceptable sustainability level. Information Power among Consumers” in
Journal of Marketing Research, Vol. 8, 1971,
4. References pg. 427-432;
[16] Summers, J. O., “Less Information is Better
[1] Bator, F. M., “The Anatomy of Market ?” in Journal of Marketing Research, Vol. 11,
Failure” in Quarterly Journal of Economics, 1974, pg. 467-468;
Vol. 72, no. 3, 1958, pg. 351; [17] Scammon, D. L., ”Information Load” and
[2] Lipsey, R. G., Chrystal, A. K., Positive Consumers” in Journal of Consumer
economy, Ed. Economică, Bucharest, 1999, Research, Vol. 4, no. 3, 1977;
pg. 464; [18] Gheorghiu, G., Consumer Protection -
[3] Stiglitz, J. E., „The Contributions of the Worthlessness or Necessity, LAP Lambert
Economics of Information to Twentieth Academic Publishing, Saarbrucken;
Century Economics” in Quarterly Journal of [19] Round, D. K., Tustin, J., Consumers as
Economics, Vol. 115, no. 4, 2000, pg. 1448- International Traders: Some Potential
1449; Information Issues for Consumer Protection
[4] Stigler, G. J., “The Economics of Regulators, International Trade Law
Information” in Journal of Political Conference, Attorney-General’s Department,
Economy, Vol. 69, no. 3, 1961, pg. 213; Canberra, 23 September 2004.
[5] Stiglitz, J. E., “Information and the Change in
the Paradigm in Economics” in American
Economic Review, Vol. 92, no. 3, 2002, pg.
469-470;
[5] Grossman, S. J., Stiglitz, J. E., “Information
and Competitive Price System” in American
Economic Review, Vol. 66, no. 2, 1976, pg.
246-253;
[7] Grossman, S. J, Stiglitz, J. E, “On the
Impossibility of Informationally Efficient
Markets” in American Economic Review,
Vol. 70, no. 3, 1980, pg. 393-408;
[8] Akerlof, G., “The Market for “Lemons”:
Quality Uncertainty and the Market
Mechanism”, Quarterly Journal of
Economics, Vol. 84, no. 3, 1970, pg. 488-
500;
[9] Spence, M., “Job Market Signalling” in
Quarterly Journal of Economics, Vol. 87, no.
3, 1973, pg. 355-374;
[10] Stiglitz, J. E., “The Theory of “Screaning”,
Education, and the Distribution of Income” in
American Economic Review, Vol. 65, no. 3,
1975, pg. 283-300;
[11] Arrow, K., “Uncertainty and the Welfare
Economics of Medical Care” in American
Economic Review, Vol. 53, no. 5, 1963, pg.
941-973;
[12] Ross, S. A., “The Economic Theory of
Agency: The Principal’s Problem” in
American Economic Review (Papers and
Proceedings), Vol. 63, no. 2, 1973, pg. 134-
139;
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heavily in green energy production, this fact targets for the 27 states to accomplish and
being also reflected in production of energy different terms regarding each one of them.
from wind sources.[3] Figure no.2: Evolution of installed capacity
of wind power turbines worldwide in 1995-
Figure no. 1: Top 10 market share of global 2012
wind energy in 2012
30 China
USA
25 Germany
Spain
20
India
15 France
Italy
10 GB
Canada
5
Portugal
0
Market share of global *Source: Own processing of the information
wind energy available at http://www.thewindpower.net/
statistics_world_en.php.
*Source: Own processing of the information
At continental level, the first place in
in Global Wing Energy Outlook 2012 Report,
available at http://www.gwec.net/wp-content/ producing electricity from wind power is
uploads/2012/11/GWEO_2012_lowRes.pdf. occupied by Europe, closely followed by
Asia. America has the next place and at a
Along with leading members of the long distance, Oceania and Africa. From the
wind energy market, a range of other technological point of view, the biggest
countries with potential wind energy engineering results in elements necessary for
development joins in order to accomplish the these processes were obtained from India.[5]
target of gradual elimating the energy
produced by fossil fuels, which on the one 3. Wind energy between economic
hand, are of a limited quantity, and on the considerations and sustainable
other hand, they pollute most. All the states development
that are involved in energy production with
wind fuel, made that during 1995-2012 the The starting point of using wind
installed capacity of wind turbines to grow turbines for electricity production was the
up to 57 times, being a relatively constant need of mankind to pay attention to
trend in rising year by year. As the issue of becoming more considerate regarding
replacing the classic fuels is more acute, the sustainable development in the context of the
increased use of renewable fuels is higher. sharp rise in the number of people in the
Consequenly, the use of wind turbines is world and the consequently growth of
expected to see further significant growth.[4] consumption and needs. These
The European Union sustains this type considerations, which were affecting the
of energy production with all possible means, entire population of the globe, have required
assuring legislation and finance for different increased attention to all aspects that the
projects implying green energy. The need of initialization and development of this energy
replacing conventional fuel is so stringent industry branch assumed and still assumes
that the European Commision established until reaching a maximum point of
development.
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5. References
[1] http://www1.eere.energy.gov
[2] http://www.thewindpower.net/statistics
[3]http://www.forbes.com/sites/kensilverstein/201
2/11/28/a-nuke-free-germany-may-be-forced-
into-dirty-embrace-with-coal/
[4] http://www.gwec.net/wp-content/uploads
[5] http://ww2.windpowerindia.in
[6] http://www.bp.com
[7] http://www.energydigital.com
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2. Methodology
1. Introduction
It is generally accepted that consumption
At microeconomic level, the consumer is determined by numerous factors, such as
income is the essential factor which, by its incomes, prices, demography, infrastructure,
value, type, dynamics, distribution in time, acces to information, individual preferences,
destination etc., is the material prerequisite of etc.
the consumer behaviour and the main Firms target profits as the rationalle of
restriction imposed to the consumer. The their existence. Hence, targeting profits
consumers income change obviously affects means targeting consumers, as they are the
on the long-term their behaviour towards the main actors influencing firms' incomes.
goods and services they consume. Thus, a Consequently, we consider that consumption
decrease in their income leads to a decrease has a significant impact on firms' incomes, as
in the demand for goods and services, with a consumer behaviour influences demand for
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goods and services. All in all, we assume that which the amount of 10,000 lei is 1 RON.
consumer behaviour is an important factor The data series were also transformed by
influencing firm financial performance. deflating, into comparable prices for 2002.
We define this issue as a simple Given the above assumptions, variables
regression model, of which endogenous considered within our regression model are:
variable is the financial performance, Financial performance, represented by
measured by a financial indicator, and of ROS - endogenous variable named PERF;
which exogenous variable is the consumer's Wage incomes of consumers - exogenous
income. variables named WAGE_INCOMES;
We take into consideration within present Non-wage incomes of consumers -
study the influence of incomes on consumer exogenous variable named NON-
behaviour, with great impact on firms' profits WAGE_INCOMES.
- its financial performance. Collected data
clasifies consumer incomes into two different 3. Research results
groups:
• wage incomes, and By means of the least squares method, we
• non-wage incomes (e.g., annuities, estimate the parameters of the regression
dividends, rental incomes, etc.). model as PERFt=α1+ α2NON-
The data on the financial results of the WAGE_INCOMESt+ α3WAGEt + εt, and, by
investigated companies were obtained from introducing letter c in the equation, we
the website of the Ministry of Finance. estimated the regression model by also taking
Financial performance of the selected firms into account the free term α.
was computed as a profitability indicator - Based on the results of the calculations
return on sales (ROS). ROS was calculated above, the regression model is estimated as
for a period of 10 consecutive years. The data follows:
for the period 2002-2012 were applied PERF=-2.243084214+0.2536569766* NON-
transformations, i.e. they were denominated WAGE_INCOMES+0.2175918549*WAGE_
according to the law in force since 2005 by INCOME
Table 2 – Estimation of parameters using the Least Squares Method
Dependent Variable: ROS
Method: Least Squares
Date: 04/08/13 Time: 11:10
Sample: 2002 2012
Included observations: 11
Variable Coefficient Std. Error t-Statistic Prob.
C -2.243084 0.677498 -3.310837 0.0107
WAGE_INCOMES 0.253657 0.021916 11.57426 0.0000
NON-WAGE_INCOMES 0.217592 0.037888 5.743035 0.0004
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the vector of the parameters α. Consequently, The described model is validated, this
this model defined as PERFt=α1+ α2NON- being a linear-type model. The model
WAGE_INCOMEt+ α3INCOMEt+ εt is a illustrates the positive effects caused by an
form of the linear regression model of which increase in the consumer incomes, both the
exogenous variables are NON- wage-incomes and the non-wage incomes, on
WAGE_INCOME and INCOME. the financial performance of the companies
To test whether, at the level of the linear in the manufacturing sector.
regression model, there is at least one The value associated to the free term
explanatory variable to justify the behaviour cannot be interpreted in economic terms.
of the explained variables, the F test is used. We note that the influence of the non-
By estimateing the parameters by OLS, the wage incomes is higher, this being due to the
value of the F statistics is 156.5403 with a fact that we are talking about non food
probability of 0.0000. Thus, the null goods. From their wages, people satisfy their
hypothesis is rejected, which means that the basic needs first, while other incomes may
model is correctly specified. bring more life satisfaction.
A qualitative indicator of the regression
model is the coefficient of determination (R- 5. References
squared). Values close to 1 of the coefficient
of determination shows that the endogenous [1] Baltagi, B.H., Econometrics, Berlin
variable variations are explained by the Springer, 1999
changes in the exogenous variables. In our [2] Barro, R., Economic Growth in a Cross
case, the coefficient of determination is Section of Countries, The Quarterly Journal
of Economics, pp.407-443, 1991
0.975084, which shows that this model
[3] Becker, Gary S., Comportamentul uman, o
adjusts better the sample data. abordare economică, All Publishing House,
Since the coefficient of determination in Bucharest, 1994
this form is very little influenced by the [4] Capon, N., Farley, J.U., Hoenig, S.,
number of explanatory variables of the Determinants of Financial Performance: A
model, we used another form of it, namely Meta-Analysis, Management Science, Vol.36,
the adjusted coefficient of determination. In No.10, 1990
the case discussed here, the value of the [5] Greene, H.W., Econometric Analysis,
adjusted coefficient is 0.968855. We note MacMillan Publishing Company, New York,
that the two coefficients of determination 2008
[6] Otley, D., Measuring performance: The
obtained for this regression model have
accounting perspective, in Business
similar values and we consequently may Performance Measurement. Theory and
conclude that the model is validated. Practice, Cambridge University Press, 2002.
Moreover, the obtained value of the [7] Bourbonnais, R., Terraza, M., Analyse des
Durbin Watson statistics (DW) indicates that, séries temporelles: application à l'économie
for the model considered, it does not appear et à la gestion, Dunod, Paris, 2008
the phenomenon of autocorrelation of errors. [8] Lewis, W.A., The Theory of Economic
The formulated model is statistically Growth, London, Routledge, 2006
validated; consequently it may be used in [9] Smith, R.E., Wright, W.F., Determinants of
forecasting. customer loyalty and financial performance.,
Journal of Management Accounting
Research, 2004
4. Conclusions [10] Nwachukwu, O.C., Oseghale, B.,
Determinants of Small Business
The regression model being validated, it Performance: A Meta-Analysis, Economics
may be used to make predictions about the & Business Journal: Inquiries &
evolution of the companies producing goods Perspectives, Vol.3, No.1, 2010
and services. To verify whether the [11] Riedl, E.J., Srinivasan, S., Signaling Firm
relationship between the variables of the Performance Through Financial Statement
model is correct for estimating the model Presentation: An Analysis Using Special
parameters in general, it may be also used the Items, Harvard Business School, Working
Paper 09-031, 2008
method of the maximum verosimilarity or the
[12] Mills, T.C., The Econometric Modeling of
method of moments. Financial Time Series, Cambridge University
Press, Cambridge, 1993
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Ilie Constatin
OVIDIUS University from Constanta, Faculty of Mechanical, Industrial and Maritime
Engineering
cosmyn2001@yahoo.com
Ilie Margareta,
OVIDIUS University from Constanta, Faculty of Economic Sciences
udrescu_marga@yahoo.com
Bujdoveanu Aurica
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5. Conclusions
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Under these circumstances, it may be said the insurance companies currently offer a
that nothing is certain, the activities with a wide variety of products and services that
high degree of safety are almost non existent, support individuals and organizations
the concept of risk becoming complementary exposed to risk, the number of companies
to that of activity. We live, thus, in a world of operating in the insurance market has
risk and, as stated by the physicist Louis de dropped in recent years. Therefore, in 2011
Broglie, we must accept the risk because it an approximate number of 5000 insurance
represents the condition to all successes. companies was reached, compared to the
There are several definitions of risk. Most 5416 that existed back in 2005, for example.
of the definitions studied see risk as the [1].
probability for loss occurrence, due to certain The situation accounted for in the last
unforeseen and unfavorable events. period of time is due to the challenges the
The economist Raymond Barre, analyzing companies have undergone- increasing
the characteristics of the market economy, competition due to globalization, the impact
has highlighted the growth tendency of risks of the global economic crisis, consumers’
in this organizational system, due to the demands and their continuously changing
social transformations economic agents’ behaviors.
interdependence and technical progress With a percentage of 36% of the global
acceleration. market, the insurance market in Europe is the
Globalization also implies new largest in the world, followed by North
opportunities as well as increased risks, given America with a share of 29% and Asia with
that all nation states are involved in various 28%.[2]
foreign relations, which makes them parties, In contrast, the insurance market has
to an greater or lesser extent to the effects of increased in Bulgaria by 14%, becoming thus
major international events. In this context, the fourth market in 2011.
the risk has acquired a great importance in all All these differences regarding the
fields of the economic and social life, taking insurance market, demonstrates that it is a
risks becoming a common practice. complex market, which interacts with many
The existence of these risks, whose aspects of people's lives.
materialization may cause losses led, for that Under these circumstances, the
matter, to the emergence of insurance as a competitiveness of the insurance sector
distinct activity. depends mostly on the knowledge of the
Insurances have therefore become an consumer’s behavior as a decision maker
instrument for risk management, facilitating regarding the acquisition, and on the
the elimination or reduction of damage by companies’ ability to adapt to the new
transferring the risks to insurers. conditions.
However, not all risks can be insured (the
risk must be of the future, possible, real and 3. Consumer - the engine of the insurance
uncertain). market growth
The oldest written proof, about the
emergence of insurances is dated Consumer behavior represents thus an
approximately 6500 years ago, when in the important vector in the trajectory of the
Lower Egypt, the stone workers have insurance market..
constituted, anticipated, an insurance fund, Therefore, knowledge of the consumer's
where everybody contributed, in order to behavior and the repositioning of the
compensate the different losses that could products according to it, represent essential
affect the members of their community. variables in the process of organizing and
Since then, the insurance market conducting effectively the companies’
registered a continued dynamic. Thus in 1900 activities. The various points of view
there were about 1272 insurance companies regarding the definition of consumer’s
worldwide, and by 1969 it reached a number behavior support the idea that it should be
of approximately 9700, widespread in 71 considered interdisciplinary (economics, law,
countries. psychology, sociology, theory of risk and
Our country has a tradition in the even history).
insurance field of over 130 years. Although Synthesizing these approaches led to the
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conclusion that both the factors that influence and optimize the distribution and information
the consumer behavior and consequently, the channels, combining new technologies
demand for insurance products can be (online distribution channels), with the
grouped from this perspective. Thus, the traditional distribution channels, to ensure
increase / decrease in demand for insurance that they can be contacted by anyone
is determined by economic and financial interested.
factors (average standard of living within the Nevertheless, traditional distribution
specific area, current income, expectations of channels have retained an important role.
its evolution, interest rate, liquidity Thus, if bancassurance (introduced in
preference), cultural (besides the educational Europe in 1980) is the main distribution
level, we include here religion, ethnicity, channel in many countries, reaching a record
nationality), social (social status, group of 92% in Malta (France 61%, Austria 63%),
affiliation, family), psychological (beliefs, in Eastern Europe, the system is still
motivation, self-esteem), personal (age, widespread. Distribution is made, still,
occupation, life cycle stage, tendency for risk mostly through the two traditional channels –
) and incidental. agents and brokers. In Romania, for example
55% of the insurance market is covered by
3.1 The diversification role in ensuring the agents, 21% brokers and only approximately
competitiveness of the insurance market 14% is covered by bancassurance. [3]
In terms of portfolio diversification in
Considering that, besides the price of the relation with the current context is has been
insurance policy, the quantity demanded on imposed for example the growth of
this market is influenced by other conditions, insurances with lower loss.
objective, but the most part subjective, the From the demand for insurance bearer,
insurer must include in his strategy, a reporting to the same diversification theory,
permanent diversification of the portfolio, we can say that, purchasing more products
and even a differentiation of products and of represents a solution for risk reduction.
distribution channels, with the purpose of The complementarity idea between
providing personalized services depending on different financial products (the combination
the customer needs. of banking products and insurances) was
The diversification idea had been highlighted even in the 2009 OECD report.
formulated ever since 1952, by Harry Complete and correct information is thus
Markowitz, who has formulated a a decisive step for establishing the action
revolutionary theory at that time for the strategy on this market, both for the insured
business world, showing that diversity is gold and the insurer.
for any investor or manager. In fact, he won However, market failure is felt also of the
the Nobel Prize for economics in 1990, insurance market segment, in the form of
following his theory from 1952 (Portfolio asymmetric information, because each of the
Selection) - the first notable attempt to two parties hopes that they own more
quantify risk, showing that there is no gain information than the other does, and thus a
without risk and that we should not put all greater gain.
our eggs in one basket, as it involves Thus, the insurer has better information
unacceptable risk. due to the large number of clients and
Adopting the customer-centric strategy, knowledge of its own products and, the
the offerer will obtain competitive customer has control over the information
advantages and thus will achieve his goal - regarding their personal situation being able
increased profit. to provide false information about his health,
This approach is required because the new financial situation, etc .) [4]
realities left their mark, also on the current This situation reminds us of the classical
consumer who is more educated, more issue on lemon, present on all free markets
informed and therefore more difficult to under the conditions of asymmetric
handle. In this equation should be included information. Formulated by George Akerlof,
also those with a prudent attitude towards in his article "The market for the Lemons:
new, especially to new technologies. Quality, Uncertainty and Markey
Consequently, the companies need to expand Mechanism", he argues that individual
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4. Conclusions Acknowledgement
5. References
[1] www.xprimm.com
[2] www. insuranceeurope.eu
[3] Insurance Europe Statistic – „European
Insurance in Figures”, Statistics no. 46,
January 2013, pg. 14-68
[4] Marešová Petra – “Research of the Behavior
of Consumers in the Insurance Market in the
Czech Republic”, Journal of Competitiveness,
Vol. 4, Issue 2, June 2012, pg. 20-37
[5] George AKerlof - “The market for the lemons:
Quality, Uncertainty and Markey
Mechanism”, Quarterly Journal of Economic,
August 1970, pg 488-500
[6] Ernst & Young – “Global Consumer
Insurance Survey 2012”, EYGM Limited,
2012
[7] Antonino Iero, Giorgio Tassinari – „Attitudes
towards insurance: the role of propensity to
hold liquid asset”, Department of Statistics,
University of Bologna, Series Quaderni di
Dipartimento, 2011, n. 4, pg 1-37
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other bonds in the same currency and with 3. Country-specific factors that influence
the same maturity, assuring a proper spreads
estimated size of the country-specific and
liquidity premia, since there are no exchange The emerging countries cannot be
rate expectations or other uncertainty considered as homogenous. The average
components involved[6]. value of the spreads implies very wide gaps
Sovereign bond spreads mainly mirror of levels.
three types of risk. The first one is the credit It has to be verified if this difference in
risk or default risk, which describes the levels is due to the differences in default and
likelihood of the bond issuer to fail or to liquidity risks, and to study the
refuse to service the debt. The second one is macroeconomic characteristics of these risks.
the market risk, which is corelated to the It may be helpful to analyze the
variance within the secondary market bond relationship between credit rating and foreign
prices. currency bond spreads. Due to the fact that
These two risks are inter-linked, since one the countries’ external debt rating mirrors the
of the factors that leads to price changes is default risk, there is a link between the credit
represented by the perceived credit risk. In ratings and the spreads. It has been proven
addition, market risk is affected by other that a higher credit rating reflects a lower
factors, such as the willingness of the spread within countries and across countries.
investors to take risk. The third risk is the But spreads’ shifts may only partially be
liquidity risk, which describes the likelihood taken into consideration forthe difference in
that investors only sell bonds on the ratings.
secondary market at a very low price. Macro-economic empirical research has
Even if foreign currency bond spreads do shown that domestic fundamentals that better
not encompass any premium for exchange reflect the default risk are important to the
rate risk, it doesn;t mean that foreign spread evolution, both within and between
currency bond spreads shifts do not provide countries. Liquidity indicators and solvency
indications regarding the risk premium on indicators (for example, the debt ratios, the
financial instruments that are denominated in international reserves, the ratio between the
the home currency. The country risk balance of payments and the gross domestic
premium which is reflected in the foreign product, the share between the debt service
currency bond spreads and the ex-change rate and exports) and payment issues are also
premium are very linked. In the case of significant causes, as well as the gross
currency crises, it is a high probability that domestic product growth and per capita gross
the government will do not meet its foreign domestic product. In addition, the issued
liabilities; therefore, an exchange rate quantity (an indicator of secondary market
premium incerase is followed by an increase liquidity of a certain bond) has also
in foreign currency bond spreads. The effects significant effect on spreads.
of the changes in the exchange rate on the Regarding the capability of economic
default risk is often very important for the fundamentals to predict risk, it has been
emerging countries, where there is a large demonstrated that the influence of
share of market participants’ balance sheet fundamentals may be described by their role
liabilities denominated in foreign currency, in predicting the probabilities of the default
implicating significant financial losses in the risk and of liquidity risk: spreads increase
case of the home currency depreciation, more during a currency crisis than is certified
raising the foreign currency debt. So, by the raise in risk probabilities. Lower credit
exchange rate shocks imply higher threats to risk (described by the state of domestic
the emerging countries than to the advanced economic fundamentals) leads to lower risk
countries, since the unforeseen depreciation premia, still these properties do not properly
in the emerging economies is regularly take into consideration the spreads’ short-
followed by an economic recession, while term fluctuations, which may be owed to
across developed economies the economic other market factors[4].
recession do not appear in this situations[2].
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4. Factors that influence the general doesn’t mean that risk preferences vary in
perception of emerging market risk time[1].
The effect of risk appetite over markets is
Co-movement of foreign currency bond properly reflected by the high correlation
spreads underlines the nature of the shocks between the developed market risk
that affect the emerging economies. A strong indicators. It has been proved that in the
correlation between spreads means that the emerging economnies the shifts in global risk
perception of risk within emerging appetite have been mainly induced by the
economies is influenced by common shocks, expectations about global economic growth,
or by shocks that the investors think that the which has been affected the credit
emerging economies have in common. availability and the export prospects.
A weak correlation between the spreads There has often been the case that
means that the idiosyncratic shocks changes in risk appetite, accompanied by
dominate. External shocks may appear as a growth expectations, have exceeded the
spillover effect of a shock that affects a measure of risks shifts. One cause for the risk
specific country or due to global actors that appetite procyclicality is given by the fact
affect several emerging economies. that investors try to forecast the future
Country-specific macroeconomic outcomes, taking into consideration recent
characteristics often are unable to explain the events, so that the probability of negative
changes in the risk premia on emerging outcomes is disproportionately low during
country financial instruments, particularly economic booms and disproportionately high
during financial crises. Therefore, the during economic slowdowns.
analysis will focus on the external factors
that may determine the market sentiment co- 6. Changes in reference rates
movement and the risk perception related to
emerging economies[5]. Regarding the effect of the reference rates
on foreign currency bonds on emerging
5. Risk appetite market spreads (with other words, of the
developed country interest rates), there is no
One of the causes for the general changes clear theoretical link. A drop of reference
in market sentiment, which is not related to rates will reduce the debt burden of an issuer
the country-specific fundamentals, is that the of foreign currency bonds, diminishing the
fact that there are some events that default risk, so that the spread beomes
determines a shift in the risk appetite of the narrower. But the effect may be different in
international investors, leading to changes in the sitation of the global risk appetite decline,
the risk premia among other separate so that the fall in demand for higher-risk
markets. So, risk appetite affects both the instruments is followed by an incerase in
emerging markets and the higher-risk risk-free instruments demand (for example,
instruments that are traded within developed the government bonds issued by the
capital markets. The occured events within developed markets). Developed market rates
these markets ussually are determined by the and emerging market spreads are negative
shifting sentiment regarding the emerging correlated even when the fall in long-term
markets. rates illustrates the expectations of a
Risk appetite may lead to confusion. The economic slowdown.
yields of the risky instruments, relative to Empirical research on the reference rates’
yields of risk-free instruments, may be effects on the risk perception provide no
affected by two factors: the beliefs regarding additional information, so there couldn.t have
the distribution of expected yields (the been identified any certain relationship
perceived risk), and the preferences of between reference rates and spreads. In
investors related to risk-bearing. Risk addition, the coefficient of developed country
appetite wrongly refer to the likelihood of rates is either negative either not significantly
preferences changing, which determines the different from zero, but never positive. There
investors to reallocate their portfolios, aiming hasn’t been proven any correlation between
to diminish the exposure. But the demand the emerging market spreads and the short-
change for risky financial instruments term rates.
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be taken into consideration, since there is no even medium-term involved by the financial
immune emerging country to contagion. instruments.
Even if financial contagion may have a In conclusion, policy makers within
limited impact over time, financial stability emerging countries have to encourage
may be endangered by the shifts in the (foreign) direct investments by providing
investors’ sentiment regarding emerging fiscal and financial incentives, a stable
markets (due to volatile yields and to political climate and a proper legislation
excessive exchange rate fluctuations). regarding competition and the rules related to
The correlation between the movements the business environment.
in the currency interest rate differential and
the bonds’ unweighted average lead to 10. References
similar conclusions.
Even countries which have EU [1] Amadou, N., „Emerging market bond spreads
membership and which improve the credit and sovereign credit ratings: reconciling
rating (leading to a reduction in the impact market views with economic fundamentals”,
of financial contagion) are unable to entirely IMF Working Paper, 2001
[2] Benczur P., „Identifying sovereign bond
avoid the exposure to these effects, which
risks”, NBH Working Paper Series, 2002
can be done only by abandoning the domestic [3] Blondal, S. and Christiansan, H., „The recent
currency. experience with capital flows to emerging
market economies”, OECD Economics
9. Conclusion Department Working Paper, 1999
[4] Eichengreen B., Mody A., „What explains
Investments have a two-way effect on changing spreads on emerging market debt:
financial instability. Financial investments fundamentals or market sentiment?”, NBER
often lead to financial problems, which also Working Paper, 1998
have repercursions in the real economy. In [5] Goldstein, M., „The Asian financial crisis:
causes, cures and systemic implications”,
the same time, (foreign) direct invetsment
Institute for International Economics, 1998
have a stabilizing effect in the economy. [6] Kumar, M.S. and Persaud, A., „Pure
More important that the stabilizing effect is contagion and investors’ shifting risk
the long-term involved by this category of appetite: analytical issues and empirical
investments, compared to the short-term or evidence”, IMF Working Paper, 2001
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Academy of Economic Studies
cristian.ionescu@economie.ase.ro
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source of currency crises is the fact that will provide supplementary liquidity. But the
investors star to believe that the costs of loosening of monetary policy may
protecting the currency will be extremely compromise the credibility of the exchange
high for the central bank, so they focus on rate targets and may cause speculative
foreign currency; the self-perpetuating attacks.
process determines costs of defending the
currency to increase, so the central bank 2. Short and long-term developments in
permits the exchange rate to float. the current account
If a central bank protects a fixed or
narrow-band exchange rate regime through One factor that may influence the
interventions, a large current account deficit evolution of the current account balance on
may severely reduce the reserves of the the long term is the fact that the ratio of per
central bank, so it abandons the exchange capita physical and human capital is lower in
rate target. emerging economies than in the
But a certain exchange rate target has to developed economies. Thus, the return on
be protected by both interventions and capital is higher, stimulating investors from
interest rate increases, even if there is a developed countries to invest in the emerging
specific limit to the interest rate increases, economies. This induces a current account
due to the likelihood of a very excessive tight deficit.
monetary policy that is able to lead to In a utopia economy, without any
recession. Thus, there can be speculative uncertainties, where information is perfect
attacks on the market, if the market believes and symmetric, the equilibration of returns
that the macroeconomic costs of protecting on capital would entirely reflect the path of
the exchange rate will be very high (for current account balance. But in reality the
instance, if the market believes that the current account deficit is lower than the ideal
interest rate increases will determine an one, since lenders do not permit to an
economic slowdown that the economic emerging country's debt to increase above a
policies are unable to manage). In addition, specific level, due to uncertain and
the ones that require the speculative attacks fragmented information. Depending on the
may be given by the self-perpetuating aspects circumstances, there is a certain level of debt
rather than fundamental factors, in which at which investors believe that the future debt
case there may be various causes that may repayment is cannot be assured, so that they
influence the future expectations. One such will no longer finance the country.
factor that moves expectations towards From a debt crises perspective, the long-
inflaming a crisis is the large current account term evolution in the current account balance
deficit[5]. is very important. Regarding the country that
In addition to the causes of speculative is able to service its debt, the main factors are
attacks and to the current account crises, the rate of gross domestic product growth
there are also other issues that have to be and the rate of return on debt. Thus, in order
considered; for instance, the effect of crises to avoid future debt crises and to maintain the
on the real economy. In developed countries, long-term sustainability of the current
speculative attacks usually do not affect the account balance, it is important to protect the
performance; in the contrary, a more lax balance of payments. The structure and
monetary policy, accompanied by currency methods of financing deficits are also
devaluation, may increase economic activity. important, since they affect the average
But speculative attacks often determines return on the aggregate debt burden.
recessions in emerging countries. One of the Cyclical movements in the current
main causes for this is the fact that capital account balance are also important, since the
outflows are followed by a bank crisis[2]. expectations regarding the long-term
There are two causal links between bank evolution in the current account balance
crises and currency crises. During a currency depends on the short-term balance variations.
crisis, the monetary base diminishes (since Although the deficit size is critical, the
the central bank reserves fall down), method of financing is also relevant, due to
contracting the credit supply. But if the the occurrence of currency crises. Regarding
economy faces a bank crisis, the central bank the evolution of the currency crises, the
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Abstract
Our purpose is to create a system for
Customer care management has credit allowing to customer natural person.
developed, mainly in the last years. The This approach consists of carrying out a
present level was reached as a result of system which operates with a series of
implementing new information information considered relevant regarding
technologies. One of the sectors subject to the customer, offering the credit officer a
these changes is that of classifying support instrument in taking decisions.
customers. Classifying clients has a Two types of algorithms will be used:
fundamental function in communication, Fuzzy algorithm In this case each
campaign development, elaborating new relevant information about the client is
products, awarding existent customers. fuzzyfied, resulting in a degree of
Having a portfolio of information belonging to the referred domain.
regarding the customer with socio- Throughout the inference system a
demographic data and a history of customer classification will be obtained,
transactions about each client, companies the fuzzifying is not net, but the client will
and banks may develop a new design of belong to different classes, with different
transaction profiles. [6],[5]. degrees of belonging.
This approach consists of carrying out a
Keywords: customers, fuzzy classifying, system which operates with a series of
crisp classifyng information considered relevant regarding
JEL Classification: D80 the customer, offering the credit officer a
support instrument in taking decisions.
The starting point is the way in which
1. Introduction the customers are rated by the banks in
order to receive a credit. The method
Customer scoring is a new analytic consists of granting a scoring to each
procedure to assign each client a score or customer. In the case of assigning a scoring
metrics on one or more transaction to a customer for a specific category, the
dimensions. Following are some examples scores will be assigned or not, without have
of the most common behaviour the possibility to refine this choice.
characteristics: transaction volume, level of Regarding the fuzzy techniques, each
commitment and predisposition to respond relevant information about the client is
to campaigns and promotions. These fuzzyfied, resulting in a degree of
behaviour characteristics have the belonging to the referred domain.
fundamental function of assessing the risk Throughout the inference system a
level of the customer, the profitability and customer classification will be obtained,
the life value of the customer. [6],[4]. The the fuzzifying is not net, but the client will
validity and pertinence of the scoring belong to different classes, with different
assigned to the customers are given by the degrees of belonging.
precision of the information and the To start with the following variables
classifying algorithm used. were considered to be fuzzyfied: income
and work experience. The other variables
2. Decision Support Software were considered as eligibility variables. For
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weight components are included in the prototype vectors, errors appear, that is
[0,1] domain; assigning some x vectors to classes that
are adjacent those they actually belong. To
defining some poles, pik , k 1, mi ,
correct the class separation surface, the
which describe each class Si , i 1, p , prototype will be adjusted through an
and also some radial functions instruction algorithm. In this case should be
(potential functions) associated with available, along with the M vectors initially
the used as classes poles, also a batch of
1
K ( x, pk ) k ( x) instruction data, formed by vectors with
poles:
1 d 2 ( x, pk ) known belonging. Considering N the
number of vector from the instruction
(1) batch, the common instruction algorithm is:
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6
5000
5
4000
Salariu [lei]
4
3000
3
2000
2
1000
1
0
2 4 6 8 10 12 14 16 18 20
Vechime [ani]
0
0 1 2 3 4 5 6 7
0
2
1
the resulted discriminant function. This
-1 0 situation is represented also in (Figure 9),
-2 -1
-3
10
-2
10
where the tested vector is represented by
5
5
10
5
5
10
the red dot.
0 0 0 0
Figure 9 Situation recognition
example
2 2
7
1
1
0 Clasa II
0
-1 6 Clasa III
-1
-2
-3 -2
10 10
10 10 5
5 5
5 5
0 0 0 0
3
Figure 8 Space partition as a result of
instruction related with the 4 considered 2
classes
1
Clasa I
Clasa IV
0
0 1 2 3 4 5 6 7
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3. Conclusions
4. References
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Figure 8 Inserted information and scoring Introduction, in Market Oriented Grid and
Utility Computing”, John Wiley & Sons,
Hoboken, NJ, pp. 24-44.
[2].Buyya, R., Yeo, C. S., Venugopal, S.,
Broberg, J., Brandic, I. (2009), “Cloud
Computing and Emerging IT Platforms:
Vision, Hype, and Reality for Delivering
Computing as The 5th utility”, Future
Generation Computer Systems, Vol. 25,
pp. 599-616
[3].Hu, J., Khalil, Han, S. and Mahmood A.
(2010), ”Seamless Integration of
Dependability and Security Concepts in
SOA: A Feedback Control System Based
Framework And Taxonomy”, Journal of
Network and Computer Applications, Vol.
34(4): pp. 1150-1159
[4].Redshaw, P. (2012),” A Quick Look at
Cloud Computing in Banking, 2012”,
Gartner Research
[5].Redshaw, P. (2012),”Future of Money:
Using Cloud Capacity as a Currency”,
Gartner Research
[6].Rhee, S., McIntyre, S. (2008), “Including
the Effects of Prior and Recent Contact
Effort in a Customer Scoring Model for
Database Marketing”, Journal of the
In contrast with other existent Academy of Marketing Science, Vol. 36
applications, the suggested application No. 4, pp. 538-51
has the major advantage that it facilitates [7].Wyner, G.A. (2000), “Customer
the assessment of contractual relation classification”, Marketing Research, Vol.
between the customer and different banks 11 No. 4, pp. 38-9
in a short period of time. Basically by [8].Zuccaro, C., (2010),”Classification and
Predicting in Customer Scorring”, Journal
filling in some forms the potential client,
of Modelling in Management,Vol. 5 No.
if he/she acquires the scoring, can be 1, pp. 38-53
contacted by tens of banks having the
total freedom of decision. Nowadays,
there are online application designed to
attract customers, but sadly they can only
be considered a bank lending website, for
example www.vreaucredit.ro.
3. Conclusions
4. References
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Korneenko Olga
okorneenko@gsu.by
Doroshev Dmitry
doroshev@gsu.by
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products that meet in optimal way the needs proven technology of implementation
of customers, to process quickly, to distribute and operation. The competitive
orders and to monitor their execution, to advantages: functionality, reliability and
schedule deliveries, to forecast the demand proven technology of the
for optimal control of stock resources, for implementation, assistance and training
example, using IBS Trade House program of the users;
and IBS Retail Analytic program. • working places of cashiers – PosX,
The enterprises of retail trade show equipped with a cash program, as besides
interest in the following areas of information: standard operations of money acceptance
• BI - data analysis systems to process more and change giving, it needs to organize
quickly large quantities of information the non-cash payments, the discount and
that allow to obtain quickly the summary bonus cards service;
data on the performance of the whole • "1 C: Retail 8" on the platform “1C:
enterprise (for example, SAP, Microsoft Enterprise 8" program supports
Dynamics AX, Oracle BI systems), to geographically distributed information
analyze all information available in the bases (DIB). This provides clear
trade organization regardless the kind of separation of documents circulation
information system in which it within shops, and the information on all
accumulates. This decision is based on a shopping network is consolidated in the
data warehouse that accumulates central node of the DIB. As a result, all
information from various sources and, processes requiring information
thanks to its special structure, allows to exchange are realized not only with
generate reports more quickly than ERP- minimal effort, but also according to the
systems. There is no more need to schedule, and the centre gets promptly
contact programmers to generate reports information necessary for taking
with the required data from different management decisions on sales and
systems, to unload the data in Excel what movement of goods. At the same time,
greatly improves the speed of the the "1C: Retail 8" already includes the
analysis and quality of taken decisions ready plans of exchange. The
based on it[3]; “1C: Retail 8" automates the entire range
• customers relationship management – of necessary operations within the retail
CRM. In the conditions of increasing store, new business processes, it
competition, a growing number of generates accounting reports for
commercial enterprises are interested to operational management. The connection
know better their customers and to of a wide range of commercial
implement effectively policy in the field equipment of various types is
of assortment, marketing and discounts supported– barcode scanners, data
management. In addition to the various collection terminals, fiscal recorders,
CRM- systems, there are different IT- magnetic cards readers, cash registers,
products to interact with clients via SMS electronic scales, etc.;
and specialized programs that use bonus • use of Pocket PCs or communicators
cards; (PDA), i.e. mobile commerce, RFID
• Stores Commerce Management (SCM) that system. These devices are used as
are asked by trading companies (for storage information data on customers,
example, Visual Pos Manager (VPM) products, accounts and are used to record
which allows to manage all the cash and information about sales. Data are
discounts of retail chain from a single regularly synchronized with the main
center, and which integrates with SAP accounting system of the enterprise. The
Retail, Microsoft Dynamics AX, 1C, possibilities: making applications for sale
Oracle Retail, etc). Among the of goods; merchandising; the calculation
evaluation criteria, we can mention the of the recommended quantity for an
registration of the needs in a specific order; accounting of cash refunds, mutual
segment of the retail market, an easy settlements of accounts with clients;
scalability if the organization grows, a management of several firms; individual
use of modern IT development tools, a system of discounts; reminders of
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Lazar Cristina
Faculty of Economic Science, Ovidius University of Constanta
cgrozea@yahoo.com
Muhcina Silvia
Faculty of Economic Science, Ovidius University of Constanta
muhcina@gmail.com
Muhcina Despina
despina.muhcina@gmail.com
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benefit from the innovations of the cloud, reflected in the company revenue and could
you must have access to the Internet. even help attracting more customers.
Moreover, this implies that the system is From the E-commerce and marketing
prone to interruptions at any given time, business point of view, a future prospect in
without prior notification. For an E- cloud computing can be represented by the
Commerce business, this could mean that improvement of databases and marketing
during a transaction or an auction, the system approaches, and the development of new
can suffer an outage and the action in course marketing techniques, methods and
can be delayed or even lost. Inconveniences instruments (especially in marketing
may also appear if the vendor’s services or researches, advertising or distribution policy
the provider’s system goes down[4]. areas).
The most important risks are related to
3.2 Security issues of security and confidentiality of the
clients’ databases, and the high dependence
Although data may be more secure and to the provider’s technology, stability and
easily-recovered in the cloud, there are also seriousity.
some risks implied when storing it online. In conclusion, the activity of the E-
First of all, the fact that the data is “crossing Commerce company could become simpler
more borders”[2] can make it more vulnerable and more efficient if the management decides
to interception and hacking. Secondly, the to use cloud computing, this new innovation
company must be aware that the data in technology.
entrusted to the cloud provider is protected
and it is not available to other parties (for References
example, for advertising purposes) [2].
[1]. …, http://en.wikipedia.org/wiki/E-commerce,
Conclusion retrieved on February 25th, 2013;
[2]. …, “OPC Guidance Documents. Cloud
Computing for Small and Medium-sized
Taking everything into consideration, it
Enterprises: Privacy Responsibilities and
seems that integrating cloud technologies Considerations”,
into small or medium-sized E-Commerce http://www.priv.gc.ca/information/pub/gd_cc
business would bring rather benefits than _201206_e.asp, retrieved on February 25th,
risks. It is important to note that such a 2013;
business is characterized by a limited budget [3]. Lynn Samara, “20 Top Cloud Services for
or by few people involved. Small Businesses”,
First of all, an E-Commerce company http://www.pcmag.com/article2/0,2817,2361
could store its product and customers 500,00.asp, retrieved on February 25th, 2013;
databases on a chosen virtual server, and also [4]. Shagin Abby, “The Risks and Benefits of
Cloud Computing”,
duplicate them using a different virtual
http://blogs.sap.com/innovation/cloud-
server. Thus, the capital spent on buying computing/risks-and-benefits-of-cloud-
expensive in-house servers is replaced with computing-020025, retrieved on February
the monthly fee for the service provider (if 25th, 2013;
required). This way, the company not only [5]. Haas Martin, “Benefits & Risks of Cloud
reduces its costs, but also gains more security Computing for Small Business”,
over the data handled. http://www.computerservicesforlife.com/7-
Moreover, the E-Commerce company benefits-risks-of-cloud-computing-for-small-
could use cloud computing for services of business/, retrieved on February 25th, 2013;
project management, customer relationship [6]. …, “How to Use Cloud Computing for
Business Improvements”,
management, accounting, IT solutions or risk
http://blogcritics.org/scitech/article/how-to-
management. Consequently, it would avoid use-cloud-computing-for/, retrieved on
costs associated with program licenses or February 25th, 2013;
specially trained personnel. The platform [7]. Bucur, C.M., „Comert electronic”, Ed. ASE,
used would be more flexible and it would Bucuresti, 2002;
allow the company to change and update the [8]. Veghes, C., Marketing direct, Ed. Uranus,
system easier and quicker. This could be Bucuresti, 2003;
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other Eastern European countries, has a low for industry promotion; lack of a coherent
level of social capital, as a result of the industry image; too less employment in IT
systemic destruction of the civil society and sector.
of private property.
Values and norm such as trust, 4. Conclusions
transparency, reciprocity and participation
have been undermined. Romania have registered improvements,
This is reflected in people’s passivity, and translated both through a better and effective
inability to express adequate demands, use of the environment that favors knowledge
inability to understand and accept the (KEI), and through the increased possibility
differences and to participate at community to develop knowledge (KI).Papers are written
level in activities of common interest. From electronically, using a word-processing
the point of view of technological application.
environment, the use of computers Also it has registered important successes
telephones and Internet is increasing, this compared with its neighbors, also members of
being an opportunity for the development of EU. But the fact that there is a social capital
a knowledge-based economy. missing and that the legal environment is so
In conclusion, the most important changeable may affect the progress towards a
straights are represented by: highly qualified knowledge-based economy.
human resources; low cost of human Romania implemented strategies for using
resources; high flexibility of manpower; opportunities and eliminating threats,
presence of IT companies from US and considering the high qualified work force and
Europe. the interest for IT industry – as IT is an
Also, one must consider: sound software enabler for a knowledge-based economy.
industry base employing over 25,000 people; Also, there is a great opportunity for
strategic market location to serve EU; Romania accessing European funds, designed
workforce with knowledge of English, to support the development of knowledge-
French and German; inherent cultural and based economy that it has to use.
linguistic ability for rendering IT-enabled
services. 5. References
In short, weaknesses are represented by
the fact that: business environment lacks [1] APEC Economic Committee. Towards
credibility; high cost of telecommunications Knowledge-based Economies in APEC,
infrastructure; lack of credible investment APEC Secretariat, Singapore, 2000, available
policies keeping foreign investors and at http://www.apecsec.org.sg. Accessed
2013-March-12
companies; insufficient resources for
[2] Constantin, Sanda, “Capital markets and the
marketing and brand building; lack of cost of capital” , The proceedings of the
understanding of software quality, International Economic Conference “25
certification and development methodologies. Years of Higher Economic Education in
The opportunities consists of: Romanian Brasov”, 20-21 May 2005, Brasov
market for e-business, e-governance and the [3] Gera, S., Weir, T. The Knowledge-based
developing knowledge society; fast growing Economy and Economic Growth: theory and
West Europe IT market having cultural empirical evidence, New Economy Issues
similarities. Paper No.3, Department of Industry, Science
Also, there has to be considered: large and Resources, Canberra, 2001, available at
http://www.industry.gov.au.. Accessed 2013-
emerging global IT market for off shore
March-12
development, R&D, IT-enabled services; e- [4] Godin, B. The State of Science and
commerce necessitating skilled professionals; Technology Indicators in the OECD
IT deployment improving productivity of Countries, Science and Houghton, J. and
other sectors. Sheehan, P. 2000, A Primer on the
And the threats for Romania are: lack of a Knowledge Economy, Centre for Strategic
domestic market to enable industry to Economic Studies, Victoria University,
develop expertise; lack of communication Melbourne, 1996, available at
between government and industry. Some http://www.cfses.com. Accessed 2013-
other lacks include: lack of support programs March-12
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were analyzed by using software, SPSS for Considering individual level, from the
Windows, the results being the following. point of view of knowledge management
processes, the straights were and are
4. The results of the study represented by the creation and storage of
knowledge (4.040 and 4.112), because of the
After collecting the questionnaires and attitude and the performances of the
synthesizing the main results, for each employees.
process of knowledge management, it was Also, the perception regarding the
then calculated the balanced average of the individual performance concerning the
results for each of the variables of the development of the processes, namely
questionnaire. personal contributions to this development, is
The results are presented for the general favorable (4.178 and 4.558).
situation of the IT company regarding the
general situation and the knowledge 5. Conclusions
management processes, for each of the seven
elements of the model and also for other two After applying the McKinsey model, in
elements – attitude and performances – in 2009 and 2012, the conclusions are that the
using the processes of knowledge corporation evolves favorably towards the
management. development and improvement of the
From the point of view of McKinsey knowledge management processes at the
model, considering the development and the level of the basic processes.
improvement of the knowledge management Organizational aspects, that still
processes, the straights were and still are necessitate special attention consists of more
represented by strategy (4.690 and 4.720), implication of the employees for the
skills (4.791 and 4.811) and shared values improvement of the attitude for the
(4.702 and 4.705). knowledge management as a phenomena,
These figures attest the fact that the aiming to the development of storage
organization has a strong strategy regarding knowledge.
knowledge management processes and the The general conclusion of the paper is
organizational culture is favorable to the that, by providing a quantitative instrument
development of these processes. for evaluating knowledge management
Also the distinctive competencies have processes from the point of view of
determined the success of the development of development and improvement, both the
knowledge management processes. science field and the practice in knowledge
The weaknesses consisted ad still management matters is improved, the
consists of staff (3.090 and 3.110), meaning questionnaire and the model being one of the
their implication for the development of the most used and cited over the literature from
processes, which can be correlated with the now on.
managerial style (3.740 and 3.114), mainly
the neutral perception regarding the
stimulants, offered for the employees in order 6. References
to improve the knowledge management
processes. [1] Canadian Institute of Knowledge
From the point of view of knowledge Management, A Common KM Framework for
the Government of Canada, Frid Framework
management processes, the straights regarded
for Enterprise Knowledge Management,
and still regards sharing knowledge (4.448 Version 3.0, Ottawa, Knowledge-Enabled
and 4.449) and creation of knowledge (4.272 Business Management, 2003
and 4.445), the results being justified [2] Lefter, C. Brătucu, G., Răuţă, C., Chiţu, I.,
considering the characteristics of the main Bălăşescu, M., Marketing, vol. II, Braşov,
processes conducted within the organization, Transilvania University Publishing house,
centered on tacit knowledge. 2006.
The weakness, more correctly called [3] Metcalfe, A. S., Knowledge management and
aspects that need improvement, consisted and higher education. A critical analysis,
still consists of knowledge storage (3.431 and London, Information Science Publishing,
2006.
3.556).
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[4] Nicolescu, O., Nicolescu, L., Economia, firma [8] Waterman, R. Jr., Peters, T., Phillips, J.R.,
si managementul bazate pe cunostinte, Structure is not organization, Business
Bucuresti, Economica Publishing house, Horizons, no. 23, pg. 14-26.
2005. [9] APQC: APQC's roadmap to knowledge
[5] Pascale, R., Athos, A., The art of Japanese management,
Management, London, Penguin Books, 1981. http://www.apqc.org/portal/apqc/ksn?paf_gea
[6] Peters, T., Waterman, R., In search of r_id=contentgearhome&paf_dm=full&pagese
excellence, New York, London, Harper and lect=detail&docid=114710&topics=%20Kno
Row, 1982. wledge%20Management&process=%20Man
[7] Rao, M., Knowledge management tools and age%20Improvement%20and%20Change
techniques. Practitioners and experts [10] Van Der Westhuizen, D., Fitzgerald, E. P.:
evaluate KM sollutions, Oxford, Butterworth- Defining and measuring project success
Heinemen, 2005. http://eprints.usq.edu.au/346/
552
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Maftei Daniel
Stefan cel Mare University, Suceava, Romania
Faculty of Economics and Public Administration
danielmafthei@yahoo.com
Albu Angela
Stefan cel Mare University, Suceava, Romania
Faculty of Economics and Public Administration
angelaa@seap.usv.ro
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objective shared by the governments and the on the structure and operation of the
private sectors. This manual seeks to identify electricity sector and the associated trend
those issues that are the most relevant to towards power sector reform. The article
countries that are seeking to attract private focuses specifically on the drivers of
capital for their renewable energy. We electricity reforms in the developing world
complete this rational point of view with and on the potential for social and
Fred Beck and Eric Martinot. In their study environmental benefits from electricity
„Renewable Energy Policies and Barriers”[4] reform. Secondly, the article of Joanna
they noting the explosion of energy policy Lewis, a excelent comparation of wind
changes that occurred around the globe industry development in three different
during the 1990s. These changes have been countries: „A Comparison of Wind Power
driven by economic, environmental, security Industry Development Strategies in Spain,
and social concerns, and have in turn had a India and China” [9]. The paper compares
profound influence on renewable energy. The the manner in which three companies –
article therefore explores the barriers that situated in Spain, India and China – became
have traditionally faced renewable energy domestic leaders in the wind industries of
policies. The barriers to renewable energy are their countries. After a brief overview of the
subdivided into three broad categories; first, global wind industry, the paper presents case
under costs and pricing, secondly, legal and studies of India, Spain and China, and
regulatory factors are explored and finally are concludes with a comparative analysis of the
considered the factors that influencing the three countries. Each of the case studies
market performance of renewable energy explores the policy environment for wind
sources. energy and the business practices of the
In this renewable energy market context leading wind turbine manufacturer. In the
we remind the Rodney Janssen opinion same time we remind the documents of
concerning „The Evolving Renewable The European Wind Energy Association,
Energy Market”[6]. The publication explores Global Wind Energy Council and Romanian
the changing status of renewable energy Wind Energy Association.
sources and technologies. He discusses about
the future development of renewable energy 3. Wind energy in EU - market case study
technologies in terms of development of new
energy industries and markets and in terms of During 2011[11], 10,281 MW wind
the energy policies that may facilitate the energy were installed across Europe,
development of all these. Dr. Keith Kozloff including EU countries accounted for 9,616
makes an interesting analysis in „Electricity MW. EU investment in wind farms in 2011
Sector Reform in Developing Countries: were € 12.6 billion, the sector reached 10.2
Implications for Renewable Energy”[8]. In billion onshore and offshore at € 2.4 billion.
the face of growing demand for electricity From 10,281 MW of installed capacity in
and the increasingly apparent environmental Europe, 9415 MW were installed onshore
problems associated with carbon emission, and 866 MW offshore. This means that in
energy sector reform in developing countries 2011 offshore market fell slightly (by 1.9%)
will need to address the potential of than in 2010, but the prospects are
renewable energy sources says Kozloff. The encouraging in terms of preparation for new
article anticipates a trend towards the offshore projects. There are numerous offers
abandonment of centrally planned electricity for financing, suggesting a strong foundation
systems in developing countries and explores for future growth. In terms of annual
the impact of electricity sector reforms on installations, Germany was by far the largest
markets for renewable energy. market in 2011, installing 2,086 MW of new
In comparation terms we bring in capacity.
discussion another two studies. First, the Figure 1 - EU Member State market
article of Navroz Dubash, „Revisiting shares for new capacity installed during
Electricity Reform: The Case for a 2011 in MW. Total 9,616 MW
Sustainable Development Approach” [5].
This article explores the recent
transformation of the conventional wisdom
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Source: EWEA
• Wind power accounted for 21.4% of any other year, an increase of 37.7%
total capacity in 2011 electrical compared to 2010;
installations; • The largest capacitor installed in 2011
• Renewable installed capacity accounted than ever before - an increase of 3.9%,
for 71.3% of new installations in 2011: due entirely to renewable energy
32,043 MW out of a total of 44,939 MW installations.
of new capacity installed; • Since 2000, a total of 302.6 GW of new
• The capacity installed from renewable installed capacity was put into operation
sources in 2011 was greater than that of in the EU, of which 28.2% was wind
power, other renewables 47.8%, 90.8%
renewable energy combines with gases .
Figure 3 - EU power capacity 2000/2011
Source: EWEA
• For the third time since 1998 the EU • Annual installations of wind power have
energy sector installed more coal than increased steadily over the past 17 years
dismantled, highlighting the urgent need to 814 MW in 1995 to 9,616 MW in
for the EU to move to the target of 2011, an average annual market growth
reducing greenhouse gas emissions by of 15.6%;
30% by 2020, introduce a standard • A total of 93,957 MW is now installed
emissions performance and the decades in the European Union, the cumulative
period of subsidies for coal. installed capacity increased by 11% over
• EU energy sector continues moving the previous year;
away from oil and nuclear energy and,
with every technology continues to
dismantle more than install;
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6. Bibliography
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Mateescu Mihaela
CEIS, Romanian Academy
mateescuadina@yahoo.com
Suba Gabriela
Teacher Training Center Bucharest
gabrielasuba@yahoo.com
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Personal source
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Moraru Camelia
Ph.D. Student, Academy of Economic Studies, Bucharest
cami.moraru@yahoo.com
Popovici Norina
„Ovidius”University, Faculty of Economic Sciences, Constanta
norinapopovici@yahoo.com
Ștefănică Virginia
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increases growth rates. The study also found government, research and development are
that an increase in public revenues and public the most frequently cited examples of public
spending cuts increase economic growth goods provided, which contributes positively
rates[29]. In addition, the study found that to aggregate production. Many studies have
reducing the general budget of Romania by divided public spending on productive and
1% lowers economic growth by 2.59%. Thus, unproductive spending. According to
the study of Enache in 2009 concluded that Carboni and Medd, productive expenditures
fiscal policy has a role in increasing growth include spending on infrastructure, law,
rates by increasing the overall efficiency of education and training, while unproductive
revenue mechanisms[9]. expenditures include expenditures on
Ocran in 2009, in a study in South Africa national defense, national parks, social
during the period 1990-2004, conducted in programs.
order to determine the impact of fiscal policy Devarajan and others argues that studies
variables on growth, was found that differ in terms of government spending
consumption expenditure, capital formation analysis and studies are classified into three
and tax revenues have a positive impact on groups. Some economists consider variable
economic growth but the extent of the impact as needed to express fiscal policy, but others
of capital formation is less than the impact of have found it necessary to adjust this variable
government spending. into categories and groups, by analyzing
these groups individually, to identify the link
3. Budget expenditure and economic with growth.[8] The last group stressed the
growth need to share the costs into two parts, the first
called capital expenditure, working to
Literature on the relationship between stimulate investment and consumption, and
public spending and growth is quite extensive two included consumer spending that prevent
and can be divided into two main streams: or restrict growth. But with the development
one that supports the Keynesian theory of the of studies on growth, consumption was
positive impact of public expenditure on divided into government spending allocated
economic growth and other stream, which for production, including spending on
public expenditure influence negatively education, health, infrastructure and
economic growth. government spending for non-production.
For the first stream relevant works are
Holmes & Hutton and Aschauer , who found 4. Taxation and economic growth
a strong positive relationship between
government spending and economic In terms of public revenues from a general
growth[10][2]. On the other hand, Grier and perspective, any tax has a distorted potential
Tullock, analyzing the relationship between or real impact on economic growth because it
the size of government spending as a affects economic choices of individuals
percentage of GDP and economic growth in a (companies and individuals) on the activities
sample of 113 countries, found a negative they carry (production, investment,
impact on economic growth.[12] Similar consumption or savings). Income tax
results were obtained by Barro and Cashin negatively affects investment incentives and
[4][7]. The results of a study by Folster and resources companies, income tax from wages
Henrekson indicate a robust negative negatively affect both consumption and
relationship between public spending and saving, and individual investment in human
growth in a sample of rich countries covering capital. Consumption taxes affect individual
the 1970-1995 time period: an increase in the choices between work and leisure according
expenditure ratio by 10 percentage points is to Milesi-Ferretti and Roubini.[20]
associated with a decrease in growth rate of Given these characteristics of tax, Sala-i-
0,7-0,8 percentage points.[11] Martin grouped public revenues based on
Some studies have reached mixed results, their impact on economic growth: distorted
growth was strongly affected only by certain public revenues (which have negative effects
types of public expenditure. Public on economic growth), undistorted
infrastructure, communication and government revenue (which are neutral or
information systems, education funded by the have an insignificant impact on growth) and
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other public revenues (which have an (1) investment rate can be inhibited by taxes,
insignificant impact on economic such as personal and corporate income and
growth).[24] capital gains taxes;
Table 1 - Classification of public revenues (2) Taxes can slow the growth of labor
according to their impact on economic supply by influencing labor-leisure choice for
growth leisure;
Distorted undistorted Other public (3) Fiscal policy can affect productivity
public public revenue growth by discouraging effect on research
revenues revenue and development expenses;
Corporate VAT Custom (4) taxes can lead to an outflow of resources
tax duties to other sectors, which may have lower
Income tax General Other tax productivity and
sales taxes revenues (5) high taxes on labor supply can distort the
Social Excise Current non- efficient use of human capital, discouraging
security tax revenues workers through higher tax.
tax Harberger spoke about the relationship
Wealth tax Income from between government taxes and growth rates,
capital and found that high tax rates in the economy
Other income will limit foreign and local investments and
Source: Barro (1990) thus affect the growth rates of capital, which
will have a negative impact on employment
Numerous empirical studies have growth and reduce overtime that workers are
investigated the relationship between taxation willing to work, which reduces the marginal
and growth. Plosser and Kimg and Rebelo productivity of labor and reduce research and
suggest that an increase in tax leads to a development, which will lead to lower
reduction in growth while Kneller, Levine growth rates[13].
Renelt (1992) report an insignificant or even While some studies find that taxes have
positive correlation between the long-term effects on growth rate, others find
two.[23][25][15] On the other hand, Tosun no significant effect. After controlling
and Abizadeh found that economic growth as performed to determine the initial level of
measured by gross domestic product (GDP) GDP through different fiscal measures a
per capita, has a significant effect on the tax study finds that average and marginal tax
mix of OECD countries. Mendoza and others rates are negatively correlated with economic
concludes that the tax mix has no significant growth. However, both coefficients tax rates,
effect on growth.[28][18] marginal and average are not statistically
Relationship between fiscal policy and significant[6].
economic growth was also studied by Martin Helms examined the effects of increased
Zagler and Durnecker Georg, and concluded state and local taxes. He argues that a tax
that "taxes on savings, R & D, profits, increase can stimulate growth if they are used
premiums of capital and labor have a direct to finance development costs. Helms found
impact on the rate of economic growth, while that taxes have a significant negative effect
the total tax year rate has indirect effect on on economic growth, Helms regression
economic growth. coefficient indicating that the tax rate can be
Obreja L. Braşoveanu and Braşoveanu V., positive if production costs and finance
analyzing the relationship between taxation charges may be negative if the tax revenues
an grotwh on Romanian economy through are used to finance social transfers.
"regression technique application for the Redistributive public transfers can negatively
period 1990-2007 concluded that in Romania affect economic growth[14].
distorted and not distorted effects of taxes on
economic growth are negative[21]. 5. Budget deficit and economic growth
Numerous empirical studies have
investigated the relationship between taxation Impact of government deficit problem is
and growth. Engen and Skinner suggested even more complex. If deficits tend to reduce
five possible mechanisms through which economic growth, there will be a negative
taxes affect economic growth[16]: impact on long-term growth. Similarly, if
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there is a higher deficit today, there will be or delay growth, investments in physical and
further offset by a higher rate of consumption human capital - both can be affected by
or income tax, the rate of growth will taxation and government spending - can
decrease in the long term, according to affect balance.
Peretto. [22] In both directions of the literature, the
Begetar deficit could influence economic effect of fiscal policy on growth may be
growth through a transmission channel nonlinear. This can happen, for example,
represented by the interest rate. In the because the private sector's response to fiscal
literature, the explanation is that crowding policy can be nonlinear, which implies a
out increases the interest rate and reduce the complex relationship between the size, the
amount of savings available for private composition of public expenditure and
investment. To the extent that deficits are revenue and growth. According to Giavazzi
used for investment, total capital may not in industrialized and developing countries,
register a total loss. Moreover, the continuous non-linear effects of fiscal policy in
accumulation of public debt could undermine economies tend to be associated with large
long-term sustainability of fiscal policy and persistent increase in the primary deficit.
pursued by government authorities, with a
negative impact on economic growth.[1] 7. References
Ricardian vision is contrary, suggesting
that the deficit has no effect on growth. Since [1] Alessina, A, Perotti, R, Reducing Budget
the current deficits will be paid with higher Deficits, Swedish Economic Policy Review,
taxes in the future, households will save more 1996.
now than they would pay in the future. [2] Aschauer, A.A., "Back of the G-7 pack:
An important dimension in the analysis of public investment and productivity growth in
fiscal policy and economic growth is the the Group of Seven," Working Paper Series,
extent to which tax expenditures are financed Macroeconomic Issues 89-13, Chicago, 1989.
[3] Barro, R.,Determinants of economic growth-a
by distortionary taxation. Distortionary cross-country empirical study, NBER working
taxation decreases willingness to save and paper, 1996.
invest by reducing the rate of capital [4] Barro, R.J., "Government Spending in a
accumulation. Simple Model of Endogenous Growth,"
Journal of Political Economy, University of
6. Conclusions Chicago Press, vol. 98(5), 1990, S103-26.
[5] Benos, N., "Fiscal policy and economic
Regarding short-term effects of fiscal growth: empirical evidence from EU
policy on economic growth, there are a countries," MPRA Paper 19174, University
number of empirical research, primarily for Library of Munich, Germany, 2009.
[6] Botman, D., Kumar, M., Fundamental
industrial countries, dedicated to determinants of the effects of fiscal policy,
understanding under what fiscal conditions IMF Working Paper, 2006.
multipliers are small, and even negative [7] Cashin, P., "Government Spending, Taxes,
according to Alesina and Perotti, Alesina and and Economic Growth," IMF Staff Papers,
Ardagna and Perotti. According to Perotti Palgrave Macmillan, vol. 42(2),1995, 237-
consolidation tends to be expansionary when 269.
debt is high or growing fast, while Alesina [8] Devarajan, S., Swaroop, V., Zou, H., “The
and Perotti and Alesina and Ardagna notes, Composition of public expenditure and
that in addition to the size and persistence of economic growth” , Journal of Monetary
momentum fiscal, budget composition Economics 37, 313-344, Elsevier Science
B.V.
matters in explaining the various responses of [9] Enache, C., Fiscal Policy and Economic
private sector to fiscal policy (and therefore Growth in Romania, Annales Universitatis
increase effect)[1]. Apulensis Series Oeconomica, 11(1), 2009.
Potential long-term effects of fiscal policy [10] Holmes, J. M., P.A. Hutton, “On the Causal
on economic growth generated also Relationship Between Government
substantial attention, according to Tanzi and Expenditures and National Income,” Review
Zee, 1997. The most recent work in the of Economics and Statistics, 72, 1990, 87-95.
growing field of endogenous growth [11] Folster, S., Henrekson, M., "Growth effects
suggests that fiscal policy can either promote of government expenditure and taxation in
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Neagu Olimpia
"Vasile Goldis" Western University of Arad
olimpian2005@yahoo.com
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techniques
NGOs are also, knowledge-intensive
Specifiable
organisations; their knowledge capital is
heterogenous, widespreas, rarely formalized Independent Interdependent
and unstable (due to volunteer workers). The
Nature of interactions
creation of a unique corpus of knowledge,
formalized and useable by all members is a
Source: adaptation from Bhatt, 2002, p.4
challenge that the NGOs are facing at present
[8].
Between individual and organisational
In the cell 1, the level of interactions
knowledge there are conceptual differences.
between organisation's members, employees
On the one hand, individual knowledge is
or volunteers is very low and the tasks are
created based on differences in each person’s
speciables. Organisations are likely to
cognitive abilities. What one individual
empower their members to be discrete. In the
learns is different from that of another,
cell 2 the level of interactions is low, but
because of differences in their respective
employees or organisation's members who
cognitive skills. On the other hand, learning
are experts in their field are able to solve
at the organisational level involves a social
non-specifiable tasks. In this group we can
dimension. Learning occurs at the
include project managers and seniors
organisational level by: interaction between
managers. In the cell 3 the level of
people, sharing of ideas and information; and
interactions is high and the tasks are
development of common schemas and
complex. To deal with these kinds of
language [1],[10].
conditions, employees need to continually
The knowledge in the organisation
share their expertise with others so that they
represents a consensus or agreement on ideas
coordinate their tasks in unison [2]. In the
and information [5]. While employees may
cell 4 the level of interactions is high and the
have their separate knowledge, what becomes
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tasks are not very complex. In these documents containing new knowledge.
conditions, organisations often follow rules Whithin NGOs, knowledge acquisition is
and procedures (for instance: facilitated by the transfer of existing
communication, administrative or admission knowledge to others. The success of this
procedures). transfer depends on the effectiveness of
One of the main constituents of communication processes and the learning
organisational knowledge is "interactions". capacity of NGOs members and employees.
Within NGOs, the internal interactions are The existing knowledge can be used and re-
kept at maximum by strenghtening the used by the members and employees through
organisational culture. There are several the organisational structure (i.e. networks,
methods to stimulate internal interactions: hierarchical levels) rules and procedures
formal, informal and periodical meetings (i.e.for internal communication, for
with members and volunteers, team working, administrative issues, documents
training sessions, e-groups, intranet, internal management).
newsletters. If individual knowledge is not Figure 2 shows how knowledge, as a
shared with others, it has no influence on the result of learning process, is created,
organisational knowldege base. One of the transferred, used, shared and re-used within
most important task of NGO's management is NGOs. There are two cycles generated by
to stimulate the members interactions so their learning, one for knowledge creation and
individual knowledge is amplified and other for its utilization. The common element
internalized. of both cycles is the knowledge transfer. This
process is amplified in NGOs through a
3. Knowledge management in NGOs concern for strenghtening the organisational
culture and for internal interactions
Lately trends in knowledge management stimulations.
research show an increasingly psychological
view of knowledge management Figure 2 Knowledge management cycle within
[3],[6],[11],[12],[13]. Knowledge is NGOs
considered to be that which is embedded Learning
within individuals and occurs either as a
result of experience, or is generated through
thinking or reasoning; otherwise it remains as
knowledge knowledge
data or information [3]. From this
creation utilization
perspective, knowledge can be seen as an
activity and data and information are objects. knowledge
transfer
This perspective is very close to the context
of NGOs, where members are committed to
give a part of their expertise and time to knowledge knowledge
contribute to the NGO's goals achievement. acquisition
Within NGOs, the reasoning and social sharing
interactions are driven factors of knowledge
creation, acquisition, transfer, utilization and
re-utilization. The communication processes
within an NGO facilitate all these knowledge Source: author's own view
processes. For instance, knowledge creation
can be driven by curiosity or in a response of 4. Organisational learning and knowledge
an internal or external problem, and refers to management within NGOs
the deliberate and purposeful collation of
facts and observations to generate new or Organizational learning and knowledge
novel ways of understanding a particular management processes are interrelated as it is
phenomenon. Annual reports, campaigns shown in the Figure 2. Going into details of
reports, general assemblies resolutions, the content of these processes, we can notice
findings of brainstorming sessions or that organisational learning generates
workshops, and results of strategic planning knowledge and knowledge underpins
processes are some examples of NGOs organisational learning. Table 1 offers an
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overview of differences and similarities offering social added value for their
between organisational learning and beneficiaries. Managing knowledge within
knowledge management. Organisational NGOs means first, enabling the
learning is a process of harmonisation of organisational learning and second,
individual and collective learning processes, stimulating the internal interactions between
focused to increase the satisfaction of NGOs individuals, between and within various
beneficiaries and stakleholders while groups of members, staff and volunteers.
knowledge management means the processes
by which knowledge is acquired, shared, 6. References
used, stored, used and re-used. Furthermore,
organisational learning provides a purpose [1].Bechky, B. ‘‘Creating shared meaning across
for the use of knowledge but knowledge occupational communities: an ethnographic
management, by its component processes, is study of a production floor’’, paper presented
a means to enable organisational learning. at the Academy of Management Meeting,
Chicago, IL, 1999.
Unlike organisational learning, knowledge
[2].Bhatt,G.D. 2002. ”Management strategies for
management is context-independent, individual knowledge and organisational
meaning that the circumstances of knowledge knowledge”, Journal of Knowledge
utilisation have no relevance when the Management, Vol.6, No.1, 2002 pp.31-39.
knowledge is developed. [3].Brauner, E. and Becker, A. ‘‘Beyond
knowledge sharing: the management of
Table 1 Link between organisational transactive knowledge systems’’, Knowledge
learning and knowledge management and Process Management, Vol. 13 No. 1,
2006, pp. 62-71.
Organisational Knowledge [4].Britton, B., ”Organisational learning in NGOs:
learning management Creating the Motive, Means and
-is the intentional use of -is the systematic Opportunity”, Praxis Paper 3, International
collective and processes by which the NGO Training and Research Center, 2005.
individual learning knowledge required by (http://www.intrac.org/data/files/resources/39
processes to an organisation is 8/Praxis-Paper-3-Organisational-Learning-in-
continuously transform acquired, distilled, NGOs.pdf ) accessed 1 April 2013.
organisational shared, stored, [5].Daft, R.L. and Weick, K.E. ‘‘Toward a model
behaviour in a direction retrieved and used. of organizations as interpretation systems’’,
that is increasingly - is a means to enable Academy of Management Review, 1984, Vol.
satisfying to its organisational 9, pp. 284-95.
stakeholders. learning. [6].Hislop, D.,‘ ‘Linking human resource
-provides a purpose for - can be context- management and knowledge management via
the use of knowledge. independent. For commitment: a review and a research
-is always context- example, good agenda’’, Employee Relations, Vol. 25 No. 2,
specific. The purpose of practices can be 2003, pp. 182-202.
learning is to solve developed and [7].Hyvarinen, J. and Wall, E., Tips for global
problems or address disseminated without activitis about running sound organisations
challenges and awareness of the (http://www.gdrc.org/ngo/global-ngos.html)
knowledge is selected circumstances in accessed 2 April 2013.
because of its utility in which it may be used. [8].Lettieri, E., Borga, F. and Salvodelli, A.,
the specific - is usually supply ”Knowledge management in non-profit
circumstances. driven. management”, Journal of Knowledge
-is usually demand led. Management, Vol.8 No.6, pp.16-30.
Source: [4], p.8 [9].Lyles, M.A. and Schwenk, C.R. (1992), ‘‘Top
management, strategy, and organizational
5. Conclusions knowledge structures’’, Journal of
Management Studies, Vol. 29, 1992, pp. 155-
Organisational learning and knowledge 74.
management are of key importance for NGOs [10].Matusik, S.F. and Hill, C.W.L., ‘‘The
utilization of contingent work, knowledge
in the process of social value creation. NGOs
creation, and competitive advantage’’,
which are not able to internalise the learned Academy of Management Review, Vol. 23,
lessons and to learn from previous 1998, pp. 680-97.
experiences achieve a low effectiveness in
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Negoescu Gheorghe
“Ovidius” University of Constanţa, Faculty of Economic Sciences
negoescugl@yahoo.com
Negoescu Liliana Georgeta
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them to a pizza tin. Then he got hungry and Year The total annual Total annual
the now magnetized words made their way to costs of production incomes (tens
the refrigerator door. Before too long, Dave including of thousands)
wasn't the only one rearranging his would-be
investment effort
song lyrics. When friends came over, Dave
noticed they started to move the magnets (tens of thousands)
around, amusing themselves by writing the 5 22 178
first magnetic poems. 6 24 194
After seeing his friends having fun, Dave 7 26 104
thought he might be able to sell his word kits 8 20 62
at a local craft fair. He made up 100 kits and
set up shop at Calhoun Square, a mall in the 9 12 250
Uptown area of Minneapolis. All 100 kits 10 28 270
were gone after 3 hours. That night, he Source: author
recruited as many friends as pizza and beer In the following, I propose to describe the
could draw and made up more kits--all of evolution in the 12th year, the business (a
which sold as rapidly the next day. total annual production costs and total annual
From these beginnings, Magnetic Poetry® income) by developing a dynamic forecasting
has now sold over three million word kits, model with anticipatory variables, starting
over one billion word tiles--growing from the from the premise of total income realized in
Original Kit to a kid's line of kits, to foreign 11th year of 250 um with 50u.m. less than
language kits, to Voice/theme kits. the expected revenue for the same year. The
forecast of total income in the 12th year will
Figure no. 5. Promotion on company’s be estimated using the relationship [4]:
website Xp12- Xp11=λ(X11-Xp11)
Where:
X11=250 um
Xp11= 300 um
Source: http://magneticpoetry.com/ Parameter λ will be estimated using the
model:
In 2001, Kapell was decided to sell the Yt=b1xt-1+b2yt-1+zt
40% of the second company to U.S. Where: b1=aλ1 și b2=1-λ2
Magnetix so that he can concentrate on After solving the model we obtain the
developing new products and marketing following results:
ideas for Magnetic Poetry. The coefficients of the variables:
The radiography of the business of the xt-1 0,0925 (b1)
first ten years is showing a compared yt-1 0,3325 (b2)
evolution of total incomes as compared with Standard errors:
total annual production costs including xt-1 0,0020
investment effort as follows: yt-1 0,0062
The result of T test:
Table no. 1. Evolution of total incomes xt-1 46,8932
compared against the total annual yt-1 54,0535
production costs including investment effort R-squared 0.9983
Year The total annual Total annual Adjusted R-squared 0.9981
costs of production incomes (tens sz 0,8071
including of thousands) d 2,96
investment effort Applying the results obtained we have:
(tens of thousands)
1 160 200
2 72 240 But:
3 48 300
4 44 80
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9. References
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Oncioiu Ionica
Dimitrie Cantemir Christian University
nelly_oncioiu@yahoo.com
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can help to isolate key variables to build stage and applying it to new data in order to
predictive models for management decision generate predictions or estimates of the
making. While data mining and knowledge expected outcome. For example, to quickly
discovery in databases are frequently used identify transactions which have a high
interchangeably but actually data mining is probability of being fraudulent, a credit card
part of the knowledge discovery process (4). company may want to deploy a trained model
Data mining makes us prospective rather than or set of models (3), (4).
retrospective. Data mining enables
companies to segment their customer 2. Literature review
database and to tailor products and services
to the needs and purchasing power of According with literature review data
individual groups of customers so that profits mining can be considered to be a blend of
earned are in right proportion of cost of three research areas the statistics, the
serving .The data mining aim at simplifying artificial intelligence, and data base (7), (6),
and automating the complete statistical which until very recently was not commonly
process, from data sources to model recognized as a field of interest for
application. The purpose is to build statisticians. Due to its applied importance,
intelligence into the software. From the past however, the field emerges as a rapidly
few years it has replaced the statisticians and growing and major area where important
constructed better models .The Statistical theoretical advances are being made. Data
expertise required only to compare different mining is now become the most needed tool
techniques. The ultimate goal of data mining in different ways:
is prediction and has the most direct business Resource Planning – It guides in the
applications (3), (6). planning and allocation of resources for
The process of data mining has three research.
stages as shown in Figure 1: Office Management – It helps
1) Initial Exploration institutional researchers to identify on which
2) Model Building with validation domain they have strength and for which
/verification domain they need to work with other
3) Application of the model to new data / departments. It helps them determine
Deployment standard operating procedures, e.g.,
Figure 1. Data Mining Process understanding how data are processed into
data warehouses.
Satellite sensing: There is a countless
number of satellites around the globe. Some
are geo-stationary above a region, and some
are orbiting around the Earth, but all are
sending a non-stop stream of data to the
surface. The data thus send by them is in
huge form and for analyzing it we need data
mining.
I) Initial Exploration: In this stage data Personal Data: Governments,
preprocessing activities are done that may companies and organizations such as
involve data cleaning, data transformations, hospitals, are stockpiling very important
selecting subsets of records, and from large quantities of personal data to help them
data sets selecting the most relevant variables manage human resources, better understand a
so that the number of variables or fields can market. So, managing that information can be
come to a manageable range. done through data mining.
II) Model Building: It is an elaborative Engineering purpose: In different
process. That involves considering various engineering fields data mining is getting
models and choosing the best one based on places because they generate a tremendous
their predictive performance by competitive amount of data. For example in software
evaluation of models. engineering powerful tools for management
Deployment. This stage involves using and maintenance are required as large
the model selected as best in the previous
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amount of data with code, function libraries, similarity between instances of one segment
objects, etc need to be managed. and minimizes the similarity between the
Business Industry: To survive in a instances of different segments.
highly competitive world, every transaction Predictive analysis is using business
in the business industry is to be remembered intelligence data for forecasting and
for eternity but the effective use of the data in modeling. It is a way to use predictive
a reasonable time frame for competitive analysis data to predict future patterns. Using
decision-making is definitely the most events of the past, managers are able to
important problem to solve for businesses. estimate the likelihood of future events.
And no other than data mining can do it Data mining aids predictive analysis by
efficiently. providing a record of the past that can be
Travel Agency: A travel agency analyzed and used to predict which
company with a large direct sales force can customers are most likely to renew, purchase,
apply data mining to identify the best or purchase related products and services.
prospects for its services. It can use data Clustering is particularly useful in cases
mining to analyze its own customer where the most common categories within
experience and can find the best possible way the data set are not known in advance. If a set
of providing services with increase profit. of clusters is optimal, within a category, each
Big Bazaar: A large consumer goods data point will in general be more similar to
company like big bazaar applies data mining the other data points in that cluster than data
to improve its sales process. It collects the points in other clusters. Clusters can be
data from consumer panels, shipments, and created at several different possible grain-
competitor activity in order to understand the sizes: for example, enterprises could be
reasons for liking a brand and store. Through clustered together (to investigate similarities
this analysis, the owner can select and differences between enterprises),
promotional strategies that best reach their workers could be clustered together (to
target customer segments. investigate similarities and differences
Data mining uses data on past between workers), or student actions could
promotional mailings to identify the targets be clustered together (to investigate patterns
most likely to maximize return on investment of behavior).
in future mailings. And helps in finding We have conducted the survey on workers
trends and behavior. of 415 enterprises in order to find some
Data mining tools scans through databases interesting behavior of workers. We gave
and identify previously hidden patterns in them a feedback from having different
one step. An example of pattern discovery is questions regarding their study behavior and
the detection fraudulent credit card interests. Our aim is to know how many
transactions to identify anomalous data that workers are satisfied with current educational
could represent data entry keying errors. environment of enterprises. Before clustering
the first thing is to know the number of
3. Research methods and discussion of clusters we follow up the formula (10):
results k ≈ (n/2)1/2
where n is number of data points.
Clustering is a technique of making According to this we constructed six
groups or clusters from a set of objects.. clusters, where n is 60. Cluster1: Includes
Clustering is also called unsupervised those workers having most memorable hours
classification, because the classification is 415 enterprises Sciences. Cluster 2: Includes
not dictated by given class labels. There are workers that like attending works
many clustering approaches all based on the regularly.Cluster3: Includes those workers
principle of maximizing the similarity having percentile score above 60. Cluster4:
between objects in a same class (intra-class includes those workers having sports interest.
similarity) and minimizing the similarity Cluster5: Includes those workers that like
between objects of different works (inter- more courses to be offered 415 enterprises.
class similarity). In a cluster analysis the data Sciences.Cluster6: Includes those workers
is grouped with the aim of placing instances that likely to donate more for college when
in segments in a way that maximizes the they are got jobs. We use hierarchical
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Conclusion
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References
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The simulation methods are implemented A false dilemma parasite the debate about
to develop students' professional skills and the nature of the education process: theory or
competencies in the economic field, making practice? The issue has long been resolved.
the link between the academic and business Since antiquity, school is considered to be at
environments. The paper presents these the same time an institution that creates
methods of simulation in areas such as trade, personalities itself and for itself, (general
international business, tourism and banking, knowledge, culture, behavior, etc.), and an
applied in the European Program education forum for citizenship (civic
POSDRU/90/2.1/S/63442 project. attitude, civilization, social utility). The
modern University [5] should provide
Key words: educational process, business equally theoretical knowledge and practical
simulation, teaching methods skills to form intellectual personalities and
J.E.L. classification: A23, F23. professionals in certain areas. In other word,
there is no theory or practice, but theory and
practice. In this respect, the professor (or
1. Introduction tutor) must create an educational framework
characterized by several dimensions:
Business simulation is based on a discovery (or creation of knowledge through
computer program that processes the research), integration (i.e. the application and
decisions of different economic actors, thus the interdisciplinary use of knowledge),
reproducing the characteristics of a application (i.e. addressing and solving social
competitive environment virtually. problems by using knowledge) and education
By using assessments made after the (i.e. the use and the transfer of some rigorous
adoption of each decision, students learn the methods for training the students).
extent to which decisions led to the
strengthening of the market position of the 3. The importance of simulation models
company.
The simulation allows the One of the human activities known since
experimentation of a virtual market, based on the dawn of civilization, the simulation-
the motto "Learning business by doing meaning the imitation of real processes (in
business" vivo) by artificial practice (in vitro) - has
acquired great importance in the past decades
in the educational process in general, and for
the creation of specialists in the economic
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of "learning” and entertainment games. Once again, these questionings are not to
The participation in the game is be regarded as a check-up mechanism or
conditioned by the procurement of a proof of the professor’s position of
minimum level of knowledge without authority (as students generally consider
which the work of the "players" is purely these to be the case when faced with the
formal, mechanical. (There are students direct request for an answer), but as
who have real skills for commercial being driven by the requirements of the
activities - for example for negotiations – game, its rules, which - supposedly, were
but who are not constrained to learn the prior understood and accepted by
basics of the profession and act purely everyone.
intuitive. However, after a period of On the other hand, brief tests during the
enthusiasm, soon they get bored of the course of the game, where the answer is
game, because they are not motivate by a requested from the entire student mass, are
higher goal than that of the pure useful and serve to motivate learning and
"bargaining"). thorough studying.
Therefore, a preliminary selection of the Of course, the features and mechanism of
players can be envisioned, on the basis of the simulation presented above are not
certain tests related to specific issues, tests intended to transform it into the so called
which students were previously informed “classic” seminary, a label attributed to the
about, with a bibliography of their own. It is tiresome academic seminary (during which
not so much about denying access of not much is being accomplished), unable to
disinterested students, which do not study in engage students, rigid. In fact, this latter
due time, but more about managing to tackles the other coordinate – in relation to
distribute fairly each group member to the the game – of the space where the real
available positions within the enterprise (or seminary activities take place. Utter rigidity
according to the role to be played, after the is just as unjustified as pure simulation.
Latin suum cuique tribuere – to render every
one his own). Two objectives are thus And thirdly, the simulation is also an
attained: the test stops being a “necessary experiment, reproducing in the classroom
evil” for students, because the motivation real life economic situations. The business
comes from the very requirements of the game or other simulation models are a way to
game; this will ensure a distribution of produce in vitro certain economic
students to activities based on competence phenomena and processes without the
rather than preferences, or simply arbitrarily. adverse consequences that the manipulation
• During the course of the game it is ("sorcerer's apprentice") may have in vivo.
necessary – from the part of the tutor - a
continuous and explicit appeal to the 4. A successful application: "Practice in
specialized knowledge of students, used simulated enterprises"
by them in the formulation and
implementation of any decision and in Activities within the strategic project
the realization of all activities involved in "Real access to the labor market through
the simulation. Moreover, periodically, a simulated enterprises" allowed students to
student may be questioned upon certain become familiar with the business idioms and
specific issues pertaining to the domain economic transactions similar to those in the
of the simulation, the motivation for this real business environment. The project was
request being driven by the rules of the initiated by The "Ovidius" University,
game. At the same time, it can also be Constanta, in partnership with the Bucharest
proved that the correlation between the University of Economic Studies, The
individual achievements (including, or "Alexandru Ioan Cuza" University, Iasi, The
especially, the answers given to the University of Timişoara and the Structural
questions posed by the professor) and the Consulting Group and had as main objective
overall performance of the team, to the creation of an integrated, inter-regional,
which the students belong to, represents a simulated enterprise network, for the
mobilizing factor in the acquisition of development of professional skills and the
knowledge by each member the group. improvement of labor market insertion of
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graduates coming from economic faculties, enthusiasm by the primary beneficiaries, the
on the basis of partnerships between students.
universities and real enterprises. [4] The simulation models used in the study
From the Bucharest University of programs offer students an experience that
Economic Studies, 960 bachelor students and can be used in real life, allowing at the same
96 master students were involved in the time for the development of entrepreneurial
project. Student practice in simulated competences.
enterprises was organized in four modules
that ran for 12 weeks as follows: in the first Acknowledgment
stage (the first 4 weeks), the activities
conducted had as main objective the The research and publishing of this article
development of the domain-specific has been financially supported from the
simulated enterprise -trade and international project "REAL ACCESS TO LABOUR
business ; tourism; banking; in the second MARKET BY SIMULATED
stage (next 4 weeks) there were conducted ENTREPRISE", Contract no.
specific operations pertaining to the activities POSDRU/90/2.1/S/63442, that is coordinated
carried out by the simulated enterprises, with by the Ovidius University from Constanta
the help of the ERP component; in the last and financed by the European Social Fund
round (last 4 weeks), students participated in through the Sectorial Operational
simulations by using the TOPSIM software. Programmed Human Resources
[8] Development 2007-2013, Priority Axis 2
The simulation software used during "Linking lifelong learning to the labor market
practice in each of the four modules necessities", Key area of intervention 2.1
(differentiated according to the study domain 'Transition from school to active life"
- trade, tourism and banking) have helped
with learning and developing the skills References
needed to manage a business, the three
programs being based on the idea of a "flight [1] Boyer E.L., Scholarship reconsidered:
simulator for managers " (See Table 1) Priorities of the professoriate, San Francisco:
Jossey -Bas
Tabel 1 Mandernach, 2012
Trade- Tourism Banking [2] Jain, L. C.; R. J. Howlett, N. S. Ichalkaranje,
International G. Tonfoni, „Virtual environments for
Business teaching & learning”. World Scientific, 2002,
p. 20, ISBN 9812381678.
Learning The successful Identifying the
necessary development of a individual factors [3] Klein, Ronald D., „Adding international
principles for tourist which affect the business to the core program via the
business attraction success rate of a simulation game”, Journal of International
administration (mountain resort) bank Business Studies, Vol. 15, No. 1, Palgrave
Defining with the help of Identifying and
strategies at the diverse economic integrating the Macmillan JournalsStable, 1984, p. 151-159
enterprise level and social different refinancing [4] Paraschiv D., Belu M., Cercel M., Roxana
Understanding instruments options BarleaR, Developper des competences
the basic Understanding transversales chez les futurs economistes,
principles of business “reports”
marketing and making team Towards a more specialised european
decisions framework for self assessing languages
Managing difficult competencies, Metropulitan University
and complex Prague, 2012
decisions even in
periods with high [5]Popa I., Belu M.G., Paraschiv D.M, Education
uncertainty and Competitiveness in the Globalization Era,
The International Economic Conference
Source: Topsim, Tata Interactive System „European Integration – New Challenges-
EINCO 2013
5. Conclusions [6] Puiu, Alexandru; Calciu, Mihai, Instruirea de
comert exterior asistata de calculator,
The new teaching-learning methods based litografiat ASE, Bucuresti, 1988, p. 112
on the new technology are becoming more [7] Ţarţavulea Ramona Iulia, Belu Mihaela
Gabriela, Paraschiv Dorel Mihai, Using
and more popular, being received with
Business Simulation as a Complementary
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innovation, it seems that small and medium externalities and innovation ones, which are
enterprises (SME’s – with less than 250 difficult to be assessed in monetary terms [2].
employees) have a central role, as most Therefore, an interdisciplinary research
innovative and creative findings are usually would be helpful in analyzing eco-
generated by them, according to a study innovation, and environmental policy should
carried out by EIM and Oxford Research [2] be coordinated with the innovation policy to
The future growth of eco-innovation is yield the best results [14].
expected to be significant, that is why it is International institutions and
garnering greater and greater attention. Eco- organizations have grasped the pressing
innovation is a relatively recent concept. importance of sustainable development, and
Fussler and James [6] were among the first to have integrated measures for its facilitation in
come up with the concept. the policies and regulations.
The European Commission in a 2011 The Europe 2020 strategy is the EU’s
communiqué [5], defined eco-innovation as growth strategy for the coming decade and
“any form of innovation resulting in or among its objectives are the increase in
aiming at significant and demonstrable innovation and the solving of the
progress towards the goal of sustainable energy/climate change problem. The
development, through reducing impacts on established objectives are to be implemented
the environment, enhancing resilience to by employing a series of Flagship Initiatives
environmental pressures, or achieving a more aimed at the primary challenges facing the
efficient and responsible use of natural European Union.
resources.” The Innovation Union Flagship Initiative
Another definition is provided by Kemp is addressing the innovation challenge. Its
and Foxon [8]: “Eco-innovation is the purpose is to ensure that: innovative ideas are
production, application or exploitation of a promoted, and ultimately implemented so
good, service, production process, that new products and services can be
organizational structure, or management or developed, along with the improvement of
business method that is novel to the firm or existent ones, and that competitiveness and
user and which results, throughout its life growth are encouraged and new jobs are
cycle, in a reduction of environmental risk, created.
pollution and the negative impacts of The Innovation Union Flagship Initiative
resources use (including energy use) is committed to developing the Eco-
compared to relevant alternatives.” innovation Action Plan (EcoAP). EcoAP
Eco-innovation is also known as focuses on “boosting innovation that results
environmental innovation, “green” in or aims at reducing pressures on the
innovation or sustainable development environment and on bridging the gap
innovation [13]. between innovation and the market” [5]. The
The OECD [12] considers eco-innovation Resource Efficient Europe Flagship further
to be basically the same as any other type of supports eco-innovation and facilitates
innovation, but it has two distinctive features: related investment.
• the innovation has to result in a reduction A possible classification of eco-
of the environmental impact, no matter if innovation can be the following one [9]:
this effect is intended or not • environmental technologies (pollution
• and the scope of eco-innovation may control technologies, cleaning
transcend the conventional organizational technologies, cleaner process technologies,
boundaries of the organization innovating green energy technology, water supply,
and may involve broader social etc.)
arrangements that trigger changes in • organizational innovation for the
existing socio-cultural norms and environment (pollution prevention
institutional structures. schemes, environmental management and
As a study field, eco-innovation lies at the auditing systems, chain management, etc.)
intersection of environmental economics and • product and service innovation offering
innovation economics. This explains why environmental benefits (new or
eco-innovation produces two sets of positive environmentally improved products,
externalities, mainly: environmental environmental services – such as waste
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averaging the values of the social follow, creativity can transcend easier
sustainability-adjusted GCI and the organizational barriers and not be hampered
environmental sustainability-adjusted GCI. in its initial stages.
The latter two are computed by multiplying The case for Romanian SME’s seems to
the GCI with the social sustainability be that they are lacking is the interest and
coefficient, respectively, with the initiative, but not in the implementation
environmental sustainability coefficient. capabilities, which appear to be quite
The score Romania obtained for the favorable to eco-innovation.
sustainability adjusted CGI was 3.72 (a Because innovations are more easily
decrease of approximately 9% from the diffused within business networks and
overall GCI) and for the environmental clusters, SME’s are often left in the dark as
sustainability adjusted GCI the score was they have a limited capacity of accessing
3.73. such research (unlike larger organizations,
Thus, environmentally wise, Romania is such as multinationals, which benefit from
lagging behind other European countries extensive international support networks).
(such as Bulgaria and Hungary– with One way out of this predicament would be
environmental sustainability-adjusted GCI’s the establishment of SME clusters, with the
scores of 3.97 and 4.32). intention of favoring innovation diffusion,
accelerating research, strengthening
5. Improving Romania’s competitiveness cooperation and spreading research findings
by focusing on eco-innovation more easily. By being a part of such cluster
structures, SME’s can have a mini replica of
As stated before, SME’s have a central the extensive business networks
role in the eco-innovative domain. multinationals benefit from. This will allow
Consequently, encouraging the eco-initiative them to be able to compete more efficiently
at the microeconomic level can represent a with the big players on the market (resulting
good starting point for Romania in the in an overall boost in competitiveness at the
process of increasing environmental industrial and business level).
innovation. Romania needs to adjust its regulatory
However, in a study conducted by Voicu- framework to answer the needs of these
Dorobantu, Paraschiv and Marinoiu [15], the small, but important economic agents, whose
findings for Romanian SME’s were that they: potential for eco-innovation would be
• lack long or medium term objectives in the substantial if the right conditions were in
R&D department and their approach is place. Special programs for research and
„work as it goes along” cooperation can also be developed at national
• do not perceive eco-innovation as having level, in order to facilitate access to funding
marketing potential and thus do not have a and research and to provide a certain level of
clearly defined or implemented corporate training.
social responsibility strategy
• implement eco-innovation because of 6. Conclusions
regulation purposes and not because they
recognize the potential efficiency gains Countries in the innovation-driven stage
• most innovations are obtained from are considered to be the most competitive
business networks than from own R&D ones, according to the World’s Economic
departments (only 15% of the interviewed Forum Global Competitiveness Index. This
SME’s performed R&D activities) highlights that innovation has a strategic role
A positive finding was the fact that SME’s in the development of competitive
have a centralized decision making process, advantages and plays a key role in economic
which allows for a more straightforward growth.
implementation of eco-innovation initiatives. With the attention of policy makers turned
The benefit is that decisions can be taken is more and more towards sustainable
less time, enabling the organization to alternatives, green innovation or eco-
respond faster to market changes. And as innovation will need to be strategically
there are fewer hierarchical levels, with pursued and implemented in the future.
fewer internal procedures and regulations to
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For the successful implementation of such [6] Fussler, C., James,P., Driving Eco-Innovation:
initiatives in Romania, a reconsidered A Breakthrough Discipline for Innovation
regulatory framework for innovation, and and Sustainability, Pitman Publishing,
especially for eco-innovation, should be London, 1996
[7] Janicke, M., “Ecological modernisation: new
developed. In order for it to work, the
perspectives”, Journal of Cleaner
framework should integrate special Production, Vol.16, Issue 5, March, 2008, pp.
provisions that support the activity of local 557-565
players in the eco-field, by facilitating access [8] Kemp, R., Foxon,T., Eco-innovation from an
to and knowledge of: financing options, innovation dynamics perspective, Deliverable
specialized training, consultancy services and 1 of the Measuring eco-innovation Project
cluster research (which is beneficial for for the European Commission, August, 2007
sharing the risks and costs involved in [9] Kemp, R., Foxon,T., Typology of eco-
research activities and for obtaining scale innovation, Deliverable 2 of the Measuring
economies). eco-innovation Project for the European
Commission, August, 2007
Such an innovation framework should be
[10] Kemp, R., Horbach, J., Measurement of
included in the larger competitiveness competitiveness of eco-innovation,
framework and the corresponding Deliverable 13 of the Measuring eco-
competitiveness strategy. Romania should innovation project for the European
carefully plan its transition away from the Commission, March, 2008
efficiency-driven stage towards the [11] OECD, Globalisation and Competitiveness:
innovation-driven one, in order to have a Relevant Indicators, STI Working papers
clear view of the measures to be taken and 1996/5
the objectives to be attained in this direction. [12] OECD Policy Brief, Sustainable
Manufacturing and Eco‑innovation:Towards
References a Green Economy, June, 2009
[13] Pujari, D., “Eco-innovation and new product
development: understanding the influences on
[1] Barsoumian, Sarine, Severin, Astrid, van der
market performance”, Technovation, Vol. 26,
Spek, Titus, Eco-innovation and national
Issue 1, January, 2006, pp. 76–85
cluster policies in Europe. A qualitative
[14] Rennings, K., “Redefining innovation —
review, Greenovate! Europe EEIG,
eco-innovation research and the contribution
Deliverable D9-4 for the European Cluster
from ecological economics”, Ecological
Observatory, Center for Strategy and
Economics, Vol. 32, Issue 2, February, 2000,
Competitiveness, Stockholm School of
pp. 319–332
Econmics, Brussels, July 2011
[15] Voicu-Dorobantu, R., Paraschiv, D.M.,
[2] EIM and Oxford Research for the European
Marinoiu, A.M., “Eco-Innovation in
Commission, DG Environment, Contract no
Romanian SMEs”, 3rd World
02010404/10/563441/E4, Financing Eco-
Multiconference on Applied Economics,
innovation.Final Report, January, 2011
Business And Development (AEBD '11), July
[3] Elkington, J., Cannibals with Forks: The
1-3, 2011, Iasi, Romania
Triple Bottom Line of 21st Century Business,
[16] World Economic Forum, Global
Capstone Publishing, Oxford, 1997
Competitiveness Report 2012-2013, 2012
[4] European Commission, Communication from
the Commission to the Council, the European
Parliament, the Economic and Social
Committee and the Committee of the Regions,
“Industrial Policy in an Enlarged Europe,
COM/2002/0714 final [online]
Available at:
<http://eurlex.europa.eu/LexUriServ/LexUriServ.
do?uri=CELEX:52002DC0714:EN:HTML>
[5] European Commission, Communication from
the Commission to the European Parliament,
The Council, The European Economic and
Social Committee and The Committee Of The
Regions - Innovation for a sustainable Future
- The Eco-innovation Action Plan (Eco-AP),
COM/2011/899 final, Brussels, 15 December,
2011
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where economic exchanges were attractive for large investors. These areas
accomplished. including Romania, have “understood” the
Largely focused on maximizing strategies role and the importance of the capital market
for asymmetric information, modern markets and stock exchanges in the proper
are competitive and flexible because they functioning of the economy.
have adapted to the new economic Even if initially many of these solid
knowledge, where information is the vital traditional markets such as Italy, United
elements that allows the agent to obtain States, Netherlands, South Korea, Japan, etc.
profit, at the expense of the exchange partner. were shaken by large financial scandals, the
Excluding the option of remaining with a things are getting better, the market
“tired” economy, emerging markets generally becoming credible and are developing.
defined as transition economies, from An influence on the emerging capital
agrarian or centralized forms to the markets have the information technologies
industrialized free market, they found increasingly stronger and cheaper which
themselves in the position of not being able allowed unprecedented speed of change in
to afford to refuse cases, justified or not, this area. In an interview with the “National
repay loans, to up and down at will the fiscal Review” newspaper, Professor Ion Corbu
barriers or to nationalize the foreign owned said: “The change cycle has accelerated in
businesses. In this way, these emerging the last twenty years and these changes the
markets have to respond in the only rational business rules. Once the change in the global
way they could, to join the global market. [4] business sector was measuring in extended
periods – a century, 50 years, 20 years. Now
2. Features of emerging markets these transformation periods occur every two
or three years, changing the way a business
Emerging markets and develops as a leader should think the company. Also it
result of the accentuated growth and changes our conception of the way the public
development tendency of international institutions and companies in our country
financial market which “is a consequence of work.” [6]
the needs, expressed by investors and those The current economy is based on reducing
who wish to place their financial capital.” [5] trade barriers, privatization, democracy and
emerging developing markets and is
2.1. The evolution of emerging markets characterized by dynamism, innovation and
open markets (including conservative
The new international order and the markets like the U.S. and the UK that have
globalization have led in recent decades to been forced by the evolving events to
the restructuration a resize of the abandon the old habits and regulations and to
international financial market with the transform into an open market).
reorganization of the entire global economy. There is one question that is asked
The external debt crisis of the 80s in Latin frequently, the problem of opening markets
America let to major reforms in countries in countries that are out of the domination of
like Mexico, Brazil, Chile, Argentina, etc. centralist ideology. In the same interview Ion
The year 1989 revealed a “new possible Corbu stated, “developing and transition
market” in Central and Eastern Europe and in countries must understand that economic
the ex-Soviet, due to the changes in political nationalism in no longer of any use. They
regimes that have brought profound changes must abandon the vertical capital markets,
in the economy. Significant changes have where the capital was flowing inefficient
takes place in Africa, the Middle following through local businesses that might not be
the Gulf War. The dynamic of the Asian competitive on the world market.
areas is unpredictable, as countries like The barriers must be removed from the
Indonesia, Thailand, Singapore, Malaysia, expansion of network technology, the
Taiwan, South Korea, Hong Kong, Vietnam realization of the networks must be
and Mainland China have replaced the accelerated and privatizing the
“traditional tigers”. In this Asian area is communication systems. These nations must
noticeable the dynamic Chinese economy, also ensure that investors are able to
whose market has become one of the most repatriate profits. Finally, they must ensure
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of clear information held by the IMF in their deliberately will to integrate into the
hierarch zings these countries. [8] international economy. These countries are in
Studies show that an emerging country a transitional phase: they are not
can be defined as a transition society from underdeveloped countries.”
dictatorship to a free economic oriented For example: “an emerging country is a
market, with economical growth, that country that is included in the list of
gradually integrates in the global market, an emerging countries”, pointing out that some
expanding middle class that improves the countries such as Korea and Greece should
living standards and cooperates with not be part of such a list. Greece formally
multilateral institutions. complained that it is included on such a list.
Analyzing the 192 OUN members, it can Another definition says that “an emerging
be said that 81 countries that can be classified country is a country where investors come
as emerging markets, are holding 46% of the like a turtle and go running like a rabbit”. [9]
earth’s surface, 68% of the world Using a word play, it can be said about an
populations, and attracted 600$ billion of emerging country that is “too poor to be rich
foreign direct investment ,their inner market and too rich to be poor”. [10]
consumption being far the largest ,while their In another approach, emerging markets
GDP (Gross Domestic Product) is only 20% are meant to be “fast- growing markets, with
of global gross. particular political stability”, “new stock
markets in industrialized countries.” This
2.2. Conceptualization of emerging approach is based on common features and
markets the close performance to the savings, and on
the level of access to the international capital
The definition of emerging markets is market.
difficult to formulate because of the It may be noted that emerging markets do
complexity and diversity of these markets not form a compact group and is therefore
and such an approach should make possible difficult to give a universally accepted
the distinction between the developed market definition for everyone.
concepts, frontier markets, regional markets Researchers and other specialists have
and emerging markets. tried and are trying to explain this but the
Today, when we hear the term of dynamic and the complexity of this domain
emerging market we think of countries like: are making particularly difficult this task.
India, China, Mexico, Brazil, Chile, The analysis of emerging markets must
Argentina, and so on, which is only a portion take account to the following [6]:
of the existing emerging markets. In the same • size of economy;
category of “emerging markets” are included • the level of national gross incoming
newly created stock markets, the old stock per capita;
markets that still exist in some developing • the size of the stock market and
countries etc… capitalization;
In a first attempt, emerging market could • market liquidity;
be considered the economies of those • the active presence of local investors;
countries situated between developed • the presence of foreign investors;
countries economies and developing
• legislative framework;
economies.
• communication systems;
According to the opinion of “Carmignac
• access to information;
Gestion” Portfolio Director, Ms. WEN
Zhangg Goldberg: “today we are finding • national currency, rate and stability;
ourselves in a surreal situation in which is • exchange policy.
speaking about “emerging countries”, If these types of multi-criteria analysis are
speaking about Korea and Taiwan whose made by specialists on close methodological
GDP per capita is very close to that of basis, it can get pretty close to the same
European countries such as France and group of emerging markets. Note that the
Germany. Also the characteristic of emerging case of emerging markets is in constant
countries is their ability to generate higher change, the classifications being usually
economic growth in developed countries and updated annually.
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Pascu Emilia
Christian University “Dimitrie Cantemir”, Bucharest,
pascu.emilia@ucdc.ro
Milea Oana Maria
Christian University “Dimitrie Cantemir”, Bucharest,
o_rez@yahoo.com
Nedea Petronela Sonia
Christian University “Dimitrie Cantemir”, Bucharest,
petronela844@mail.com
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Also all as a measure of speeding up the The citizen of another EU Member State
case appeared another new rule on expertise, or the European Economic Area which has
namely: after the appointment of the expert, acquired the status of judicial expert, quality
the court will summon a hearing in open certified by recognized professional bodies in
court in which will require expert to those countries may be included in Table
comment on the estimated amount of work nominally containing technical experts,
performed and the length of time necessary drawn on specialties and counties by the
to carry out expertise, position of the parties Central Bureau of Judicial technical expertise
will be recorded in the end. Given the within the Ministry of Justice, in order to
position of the expert and the parties, the exercise in Romania, being exempted from
court will set a deadline for report the examination procedure.
submission expert and conditions of payment The law also sets how they can exercise in
of expenditures necessary for the Romania, temporary or occasional technical
examination. expert legal profession. Similar provisions
A new law is the transposition of regarding the recognition of qualifications
Directive 2005/36/EC of the European and expertise activity are stipulated for
Parliament and of the Council on the extrajudicial technical experts.
recognition of professional qualifications in Law refers to a very common situation,
Law 37/2009 (Law on amending and that of a lack of technical experts in a
supplementing OG2/2000) governing the specialized court required: for such cases the
access of Member States of the European law allows judicial technical expertise to be
Union activity of judicial and extrajudicial carried out by specialists who are not experts,
expertise [5]. This eliminates the necessity they have Romanian citizenship or
of being Romanian citizen from conditions nationality of a Member State of the EU or
that must be met to acquire the quality of the European Economic Area and meet the
technical expert judiciary, adding the requirements of law to perform judicial
possibility of being a citizen of an EU technical expertise.
Member State or the European Economic
Area other conditions.
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4. Conclusions 5. References
All these new legislation aimed at [1] Părăian E., Pascu E., 2011, Expertiza
resolving key aspects of patrimonial and non- mărfurilor, ediţia a III, revăzută şi adăugită,
patrimonial disputes arising from domestic ed. Prouniversitaria, Bucureşti;
and international commercial contracts and [2] Murray D., Cele 7 valori esenţiale. IMM-urile
şi beneficiarii lor, lucrare în cadrul
other legal relations as trade, to make their
Conferinţei Internaţionale „Calitate şi
contribution and expertise of goods as means integritate în afaceri”, octombrie 1999, Tg.
of proof, such that any dispute triggered Mureş, cu sprijinul Fundaţiei Osana
between business partners can be solved [3] *** Codul de procedură civilă;
easily, quickly and transparently. [4] *** Legea 202/2010 privind unele măsuri
In this context and given that the pentru accelerarea soluţionării proceselor;
existence of trade agreements between [5] *** Legile nr. 37 si 178/2009, nr. 208/2010
partners throughout the European Union or pentru modificarea şi completarea Ordonanţei
the European Economic Area, the current nr. 2/2000 privind organizarea activităţii de
provisions provide a much better opening expertiză tehnică judiciară şi extrajudiciară;
[6] *** Ordinul M.J. nr. 199/2010 pentru
firms and covers not only trade and previous
aprobarea Nomenclatorului specializărilor
legislative niches so that trade can follow a expertizelor tehnice judiciare publicat în MO,
natural course, elegant even if we are in a Partea I, nr. 78 din 4 februarie 2010;
world where "everything is allowed".
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selected menu item, in the Content Area are elements which includes a structured path;
displayed the appropriate information Lesson Plan – a particular content type
included. that combines information about lessons
A course consists of several content with resources used for teaching;
elements. A content element is any type of Syllabus - allows the instructor to build a
file, text, image or link that appears to users syllabus;
in a content area, learning module, lesson Course Link – provide the opportunity to
plan or folder. Instructors can add different create a link with another section of the
content types in these course areas. course;
All these features allow the instructor to Content Folder - contains other content
label them, to complete their description, to elements;
set options for availability (time and date). Blank Page - adding a blank page and
Content elements of a course are (figure 2): customize it;
Item - file, image, text or link; Module Page – it adds a page containing
File – can be used an HTML file. These dynamic content customized modules that
files can be viewed as a page in the course help users track tasks, tests, new content
or as a separate piece of content in a being added;
separate window; Tools Area - enables rapid addition of
Audio, Image, Video – audio, image, course specific tools (e.g. discussion
video files; forum or messages).
URL - link to a website;
Learning Module - a set of content
Figure 2. Course content elements
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enable the report on users access to this Learning modules are used to package or
item. present content and allow instructors to
Select Date and Time Restrictions - organize the corresponding course materials
select the time and date when the item is in Table of Contents. All types of content can
available. Select Display After so that the be included in the learning modules, less
element appears after a certain date. If this other learning modules.
option is selected, add the corresponding date Instructors can add folders and subfolders
and time. Select Display Until so that the to a learning module to impose a hierarchical
element appears until a certain date. If this structure on the content. This hierarchy is
option is selected, add the corresponding date shown in outline view in Table of Contents
and time. (figure 3).
Learning Modules
Figure 3. Visualization of the content of a learning module
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In order to exercise economic attributes in can be seen, this indicator shows a significant
terms of the labor process, labor and means increase, the amount of R & D per capita is
are necessary forms of general and the end of 2008 with 135.91 RON, higher
specialized training. The requirement level of than 1995. This increase is mostly due to
training is directly related to the predominant increase allocations for research and
sector of the economy, the need to develop in development, representing payment of
different historical eras. Training, training by current expenses of personnel engaged in
learning general and specialized direct result research and development, and capital
of labor training and retraining. In this expenditures representing the purchase of
regard, Trebici Vladimir be stated that equipment, tools, machinery and equipment
“Recent studies on the theory and models of or other expenses of this nature. The
economic growth (S. Kuznets, Ed Denisov, J. expenditure structure assignation innovation
Vaiyez, TW Schultz) revealed a very is mostly capital expenditures, purchases of
important fact: the stock of education of the equipment and software, accounting in 2006,
working population under the impact of [3] a share of capital expenditures 74.9%
scientific and technical revolution, becomes versus 53.4%, as held in year 2002.
an increasingly important factor of economic
growth: the contribution to national income Table no. 1 - Highlight value indices of
tends to increase in recent years, to overcome scientific work, research and intellectual
contribution productive fixed assets.” [2].
Indicatory 1995 2000 2005 2008
Number of R 615 601 806 775
3. Production of knowledge
& D activity
units
In support of the above, to highlight the Total 35094 23179 29608 30864
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number of innovative enterprises from this is the reason why we can not say that
23,404 innovations made in 2002, by 3963 there is a uniform development of all
innovative enterprises. countries.
As can be seen from the table no. 2, the In the knowledge society, as known work
results of research have resulted in a decrease includes both content knowledge production
of 57 product innovations in 2006 compared and transmission of information. Regarding
to 2008, but also contributed to the process of the transmission of knowledge, a number of
innovation with 756 more in 2006 than in indicators presented in Table no. 3, shows the
2002, which representing an increase of level of existing development in information
283.05%. and communication technology in Romania.
The best results of the research led the
entire period to achieve product and process Table no. 3 - The evolution of ICT
innovations, which hold a share of total indicators in Romania
innovation between 74.89% in 2002 and
71.62% in 2006, and most innovations in rate Indicatory 2007 2008 2009
of 53.64% for 2002 and 58.72% for 2006, is The share of 31,4 35 42,2
households with
the effect of work of scientific research, access to a
technological innovation, the emphasis on computer at home
size information and design work, carried out Population 16739098 16696027 16664078
between 16-74
mostly in small businesses. years
The number of 6847343 6719591 7464651
Table no. 2 - the process of innovation in people 16-74 years
who have ever
Romania in 2002-2006 used the computer
Share of persons 40,9 40,24 44,79
Innovative enterprise
Innovation Process
Total innovation
computer, the
Year
population of the
same age
The number of 4909502 5668927 6339352
people 16-74 years
who have ever
582 413 2968 3963 small 2126 accessed the
2002
companies Internet
medium 1178 Share of persons 29,32 33,95 38,04
enterprises
of 16-74 years who
large 659
enterprises have ever accessed
472 1203 3461 5136 small 2834 the Internet, the
2004
companies population of the
medium 1585 same age
enterprises
Source [7]: http://www.insse.ro,TIC101A,
large 717
enterprises TIC103A, TIC104A, POP101C and own
2006 525 1169 4276 5970 small 3506 processing
companies
medium 1817
enterprises
large 647
Obtaining the benefits of new
enterprises technologies depends on investments made
Source [6]: http://www.insse.ro, INO102B for exinderea and information infrastructure,
the expertise needed for new job creation and
New technologies are actually the result training levels of user labor, the entire
of concerns regarding improving and population facilitating access to public
modifying old technologies repeated. information technology information and
Basically, the old technologies give rise to communication, dissemination of information
their rivals, while also affecting people and knowledge to all members of society.
working in old technologies, downwards its Information is basically the result of human
importance in the new system. New of the effort for research and innovation, having a
two exist in some cases is very high, in fact
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transformational effect on both human and has also a positive, but much smaller scale. In
labor which he submitted. late 2008, Internet subscriptions reach
Utilization of information and 5,249,042, which represents an increase of
communication technology, seen by an 4,268,678 over 2004 subscriptions, or can
increasing number of population increased as estimate that one in four Romanian has an
a pioneer in knowledge, reflecting a Internet subscription.
progressive development of information
society in Romania. Table no. 4 - The evolution of
Willingness and awareness of the need to communications in Romania
use a computer and internet media offer is
seen as a tool for acquiring new information Indicatory 2004 2008
Number of fixed telephone 4389082 5035644
that comes to ease and at the same time lines
facilitate citizens' access to public Number of fixed telephone 0,20 0,23
information has been understood as time of lines per capita
the growing number of people. Number of mobile phone lines 10215388 24467206
As shown in the data table above, in late Number of mobile telephone 0,47 1,13
lines per capita
2009, the share of households with access to
Internet subscriptions 980364 5249042
a computer increased by 10.8% compared to Internet subscriptions per 0,04 0,24
2007, while maintaining the same pace, at the capita
end of 2010, more than half of Romanian Source [9]: http://www.insse.ro,PTT104B,
households will have access to a computer. POP101A
Regarding the share of people between 16-74
years in the total population of the same age The slight growth in fixed telephony
who used computer arrived in 2009 to Please register but during the four years of
44.79%, which represents an increase of the analysis was made an increase of 646,562
3.89% compared to 2007. While the number new subscriptions, their number per capita at
of Internet users in the same age group the end of 2008, equal to 0.23.
increased from 29.32% in 2007 to 38.04% in As a result, as can be seen from the above
2009. That the number of existing computers analysis More and more people nowadays
in 2008 in schools, colleges and cannot stand without watching or hearing
universities[8] was 275,427, with 214,881 their TV, internet, newspapers, cell phones,
more than in 2001, indicating a concern for radio, media players and more other devices
the technological development of the nation that are their main important source of
state. Most PCs are managed secondary information, entertainment and more others
schools at the end of 2008 with a total of [10].
99,688 computers, 15,815 from existing
computers in 2001. 7. Opinion
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8. References
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co-operators don’t believe in the efficacy of social and political privileges. However, it
socialism’s economic concerns, while the fights for permanent seizure of political
Marxists overlook the political leanings of power and total expropriation of production
cooperatives. Charles Gide, a well-known means through direct action such as creating
representative of the cooperative, considered currents of opinion, partial collectivization of
Marxism as the end of the classical capitalist business, social policies, enlightenment of
economy, and the socialist Karl Marx the masses, etc.
distrusted that the cooperatists could achieve Ghiulea does not agree with the statement
a social reform without replacing the that cooperatism is constructive and
bourgeois-capitalist regime. socialism is destructive, because both
Nicolae Ghiulea signalled the identity of doctrines must first eliminate and then build
the purpose and the social ideals of the two other capitalist institutions, in the realization
doctrines. According to him, both aim of their moral, social and economic ideal.
replacing capitalism with a new social order. Socialism is based on class struggle. The
Socialism struggles to introduce the socialist socio-economic conflict in the attention of
republic, and cooperatism wants, admittedly, socialists is that between capital and labour,
to establish the cooperative republic. between employers and workers. On the
Professor Ghiulea starts his paper with the other hand, cooperatism desires class
essential differences between socialism and solidarity, aiming at resolving the conflict
cooperatism, which he lists and then analyzes between merchants and consumers. Nicolae
separately. „Thus: socialism is revolutionary, Ghiulea shows that the cooperative is also
cooperatism is evolutionary; socialism based on class struggle, precisely because the
transforms the society by law, cooperatism worker’s exploitation by the employer is
by substitution; socialism is destructive, what led him to join a cooperative. The
cooperatism, constructive” [2, p. 5]. insufficient salary he received pushed him to
Nicolae Ghiulea says that cooperatism is associate, thus removing intermediaries and
revolutionary, as much as socialism. It aims their earnings. Moreover, the conflict cannot
at removing the capitalist system, even if not be between workers and traders, because they
through a legal requirement, but by the belong to the same class, the proletariat. The
gradual conquest of all economic enterprises struggle takes place between workers and
and the establishment of the cooperative employers, working people using
republic on a democratic background. cooperatives as emancipation weapons in the
Cooperatives develop within the capitalist fight against exploitation. Here's how in this
society, entering into free competition with field there is also no distinction between
the existing regime, following its gradual cooperation and socialism.
replacement. Hence we have the Socialism aims at the abolition of profit
revolutionary character of cooperatives. made from the surplus value which the
The ideal of socialism, on the other hand, employer fully appropriates, while the
is quite similar. „Socialism has the same cooperative campaigns for the abolition of
goal: the abolition of the capitalist economic profit, meaning the increased price for the
system, and has the same ideal: to create a commodity, i.e. the intermediary’s benefit. If
new society” [2, pp. 5-6]. The difference we look closely on production cooperatives
remains therefore only in the means of though, they were created exactly to remove
fighting used. Socialism wants to introduce the employer and the profit. It can be argued,
the socialist economy through the conquest therefore, that the cooperative members
of the political power and the transformation „reserve the full value of the product and,
of the society by law, the expropriation of therefore, the added value, which socialism
production means and their collective use. defends, in battle” [2, p. 9]. Cooperatives, in
However, both doctrines face resistance all their ways, protect work and the product
from the capitalist regime. The cooperative of work, and are against those who exploit
movement was deflected and captured by the workers. Removing the profit and labour
capitalism that was developing at an exploitation, cooperative approaches again
accelerated pace, and socialism met strong the socialist ideals.
resistance from the bourgeois-capitalist state, Socialism wants the abolition of the
which did not want to lose its economic, private property, which cooperatives, on the
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Popa Florina
Romanian Academy, Institute of National Economy
florinacarina@yahoo.com
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of 48,9 %, as to return to 48.6% in the year relatively constant over the three years, the
2010 (Graph no.1). plus or minus deviations, being, as a rule, less
than 1 %.
Graph no.1 The contribution of services in • Two categories have constantly recorded
national GDP achievement increases (reduced, between 0.1 % and 0.3 %)
50%
from one year to another: "Real estate
48.9%
48.6
activities " and, respectively, "Professional,
% scientific and technical activities; activities of
% Total of services VAB in national GDP administrative services and of support
services"
• The only position with a more significant
0
2008 2009 2010 deacrese of 1.1 % in 2010 beside 2009, was to
Source: data processing from ASR 2011- CAEN "Public administration and defence; social
2, INS insurance of public sector; education; health
and social assistance”.
By analysing the Gross Domestic Product Ranking of categories of services by the
(GDP) structure by categories of resources contribution in Gross Domestic Product
from service activities (according to grouping (GDP), is shown in the Graph no. 2.
in the Romanian Statistical Yearbook – ASR),
for the period 2008-2010, it highlights the Graph no. 2 The input of each category of
following questions: services in GDP in year 2010
•Ranking contribution on categories of
19.5
resources positiones the groups of services, in
10
all years, so:
-„Wholesale and retail; repair of motor 6.85
vehicles and motorcycles; transport and
4
storage; hotels and restaurants” are on the 3.8
first place - their share, in the three years, is in 2
the range of 18,8 % and 19.5 %; 0
1 2 3 4 5 6 7
- on the second position there are services Source: data processing from ASR
group “Public administration and defence; 2011- CAEN 2, INS
social insurance of public sector; education;
health and social assistance”, with weights Notes:
between 10% and 11,1%;
- on the third place there are located “Real 1. Wholesale and retail; repair of motor
estate activities”, with levels between 6.2 % vehicles and motorcycles; transport and
and 6.8 %; storage; hotels and restaurants
- the fourth place is occupied by two 2. Information and communication
groups, with weights significantly close (about 3. Financial intermediation and insurance
4%): "Information and communication" and, 4. Real estate activities
respectively, „Professional, scientific and 5. Professional, scientific and technical
technical activities; activities of administrative activities; activities of administrative services
services and of support services”; and of support services
- on the last place there are found also the 6. Public administration and defence;
groups “Financial intermediation and social insurance of public sector; education;
insurance” and „Shows, culture and health and social assistance
recreation activities; repair of household 7. Shows, culture and recreation activities;
goods and other services”, the contribution repair of household goods and other services
exceeding scant of 2 %.
• The contribution of each category of It has been counted the graph, only in the
services to GDP achievement maintained year 2010, taking into account the small
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differences from one year to another, of the 2008 to 42.6% in 2010. This increase, even if
input of services in structure, to national GDP only with 0.7 %, reflects the positive role of
achievement (Table no.1). the sector in the supply of jobs and in the
B. Employment weight in the service employment growth, in the context of a jobs
sector emphasizes the role of human element diminishing throughout the economy.
in the share of services, being a correlation Graphic of employment in services is
with the structure of the economy. (Table no. highlighted in the Graph no. 3.
2).
Table no. 2 Civil employment, by activity of Graph no.3 The weight of emploument in
economy services in proportion to the total civil
employment in economy
thousand persons
Specificat Year
ion 2008 2009 % 2010 42.8
unto % 42.6
2008 unt 41.9
% Total employment in
o services in total civil
200 employment in the
economy
8
Employee 0
2008 2009 2010
s on the
entire Source: data processing from Labour force
economy 95, balance - end of the year, ASR 2011, INS
of which: 8747 8411 96,1 8371 7
In the As regards the employment by category of
service 97, services, according to data processing from
sector 3667 3600 98,1 3570 3 Labour force balance - end of the year ASR
The 2011 (Romanian Statistical Yearbook 2011), at
weight of the end of the year 2010, for 6 service
employees activities, the weight is over 5% in total
in services
services: “wholesale and retail; repair of
in the total
population motor vehicles and motorcycles” - 31,9 %;
of „transport and storage” - 11,9 %; „health and
economy social assistance” - 11.4 %; „education” -
(%). 41,9 42,8 - 42,6 10,9 %; “activities of administrative services
Source: data processing from Labour force balance and of support services” – 5,7%; „public
- end of the year, ASR 2011, INS administration and defence, social insurance
of public sector” - 5,7 %. For the other
From the data referred to above, it issues categories of services, the weight of
that in the period 2008-2010, civil employment employment is between 0.9 % (the “real estate
in the economy decreased from a number of activities”) and 4,4 % ("professional, scientific
8747 thousand persons in 2008 to 8371 and technical activities").
thousand in 2010, respectively, with 4.3 Slight increases of employees in the year
percent, while employees in services declined 2010 unto the year 2008, have been found in
from a number of 3667 thousand persons in "transport and storage" - 0,4 %; “financial
2008 to 3570 thousand in 2010, respectively, intermediation and insurance” - 0,5 %; "other
with only 2.7 percent. service activities" - 0,9 %.
If consider the weight of employment in Decreases in the same period appear in the
services in the total employment of national segments: "Real estate activities" - 0,4 %,
economy, it perceives an increase in the period "hotels and restaurants" - 0,7 %; "education" -
taken into account, respectively, from 41.9% in 0,9 %.
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1.3. Conclusions
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1. Introduction 2. Objectives
The term artificial intelligence was first We aim to achieve an intelligent system
used by John McCarthy in 1956, at a based on accounting knowledge, decision
symposium attended by elite researchers, support to operational level in a forestry
including Marvin Minsky, Herbert Simon district. Through this system, accounting
and Allen Newell, who contributed, by their knowledge within a forest subunit will be
studies, to award the rank of science to this acquired and stored in a knowledge base. The
concept [12]. system will acquire knowledge, will receive
In the first investigations, the artificial extra experience and expertise, and will
intelligence was placed in the area of science, provide suggestions to optimize economic
and of specific technologies. decision processes.
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The suggestions will be useful to the decision tree method, developed by the
manager of district and, also, other officials group of participating experts. Knowledge
from the functional departments of forest codification was conducted with the help
district, in decision making. The intelligent of business rules;
system can be used also for training new staff 5. Prototype testing took into account
from a forest district, facilitating an knowledge base structural verification,
interactive access to knowing processes and functional verification and revision of
to specific activities. prototype.
By prototyping we wish to establish the
In order to develop intelligent system
optimal structure of the knowledge base that
prototype was initiated the process of
will be further developed in the framework of
knowledge extracting, structuring and
intelligent system.
organizing. We have described the basic
In this paper we present steps to
concepts of the solution design, we have
development of an intelligent system
determined the necessary features and initial
prototype, based on accounting knowledge
prototype structure, during a brainstorming
required at operational level, in forestry.
session, attended by employees of Moldovita
Forest District, responsible for organizing
3. Methodology
and managing all functional departments of
forestry division. It was planned the next
To achieve intelligent system prototype
brainstorming sessions, necessary to generate
we used hybrid expert systems technology,
ideas on pieces of knowledge.
with which we realized reasoning simulation
In the design of the intelligent system
of an accountant from forestry. Initially we
prototype we considered determining the
developed the knowledge representation for
optimal structure of the knowledge base.
analysis purposes, using semantic networks
Intelligent solution design team was mixed,
and decision trees. Subsequently, for the
consisting of technicians, economists and
purpose of encoding, knowledge
engineers, specialists in different fields of
representation was achieved through rules
activities within a forestry district.
and frames.
To facilitate the participation of design
We used knowledge storage and
team in the acquisition process, we
management environment offered by Guvnor
determined the structure of knowledge on the
application, created within the JBoss
areas: management, forest sites, accounting,
Division of Red Hat American company.
security and protection, private forests,
For testing we applied modular validation
cadastral activity, hunting, regime of
technique, using Drools business rules
weapons and ammunition, horses,
management engine, also a Jboss application.
production, culture and regeneration,
investment, repairs and forest roads,
4. Knowledge acquisition and
mechanization, standardization of work,
representation
human resources and payroll, secretarial and
archive.
For prototype construction we went
On the second level, knowledge of
through the following steps:
business processes reflected for each field,
1. Initialization phase included defining of
provide explanations and recommendations
working hypothesis and establishing of
emulated after the inference of rules.
the advantages of using intelligent system
Intelligent solution regards storage of
in forestry accounting;
accounting expertise and the emulation of the
2. In the analysis and design phase we
accountant reasoning, so that all subunit
realized the conceptual design and we
specialists, can access the accounting
established the development strategy;
knowledge necessary in daily activities.
3. In knowledge acquisition process have
That is why the monitoring of the ideas
been several brainstorming sessions with
convergence was made by the chief
the participation of experts from the
accountant, an economist by 11 years
Moldovita Forest District, Suceava
experience in the accounting field, including
County;
9 years in forestry accounting subdomain.
4. The knowledge representation used
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● The quality of being perceived as a whole, other, when there are differences between
and not as a mere collection of experts and decision makers in the jargon,
independent and heterogeneous language, experience and assumptions
components; related to the decisive argument;
● Perceptibility of knowledge
representation, which should allow easy
understanding of the modeling process, as
a whole, and understanding of each rule.
Our research revealed positive
implications at the organizational level by
implementing intelligent applications: a
better understanding of the functioning of
business processes in the forestry entities and
increasing expertise in the organization
through effective distribution and
exploitation of knowledge.
7. References
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Răduţ Carmen
Constantin Brâncoveanu University of Piteşti, Faculty of Management Marketing in
Economic Affairs, Rm. Vâlcea,
c_radut@yahoo.com,
Codreanu Diana-Elena
Constantin Brâncoveanu University of Piteşti, Faculty of Management Marketing in
Economic Affairs, Rm. Vâlcea,
codreanudia@yahoo.com
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5.8 % in 2008 to 8.4 % in 2009 but further information is managed on a central station
dropped to 7.7 % in 2010. and are accessed by users using usually,
The crisis has taken a toll on Romanian Technology Internet / Intranet, which
enterprises, putting a temporary stop to the provides several advantages: keeping data
positive long-term developments in the unity and integrity; access the same
number of SMEs and their contribution to competing resource; maximum availability of
employment and economic value added. services regardless of physical location of the
In employment terms, it is interesting to resource or user.
see that the SMEs were much more reluctant - They are developed in a modular
to shed employees during the crisis than the design and integrate all the processes
large firms. In fact, during 2008–2010, it is performed in SMEs, covering, in general,
estimated that Romanian SMEs maintained these areas of activity: financial management
their workforce at pre-crisis level, while the and accounting; human resources
large enterprises shed about 6 % of their management; inventory management;
workers. management of assets.
Regarding the outlook for 2011, estimates ERP systems architecture allows
indicate a recovery, more or less in line with providing open model that allows data
the EU average. The number of enterprises transfer both within SMEs, as well as in their
and their contribution to GDP (as measured external environment, starting with key
by the gross value added) and employment in suppliers and ending with the consumer
SMEs are all expected to exceed the pre- network, known as SCM systems. SCM
crisis levels by the end of 2011. allows optimization of three categories of
One of the necessary conditions to align flows: flows of production (movement of
management of the SMEs in Romania to the goods from a supplier to a consumer
requirements and existing standards of the following the latter's request), informational
EU market is the rapid integration of the flows and financial flows.
latest trends in ICT. In SMEs, SCM solutions use networking
The main requirement that must be technology to link customers and suppliers
satisfied in this context, is the transition from and to generate real-time information on the
the informational society to the one based on evolution parameters of the production and
knowledge, by implementing specific distribution.
technologies such as ERP, SCM, CRM,
document and workflow management, 4. ERP - Enterprise Resource Planning
quality management in IT , eBusiness,
eLearning and other techniques for working ERP - is a business management concept
in Internet platforms. representing the efficiency activity,
ERP systems have emerged as a result of productivity optimization and minimizing the
organization resource planning systems procedures for carrying out services of an
development. Although in specialists organization in a unified system through
approaches there are many points of proper planning of its resources, supervising
divergence, ERP has several common and rescheduling them. According to the
features when implemented in SMEs: APIC dictionary, Enterprise Resource
- Are developed by objective criteria Planning is "a framework for organizing,
such as the function, which gives them defining, and standardizing business
flexibility and ability to be easy redesigned processes necessary for effective planning
under modification of factors that are and control of the organization so that it can
endogenous or exogenous to the use its internal knowledge to obtain external
organization. benefits."
- They have an open character, because As a software solution, ERP provides
they integrates a large number of entities support and control of the management
belonging to the external environment of system, and incorporates modules that
SMEs (customers, suppliers, financial support the next functional areas of business:
organizations, banks, other businesses, etc.). planning, production, sales, marketing,
- Technically speaking, they work on a distribution, accounting, finance, human
client-server architecture in which
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Front-Office Back-Office
C S
Corporate reporting
U U
Financial
S Applications P
Sales &
T Distribution P
O
Central Manufacturing L
M Service Database Applications I
E Applications E
Inventory
R Human Resources Management R
S Management S
Source: Rashid, M.A., Hossain, L., Pat rick, J.D. (2002), The Evolution of ERP Systems: An
historical perspective, Idea Group Publishing, p. 3 [1]
Advantages and disadvantages of adopting an ERP solution in a company are [1], Table 1:
Source: Rashid, M.A., Hossain, L., Patrick, J.D. (2002), The Evolution of ERP Systems: An
historical perspective, Idea Group Publishing, p5, [1]
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Source: Rashid, M.A., Hossain, L., Patrick, J.D. (2002), The Evolution of ERP Systems: An
historical perspective, Idea Group Publishing, p. 6, [1]
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currently looking for a cloud model that is [4] ***, Ponemon Institute, “Security of Cloud
sufficiently flexible and highly customizable Computing Providers Study”, 2011,
to meet the demanding needs. In what we are http://www.ca.com/~/media/Files/IndustryRe
concerned, we strongly believe that it will search/security-of-cloud-computing-
providers-final-april-2011.pdf
take a while before we’ll see specific cloud
[5] ***, TechTarget, “Cloud computing added to
implementation designs come to life due to many 2011 IT budgets”, 2011.
the fact that this technology is not yet [6] ***, Unisys, “Cloud Computing Dominates
matured, it’s still in it’s early days which can IT Priority List for 2011”,
only mean that cloud implementation models http://unisys.com/unisys/news/detail.jsp?id=1
will appear as we go and will find their roots 120000970009610085
in the traditional models. [7] Cambell, A., “Small Businesses Use Web
Apps – and What to Look For”, 2010,
4. Conclusions retrieved from
http://smallbiztrends.com/2010/10/how-
small-businesses-use-web-apps.html.
Selecting and implementing a cloud
[8] Everett, C., „Cloud computing, A question of
strategy requires a combination of policy trust”, Computer Fraud & Security, Volume
knowledge and expertise, stragegy and IT. 2009, Issue 6, June 2009, pp. 5-7, retrieved
Cloud computing should not be considered a from http://www.sciencedirect.com
miracle solution as the cloud computing [9] Fitz-Gerald, S., “Cloud Computing:
market is now maturing. Organizations have Implementation, Management and Security”,
a duty to keep themselves up to the minute INTERNATIONAL JOURNAL OF
and assess cloud advantages and whether INFORMATION MANAGEMENT, Volume:
there are enough reasons to migrate to the 30 Issue: 5, 2010, pp. 472-472.
cloud. In order to complete a comprehensive [10] Whitton, T. “Cloud Computing for Small
Business. 8 Reasons to Outsource Your IT to
analysis, objectives need to be clearly stated,
the Cloud”, 2011, retrieved from
specifically for the total cost of the http://www.nfib.com/Portals/0/PDF/AllUsers
investment and the ROI (return on /benefits/webinars/cloudcomputing-nfib-
investment). Objectives should accordingly webinar.pdf.
be realistic and attainable.
While the implementation of the cloud Acknowledgements
strategy in ongoing, the company’s This work was supported by the European
management team should address explicit Social Fund in Romania, under the
questions both inside the company and to the responsibility of the Managing Authority for
potential cloud service providers. Answers to the Sectorial Operational Programme for
these questions will help identify the correct Human Resources Development 2007-2013
set of actions [grant POSDRU/107/1.5/S/78342]
5. References
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Mykola Rogoza
Aleksandra Кuzmenko
proinf@uccu.org.ua
oldrakk@gmail.com
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out on this basis and measures for enterprise possibilities of an enterprise (renovation of
development management process the technical and technological trade base);
improvement are taken. The assessment of the use of up-to-date forms and methods of
the enterprise potential contains the the economic processes and other
evaluation of its components, on the basis of possibilities organization and management.
which general idea about the conditions of All these possibilities together create
the enterprise development is formed. Thus, aggregate enterprise potential, which reflects
it is necessary to determine precisely all its level of the competitiveness at the goods
components of an enterprise potential, to and services market.
estimate the development level and potential The augmentation of the potential takes
development of a trading enterprise. place at the formation stage as well as at the
An enterprise as a social economic system process of its usage [8, p. 137]. The main
has two motive powers: a wish to survive and task of an enterprise is the use of available
an aspiration for development [6, p. 6]. The potential, its augmentation (due to reserves).
necessary condition for an enterprise as a However, the fact, that the strong points are
system conversion is its development. That is the potential of an enterprise and the weak
way we propose to the economic agents of ones are the reserves of a potential, must be
the system of consumers' cooperatives (SCC) taken into consideration. Therefore one of the
to use mixed enterprise development course. managerial tasks in running a trading
This course includes intensive, innovative, enterprise of SCC is the use of strong points
procedural and adaptable enterprises’ eliminating weak positions at the same time
development. The transition to this course of [4, p. 233].
development will give an enterprise the A development potential of an enterprise
possibility to improve the manufacturing and is referred to as cumulative possibilities,
selling process management on condition that resources, and means of functional enterprise
the products and production technology will potentials to change the index parameters of
be constantly renovated. Executives will an enterprise activity providing selected
receive the possibilities to keep and increase development strategy. A functional potential
both internal and external enterprise potential is referred to as certain potential of the
using the methods and means of the functional subsystem of the enterprise
adaptation to the requirements of inner management [2, p. 1740].
environment. Intensive development Therefore, the assessment of an enterprise
guarantees gradual augmentation of an potential is a search for the aggregate of the
enterprise potential, allows to increase its characteristics, indices and properties that
level radically and to get the new quality of enable to describe an enterprise sufficiently
its own potential by means of technologic and evaluate its perspective possibilities to
and organizational development, also to meet corresponding society needs of a
adapt to cardinal changes in outer particular goods (or services) and the
environment. Consequently, using this possibility to attain set goals [1, p. 7; 4, p.
approach the trading enterprise of SCC will 224]. On the basis of achieved results of an
be competitive at the world goods and enterprise potential assessment we can
services market. suggest perspective goals and draw rational
Taking into consideration the basic strategy of its attainment [10, p. 89–90].
characteristics of an enterprise potential, we There are a lot of methods for the
can state that its model in trading is assessment of an enterprise potential and its
determined by [3, с. 352–353]: volume and development level. Each approach, method
quality of present resources; executives’ and or model of an enterprise potential
other staff members possibilities to create assessment has its advantages and drawbacks
certain conditions to meet consumers’ needs [12, p. 634–635].
and certain conditions for high quality We propose to evaluate an enterprise
service; financial possibilities of assets potential taking into consideration the
attraction; management possibilities to use structural functional method, which is based
objectively present enterprise resources; on the potential assessment of such
information possibilities (to generate and functional units as trade; personnel; finance;
transform information resources); innovative organizational structure and management;
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Figure 1
Computation figure of an assessment of the potential of a trading enterprise (PTE) of SCC
within 20 [created by the author]
Enterprise Index Maximum Significant indices
Type PTE value value of
of indices in a an index
PTE e1 e2 … … P1 P2 … …
unit
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Next stage – the computation of the floor where U – aggregate enterprise potential,
space potential of the trading enterprise (fig. U i – value of i component of an
2) in accordance with formula (2): enterprise potential.
2 n
sin (U iU i 1 U 1U n )
U n i 1 , i 1, n, (2)
2
Figure 2
Computation figure of the floor space of the potential and development potential of the
trading enterprises (PTE) of SCC within 20 [created by the author]
PTE type P1 P2 … … PTE type P1 P2 … … Standard
1 2 3 4 5 6 7 8 9 10 11
… … 100
. . 100
. . 100
… … 100
Aggregate Aggregate
340,36
potential potential
Third stage – the computation of the level IOPi – integral resources assessments
of an trading enterprise development ( i 1,...,n ).
potential as the difference between standard
The authors suggest the computation of
value (that are accepted as 100 units) and
the problem level of the development
expectable value of the trading enterprise of
potential of the trading enterprise based on
SCC.
principles of combination the taxonomy and
Forth stage – the formation of the
radar methods.
development vector on the basis of which the
Next step is to define what type of the
development potential of the trading
potential has problem development level at
enterprise of SCC is structured graphically.
the enterprise.
Five stage – the computation of the level
Next stage is characterised by the analysis
of an enterprise potential (4):
n
and the comparison with market data. The
DU n IOP ,
i 1
i
(4) authors propose to apply the following
assessment rating scale of the development
where DU – the level of enterprise potential of the trading enterprise to evaluate
development resources (potential); the level of the development potential of the
trading enterprise of SCC (fig. 3):
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Figure 3
Assessment rating scale of trading enterprises of SCC in Ukraine
[created by the author, [3]]
Enterprise
development Enterprise activity assessment The forming of an enterprise policy
potential level
1 2 3
Basic enterprise activity factors are
It is necessary to carry out
Problem negative, resources are used
fundamental strategy changes
inefficiently
An enterprise is vulnerable at the
To change the business processes
Low competitive environment of the
activities
sector
The activity of an enterprise is
sufficiently effective, an enterprise To adjust the day-to-day
Average
takes stably an average place at the management
goods market
To implement marketing measures
The activity of an enterprise is by means of маркетингові заходи
Above the
effective in whole, has competitive шляхом conducting the exhibitions,
average
benefits, can become a leader advertising campaign in mass media,
demand and supply research
To monitor and to make certain
An enterprise is a leader at the
Sufficient actions to maintain its leading
market
position at the market
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Sîrghi Nicoleta
West University of Timişoara, Faculty of Economics and Business Administration
nicoleta.sirghi@yahoo.com
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market; it is the result of a complex balancing Littlechild (1986) who introduced the term of
process. “evolutionary economics” [7].
E. Fama (1980) stated that the separation The approach of the theory of the firm
of share ownership and their control can be from an evolutionary perspective had as
explained as an effective form of economic starting point the work “An Evolutionary
organization in the perspective of the “set of Theory of Economic Change” (1982), in
contracts”. Every factor of production within which Nelson and Winter reconsidered the
the company is to be found in inputs, which microeconomic analysis showing that
put together can create final outputs. The excessive attention to market equilibrium
contractual theories of the firm are based on was not needed, but rather the focus should
the importance of property rights, be on the dynamic processes resulting from
asymmetric information and moral hazard. irreversible economic exchanges.
Continuing the reflection of R. Coase, O.
Williamson analyzes the situations in which 4. Conclusion
the exchanges reflect a large opportunist
potential. Using the sources of sustainable The theory of the firm contributes to the
competitive advantage has renewed the foundation of explanations regarding
resource-based firm theory [4]. phenomena of the real economy. By their
The resource-based firm theory explains use, as a frame of reference in representing
performance differences between firms. the behavior of economic agents, these
Thus, the capabilities are the firm's opened the way for a large field of
knowledge base (they belong to the firm and investigation. The developments registered in
not to individual agents). From this the field of the theory of the firm lead to the
perspective, the firms are heterogeneous, the conclusion that economics opens a large
competitive advantage is translated in terms research area that can certainly be extended
of efficiency of annuities, and the towards advanced economic research. The
sustainability is based on the difficulty for problem of microeconomics is not to study
the competitors to imitate. the functioning of markets anymore, but to
The need to integrate the two approaches examine the ways in which firms can
to the theory of the firm – the contractual coordinate their decisions based on dynamic
perspective and the one based on capabilities configurations in a competitive environment
– is underlined by other theoreticians on this affected by risk and uncertainty.
issue stating that for a better understanding of
the firm, more attention should be given to 5. Acknowledgements
the problem of distribution of knowledge /
production knowledge among companies, The authors are grateful for the support
and especially to their character (Demsetz). from POSDRU/90/2.1/S/63442 project,
The corporation is not only a contractual entitled „Real Acces to the Labour Market
entity, it is in the same time an entity that through Simulated Enterprise”, Beneficiary:
both learns and innovates, seeking „Ovidius” University Constanţa, Partner 3:
competitive advantages from economies of West University of Timişoara.
scale and scope based on superior
capabilities. Continuing the idea of 6. References
coordinating knowledge, some authors
(Cremer 1990, Radner 1992, 1996, Bolton [1] Coase, R. (2002), „The Nature of the Firm”,
and Dewatripont 1994) identify the firm with Alternative Theories of the Firm, Edward
a network of communication set up to Elgar, Publishing Limited, Cheltenham, SUA
minimize both the cost of processing new [2] Foss, N. J. (2002), „Capabilities and the
Theory of the Firm”, Alternative Theories of
information as well as its communication
the Firm, Edward Elgar Publishing Limited,
cost between agents [6]. Cheltenham, SUA
The evolutionary perspective on the [3] Foss, N.J. and Lando H., Thomsen S. (2002),
theories of the firm is linked to the research “The theory of the firm”, Journal of
of authors such as Kirzner (1913), Economic Perspectives-vol. 16, Nr. 2-Spring,
Williamson (1971), Winter (1982) and p. 23-46
[4] Gould, S., J. (2002), The Structure of
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and the mechanistic structure of economic excessive work by balancing the time spent
science: this approach clears out the human for work and leisure.
behaviour of any addiction to culture, which
is equivalent to saying that man acts 2. Methodology
mechanically in the economic life. That is
why this issue is usually depicted as a The economic systems have the
mechanistic conception of modern possibility of using energy and materials
economics. The obvious conclusion is that, if flows in view to preserve, reproduce and
the economy would be a science not only of improve their structures and functions. All
“observable” quantities, but also of the man, human beings, societies and ecosystems are
it should exhaustively rely on dialectical metabolic systems. For this reason, the
reasoning. availability of energy and resources, together
Georgescu-Roegen has also insisted on with the know-how and technology are key
the fact that the economy is part of the social factors that determine the feasibility of
sciences and the economic process cannot be societal metabolism models.
understood outside the social and In the MuSIASEM approach [2],
institutional context. He has pointed out that metabolic systems are characterized by the
the economic process resides in qualitative flow-fund concept whose components are the
changes, rather characterized by fund elements (elements whose identity
discontinuous jumps than by marginal remains unchanged during the economic
changes. What is of outmost importance, in process) and flow elements (elements that are
case of evolutionary structures, is the produced or consumed during the economic
emergence of news, of qualitative changes. process and are defining the interactions
For these issues we have no other solution within the system).
than the dialectical approach, particularly Flow elements are cash, energy or
involving structural changes. This means materials flows, while fund elements are
using words instead of numbers, since real metabolic converters, since they should be
qualitative changes cannot be represented by able to preserve and reproduce themselves, in
a mathematical model. order to preserve the original identity. Fund
The researches carried out in recent years elements involve consumption of some
led to the implementation of Georgescu acceptable inputs for their maintenance and
Roegen bio-economic model in the reproduction, as their identity implies that
development of socio-economic metabolism they can metabolize only a specific type of
theory governed by the laws of inputs.
thermodynamics. This achievement mostly It also distinguishes between exosomatic
pertains to Mario Giampietro (professor at and endosomatic energy. Exosomatic energy
the Universität Autonoma Barcelona, Spain) is the energy used by a man outside his body
and to Kozo Mayumi (professor at (in the socio-economic metabolism) unlike
Tokushima University, Japan) [2]. The two endosomatic energy that is associated within
researchers have developed the Multi-Scale the human body metabolism.
Integrated Analysis of Societal and The bio-economic model of the society is
Ecosystem Metabolism (MuSIASEM) that based on multi-scale integrated analysis,
integrates cash flows with material flows and which implies a hierarchical structure with
energy flows. several levels. In the multi-level matrix in
The Multi-Scale analysis of socio- Figure 1 one could observe the way two
economic systems allowed for the types of primary variables are divided into
development of a behavioural bio-economic several categories, across several scales.
model for the modern society, based on For example, the first primary variable
several requirements: a total ban on arms called Total Human Activity THA can be
production; standing aid for underdeveloped analysed at national level (level n) and is
nations; the gradual decrease of the defined as the amount of hours per year of
population to a level that could be maintained the human activity of the society:
only through organic farming; avoiding THA = 24 hours * 365 days * population
energy waste activities, providing durable THA = 8760 * population.
goods that can be recycled, avoiding This is a fund variable.
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Fig. 1 Multi-level matrix with two primary variables: the fund Human Activity against
the flow Energy Throughput
Level n Level n-1 Level n-2 Level n-3 Level n-3 Level n-2 Level n-1 Level n
rur rur
HH EMRT HH
urb urb
THA EMRHH TET
S EMRS S
SG EMRSG SG
G EMRG G
PW PW
B EMRB B
M EMRM M
PS PS
AG EMRAG AG
FUND FLOW
EM EMRE M EM
Source: Deliverable 3, Project SMILE, Socioeconomic Sciences and Humanities (SSH) Collaborative
Project FP7-SSH-2007-1
On the next level (level n-1), the available An even more detailed approach splits the
national time fund THA is split between two human activity in the households (HAHH) into
compartments: (i) Production – human three compartments related to the following
activity in paid work (HAPW) and (ii) hierarchical levels: (i) the amount of hours
Consumption - “the rest” of human activity spent for physiological needs (HAPO) - sleep,
in the household (HAHH). nutrition, self care, illness; (ii) the amount of
THA= HAPW + HAHH hours spent for unpaid activities at the
On the next level (level n-2), the amount household level (HAUW), generally
of hours for paid work (HAPW) is split housekeeping activities with a significant
between the activities in the production role in households stabilisation; (iii) the
sector (HAPS) and the service sector and amount of hours spent for education and
government (HASG), while the consumption leisure, playing an important role in the
compartment could be seen as the sum society progress through knowledge and
between urban and rural households. health.
HAPW = HAPS + HASG ; The second primary variable from the
HAHH = HAHurb + HAHrur . multi-level matrix is a flow variable called
The lower level n-3 corresponds to Total Exosomatic Energy Throughput
production sector (PS) division into four (energy metabolized by technical devices
main sectors: Agriculture (AG), Energy and outside the human body) TET (level n),
Mining (EM), Building (B) and representing the final energy consumption (in
Manufacturing (M), while the service sector Joules/year) - the biophysical approach. This
is split between Government (G) and is the aggregated sum of Energy Throughputs
Services (S). (ETi) consumed on each of the lower
The time spent for paid activities in each hierarchical levels (n-1, n-3).
sector is the result of the employees number A similar approach is using the "value
in each sector multiplied with the amount of added" as a flow variable - the economic
hours annually worked. approach. On the level n the GDP is placed,
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further broken down on lower hierarchical variable which raises the satisfaction of
levels in the value added corresponding to living in society entails an increase in energy
the related sectors. and material throughput in the production
Intensive variables are calculated based sectors of the economy (HAPS). That richer
on flow and fund primary variables, as the society will develop services sector and will
ratios between them, EMRi = ETi / HAi work less because of allocating more time for
which are represented in ellipsoids in the education and leisure activities. Under such
middle of Fig. 1. circumstances, the manufacturing sector will
The Exosomatic Metabolic Rate (EMRi) have to provide the society with a greater
is the exosomatic energy consumption rate quantity of goods, energy and materials using
per human activity unit. On level n, the a limited amount of worked hours.
Exosomatic Metabolic Rate on Average for
Society (EMRAS) is the ratio between TET 3. Application in Romanian case
and THA.
Another intensive variable is Economic The study of the Romanian economy and
Labour Productivity (ELPi) equal to the ratio its energy behaviour reveals a different
between the added value generated in a metabolic profile (generally more low) as
sector and the number of hours of human compared with other European Member
activity in that sector. States, due to multiple hidden causes [3], [4].
The set of intensive variables is extremely After December 1989, Romania has
important since it allows for comparisons shifted from the control system to a free
between various organisational hierarchical market system and joined the European
levels or for the same hierarchical level, but Union on January 1st, 2007. During this
for system of different size. They describe transition period, Romania had to build up
the qualitative characteristics of the parties, the civil, political and economic society from
while the extensive variables describing the the bottom level, to exceed state bureaucracy
quantitative relationship between parts and and to develop the rule of law by ensuring an
whole. independent judiciary system. In 2000, the
Intensive variables can be associated with Romanian institutional system was not yet
known typologies, taken over from other completely restructured, which created
countries, sectors, types of households, and obstacles in supporting the transition to a
can provide a qualitative characterization of market economy. All these slow structural
the metabolic elements subject to changes in the Romanian society can be
characterization, but at different hierarchical analysed based on a complex system of
levels. Likewise, defining a multi-level performance criteria, using the MuSIASEM
matrix that characterizes the distribution of a methodology.
fund variable type and a flow variable along The Multi-Scale Integrated Analysis
the respective hierarchical levels, allows for Methodology has been implemented for
the setting up of a set of correlations between Romania under FP7 Project Synergies in
intensive and extensive variable values Multi-scale Inter-Linkages of Ecosocial
across various scales. systems, socio-economic Sciences and
Other two major variables are derived Humanities (SSH), 2008-2012, involving
from the two primary variables described several researchers from Romanian Academy
above: (Raluca I. Iorgulescu, Lucian Liviu Albu,
The Saturation Index of Human Activity Cristian Stănică). Two major applications are
(SIHAi) is the share of total human activity further presented [3], [4], [5].
(THA), allocated to a certain compartment or Multi-Scale analysis of Energy
sector (HAi) - SIHAi = HAi / THA. Intensity
The Saturation Index of Exosomatic The energy intensity calculated at the
Energy Throughput (SIETi) is the share of economy level is not a suitable indicator for
TET consumed within a certain compartment the development of governmental policies
or sector (ETi) - SIETi = ETi / TET. envisaging the energy efficiency increase.
There is a link between the development The studies conducted in countries such as
level of an economy and the metabolic model Bulgaria, Hungary and Romania have shown
of the society. A high level of money flow that Romania has mostly reduced the energy
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intensity, which should qualify it as a increased, while the value added per hour of
competitive country in terms of energy, work grew faster than in other sectors,
although the reality may contradict this. indicating a relative improvement in energy
Energy intensity contains little information efficiency. As compared to neighbouring
on changes in energy consumption behaviour countries, Romania has a high level of the
that occur in the socio-economic system. industrial energy throughput because of the
Thus, the MuSIASEM approach can go still inefficient mechanism of industry
beyond energy intensity in view to inherited from the communist regime.
understand the energy complexity of The service sector (including public
interconnections between the energy flows of services) presents an exosomatic metabolic
an economy sectors. The results of the rate by 50% lower than the production sector.
analysis by sector reveal several aspects. A slight increase of its energy throughput per
At national level (level n), the TET hour of work without being accompanied by
variable examination shows a slight an increase of nominal value added generated
downward trend in the case of Romania per hour is characteristic, a trend opposite to
during periods when there were no increases other EU economies which focused on
in labour productivity, which means that service development.
there are various factors other than The agricultural sector in Romania reveals
productivity and energy efficiency, that a very low level of energy intensity, because
influence the behaviour of final energy the work is mostly based on people's work
consumption. The economy restructuring than on technological capital. This trend has
measures imposed by market liberalisation not significantly changed in recent years,
and privatisation of state energy companies therefore continuing to attach high
can lead to important changes in energy importance to animal and human productive
consumption. Likewise, there are also some capital. It is a consequence of property
other factors of human behaviour, such as reform, which returned the agricultural land
preference for computers and Internet, rather confiscated during the communist period to
than information on paper support, or peasant households. Land fragmentation and
unpredictable factors related to climate lack of technology have kept the low value of
changes, and so on. the agriculture exosomatic metabolic rate.
The analysis of Level n-1 allows for a The value added generated by the agricultural
more accurate comparison of the energy sector is well below the European average,
behaviour of neighbouring countries, based consequently determining lower prices for
on ETPW and ETHH variables. Thus, the animal and crop products than those in the
process of economy restructuring has EU, and low income of peasants from the
affected the energy consumption of the paid sale of products.
work sector in Romania (ETPW) more than in Socioeconomic Metabolism in Industry
Bulgaria and Hungary, with a drastic and Transportation
reduction (over 50%) in the first three years This analysis allows for a detailed
after the revolution. This shows that Hungary characterisation of structural changes in the
has experienced a powerful transition, while Romanian economy at sub-sectors level
Romania has faced serious difficulties. (lower levels n-3 and n-4) in the category
Likewise, there is a sudden increase of the called Productive Sectors (level n-2). Among
Exosomatic Throughput in Households others, the method allows for making a cross-
(ETHH) after 1996, as consequence of energy checking of data: (i) starting from a lower
prices liberalisation in Romania. level (using national statistics, starting from
The analysis of Level n-2 within the paid individual sub-sectors) (ii) starting from a
work sector (productive sectors, service and higher level (using Eurostat) with aggregated
government sectors and agricultural sector) is statistical data. This double check is
even more relevant to highlight the complex extremely important for economies with
mechanism of energy behaviour. structural changes and changes in statistical
Productive sectors are characterized by methodologies, when the lack of official
the highest level of energy intensity (EMREM, statistical information (effect of the informal
EMRBM). In recent years, the exosomatic economy) induces errors in time series
metabolic rate in these sectors has slightly compilation.
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The following are on level n-3: (i) Energy on different scales, interpolation of time
and Mining (EM), Building and series defined in a certain scale of
Manufacturing (BM) from the production aggregation by using information from the
sector (PS) (level n-2); and (ii) sub-sectors of level of other hierarchical scales, etc.
service sector and government (SG) (level n- The method was also applied for Romania
2) namely Transport (TR), Public in view to analyse the energy intensity, as
Administration (PA) and other sectors (OS). well as for the analysis of industries
Energy and Mining (moving from level n-3 behaviour. There is still noticed the presence
to level n-4) was disaggregated into six of old influences from the communist period,
industries, while Building and Manufacturing both at institutional and economic level,
was disaggregated into two sub-sectors. rigidities in the restructuring of certain
The first significant difference between energy industries and privatisation delays,
the Manufacturing sub-sector and Building low input of technology in agriculture, all
sub-sector refers to energy metabolism. these positioning the Romanian economy
Manufacturing sub-sector is 4-5 times more behind the EU states, in terms of
intensive in terms of energy than the competitiveness
Building sub-sector. Further disaggregating
the Manufacturing sub-sector, it includes References
twenty-one industries that can be organized
into three groups. [1] Georgescu-Roegen, N., The Entropy Law and
The adoption of this approach not only the Economic Process, Harvard University
allows comparison of results with other Press, Cambridge, 1971.
sectors of the Romanian economy (in view to [2] Giampietro, M., Mayumi, K., Ramos-Martin,
J., “Multi-scale integrated analysis of societal
study the way structural changes affect the
and ecosystem metabolism (MuSIASEM):
energy intensity of the economy), but also theoretical concepts and basic rationale”,
with similar sectors in other European Union Energy 34 (3), 2009, pp. 313–322.
countries. [3] Iorgulescu, R.I., Polimeni, J.M., 2009, “A
multi-scale integrated analysis of the energy
4. Conclusion use in Romania, Bulgaria, Poland and
Hungary”, Energy 34 (3), 2009, pp. 341–347.
The Multi-scale integrated approach [4] Iorgulescu, R. I., Albu, L. L. and Stanica, C,
enables the analysis of complex systems “Romania: Socioeconomic Metabolism and
across multiple hierarchical levels (eg, Sustainable Policies”, Economic Essays,
Edited by Gregory T. Papanikos, ATINER,
households, industries, regions, whole
Athens, Greece, 2012, pp. 357-368.
countries) using concepts characteristic to [5] Deliverable 3, Project SMILE,
live systems. The basic idea is that socio- Socioeconomic Sciences and Humanities
economic systems present two distinct types (SSH), Collaborative Project FP7-SSH-2007-
of metabolism (endosomatic and exosomatic) 1.
and two general forms of representation:
Fund categories (capital, land, people, hours
spent for activities) which maintain their
identity throughout the duration of the
analysis, and Flow categories (energy, value
added, food, material flows) - items that are
produced and consumed during the economic
process. The system organisation and
survival depend on the capacity of each
component element to continuously ensure
the necessary inputs (the flow elements) that
must be processed and consumed.
The method is implemented by an
increasing number of researchers, both for
assessing the behaviour of complex
economic systems and in particular cases,
such as the correlation of statistical indicators
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Şerbănescu Luminiţa
University of Piteşti, Faculty of Economic Sciences
luminitaserb@yahoo.com
Ţaicu Marian
University of Piteşti, Faculty of Economic Sciences
taicumarian@yahoo.com
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The deviations from the standard raw activity, which can be effective or
material and direct material consumptions are ineffective.
plus or minus differences resulted from the Another grouping of deviations takes into
failure to observe specific forecast account the responsibilities, such as:
consumptions or other causes (the use of • Controllable deviations imputed to
replacement materials, works not taken into responsible persons;
account in the determination of the standards, • Uncontrollable deviations generated by
price changes etc.). The deviations related to external factors, such as the increase in
raw materials and direct materials can be the price of the materials and that cannot
deviations in terms of quantity or price. be imputed to responsible persons.
For the company management it is B. Analysis of the finished products. In
important to determine the difference this chart an analysis is made for each
between the actual cost of the actual finished product. The standardized and the
production and its standard cost. The result of actually consumed material quantities, the
this difference is interpreted as follows: standardized value and the value spent for the
• A negative cost deviation corresponds to products made and the standardized and
an actual cost that is lower than the spent value per piece are highlighted. This
standard cost and is called favourable information can be displayed during the
deviation; desired time period or for certain materials.
• A positive cost deviation corresponds to In picture 2 we can see that information is
an actual cost that is cost higher than the displayed for the material “Flour”
standard cost and is called unfavourable standardized or consumed for each of the
deviation. finished products for a period of 3 months.
This separation of deviations highlights This chart too can be easily changed by
the significance of deviations as a selecting other options.
consequence of the manner of organizing the
The differences occurred between the of the demand in the market, problems in the
standard product quantities and the actual operation of the company, lack of raw
ones can have multiple causes: the evolution material, worker strikes etc.
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Deviations from the standard raw material excludes errors, it crystallizes the
and direct material can have causes such as: management’s vision concerning important
the incorrect determination of the standard aspects of the business, it instantly supplies
quantities (of the recipes), sub-standard information to all those involved, irrespective
consumption with serious consequences on of the data amount and complexity.
the quality of the products, unjustified loss, Deviations can be used in the
and inappropriate operation of the machinery. performance assessment. The production
manager can receive efficiency bonuses if the
4. Conclusions operational expense budget is observed. The
understanding of the causes that determined
For the management of the bakery the deviations can be used for learning based
company it is necessary to analyse deviations on experience and thus for the improvement
in terms of nature, size and causes in order to of the company performance. The results of
determine the measures required so that the analysis of deviations is a basis for the
actual costs can comply with the set substantiation of the costs for the next period.
standards. By using the standard-cost method The management by exception consist of
actual costs are compared to standard ones focusing attention on the fields that are not
and the deviations from the latter are within the expected parameters. The fields
determined, on cost centres, calculation with higher deviations receive more
items, and causes. attention.
Business Intelligence answers all Deviations must be reported taking into
challenges related to obtaining information. It account the following:
eliminates resource and time wastes, it • The correct identification of the influence
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especially for the vulnerable, those with regard the legal provisions being consistently
children and those with low incomes. We reviewed.
notice a different policy to taxation in Spain The social background was quite tense,
that provides substantial reductions in social given the wage cuts in the public sector
security contributions for those who hire especially; the dialogue was difficult, being
young people and people with a long-term sometimes interrupted by broad and even
contract. violent social movements and even (Greece).
The countries, which in the outbreak of For the implementation of new labor
the economic crisis had a rigid legislation in contracts that provided tax cuts instead of
the field of employment, have had to take salary increases, There were often created
measures to reform the legal framework. tripartite structures that also included
Many of these have introduced, under the governments of countries in crisis.
pressure of unemployment and massive The crisis has led to frozen minimum
segmentation of labor market, changes on wages (Greece) or a very little increase,
individual and collective redundancies. possibly with inflation. In addition, measures
Romania, for example, has massively have been taken in order to achieve more
adjusted the Labor Code, introducing new flexible arrangements on the number of
provisions relating to the extension of the working hours, changing the legislation on
trial period, the change in the number of short-times working schemes or part-time
daily working hours, the redundancy contracts.
facilitating formalities etc. Such provisions There were created various employment
for redundancy costs were introduced in schemes for the elderly and, in some
Portugal, Spain, Greece, Slovakia, Czech countries, the early retirement schemes were
Republic. limited or even eliminated (Denmark, UK,
With the reform of labor legislation the Austria, Finland, Spain).
so-called “staff loans” appeared between In Romania, several changes are made in
companies on fixed-term periods (France). In the Labor Law in 2011.
this way, companies could better cope with Among the main changes introduced by
temporary difficulties. the new Labor Law in the view to increase
A more efficient legislation of temporary the flexibility of the labor market are: the
work contracts allowed a more pronounced trial period is longer (for workers it has been
flexibility of the internal market, absolutely extended from 30 to 50 days, while for
necessary in crisis.[2] Romania was among executive positions from 90 to 120 days), for
the countries that have allowed access to temporary agency work maximum period
fixed-term employment contracts, extending was set up to 24 month, but with possibility
their duration and the number of possible to be extended to 36 month, maximum length
renewals. However, it has been considered, of fix term contract has been increased from
in most countries which have applied such 24 to 36 month and only 3 successive fix
provisions, including Romania, that the abuse term contract can’t be concluded, the
of such fixed-term contracts should be working time can surpass 48 hours and the
discouraged, thus limiting the use of non- overtime can be compensate with 3 days and,
standard contracts that threaten job in contrast with previous legislation, in case
security.[3] of collective redundancies the employers are
Collective negotiations can be another able to give priority to performance criteria
obstacle for improving the structure of the witch replace social criteria.[1]
labor market. From this point of view, the
crisis contributed to the end of collective 3. Conclusion
nationwide negotiations, very common in
Romania, being applied the negotiations at The recent years have been years of labor
sectorial level. The contracts signed at market reform. Noticing the challenges
company level have replaced the contracts determined by the crisis and not only, most
signed at national or branch level. As a result, EU countries have proposed radical changes
serious changes have occurred regarding in labor legislation including both present
working with unions, the system of and the years to come. Most provisions of the
consultations with the social partners, in this new legislation refer to measures capable of
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The bilateral aid-credits are legal, they the transaction adjudication, will sign the
cannot be used in order to pay for some external contract in the conditions foreseen in
import of products and services from the the present offer.
donor country. Insurances against risks can be concluded,
Usually, the credit insurers do not which are going to be incumbent on the
guarantee the aid credits, but they remain in exporter’s remission of firm offers on longer
the task of the state. periods of validity.
The export credits insurance covers a After the conclusion of the export contract
multitude of export risk, which are going to can appear two categories of risks[2]:
be grouped depending on the moment when some in the time interval between the
the risk happens and its nature. Viewed moment of the signing of the export contract
through the prism of time when they happen, and that of the delivery at export of the
the risks covered through the export credits ordered products accompanied by legal
insurance refer to the precursory period to the documents;
signing of the contract, either to its posterior others in the delivery period on credit
period. of the products and until the cashing of their
In order to enter with his products on the equivalent value.
foreign market, an economic agent is obliged In the period of the proper production of
to prospect that market to convince himself if products, which are the object of the contract
and in what conditions he would be able to for export, subsists the risk of interruption of
export on the respective market. the contract for reasons that are out of his
Prospecting the external market claims control.
expenses from the potential exporter’s share, To the extent to which the ordered goods,
without existing the certainty that the action works or services have unique character and
is going to have success, is going to make after the termination they can no longer be
possible the conclusion of export contracts. valorized by other beneficiaries, the
Even if in some countries exists the practice interruption of the contract generates losses
of bearing by the state of a share from the for the exporter.
prospecting expenses for the expenses that The risk of recording losses from the
remain in the economic agent’s task, the risk exporter’s side, in this phase of the unfolding
of commercial failure of the prospecting of the contract is a manufacture risk. If the
action cannot be neglected. In order to exporter has put up bail in favor of the buyer,
protect himself against such a risk, the which to guarantee in case of necessity the
potential exporter can conclude a prospecting return of the paid advance, at the concluding
insurance at a specialized organism in such of the contract or a quality guarantee, when
insurances. the exporter looses the right over the
In the case of some important objectives guarantee.
aiming the delivery of products, execution of In the case of the international
works or carrying out services over the cooperation works, (the execution by the
boarder of high value, the international exporter of some key objectives abroad or of
competence receives sharp forms. Some some works with the help of the equipments,
economic agents, in order to put themselves machines and materials and which follow to
in a more advantageous position in the be distributed, after the realization of the
competition at which they participate, present contract) exists the risk that those material
firm offers valid on a certain period of time. values belonging to the exporter may not to
The modification of the economic be able to be brought back in the country of
conditions (price, interest, currency, origin from political reasons.
financing conditions) in the validity period of During the commercial contract, the
the firm offer towards those taken into manufacture period can be extended on a
account at the elaboration of this, can train longer period of time. In conditions of
for the exporter agent, in the case of order inflation, the rapid growth of internal prices
adjudication, a loss that cannot be recovered could increase the manufacture costs of the
from the importer. The offeror is obliged to requisites so that the contract registers losses
put up bail in favor of the buyer, which is instead of benefits. The risk of increase of the
going to guarantee that the offeror in case of
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internal products can be protected through a that he has assumed, there is no way of attack
guarantee of the economic risks. in justice. From this cause the risk of non-
After the delivery of the products (the loss payment from the private buyer’s side is
of the executed works or the carrying our of considered a commercial risk, while the same
services) by the external partner, for the risk coming from the righteous public buyer
supplier appears the risk of failure to pay in is considered a political risk.
term of their equivalent value by the external The notion of political risk has a large
customer[3]. sphere of covering in which enters: the
In classic insurance company or the proper political risk as also the non-payment
specialized insurance organism, which acts risk from the public buyer and the non-
from the order and for the state account, can transfer risk of currency towards the supplier.
protect the exporter against such a risk. The The proper political risk is referring to war,
guarantee of the credit risk is trusted by the revolution, etc. and at those public authorities
insurer of the credit either to the exporter (in (nationalization, requisition, sequestration,
the case of the supplier credit), or to the bank prohibition or restriction of the import of
(in the case of the buyer credit). certain products, limitation of the currency
The bails put up by the exporter in favor transfer, repatriation of the actives belonging
of the buyer through which guarantees the to some foreign persons), which prevent the
good quality of the contract execution or the execution of the contract.
return of the advance received from the buyer Political character also has the measure
in the case of the non-fulfillment of the taken by a public authority from the
contractual obligations by the supplier, can exporting country to forbid the export of a
be valorized in the established conditions. certain contractual product and encountered
The risk of currency can also appear, in in the manufacture period.
this phase of the unfolding of the export The execution of the contract can be
contract. If the external customer (debtor) has influenced by the measures taken by a third
honored in term the arrangement assumed country.
towards the supplier in the case of the Some insurance organisms assimilate the
supplier credit in the case or towards the risk on non-payment of an export contract
bank, in the case of the buyer credit over the concluded as a righteous public partner, with
export can hang over the risk of registration the political risk.
of a losses resulted from the differences The risk of non-transfer of the currency
between the existent currency at the by the exporter, whom has trusted a supplier
conclusion of the contract and that practiced credit of towards the credit bank, in the case
at the payment of the credit. Against the risk of the buyer – credit, appears when the
of currency, the exporter can conclude a supplier cannot enter in the possession of the
insurance in order to protect him in such currency representing the equivalent value of
circumstances. his export because the monetary authority
The risks of the credit at export have been does not transfer the value owed by the
approached through the prism of the moment importer agent to his supplier and for whom
when this is manifesting. he deposited the equivalent in the local
Such an approach aims at the nature of the currency[4].
respective risks, which make the difference This transfer rejection of currency gets the
between the commercial, political, currency character of a political risk, being generated
and economic risks. by a measure taken by a public authority, and
The commercial risks, also denominate as not by his customer’s incapacity of payment.
risks of non-payment, are related to the Some insurance of export credits assimilates
buyer’s behavior towards his supplier. When the natural catastrophes produced on the
the external buyer is a private natural or legal territory of other country than that of the
person, this presents the risk of non-payment. exporter of the political risk.
He can be sued in order to oblige him to In the case of some catastrophe, a regular
respect the commitment assumed through the insurer covers the disappearance or damage
contract. to the insured goods, and an export credit
Against the public buyer, who shirks from insurer covers the buyer’s impossibility to
the fulfillment of the contractual obligations
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enter in the possession of the ordered goods The export credit insurer covers the risks
or to pay them at the settling day. of exchange course, which appear in both
There are within them: the risk of circumstances.
currency exchange, the risk of manufacture The risk of increasing the manufacture
costs increase of the products, which make costs of the product, which makes the object
the object of the export and the fluctuation of the export, appears as a consequence of
risk of the interest rate. the inflationary phenomena, which manifests
The risk of currency exchange appears on the market of the exporter’s country at the
when the money of the exporter’s country products with long cycle of manufacture, this
and the money of the importer’s country are risk is well marked and can make the costs
not related between them through a fixed increase to be rapid so that it can exceed the
exchanged report. margins taken in the pre-calculation and the
This makes that, the curse in which it is transaction results in losses[5].
effectuated the exchange of the two If the exporter, from various reasons of
currencies to evolve from a period to another caution, includes a bigger margin, can arrive
provoking negative or positive effects for the at a level of the offer price, which makes him
exporter. uncompetitive. If the exporter solicits the
The exporter asks for the term payment in inclusion in the commercial contract of a
order to protect himself against the risk of clause of price revision, this solution could
currency exchange, and also the credit bank, not agree to the importer.
which has trusted a loan to the importer, may In order to protect his interests, the
use various solutions. exporter solicits to the export credit insurer
to contact an import in his insurance against the economic risks.
customer’s money or in another money, so The fluctuation risk of the interest rate
that the risk of currency exchange, afferent to perceived at the supplier-credit and also at
the agreement of payment expressed in the buyer-credit. When the interest rate is
another money than the national one to being established so that the importer is
complete the risk of currency exchange going to pay to exporter on the validity
afferent to his debt. period of the supplier-credit or to the credit
This solution must operate with identical bank on the validity period of the buyer-
amounts of cashing from abroad and to pay credit, the supplier must take into account the
towards abroad, settling days on the same level of the interest at which this could obtain
date and to present the same risk of currency the necessary money for refinancing. If the
exchange or the most appropriate. interest of the market manifests a tendency of
the exporter to sell his product at a increase, it must be taken into account at the
course previously established. conclusion of the loan contract with fixed
The exporter avoids the risk of interest. There is the risk that the interest of
registration of a negative influence from the the market to be superior to the fixed one
fluctuation of the exchange course, but also foreseen in the contract, at the contract with
that of the realization of a favorable fixed interest, disadvantaging the credit
influence. exporter or the credit bank.
Each of these solutions presents Different solutions are applied for the
advantages and disadvantages and sometimes exporters’ or banks’ protection from the risk
- presents technological difficulties of of the interest rate fluctuation at the credits
application. The exporter addresses to an trusted to them.
export credit insurer in order to offer him the In some countries, the public institutions
necessary protection against such a risk. The administrate the mechanisms of export
exporter is subdued to the risk of exchange refinance with the fixed interest rates. The
course not only when he sells with the state bears a share of the interest that it has to
payment on term expressed in another money pay to the exporter when it loans from the
than his ones, but also when he himself market in order to complete its financial
concludes the subcontracting contracts with resources; another solution consists in the
the payment in term in the contractor’s establishment of the perceived interest by the
money or in another money. banks to their external customers. The
difference between the market interest
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(higher) and the fixed interest, cashed from specialized governmental organisms the
the external customer, is borne by the state in credits guarantee or insurance, which they
the whole validity duration of the credit trust to some external partners, who present
contract. more significant country risks.
No matter the organizational forms and After 1982s, the governmental organisms
their judicial statutes, the specialized of credit insurance have paid
organisms in export-import credits insurance indemnifications to the insurants in amounts,
conclude approximately the same types of which exceeded the cashed insurance
insurances, use the same types of policies, premiums, for the negative balance of the
put into practice different insurance annual financial operations, appealing to the
premiums. reserve funds previously constituted.
The governmental organisms of credit
3. The causes of political nature insurances have taken measures, in order to
exceed this critical financial situation[6]:
During the global economic crisis, many they have ceased to receive in
countries with difficulties, which have put insurance the credits granted to the countries
them in the impossibility to honor in term the encountered in the incapacity of payment or
arrangements assumed by external creditors. about to arrive in such a situation, they have
Many countries due to the lack of currency established commitments ceilings for the
resources necessary in order to pay the countries that beneficiated of unlimited
external debt service have been obliged to insurance or they have reduced the previous
solicit the re-staggering of the external debt ceilings to others,
arrived at settling day to creditors. they have reduced the
This fact was determined by: indemnification percentage of the damage,
the necessary rise in the price of correspondingly increasing the franchise;
gross petroleum by the OPCE members they have prolonged the term at
countries, which the insurance indemnification becomes
the increase of the interest rate on the eligible in the hope that meanwhile the
loan capitals market, debtor is going to find solutions in order to
the exacerbation of the protectionism pay for the outstanding credit;
by the developed countries, they have increased the perceived
the mistakes of economic, monetary insurance premiums;
financial politics of some capital importer they have narrowed the application
countries. sphere of the insurance.
Other causes of political nature have
contributed and contribute to the non- 4. Conclusions:
collection of the external debts:
the breaking out of armed conflicts in Through measures taken, the insurance
certain regions of the world, governmental organisms have followed the
the overthrow of some governments improvement of the report between the
by coup d’etat or by modification of some cashed premiums and the owed
political regimes; indemnifications and the realization of the
the dismemberment of some states financial equilibrium through the transfer of
with federal structure, the losses provoked by the political risks over
the setting up of the embargo against the insurants.
some states. Apart from the measures taken in their
The political events have a strong impact relationships with the insurants, the credit
over the economic increase in the countries insurance governmental organisms have also
in which these are produced and over the acted on the intensifying line of their
international commercial and financial collaboration with the big international
relationships. The exporters are more afraid private insurers in order to limit the negative
of the political risks than the commercial one. effects of the insured political risks. It is
In order to take shelter from the about the participation at the insurance of
consequences of such dangers, the exporter some political risks as co-insurers and the
countries and the credit banks solicit to the reciprocal receiving and yielding of some
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References:
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proportions within the region or state reasons for refusing a post due to the low
concerned, through increased social spending salary offered.
for the maintenance of the unemployed. Unemployment of expenses is determined
This phenomenon is caused by the by the inability of a part of the active
economic situation observed during periods population called technophobes, use and
of recession (economic depression) which adaptation of existing advanced
takes about 2-3 years, followed by a period techniques involving abstraction,
of economic boom with reducing interactivity, speed of execution and great
unemployment [7]. flexibility. This type of unemployment
can be avoided or reduced by improving
2. Unemployment extension-dominance of the preparation and orientation of staff.
present forms Flashing unemployment is due to the
inadequacy of mobility incurred and of
The causes of unemployment are divergence between the qualifications
determined by labor market mechanisms required of persons wishing to obtain a
which are subject to the economic job.
circumstances, demographics, technical or Seasonal unemployment exists due to the
scientific. This appears due to a unfavorable restriction of economic activity during
developments in socio-economic activities, certain periods of the year in which the
additional requests related to employment by economic conditions are less favorable. It
the new generations or persons at the age of is specific to the agriculture, construction
two [2]. At present, unemployment and tourism.
expansion takes place in the following forms: Structural unemployment is bounded by
Unemployment conversion; the restructuring of the economy trends on
Recurrent unemployment; activities which are subject to economic
Unemployment exclusion. and technical progress, the energy crisis
Unemployment conversion means and social and political phenomena. It was
affecting employees who had stable jobs in met both among the least developed
portfolio licensing, without having a length countries and in the developed world or in
of work. transition to a market economy. The
Recurrent unemployment includes people reduction would mean big investments,
who know a succession of periods of retraining, redeployment of affected
employment and unemployment. The most persons, etc.
affected are young people and people with Technical unemployment it shows a
low qualifications. company's activity through disruption of
Unemployment exclusion includes the the prolonged lack of orders. Affected
active population, including older persons, individuals are required to receive
poorly qualified or unemployed for a long unemployment benefits from the
period, even if you receive unemployment company. The return takes place once the
allowance or not. resumption of activity.
Thanks to the training process and the Technological unemployment it is
direct causes that determine it, highlighted by replacing the old
unemployment can be classified as follows: techniques and new equipment
Cyclical unemployment is a form of technologies and centralizes some capital.
structural season unemployment which Overcoming the phenomenon occurs with
occurs during the recession of the the retraining of labor in accordance with
economic cycle, or it may take birth in the new regulations.
collapsing economic activity in certain
seasons of the year. 3. Amplification of unemployment. Case
Unemployment of discontinuity appears study-Romania
and operates in accordance with the 3.1. Current situation
regulations concerning maternity leave
and other aspects of family life. In our country, unemployment is
Frictional unemployment represents the amplified because of unused production
effect of marginal use labor, justifying the capacity in the context of a deep economic
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Figure 2. Distribution of unemployed by age a few districts as Vaslui with the highest rate
groups on 2/28/2013 of 11.20%, Mehedinţi with a lower one
Distribution of unemployed by age groups
reaching 10.37%, Teleorman with a similar
on 2/28/2013 rate of 10.08%, Dolj with 9.96%, Alba with
9.12 %, Galaţi with the rate of 9.11% and
under
25 - 39 Buzău with the smaller rate of 8.37%.
over 55 25
50 - 55 years
years years
years 8% under 25 years 3.3. The forecast of the European
14% 14%
13%
Commission (EC) concerning
25 - 39 years
unemployment in Romania in the period
2013-2014
30 - 39 years
40 - 49 years
The European Commission improved the
prognosis for unemployment in Romania
50 - 55 years positively changing the unemployment rate
40 - 49 30 - 39
reaching 6.9% in 2013 and 6.8% next year
years years
24%
over 55 years from an estimated 7.3% advance in
27%
September for both periods. So we hope that
Source: www.anofm.ro our unemployment rate to maintain the slight
decrease.
Depending on the level of training of the However, let’s not forget that the
persons under investigation, the improvement in the labor situation is slowed
unemployment rate was recorded as follows: by difficult economic conditions.
The primary, secondary, vocational In the winter of economic forecasting,
and without education level – 73 percent; European Commission stated that
The secondary and post-secondary unemployment was reduced from 7.4 percent
level – 20 percent; of the work force (15-74 years) in 2011 from
The university level – 7 percent. 7% in 2012. The same organization predicted
that unemployment among young people,
Figure 3. Distribution of unemployed by which currently accounted for 23%, will be
education levels on 2/28/2013 reduced slightly this year, but will remain at
a high level.
Distribution of unemployed by
education levels on 2/28/2013
According to data announced by the
National Institute of Statistics, the
80 73
The primary, unemployment rate in seasonally adjusted
70 secondary,
form in December fell by 0.2 percentage
vocational and
60 without education points from the previous month at 6.5%, and
level
50 The secondary and compared to December 2011 is down by a
40 post-secondary level point, the number of unemployed aged
30 between 15 and 74 years, reaching 661.000
20
20 The university level
people.
7
10
4. Conclusions
0
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Section II
Business Economy and Administration
***
Subsection 2
Marketing – Management
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The evolution of each individual, starting relation to goods or services [1, 14, 15].
from the childhood, is a result of its Currently, the programs and advertising
interaction with other members of the group targeted to the children is omnipresent at TV.
and the society. Psychological approach to Thus, the media inform them about the
the problem, called Systemic psychotherapy existence of various products and stimulates
starts from the premise that humans influence them in their purchase [14, 16]. Mass media
each other [22]. Such an approach, (especially television) influence children to
particularly related to the child socialization form (independent) perceptions about
process, requires consideration of factors products, product use and develop brand
(agents) that underlying the modeling and preferences [26].
influence of the child's behavior as a In terms of culture, can only say that it
consumer. A number of researchers [49, 46, can be defined as „all material and spiritual
21, 12, 23] group the agents of child values created by mankind and institutions
socialization in family, friends (colleagues), necessary to communicate these values''[53]
media and culture. and it is raised for very few times in the
The parents are considered to be the main researches targeted on consumer
agents of socialization because they are the socialization. Among the countries that have
ones that shape the child's behavior as a conducted researches in this area one can
consumer [29, 38, 47] from childhood to include China [33, 34, 51], India [10],
adulthood [50]. According to Ward [49] the Mexico [27], Turkey [21, 19] and New
parents can influence the child's socialization Zealand [35]. All these researches were
process as a consumer due to the fact that performed strictly at a national level, but it
since childhood they observe the parents would be interesting to see the difference
behavior on purchasing decisions for between a family with a child in China
products necessary in the household and (where there is one child policy) and a family
many more. Also, the parents train them in with a child in the United States or, why not,
discussions about the type of products in Romania. As part of culture and social
purchased or consumed by the family (eg, environment, understanding the differences
they cultivate the idea that only a certain type between cultures help clarify the degree of
of grain consumption brings necessary influence of consumer socialization factors in
nutritional intake [20]. Between the two each culture (family structure, type of
parents, the mother has a greater influence on relationship with friends, colleagues) [23].
the process of socialization [6, 41] than the Although the most investigations have
father, who has a less significant role [9, 3]. been limited to the four factors mentioned
Like the parents, the peers are likely to above, along with them one have to take into
influence the purchasing behavior of the account the child's gender, socioeconomic
child. Socialization through friends can be level or age, which in turn have an influence
achieved either by the fact that it wants to be on the process of socialization [43]. These
accepted or integrated to a particular group, attributes define the extent to which the child
so he only buys or consumes products or is willing, is stimulated and allowed access to
services [28, 39,40, 2] or is taught how one social components. They also exert influence
can use the type of product or how certain on product categories, brands to which the
products satisfy the needs or desires they child pay attention to.
feel, or they simply are being aware of
products or brands they already use [42, 43]. Conclusions
The influence of the friends in the process of
socialization increases with the age of the The whole process of socialization, along
child while the parents manifested influence with the component factors, take part in
decreases [40, 49]. shaping the child as consumer. Starting with
On the influence of mass media, Moschis the family and the environment in which the
[40] states that ,,no other agent of child it is grown, from the first contact with
socialization has received more attention than the external environment, including here the
mass-media’ because together with the former cultural environment in which he was
parents and friends, advertising influences in grown,, the child is influenced to manifest in
a great extent the choices the children do in a certain way in the process of buying and
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Life-cycle Perspective’’, (1987) Lexington [50]Ward, S., Wackman, D.B., Wartella, E.,
Books, Lexington, MA in Kaur, A., Medury, Y., ‘’How Children Learn To Buy: The Development
"Impact of the internet on teenagers' influence on of Consumer Information Processing Skills’’,
family purchases", Young Consumers: Insight and 1977, London: SAGE Publications Ltd, Beverly
Ideas for Responsible Marketers, 2011 Vol. 12 Hills in Fan, Y., Li, Y., ‘’Children’s Buying
Iss: 1 pp. 27 – 38 behavior in China, A study of their information
[41]Neeley, S. M., & Coffey, T., ‘’Understanding sources’’, Marketing Intelligence and Planning,
the "Four-Eyed, Four-Legged" Consumer: A (2009) Vol. 27
Segmentation Analysis of U.S. Moms’’ Journal [51]Williams, L. A., Veeck, A., “An Exploratory
of Marketing Theory & Practice, 2007, 15(3), Study of Children’s Purchase Influence in Urban
251-261 in Sharma, A., ‘’Role of family in China,” paper presented at the Association for
consumer socialization of children: literature Consumer Research Asia-Pacific Conference,
review’’, International Refereed Research (1998) Hong Kong, June
Journal, 2011 [52]Yakup, D., ‘’An Impirical Study on the Effect
[42]Odabasi, Y., Baris, G. (2002). Consumer of Family Factor on Consumer Buying
Behavior. Istanbul: Kapital Medya CO. Behaviours’’, Asian Social Science, 2011, Vol. 7,
Publication in Hayta, A. B., ‘’Socialization of the No. 10
Child as a Consumer’’, Family and Consumer [53] Dictionarul explicativ al limbii romane (Dex)
Sciences Research Journal, 2008, p. 167-184 1998
[43]Özgen, Ö., ‘’The Living Period Approach
towards the Socialization of Consumer’’,
Standard
Economic and Technique Magazine, 1995,
34(402), pp. 85-91 in Hayta, A. B.,
‘’Socialization of the Child as a Consumer’’,
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Anastase (Bădulescu)Ileana
Tomis University, Constanta
mimiana2005@yahoo.com
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hierarchical level the needed information for and discipline lead to formalization and
decision making. complication of structures. This aspect was
The organization is based on clear extremely exemplified by various
objectives, rules and regulations establishing bureaucracies tending to „increase to the
the role and position of each one, providing maximum level of incompetence”.
the action framework and ensuring a unitary Evidently, the increase of organization
functioning. dimensions is not always directly
The simple employee is only asked to proportional to the increase of results for this
execute orders instead of creativity; actually, organization, but easily could actually be
creativity could become even dangerous for inversely proportional.
him. The horizontal approach of the Another problem in order to understand
organization implies the exceeding of the the functioning of the organization refers to
exclusively formal level and the insertion in information and informational technology.
the equation of the communication and Jay R. Galbraith defined the organizational
laterally cooperation need from the uncertainty as the difference between the
organization. information hold by the organization and the
For this point of view the pyramidal one it needs at that moment.[2]
organization is exceeded and unable to react The issue of modern organization
to modern society needs. relationship with the information is of great
Formal structures are always doubled by importance. The quantity of information
very strong informal ones, whose neglect received is huge under conditions of modern
could lead to a malfunction of the technologies development and leads to
organization. serious problems on the information
Therefore it is important for the processing and data selection of a real
organization to promote horizontal importance for an adequate functioning.
cooperation instruments, based on internal Another issue related to the organization
networks, the promotion of personal initiative structuring refers to its capacity to relate with
and communication. the existing resources. Understanding the
importance of each resource is essential for
Chapter I: Researches in the modern the organization.
organization The necessity of judicious using of
financial resources due to economic and
Researches related to the organizational politic pressures or labour force profile
development revealed that organizations tend modification requires an intelligently
to develop structures based on formal structured answer on behalf of the manager.
authority, vertical coordination in case of Treating the present labour force, better
stable environments and to encourage professionally trained and of high
flexible structures, based on horizontal expectations, on the basis of administrative
coordination and creativity in case of model traditionally based on formal authority
changing environments. Evidently, each one and rigidity represents a risky option.
of these two approaches has both, advantages Many times the modern employee is more
and disadvantages and most of the times the trained in a specific area compared to his
modern organization represents a mix of hierarchical leader, conferring to him more
elements from those two areas. power and influence and determining him to
They are not excluded but rather adopt a more critical attitude towards the
complementary, the manager having the leader’s capacities and authority. In this
choice to establish the best mix of factors for context, the human resource motivation and
an organization and a given situation. its mobility become more delicate.
Another interesting factor regarding the When referring to public organizations we
structural evolution of the organization refers take into account the public administration, at
to the dimension-oldness relationship, small central or local level and economic
organizations being generally based on institutions under the state control.
simple and informal structures. The role of strategic management is to
Once they develop and grow, pressures integrate the strategic vision at all levels of
related to ensuring organizational coherence the organization and to use all existing
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resources to achieve the objectives defined their leaders. In their vision, the manager is
according to effectiveness, resources implacable, relaxed and manipulator. At
economy and quality conditions. contrary, leaders are described by highly
Strategic management implies a timely emotional adjectives.
decision on what the organization has to do
in the future (planning), establishing who Warren Bennis, in his research On
will do it, how will do it (resources Becoming a Leader, enumerates 12
management) and monitoring the ongoing, differences between manager and leader:
control and assessment activities. [3]
By way of consequence, occasionally 1.The manager is in charge. The leader
arises the idea according to which for an innovates.
organization leaders are more valuable than 2.The manager is a copy. The leader is
managers. Continuing this idea, Brian Clegg authentic.
and Paul Birch stated that: „Managers fulfill 3. The manager maintains. The leader
tasks that would have been fulfilled anyway develops.
and leaders do things that could not be done 4. The manager stresses the systems and
without them”.[4] structure. The leader stresses the human
We consider that the above presented resources.
statement is little exaggerated, both concepts 5.The manager is control-based. The leader is
presenting important aspects within an trust-based.
organization. 6. The manager has a short term approach.
The concept of management refers to the The leader has a long term approach.
assumption of responsibility in order to 7.The manager answer questions such as:
achieve an objective and effectively allocate Where? How? The leader answers at: what
the resources (material and human) with this exactly? And why?
purpose. 8. The manager is permanently oriented
On the other hand, the leadership concept depending on immediate results. The leader
refers to the process of influencing and is oriented on medium and long term results
directing of organization members to achieve (impact).
the objective. 9. The manager copies. The leader creates.
Warren Bennis and Bart Nanus succeeded 10. The manager accepts the status. The
in resuming the difference between leader is disputing it.
management and leadership to a single 11.The manager is doing things the right
statement: „Managers are people doing way. The leader is doing adequate things.
things the right way and leaders are people
doing the adequate things”. [5] Strategic management approaches
We consider that in a public organization underline interactions between managers at
(or any other type) we need both leaders and all organizational structure levels as regards
managers; or more precisely, people to the substantiation, elaboration,
occupy both positions. A strategic vision is implementation and assessment of the
needed and current activities to be carried on. strategy.
Managers’ attitude towards human relations The advantages are those pursued with
can take different aspects, the intention to priority by practicing strategic management.
inter-relate but also the preference for e Ensuring the profitability, as an essential
lower degree of emotional involvement in objective of the organization, the
those relations. establishment of action lines for the
Thus the two perspectives may look organization, the concentration of employees
paradoxical, their cohabitation seconds the efforts with the purpose of achieving the
managerial activity, including the search for objectives, the consistency of actions for the
compromises and the establishment of a management and the other employees of the
power balance. The leaders especially organization so as to apply the proposed
dealing with ideas, interact in a more strategy, ensuring the organizational
intuitive and empathic way. flexibility in order to value all the
An interesting aspect is the way the opportunities of the exogenous environment
subordinates describe their managers, namely but also strong internal points.[6]
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A normative, evolved and dynamic that will compose the production process,
decisional pattern is proposed. their examination in order to recompose them
It plans an effective way to structure the in comparison with certain economic,
decisional process, by integrating elements of technical and personnel criteria so as to
the iterations involved in a logical achieve the objectives established under an
framework, reflecting the operability of the increased effectiveness.
decisional mechanism. [7] One of the The greatest importance in organizing the
doubtless advantages of using this decisional company is represented by the aggregate of
pattern consists of warning the decider on work processes developed within the
possible (mutual) influences between the company, named procedural organization.
decisional process in its integrity and the Depending on the covered fields, the
(exogenous and endogenous) ambient procedural organization could be approached
environment of the organization. as follows:
Another advantage is generated by the - organizing the entire activities of a
fact that in an economic world in a company;
permanent change, the decisional process is - organizing different component
placed in a “vicious circle” usually generated activities (production, sale, marketing, supply
by a stimulus situation that generates another etc.)
at its turn, being at its turn a source for The relationship between all these factors
another decisional process. of influence, active in the public organization
This decisional “perpetuum mobile” environment, emphasize the complex
corresponds to economic fragility and situation where the public organization is
instability created by an ambient conditioned for its functioning by features
environment usually hostile and hard to usually being situated beyond its control or
define for many of the Romanian managers. influence capacity.
The complexity of the decisional pattern Is true that the relationship between the
and the impeccable logic recommends it for organization and its environment is not
use in strategic and tactical decisional unilateral, it has the possibility to choose and
processes for all companies in Romania, try to influence few factors, although the
irrespective of their dimension or field of efforts are not that easy. Therefore, the public
activity. From a theoretical perspective, it organization is impossible to be understood,
confers a coherent image of the entire analyzed or leaded in the absence of
decisional process with its elements and understanding the importance and influence
phases and emphasizes the correlations of the environment it is placed in. [9]
between them.
From a pragmatic perspective, the pattern References:
can be used for training and improving the
competences of the managers and specialists [1]. Rue, Leslie W. Holland, Phyllis G. McGraw-
from the economic organizations that use Hill (New York), Strategic management
scientific management as a working ,1986 ,
[2]. Jay R. Galbraith , Planning complex
instrument.
organizations, Addison-Wesley Pub. Co,
Using the pattern also occurs when trying 1973,
to compare results of certain companies, [3]. Alan Walter Steiss, Strategic Management
which - under similar economic conditions – and organizational decision, Lexington
addressed the same strategic pattern. Books,Business & Economics, 1985,
Different results that were “accepted” are [4]. Brian Clegg&Paul Birch,Instant Creativity-
generated by the influences, mutual or problem solve brain storm innovate, Kogan
unilateral of the environment and Page ,1999,
decider/deciders on each phase of the [5]. Warren Bennis , Bart Nanus ,Leadership in
strategic decisional process.[8] the Public Sector, 2000,
[6]. Theodore H. Poister; Gregory D. Streib
Public Productivity & Management Review,
Conclusion: 1999,
[7]. O. Nicolescu (coord.), Decisional system of
Organizing the company as a managerial an organization, Bucureşti, Editura
task consists of decomposing it in elements Economică, 1998,
688
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Asandei Mihaela
“Constantin Brâncoveanu” University, Piteşti
Gangone Andreea-Daniela
“Constantin Brâncoveanu” University, Piteşti
mihaela.asandei@univcb.ro
andreeagangone@yahoo.com
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Figure 1. The evolution of modern trade market potential in the next periods of
formats on the Romanian market economic boom [17].
1000 Currently, the development of hypermarkets
800 is performed on the following directions:
600 Diversifying the trade formats used
400 by the same retailer.
200 Opening smaller selling areas, placed
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 in the urban zone (for example, the French
Total number of units
Number of hypermarkets
32
1
43
1
56
3
64
5
109
10
175
36
252
64
356
88
443
99
543
116
651
136
773
150
retailer Auchan launched the concept Auchan
Number of supermarkets 19 22 26 28 33 39 49 85 108 156 207 275 City on the Romanian market in 2012, a store
Number of discount stores
Number of cahs&carry stores
1
11
2
18
4
23
4
27
32
34
64
36
100
39
142
41
194
42
223
48
257
51
297
51
of 5,000 m2, focusing on food, while Cora
opened two new locations, also considerably
Source: Data processed by authors from lower than the existing ones).
http://www.magazinulprogresiv.ro/pagina/31 Better management of costs.
4/Retaileri_internationali.html, Accessed on Applying differentiated marketing
February, 11, 2013. strategies adapted to the target customers.
For 2010-2020, the analysts of Oxford
In the third stage (2010 – 2012), the Economics have predicted an average annual
Romanian retail market was at the beginning growth rate of 5% [18], as a result of the
of its growth [14], this being illustrated by: upward trend of the purchasing power, the
the fragmented nature of the market, aggressive development of modern trade and
maintaining traditional patterns of trade, the the change of the purchase behavior. These
emergence of the new retail formats, factors will contribute to the predicted
switching from a major proportion of growth of 62% of the Romanian retail market
traditional trade to the equal share between value, meaning a turnover of 26 billion euros
this and modern commerce and the early annually.
stage of the development of electronic
commerce. 4. Methodology of research
At the beginning of 2011, the five largest
retail chains on the Romanian market The purpose of this research is to analyze
(Kaufland, Carrefour, Real, Penny Market and the evolution of hypermarket within the
Plus) had a cumulated market share of only context of the Romanian economy
22% [15], and there was room for new entries. development, during 2001-2012. In this
2012 was the year of diversification on the regard, we identified the macroeconomic
Romanian retail market as every major retail factors with major influence on the
chain developed a mix of different store development of modern retail formats in
formats tailored to the local conditions and to Romania and we evaluated their impact on
the specific segments of consumers. The hypermarkets.
forecasts made by the analysts of the European O1. The objective of this paper is to
Commission show moderate growth trends for evaluate the impact of some major
Romania in 2012-2013, and a gradual recovery macroeconomic variables on the
of private consumption up to a growth rate of development of hypermarkets in Romania
3.4% in 2013 [16]. To observe the evolution of hypermarkets
In 2013, Romania's retail system conquered on the Romanian retail market we used the
new territories in the medium and small urban number of hypermarkets, as there are reliable
areas, which represented a very good expansion data for the period under review. The
potential for both discounters and small sized turnover or total area of Romanian
chain stores. In addition, the Romanian rural hypermarkets would have certainly been
environment, with about 10 million potential more useful in our analysis, but there are no
customers, was a particularly attractive market reliable statistical data, which enable their
for large retailers. At the level of this year, quantification.
experts predicted the opening of more than 250 From the multitude of macroeconomic
new units in the retail market, investment being factors relevant to characterize the state of
made by major international retail groups for the national economy, we used the GDP,
continuous capitalization and to conquer the expressed in Euro, in total value, the average
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monthly net salary [19], the inflation rate and inflation rate; i = error; i = years from 2001 to
the exchange rate EUR/RON [20] as we 2012).
considered that these indicators reflect the The results of the multifactor regression
development level of the Romanian economy model are summarized in Table 2.
during the period under review, from a dual
perspective: the state and the individual. The Table 2. Results of the regression function
values of these indicators are summarized in Regression
Statistics
Table 1., indicating that after the
redenomination of the national currency in Multiple R 0,9918
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significant, situated in the range of confidence intervals and can distort the interpretation of
1,038; 1,768 (Table 3). the model. The demonstration of
multicollinearity is carried out by analyzing
Table 3. Coefficients for the independent the correlation matrix of the independent
variables variables considered, matrix which is
Coeffi- Standar presented in Table 4.
cients d Error t Stat P-value
The result analysis indicates a strong
Intercept -312,062 41,9020 -7,447 0,0001 positive correlation between the variables
GDP 1,4032 0,15443 9,0867 4,01E-05 AMNS and GDP, a positive correlation
AMNS 0,0324 0,0114 2,8203 0,0257 between the variables ER and GDP, and
ER 44,6603 9,1110 4,9018 0,0017 between ER and AMNS. The correlation
IR 3,6875 0,6462 5,7062 0,0007 matrix showed that between the variable IR
Source: Data processed by authors and the variables ER and GDP there is a
very strong negative correlation, and between
The coefficient for the AMNS variable with IR and AMNS there is a strong negative
the value of 0,0324 is positive and indicates a correlation.
direct link between HY and AMNS, so that an From the analysis of the coefficients it
increase of 1 leu of the AMNS increases the HY results the following regression model:
with 0,0324 points. Since P-value=0.0257<0.05, HY=119,375+2,616×GDP+0,344×AMNS +
the coefficient is significant in the range of (-39,461)×ER +0,539×IR+ i, (2)
confidence 0,005; 0,059. The results of the regression function
The coefficient for the ER variable with the show that the hypotheses of the study are
value 44,6603 is positive and indicates a direct valid and, therefore, the evolution of the
link between HY and ER, so that an increase of hypermarket is influenced by: the gross
1 leu of the ER increases the HY with 44,6603. domestic product, the average net monthly
Since P-value = 0,0017<0,05, the coefficient is salary, the exchange rate of the national
significant in the range of confidence 23,116; currency against the euro and the inflation
66,204. rate.
The coefficient for the IR variable, with a
value of 3,6875 is positive and indicates a direct 5. Conclusions
link between HY and IR, so that an increase by
one unit of the IR determines an increase of the At present, the Romanian retail presents a
HY with 3,6875 points. Since P- high potential of development, showing an
value=0.0007<0.05, the coefficient is significant accelerated development of its life cycle. At
in the range of confidence 2,159; 5,215. this stage, the features of modern trade
The results of the created econometric formats are finalized, the level of competition
model are influenced by the manifestation of increases, modern retail networks are
the phenomenon of collinearity [21], which reinforced and there are still attractive
occurs when a group of independent variables locations for implantation, which allows to
are strongly correlated. achieve attractive rates of profit.
The conducted research shows that the
Table 4. The matrix of the correlation dynamic hypermarkets in Romania are part
between the independent variables of a positive trend, being influenced by the
GDP AMNS ER IR overall economic and social development of
PIB 1 our country, analyzed through the
AMNS 0,811929 1 development of the GDP, the average
ER 0,610176 0,714892 1 monthly net salary, the exchange rate and the
IR -0,80028 -0,7316 -0,78613 1 annual rate of inflation. It is interesting to
Source: Data processed by authors observe that the Romanian retail continued
its positive evolution during the economic
In this case, there is an over-evaluation of crisis of recent years, a fact justified by the
the coefficient of determination, and of the desire of some major international investors
dispersions of the estimated coefficients, to gain significant market share, which will
which leads to an increase in the confidence generate substantial revenues during the
anticipated economic recovery.
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The limits of the study are derived, on the 8066688> [ Accessed on 07 February 2013]
one hand, from the evaluation of the [13] Patriche, D., Treaty of trade economy,
hypermarket development in Romania only Eficient Publishing House, Bucharest, 1998.
through the number of units and, on the other [14] Bălan, C., 2011. “Current trends in consumer
purchase power in modern retailing in
hand, from the analysis of a limited number
Romania”, International Conference of the
of influence factors. In the future, the Institute for Business Administration in
research will be continued in order to create a Bucharest, pp.2-7.
methodology for the calculation of an index [15] Vaschi, M., “The way analysts see the
of retail development, which will be based on present and the future of retail”, Modern
a larger number of determinants. Buyer, 2011, [online] Available at:
<http://www.modernbuyer.ro/actualitate/2-
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[1] Iorga, N., Istoria comerţului românesc, Tiparul 10 February 2013].
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[2] Dayan, A., Manuel de la distribution, PUF, retail”, Magazinul Progresiv, January 2013,
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[3] European Commission, 2010. Report of the <http://www.magazinulprogresiv.ro/articol/3
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European Council, European Economic and ern.html> [Accessed on 15 February 2013]
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Exercise of monitoring the retail market and retail”, Magazinul Progresiv, January 2013,
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Balabanits Anzhelika.,
Minakova Iryna.
Donetsk National University of Economics and Trade
named after MykhailoTugan-Baranovsky
balabanits@ukr.net
irminako@gmail.com
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1 2 3 4
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A special place in the firms technological his book «Competitive Advantage». In the
architecture must hold information analysis of the enterprise Porter recommends
processing technologies such as Digital to stop thinking in terms of organizing the
Signal Processing (DSP) technology online distribution and offers to focus on business
analytical processing (OLAP - On-Line processes and create additional value chains
Analytical Processing); technology for that cross organizational framework, the
automating business processes (EDMS - boundaries of departments and functional
Enterprise Document Management System); entities. A string of additional cost includes
ITDM technology of data mining (DM-Data all business processes that must be performed
Mining); technology that extracts data from on receipt of orders from customers for
the new non-trivial knowledge in the form of delivery of the final product.
patterns, relationships and laws (KDD - Channel marketing interactions company
knowledge discovery in databases). that operates on principles of «value-added
The key concept of understanding the role chain» M. Porter, covers all required business
of information and technology architecture process cycle marketing interactions to
for the interaction of enterprise marketing ensure the highest level of customer
management is the concept of «chain of satisfaction, which necessitates the formation
added value» that the proposed M. Porter in
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human society needs to be at its disposal; output thorough knowledge processes that
thus only those goods and services that meet are taking place in the black box.
their needs will survive in the actual
economic market [4]. Figure 1: Scheme of a Black Box Model in
Therefore, knowing and understanding behaviorism
consumer behavior has become a necessity;
Sets of
ignoring the manifestation of the behavior Sets of
respon
stimuli
can cause serious imbalances in the economy ses
[2].
The choice of each individual to walk, Source:
drive their personal auto vehicle or to take http://en.wikipedia.org/wiki/File:Blackbox.svg
the public transport is influencing the mode
of how the local, regional or global economy The Black Box Model (figure 1) can be
evolves. All of these choices are influenced applied in any domain, from psychology to
not only by the environment but also by the sociology, physics to economy and also in
population density, employment density and the transport sector. The scheme presented in
the distances that are needed to be covered. figure 1 shows the interaction of stimuli with
The necessity to supply the needs of the the input that is “filtered” by the Black Box
population worldwide cannot be done only results the output and sets of answers that are
by a company, so we must “break down” the needed to understand the consumer behavior
total demand into segments and allocate in transport systems [5].
different segments to different companies By studding the sets of stimuli and the
that are the most equipped to handle the pattern of each individual we can apply the
situation [6]. Black Box Model Theory and determine or
To apply with success the Market influence the decision of each person.
Segmentation Theory in transport systems we The external factors (sets of stimuli) like
have to consider four major factors: economic, social, technological and
● clear recognition of the cluster segment demographic influences are “supplying” the
that we are targeting; potential customer with different types of
● effective number of individuals that are information that represents the input.
selected; After the input is establish the Black Box
● amount of resources that is needed; is analyzing the contents. Many
● policy and resources of the company. psychologists resemble the Black Box Model
with the process of thinking in which we
2. The Black Box Model - A new way to always know the data that is entered, the
study Consumer Behavior in transport possible results but we never know what the
output will be. However a series of internal
The specialists in the field of marketing factors were identified as: attitudes,
Kotler P. and Armstrong G. suggest a basic personality, perception, factors that
pattern to buyer behavior; it uses the term participate in the formation of the buying
"black box" and shows that marketing decision.
incentives influence over the decisions on The sets of responses (output) represent
buying consumer goods and services. They the final step of the process which determines
also study the main factors that influence the the answer of the person if to buy or not a
consumer behavior: cultural, social, personal particular product.
and psychological. The consumer survey is To better understand the consumer
problematic from the perspective of behavior we have to comprehend how the
determining as accurately as possible the environmental stimuli interact with the
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decision process which determines the person As we take a closer look at The Black Box
to respond favorable when choosing different Model in behaviorism and Black Box Model
types of products, promotions and services. applied in Marketing we can see that they
can easily be applied in all types of
Table 1: Black Box Model shows how companies with different domains of activity
stimuli, consumer characteristics and from around the world which can help
decision processes interact in eliciting improved the economic well being of their
consumer responses clients.
Environmental Factors Buyer’s Black Box
As a general conclusion regarding the
Marketing Environm Buyer Decision Buyer Black Box Model applied in transport we say
Stimuli ental Characteris Process ’s
Stimuli tics Respo that the importance of identifying the real
nse
Product Economic Attitudes Problem Produ needs of the public should be the most
recognitio ct
n choice
important aspect that a company should
Price Technolo Motivation Informatio Brand analyze.
gical n search choice
Place Political Perceptions Alternativ Dealer
e choice
evaluation 3. The behavioral market segmentation
Promotion Cultural Personality Purchase Purch
decision ase theory applied in transport systems
timing
Demogra Lifestyle Post- Purch
phic purchase ase The need of mobility has increase
behavior amou
nt considerably in the last decades which means
Natural Knowledge
that the behavior of the population has
Source: Sandhusen R. L., 2000, Marketing, Barron's
changed. Clearly, transport systems have a
Educational Series, Third edition, P. 181
positive economic and social effect on the
wellbeing of individuals.
According to [8] the Black Box Model
The behavioral market segmentation
applied in Marketing (Table 1) shows how
theory is about understanding why specific
the environmental factors interact with the
costumers are within a market. The
consumer characteristics and results the
preference, attitude and demographic
decision process. This black box model
variables are the key components of the
(Table 1) is linked with the black box theory
market segmentation theory (MST).
in behaviorism (figure 1) which is
The approach we want to make between the
concentrated on the relation between the
behavioral market segmentation theory and
stimuli and the response of the consumer
transport systems consists in analyzing all the
regarding its decision. As we can see from
essential factors that are part of the MST and
the above table the environmental factors
applying them in different transport sectors
(marketing stimuli and environmental
improving this way the Intelligent Transport
stimuli) and the buyer’s black box (buyer
Systems (ITS) [Intelligent transport systems
characteristics and the decision process)
(ITS) are advanced applications which, without
have a large impact on the buyer’s response
embodying intelligence as such, aim to provide
regarding his needs. innovative services relating to different modes of
When applying the Black Box Model in transport and traffic management and enable
different clusters usually the marketing various users to be better informed and make
stimuli are processed by the company and the safer, more coordinated, and 'smarter' use of
environmental stimuli are given by the social transport networks.
factors. The buyer characteristics and Source:http://en.wikipedia.org/wiki/Intelligent_tr
decision process can be taken only by the ansportation_system].
buyer. The market segmentation theory can help
us categorized different types of customers in
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order to be able to meet their demands. The consumer behavior related to the
MST usually groups individuals by gender predominant use of the car can be that by
followed by the type of transport used to using this mean of transport the consumer is
travel long or short distances, preferences more mobile and flexible in traveling.
regarding the comfort provided by the mean The Eurostat statistic (see Table 2) is
of transport. providing important information about the
consumer behavior from country to country.
Table 2: Passenger transport in the As a first indicator we can see that
European Union during 2000 – 2010 consumers’ behavior is different from a
country to another depending on their
different cultural patterns. In some cases
(Belgium, France, Italy, Luxembourg,
Austria, Sweden, United Kingdom,
Switzerland, FYR of Macedonia) we can
notice that the passenger car transport has
decrease in favor to buses or railways.
The market segmentation theory can be
applied in transport by using the data
presented in table 2; according to the theory
the territorial location of the population is
one of the most important steps in
segmenting the group of people that we are
interested in. As we can see from the table
people have different types of behavior from
a state to another regarding the mean of
transport they use.
The economic influence is an important
factor which determines different types of
people to use their personal cars more than
the public transport (Table no. 2).
A very important aspect in the behavior of
each individual is represented by its own
culture which determines different types of
behavior from a region to another. As we can
Source: Eurostat, accessed at 13.04.2013, see in the above table the countries from the
http://epp.eurostat.ec.europa.eu/statistics_explain European Union have a significant increase
ed/index.php?title=File:Index_of_inland_passeng of individuals that travel by car in
er_transport_relative_to_GDP,_2000-
2010_%28index_2000%3D100%29.png&filetime comparison with Turkey which is not a
stamp=20121016055843 member of the E.U.
The knowledge of consumer needs and
According to the Eurostat statistics buying process is the cornerstone of all
revealed in 2012 (see Table 2) the trends in successful activities in transport and not
passenger transport is variable from country only; it represents the key to understand how
to country depending on their specific needs. buyers fulfill their needs, recognize
The table presents information about the information, evaluate brands, make
type of transport that is used (rail or road) purchasing decisions and behave after they
and as we can see the most dominant mean of buy the service or object they wanted; the
transport is by cars. An explication about the marketing operators can learn about how to
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act in order to meet the needs of their Management, Prentice Hall, ISBN 978-0-13-
customers. 145757-7;
[7] Kuester Sabine, 2012, MKT 301: Strategic
Marketing & Marketing in Specific Industry
4. Conclusions Contexts, University of Mannheim, p. 110;
[8] Sandhusen R. L., 2000, Marketing, Barron's
In this article the authors tried to Educational Series, Third edition, p. 181;
[9] *** Eurostat Passenger transport in Europe
implement the Black Box Theory and the between 2000 – 2010, accessed on
Behavioral Market Segmentation Theory in 13.02.2013,
the transport networks. In this way we had http://epp.eurostat.ec.europa.eu/statistics_exp
lained/index.php/Passenger_transport_statisti
exposed and studied how to implement new
cs#Main_statistical_findings;
concepts in attracting passengers to use [10] *** Wikipedia – Black Box Model, accessed
different types of transport contributing on on 10.04.2013,
reducing the impact that uncontrolled http://en.wikipedia.org/wiki/File:Blackbox.sv
g;
transport have on the environment and [11] *** Wikipedia – Intelligent transport
wellbeing of individuals. systems, accessed on 12.04.2013,
The aim of this paper is to offer support to http://en.wikipedia.org/wiki/Intelligent_trans
companies from the transport sector in portation_system.
developing new marketing strategies which
can help the consumer decide what type of
services needs to access. This study of what
type of transport people uses shows that are
important differences between consumers
and their behavior regarding the mode of
travel.
References:
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Bilouseac Irina
“Stefan cel Mare” University of Suceava, Faculty of Economics and Public Administration
irinab@seap.usv.ro
1
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are, however, inspected by the latter and Vertical deconcentration, which has been
must comply with the decisions of their depicted first, entails the hierarchical
superiors. [8] subordination of deconcentrated services to
Article 120, paragraph 1 of the their respective central government structure,
Constitution of Romania provides that: “The while the second type, horizontal
public administration in territorial- deconcentration, consists in the local
administrative units shall be based on the management of these services by the central
principles of decentralization, local government representatives in the region. [2]
autonomy, and deconcentration of public Horizontal deconcentration is the type that
services.” has been adopted in Romania, where the
The Framework law no. 195/2006 of prefect is the one managing the
decentralisation defines deconcentration as deconcentrated public services on a local
follows: “the transfer of administrative and level. However, there is no way of
financial responsibilities from central identifying those public services that may
governments and other specialised structures require this type of double subordination of
of the central authorities to their own lower these services to the prefect and to the central
level regional structures.” This principle is government authority, as this may lead to
also stated in Article 2 paragraph 1 of the conflicting decisions. [2]
Law no. 215/2001 republished of the local
government structures, as an essential The graphical representation of vertical or
principle of organisation and functioning of horizontal deconcentration is outlined in the
public administration: “The organisation and figures below:
functioning of local authorities in the
administrative and territorial units are based Fig. no. 1 Graphical representation of
on the principles of decentralisation, local the vertical deconcentration of public
autonomy and deconcentration of public services
services (…)"
In A. Teodorescu’s opinion, Central government ministries
administrative deconcentration meant (responsible for public services)
“enhancing the power of the central
government agents located in counties and Set up and
municipalities”, while Paul Negulescu organisation
analysed the same principle, defining it as
follows: “When a local or special authority, Deconcentrated public services
whose representatives have been appointed (upwardly accountable to
by central government structures, are granted central government ministries)
the right to make certain decisions, one
cannot speak of decentralisation, even tough
a certain degree of autonomy is permitted in Fig. no. 2 Graphical representation of
those structures. In this case, we are dealing the horizontal deconcentration of public
with a diminution of the centralised system. services
This diminished form of centralisation is
called deconcentration.” [4] Institution of Deconcentrated
An opinion we acquiesce with is that of the Prefect public services
Petru Filip, who stated that deconcentration (government (upwardly
consists in the delegation of authority, duties representative Control, accountable to
and responsibilities between the central and in the area) Coordination the Prefect)
the local government structures, in terms of
the public services provided for the entire
The two figures depict the double
community. [5]
subordination of the deconcentrated public
services, both to the prefect and to the
3. Graphical depiction of deconcentration
particular central government structure in
charge of each public service.
There are two types of deconcentration:
horizontal and vertical, as depicted in Fig. 1.
2
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4
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7. References
5
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Boldureanu Daniel
University of Medicine and Pharmacy „Grigore T. Popa”, Iasi
boldureanu@yahoo.com
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2007 48.05
B. The proportion of medical staff from 2011 30.36
total hospital staff National average 26.48
The proportion of medical staff from total Source: Annual evaluation of
hospital staff signifies a high degree of management activity assessment sheet 2007-
professionalism of the medical act by an 2011.
increasing number of health professionals.
At “St. Spiridon” County Clinic D. The average number of visits to a
Emergency Hospital Iasi, this indicator had a physician in outpatient
value of 74.67% in 2007 year and decreased In “St. Spiridon” County Clinic
to 69.05% in 2011 year, which is above the Emergency Hospital Iasi this indicator was
national average (64.61%). achieved almost double than the national
average in analyzed period.
Table 3. The proportion of medical staff
from total hospital staff in “St. Spiridon” Table 5. The average number of visits to a
County Clinic Emergency Hospital Iasi physician in outpatient in “St. Spiridon”
Values achieved County Clinic Emergency Hospital Iasi
(Percent %) Values achieved
2007 74.67 (Percent %)
2011 69.05 2007 48.05
National average 64.61 2011 n.a.
Source: Annual evaluation of National average 26.48
management activity assessment sheet 2007- Source: Annual evaluation of
2011. management activity assessment sheet 2007-
2011.
C. The proportion of highly educated * n.a. – not available data.
medical staff from all medical personnel
At “St. Spiridon” County Clinic It may be noted that with increasing the
Emergency Hospital Iasi the value of this number of doctors employed, decreases the
indicator obtained in 2007-2011 period were number of visits per physician in outpatient.
above the national ones. The possible This aspect has a direct influence on the
explanations could be: quality of medical care, because it reduces
a significant number of medical staff the time allocated to each patient and the
have graduated higher educational courses number of consultations of the medical
organized by University of Medicine and personnel is not exceeded.
Pharmacy „Grigore T. Popa”, Iasi According to the managerial plan [6], the
(especially medical assistant); possible explanation might be:
existence of a significant number of a high addressability to ambulatory
highly educated medical staff, by clinics;
organizing competitions for new the existence of equipments for the
employment after the block period on the investigations, along with the possibility
maximum norms of the organization, to of clinic hospitalization in the immediate
improve the quality of care; vicinity;
the presence of teachers from University development of the national program to
of Medicine and Pharmacy „Grigore T. perform medical tests (the hospital
Popa”, Iasi through their integration into ambulatory had a recognized medical
the hospital. analysis laboratory, according to ISO
quality standards).
Table 4. The proportion of highly
educated medical staff from all medical 4. Conclusions
personnel in “St. Spiridon” County Clinic
Emergency Hospital Iasi The analysis of indicators for human
Values achieved resource from St. Spiridon” County Clinic
(Percent %) Emergency Hospital Iasi revealed:
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References
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Boldureanu Daniel
University of Medicine and Pharmacy „Grigore T. Popa”, Iasi
boldureanu@yahoo.com
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malpractice cases;
using of an identification system
regarding the quality of medical care in
each section or department of the hospital.
References
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Borovykov Oleksandr
Human Resources Management and Labor Economics Chair, Poltava University of
Economics and Trade
www.borovikov.at.ua
borovikov@ukr.net
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86% of the total number of persons in these strike can be initiated if conciliation failed to
enterprises. resolve a collective labor dispute (conflict) or
Branch office in Poltava acting together the owner or authorized body avoids
with local governments, executive conciliation procedures or fails to comply
authorities, employers' associations and trade with the agreement reached in the course of
unions involves collaboration of labor resolving collective labor dispute (conflict).
arbitrators and experts. Agreements on Chapter III of the Law .[1.] provides
cooperation with all actors involved in the procedures for strikes and includes a number
regulation of industrial relations were of articles: Article 17. “Strike“, Article 19.
concluded. “The decision to declare a strike“, Article 20.
Professionals or rather 18 labor arbitrators “Guidelines strike“, Article 21. “Conclusion
(including arbitrator - author of the article) of an agreement on resolving a collective
help in the effective work, 5 persons of labor dispute (conflict), monitoring its
independent intermediaries and in each implementation“, Article 22. “Recognition
district information and consultation center strikes illegal“, Article 23. “The decision on
(29 persons) were established and operate the recognition of the strike illegal“, Article
who are actively involved in monitoring of 24. “Cases in which the strike is prohibited“,
the state of industrial relations of collectives Article 25. “Addressing labor dispute
of enterprises, institutions and organizations (conflict) in the case of the prohibition of the
of the region. Branch office in Poltava has strike“, Article 26. “Ensuring the
five specialists. sustainability of the enterprise during the
Branch office through the media system strike“, Article 27. “Safeguards for workers
conducts outreach to educate the public on during the strike“, Article 28. “The
legal issues, as well as highlighting consequences of employee participation in
experience thus seeking to increase the level the strike“.[1.].
of legal culture of the participants social - The Law .[1.] provides mandatory
labor relations and individual citizens. For conditions under which a strike is possible.
this purpose Branch office prepared Firstly, it can be started when it was preceded
newsletters, publications of regional, city and by conciliation. Second, the decision to
district newspapers and service bulletin, the declare a strike or disagreement with a strike
sites of service, municipal and regional news is taken at a assembly or conference
agency "News of Poltava" in own WEB- workforce. It is also defined body leading the
page.[3.,4]. Twice a year sessions "hot" strike. There are other required procedures,
telephone line are conducted. Periodically including written notice seven days prior to
interviews on radio and television are given. the strike of the owner, or his representative,
as well as prevention providers and
Strike is a form of social protest consumers of firms.
The strike as a social phenomenon is a
Article 44 of the Constitution of Ukraine form of manifestation of protest, which
stipulates that those who work have the right characterized certain criteria that distinguish
to strike in order to protect their economic it from other protest social issues.
and social interests. The protest is usually massive, public
The procedure for exercising the right to event, or certain categories of citizens, which
strike is established by laws of Ukraine, is aimed at attracting attention - subjects of
taking into account the need to ensure the general public, employers to unresolved
national security, health, rights and freedoms problems in different areas of society and is
of others. Barring a strike is possible only on accompanied by the slogan, in some cases,
the basis of the law. the use of visual tools (posters, symbols),
Even a third of the textual part of the Law audio and video equipment.
.[1.] is devoted to the strike. Protests take place in various forms. They
Strike is a temporary suspension of work can be in the form of rallies, demonstrations,
by collective voluntary workers strikes, street procession, march, march-
(absenteeism, failure to perform their job walking, assembly, picketing, fasting and so
duties) companies for the purpose of settling on.
a collective labor dispute (conflict). The Among the variety of forms of protest
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strike occupies a special place that has its other protests, but along with the differences
legal nature, the features. strike has similar traits to them. So, strike,
The difference from the other strike like all protests, appears amid unresolved
protest (rallies, demonstrations, marches, disputes and is usually massive, public,
pickets, meetings, fasting, etc.) is as follows. attracting the attention of the public and the
First, a strike can only be applied by media.
workers, individuals, who are employed by a After analyzing the characteristics of the
legal entity or individual entrepreneur under strike, which allow to separate it from other
the labor agreement. Other protests can be protest social issues, it can be simply
applied not only employees, but also by other concluded that any strike is a protest, not any
categories of citizens (pensioners, students, protest is strike.
the unemployed, etc.). The Law .[1.] defines the list of cases in
Second, the strike is regulated by the Law which to hold strike banned. There is a list of
of Ukraine [1]." Holding rallies, professions whose members are not allowed
demonstrations, meetings, street processions to strike. In particular in Ukraine (Article 24)
is regulated by the Decree of the Presidium public authorities (except clerical and support
of the Supreme Soviet of the USSR "On the staff) (prosecutors, courts, and the Armed
procedure for organizing and holding Forces of Ukraine, government, safety and
meetings, rallies, street marches and security) have not the right to strike.
demonstrations in the USSR" dated 28 July In case of an emergency Parliament of
1988, p. Number 9306-XI in the part that Ukraine and the President of Ukraine may
does not contradict the laws of Ukraine. prohibit strikes for a period not exceeding
Procedure for the rest of protests such as one month. Further ban must be approved by
hunger strikes, picketing is not regulated by the joint act of the Parliament of Ukraine and
law in Ukraine. It is true that the legislature the President of Ukraine. In the case of war
does not recognize some forms of protests, situation martial law prohibiting strikes
although they have a place in public life in comes until canceled.
Ukraine. Among them distinguish hunger, Conflict situations that may arise in
including collective, self-immolation and so enterprises, institutions and organizations
on. Usually these activities are radical and must be addressed in the legal framework in
are accompanied by a person voluntarily, accordance with Article 25 of the Law, when
knowingly harms to health for the sake of the service’s recommendations to resolve
meeting their requirements. conflict is not included by service filing the
Thirdly, the strike made exclusively application for solving the conflict respective
during working hours, at a time when regional court.
workers according to the laws, conditions of Company received the decision to declare
employment and collective agreements, a strike by organ of trade union or other
works rules are required to perform their organization of employees that is authorized
work duties. Other protests are usually held in accordance with Article 3 of the Law .[1.]
after hours (e.g. lunch breaks or on to represent the interests of employees, the
weekends, public holidays or non-business), general meeting by a vote of employees and
but there are cases where workers protest is considered adopted if it receives the
actions - rallies, pickets, meetings are held majority of employees. The decision to
simultaneously with the strike, and it is quite declare a strike is in a protocol.
permitted by law - part of the ninth article 19 Employees of the enterprise
of the Law of Ukraine [1] (in the absence of independently decide whether to declare a
constraints in the implementation of the law strike announcement in a company.
by the court according to the law). No one shall be compelled to participate
At last time, the strikes are ways to or not to participate in the strike.
pressure the employer in order satisfy the Authority, headed strike shall notify in
demands of workers. Spectral effects of other writing the owner or authorized body not
protests can be directed not only to the later than seven days before the strike, and
employer (employers), but also public the continuous current production for fifteen
authorities and local governments. days.
Of course, the strike was different from The owner or authorized body
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[5]http://www.adm-pl.gov.ua/page/viddilennya-
nacionalnoyi-sluzhbi-poserednictva-i-
primirennya-v-poltavskiy-oblasti-nspp-0/
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Buşu Mihail
The Bucharest Academy of Economic Studies, Faculty of Management
mihail.busu@man.ase.ro
Cioacă Sorin
The Bucharest Academy of Economic Studies, Faculty of Finance and Banks
cioaca_sorin@yahoo.com
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of Ωn-1 could be computed using the The equations (1.7), (1.8), (1.12) and
prediction equations (1.13) are constituting the Kalman filter.
(1.7) an|n-1 = Anan-1|n-1 + εn , for n = Given X0 and P0, the Kalman filter provides
1,2,… the optimal linear estimator of the state as
and new observations become available.
Pn|n-1 = E[(Xn - an|n-1)(Xn - an|n-1)’]
= E[(AnXn-1 + εn - Anan-1|n- 3. The gaussian case
’
1)(AnXn-1 + εn - Anan-1|n-1) ]
= E[(An(Xn-1 - an-1|n-1) + Now, let’s consider the linear system
εn)(An(Xn-1 - an-1|n-1) + εn)’] again
= AnE[(Xn-1 - an-1|n-1)(Xn-1 - an- (1.14) Xn = AnXn-1 + εn
’ ’ ’
1|n-1) ]A n + E[εnε n], Yn = CnXn + ηn , n 1
i.e.
where Xn Rd, εn Rp, ηn , Yn Rq are
(1.8) Pn|n-1 = AnPn-1|n-1A’n + Qn , for
n = 1,2,…, random variables and An and Cn are
The mean of crossed terms of the product deterministic matrices of d x d and q x d
are zero, by (1.4) and (1.5). matrices, respectively.
Since Xn-1 is a linear combination of εs We will now assume that the vectors (εn,
and ηs , s ≤ n - 1, and X0 , this size is also ηn), n≥1, are independent and have the same
uncorrelated with ηn. multidimensionall Gaussian repartition with
The equations (1.1) and (1.7) are mean 0 and covariance matrix equal to the
providing a prediction for Yn ,i.e., unit matrix and X0 has a Gaussian repartition
(1.9) Yn-1 = Cnan|n-1 with mean x0 and covariance matrix P0.
The prediction error is Finally, we assume that the An matrices, n≥1,
(1.10) Vn-1= Yn – Yn|n-1 = are non-singular.
Cn(Xn-an|n-1) + ηn For any n≥1, let Fn σ-algebra generated by
with EMP Y1,…,Yn and
Fn|n-1 = E[Vn|n-1V’n|n-1] (1.15) = E[Xn|Fn]
= E[(Cn(Xn - an|n-1) + ηn)(Cn(Xn - (1.16) Pn = E((Xn - )(Xn-
an|n-1) + ηn)’] ’
) |Fn)
= CnE[(Xn - an|n-1)(Xn - an|n- ‚
’ ’
1) ]C n + E[ηnη n] ,
’ where ’ ’ means the transpose. When Fn
from which we get: is known, is the best (in the sense of
(1.11) Fn|n-1 = CnPn|n-1C’n + mean square) estimator of Xn (based on
Hn observed data until moment n) and Pn is the
The mean of cross terms of the product conditional covariance matrix of the errors.
are zero by (1.4) and (1.5). Let’s denote P (respectively P0) the set of
Updating equations tell us how to update symmetric matrices non negatively defined
the estimator of the Xn matrix and (respectively positively defined) of d x d
corresponding EMP matrix, as soon as a new dimension. For any P P and n≥1 we define
observation upon Yn become available. They
Фn(P)=(AnPA’n + I)(I + Rn + RnAnPA’n)-1
are
where Rn = C’nCn and I is the unit matrix
(1.12) an|n = an|n-1+Pn|n-1C’nF-
1 of order d. Then Фn(P) P and Фn takes P0
n|n-1(Yn – Cnan|n-1)
= an|n-1 + KnVn|n-1 into itself. The recursive equations of
(1.13) Pn|n = E[(Xn - an|n)(Xn Kalman could be written as
- an|n)’]= (1.18) Pn = Фn(Pn-1)
= Pn|n-1 - Pn|n-1C’nF-1n|n-1CnPn|n-1 (1.19) = (An -
= Pn|n-1 – KnCnPn|n-1 , n=1,2,…, PnAnRn) + PnC’nYn
where Kn = Pn|n-1C’n(CnPn|n-1C’n + Hn)-1 is
called Kalman gain.
The fundamental result shown in the
The equation (1.12) shows us that, the
following is that the applications Фn , n≥1,
higher the predicted estimator is the more
are contractions in P0, if we endow P0 with
adjusted the estimated state will be.
the Riemann metric δ which is invariant to
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(respectively P0);
(ii) if M H2 , then (AT Then,
+ B)(CT + D) -1
P0 for any |log k (T + P, S + P)| = log k (T + P, S +
T P. P) = log min {max { :x V} :
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A p)(T).
M=
We already noted that γA and σ are
isometric in (P0, ). From Proposition 1.6 From the proposition 3 results that there
results that p and Q are contractions. exists an integer p > 0 such that Mp H0.
This fact, together with (1.29) proves (i). Thus, Theorem 1.7 gives us the fact that
If M H1, then Q is invertible, from which there exists a power of ФM which is an
uniform contraction. From the fixed point
results that Q is a strict contraction( by
theorem, there exists a matrix P P0 to
Proposition 6). Similarly, if M H2, then P is
which all the solutions Pn of the equation
invertible and p is a strict contraction. In (1.18)converges when P0 P0.
both cases, (ii) results from (1.29) as well.
Now, let’s prove (iii). Let M H0. Then P 7. References
and Q also are invertible. More over, p(T) ≥
[1] Balakrishnan A.V., ”Kalman Filtering
P for any T P0 , in the sense that p(T) -P
Theory”. Optimization Software Inc., New
P, from where York, 1984.
(γA [2] Bougerol PH. ”Kalman filtering with random
p)(T) ≥ APA’ and so
coefficients and contractions”. SIAM J.
( A p)(T) ≤ (APA’)-1 . Control. Optim. 31, 1993, pp. 942-959.
Fie a = and ε = inf [3] Shayman, M.A., “Phase portrait of the matrix
Ricatti equation”. SIAM J Control. Optim.
{<Qx,x> : = 1}. 24, pp.1-65.
From Proposition 1.6 rezults that for any [4] Ştefănescu M.V, Şerban F., Buşu M., Ferrara
T1, T2 P0 we have M., “Portfolio Optimization using
Classification and Functional Data Analysis
( Q[( A P)(T1)], Q[( A P)( Techniques”, Economic Computation and
T2)]) ≤ Economic Cybernetics Studies and Research,
≤ (( A p)(T1) , Academy of Economic Studies in Bucharest,
Bucharest, 2010 44 (3), pp. 93-108
( A p)(T2)) ≤ (T1, T2).
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The Risk-
an Element that Influences the Success of an Entrepreneur
Călin-Costin Georgiana-Delia
Valahia University of Targoviste
delia.costin@yahoo.co.uk
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their ideal and in their own forces, they supported by some specialists [6] who affirm
mobilize all their skills (traits such as: that ”for many people, the dream of become
creativity, courage, high intelectual capacity boss and of earn enough money is sufficient
and, not least, high degree of seriousity) and to stimulate them in becoming entrepreneurs.
they work hard to succed. But the lack of capital, the characteristic risk
The entrepreneurs may also present a of any business can inhibit many people.”
negative trait, so in order to accomplish their Irrespective of the qualities that they
strong desire for success and profit, they may possess, of the motivations and of the
neglect what is truly important in life: the assumed risks, it can be said that ”the
attention for the family members, for friends entrepreneurs contribute, through their
and even for the own person. actions, to the modification of rate, form and
Regarding the essentials characteristics of location of the economic development. So,
the creators of businesses, Marius Ghenea [1] the abundance and the quality of the
believes that ”an essential quality of an available entrepreneurs are important causes
entrepreneur is the right attitude”, and certain of the growth and of the development.” [7]
specialists [2] consider that ”another defining
trait for the entrepreneur is the finalization of 2.2. The risk- an important
the efforts and his involvement in starting a determinant of the modern economies
business.” It can be said that another
characteristic of the creators of entreprises is The risk manifests itself in a variety of
represented by the fact that ”an entrepreneur types, in all fields of activity, but especially
confronts with new changes, with in the field of entrepreneurship where is
innovations, so the assumption of the risk given a real interior and exterior fight for
becomes a necessity.” [3] achieving success, where both the
The strong degree of motivation that satisfactions or the success and the failure are
underlies any profile of a successful more strongly visible.
entrepreneur makes this character to take Regarding the consequences that the risk
some risks, and among the reasons that or the materialization of an uncertain event
determine the creator of business to risk there can produce, it can be mentioned that those
are: the desire of affirmation, the desire for effects can concretize either in satisfactions,
gain, the desire for high income, the in favorable results or, on the contrary, in
desideratum to demonstrate his capacity and results below expectations.
that he can achieve success, the desire to The moral and material implications of
bring certain benefits not only for himself or the risks that the entrepreneurs endure in
for his family, but also for society, the desire order to obtain various personally and
to create his own job, the desire to create jobs professionaly achievements are issues that
for others, the desire for achieve prestige, and can produce effects either for a small or
others. Regarding the motive for choosing larger period of time and some of them can
the entrepreneurial career, some authors [4] generate results for all the lifetime of the
claim that ”the motivation for actions of the creator of business.
entrepreneurs lies in their dissatisfactions.” The identification of the entrepreneur’s
Also, about the motivations of the risks and of its effects and possibilities of
entrepreneurs, Delia Popescu [5] mentions reduction and even of elimination of their
that ”it can distinguish several determinants occurrence are important objectives for
of the entrepreneurial behaviour: the scientists who realized in their studies
sociocultural environment, the family different analyses of risk and of its
background, the experience or the implications for the business creators and for
professional environment and the system of the progress of the society.
education.” The large number of risks that the
The multitude of risks that an different actual activities involve, was also
entrepreneur may face make that the choice noted by authors as D. Popescu [8] who
of the entrepreneurial profession to be a claims the fact that ”the manifestation, in the
possible option only for the persons with a current period, of the trends of risks’ increase
high degree of motivation. The idea that the led to the shaping of the so-called ”risk
risk can impede the start of a business is also management” that aims to reduce the degree
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of risk afferent of the various activities. It is should configure a clear system of risk
based on the thorough evaluation of the management, but who also enable, at the
phenomena and processes, and on the same time, the obtain of incomes. For
strategic management of all resources of the achieve these two objectives, the risk must be
enterprise.” measurable and estimated.”
From the moment that decides to start a Although ”in general, the entrepreneur is
business, the creator of an entreprise can be willing to assume certain medium risks, and
confronted with several forms of risks that the management of the risk in the small/
can have a significant influence not only on medium entreprises mostly has an intuitive
aspects such as: his financial resources, his character” [12], in order to prevent, to reduce
welfare, his social image, but also on his and even to eliminate the eventual occurence
health and on his relation with family and of the unfavorable and uncertain events it is
friends. Regarding the types of risks of the important for an entrepreneur to know and to
entrepreneurs, authors such as D. Popescu [9] apply in his entreprise the management of
mentions that ”any entrepreneur, regardless risk. Regarding the risk management,
of the degree of motivation, has to face the specialists such as D. Popescu [13] mentions
following risks: that it ”is a cyclical process, with several
a) the risk of the business- a significant distinct phases, which takes into account both
proportion of all enterprises fail within the the permanent evaluation of the risk, but also
first five years, primarily due to the poor a conduct of control of it. The phases of the
managerial training; cycle are: the identification of the risk, the
b) the financial risk- the entrepreneur analysis of the risk and the reaction at risk”,
invests all or almost all of his financial and in the opinion of author Tanţău [14] ”the
resources in business; management of risk is at the same time a set
c) the career’s risk- leaving a secure job, of tools and techniques, but also a necessary
for an uncertain future; process to implement the strategies of
d) the family and social risk- a business development of an enterprise. The
supposes little free time for family and management of risk also includes all those
friends; processes of management and of conception
e) the psychological risk- the risk of of the organizational structures necessary for
personal failure if the business fails.” the efficient implementation of the tehniques
Also, about risk, authors as Tanţău [10] and of the methods of measurement and of
claims that ”in businesses, the risk presents risk control.”
consequences that influence the course of an
action. These consequences depend on the 3. Conclusions
probability of apparition of a certain event
that may cause certain losses.” As a conclusion it can be said that the
An entrepreneur may achieve success entrepreneurs are persons who have
when assumes some risks taking account of significant intelectual qualities that support
his personal moral and material capacities. them in the process of transformation of their
Usually, the risks are seen as determinants dreams and objectives in real facts.
of unwanted events, but they also can Also, it can be concluded the fact that
generate favorable effects and it can be said every entrepreneur has a certain motivation
that they are necessary in entrepreneurship for the choice of his career and that he has his
because the fact that the calculated risks can own manner to understand and to react at the
produce a positive impact on the results of occurence of certain unfavorable events, but
the business and on the expectations of the he can obtain a lot of achievements when he
creator of business. The idea that the risks assumes calculated risks considering his
can be beneficial it also appears in the work moral and material capacities.
of Tanţău [11] who claims that ”in certain Last, but not least it can be said that every
business, a great part of the revenues arises entrepreneur has his unique way to perceive
precisely due to the assumption of certain the risk and react to it in function of his
risks. Therefore, the most risks should not be personality, of his degree of training and of
seen by their negative impact. So, the risks his experience in life and in the field of
should be limitated, and the entrepreneurs entrepreneurship.
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4. References
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Ciceo Andreea
Faculty of Marketing, Academy of Economic Studies Bucharest
theociceo@yahoo.com
Ionescu Andreea
Faculty of Marketing, Academy of Economic Studies Bucharest
andreea.s.ionescu@gmail.com
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Figure 1. Total perceived service quality Gummesson also included the gap between
experience and expectations and the
influence of the provider’s brand, image [14].
Moreover, in 1985, Berry, Parasuraman
and Zeithaml also tried to explain what
service quality was. In order to do this, they
conducted several focus groups with
customers and in-depth interviews with
representatives from the providers’ side. The
areas of services taken into consideration
were: retail banking, credit cards, securities
Source: Grönroos, C., Service Management
brokerage and product repair and
and Marketing. Customer Management in
maintenance. As a result of that research,
Service Competition, 3rd edition, John Wiley
they succeeded in establishing 10
& Sons Ltd., West Sussex, 2007.
determinants of service quality, namely:
In Grönroos’ view, perceived service
reliability, responsiveness, competence,
quality is the outcome of the customers’
access, courtesy, communication, credibility,
evaluation between what they expect to get
security, understanding and tangibles [15].
and what they perceive they have been
Furthermore, they even settled a service
delivered. In other words, the gap between
quality model (Figure 2) based on five
expected service and the experienced one,
different kinds of gaps that appear at
thus the gap between the expected quality
different levels [16]:
and the experienced quality [11].
What is of vital importance in this The gap between consumers’ expectations
equation is how customers’ expectations are and management perceptions over these
borned and by what are they influenced. expectations,
Creating expectations is, to some extent, the The gap between the management
result of the provider’s marketing activities perceptions of consumer expectations and
and campaigns. If the provider of a service the firms’ service quality specifications,
overpromises, then their customers will set The gap between service quality
very high expectations for that service and specifications and the actual service
thus, the probability that they will become delivery,
dissatisfied about the way the service is The gap between the actual service
delivered may increase dramatically. delivery and the external communication
Therefore, it is better to promise less and about the service,
deliver more, managing at the same time to The gap between the expected and the
surprise the customer in a pleasant manner perceived service.
[12]. Figure2. Service quality model
Over the years, other models explaining
the essence of the service quality concept
also appeared and were developed.
Contemporary with Grönroos, Lehtinen and
Lehtinen proposed a similar model for
understanding the meaning of service quality,
a model that consists of three dimensions:
physical quality (physical characteristics of
the service), interactive quality (the
interaction between the provider’s personnel
and the customers) and corporate image
(provider’s image) [13].
Further, Gummesson proposed a customer
perceived quality model, having four
dimensions: design quality, production and
delivery quality, relationship quality and
technical quality. Apart from these, Source: Berry, L., Zeithaml, V.A.,
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Tablel 1. The main strengths and weaknesses in financial literacy to S.C. HERVIS S.A.
Table 2. The evolution of the volume of production and the evolution of stocks
For the disposal of domestic production valorization of 10000 pairs with stock sales
has been expanding the company’s slow in the society. In table 3 are presented
distribution network in the country-reusindu the main strengths and weaknesses of the
sale of manufactured production and domain.
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Table 3. The main strengths and weaknesses in commercial domain at S.C. HERVIS S.A.
3. Export activity (over 95%). Due to the demand reduction The growth of turnover, profit.
internally.
4. High competitiveness in the Efficient use of production The company's products compete
market. technologies, specialized successfully in foreign markets.
personnel.
5. Low levels of stocks of Expanding distribution network Reduce storage costs, increase
finished products. internally. turnover.
Weaknesses Causes Effects
1. The lack of allocation of Low interest on the part of The company's products are little
funds for the promotion of senior management to the known, in particular on the internal
products both internally and Organization's marketing market.
externally. department.
2. Participating in fairs and Non-existent marketing Trade fairs and exhibitions provide a
exhibitions. department and lack of staff complex and complete advertising;
specilizat to deal with represents a specialization of the
organizing these promotional company give up.
events.
3. The lack of an effective Non-existent in the society of a Reduced capacity of instituting the
marketing activities. specialized marketing changes in the organisation and
department. action response to trends in demand
and the action of the competition.
4. Reduced attention to the Pretty little application The loss of business opportunities.
internal market.
Source: S.C. HERVIS S.A
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force of Romania and are based on more than within the Organization for the achievement
25% of the approximately 130. 000 salaries of the objectives of assuring and developing
managed by way of outsourcing. Human human potential and the need for evaluation
resources domain comprises all activities of internal factors are found in table 4.
3.4 Managerial
The managerial system analysis resulted
in the following strengths and weaknesses,
appear in table 5:
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References
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This was achieved by conducting extensive final category of participants is the one
research that has taken place at the level of whose interests and expectations coincide to
each Office, the Agency, through the a very small extent with those of the
distribution of the postal workers has a Organization (25%). The percentage of
questionnaire which looked at the degree of dissatisfied, makes us believe that there are
training of the personnel, the motivation to errors in the selection and recruitment
work and working conditions. process, or as a result of inaccurate
Of data that has been collected as a result descriptions of the future job.
of this extensive research we selected a few
that will specify how are precepute of 2. What factors do you think would
employees motivation, personal and improve your level of engagement within the
professional development in the company, CN Posta Romana? (in order of importance
according to several parameters that to insert page numbers from 1 to 5)
influences performance, as follows:
Table 1. Factors of motivation of personnel
1. To what extent do you think that the Factor Place
Romanian Post fails to motivate you to Salary I
achieve your objectives, purposes and Rules of organisation II
objectives of the Organization? Recognition of professional III
achievements
The answer to this question is summarised The level of communication IV
in Figure 1. Professional achievement V
Source: CN Romanian Post
Figure 1 Percentage of employees satisfied
with the attainment of the objectives Of the listed factors was removed very clear
salary. As expected the physiological needs
of everyday is related in a very large measure
No answer 25% of getting a satisfactory salary, salary, which
at the time was not to disappoint. Motivation
No 35% level is closely correlated with the rules of
organization existing in the company, which
Yes 40% denotes the tendency of employees to have
greater freedom of action in carrying out
0% 10% 20% 30% 40% their tasks. An important factor in weight
motivational a recognition on the part of
owns the company management professional
Source: CN Romanian Post achievements of our employees. According to
the communication on the horizontal and
A small number of participants (10%) is vertical is poor at the company level,
motivated by the Romanian Post to achieve requiring improvements to increase
personal goals related to profession and motivation of employees, a special
organization. This percentage is given to that importance with perform professionally to
person in the organization who can dictate each employee.
and guide the activities according to its own
interests. The highest proportion is given by 3. The absence of factors which lead to
those whose satisfaction is at a medium level the loss of your level of engagement within
(66%). This is not a thing at all because the CN Posta Romana? (in order of
îmbucurator has the effect of a general importance to insert page numbers from 1 to
dissatisfaction which can only be negative. In 3).
this section you can find people new staff
employed with an average age of low
expectations from the Organization are much
higher. Is a segment that should be taken into
account in carrying out the activity as a
prerequisite in obtaining superior results. The
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Table 2. Factors that cause the The proportion of those satisfied with the
lowering of employment of employees salary (10%) is given by the leading
Factor Place professionals in the organization. Unhappy
The level of communication I in this case can be considered quite high
Salary II (30%).
Rules of organisation III
Source: CN Romanian Post
6. In the current conditions and in
The factors chosen are the same as the relation to the work performed, the salary
previous question but the order is different. will help to satisfy your daily needs?
Notice that a decrease in the level of
communication within the Organization
Figure 3 The percentage of satisfaction of
would be more organization than a reduction
needs
in salary.
An impairment of the rules of the
in touch 65%
Organization would attract to itself a
frustration on the part of employees, which
would have the effect of an impairment of the satisfactory
30%
level
results at the general level.
no 5%
The result of this questions is not at all The answers to this question should
encouraging for the organization. The coincide to a large extent with those of the
percentage of those who believe that the previous question. But note that the 10%
organization is not involved in their employees satisfied with their salary does not
reasoning (50%) requiring action on the part find it anymore. This is explained by the
of the management organs. The involvement continuous growth of needs, at a pace that
of the Organization in motivating staff shows surpasses that of wage growth. The degree of
that its interest is oriented to other objectives discontent is explained by the large number
and to a much smaller extent, the staff [4]. of young people involved in the
Organization, the youth who was at the time
5. Do you consider that the salary reflects
of solving specific problems: the Foundation
the work done?
of age a family, buying a House, etc.
Satisfactory No 60%
level
No
Yes 40%
0% 20% 40% 60%
0% 10% 20% 30% 40% 50% 60% 70%
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Increases are awarded according to Note that 30% of staff did not know if the
seniority within the company and depending extra allowances are granted justifiably.
on the results obtained by the people working This result is due to a defective manner of
in the commercial Department. We believe presentation of the rules then provide extra
that the granting of bonuses is not justified in allowances to its employees. In the
the case of many people within the staff of commercial Department, a staff member
TESA. considers that increases resulting from sales
of products, are low in relation to the effort.
7.1 In the last 12 months that are salary This category formed by 15 percent. Most
increases that have benefited? employees approve the distribution of
increases.
Figure 5 The level of increases awarded 8.1 Mention three reasons which justify
last year the granting of increases?
40% 35%
30%
20% 15%
10%
0%
Yes No I do not know
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Ciorasteanu Gianina
Mihailescu Mariana
"Constantin Brancoveanu" University from Pitesti,
Faculty of Management Marketing in Economic Affairs Braila
ciorasteanugianina@yahoo.com
mihailescumariana@yahoo.com
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Figure no. 1 Area planted according to the Figure no. 3 Operators dynamic
organic production method operators' dynamic
160000 30000
140000
25000
120000
80000
meadows
15000
fruit trees, grape vine
60000
10000
40000
20000
5000
0
2006 2007 2008 2009 2010 2011
0
2006 2007 2008 2009 2010 2011 2012 estimated
Source: www.madr.ro
Although according to the rules of organic Source: www.madr.ro
farming acreage has grown tremendously in In 2012, of the total of operators in
the last two years the share of the area under organic agriculture, 103 are in the processing
organic farming holds the total agricultural segment, 211 in the marketing segment and
area is only 1.6%. This places our country 26390 are agricultural producers. As regards
share among European countries with the the processed products sector in 2012 there
lowest surface area organically grown. was a significant increase in the number of
Romania surpasses just Bulgaria 0.5% and processors (from 48 units in 2007 to 103 in
Malta 0.2%. The share of total utilised 2012) and the assortment of organic products
agricultural area (UAA) occupied by organic was much more diversified including:
farming (existing organically-farmed areas products processed from cow and sheep milk
and areas in process of conversion) in EU is (feta, butter, cream, etc.), products processed
about 5%. from soy (milk, tofu, croquettes), sunflower
oil, various assortments of bakery products
Table no. 2 Area under organic farming
(bread, pasta, cookies), products processed
Year EU (27 Romania
from rice, muesli, herbal teas, forest fruit
countries)% %
juices, products processed from hemp seed,
2005 3.6 0.7
bee by-products (wax, pollen), products
2006 3.7 0.8 processed from pork (sausages, ham) and
2007 4.0 1.0 organic wine. [3]
2008 4.4 1.0 In 2012 the registered processors in
2009 4.7 1.2 organic agriculture represents only 0.39% of
2010 5.0 1.3 total operators in organic agriculture. Much
2011 - 1.6 of products from organic production are
Source: http://epp.eurostat.ec.europa.eu exported. According to Ministry of
Since 2010 the number of certified Agriculture and Rural Development (MARD)
operators in farming increased significantly 70-80% of organic products in Romania are
compared to previous years. This was due, in exported annually. [3] Part of this came back
particular, to existing support measures for to the country in the form of processed
the conversion period provided under art. 68 products imported from countries that have
of the Council Regulation (EC) no. 73/2009 developed processing industry. So the weak
establishing common rules for direct support point of organic agriculture is processed. A
schemes for farmers under the common timely business during the current economic
agricultural policy and establishing certain situation is the application of modern
support schemes for farmers. Subventions technologies in processing natural food
granted in 2011 were about 3 million in products. [4]
2011, and in 2012 of 4.5 million euro. [2] The surface of a holding in organic
agriculture in vegetable production ranges
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from about 100 square meters, for vegetable customer does not need to be informed about
cultivation in solariums, up to ca. 2000 the time of sowing, but will be interested in
hectares for field crops. The average surface harvesting. Product prices, promotions,
of a holding in 2011 was about 20-22 places where you can buy are useful
hectares. [3] This shows that most of those information for customers.
working in organic farming are small Using Facebook - Facebook is a social
producers, small farmers. Obviously their networking site that let users to: store
financial resources are limited, so money are pictures, videos and information and to share
use to promote participation in fairs. with others. It also allows posting comments,
questions and answers. Facebook is free to
3. Tools of online marketing use. Demographic information published in
April 2013 offered the following snapshot of
Because we live in the internet age many Facebook users in Romania: total of users
people, when they want to purchase a product 5944080, penetration of online population
use the online environment to gain 69.28%. The largest age group is currently
information on price, quality, origin, etc. 25-34 years with total of 1 792 180 users,
According to a study conducted in 2010 the followed by the users in the age of 18-24.
Internet has a key role to document organic Male/Female User Ratio on Facebook in
products, 75% of respondents said they will Romania is 1/1: 50% male users and 50%
inquire online about organic products. [5] female users. [6] The large number of users
Due to these conditions, even the small makes Facebook a formidable marketing
farmer can not neglect online marketing. Any tool. Any farmer can register as a Facebook
farmer who wants to be successful in selling user. It is not difficult. Facebook provides its
organic products is bound to create an on – own step-by-step guide to creating a business
line presence. An effective way would be to page. A Facebook page can be created for a
create a website. But to create a professional business, place, company, organization,
website requires financial resources, brand or product, in order to connect with
resources that small farmers do not have, and customers or potential clients. [7] Facebook
when they have it, not always willing to can be accessed from any computer (a
direct them towards the virtual world. In the desktop or a laptop) or from an mobile
tech of today there are many ways that small device. On Facebook page a farmer can
farmers can promote their products and publish business name, address and contact
activity, to potential buyers, for free or at details. It can also make a brief description of
low-cost. Among these options are: sending his activity and the organic products he
emails, creating a Facebook page, blogs, offers. Because pictures and videos are a
uploading multimedia files, registration of major element of Facebook’s attractiveness
business at the location-base. the farmer can post photos of the products
Sending e-mails. E-mail is the main and production methods. In this way
mode of communication in professional potential clients can learn how products are
environments. When a person buys a product grown without the need to come on the fields
the farmer may require the email address of or orchards. Facebook page makes it a useful
the person, to be able to provide information tool for promoting if farmer regularly post
about his work. In this way, it is left to the new materials (prices, announcements, events
discretion of the client whether to accept or photos, videos). Since Facebook page allows
not to receipt of information from the farmer. posting comments and asking questions is
The farmer must create an email address very important to respond quickly to any
that incorporates his business name. If the questions and comments, positive or
business is bearing his name the farmer negative. It is possible that negative
would have to enter into a word to refer to comments and questions left unanswered to
organic products. Customer should not be turn into negative publicity. [8] For positive
intoxicated with emails or too much comments farmer should address thanks. For
information in each e-mail. A message sent negative comments and questions responses
once to two weeks will not overload the are necessary to be prompt. In this way the
receiver. Also, messages sent must contain farmer show that has nothing to hide, and so
useful information for the recipient. A builds a positive reputation. Facebook page is
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an efficient way to promote products or YouTube every month. [10] YouTube lets
business because it provides real-time farmer to show his organic products and
information. It can also be used as a research techniques in action. Uploading videos to
tool. The farmer can run a Facebook contest You Tube is completely free. Farmer can
or conduct a survey. create a You Tube channel personalized with
Creating a blog – a blog is site that farmers name, logo, background or other
includs a series of 'posts' about farmer's elements. On the channel farmer can keep
interests. A blog allow farmer to promote his track of channel views, video views,
business, get in touch with clients and subscribers, and more. [10] Using
potential customers, to get feedback information available farmer can improve
regarding his activity. Those who read the products, his videos and channel. A video
blog have the opportunity to make show to potential clients that the farmer is a
comments, positive or negative. Comments person who knows what he's talking about,
can be read by farmers but also by other he knows to cultivate organic products, he
visitors to the blog. How comments are knows his business. Customers are satisfied
handled contributes to potentate or reduction that the person selling is the same person that
of confidence in farmers products. Favorable cultivate and grow products. To attract
comments builds trust to potential customers potential customers (views), farmer must use
in the farmer's products, and negative some keyword tags when uploading video.
comments gives the chance to the farmer to Words like: organic, eco, bio, healthy,
improve and develop products offered or natural, cultivated in Romania, made in
business. So, readers and customer Romania attract people interested in organic
comments, provide fast feedback of business food, people that can turn into farmers
and products. With the blog information can customers. Every video uploaded should
be updated quickly. A blog allows have a goal related to farmers business.
exchanging links with other blogs, hence, a Using location-based marketing – by
greater dissemination of information. registration of business in Google Places or
Farmers are good at sowing and raising Yahoo!Local. 97% of consumers search for
product, are not trained in IT. However, blog local businesses online. Google Places for
is easy to use. Farmer writes his ideas and Business gives access to free tools that help
post it to blog. He needs to push a few business get online, be found on Google
buttons. Currently there are blog platforms Search and Maps and get closer to
which allow bloggers to quickly customize customers. [11] Adding listing to Google
the look of their blog without having to know Places for Business is free. With a Google. It
about website programming. Blog platforms is possible to add images and videos, can
use templates which can allow bloggers to display a running program, types of products.
get started quickly and concentrate on [12] Registration of business in Google
content, rather than manage technical aspects Places system will make the farmer to be
of website development. They are ideal for found more easily by potential customers. In
small businesses. Blogging platforms that addition, when used search engine Google
alow farmers to create blogs are: WordPress for a search, the farmer will be better
Blogger or Tumblr. [9] For a blog to be positioned in the list of offered.
followed the information must be refreshed
and updated frequently, at least weekly. 4. Conclusions
Business blogs are more effective when used
in cooperation with other social media: Increase organic acreage and number of
Twitter, Facebook, You Tube. Placing on the operators in organic farming is only the first
blog buttons like: retweet and Facebook step in transforming Romania into an organic
Share, including a Facebook like box to blog market player. Investments in processing and
contribute to disseminate information promotion are necessary to move from the
provided and therefore increase the number stage of the source of raw materials for
of potential customers. industry to a pillar of bio industry.
Uploading videos to YouTube – is a Organic products market is in constant
simple way to attract potential clients. All growth. In contemporary economy customers
over the world 800 million people visit are becoming more knowledgeable and have
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5. References:
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Constandache Mihaela
„Dimitrie Cantemir” Christian University of Bucharest, Faculty of Tourism and
Commercial Management Constanta
mihaela_constandache@yahoo.com
Stanciu Anca-Cristina
„Ovidius”University of Constanta, Faculty of Economic Sciences
castan22us@yahoo.com
Radu Steluța
Agricultural Science and Veterinary Medicine University of Iași, Agriculture Faculty
stelaradu2010@yahoo.com
Abstract 1. Introduction
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improvement opportunities.
Results
Development Partnerships. Excellence Leadership
10% Strategy and Processes Customers in
planning 14% satisfaction business
means developing and maintaining 8% 20% 15%
partnerships that bring value.
Social Responsibility. Excellence means Resources Impact on
going beyond the minimum legal 9% society
6%
requirements to operate the company and
the effort to understand and respond to
stakeholder expectations of society [2]. Factors 50% Results 50%
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achieved only through a management able to the approach taken by the organization and it
inspire, support and encourage a specific degree of implementation.
organization culture of Total Quality
Management, properly directing employees Table 2. Subcriteria and performance
and ensuring, through appropriate strategy indicators regarding the S.C Cupidon S.A.
and planning, an appropriate management of staff management
resources and processes [4].
SUB-CRITERIA AND PERFORMANCE INDICATORS Number of TQM effect
answers + - 0
3. S.C. Cupidon S.A. concerns regardind STAFF MANAGEMENT INDICATORS
a. Planning and improving of human resources: 33 25 7 1
the continous improvement of their - Implementation of personnel policy adopted in relation to
the mission and objectives of the organization;
11 9 2 0
aimed to obtain the Romanian Quality Award - The efficiency of pay and benefits systems; 11 7 3 1
e. If the institution establishes and maintains dialogue 22 16 4 2
– Model of Business Excellence. with its staff; if the institution is concerned about its
staff:
Following the diagnosis made at the S.C. - Achievements and failures in personnel policy; 11 8 2 1
- Perspectives, personnel policy directions in order to 11 8 2 1
Cupid S.A. in 2011 and respectively 2012 protect employees and maintain institutional quality of
the organization.
has been highlighted effects of total quality Total 110 83 23 4
management in the analyzed period and a
number of issues that should be improved in Table 3. Subcriteria and performance
the future (tables 1-9). indicators regarding the strategy and
planning of S.C Cupidon S.A.
Table 1. Subcriteria and performance
indicators regarding the S.C Cupidon S.A. SUB-CRITERIA AND PERFORMANCE INDICATORS Number of
answers +
TQM effect
- 0
leadership STRATEGY AND PLANNING INDICATORS
a. Policy and strategy are based on adequate and 60 48 10 2
detailed information:
- Measure of adequacy and enrollment of the mission and 12 9 2 1
SUB-CRITERIA AND PERFORMANCE INDICATORS Number of TQM effect
goals of organization in general demands of the field;
answers + - 0 - The extent to which planning process takes into account 12 9 3 0
LEADERSHIP INDICATORS the state plan (if is any) and is compatible with it;
a. Managers obviously are involved in promoting within the 48 43 4 1 - How is correlated the plan with the annual and multi- 12 10 2 0
institution of the Total Quality Management (TQM) annual budgets?
principles, especially on the following areas: - Does the organization have a sufficient database to 12 11 1 0
- The quality of the organizational structure of the 12 12 0 0 perform properly the planning activity?
institution; concordance between the structures adopted - Does the organization have a planning mechanism for 12 9 2 1
and institution operation; using the resources and preparing the future changes or
- Qualifications, skills and experience of the management 12 12 0 0 developments of the institution?
members of the unit and of its departments; b. Policy and strategy are developed: 60 47 12 1
- Their ability to correctly interpret laws affecting the 12 10 2 0 - How clearly are expressed and if there is ambiguity in the 12 10 2 0
organization, to make decisions, to plan their acts and mission and objectives statement;
others; - How should the priorities be arranged depending on the 12 9 3 0
- The quality of communication between the various 12 9 2 1 mission and objectives?
governing bodies, staff and operational; - To what extent are registered pressures and how resist the 12 9 3 0
b. Managers support and get involved, providing resources 20 15 4 1 organization to such pressures of random or inappropriate
and assistance. development of its mission;
- How to fulfill managerial roles, behaviors roles and 9 7 2 0 - The correlation between the actions regarding products 12 9 2 1
management styles, their relevance to achieving mission and services with the mission and objectives of the
objectives and ensure unit performance; organization.
- Ways of working, competence and efficiency of 11 8 2 1 - The plan of activities of the institution derives organically 12 10 2 0
administrative and technical services; from its mission?
c. Managers personally involved in relationships with 12 11 1 0 c. Policy and strategy are communicated and 24 21 3 0
customers, suppliers and other organizations; implemented:
d. Managers recognize and appreciate the efforts and merits 30 26 4 0 - Mission and objectives are well understood within the 12 11 1 0
of staff organization? Are they properly found in the documents
- Professional ethics of governing body, the relationship 12 12 0 0 of the organization and its practical activity?
between first-line managers, mid-level (intermediate) and - Are registered concerns for self-assessment of the 12 10 2 0
higher level managers, between authority, autonomy and modality to achievement the missions and institutional
centralization in unit operation; objectives and to what extent this is done?
- Strengths and weaknesses in the organization, operation 9 5 4 0 d. Policy and strategy are periodically actualized and 48 39 9 0
and management of the institution; ameliorated:
- Projects and programs to improve the organization and 9 9 0 0 - There are components of the mission and system of goals 12 9 3 0
the management. that are not well accomplished?
Total 110 95 13 2 - The extent and manner of employment of planning 12 9 3 0
officers in implementing the plan;
- What strengths and weaknesses were identified? 12 11 1 0
- How does the organization propose to remedy the 12 10 2 0
Evaluation of each criterion regarding the weaknesses identified?
Total 192 155 34 3
determinant factors analyzed was performed
as recommended by EFQM, depending on
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The extent to which the approach taken The extent to which the results "covering"
was integrated by the working methods all relevant activity fields of the
adopted by the organization; institution;
The existence of analyses / periodical The extent to which there are full series of
systematic evaluations; results for each sub-criterion considered;
Implementing improvements based to the The extent to which it was understood and
results of this analysis / evaluation. presented the relative importance of each
The implementation degree is the extent sub-criterion.
to which has been implemented the adopted The evaluators assessed separately the
approach (compared to its full potential), and excellence degree and respectively, the
the evaluation was performed according to a extending degree of the obtained results, in
proper and effective implementation of the percents (Table 11) and then calculated the
approach: overall result.
Vertically, at all hierarchical levels of the
institution; Table 11. S.C. Cupidon S.A. results
Horizontal, in all areas and activity evaluation
sectors;
In all processes involved;
Results Degree of excelence Extending degree, [%]
Global According EFQM
In all services involved. Staff satisfaction (9%) - Many results show positive trends and / or 75.0
Customer’s satisfaction continuous good performance on a period 68.8
6.75
13.76
Evaluators assessed separately the (20%) of at least 3 years;
Impact on society (6%) - In many areas you can make favorable 47.4 2.84
approach and respectively it implementation Results in business comparisons with predetermined objectives; 82.9 12.44
degree, in percents (Table 10) and expressed (15%) - Many results represent the effect of the
approach.
the overall result, as the shares indicated by
the EFQM model.
According to the analysis can be
Table 10. S.C. Cupidon S.A. determinant appreciated that the degree of
factors evaluation implementation of the approach adopted by
the organization, in terms of determinant
Determinants Approach Implementation degree, [%] factors, is 81% of its potential (if considered
factors Global According EFQM
Leadership (10%) - The organization has strong evidences regarding 86.4 8.64 all relevant areas and activities). Regarding
Staff management
(9%)
systematic and solid approach, and respectively, 75.5
prevention systems.
6.80 the extending degree of obtained results, it
Strategy and - There are clear evidences of development and 80.7 6.45 covers many areas and relevant activities
planning (8%) improved efficiency as a result of regular
Resources (9%) evaluations. 79.2 7.13 undertaken by S.C. Cupid S.A. (68.5%). It is
Processes (14%) - There is a good integration of the adopted 83.4 11.68
approach in normal operation and planning activity. recommended to continue the organization
approach primary oriented on results, which
will take the form of ensuring continuous
Evaluation of each criterion referring to improvement of products / services quality to
the results was performed according to the meet customer requirements, but also on
excellence degree and respectively, to the improving the organization's impact on
extending degree of obtained results. society.
Evaluation of excellence degree of The main direction of action established
obtained results was based on: based on the diagnostic analysis, which will
The existence of positive trends and / or be implemented in summer 2013 are the
good performance (a certain time following:
interval); Maintaining the position on the market;
Reporting to the organization objectives. Increase length of stay;
Comparison with other competing tourism Improving the general environment by
enterprises, comparable in terms of expanding green spaces and walking
performance with S.C. Cupidon S.A.; paths, creating an optimal space for
sociability (open meetings);
The existence of evidences demonstrating
that the mentioned results were effective Improving the comfort degree of actual
obtained based on proper approach. receiving structures at a level
Evaluation of the extending degree of the corresponding to 4 and 5 stars categories;
results was performed according to:
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Reviewing the diets by reducing their Cupidon S.A. identified and established the
severity and also their diversification; main directions which will be implemented
Strong development of recreational and in summer of 2013.
entertainment activities; It is recommended to continue the
Development of prophylactic area; organization approach primary oriented on
Diversification of the tourism products results, which will take the form of ensuring
with products such as „form restoration continuous improvement of products /
and health”; services quality to meet customer
Protecting and enhancing the requirements, but also on improving the
environment; organization's impact on society.
Relocation of charges based on the quality
level; 5. References
Pursuing a higher quality of products and
[1] ***, European model to guarantee the
tourism infrastructure; quality of services in renewable energetic
Reviewing the personnel programs field, ST Consulting, available at
through technical training taking into http://www.immromania.ro/stiri_fisiere/mode
account all the new technologies and l-european-pentru-garantarea-calitatii-
equipment and management training serviciilor-din-domeniul-energiei-
using the modern systems in the tourist regenerabile-6440.pdf
activity; [2] ***, The European Foundation for Quality
Launching a promotion program to Management (EFQM) Excellence Model,
available at
improve the company image;
http://www.ajaregistrars.ro/certification/efqm
[3] Dahlgaard-Park, S.M., Reviewing The
4. Conclusions European Excellence Model from a
Management Control View, 2008, available
The EFQM model is based on the at
principle that customer’s and staff http://www.iei.liu.se/q/filarkiv/phdcourses/1.
satisfaction and also integration of the 119227/EEMseenfromMC.pdf
organization in the life community are [4] ***, The Romanian Model of Excellence in
obtained through leadership, policy and Business, The Romanian Award for Quality
strategy, personnel management, resources J.M. Juran, available at http://www.fundatia-
juran.ro/index.php?idcat=72&meniu=2
and processes. Ultimately, all this leads to
[5] Juran, J.M., Godfrey, A. B., Juran’s Quality
excellent operational results. Handbook, McGraw-Hill, New York, 1999.
The advantages of this approach are huge.
In particular, it is a rigorous and structured
approach to improve the institution state, an
objective evaluation based on a number of
criteria widely accepted in Europe, an
assessment based on facts and not on
individual perception, a way to reach a
coherent orientation and consensus on
actions to be taken by each employee, from
the same excellence vision.
The analysis conducted in S.C. Cupidon
S.A relived that the degree of implementation
of the approach adopted by the organization,
in terms of determinant factors, is 81% of its
potential, taking into consideration all
relevant areas and activities. Regarding the
extending degree of obtained results, it
covers many areas and relevant activities
undertaken by S.C. Cupid S.A. and also some
activities need to be improved. This is the
reason why the top management of S.C.
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Figure 1. Total banking assets CEE Given the international economic and
-bn EUR- financial context, years 2011 and 2012 can be
characterized by a moderation of activity in
€ 350,00
the banking system from Romania, it was
€ 300,00 309
,8 confirmed by total net bank assets
development as well as they share in GDP.
€ 250,00 (Figure3)
,3 9 Figure 3. The evolution of the share net
€ 200,00 180
bank assets/GDP
€ 150,00
,92
70% 68% 69%
114 67% 67%
60% 61%
€ 100,00
76
91, 60%
03 28
58, 54, 35 17 32
52, 42, 25,
€ 50,00
6
50%
19 8, 0 50%
11,
44%
€ 0,00
40%
d
ia
ia
ia
ia
a
ry
a
an
ch
ia
bi
a
ri
en
an
ac
ga
at
an
in
ze
ga
r
l
ov
ro
ov
om
Po
ov
Se
lb
un
C
ul
Sl
Sl
C
A
g
H
ze
er
H
30%
&
ia
n
os
B
Source:www.ecb.int 20%
10%
Increasing inclination was determined in
principal, for the secound consecutive year, 0%
2005 2006 2007 2008 2009 2010 2011 2012
by Poland, who stays a leader with a total
bank assets of 309,80 bilion EURO being a Source:www.bnro.ro
powerful engine of growth, if we consider the
market size of the area. In the same time, Regarding the bank loans in the Central
countries like Croatia, Slovenia and Bulgaria, and Eastern Europe it increased by
recorded insignificant increases on the value approximately 13% in nominal terms
of bank assets for the year 2012. compared with the values recorded in the
The activity of credit institutions from our previous year.
country continues to be moderate in 2012 as Their distribution according to the
shown by the evolution of total net assets destination is not equable valid for all
increased by only 2,8 bilion EURO. (Figure countries in this area, there are significant
2) differences.
Figure 2. The evolution of the aggregated bet So if countries like Slovenia, lending
bank assets activity focuses on the corporate sector, at the
-bn EUR- other end are countries such as Romania
where the attention is focused on the retail
90 84,5
82 and consumer loans register a higher level.
78,9 78,1 79,8
80 Credit institutions in our country had to
69,5
70 face pressures caused by fierce competition
60
recorded in the banking sector and because
50,9 the parent bank reduced the volume of
50 funding.[3]
40 34,8 Difficult situation recorded in the groups
30 levels and their decision to focus on banks
markets where is operating the banking
20
institution mother determined foreign owned
10 banks operating in our country to reduce the
0 exposure to the Romanian banking sector,
2005 2006 2007 2008 2009 2010 2011 2012
which can put pressure on local subsidiaries
in Romania. [4]
Source:www.bnro.ro Total bank loans continued on a
decending inclination in 2010, the volume of
granted funding was 61,2 bilion EURO with
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about 3.3% smaller then the previous year. deposit exceeded or was at the same level as
The main causes who stand on this that of loans.
development were determined in part by: Despite the tendency of savings of the
fear of risk people in our country, the deposit value in
non-performing loan Romania remains below the average of CEE
low profitability countries.
decrease the available income of The nominal value of total deposits
population continued to grow in 2012, reaching 40.5
increased inclination for savings billion EURO. So, the tendency to save was
All these factors have influenced the visible last year. This is because of the
lending process and helped to get a negative appetite of people to save and showing a
evolution. higher precautious in the management of
Regarding the structure of the loans, revenues. [5]
lending Coorporate segment continued to However, the average loan /deposit ratio
grow in 2012 reaching a level of 26.7 billion recorded in CEE countries has stopped his
euros, while household loans remained at a strong performance launched in the years
relatively stable nominal values. before the economic crisis. While in some
High growth rate of non-governmental cases it decreased for most of the countries is
credit (granted to households and non- still one above par.
financial companies) until 2008 was replaced In terms of penetration of the cards on the
by a contraction in the last two years. So if national market, Romania has great potential
the growth rate of loans in lei reached for development, more so in the last two
negative levels in real terms since 2009, this years the number of valid credit cards and
inclination being maintained and last year, debit cards had a slight decrease inclination
foreign currency loans had a different compared to the 2007 -2008.
dynamic pace of growth in real terms and The number of valid card and the value of
reached negative values in January 2010, transactions increased in 2012, compared to
resuming positive growth, but quite 2011. So, there were about 13 million valid
insignificant for the second half of 2012. cards in circulation and the total value of
Unfortunately, Romania recorded the payment was 1,335 billion EURO from 1,071
highest level of non-performing loans from billion EURO in 2011.
CEE countries. However, Romania and Bulgaria
Evolution of these non-performing loans recorded, per capita, the lowest levels of
continued to increase in 2012, although the value of card transactions in CEE countries
growth rate was lower than the previous year, belonging to the EU. The report credit /capita
leading to a worsening of credit quality in (0.13) registered in Romania is two times
many banks, which significantly affected the lower that the one in Poland (0.25).
profitability of the entire banking system, the It can be said that in 2012, the banking
recording at the end of a year was a lost of system was profitable, although only 25 of
about 100 million EURO. the 41 banks operating in Romania were
All of these factors: reduced lending actually profitable.
activity, increasing the number of non- The top ten players in the banking market,
performing loans and higher costs the changes were relatively small,
determinded by the changes in regulations considering the total net assets: BCR and
imposed by the National Bank of Romania BRD remain the biggest players according to
regarding the lending process, leading to an market share with a small decrease for both
increase higher and higher of pressure on banks in 2011 (Table1).
costs to credit institutions activity, prompting Besides the two banks recorded the worst
them to exert a strict control on medium and financial losses due to costs associated with
long tremen on them. obtaining non-performing loans.
In the year 2012, deposits recorded a Table.1 The evolution of banks' market share
positive inclination in many CEE countries.
Therefore, unlike the pre-crisis years (2005- Bank 2010 2011 2012
2008), many countries in the CEE growth BCR 19.8 20.1 19.27
BRD 13.9 13.6 13.1
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CEC Bank 6.4 7.0 7.35 of the population over 15 years, well below
Transilvania 6.2 7.3 8.08 the average of 80% of Central and Eastern
Bank Europe.
Raiffeisen 6.5 6.7 6.45 Banking market in the region suffered a
Bank severe decline after the 2008 banking crisis,
UniCredit 6.0 6.3 6.85 but started to recover since 2010.
Tiriac Bank According to Study Financial Market
Volksbank 5.8 5.0 4.51 Data Services (FMDS) of GfK, the
Alpha Bank 6.2 4.7 4.50 population level of bankarization has
ING Bank 3.6 4.0 4.51 increased lately and is expected to grow
Bancpost 3.9 3.5 3.31 further, given the undeveloped potential of
Source: author's data countries such as Romania and Bulgaria.
The most used bank products are current
The banks situation for 2012 is: accounts and bank cards. So, in the first half
BCR remains in first place with a of this year in Romania, one third of
19,27% market share, smaller then 2011, Romanians have at least one current account,
the total value of assets is 70,6 billion lei. and over 40% of the citizens of countries
BRD achieve a market share of 13,1% have a credit card. Almost 39% has a debit
compared to 13,6% in 2011 and 14% in card and 4,5% of the people a credit card.
2010. Compared to 47% of the population in
Central and Eastern Europe has a current
Transilvania Bank managed the biggest
account, while about 50% have a credit card.
increase reaching 8,08%, up by over
Consequently the main, short and medium
0,7% from 2011.
term, inclinations of the banking system in
CEC Bank, obtain a growing market
Romania can be mentioned:
share of 7,35% compared to 2011. Bank
is the most important financial institution increased funding pressures
owned by the state, and one with a strong reduced lending activity
network of agents in rural areas. increased orientation to attracting
Unicredit Tiriac Bank recorded a growth projects co-financed from EU funds,
of 0,5% compared to 2011, reaching a considering the low rate of absorption
market share of 6,85%, despite the and the fact that there is potential for
problems faced by the parent bank at co-financing of such projects, some
home. banks already positioning itself in this
Raiffeisen Bank has returned to the share segment
that was in 2010 and 6,45%, after having
controlling costs and optimizing the
an increase in 2011 to 6,7%.
branch network
Voksbank Romania has a share of
4,51%, due restructuring efforts after a changes in the competitive
powerful exploded in the mortgage for environment, there are already
the population. inclinations of consolidation at he
ING Bank reached 16,5 billion lei and a levels in the banking groups.
market share increase by one percent. All these factors leading to optimize the
Alpha Bank continued to lose ground banking branch network and then to develop
because of the crisis in Greece, reaching and improve alternative distribution channels
at 4,5%. to replace traditional network size. [6]
BancPost, like all Greek banks is losing Banks in our country allied European
ground, recording only 3,31%. inclinations of development in alternative
channels such as mobile and internet
3. Conclusion banking.
Under these conditions, the main short
In the Central and Eastern Europe, and medium term inclinations of the
Romania has the least banked population Romanian banking system include: small
together with Bulgaria and Poland. So our banks repositioning by targeting niche
country has a level of bankarization of 56% segments, a potential consolidation of the
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4. References
767
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Volume XIII, Issue 1/ 2013
Dinu Gabriel
Faculty of Economic Sciences / Department of Economic Sciences, “Eftimie Murgu”
University, Resita, Romania,
g.dinu@uem.ro
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The result in what can and should be a suggestion, etc. The psychoanalytic theories
party or a candidate seeking to compete have had a deep impact on marketing in the
successfully in an electoral competition is: 50s, especially in terms of research on
1. To identify the main segments of voters motivation: commercials for products whose
(to be determined on the basis of socio- packaging is addressing to the consumer
demographic, but also attitudes and behavior) subconscious, stimulating fantasy and
2. To determine the main factors imagination, the use of sexual symbols in
influencing the choices of each segment of promoting products etc. So, an electoral
voters campaign can successfully use techniques for
3. To agree endogenous components- creating the image of the candidate
political program, language, dress etc. with corresponding to one or another of the
the expectations of voters who intend to be dominant models of voter decision that he
addressed. wants to persuade. However, a candidate who
wants to be seen as a bringer of peace in a
3. Models of electoral behavior world governed by chaos risks, if the
techniques are not properly mastered, to be
Currently, the literature distinguishes assimilated with the messenger of that chaos
three categories of explanatory models [4] (see the video of PDL in the presidential
A. Socio-demographic patterns. Socio- election in 2009 between the two rounds
demographic models aim to highlight the regarding the restoration of communism if
probabilistic nature relationships between PSD returns to power).
social and demographic characteristics of C. The attitudinal models are most
voters (sex, age, level of education, commonly used and present the vote of an
profession, occupation, income, place of electoral election as a resultant vector with
residence, religion, etc.) and their vote. There cognitive components and affective
are many disputes about how socio- dimensions of his personality.
demographic characteristics of an individual In extremis, the decision to vote for a
or a corporate can be held liable for the candidate can be assimilated by the decision
political choice. However, as will be seen in to buy a product. Analyzing how making a
one of the subsections, such inferences can purchase decision if the buyer is forced to
be made. It should be emphasized, however, choose between several brands representing
that they should be interpreted more as the same type of product, it is found that
trends, as inclinations, as probabilities rather there are many attitudinal explanatory
than a strictly defined statistical and causal models of its decision, on which we will
relationships(for example, whom only vote mainly stop in this book.
with the party X or the candidate Y will be C1.The disjunctive models: the buyer
voted only by townspeople etc) believes that it must be chosen the brand with
B. Models of psychoanalytic inspiration. the best score for an attribute, no matter the
These models explain the voting behavior of importance of the attribute to the consumer
an individual as being primarily inspired not (for example choosing a perfume that has a
by rational considerations, but it profoundly special package, even if it is more expensive
affect attitudes and even unconscious on the or does not smell so good as another scent
candidates. These attitudes include: the need that the consumer would have chosen).
for authority and rebellion against authority, C2.The connective model: the buyer sets
fear and desire security, degree of a minimum threshold for each attribute that
identification-as perception, not unconscious you consider important. The brands that have
desire-of the voter with his candidate, on the not scores “to pass” to all attributes that are
contrary, the hatred and aggression towards considered important will not be bought.
it. These models have a high degree of C3.The lexicographic model: the buyer
arbitrariness or, at least, the analysis made in operates in a sequential manner. He ranks
the light of them may be more difficult to attributes of a product according to the
quantify. The result of an election campaign importance you attach to the overall
is a feeling in the minds of voters, with all its assessment of the product. Then compare the
train of features: irrational collective marks on the most important attribute and
imaginary, ineffable, hope, imagination, self- retain the one that has the highest score. If
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there is a tie between several brands, the tools in the analysis of consumer decision-
buyer goes to the second attribute making process (and in this case, the voter).
importance, and so on. This pattern is the How do these models predict the decision
opposite situation of an impulsive, of the electoral strategy of the party or the
unconscious choice, the buyer can not justify candidate? The answer to this question might
why he purchased that product. be formulated by analyzing the consequences
C4.The compensatory model: unlike the of using each of the four models:
three previous models, this model developed The disjunctive model is the least rational
by Rosenberg and Fishbein, believes that it is and therefore the possibilities that have the
recognized by a buyer offset the lower scores candidates to influence voters who adopt this
on some attributes and higher scores on the model are very limited. It must be identified
other hand, for the same product. In essence, and emphasized those attributes likely to
it is a linear-additive model, the consumer cause spontaneous decisions from voters. In
choosing the brand with the best overall practice, both the identification and the
score, obtained by summing the products improvement of the attribute are very
between the importance of the attribute and difficult.
the scores of each brand on that attribute. The connective model is synonymous
Another classification proposed dividing with the choice by exclusion. The voter will
the attitudinal models into two classes: eliminate the candidates who have a weak
compensatory models and non-compensatory point, considered as unacceptable. The
models. The compensatory models show that interest of the candidate is to improve its
the high score obtained for a product image on the dotted improperly attributes, the
compensates the low score obtained by the weaknesses, as SWOT analysis which will be
same product for another attribute. The further developed. For this it is necessary to
compensatory model highlights the change the behavior in the manner required
importance of the overall evaluation of the by the electorate and to emphasize the
product. The non-compensatory models change on all the occasions in public. But we
assume that high scores for a product must take into account that an enhanced
attribute does not compensate for low scores image process is too long and another sudden
obtained for another attributes. [4] change in the behavior leads to
The same classification considered the counterproductive and low credibility.
non-compensatory models as hierarchical; If the decision model applied is
the buyer chooses an attribute of a product lexicographical, the candidate will determine
and compares it to the same attribute of the hierarchy of attributes that the voters
another product. The process continues for make, will use a simple call strategy on the
all the attributes and then is ranked according most important attribute in order to
to their scores. The non-compensatory emphasize the differences in relation to other
models have as submodels, the conjuctive candidates. The communication effort in this
disjunctive and lexicographical model direction should be maximum, provided that
(discussed above) and, in addition, the the actual candidate possess the qualities that
elimination of their appearance. In the he highlights (or create the impression that
decision model, each product is viewed as a the created image fits to him) in its
collection of aspects (attributes).The choice communication policy.
is done hierarchically, the alternatives are If the voters decide in a compensatory
compared on the most important attributes, manner, the candidate has the interest to
and alternatives as “crossing threshold” are determine the hierarchy of attributes and try
removed. This second classification to improve their obtained scores in all the
concludes that persons placed in a position to attributes, but especially determinant
choose between several products used in 90% attributes. The communicational strategy
of cases, the lexicographic model, followed must rely on a called multiple strategies or
by the compensatory model. In terms of the the ideal content should be different
provided information and the description of depending on the target segment which it is
the models, the two classifications do not addressed and the communication effort
differ significantly. They show concern for should be distributed in a balanced manner
refining researches and theorists working between the various determinant attributes.
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Dinu Loredana
Faculty of Economic Sciences / Department of Economic Sciences, “Eftimie Murgu”
University, Resita, Romania,
l.dinu@uem.ro
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White Cross, leads to Jelarau source and person becomes a consumer of tourist
from here to Suscu (1200 m). services when deciding and going on a trip
Leaving to the left “The cat’s path”, you for a few days, or only to spend a vacation.
can arrive at “Serban’s Cave” and “Serban’s Romania, by the variety of the natural
peak”, where we can also find “The elements, by the multiple evidences of a
Domogled peak” (1106m). millenary history and culture, also by
There are many other interesting places to buildings acquired over the years, has a reach
be visited, marked or unmarked trails that tourism potential exploited to some extent. In
lure the tourists coming from every area. what follows I have tried to present a study
You can organize trips at Semenic and about a wonderful tourist area which came
Valea Cernei, Cheile Cernei, in Drobeta into obscurity.[5]
Turnu Severin (Podul lui Traian, Tabula This theme follows a very important
Traiana), in Targu Jiu (the museum complex issue, namely the consumer awareness
Constantin Brancusi), you can also the towards the tourist area Iron Gates.
monastery from Tismana, tours at Ponoare Just hoping that I will find the answer to
Karst. this question, I have conducted a group
The develop strategy of promoting the discussion (like “focus group”) at which took
tourism resort must start by understanding part a number of 10 people. To form a
the strategic thinking of all the activities and homogeneous group of people (this is
its implementation. Marketing plays an required in such studies) were chosen people
important role in the elaboration of this whose main feature (common) is the passion
strategy by providing the required for tourism in general and especially the
information to develop the strategic plan. lovers of mountain and hiking outdoors.
However, in Romania, the place that is To study the awareness of the tourist area
occupied by marketing in the structure of a Iron Gates were used information derived
business differs from one case to another, so, directly from the consumers.
in some cases, marketing is lacking or is only The structure of the group who took part
“with the name”. at the discussion, according to the criteria of
gender and age was as follows:
2. Results - under 20 years: 2 males and one female,
total: 3 people;
The research of tourism phenomenon - 20-40 years: 3 males and 2 females, so a
integrates a wide thematic range, from the total of 5 people;
conceptual clarification and defining its place - 40 years: a male person and a female, so
in the strategy of development, to highlight a total of 2 people
the determinants, the development trends and It can be seen that the group of the 10
the forms of expression of the coordinates subjects had a total of 6 males and 4 females.
and market mechanisms and also to assess its Regarding the origin of the participants,
impact on economic, social cultural, they come entirely from urban municipalities
environmental and political plan. All this are respectively Drobeta Turnu Severin and
based on using a variety of data resources, of Resita. The close relatively of those who
a research tool where are not missing the participated at the discussion represented by
mathematical models and comparative the investigated tourism product can be build
analysis, on the achievement of some in a hint of bias towards the studied area,
investigations from a marketing perspective taking into account that we are talking about
or modern management. [6] an area from their home counties.
The existence of each individual, but also The discussions were held, of course, due
of the society as a whole, it would not be to the tourist area Iron Gates, taking into
possible without consumption, each of us account the study of awareness of the
having the role of a consumer. Everyone potential tourism of this area.
feels the need to leave the environment in Due to the absence of technical means
which he lives every day in order to recover that are necessary for such methods (audio
physically and mentally after a day, a month and video devices), the assessment and
or a year of working or simply he wants to quantification of the answers was difficult.
visit new places and meet new people. That That is why this discussion group has
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proposed a more general objective, that of only 2 out of 10 people) had done with their
revealing the awareness of the studied own („outputs” of few days with
tourism product among some potential accommodation in tent) and declared
consumers. themselves very satisfied with the scenery
The receptivity of the people who and generally by the encountered natural
participated in this discussion was high, beauties;
recording important contributions of the - all the participants in the discussion
participants in treatment the proposed topic. agreed that the area is far less promoted and
This made the task easier for the animator the interest of tourism enterprises, especially
(moderator), especially since there was a very of the authorities towards promoting the area,
clear common direction about the opinions of is very low;
the participants. - about the anthropogenic potential of the
The discussions in the interview group area, most of the subjects knew the features
had as main objective, as stated, assessing the and the elements of the existing tourist
awareness of potential tourists on the tourist attraction in the area, especially those from
area “Iron Gates”. Herculane resort, that are in fact, well known.
Being limited by the lack of special
technical means for such studies, the 3. Conclusions
discussions on this subject can be
summarized by presenting some conclusions After the discussions and the interactions
drawn as a common direction regarding this of viewers between the participants,
topic. concluded the need for a higher promotion of
As a general conclusion of the interview the resources for a superior recovery of the
group, it may be said that the awareness of existing tourism potential.
tourist towards the tourist area “Iron Gates” The presented conclusions illustrates,
is very low, the area being least promoted in therefore, a low degree of knowledge
order to attract a large number of tourists. speaking about the area, which combined
The knowledge of the participants at the with the lack of planning for tourism, leads to
interview was limited, largely, to the remain in anonymous the beautiful area Iron
following aspects: Gate with all its riches and beauty.
- the most participants at the interview felt The tourism plays an important role that
that the area “Iron Gates” is limited, as can’t be challenged in the national and
tourism potential, only at the area Gura Vaii; international economy, in the social behavior
- also, most of the subjects have never of those who practice it in the existence of
visited the area “Iron Gates”, their „outputs”, those who ensure the operation just because
as tourists, are limited at visiting Herculane of the scale that it took.
resort; The romanian tourism decline has various
- regarding the tourism potential of the causes such as economic crisis, low
area, most of the participants knew only the consumption, exchange rate, low quality of
existence of several caves in the area services, poor management, marketing
(especially the Grotto Outlaws); almost nonexistent, the lack of strategy and
- regarding the floristic richness of the development concept clearly enough field,
area, the knowledge of the participants was myopia government policies, dilapidated
limited, largely, only at the existence of the state of infrastructure, significant
black pine of Banat in the area, and speaking investments, competition in the area etc.
about the fauna, all knew about the existence Effective exploitation of tourism potential
of a large number of vipers in the area; can not be achieved with current national
- the few participants who had visited the infrastructure.
area as tourists, were unanimously agreed Tourism is a great chance of rapid
that the lack of infrastructure facilities economic development of Romania. It has to
(mainly access roads) and the travel respond adequately to the Romanian option
arrangement (no tourist signs and ancient of integration into European structures and
markings) consists the biggest problem international. Recovery tourism is beneficial
which with the area” Iron Gates” is facing; throughout the country and its international
- everyone who visited the area (actually promotion can become an element of
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4. References
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Dionisie Cristina
Economic Faculty – Petre Andrei University
cris_dion@yahoo.com
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c) Brand notoriety had a decisive impact its capacities. Most of the new pensions were
in maintaining particular preferences for put into service in Vaslui county (pensions
foreign tourists. Specific offerings of rural by increasing the offer of 31.1 per cent)
tourism and agritourism in Bucovina are followed by Romania (16.9%). However the
most often accessed, due to the notoriety of highest levels of capacity in graded
the brand. accommodation shall be maintained in the
d) Investments, how to manage EU funds counties of Suceava and Neamţ (49% and
for investment and advertising were the key 47%). Overall, the number of pensions
factors for stimulating the rural tourism and recorded an increase of 6% over the period of
agritourism in some areas. The two main the crisis, these accounting for 12.9 percent
resorts of the North East region, Vatra Dornei of those throughout the country.
and Durău benefited from different sources:
European funds and particular investments Table 1. The evolution of guesthouses,
for the development of winter sports in villas and chalets (places)
Durău. Province %2010/2009 %2011/2009
e) Better use of the potential in Bacău 0,9 3,7
agritourism versus previous periods of crisis Botoşani 16,9 0,1
in the areas which have diversified leisure Iaşi 1,3 21,6
travel services. Significant investments have Neamţ 2,6 -0,3
been made in the Arini areas, with ski slopes,
Suceava 9,0 13,8
ski lift, ice rink, sports fields, swimming
Vaslui 31,1 5,0
pool, which has led to an increase in the
number of tourists and make better use of Source: calculated after Anuarul statistic al
rural tourism potential of the area. României, online, www.insse.ro/cms
Investments in the Piatra Neamţ – skiing,
gondola, chairlift and tubing have attracted Most belong to the middle category of
tourists who visited touristic packages. accommodation comfort environments.
f) Most areas in North Eastern Region Suceava is the only county in the Northeast
have not adopted and implemented strategies Region with a 5 *. Botoşani County, which
and crisis action plans (local or regional), has the lowest number of hostels in the
crisis measures at local and regional level in region and which records the highest number
order to protect and encourage rural tourism of seats (23 places for all degrees of
and agritourism; comfort). The services offered are:
g) In most areas of the Northeast Region, accommodation and meals. Additional
the development of tourism, including the services include low cost activities: buggy
agritourism and rural tourism are not rides, sleigh rides in winter, hiking, and
correlated with environmental projects. picnics at Stânele. Most guesthouses have
Tourism Practice in Romania shows that rooms equipped with TV, hot water,
ecotourism strategy remained in reality only breakfast included and access to an equipped
in the draft stage. kitchen. Rarely is given full Board/half
Evaluation of how to exploit the potential board, laundry service as under. Young
of agritourism must be made in a realistic entrepreneurs in the tourism investigation
way, based on the findings and observations revealed three main groups of additional
on the spot and at the same time, depending services for the Northeast Region:
on the evolution of the main indicators and 1) Services, which should be developed as
tour consumer behaviour during the crisis, a priority: carriage rides, tobogganing,
compared to previous periods. cycling, hiking, picnics in the henhouse,
Offering accommodation to the North- transport from the train/coach, ping pong
East Region has increased both in terms of tables, billiards, participation in
existing units and 18.8% of the seats offered traditional activities (milking cows, sheep
with 3.8% in the period 2009-2011. curd preparation, cooking traditional
Moreover, the ability of the guesthouses foods, traditional dances, painting eggs,
accommodation has seen a steady growth pottery, carving, etc.)
since the establishment of their initiative, the 2) Services that should be provided on
North East Region has increased four times request of some groups of tourists: ATV
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strategy: the European Agricultural Guidance flooding. For this purpose it is necessary to
and guarantee fund (EAGGF); The European achieve the afforestation in order to correct
Regional Development Fund (ERDF); The the abuses made by some owners, through
European Social Fund (ESF). irrational deforestation of certain tourist areas
6) Rethinking of strategies to launch the have produced damage in a natural
Romanian tourist village on the world market ecosystem. Improving the impact produced
through the decision makers at by some phenomena requires urgent
mezoeconomic level. The complex process of implementation of public infrastructure,
launching on the market of the village, as a support for less- favoured areas, and improve
tourism product, should be permanently the quality of the landscape.
monitored through the use of consumer/ and The concerns for tourist guesthouses
tourist vision. The existence of the necessary approval should be accompanied by
logistics for knowing consumer preferences measures which improve the level of
and the need to boost the tourist promotion of development of the area.
the Romanian village in the European
market. Conclusions
7) Linking policy of tourism product
tourism strategy for the area. Product policy Correlation of tourism strategies and
should be foreshadowed by natural factors, policies with those in other fields requires a
infrastructure (general and specific), quality relationship between tourism and agriculture,
of service, achieving the internationally- tourism and industry between the impact of
agreed standards of comfort. In this context modernization and the prelaunch of the
there can be suitable tourism products, in Romanian village. Pushing forward
accordance with the requirements of the agricultural programs and support through
Organization accepted by the owners. innovative tourist holdings requires the
8) Strategic management and the factors deployment of new agricultural, handicraft
that underlie the development of rural activities in the presence of tourists: carpet
tourism in the North-East Region should be weaving, sewing and singing folk music,
focused on solving the problems of painting eggs, sheep shearing, etc.
infrastructure and logistics divisions, those Main measures on the part of local
related to the tourist offer and the knowledge decision-making factors such as financial aid,
of quantitative and qualitative level of the investment in the development of tourism
human factor. and craft activities, actions to promote rural
9) The main objectives of the strategy tourism, planning for development of sports
planning may include: harnessing the should be directed towards those areas where
potential of agro tourism; decreasing farmers are willing to carry out these
seasonal, referring to the extension of the activities and stand at tourists.
tourist season and exploitable for a period In conclusion, it is possible to boost rural
exceeding the limits considered specific tourism by improving the strategic capacity
season; attracting a greater number of of the rural space, which requires a collective
Romanian and foreign tourists; Economic effort on the part of from all the factors
and social efficiency of rural tourism involved in the development of tourism and
activities, through enhanced cooperation and the economic development of tourist areas in
development of partnerships; diversification the North-East Region.
of rural tourism, by adopting any form of
possible alternative activities and facilities in References
the area concerned; preservation and
conservation of the environment and tourist [1]*** 2012, Întreprinzători în turism, Pensiuni
attractions. în România, Fundaţia naţională a tinerilor
Adoption of a framework policy for the manageri, pp.1-58
prevention of threats to the natural [2] Dionisie, Cristina, Economia turismului.
Strategii - Resurse umane - Eficienţă, Editura
environment because of the natural factors
Junimea, Iaşi, 2006, pp.30-60.
and abusive behaviour from some owners: [3] Candrea, Adina Nicoleta, Politici şi strategiis
measures to combat soil degradation and de marketing pentru dezvoltarea
protection of the areas exposed to the risk of
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Drogomyretska Mariana
Faculty of Economics and Management
Poltava University of Economics and Trade, Higher Educational Establishment of the
Ukrainian Central Union of Consumer Societies
mariana.puet@mail.ru
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have every reason to believe that motivation individuals develop, they work their way up a
is an effective and dynamic instrument in the hierarchy based on the fulfillment of a series
hands of every manager for inspiring the of prioritized needs (see Figure 1).
workforce and creating confidence in them.
Through the employee motivation,
management creates “will to work” which is
necessary for the achievement of Self-actualization
organizational goals.
Esteem needs
3. Historical Overview of the Field of
Employee Motivation Belongingness and Love needs
It’s important to keep in mind that
historical views on motivation, although not Security / Safety needs
always accurate, are of interest for several
reasons. For one thing, these approaches Physiological and Biological needs
provide a foundation for contemporary
thinking about motivation. For another,
because they generally were based on Figure 1. Maslow’s Hierarchy of Needs,
common sense and intuition, an appreciation an original five-stage model [6]
of their strengths and weaknesses can help
managers gain useful insights into employee On the basis of the given model we can
motivation in the workplace. assume that physiological needs are the basic
One of the first writers to address work needs for sustaining human life. These needs
motivation over a century ago was Frederick include food, shelter, clothing, rest, air,
Winslow Taylor (1856 – 1915), an American water, sleep etc. They lie at the lowest level
mechanical engineer who believed that in the hierarchy of needs as they have priority
workers are mainly motivated by the over all other individual needs. Unless and
paycheck and they don’t like working at all until these basic physiological needs are
[4]. Taylor suggested that workers would satisfied to the required extent, other needs
need very close supervision and that do not motivate an employee in organization.
production should be broken down into small Speaking about security or safety needs, it
but measurable tasks in order to ensure the should be mentioned that these are the needs
highest possible output from workers [5]. connected with the psychological fear of loss
Over time workers got bored with the routine of job, property, natural calamities or
nature of their repetitive tasks, they wanted hazards. An employee wants protection from
something more than just pay. From these such types of fear. He prefers adequate safety
and similar observations we may generalize or security in this regard i.e. protection from
and say that Frederick Taylor was right at the physical danger, security of job, pension for
point he started but wrong on where he old age, insurance cover for life and so on.
believed the need for motivation stopped. The safety needs come after meeting the
physiological needs.
3.1. Content Theory Approach to Social needs, which include such things as
Employee Motivation and the Possibility love and belongingness, occupy the third
of its Application Nowadays position in the hierarchy of needs. Being the
most prominent psychologist of the 20th
By the 1950s, several new models of century, Abraham Maslow (1908 – 1970)
work motivation emerged, which collectively suggested that an employee is a human being,
have been referred to as content theories. which desires to belong to one or another
Often criticized as being descriptive, these group, regardless if these groups are large or
theories focus on what motivates employees small. By the way, Abraham Maslow argued
to choose certain behaviors. that esteem needs include the need to be
The most recognized of all the content respected by others, need to be appreciated
theories of motivation is Maslow’s Need by others, need to have power and finally
Hierarchy Theory, which suggests that as prestigious position. Once the previous needs
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competitions and rewards for excellent work. Yale School of Management, who was born
Power needs may be met by offering in 1932 in Montreal, Canada.
opportunities for advancement and increased This motivation theory states that if an
responsibility. And employers can meet individual believes he or she can do
affiliation needs by creating a team something then he or she is more likely to
environment that is safe and respectful for all accomplish it. Thoughts and efforts are vital
employees. to this theory because if someone does not
Acquired needs theory indicates the think they are able to do a task, he or she is
following characteristics and attitudes of not likely to put forth much effort. Therefore,
achievement-motivated people in modern motivation is decreased. Failure does not
organizations: motivate a person to try harder. Successes,
achievement of objectives matters more even if they are small, motivate people to
than material or financial reward; improve [13].
greater personal satisfaction is felt by In deciding how much effort to put into a
achieving the goal than from receiving praise work behavior, individuals are likely to
or recognition; consider:
money is regarded as a measure of their expectancy, meaning the degree to
success, but not the end in itself; which they believe that putting forth effort
neither status nor security are prime will lead to a given level of performance;
motivations; their instrumentality, or the degree to
achievement-motivated people constantly which they believe that a given level of
looking for ways of doing things better; performance will result in certain outcomes
achievement-motivated people will or rewards;
gravitate towards jobs and responsibilities their valence, which is the extent to which
that challenge them and satisfy their needs - the expected outcomes are attractive or
for example sales and business leadership unattractive.
and management; On the contrary, Equity Theory attempts
achievement-motivated people have the relational satisfaction in terms of perceptions
capacity to set high personal goals that they of fair/unfair distributions of resources within
believe to be attainable [13]. interpersonal relationships. It was first
It’s self-evident that all four of these developed in 1963 by John Stacy Adams, a
content theories are helpful in understanding workplace and behavioral psychologist, who
employee motivation on the basis of needs. asserted that employees seek to maintain
However, other theories of motivation also equity between the inputs that they bring a
have been posited and require consideration. job and the outcomes that they receive from
against the perceived inputs and outcomes of
3.2. Process-Based Theories of Employee others [14]. It is worthwhile to mention that
Motivation, Widely Used in Modern inputs are logically what we give or put into
Organizations our work. Outputs are everything we take out
in return. These terms help emphasize that
Process-based theories of employee what people put into their work includes
motivation are concerned with how many factors besides working hours, and that
motivation takes place. They focus on why what people receive from their work includes
people choose certain behavioral options to many things aside from money [15].
fulfill their needs and how they evaluate their In short, we each seek a fair balance
satisfaction after they have attained their between what we put into our job and what
goals. Two of the most recently popular we got out of it. But how do we decide what
process theories with a cognitive perspective balance can be considered as a fair. The
are the Expectancy and the Equity Theories answer lies in Equity Theory. What matters
of Motivation. here is that the three primary assumptions
Thus, Expectancy Theory is based on how applied to most applications of Equity
we want something and how likely we think Theory in modern organizations can be
we are to get it. The formal framework of summarized as follows [14]:
expectancy theory was developed by Victor employees expect a fair return for what
Vroom, a business school professor at the they contribute to their jobs, a concept
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Grigore Claudia
The Bucharest University of Economic Studies
grigoreclaudia@yahoo.com
Zanfir Adriana
The Bucharest University of Economic Studies
zanfir.adriana@gmail.com
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involves the expression of some specific than the ones a person may actually have
emotions, very deep. Beyond the effective were thought to be best applied in the service
responsibility, physicians represent a real industry where the interaction between
moral and psychological support for patients. customers and employees is the key
According to the Code of Medical ingredient for companies to survive in a
Deontology, the physician should be an competitive environment. In order to better
ethical-professional model that prioritizes the understand this standpoint Wharton [11] has
interests of the patient in detriment of any argued that services are best differentiated
other type of interests [13]. from goods by the fact the first represent
Physicians’ behaviors play a key role to “intangible activities, that are created and
improve the health of the patient. Therefore consumed simultaneously as they are
they must provide trust and safety that health delivered to the end customer through the
problems will be solved. social interaction between their supplier and
The literature underlines the importance the client” (1993, pp. 206).
of adjusting feelings and emotional Even though we may speak of private
expressions of the physicians to the patients, companies or public institutions, services are
especially when they communicate the the ones that finally dictate how employees
diagnosis. Physician behavior in such should really perform a specific role when
situations generate a series of questions, such interacting with clients or citizens. And this
as: How much emotional involvement is activity gets even tougher when a person
there in this interaction? What professional should hide feelings of sympathy or sadness
attitude must they have to the patient? How towards a grieving patient in order to show
to manage the patient's feelings and emotions an image of professionalism and to offer
in a critical situation? [9]. comfort for any physical of mental pain.
Feelings have nowadays become one of Depending on the job a company requires
the most valuable aptitudes an employee can an employee to perform, there can be
have. Regardless of all the technical identified different types of efforts like the
knowledge one may have, the way we physical or intellectual ones. However, the
display our image in front of our bosses, our current scientific literature on organizational
clients and even our partners set the behavior and human resource performance
difference from work performance to speaks of a third type of effort: the emotional
mediocrity. Emotions are therefore managed one [10].
in order to create a sense of courtesy, Furthermore this gets more difficult in
warmth, happiness or even sadness. case of physicians who have to interact with
And all this aspects have a greater patients and their families. How would the
resonance when talking about medical medical staff feel in a situation when they
services. Patients should not only be cured would need to tell a family that one of his
from their medical problems, but they ought members is about to die and there is nothing
to get comforted for the emotional pain that else to be done? Surely that physician would
an illness may entail [4], [6], [5]. try to display an image of comfort and
Arlie Russell Hochschild [5] first understanding for the family’s potential loss
presented in a theoretical manner how or grievance. This is actually where the
employees actually manage their emotions at emotional effort really interferes as the
work. Skills are no longer defined in this medical staff ought to perform not only the
perspective in terms of technical therapeutic act, but also the emotional
competencies, but of the means the support for both patients and their families.
employees use to handle their own emotions Some authors [8] even argued that such
when interacting with clients. This process situations can actually estrange someone
where feelings get actually managed in order from his or hers real way of being. Though a
to display a publicly desired image was worker may succeed to perform a certain
called by the author as “emotional labor”. display of comfort or courtesy, some of the
Such efforts of displaying other feelings experiences from his personal life may set a
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mark on his emotional background. will also have the responsibility to not point
For example, a physician who is in the the blame on the person who decides to
middle of a separation process from his wife pursue this step in her life. Nurses or
will surely find it difficult to smile in front of physicians who may love children can find
his patience. However, in this domain, not difficult to perform this act and moreover to
doing your job properly will certainly affect support women in their decision to make an
the services you provide (in this case medical abortion.
treatment), but it will also influence the A study of this kind was made by
patients’ well being. Wolkomir M. and Powers J. [12] with the
In order to avoid alienation from the help of participant observations and in-dept
authentic self, Conrad [2] suggested three interviews in an abortion clinic. The authors
components for emotional labor that think that “workers labeled patients as
companies or institutions should consider distinct types and developed specific
when evaluating the performance of their interactional strategies for each type that
employees and their effort. The first one is enabled them to meet patient needs while
the emotional harmony component where a simultaneously maximizing the rewards of
person actually feels the emotions he emotional labor and minimizing costs”
displays. The second one is the emotional (Idem, pp. 155). In this perspective, costs
deviance where the worker perform a were actually represented by the moral
different role than the one required by the discrepancy between taking a life and the one
company. Such situation can be subject to of the medical act of saving the mother.
disciplinary measures as employees may Patients that were easy to deal with in such
show feelings of angriness, annoyance or cases (e.g. women who made the decision
disrespect that may alter the relationship with and were comfortable with it) made work
customers and their perceptions over the much easier for the staff as they only needed
service quality. The third component in this to perform the medical act.
perspective is emotional dissonance. Such Things however became complicated
situations may come up when a worker when the patient did not have a clear picture
shows the emotions a company requires him, of the consequence the abortion may have or
but may not actually internalize them as his when their decision was not entirely made.
true believes. This is the part where one Feelings like anger or sadness from women
could notice the highest emotional effort, but who wanted to take an abortion were
it may also be the situation that determines increasingly hard to deal with and were
the uppermost turnover rates. perceived by the nurses and physicians as
Patients tend to ask for understanding and situations that consumed all of their energy.
comfort when being treated by an illness.
This could actually be an instinctive way of 5. Conclusions
performing their role of grievance. However,
some medical staff may only consider they In our opinion, emotion management is
are doing their job when performing the one of the most significant criteria for
physical treatment without taking into evaluating service performance in the
consideration the emotional impact an medical domain and the effort entailed by
inappropriate behavior can have over the such acts should certainly not be overlooked.
patients’ general well of being. It comes Companies should know how their
almost naturally to think of the difference employees perform their role in the
between public and private medical interaction with clients in order to develop
providers. While the later know that carrying the best cultural practices when providing a
for patients does not only mean to apply service.
medicines, but to comfort the ones who It is of a greater significance for hospital
suffer, the public institutions may have a managers to influence the image physician
propensity to not take into consideration this and nurses exhibit to patience. Such
perspective. encounters may affect the perceived quality
For instance, an abortion clinic may of medical services, but can also alter
certainly not only perform the act of helping patients’ physical and emotional health.
women to solve an unwanted pregnancy. It As we have already argued emotion
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management has a special role when coming [5] Hochschild, A. R., The Managed Heart.
to evaluate health care service performance. Commercialization of Human Feelings.
One should not forget however that a Berkeley: University of California Press.
physician’s activity entails a large number of 2003.
[6] Hodson, R. A., Meta-Analysis of Workplace
pressures, especially in situations where so-
Ethnographies: Race, Gender, and
called ethical dilemmas arise. It is important Employees Attitudes and Behaviors. Journal
to note that medical activities involve a of Contemporary Ethnography, Vol. 33/No.
sequence of emotional states that may have a 4, 2004, pp. 4-38.
direct influence on the quality of services. [7] Locke, K. A., Funny Thing Happened! The
The patient is the primary evaluator of Management of Consumer Emotions in
quality regarding the health act. Doctor- Service Encounters. Organization Science,
patient relationship is a key factor in Vol. 7/No. 1, 1996, pp. 40-59.
determining the quality level of services [8] Miller, K. I., Considine, J.; Garner, J., Let me
received. In most cases, particularly serious tell you about my job: exploring the terrain
of emotion in the workplace. Management
cases, this relationship is special, affective
Communication Quaterley, Vol.20/2007, pp.
type, in which attachment is mutual, both 231-260.
from the patient and the doctors. It should be [9] Paşca, M. D., Communication in the doctor-
noted, however, that regardless of the patient relationship, University Press
emotion felt, the physician is responsible for Publishing House, Târgu-Mureş, 2012, pp.
the proper treatment of the patient. 221-222.
In this context, we believe it is essential to [10] Robbins, S. P., Judge, T., Emotions and
make a careful monitoring of the factors that Moodd in Essentials of organizational
directly affect the emotional health of behavior, 10th Edition, Pearson Education,
medical staff, especially doctors, so that high Limited, UK, 2010, pp.259-297.
[11] Warthon, A. S., The affective consequence of
pressure situations may not influence, in a
service work: Managing emotions on the job.
negatively way, the quality of the therapeutic Work and Occupations. Vol. 20/1993, pp.
act. 205-232.
[12] Wolkomir, M., Powers, J., Helping Women
Acknowledgments: and Protecting the Self: The Challenge of
Emotional Labor in an Abortion Clinic. Qual
This work was co-financed from the Sociol, Vol.30/2007, pp. 153-169.
European Social Fund through Sectorial [13] *** Code of Medical Deontology of the
Operational Programme Human Resources College of Physicians in Romania
Development 2007-2013; project number
POSDRU/107/1.5/S/77213 „Ph.D. for a
career in interdisciplinary economic research
at the European standards”.
References
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Grigorescu Adriana
Faculty of Public Administration, National School of Political Studies and Public
Adninistration, Bucharest, Romania*
adrianagrigorescu11@gmail.com
Lupu Maria – Magdalena
School of Valahia University from Targoviste, Romania
magdalupu6268@gmail.com
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managerial efficiency [6], leadership [7], person with the leadership and decisive
organizational communicative improvement function in the firms that took part in the
programs [8] and so on. In order to realize a research: team leaders, supervisors,
detailed analysis of the organizational and managers, department leaders, consultants,
managerial communication it is necessary to general managers and compartment
broaden the approach of the researchers by managers.
integrating theory and practice [9]. The observation unit is represented by
Communicative competences and their companies from Dambovita County, mainly
features related to managerial efficiency are based in Targoviste.
actually instruments of evaluation of the The period used to gather data by
managerial talent, are the ones that make the interviews was January – August 2012. The
difference between a good manager and a so data were process in a data base as Microsoft
called one. If a manager knows how to Excel sheets.
communicate, he will win the trust of his We appreciated that a better image of the
coworkers [10] and will have a positive information extracted by the poll is give
influence on the environment where he through medium average of the subjects’
works. Perfection in communication can be estimations. That is why it was calculated the
obtained by organizing from time to time a medium score for each type of answer to the
training program for all the managers or the 10 questions related to communication
ones that are related to communication in the process using the formula:
X i i
firm. x *n
zi
No matter of the communication form or
technique, the most important aspect is
efficiency [11]. An important feature of the Where:
managerial communication is the nonverbal xi relative frequency,
communication [12] through which they can
send relevant information to the receivers.
ni the grade given by the subject
Very important is also the way the manager zi the total answers.
talks to the employees [13] especially if the The study had the aim the analysis of the
firm has recently passed through a major managers’ attitude toward the importance of
change, the aim of the messages being the communication abilities.
one of reducing the incertitude towards the Presumptive hypothesis of the research
new strategy [14]. were:
I – Dambovita’s managers show a
3. The research methodology moderate interest towards communicative
competences
The quantitative empirical research results II – managers underestimate the
presented in this paper is a part of a larger importance of abilities in communication.
research applied in a poll.
The data was gathered through interviews 4. The dimension and structure of the
using the face to face investigation technique. sample
The instrument used to gather the data
was the questionnaire which besides the The study was realized on a representative
identification data also contained a number of sample of 360 firms from each CAEN
10 questions related to communication domain using a random simple scheme.
features and the importance of abilities in The sample structure according to the
communication of the managers of the firms Dambovita Register of Commerce [16] data
that took part of the poll and was applied to is representative for the real distribution at
the people with leadership and decision the county level (diagram 1).
function on all three managerial levels. It was applied 400 questionnaires to more
This part of the questionnaire was adapted than one manager in few bigger companies
according to the features of the efficient and 394 were validated.
negotiator [15] and the meaning difference To establish the size of the representative
was used, the four level choice. sample in order to gather significant
The research unit is set as being the statistical data the formula Taro Jamane,
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The 394 managers questioned in the the reality of the Dambovita County
study form a similar sample that reflects (diagram 2).
Diagram 2. The sample structure
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The education level of the sample we used effective skills in uncertainty and complex
is: 44.16 % with bachelor degrees; 11.93 % circumstances.
master degrees or similar and 43.91 % with We asked the questioned managers to tick
average studies. according to their importance characteristics
of the communication abilities evaluated on a
5. The results of the research scale of 4 points from 1- unimportant to 4-
very important. In the table below we have
For a better clarification of our noted with R- the total response, with n- the
respondents’ opinions, we sought to clarify absolute frequency and with % - the average.
the importance of communication needed and
Table 1. The importance of abilities in communication
R 4 3 2 1
n % n % n % n %
1. The ability of asking questions 394 72 18,27 24 62,44 58 14,7 18 4,57
2. The ability of expressing 394 15 38,58 18 6 46,70 41 10,4 2 17 4,31
thoughts orally 2 4 1
3. The ability of listening 394 21 5,33 36 9,14 28 71,8 54 13,71
4. Nonverbal communication 394 42 10,66 58 14,72 19 3 48,4
3 10 26,14
5. Paraverbal 394 67 17,01 10 25,89 17 1 43,9
8 52
3 13,20
6. Written communication rhythm, 394 12 30,71 14
communication(intonation, 2 37,82 87 3 22,0
1 37 9,39
7. Opening ( tolerance towards 394 161 41,12 114 9 28,93 76 19,2 8 42 10,66
accent, speed, clarity and volume)
other points of view ) 2 9
8. Empathy 394 18 4,57 55 13,96 61 15,4 26 65,99
9. Patience 394 16 41,37 10 25,63 96 24,3 8 34
0 8,63
10. Respect towards the 394 233 58,63 12 1 31,73 36 9,14 7 2 0,51
interlocutor. 1 5
The answers show that two of the ten thoughts orally; were considered very
characteristics: (1) respect towards the important for communication getting
interlocutor and (2) the ability of expressing average scores between 3.48 and 3.15.
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Most of the managers (90.36%) think that average score of 0.91, the respondents
respect is the main ability that facilitates appreciated in an average of 81.47 % that it is
good communication; among the answers a unimportant and a less important, only 4,57
very low percentage (0.51%) considers it % thought it is very important.
unimportant. So the ability of verbal
expression of thoughts is appreciated by 6. Conclusions
85.28% of the managers as being the second
best ability and very important for Out of the ten communicative abilities
communication; only 4.31 of the respondents presented to the managers that took part in
consider it unimportant. the survey, seven were appreciated as being
Five of the features enumerated in the important or very important the other three
questionnaire were evaluated as being were not taken into .account.
important for communication and got the From the point of view of the specialists
following average scores: patience (2.91) in communication each of the features is
opening and ability of asking questions (2.9), important but the level of importance is
written communication (2.8) and para-verbal varies according to the context of
communication (2.34). communication.
Patience is appreciated in a percentage of The resulted difference can only show that
67% very important and important, only managers underestimate the importance of
8.63% of the respondents think it is abilities in communication and so it confirms
unimportant. the second hypothesis of our study. This
Opening in communication (tolerance conclusion is supported also by the other
towards other points of view) is appreciated results of the survey that shows managers
in a percentage of 70.05% very important and interests for the practical abilities of the
important, 10.66 % of the managers think it’s employees.
not important. We can also conclude that that these
The ability of asking questions, the third answers show incomplete knowledge of what
characteristic important for communication communication and communicative abilities
was appreciated by 80.71% of the are so, a not very big interest for this subject.
respondents as very important and important Not being major priorities of the
and 4.57% think it’s not important. questioned managers like the financial
Written communication in 68.53% was aspects of the company, the state of the
appreciated as very important and important national and international economy, the
and 9.39% appreciated it as unimportant. administrative and law chaos and so on, we
The last of the five communicative can say that Dambovita’s managers show a
abilities of the group appreciated as moderate interest towards communicative
important is para-verbal communication competences and so it confirms the first
appreciated in 57.11% as being a little hypothesis of our study.
important or not important. Here, the For the managers that are aware that it is
appreciation towards the value of this feature necessary to keep up with the time we live in,
for importance is lower, (42.89%) but very we recommend:
close 50 % made the average score to Permanent development of
maintain between 2 and 3 points. communicative competences for study and
Active listening (1.92) and nonverbal practice;
communication (1.84) were evaluated less Use of all the communication channels
important abilities for communication. exploiting technology of the communication.
Listening capacity is less important or Preoccupation for periodical
unimportant for 85.54% of the responders, organization of training and improving
only 5.33% step it as very important. communication skills programs in their
Nonverbal communication is a little company.
important and not important for 74.62% of It is the easy way to put in the shadow a
the respondents, only 10.66% appreciated it topic and than to throw all the blame on a on
as very important. it as “bad communication”.
Considered as not important as
communicative ability, the empathy got an
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7. References
*
Additional affiliations: Valahia University from
Targoviste, Institute of Economic Forecasting -
Romanian Academy
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Humă Elena
Institute of PHD Studies Academy of Economic Studies, Bucharest
humaelena@yahoo.com
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transaction, the trust of the investors in the 2013 also. This trend will be supported by
Romanian economy was reinforced. the wanted political stability and by the
privatisation process that will be restarted, as
2. Trends on the Romanian market well as the waited transactions from the
financial sector and of the renewal energy
If during 2011, the Romanian mergers and sector. From this point of view, for sure 2013
acquisition market were equally split will be better than 2012.
between the foreign investors and the local The first quarter of the year was very
ones; in 2012 the foreign investors had 54% promising for Romania, because several
market share. The percentage for the foreign major foreign investments, in amount of over
investors is higher and this indicates that the 2 billion Euros, were announced. These
Romanian investment market presents a high investments will be made in industries like
interest for the investors coming from agriculture, wooden industry, and alternative
abroad. They are seeking for attractive sources of energy.
opportunities to invest in. Investors should stick with stocks. Patient
Even since the financial year 2009, an investors can pick up bargains during periods
important role for the investment market of of weakness -- of which there could be plenty
Romania was played by the World Bank. Its in early 2013, when things will likely be
role was a major one, because the messy in Washington and on Wall Street. But
involvement had great impact on defrosting with economic disaster averted overseas, and
the way Romania was perceived abroad. as the clouds of fiscal uncertainty at home
World Bank has assisted the Romanian begin to part later in the year, the corporate
Government in designing and implementing profits can continue to grow modestly on the
the crisis response, strengthen capacity for back of good-enough economic growth.
improved governance, and provide detailed Cash-rich companies that can manufacture
advice on key reforms. growth in a tepid economy will deliver the
World Bank will involve also to goods to shareholders.
strengthening the procedures inside the In the following, several examples of
General Secretariat of the Government and investment are given, for the year of 2013.
Ministry of Public Finance in order to assure
that new policies are approved only when 4. Investments on fuel market
financing is available over the medium level.
A sector that will be developed during the OMV Petrom will invest until 2015
future, a project already approved by the approximate 200 million Euro in
World Bank is the transport sector. The redeveloping of the mining located in
World Bank officially approved the national Suplacu de Barcau [4], in order to unlock
transport sector strategy, and this translates some supplementary reserves of coal,
into the approved investment program for the according to the declarations of the
coming years 2014 - 2020 and the 2013 and company’s representatives.
2014 proposed budgets. OMV Petrom is operating with highly
mature veins and lately, OMV Petrom
The percentage of the investments private succeeded in reducing the rate of the decline
equity type has decreased, almost at half, of the production to approximate 1% per
from 35% in 2011 to only 18% in 2012. This year. In the present, in the present moment,
decrease underlines the difficulty of foreign the company supplies approximate 40% from
investors to identify interesting objectives in the needed crude and gas in Romania. The
Romania to the extent of their portfolios and projects for the development and the
also focusing on selling the portfolio investments in innovation are and will always
companies owned for a very long time. be essential in order to maintain the
production on a stable level.
3. Previsions for 2013
5. Austrian Group opens a fifth branch in
In 2012 the mergers and acquisition Romania [5]
market registered a dynamic tendency,
tendency that continues in the beginning of
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is done with less impact as in the past. This has inclusive and sustainable development
situation is temporary, due to the economic goals at its core. In what concerns the
restrains, according to the specialists, that investment policy, this new paradigm poses
expect the market of mergers and specific challenges.
acquisitions to expend to the extent of At the national level, it includes
glorious years of the past. integrating the investment policy into the
The tendencies on the investment market development strategy, incorporating
are hard to be predicted. The investors tend sustainable development objectives and
to select very carefully the companies and ensuring relevance and effectiveness.
projects worth invested in. Due to the At the international level it is necessary to
economic crisis, the investment options strengthen the development dimension of
remain limited. international investment agreements, manage
One can never predict with great accuracy their complexity and balance the rights and
what the future has in store, but, analyzing obligations of States and investors.
the figures, it is clear that things are still In the end of 2013 the image of the
happening, even if not to a big scale, as it mergers and acquisition market will become
was the case in the past. clearer, the amounts transferred will be
Prospects for foreign direct investment public released and the comparison could be
continue to be full of risks and uncertainties. made. One thing is for sure: the investors
The flows of the global foreign direct have the sums; they are just waiting for
investment exceeded pre-financial crisis in interesting opportunities to be issued.
2012, but the recovery is expected to level of
in 2013. Despite record cash holdings, 11. References
transnational corporations have to convert
available cash into new and sustained foreign [1] http://www.ey.com/GL/en/Issues/Managing-
investment, but are very unlikely to do so finance
while the instability remains on the [2] http://www.zf.ro/business-international
international financial markets. Even so, half [3] http://www.businessweek.com/markets-and-
finance
of the global total will flow to developing
[4] http://www.reuters.com/finance/deals/merges
and transition economies, underlining the [5] http://www.capital.ro/business.html
important development role that the foreign [6] http://www.economist.com/markets-data
direct investments can play, including here [7] http://www.ft.com/intl/markets
even the least developed countries. A broader
development policy agenda is emerging and
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Fig. 1 – What is the reason that you’ve created an account on social networks?
Once we know how much time those in personal information to their accounts, such
question spend on social networks, a most as pictures and movies, in a relaxed state of
important feature of our scientific approach is mind, and having time available. A quarter of
identifying where the users log in to social the respondents access social networks from
networks, situation shown in fig. 2. Thus, their mobile devices, which implicitly leads
nearly half of the respondents log in from to lack of constraint from several viewpoints:
their home computer/ laptop. That signifies they may connect from anywhere, at any time
the fact that, in most cases they may upload and they make take advantage of Smartphone
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Fig. 3 illustrates what respondents believe second yet at little percentage difference is
regarding the extent to which posting certain the Linkedin account. Least helpful proves
information on social networks may ease the Facebook account, just little over 10%
their developing a personal brand. Thus, most considering that information posted there
of those questioned believe that most helpful may help develop a powerful personal brand.
may be the information of Facebook, ranking
Fig. 3 - To what extent do you believe your account on either of the following social networks may
be helpful for developing a personal brand?
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Fig. 4- What are the aspects you are interested in when visiting other people’s accounts on social
networks?
Since personal brand does not necessarily Within the context that 92% of the
means a career, the last question posed within respondents believe that a well conceived
the study refers specifically to this aspect, in personal brand may help the with their
a way that the respondents are urged to career, one of the points in the questionnaire
express their opinion regarding the fact that a referred to the nature of the information that,
personal brand may or may not prove helpful once posted on socializing sites may
in building a successful career. The results, implicitly be conducive to creating a good to
as illustrated in fig. 5, highlight the fact that a best image. The results are shown in fig. 6.
mere 27% of them (taking into account the Thus, some 40% of the participants consider
3% of the respondents who do not own an that private, family-related information is that
account on either social network) do not see that is most helpful to draw the attention to
any connection whatsoever between a them among friends. One third of the
powerful personal brand and a successful respondents hold on to the opinion that the
career. Most respondents (over 70%) are profession-related information (such as job,
aware of the fact that a powerful personal employer, possible promotion, position, etc)
brand may represent the foundation stone for may have positive impact on friends, whereas
a career. a mere 20% believe that education-related
information regarding courses pursued,
Fig. 5- Do you believe that developing a personal brand schools graduated, trainings they took part in,
may be helpful in your career? might play a role in creating a favorable
image for them.
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Fig. 6- Please choose a single type of information from among those listed below that you
believe may help you create a good to best image on social networks
Considering also the scenario according to Fig. 8 - Have you ever pretended to be
which there is a chance that a solely Internet- someone else on any of your social networks
based personal brand may have a mostly accounts?
virtual component, detached from the near
reality, we questioned participants to the
studio also in regard to posting fake
information or omitting some truths on social
sites. The results are shown in fig. 7 and they
confirm the hypothesis of a fake personal
brand on social networks, since about two
thirds of participants in the study, owning
accounts on at least one social network, have
at least once posted fake information on
themselves.
Fig. 7- Throughout your activity on social Given that within the online environment
networks, have you ever lied or posted fake there is also a possibility of transferring
information? brand capital from the employer to the
employee and vice-versa, one of the
questions within the study referred to the fact
that, provided the existence of social groups
made of employees of certain companies,
what is the percentage of respondents who
belong to such groups. The results, as shown
in fig. 9, indicate that 67% of social networks
users participating in the study do belong to
such groups (we note the fact that some 79%
of the respondents to the questionnaire work
full-time).
Correlated to the previous question, fig. 8
shows the responses related to declining real
identity within the virtual environment. One
may notice that at least 20% of the
respondents have at least once declined their
real identity over the Internet, on their
accounts on social networks.
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Fig. 9- On either social network, do you between companies’ that the respondents
belong to any group made of co- work for brand and personal brand, provided
workers? that over a third of those employed belong to
employees’ groups.
The initiators of this study aim that in the
near future extrapolate the study at European
level, for the purpose of achieving a
comparative study regarding the Romanians’
and the Europeans’ perception concerning
the creation and development of personal
brand by means of social networks,
considering a series of particularities that
would be defined at the moment of
6. Conclusions implementing the project. It is also perforce
that later on, a similar study should be
The implicit conclusions of this study applied to a sample group representing top
may be extrapolated and formulated thus: the employers, to be able to make a connection
majority of people targeted by the study own between what is being offered to, and what is
at least one account on at least one social expected to be gotten by employees.
network such as Facebook, Twitter or
LinkedIn. This aspect emphasizes once more 7. References
the idea that one may create, consolidate, and
communicate a personal brand by means of [1] Dave Dolak – Building a Strong Brand:
social networks. Brands and Branding Basics, www.brand-
We conclude to the present study that advice.com, accessed on 12.12.2011, 20:00
most respondents are aware of the impact and hours
the general importance of personal brand, all [2] Dave Ulrich, Norm Smallwood – Aligning
the more of that of personal brand, which in firm, leadership and personal branding,
Leader to Leader, accessed 12.23.2011,
most cases they associate to “a good or a
17:00 hours
very good image” in the eyes of friends. By [3] Tatjana Antic and others – Brand Valuation,
ranking the type of information that in the www.brandchanel.com, accessed 12.12.2012,
general opinion would implicitly lead to a 19:00 hours
powerful personal brand, we are deriving the [4] Ollins, Wally - Branding Manual, Vellant
following classification: personal Publishing House, Bucharest, 2009
information, profession-related information, [5] Kirtiş, A. Kazım; Karahan,Filiz - To Be or
and lastly, education-related information. Not to Be in Social Media Arena as the Most
We notice a general awareness regarding Cost- Efficient Marketing Strategy after the
the veracity of an exclusively online personal Global Recession, 7th International Strategic
Management Conference, Procedia Social
brand, built on social networks (at least 20%
and Behavioral Sciences 24 (2011), pag.
have declined their true identity on social 260–268
networks and at least 65% have posted fake [6] Erdogmus, Irem Eren, Cicek, Mesut - The
information). impact of social media marketing on brand
Regardless of the fact that most loyalty, 8th International Strategic
respondents perceive the developing of a Management Conference, Procedia - Social
personal brand as an opportunity for and Behavioral Sciences 58 ( 2012 ) page
developing their career, most of them relate 1353 – 1360
to it in a domestic, non-professional fashion; [7] Luca Florin Alexandru, Ioan Corina Anamaria
they connect to social networks for - Developing Personal Branding by Using
Social Networks, Sixth International
relaxation, mostly from their home computer,
Conference GEBA 2012 - Globalization And
posting private information, and besides, they Higher Education In Economics And
are following on acquaintances’ social Business Administration, ISBN: 978-973-
websites the same type of information- 703-766-4, 2012
mostly personal, family-related.
Based on the information acquired, we
may refer to a mutual transfer of image
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Ionescu Andreea
Faculty of Marketing/Department of Marketing, Bucharest Academy of Economic Studies
andreea.s.ionescu@gmail.com
Ciceo Andreea Teodora
Faculty of Marketing/Department of Marketing, Bucharest Academy of Economic Studies
theociceo@gmail.com
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interviewed marketers said that Social Media broadcasting the message. According to
was important for their overall marketing Daedalus Millward Brown [5], each social
communications strategy. However, almost network has its own specific image, with
half of them have an experience of less than a which the company will automatically be
year with this kind of online communications associated, once it has an active account
channel. on that network. For example, Twitter is
Companies use Social Media with two associated with self-development,
main goals in mind: some wish to promote or achievements, innovation, leadership and
sell online, without having as final objective Facebook is associated with stability,
online word-of-mouth generation, and others sense of belonging and feelings.
clearly define this objective. The second rule can be put into practice
A great example where the online correctly by companies only after having an
marketing strategy objective was to generate in-depth knowledge about the groups of
word-of-mouth was the famous online prints influencers. The “Social Broadcaster” type
campaign from BMW, Audi and Subaru that (1% of Social Media users) is made up of
turned into a viral success, propagating it influencers with a very broad audience. For
rapidly worldwide. example, bloggers with a very high number
They created such a big buzz that of followers (people that read every new
afterwards a Bentley print appeared in post). According to ZeList [6], the most
response to the three. But no one knows if it influential blogs in Romania are:
is really true, as the print is considered to be umbrelaverde.ro, bookblog.ro, tudorchirila.
too obscene to actually belong to the blogspot.com. The “Mass influencers” group
company. What should be highlighted in this (16% of the Social Media users), generate
campaign is that through these series of approximately 80% of the impressions and
prints, such intense online word-of-mouth opinions about products.
was generated that even after a few years the The “Potential influencers” group (83% of
campaign was remembered by consumers. the Social Media users) consists of regular
Social networks, generating online word- consumers who can have an impact on their
of-mouth, are a very useful instrument in the family, relatives or friends.
overall marketing communications strategy. Nowadays, the Social Media instruments
Moreover, the companies should at least with most users and which are also used by
monitor and react to negative online word-of- companies in their marketing
mouth more often than offline word-of- communications strategy are: Facebook,
mouth, because dissatisfaction with a product Twitter, LinkedIn and blogs [7]. One can
spreads more quickly and generally, easily see that the first three are from the
dissatisfied consumers will vocalize these social networks category.
feelings as opposed to satisfied consumers,
who publicly express their delight with a 3. Particularities of marketing
product less frequently. communications using Social Media
instruments
2. Rules for generating positive online
word-of-mouth A particularity of the communication
using Social Media instruments refers to the
In order to generate positive online word- relationship between company size and the
of-mouth companies have to follow three time invested in social media marketing [8].
general rules [3]: Figure 1. The relationship between
To communicate a clear and interesting company size and the time spent on Social
enough message as to be spread, that Media
means to create “buzz”;
To choose and contact a relevant group of
influencers, out of the three previously
identified types [4]: “Social Broadcaster”
type, “Mass influencers” type and
“Potential influencers” type.
To choose the appropriate channels for
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Source: Stelzner Michael A., 2011 Social methods do not possess. Consumers have the
Media Marketing Industry Report, Social greatest confidence in word-of-mouth, word-
Media Examiner, April 2011, pg. 14 of-mouth spreads ideas more quickly, and the
Therefore, there is an inverse relationship information generated from word-of-mouth
between the size of the company and the time are in the context of a story, therefore allow
invested in Social Media. This could be the proper interpretation of each consumer’s
explained by the fact that a smaller company way of thinking. Last but not least, a satisfied
has a lower marketing budget, hence a lower customer shares that feeling with 3-5 friends,
communications budget. Therefore, it will try yielding an exponential spreading of the
to seize every opportunity that has a low cost. message [12].
Taking into account that using Social
Media is practically free, a small company 4. Advantages and disadvantages of using
will focus heavily on using it, especially Social Media instruments
since Social Media instruments can possibly
reach many potential customers (of course, Michael Stelzner identified the following
depending on the specific company and advantages of using Social Media
segment of customers addressed). Nowadays, instruments in the overall marketing strategy
however, large companies tend to use more of a company [13]:
traditional communication channels. The Creates business exposure;
main reason for this would be that they are Increases website traffic;
used to these channels, can predict the results Better ranking positions in the search
that can be obtained from the campaign, and engines;
the budget is not necessarily a problem for
Develops new partnerships;
them, as opposed to small businesses that
Reduces marketing costs;
have much lower budgets.
For an online word-of-mouth campaign, Generates increased turnover.
the company must target key influencers and The advantages identified by Michael
provide them with the product so that they Stelzner don’t include a series of strengths of
can try it and see its benefits. The influencers Social Media, among which the main is to
will spread word-of-mouth further in their generate word-of-mouth and to monitor it.
networks of friends. It was found that an Other advantages of using Social Media
influencer affects the views of 14 people [9]. instruments are: to increase awareness and
A survey [10] conducted in 2006 in the improve brand or company image or to create
United States showed that word-of-mouth a bond with customers and to receive
influences to a greater extent the purchase feedback from them.
intention when it comes to fast-food's, flu If not used properly, Social Media can
drugs and breakfast cereals. Conversely, also create disadvantages for the company:
online word-of-mouth influences to a greater Loss of consumer credibility. Once the
extent the purchase intent for technological company has launched Social Media
products and computers. Some of the reasons marketing, it should support a high level
identified for these specific product of interactivity with customers or else risk
categories, for which the influence on the losing credibility with consumers;
purchase intent is performed online are Generating negative word-of-mouth from
specialized sites and product ratings. customers. The company has no control
Daedalus Millward Brown urges the use over the results, thus the generated word-
of Social Media and explains, "You have to of-mouth can sometimes be negative.
go where the consumer is" [11]. As Therefore, the company can be exposed to
arguments, they claim that on social "attacks" from various dissatisfied
networks people are much more open and consumers. The propagation of negative
transparent, so they are much more likely to word-of-mouth on the Internet is more
express their true opinion about a brand. intense and lasts longer, as people’s
In essence, the marketing communication comments are being archived for a long
activities conducted on Social Media for time. However, if a company has
generating word-of-mouth have unique dissatisfied customers, it is better to know
characteristics that other communication in advance and try to solve the problems,
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6. References
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varied landscape in the coast: Slovenia, customer loyalty. Tourism experts say that
Greece and Turkey. retaining a customer / tourist costs 10 times
More interesting is how Hungary, a less than attract a new customer.
landlocked country, managed through Another role in the development of
effective management quality and attract Romanian tourism plays local governments.
more customers than the Romanian seaside. Extremely important in the context of fiscal
Lake Balaton twice attract more foreign decentralization are local, as they began to
tourists than Romanian seaside. play a decisive role in the progress / regress
Turkey, Greece and Bulgaria, are great Romanian tourism. Attribute local tax
competitors of Romania's tourism market. collection led to the creation of a relationship
Tourism development in these countries has between tour operators and local officials. In
evolved linear, without much major political many resorts, public-private partnership is
and economic obstacles. These countries virtually nonexistent and this has led to the
have developed highly effective program of perpetuation impossible for tourism
tourism development, which consisted in infrastructure quality standards: sewage over
providing tax incentives and promoting the 100 years old, demolished road
coherent state and the business involved in infrastructure, poor public services [2].
this sector, the realization that only by Regarding fiscal policy, in financial
providing quality services loyal customers terms, the state has not done much to
can be led to real development. In Central stimulate growth and attract quality investors.
and Eastern Europe, tourism industry seems The proposed alternative would be a more
to be a profitable investment in tourism is relaxed fiscal policy necessary investment in
concentrated increasingly more from western tourism, knowing that tourism profits are
countries have realized the potential new small and only sustainable long term. In
entrants into the European Union [2]. comparison, Greece and Turkey have created
One drawback in the development of a very friendly environment for investors
tourism in our country is the state of who want to develop business tourism.
infrastructure. Thus, air infrastructure does In Romania, the main weaknesses
not allow a significant tourist traffic and identified in the tax system are [1]:
many airports in country operază foreign although seasonal season lasts only
markets. Road infrastructure (streets, roads, three months, building or resort fees
highways) and railway infrastructure puts us are paid for a full fiscal year;
in a not very honorable in Europe. Few public services are paid twice
investments have been made in this area were because local government provides
always accompanied by a long series of questionable and payers are required
delays and postponements that have brought to manage their own infrastructure;
only disadvantages of tourism development excessive taxation requires tourism
[2]. operators pay 14 plants and 3 local
Another problem is the situation in which taxes (taxes are 35% of the prices of
the spas, which are disastrous consequence hotels and restaurants);
management. State buildings, which tourism tourism profit rate is 2-6% annually,
experts say should be replaced rather than one of the lowest in the economy.
refurbished, lack of basic road infrastructure Hence tax fraud, a phenomenon
to support tourism development and to realized at the level of authority. In
encourage travel, tourism stagnation are Turkey and Greece, taxes are 4-5
causes of Romania. times lower than in Romania because
In terms of quality tourism services, the authorities have realized that
tourism privatization latter had negative besides tourism sector can develop
consequences of this view. Thus, the same and related areas.
employees can be found everywhere careless, Reducing corporate tax Romanian
poorly stimulated by wages offered and a economy could positively influence the
chronic lack of respect for the tourist. With Romanian tourism. Starting a consistent set
privatization, the owners have realized that of financial measures to support the economy
this is probably the most important tourism in general and tourism in particular, would be
marketing, with important consequences on
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3. Conclusion
4. References
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Isac Nicoleta
University of Pitesti, Faculty of Economic Studies
nicoleta.isac@upit.ro
Antoniu Eliza
University of Pitesti, Faculty of Economic Studies
eliza.antoniu@upit.ro
Over 37 3
1. Introduction Between 12
32 - 37
Motivation is a major component of Between 11
27 - 32
management and a subject of the most Between 9
commonly treated in the literature, so it 23 - 27
captures a wide variety of approaches, often 0 10 20 40
contradictory.
Number of employees
In terms of the concept underlying the
management, we distinguish two major Source: the conducted study
meanings of motivation: motivation narrowly
and motivation in broad sense [1]. In terms of
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0 10 20 30 40
0 5 10 15
Number of employees
Number of employees
90,00%
80,00%
70,00%
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Disagree Partially agree Agree Totally agree
Question 1: "I am happy (a) my current This shows a very pronounced orientation
salary package". Percentages are divided half towards a stable income employees and less
for those who are not or partially satisfied, than directly proportional to revenue results.
half for those who agree and totally agree, So we can say that employees focus on
which means that the package is not business rather than the acceptable limit to
sufficiently motivating salary but not a make a greater effort to generate higher
critical factor, demotivator. revenues.
Question 2: "I think a percentage of sales Question 3: "I believe recognized my merits".
benefiting motivates me to sell more". Percentages obtained "partially agree" and
Opinions are divided in similar proportions to "agree" are the majority demonstrating that
„partially agree, I agree and I totally agree”, employees feel that they are recognized
which means that from this point of view the merits only a small extent and measures
company motivates its employees to sell should be taken by management in this
more by providing percentages, but this regard, adopting various methods to remedy
system is preferred only half of employees. this situation would lead to a better
atmosphere in the company and increase employee motivation.
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Question 4: "I think my major contribution to Question 14: "Internal communication firm
our company". Most of the 35 employees providing me all the information I need to
agree with this statement understanding their perform their duties". The answers to this
role and considering the value brought by question are quite positive, mostly entirely
each of them as important. Company agree. Note that the organization provides
management should focus on motivating employees the information they need.
policy that encourages employees to submit Question 15: "I think they are well integrated
increasingly more effort and work more into the work team". Employees are
efficiently and thus bring better results. considere well integrated in the team they
Question 5: "Preparing for that I received so work.. There are also less positive opinions. \
far helped me better fulfill my Question 16: "I believe that the responsibility
responsibilities". They have given major they have at this time correspond my
score for "partially agree" and „I totally training". Opinions are divided, the majority
agree”.The general impression is that the percentages are divided between variants
training they have received to date is "disagree", "partially agree" and "agree"
insufficient to carry out the specific instead very few employees are in full
responsibilities with maximum efficiency. \ agreement 4.17%.
Question 6 and 7: "I think i work enough" Question 17: "In the future I want to take on
and "I think my results so far are good new responsibilities in the company".
enough". Ratings majority are "partially Employees generally believe that assuming
agree" and "totally agree". This shows that new responsibilities in the company is one of
employees believe they can work harder and the opportunities that could benefit in the
better but not sufficiently stimulated. future.
Question 8 and 9: "That part of an Question 18: "Atmosphere is pleasant work".
international network makes me more Responses to this question show that
motivated to reach my goals" and "Being employees do not have a very good opinion
part of an international network makes me about the atmosphere at work.
want to be increasingly better ". Most Question 19: "I feel safe at this job". Most
employees are perfectly willing, which employees feel safe workplace current,
means that their needs according to Maslow's majority proportion in this category are
hierarchy of needs in terms of membership divided between "totally agree" and "agree".
are largely covered. Question 20: "The equipment that i use make
Question 10: "I helped with ideas / solutions me feel safe at work". Opinions are quite
solved new problems / have streamlined the divided, the percentages are relatively close,
work of company / department". Employees but with a positive tinge. There must be seen
responded with "agree" and "strongly agree" the equipment with problems and be solved
in almost equal proportions, proving that because can occur cases of injury to
their views on the contribution to the employees, which would prevent the use of
company is good or very good. This that employee a period of time.
combined with the opinion expressed by Question 21: "I know I can count on
employees on non-recognition of their merits colleagues when there is a problem". Based
is a major motivation. on feedback we see that teamwork is one of
Question 11: "I think the reward received for the strengths of this company.
ideas / new solutions is satisfactory". Question 22: "My coordinator directly
Opinions are divided between the 4 variants, encourages me and stimulates me to become
proving that sometimes their opinion about better". Most of their department
their impact on the Company can not see in coordinators stimulates employees to become
the results and rewards. better.
Questions 12 and 13: " I work in a united Question 23: "I am perfectly satisfied with
team " and "Team in which I work is the work area (eg, sales, engineering, and so
distinguished by solving team". Most on)". Most employees are relatively satisfied
employees agree and totally agree, but there or satisfied with the area in which they work.
are reserves and possibilities for Others are less happy or unhappy.
improvement. Question 24: "There are people in the
company where I can go to for advice when a
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problem is beyond me". Employees in the motivational systems that could be used in
company believes there are people who can the future of this company and that could be
help them solve overshadow problems. fully effective.
Creating an internal communication system Question 1: "My results/results of others
where experienced people to be encouraged stimulate my competitive spirit". 90% of
to share the information we have, so we can employees believe that networking stimulates
eliminate the stress of lack of information. the results of other employees.
Question 25: "I think i have chances of Question 2, 3 and 4: "I want to be the best in
advancement". There are many opinions for my area firm", " I have to prepare better to
employees "partially agree" and those who "i be better "and "The experience that i’ll gain
am agree", which leads to the idea that the will help me in the future be the better ".
chances to promote exist, but all depends by Most responses is a "totally agree". Both
employees. employees and companies tend to invest in
Question 26: "My opinion is taken into their long term development.
account". Employees generally believe that Question 5, 10 and 11: "I think I am
their opinions are taken into account. Paying sufficiently prepared in the field that i work "
more attention to this aspect can actually and "I believe that employees still need
improve the working atmosphere and hence training". Most employees are considered
employee motivation. sufficiently well trained in the field working.
Question 27: "I think i work more than they The vast majority of employees see training
are paid". The general opinion is that provided by the company as a benefit, the
employees work more than are paid (about employee understanding the impact of this
52.08% "totally agree"). long term.
Question 28: "I think my company is Question 6: "I think I deserve a higher
interested in long-term development". Most salary". Most employees believe that
employees do not believe their company is deserves a higher salary.
interested in developing long term. This Question 7 and 8: "I think my expectations
result corresponds with the views about job from my coordinator should be expressed
security. more clearly" and "I think my expectations of
Question 29: "I believe that my offer the coordinator should be expressed more
experience in versatile fields". clearly". 85% of employees believe that the
Approximately 60% of employees responded expectations of coordinator of them should
with "partially agree" and "agree", the rest be expressed more clearly, and only 50%
being only partially agree with the statement. believe that their expectations of the
Usually this is the case in a small company, coordinator should be expressed more
where positions are highly specialized, an clearly. Deduce a complaint from employees
employer must cover several administrative to the coordinator directly in terms of
or operational needs of the company. communicating expectations, but the second
percentage has a quite pronounced dose of
3. Analysis in the future subjectivity. A good manager is primarily a
good communicator.
Includes questions aimed at obtaining
information about the desires, methods and
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Based on the survey results we observed Following the research we carried out
using motivational theories in a lesser or and the conclusion we reached, our proposals
greater: are:
- Theories of hierarchy of needs (Maslow's - Organizational culture - employees
theory, ERG theory - Existence, relatedness, expressed their desire to be involved in
Growth) of all 5 categories of physiological defining and developing solutions to improve
needs are satisfied and and this is not in business activities. These lead to a higher
totality. exist in the light of these theories an employee satisfaction and full realization in
obvious need manifested by satisfaction of the work environment and the development
other needs;. of environmentally firm, market
- Theories, „X'' and ,,Y'', manifesting both the consolidation and not the least performance.
positive and negative direction. The majority - Training employees - our suggestion is that
of employees have no motivation to act manager with the company to define human
according to theory X, remaining at the level resource manager in the company training
of the Y or oscillating depending on the plan and career development for employees.
situation from theory to another, thus not The plan must be permanent (long-term) and
having business continuity and no results. relevant for both business and employees.
- Dual factor theory - we propose that they - Atmosphere and communication - our
should focus on the development of suggestion would be that they provide a clear
employees, increasing recognition of their definition of the above and stimulating
work in various ways, and encouraging employees in these respects.
initiative and responsibility. - Recognize - this was clearly expressed by
- Theory acquisition success - although employees as a suggestion for improvement.
employees want to maintain a high level of Following the survey we found that
performance that is encouraged sporadic but employees want a permanent recognition. At
not enough by firm. this point merits recognition is achieved
- Theories of human capital - our suggestion through share sales. Our suggestion is that
would be that they always benefit from the general manager and responsible human
training through a program of continuous resources show transparency in granting this
training and well established on the basis of percentage, but to use and other methods of
employees' personal and professional needs, financial and non-financial motivation (like
to have a career development plan for each giving rewards , congratulations employee in
employee in order to allow both personal meetings or meetings of the company).
development and change ritual activity.
- Theory expectancy - is manifested through References
the desire of employees to get new
responsibilities and to try tasks increasingly [1] Nicolescu O., Verboncu I., Fundaments of
complex. On the other part we can see that organizational management, Ed. Tribuna
employees are already highly motivated to Economică, Bucureşti, 2002
evolve, expectations or better probability of [2] Robbins S.P., Organizational behavior
concepts, controversies, applications,
success is high if they will find inner strength
Prentice-Hall, New Jersey, 1998
to fight for their fulfillment. Here a role it has [3] Bogathy Z., Manual of organizational labor
direct coordinator that can grant or deny this psychology, Ed. Polirom, Iaşi, 2004, p. 230
occasion of employees (depending on the [4] Candea R, Candea D., Managerial
direction the company). It can direct, guide comunication, Ed. Expert, Bucuresti, 1996
each employee receiving new responsibilities [5] Pânişoară G.,Pânişoară I.O., Human
or changing old ones. Resources Management, Ed. Polirom, Ediţia
Employee motivation theories presented II, 2005
above are not fully implemented and some [6] Revista Cariere, Anul 4 – Nr.74, 2006
not in a manner consistent reason which leads [7] www.psihologie.tripod.com
[8] www.unibuc.ro
to a low motivation of employees of this
Internal date of Next Automobile
company is reflected in the results obtained
in daily activities in employee performance.
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evolution progress of the company’s market marketing mix, taking into account the fact
and in relation with the potential that it has that a large part of these, especially small
and the structure of the components of the companies reduce their marketing budget
marketing mix. The periods of economic without getting ready, by elaborating a
crisis affect two major components from the strategy of managing crises, through which
process of purchase with major influences on they may be able to revaluate opportunities
the entire market and especially on the when they appear. This makes that, in a
marketing strategies: the purchasing power period of crisis, the companies which are
and people’s behaviour[1]. better organized, from the point of view of
The purchasing power affects the volume marketing, to dominate the competitors less
and the structure of the consumption, being responsive to change.
in advantage the products with a high degree The crisis is synonymous with the drop of
of utility, with reduced prices and payment consumption, the compression of economy
facilities. People’s behaviour modify the and the lowering of the volume of sales. In
criteria of evaluating material goods and this case, any organisation will re-evaluate
services, these appreciating more the quality the reference criteria, and one of the best
and the reliability than the image benefits and measures would be the market share. Even if
being less available to invest in new the volume of sales drops, even if their value
products, which were previously unknown. drops, even if the profit drops, only one
Also, for the products of long use or those measures remains unaffected by the crisis
which are not of strict necessity, the decision and that is the market share. And when the
of purchasing is postponed [2]. crisis ends, the fact that our organisation has
Consumers, especially in a period of maintained its market share will be translated
crisis, become more careful, get more in a considerable bigger volume. But this
informed, look for alternatives. There passed market share cannot be maintained through
the time of those who offer and think they lack of activity and perspective, it is directly
have a large market outlet. The market linked to the marketing activity too.
becomes more fragmented, competition loses Lately, more and more companies
its location, value becomes a very relative decided, when recalculating their budgets, to
concept, trust does not represent a guarantee reduce the expenses for advertising and
anymore and the only element which offers marketing. But specialists in communication
trustfulness is the creation of a direct relation say that advertising is the one which bring
with customers. the biggest volumes of sales in difficult
In a period of crisis, one of the first periods and the companies must take
measures adopted by the companies’ advantage of the opportunities from the next
management was the reduction, sometimes periods. Advertising in a period of drop in
substantial, of the marketing budgets. economic activity should not be seen as an
Promoting the business is essential for any obstacle for profit, but as a collaborator to
enterpriser, and neglecting the profit. It is thought that the raise of the
communication actions may lead to market share brought by advertising can be
significant losses on a long-term. In a time of made with a more efficient cost policy during
crisis, the companies must adopt concrete recession. A solution to pass over periods of
strategies so that their message can get at the crisis is involving consumers in the
market domain to which it addresses. marketing activities of the company.
Now it is fashionable the so called “crisis” In a period of crisis, the company must
marketing. In crisis situations, not investing focus more on the customers’ needs, that is
in marketing or reducing severely the budgets why the present customers are more
is as if you got ready to make your way out important than the potential customers, the
of the market. higher importance being given by the fact
that it is less expensive to invest in
2. Marketing Strategies programmes of making these loyal than
attracting new customers.
The influences of the economic-financial The use of marketing research in a period
crisis on the marketing activity of companies of crisis, a period in which consumers
are obvious in all the components of desperately look for a better offer, cheaper
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products, is a necessity [3] . More companies efficient. The winners of the crisis are not
use reductions, coupons and discounts as a necessarily the big companies, but those
strategy of attracting customers in this period which applied strategic and competitive
and the majority of clients admit that these principles.
methods have a certain effect, motivating The main measures recommended to be
them to buy. Of course that in order to attract taken in sales in a period of recession or
customers, the advertising messages must be economic unsafety, are related to:
congruent with the recession. a precise application of rule 80:20 in what
Because this period of crisis causes a regards customers, an identification of the
battle of perceptions and not of the reality, most profitable on the short-term and an
what matters is to make the difference and to assignment of resources for them;
place products in a good manner, in order to ignoring unprofitable customers on a
combine perception with reality. Marketing short-term; a partnership with powerful
places not only the product or the service but companies;
the entire business. A difference through redefining the objectives and the task of
innovation imposes the prices desired by the the sales force, establishing a way of
company even in a period of crisis. The remuneration in accordance with the
permanent highlighting of the competitive accomplishment of tasks;
advantage, especially if the company rethinking the role of the sales force:
manages to maintain a balance in the price encouraging the salesmen who produce
policy, to maintain the consumers’ interest, new customers and reducing costs with
has a good image and it preserves its those who just manage a customers’
profitability. portfolio;
If a company did not early infer the reducing the number of specialists or
rearrangement of the market in which it technical experts and using them just to
develops its activity and it did not elaborate a serve customers who bring significant
plan B for a period of crisis, then most incomes to the company;
probable it is not ready to operate with the reducing the costs of serving customers
appropriate strategy or tactics. The sudden with at least 30% by identifying
changes that interfere in the consumption, in distribution channels with reduced costs
the competitors strategy, in the providers’ as the Internet, by reducing the number of
attitude and in the customers’ payment employees in this domain or by using
possibilities make the rethinking of future temporary employees;
orientation to be the number one priority of eliminating services which are not clearly
all companies. required by customers and offering
The selection criteria to choose marketing services which are paid;
strategies in a period of crisis are the
personnel deductions in all the
following:
departments, from those employees with
efficiency criteria (the level of strategic low performances[4].
costs; the duration of recovering strategic In the distribution policy, reducing the
investments, the level of revaluation of budget may be considered a mistake. In the
existing resources; financial needs context of the economic-financial crisis, a
attracted by the capitalization of the better analysis of the market is necessary in
strategy); order to identify the consumers’ needs and
risk criteria (the degree of strategic risk; desires, their reactions, so that the companies
the degree of competitive risk; the can revise their portfolio, so that they can
stability of the strategy in aleatory adapt their marketing strategy for an efficient
conditions of the market); use of the budget [5]. The companies which
opportunity criteria (strategic opportunity; apply efficient marketing measures, in the
the level of anticipating results). distribution policy, in moments of crisis, can
Most companies reacted on the raise their sales, while those who choose to
international economic crisis by reducing reduce the budgets do not outrun a quite
expenses, postponing investments and a small growth.
severe diminishment of advertising budgets.
These measures did not always prove to be
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An important role belongs to the sales The direct marketing specialists are
force which can successfully contribute to the useful especially for attracting customers
adaptation of the company’s activity to the and maintaining them. In an unstable
turbulent environment from a period of crisis economy, companies cannot rely on the
to diminish the consequences of the crisis on
recognition of the brand and on the mass
the marketing policy.
In the product policy, in a period of crisis
marketing to survive. Indeed, direct
it is not a favourable moment to launch new marketing, both in its traditional form and
products or packages. Looking for new in his integrated one, is essential for
niches for new products or promoting them targeting consumers’ specific needs,
are elements of the strategies for a growing offering impulses and formulating the
economy. most efficient solutions for small and
The central point of the product strategy medium companies.
in a period of crisis must be the customer. In The direct marketing tools correctly used
periods of crisis, the losers will be those may sustain the business of a company in a
organisations which think they know better time of crisis. In the present economic
what and how they must sell, and not the context, more than ever, a promotion
consumer and there will survive only those campaign must aim at obtaining a direct
which will learn to listen to their customers. answer, a clear action from the person to
In the future, business will be of two types whom the message is presented. The direct
– on the Internet or none. The presence on marketing tools come to meet the need of
the Internet ensures to business a global palpable, measurable results. The direct
spread. The online shops represent a cheaper marketing is, by definition, a mechanism of
source of goods; these appeared before the promotion which allows you to send clear
crisis and their main trump is represented by messages to an identified audience [6].
the low costs of maintenance, this having a
direct effect on the costs of products. At the 3. Conclusions
same time as the beginning of the economic
collapse from the start of the year 2009, the In crisis situations, not doing marketing is
online shops were affected too so a lot of as if we were getting ready to close the
them were closed and those which remained business. Lastly, not the budget is our
had to adapt themselves. problem, but rather how efficient we use it,
The online marketing is an advantage in a how we pursue the media channels and the
time of crisis for those who use it in an approaches which will allow us to
intelligent way. Consumers get more communicate more efficiently with our
informed before buying online a product or a consumer, which will ensure us that we know
service. Most people make important our consumer and that we respond to his
decisions on the purchase (budget, brand, expectations, that we have managed to start a
product, shop) after having been informed dialogue so that the sale of our products and
online. services can actually respond to a well-
The price in an online shop is smaller than identified need.
in a classical shop. This thing is still not Panic is the first negative effect which the
enough in a period of recession because even economic crisis brings in the consumers’
before the crisis the price was smaller. In consciousness. Advertising agencies must be
order to attract the customer it is necessary to flexible and capable of adapting to the new
resort to certain marketing methods. changes from consumers’ attitudes or
The present economic conditions forced behaviour.
consumers to become much more selective Now when the markets are becoming
when they choose where and how to spend stable, we need a professional and
their money, that is why the marketing sophisticated marketing. The companies
campaigns must be applied in a creative which will cut the marketing budgets will
manner. Making a partnership directly with a create the premises of failure.
marketing company proves to be less In a period like the present one, what
expensive and more successful than the matters is to promote yourself as much as
alternatives from inside the company. possible in order to send your message and
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your offer to the customer. A reorientation of [3] Roche, C., Ducasse, P., Liao, C., Grevler, C.,
the resources assigned to a channel to another A new world order of consumption, 2010,
channel is normal, but the complete giving up www.bcg.com.
to promotion is a major mistake. [4] Lubkeman, M., Pralle A., Tsusaka M.,
Duranton S., Harsaae J., Izaret J-M.,
Not all consumers are affected at the same
Collateral Damage. Function Focus.
level by the financial crisis. The good Responses for Marketing and Sales in the
marketing is that which understands the Global Downturn, 2009, www.bcg.com.
problem which the consumer has to solve. [5] Rhodes, D., Stelter, D., Collateral damage.
There is a need more than ever to know how Confronting the new realities of a world in
the customer redefines his value and how he crisis, 2009, www.bcg.com.
reacts in case of a crisis. [6] Drayton, B., Direct marketing for everybody,
Business may remain profitable during Publishing House: Publica, Bucharest, 2008.
economic crises too when: these focus on a [7] Fisk, P., Marketing genius, Publishing House
gradual development; we focus on regaining Meteorpress, Bucharest, 2008.
lost customers; we manage to obtain new
customers deriving this benefit from the
customers who already exist; we get involved
into cheaper promoting strategies.
A successful marketing is led by a
marketer who understands very well from the
point of view of the business the problem
which the consumer has to solve [7]. In a
period of crisis, you must know how the
consumer redefines his value and how he
reacts in a case of crisis. The consumer is
looking for durable products, which offer
safety and whose proportion price/quality is
perceived as being very good. Market
researches are essential in a period of crisis:
we must devote enough time to get in touch
with consumers, to find out their points of
view, their suggestions and to study directly
the way in which they interact with the
product or the service of the company.
A mistake that a company can make in a
period of crisis is that of searching only
temporary solutions and abandoning any
strategic measures on a long or medium term.
We do not have to forget that an economic
crisis usually has a quite long duration and
even if the market is much more unstable as
usual, we do not have to neglect the
objectives on a long or medium term. The
company must have a vision and the horizon
of this vision must get over the estimated
period of crisis.
References:
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Juganaru Ion-Danut
"Ovidius" University of Constanta, Faculty of Economics
juganarudan@yahoo.com
Juganaru Mariana
"Ovidius" University of Constanta, Faculty of Economics
mjuganaru@univ-ovidius.ro
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shale gas exploitation has become cheaper and are used for fracturing. It is also mentioned
a growing percentage of these resources has that these new regulations will be approved,
become recoverable from rocks. Currently, in very likely, after several months of public
16 U.S. states, companies continue to extract consultation.[10]
shale gas using hydraulic fracturing. In the The size reached, currently, in the U.S.,
same time, in other ten states there are local regarding shale gas exploitation can be put
moratoria required for temporary not using this both on the account of substantial deposits that
method, applied until the completion of some it holds, and also on some particular aspects:
detailed studies regarding the impact of the areas where shale gas reserves exist, are
hydraulic fracturing on the environment. We easily accessible and far away from human
should also mention that, at present, certain communities, population density is lower
states like New York, Maryland and New compared with the European states
Jersey have banned hydraulic fracturing populations, so there is a smaller impact; the
temporarily (even though this method has been gas deposits are located at lower depths than
greatly improved through intensified research those in Europe; there are fewer
in this direction) and Vermont could follow environmental regulations, and the owner of a
their example. [8] land has all the rights for the subsoil mineral
In these states, shale gas exploitation was reserves, compared to Europe, where the
banned after, in November 2011, the reserves, in most of the countries, belong to the
Environmental Protection Agency of U.S. state. [9]
(EPA) published a 190-page report showing Referring to the importance of shale gas,
that hydraulic fracturing is responsible for the American professor, John Deutch, quoted
several incidents of massive pollution and by CNN Money, said: "In the 50 years I have
earthquakes and will conduct a thorough study worked in the energy sector, shale gas
in this regard which will be ready by the end of revolution is, by far, the largest event that I
2014. [1] witnessed. [2]
On the other hand, at the end of 2012,
South Dakota and Alaska joined the group of 2. Europe’s situation
U.S. states that have updated their regulations
on oil and gas exploitation, answering in this For Europe, it is estimated that shall gas
way, to the issues raised at a large-scale by deposits could be valued between 18,000 and
hydraulic fracturing. 35,000 billion cubic meters (located in
Therefore, on 18 December 2012, the Norway, Sweden, Netherlands, Austria,
Council of Environment and Mineral Poland, France, Ukraine, England, Romania,
Resources of South Dakota (a subdivision of Czech Republic etc.). But the production of
the Ministry of Environment and Natural conventional gas in Europe will drop in the
Resources of the State) has proposed some future, and demand will continue to grow,
changes to its regulations on gas and oil, by which will mean the need of increasing
which the Council wishes to have more imports at a level of 450 billion cubic meters
information regarding the fluid chemicals used by 2035. [11]
in the technology of hydraulic fracturing and In these conditions, shale gas exploitation
also wishes to solve the problem regarding the could help reducing imports (mainly originated
restoring of unused production wells. [10] from Russia), improving EU supply security,
On December 20, 2012, the Commission even much smaller prices, thus ensuring,
for the Conservation of Oil and Gas in Alaska theoretically, better conditions for economic
has proposed the add of an amendment to its growth and social welfare.
regulations on hydraulic fracturing. The Poland is the first european country which
amendment contains several requirements, launched a real industrial exploitation project
such as a mandatory analysis, before and after on the long term, being determined to
the drilling, of the water used for fracturing substantially reduce its dependence on the
and a compulsory isolation of the fluids that russian gas.
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It is assumed that Poland would hold large licenses were issued to mining companies
reserves of shale gas that wants to use to Chevron and Shell, but neither here were made
reduce its dependency on imported natural gas significant steps, so far. [8]
from Russia and build gas power plants to At the 43rd World Economic Forum in
replace the coal as the primary source for Davos, on January 24, 2013, a contract which
electricity. The National Institute of Geology valued about $ 10 billion was signed between
of Poland considers that the potential of shale Ukraine and Shell company, regarding a
gas reserves is valued at 1,920 billion cubic project for the development of the exploitation
meters, which means that Poland would be the of shale gas. Holding the 4th place in Europe
third European country after Norway and the on shale gas reserves, Ukraine hopes to
Netherlands, reason for which, so far, were develop this resource, overcoming the
issued 109 licenses for shale gas exploration, controversy regarding hydraulic fracturing
for some large state-supported companies technology and to reduce its dependence on
(PGNiG, PGE, Tauron, Enea, KGHM Polska energy from Russia. The signed contract
Miedz), and some giants like Chevron, should allow Ukraine to partially use its own
ExxonMobil, Eni, Marathon, 3Legs Resources gas resources. The production expected by the
and BNK for perimeters of Baltic Sea area. authorities to be achieved is of about 10 to 20
But, so far, it hasn’t been reached yet, the stage billion cubic meters of gas per year in the next
of shale gas extraction. 15 years. Ukraine imports large quantities of
Officially, ExxonMobil announced its gas from Russia, and in the recent years, the
withdrawal, because the results of the first gas supply was effectively stopped by
prospects were not satisfactory. "Commercially Gazprom, with the intention to determine
speaking, we couldn’t identify a constant and Ukraine to agree to pay higher prices for the
justifiable flow of hydrocarbons in the two imported gas, with economic consequences
blocks that we have drilled near Krasnystaw, which have reverberated across the entire
Lublin Basin (South-East) and around Europe[10].The relatively low population
Siennica, Podlasie (East) Basin", said Adam density may be a factor able to promote the
Kopysc, spokesman for ExxonMobil development of shale gas deposits in Ukraine.
Exploration and Production company. [4] France was the first European country to
On the other hand, the French company, ban hydraulic fracturing. The moratorium was
Total, decided to take the full license owned by imposed in 2011 and still remains in force, but
ExxonMobil which ensures 40% of the mining the discussions in this regard are likely to be
rights on Chelm and Werbkowice perimeters, resumed. France is among the richest European
and aims to continue the research and begin a countries in this kind of reserves, the shale gas
commercial exploitation, if the results will be potential being estimated by the U.S.
convincing [10]. To remember is that the Department of Energy (DOE) to 5,300 billion
geology of the country is different from the cubic meters. This estimated volume is more
american one and it may require more than 21 times higher than the reserves from
advanced technologies to extract the gas.[5] Lacq area, Pyrenees-Atlantiques region, where
Poland is the first European country gas were extracted for half of century. But, in
currently working on the elaboration of a the absence of exploratory drilling by
specific tax framework for companies which hydraulic fracturing, method banned in France
extract shale gas. A special charge of shale gas by a Law introduced on July 13, 2011, this
will be introduced in 2015 as a "mechanism evaluation cannot be validated [10]. It has to
that will ensure that poles obtain fair income be specified, that in France, three-fourths of
without discouraging the investors and the the consumed electricity is generated by
production," said Jan Vincent-Rostowski, nuclear plants. On February 26, 2013, The
Minister of Finance of Poland. [3] Academy of Sciences held a debate attended
In Ukraine, where it is estimated to exist the by several representatives of scientific
fourth largest deposit of shale gas in Europe, research, and among the topics that were
valued at about 1,200 billion cubic meters, discussed was also included the one on shale
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gas, more accurate, it has been questioned the gas, according to an evaluation. should be
problem of the ignorance of these resources exploited. But, Madam Delphine Batho, the
that exist in the subsoil of France. This Minister of Ecology, Sustainable Development
conference was held following the publication and Energy, declares herself, on the contrary,
of a report called "Scientific research face to reluctant regarding the public funding of
face with the challenges of energy", conducted studies that would subject alternative hydraulic
by the Academy of Sciences on January 14, fracturing techniques. "I think oil companies
2013. This report is criticizing the have the means to finance their own research
government’s policy in the field of on drilling techniques", she declared. [10]
unconventional hydrocarbons, and stresses that The point of view of the Minister makes
"decisions were made in haste, without clear that there is no question about raising the
opening the file". By this phrase, the institution moratorium on hydraulic fracturing technique
targets directly the decision to maintain the for shale gas in France. However, the question
moratorium on hydraulic fracturing even in arises whether it can be found a way to raise
what is concerning the scientific research. The the moratorium for scientific purposes and, in
conclusion, after the debate held in February particular, for a research that would solve the
2013, is that France is not aware of the environmental problems which appear from
resources stored in its subsoil. "For a hydraulic fracturing technique, the only
developed country like ours, we have very technique used so far. [10]
poor knowledge of our subsoil," said Mr. Great Britain, even if it was among the first
Nicolas Arnaud, hydrogeologist at the countries which gave licenses for shale gas
University of Montpellier. It is believed that exploitation, in 2011, it banned their extraction
the political and economic decisions are not through hydraulic fracturing, after two
taken wittingly and may not therefore be earthquakes occurred in a region where were
justified as scientific arguments. conducted this kind of activities. But, in 2012,
Regarding the shale gas, there are opinions Edward Davey, the Minister for Energy and
that the estimated data on the reserves, made Climate Change of the UK, has revoked the
by the Department of Energy of the United decision and announced that hydraulic
States, do not match, withouth any doubts, fracturing presents no risk. "Shale gas is a
with the reality. These can be either higher or resource with significant potential for the UK.
lower than the estimates, but for scientists, the It could contribute significantly to our energy
problem is a different one: to know if, one day, security, reducing the country's dependence on
they will be able to give, finally, a true gas imports", said Davey. "My decision is
evaluation, scientifically founded, about shale based on evidence. It comes after studying in
gas reserves in France. This answer can not be detail the latest scientific research and advice
given as long as hydraulic fracturing technique of professionals in this area", said the british
is forbidden, even for scientific research. [10] official. [3]
But the debate on unconventional In Ireland, Enegi Oil company announced
hydrocarbons in France is far to come to an on February 21, 2013, that they have taken
end. Within the National Assembly, the steps at the Oil Business Department of the
Minister of Productive Recovery unveiled on Irish Government, to obtain a license to
February 19, 2013, that he is for the explore shale gas. This initiative comes after
technological experimentation on the French the successful completion of its own program
territory. The Minister would like to entrust to of research, "Clare Basin Licensing Option".
a public company the research on shale gas Thanks to this program, the company would
extraction techniques. However, he stressed have received an award in February 2011 and
that the experiments should be conducted since then, the work to gather and evaluate the
under the control of the government and technical data has intensified, analyzing,
parliament. Even former Prime Minister, simultaneously, new geological data for the
Michel Rocard believes that the wealth of formulation of a provisional estimate of the
France, of over 5 billion cubic meters of shale potential of the area. The results of the
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program revealed that the whole area has a associate to perform about 30 drillings in
strong potential in terms of shale gas. Switzerland. [10]
Furthermore, the conducted studies have Recently, Germany declared that its state is
allowed the discovery of a region located in a favorable regarding shale gas exploitation and
seismic zone with significant shale gas that authorizes its extraction through hydraulic
resources. In November 2012, Enegi Oil group fracturing, but must be considered, however,
declared that an independent report estimated certain conditions. Therefore, the German
that the resources explored in "Clare Basin government banned the practice in certain
Licensing Option" program were evaluated at protected areas, while the Ministry of
101 billion cubic meters of shale gas, of which Economy and the Environment prohibits
33 billion in areas with high potential. The fracturing in areas of sheltered waters and
General Director of the company, Alan Minty, mineral springs. At the beginning of February
made the following statement: "We believe 2013, the Upper Chamber of the German
that the surface covered within “Clare Basin Parliament (Bundesrat), representing the 16
Coverage Option” program has a great federal states of Germany, declared its
potential. Based on this idea, it is necessary the agreement with the adoption of a resolution by
beginning of broader explorations. For this which to require the environmental impact that
reason, we applied for an exploration license shale gas exploitation could have on the
that would allow us to perform our work and environment. This step aims to ensure people
prove the potential that this region owns. [10] and remove the idea that all natural gas
In Switzerland it was created a favorable extraction techniques are harmful to the
current regarding shale gas. The Vice president environment. [10]
of the Anonymous Society for Swiss Oil Also, the Environment Minister, Peter
(SEAG), Patrick Lahusen, recognized the Altamaier, is for the banning of hydraulic
energy revolution that currently the first world fracturing in hydrologic protected areas to
economic power (the U.S.) experiences, and he avoid any popular movement.
is convinced that Switzerland holds too, its Aware of the energetic potential of shale
substantial reserves of shale gas. "We face a gas and the wealth of its subsoil, Germany
true revolution. All theories according to gave a larger spread to the debate on shale gas
which, on our planet, there are reserves of gas and is preparing to adopt a law which targets
for only 20-30 years, may be forgotten. We regulations about shale gas extraction, without
have supplies for at least 200-300 years", he banning it. The German government is
said. In Switzerland, Patrick Lahusen created currently in the process of adopting a law to
several companies and he stays at the origins regulate activities related to shale gas.
of 8 of the 18 exploration wells on Swiss According to the estimates of the Federal
territory, in the last 50 years. Convinced that body of Geophysical Sciences, Germany
Switzerland has in its subsoil huge resources of would have shale gas reserves of 1.3 billion
natural gas, he believes that he could start cubic meters. [10]
exploring using the recently discovered These resources, once exploited, could allow
techniques, once the Swiss government will Germany to become self-sufficient in this
give endorsement: "There have been incidents regard and would contribute substantially to
and pollution. But recently, new regulations the security of supply and energy price
were introduced to reduce the environmental stability. Moreover, Germany is considering a
impact. Currently, a new method of fracturing gradual ending in the production of nuclear
the rock is available, without using water and electricity till 2022.The use of shale gas shows
other chemicals. It uses propane in liquid form, great importance for Germany, given that its
which, after fracturing, goes up to the surface consumption is estimated at 86 billion cubic
in gaseous form, where it is stored and can be meters per year. [10]
reused. "It is intended that SEAG and the In Bulgaria, the withdrawal of the license to
American company eCorp International explore and exploit gas (awarded in June 2011)
for a perimeter of 4.398 km2 located in the
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north-east of the country, occurred after some compliance with the environmental regulations
protests of environmental organizations and make shale gas exploitation uneconomical,
people, regarding the risks involved by the even if those resources would be in the subsoil
working method. The decision of the Bulgarian of the country. [8]
government is motivated by the lack of data to It is expected that, after the first successful
ensure environmental protection in the area of shale gas exploitation will be seen in some
exploitation, as a result of using the method of European countries, the reluctance of other
hydraulic fracturing. [5] countries regarding the use of hydraulic
Regarding Romania, although the American fracturing may diminish, but the situation will
company Chevron obtained the concession in 3 continue to be very different from one country
blocks in Constanta county and another one in to another. Therefore, the European
Vaslui county, and the government has not Parliament, after adopting two resolutions, one
extended, at the end of 2012, the moratorium on the industrial effects of shale gas
established in the same year regarding the exploitation and the other one analyzing the
exploration and exploitation of shale gas, the impact that hydraulic fracturing has on the
prospecting works are delayed because of environment, recommended to its member
some protests of the local population. In one countries to be cautious and to consult the
town and two villages from Constanta county, population in this thorny problem.
on December 9, 2012, were held referendums
on this topic, which were not, however, References
validated, due to the poor turnout of residents.
[1] Dumitru, Elena, „How shale gas change the
Conclusions global market of energy”, March 5, 2013
(Http://www.adevarul.ro)
[2] Dumitru, Elena, “How shale gas became five
If in the U.S., the successful exploitation of
times cheaper in the U.S. than in Europe”,
shale gas led to a transition from the status of March 6, 2013 (www.adevarul.ro)
importing country to the status of exporting [3] Dumitru, Elena, “Who makes money and who
gas country, as well as to a real process of re- flees away from shale gas”, March 6, 2013
industrialization of the country, by relocating (Http://www.adevarul.ro)
from Europe, to the North-American continent, [4] Gouzik, Astrid, "Gaz de schiste : ExxonMobil
of various energy-intensive industries, not the quitte la Pologne" , June 18, 2012,
same can be said about the situation in Europe. (Http://www.usinenouvelle.com)
In Europe, so far, there is no country where [5] Pirvoiu, Claudia, “In Romania, Chevron
shale gas exploitation has already started. But Company cand start shale gas exploration
works. In Bulgaria, remained without license
there are countries whose governments and
because of environmental reasons”, January 17,
parliaments are for the use of hydraulic 2012 (Http://www.hotnews.ro)
fracturing, as extraction technology of shale [6] Wald, Matthew L., „Study Says Natural Gas
gas (Poland, Ukraine, Turkey), as are others Use Likely to Double”, NY Times, New York,
that have totally banned the use of this June 25, 2010 (Http://www.nytimes.com)
technique, not only for exploitation, but also [7] ***“European worries - Sorting frack from
for prospection and even for the scientific fiction”, The Economist, July 12, 2012
research of shale gas reserves (France), or (Http://www.economist.com)
preferred to establish temporary moratoria, to [8] ***“Frack to the future. Extracting Europe’s
analyze better the environmental impact. shale gas and oil will be a slow and difficult
business”, The Economist, February 2, 2013
In Western-European countries, the
(Http://www.economist.com)
progress is slow in this regard, with the [9] The Report of the Committee of Experts in the
exception of Great Britain, which recently public hearing on „Exploration and
raised the moratorium on shale gas mining. exploitation of shale gas in Romania. Where
Not only France, but also the Netherlands and to?” (Http://www.alma-ro.ngo.ro)
Luxembourg have suspended the prospective [10] Http://www.legazdeshiste.fr)
works, while in Austria the costs of [11] Http://www.naturalgaseurope.com
830
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Juganaru Mariana
"Ovidius" University of Constanta, Faculty of Economics
mjuganaru@univ-ovidius.ro
Juganaru Ion-Danut
"Ovidius" University of Constanta, Faculty of Economics
juganarudan@yahoo.com
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In this context, this paper aims to develop and economic agents bills, and further, they
the SWOT analysis elements, for an accurate can reduce the production costs and the
understanding on what would imply the shale selling prices of their products; new jobs and
gas exploitation / exploration in Romania. growing incomes. All this facts could be
premises for the regional and national
1. Identifying opportunities in shale gas development of Romania.
exploitation
2. Strengths of the shale gas exploitation
Even if the issue of shale gas shakes the
entire world, they are, for now, an economic There are opinions that state that Romania
reality only in North America, where, after would have important deposits of shale gas,
more than 15 years, there have been clear following the argument that gas trapped in
successes. rocks is found where it exists or it existed
Therefore, currently, it is considered that and were extracted oil deposits. Knowing
the Americans provide over 30% of the gas that Romania, was in the early twentieth
consumption from unconventional resources, century, the third world producer of oil, it can
compared to only 3%, as it was 10 years ago. be assumed that the shale gas resources are
One effect of the development of shale gas considerable. [2]
extraction was the strong cheapening of gas Hydrocarbon production in our country
on the American market, which came to cost, dates back to 1857 for crude-oil and to 1909
currently, five times less than in Europe. In regarding natural gas. It can be stated that
April 2012, prices have fallen to $ 70 per Romania has tradition and experience in this
thousand cubic meters, due to higher activity.
production, this rate being the lowest from
the last 10 years. Meanwhile, the Europeans 3. Which would be the possible threats /
were buying Russian gas with more than 400 risks that may arise from the exploration /
$ per thousand cubic meters. exploitation of shale gas?
Shale gas exploitation led to the increase,
with 50%, of U.S. natural gas production, The aspect that creates the greatest
generated more than 600,000 new jobs and debates and the highest rejection of
contributed with more than 20 billion dollars population from different countries, targets
to the local budgets of some U.S. states, environmental risks that can arise from the
showed Derk Magness- project leader for the working technology (hydraulic fracturing)
development of natural gas from gas-bearing used for the exploration and exploitation of
clays of Chevron company, in Central and shale gas, and also because of possible errors
Eastern Europe- at the World Energy and human mistakes.
Council, Central and Eastern European As a brief description, the working
Forum for Energy (FOREN- June 17, 2012). method, in the case of shale gas, comprises
Also, the natural gas from gas-bearing clays four steps: (1) a vertical well is drilled until
provides heating for 56 million of American the shale layer is reached (less porous and
households, generates a fith of the U.S. less permeable rocks), (2) the drill then runs
electricity needs, creates raw material for horizontally through shale formation, (3) the
fertilizers, plastics, etc. Given the recorded fractures created are kept open though the
results so far, the U.S. has proposed to invest, high pressure injection of water (90%), with
during the period 2013-2018, 400 billion $ in sand (9.5%) and other chemicals (acids,
shale gas production, leading to a number of chlorides, salts, etc.0.5%) enabling
5 million jobs created in this field. [4] circulation gas flow, (4) after the gas is
The opportunities of ecological extracted, the pressure is released and the
exploitation of shale gas in Romania would water returns to the surface. [8]
be: a higher gas production, which would This process could generate several
satisfy the increasing domestic demand; the potential dangers, such as: it could affect
reduction of imports from Russia; groundwater; the methane could escape into
independence and safety on the energy the atmosphere and potency, so, the effect of
market; the cost reduction of gas, which will global warming; it could generate
be reflected in the decrease of population earthquakes; it would occupy large areas of
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land, disturbing transportation and several major gas leak into the environment
community life; it could affect population and groundwater were contaminated with gas
health. and fractionation fluids.
Being aware of the existence of views and
The risk of water pollution fears that HF can contaminate groundwater,
Derek Magness, project leader for the
(a)The extraction of shale gas requires the development of natural gas from gas-bearing
use of large quantities of water (between clays of Chevron company, said on June 17,
2300 and 4000 cubic meters) in rock 2012 (FOREN) that using two established
formations, in order to recover trapped gas at technologies-horizontal drilling and
a distance of one or two kilometers (or more) hydraulic fracturing, natural gas from gas-
below the surface. Regarding the required bearing clays can be developed in a safe
quantity of water, API (American Petroleum procedure regarding environmental
Institute) says that it is lower than in the case protection. Hydraulic fracturing method, used
of other trade or recreational activities. For to open the pores of reservoir-rock, is
example, in 2009, in Pennsylvania, all performed at a depth of 3-4 km., below the
hydraulic fracturing activities used only 5% aquifers level. Besides this natural
of the volume water used for recreational protection, Chevron company practices
activities such as golf and skiing. Paris water stipulate that the well used at drilling should
consumption, is on average, 550.000 cubic be composed of several layers of steel and
meters of drinking water per day compared cement, to prevent any possible
with a consumption of 10,000-15.000 cubic contamination. [3]
meters required for drilling. [1]
(b) If drilling is not done properly, there The risk of air pollution
could be the risk of groundwater
contamination and the risk of discharge of Air pollutant emissions may occur due to
wastewater or chemicals. [8] the transport of heavy trucks and pressure
Water can be contaminated with aggregates, as well as from the manipulation
chemicals used in hydraulic fracturing, as of fluids that contain dangerous substances
well as with waste water from fractured or and which can evaporate into the air.
crossed formations, which contain heavy So far, studies show that shale gas wells
metals (As, Hg) or radioactive particles. [7] pollute some more than conventional gas,
On the other hand, The American because there are being used more wells, and
Petroleum Institute says that the studies hydraulic fracturing consumes a lot of energy
conducted by the Environmental Protection from diesel engines. Thus, the HF process
Agency (EPA) and The U.S. Water obviously generates CO2 and other air
Protection Council have confirmed that there pollutants. It could be said that shale gas is as
is no direct link between the hydraulic harmful for the climate as it is the
fracturing operation and the impact on exploitation of coal. [3]
groundwater. As an explanation, it is According to the U.S. Environmental
reminded that wells are drilled at a distance Protection Agency, hydraulic fracturing
from those for the drinking water , the process used for shale gas exploitation is
fracturing is performed very deep, far below considered to be the second source of
the level at which there are aquifers, and greenhouse gas emissions in the U.S. after
when a well is drilled, it is coated with layers the coal-fired power plants. [5]
of cement and steel which play the role of a The biggest fear is related to possible gas
barrier between the well and the drinking leak outside the probe by accidental leakages
water. Official concerns regarding the impact in pipes, if there are cracks, or in valves and
on environment and health induced by HF other equipments. Methane is considered a
(hydraulic fracturing) appeared in 2010, very dangerous gas and emissions are
when the EPA (Environmental Protection difficult to measure. United States
Agency), at the request of the American Environmental Protection Agency (EPA) has
government, decided to study the impact on developed and published a study which
drinking water and public health. It is showed that shale gas emissions are 2.2%,
mentioned, this time, that in U.S. were found which means sligthtly above the level of gas
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emissions from conventional sources. It also Regarding the danger generated by the
states that the level of emissions will decline transportation, an observation of the
as a result of environmental practices that European Parliament comprises the following
prevent gas leakage or burning, and that are comparison: if for a platform with eight wells
currently applied in most of the new wells. there are required 4000-6000 transports
EPA is working on the most comprehensive within six months to ensure the functioning
study so far, in terms of all aspects of shale of wells, to ensure the functioning of wells
gas and which aims to reduce public fears. for a typical commercial center there are
[5] needed about 15000-25000 transports within
a year of operation.
The risk of potential earthquakes In terms of landscape destruction, Bruce
Niemeyer, one of the regional directors of
Because of hydraulic fracturing, which Chevron, considered as a remarkable aspect
means injecting large volumes of wastewater, related to shale gas mining “the absence of
it is believed that the seismic movement may anything remarkable going on” above the
intensify. A study of The U.S. Geological ground. Marcellus area from Pennsylvania
Survey shows that there has been recorded (U.S.) did not look at all like a field of gas
an increase of frequency and magnitude of wells, like anyone would expected to look.
surface earthquakes felt in the U.S. and [6]
associates this change due to the drilling It can be said that currently, the impact on
activity for oil and gas. [7] local communities in Europe may be lower
Regarding the risk that the HF produce than it was in America at the beginning of the
seismic movements, Mr. Derek Magness said activity of this industry, and, in the future,
that Chevron is conducting complete seismic may still diminish.
studies to place the operations at a safe
distance from tectonic faults; the seismic Risks on health and quality of life
activity of the area is closely supervised
thoughout the operations using acoustic Hydraulic fracturing method realizes the
sensors and other established technologies, deep pumping of large quantities of water
which allows to precisely identify the extent (90%), sand (9.5%) and additives (0.5%) to
of cracking in the reservoir rock. [3] break the layer of the rock and release the
gas. Another big concern is related to these
The risk of noise pollution, occupying land additives, which contain 600 chemicals
areas, affecting transport and community (instead of 4, the number of chemicals used
life to exploit conventional gas), some of them
considered carcinogenic. The dissatisfaction
Another risk of shale gas is the of the population is also connected to the
occupation of large areas of land required aspect that it is not communicated clearly
for digging wells, parking and handling what chemicals are being used, invoking
heavy equipment, space for surface issues related to the protection of a particular
equipment, gas processing facilities and their "trade secret." [7]
transport, accessible roads. This could lead to Exploiting companies only resume to
the removal of some areas from agricultural mention that these chemicals, in their
circuit, land desertification, degradation of majority, are found in common products that
wild flora and fauna, landscape destruction, we already use (such as cosmetics and home
transport congestion, destruction of roads cleaning products). But, according to a list
and driveway network, bridges, noise provided by The New York State, we find
pollution. that among the 750 chemicals identified by
Specialists state that hydraulic fracturing is a the researchers, there are: 58 substances
noisy process, but that lasts only five days, with problematic properties , 6 substances
after which the gas will start to flow. Then, that require special attention because of their
the trucks, the portable offices and the potential effects they may have on humans
containers are taken to another site of and on the environment (acrylamide,
operation. [5] benzene, ethyl benzene, naphthalene,
ethylene, tetrasidin, isopropilbenzen /
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Cumene), 17 substances are considered toxic was introduced a moratorium, and in England
to aquatic organisms; 38 substances are and other countries were conducted extensive
classified as toxic to human health, 8 public protests against this method of
substances are considered carcinogens, 7 working. (HotNews.ro). For some time, in
substances are classified as mutagens, 5 are some of these countries (England, Ireland,
classified with negative effects on the Germany), the situation has changed, in that
reproductive function. many fears were removed as a result of
U.S. Department of Health, found, after scientific studies conducted and it was
analyzing a study on hydraulic fracturing, decided to exploit shale gas.
that this procedure can be done in a safe In Romania, even if the temptation of
manner in New York State area. The study politicians and Romanian specialists in
details the potential impact of hydraulic exploration / exploitation of shale gas is high,
fracturing method for a variety of there is a strong opposition from the
environmental factors, starting with the population and various environmental
impact on water resources, to the impact on organizations, generated by the concerns
air quality. It was also analyzed the potential regarding environmental protection and
impact on the socio-economic field and on safety of life. The lack of complete
the quality of life. It states that, in order to information and the lack of dialogue with the
avoid potential hazards, it is necessary to population on the benefits and threats related
comply with the regulations adopted during to the prospect of exploration / exploitation
the last years. of shale gas appears to maintain this
situation.
4. Weaknesses in shale gas exploitation For the population, in particular, we
believe that extensive actions are needed for
It is estimated that shale gas reserves in a properly and complete information, from
Romania would be located at depths greater competent and responsible bodies/
than those in the U.S., which would mean individuals regarding all the issues related to
higher costs. Also, the perimeters of shale gas.
Romania, which have already received the
operating license, are located in populated References
areas and this aspect concerns the inhabitants
in terms of health and safety. Moreover, in [1] Chitour, C. E., "Gaz de schiste : Miracle ou
Dobrogea region, these blocks are close to calamité écologique?", Mondialization.ca, 27
the seaside resorts and some important sights, janvier 2011,
(http://www.mondialisation.ca/gaz-de-
which questions the development of touristic
schiste-miracle-ou-calamit-cologique).
activity in this area. [2] Dumitru, Elena, „How shale gas change the
global market of energy”, March 5, 2013
Conclusions (www.adevarul.ro).
[3] Magness, Derek,„Now is the time to discover
Shale gas exploitation has proven to be a Europe’s potential of natural gas”, June 17,
real success for the U.S. economy. More and 2012, World Energy Council, Central and
more countries, consider, at present, that the Eastern European Forum for Energy- FOREN
exploitation of these resources can bring (http://www.chevron.ua/documents/en/news/F
economic and social benefits, which is why OREN_Keynote_en.pdf).
[4] Wald, Matthew L., „Study Says Natural Gas
they decided their exploration.
Use Likely to Double”, NY Times, New York,
At european level, it is found that the June 25, 2010
attention and the attraction for shale gas (http://www.nytimes.com/2010/06/25/busines
differ from the U.S., but differ from one s/energy).
country to another and from one period of [5] ***“European worries- Sorting frack from
time to another. Because of the controversy fiction”, The Economist, July 12, 2012
regarding the technology of work- hydraulic (http://www.economist.com).
fracturing, in some european countries like [6] ***„Fracking- Landscape with well”, The
Bugaria, Ireland, France, Czech Republic Economist, July 14, 2012
shale gas exploaitation has been banned, in (http://www.economist.com).
the German state of North Rhine-Westphalia
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Kostyshyna Tetyana
Human Resources Management and Labour Economics Chair, Poltava University of Economics
and Trade,
tkost2007@yandex.ru
Abstract Results
The article reviews intellectual and The education reforms conducted abroad
innovative factors of education development. are focused on current and future needs of
These factors influence on wage system and society, the efficient of resources using
increase it competitive. including directly educational systems.
Ukraine can not and must not remain aloof
Key words: education, wage system, from these global trends. A comprehensive
competitive, consumer cooperative. and deep modernization of the education
J.E.L. classification: A23, J30, F 12 system - is imperative educational policy of
Ukraine, its main strategic direction.
Strengthening the role of globalization in
Introduction. terms of innovative components of economic
development of countries, inextricably linked
The importance of higher education in the with the development of information
economics of Ukraine as a major factor in the technology, determines the need for highly
formation not only of a competitive skilled labor force characterized by the
economics, but also a new quality of society prevalence in the composition of its functions
as a whole is growing. elements of a higher, creative order.
Therefore the problem of supporting the First of all, it concerns the security of the
development of education and science is labor force, able not only to perceive
deeply social and refers to the priorities of accumulated by previous generations the
social development and also directly linked volume of empirical and theoretical
with the national interest, improvement of knowledge, assimilate it, but also to
quality of life and national security. systematically raise the level of
However higher education should not be a competitiveness, trying to apply a creative
mirror of social and economic problems, but approach to the use of the knowledge gained.
rather a tool to overcome them, a window It should be noted that in the creation of a
into the future. So in most countries of the competitive environment activation of the
world where knowledge has become the innovation processes of social development
driving force science and education are given led to increasing the role of education and
priority. In the Materials of final board training in the development of human
"Higher Education in Ukraine – European resources.
dimension: progress, problems and The increase in the quality requirements
prospects" it indicates that we have to create of the labor force with the development of
conditions for the proper positioning of the modern technology requires constant
dignity of the teacher, scholar, intellectual, improvement of knowledge and skills of the
rather than passively observe the individual during working life to ensure its
marginalization of Education [1, p. 1]. productive employment, occupational
The article aims is to identify the main mobility and competitiveness.
factors of education development and find First of all, the implementation of the
out their impact on competitiveness of wage tasks will require the inclusion of the
system. individual in the system of continuous
education.
Improving the quality of educational
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employment in the new integrated makes it necessary to review not only the
economics. technology of education, but also directly to
It should be taken into account that the its content, clarify the optimal structure of
high standard of education serves an knowledge for all age groups. It is considered
important factor since the country's essential to ensure a regular updating of
competitive advantages. First of all, it is the knowledge with the acceleration of
need of information and intelligent technological change processes in order to
technologies in the educational process in prevent the rapid aging of the least mobile of
order to manage the modern methods of the the content of education. Developed countries
educational process, significantly improving pay considerable attention to the growth of the
the quality of training of highly skilled educational component of human capital,
specialists. since employers are interested in preparing
At the same time providing access to the skilled and educated professionals to high-tech
world achievements of science and manufacturing. That is why they help finance
education, the development of the education educational institutions, scholarships paid the
market increases competition between most talented students, provide training in the
universities in both domestic and foreign workplace. Attach the so-called "investment"
markets, as those who do not provide a in young professionals, which provides
sufficient quality of education can not employer means that it is potentially interested
compete. in fixing this specialist industry.
Experience shows that competition - is an For its part, the government is also
effective factor in the development of the interested in constructive cooperation with
education system, which makes it necessary employers, as corporate payment for
to implement a set of measures to overcome education allows to redistribute public funds
the disadvantages and consequences of self- more task-oriented and reduce the financial
isolation, improve the system of education at burden on the state budget In a number of
the level of modern requirements, the countries implementing programs under
implementation of its information, the which employers who provide temporary
introduction of innovative technologies in jobs first graduates are now provided wage
practice, the development of new methods subsidies.
and criteria assessment of knowledge, It is considered appropriate to the
overcoming the contradictions between application of incentives for the employers to
domestic and world level education, joining provide permanent jobs for young
the national system of education in the global professionals. In particular, some countries
educational space. have a support to employers who offer
In the transition phase of the accession of permanent jobs for young professionals,
Ukraine to the World Trade Organization, especially in the case when, during the
which involves growing openness of the practical training, the trainees successfully
national economics, there may be significant show their talents and realize their
transformational change. This primarily refers knowledge.
to the need to ensure access to national In our opinion, it is necessary to take into
education market foreign institutions that have account the dominant influence of educational
developed material and technical base and factors on the validity of the formation of a
financial resources to support the introduction competitive environment in the labor market
of new methods of educational process [4, competitive pay system and human
p. 33]. Consequently, this leads to increased development. This degree of adaptability of
competitive pressure on the education market education and training to dynamic changes in
by foreign institutions, while among the supply and demand conditions in the labor
internal factors of increased competition in market, and to provide labor, professional
this market should be allocated, first, the qualification options that meet the needs of
deterioration of the demographic situation in social and economic development of society,
the country, increasing the number of are the determining factors of growth
educational institutions offering educational competitiveness - capacity of human
services. resources. Functional characteristics of
The transition to a postindustrial society education in the formation of innovative
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society is not only "... ability to provide those although the salary of the workers may be
learners accumulated in previous years the low.
knowledge and skills but also the ability to Wages in the present socio-economic
perceive and use in practice, new scientific situation is the most important factor in
ideas, technological tools and production shaping the attitude toward labor, ultimately
methods to form in the innovative abilities, determines the state of motivation to work.
initiative and enterprise" [5, p. 34]. In most cases, young uncompetitive in the
Inadequate response system of vocational labor market because of experience,
education directly related to the maintenance specializing almost absent, and a limited
of the production sector, the changes in the number of vacancies in the business can not
employment structure in transformational get it. To enable a first job graduates of
change led to the preservation of old patterns educational institutions directed the
Training Workers. Vector selection experts Verkhovna Rada of Ukraine of the draft law
shifted from prioritizing work related to the on quotas of jobs for graduates. However, the
implementation of their inherent creative effectiveness of this law is to be determined
features, jobs that do not require high-level by the extent to which employers received
qualifications. Thus, according to a sample training requirements caused by the quality of
survey of the population of economic activity educational services and the level of interest
conducted by the State Statistics Committee of of employers in hiring members of this
Ukraine, much of specialists with higher category of employment.
education are not forced to work in the Educational services in the system of
specialty (70% of those in the physical, consumer cooperatives in Ukraine are
mathematical and engineering, 46% - provided by 23 educational institutions of first
biological, agronomic and Health Sciences level of accreditation and 2 educational
76% of technical experts in applied sciences institutions of fourth level of accreditation.
and engineering) [6, p. 7]. Ultimately, this The need to ensure competitiveness of the
leads to gradual depreciation of their national labor force in the face of increasing
accumulated knowledge and skills of integration in the global economy stimulates
professional skills, and thus weakening the the formation of a competitive wage system.
competitiveness of the workforce. The quality of the latter undoubtedly related
The instability of the current situation on to the educational level of workers, in
the labor market relates primarily to the particular the system of consumer
specifics of the present stage of transformation cooperatives.
of economy of Ukraine, which appears due to Given that, in our research, uncompetitive
the lack of a clear correlation between the remuneration system both in terms of level
level of education of employees and amount and mechanism of formation is the
of income received by them. Current income disincentives influx of skilled labor in the
is the result of differentiation of restrictive system of consumer cooperatives, it is
state fiscal policy, since the state, acting as necessary to qualitatively improve the
employer-monopoly in some segments of the training of students in economics.
labor market, established a monopoly low The increase in training of specialists in
prices for high-skilled labor. this sector is stipulated by higher prestige of
However, please note that, even if the obtaining these specialties and a guarantee (at
manufacturing and technological innovations the current time) to obtain a sufficiently high
dictate the feasibility of employment of and stable income.
additional workers, employers may refrain The task of increasing competitiveness and
from it if the marginal cost of hiring such consumer cooperatives in particular,
excess. This may make the problems of the necessitates improving training engineering
education system, because on the one hand, it professionals to meet the needs of modern
signals that there is market demand in certain information technology. With the
trades and trying to adapt the size and intensification of innovation processes need to
structure of its production in accordance with ensure the growth of the country's
them. On the other hand - graduates can not competitiveness, particularly of consumer
find a permanent job in the specialty, because cooperation in technical and technological
of their employers' costs of hiring too large, fields, increasing the relevance of training of
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Source: [7]
So, it differentiates from the post- using both managerial debate and artificial
bureaucratic firms, that had been consecrated neural networks. The managerial debate
in the specialized literature, by its way of should be use in order to identify strategic
perceiving the employees (who become factors, to build scenarios, to develop
knowledge workers which are concerned strategic answers and to formulate the future
with developing themselves and ensuring that strategy. The artificial neural network should
the future generations will have access to the be use for determining the future evolution of
same quantity of natural resources), the the elements that may influence firm’s
multiple categories of objectives (focus on performance.
economic, social, environmental and
knowledge issues) and the implementation of 3. Methodology
programs that bring benefits to all the
stakeholders [8]. The research goal was to identify the main
Starting from these, when a strategy is elements of a managerial early warning
developed several aspects must be taken into system which is based on an artificial neural
account. The managerial early warning network and designed especially for the
system is the one that may satisfy this need sustainable knowledge based organizations.
since it combines the internal with the In order to achieve our goal, we aimed to:
external perspective, the subjective approach identify at least one sustainable
with the abstracted one. knowledge based organization in the
The managerial early warning system is a business environment from Iasi and
strategic instrument that allows protecting Madrid;
company’s competitive advantages by determine the most important factors that
scanning, analyzing and interpreting the may influence firm’s strategy;
factors from the micro- and macro- conceive a managerial early warning
environment [9], [10]. It may be based on a system based on an artificial neural
managerial debate [9] or it may use an network;
artificial neural network [10]. The first one use the developed system for anticipating
will be subjective and time-consuming while the threats and opportunities that may
the second one will be abstract and will appear during 2013 – 2015, base on the
necessitate additional efforts in order to events that succeeded in 2007 – 2011.
increase managers’ implication in strategy’s We used an ethical approach and we
implementation. As a consequence, we combined the advantages of using the
assume that a managerial early warning documentary study and in-depths interviews
system should combine these approaches in
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with the abstract character of the artificial 0.8 and a target error of 0.01.
neural network. Based on the results offered by the
The documentary study and the in-depths artificial neural network we determined the
interviews focused on identifying sustainable main threats and opportunities that may
knowledge based organizations in the appear during 2012 – 2015 for each of the
business environment from Iasi and Madrid. selected firms. The results for 2012 were
According to data published on the Chamber used for an external validation. In other
of Commerce website, there are 72 potential words, in March 2013, we presented our
sustainable knowledge based organizations in assumptions for 2012 to the managerial team.
Madrid and 49 in Iasi. Then we analyzed the Each of them confirmed it and their answers
annual informs of each of these companies. served as a validation procedure for the
The units of analysis were represented by the managerial early warning system’s structure.
characteristics of the sustainable knowledge The results that we had obtained for 2013
based organization, namely: multiple – 2015 were used in the Spanish company in
categories of objectives (economic, social, order to develop scenarios and establish the
environmental etc.); planning on short, future strategy.
medium and long term; open organizational
culture; investing in human resources; 4. A viable strategic instrument for the
collaborating with other firms and reduced sustainable knowledge based organizations
number of first line and middle managers. In
the end, we noticed that only 23 firms could For each of the selected companies, we
have been described as “sustainable had developed a managerial early warning
knowledge based organization” (16 were system that aimed to identify the
from Madrid and 7 from Iasi). opportunities and threats that may influence
During 15th of July 2012 – 1st of February company’s profitability during 2013 – 2015.
2013, we have contacted the managers of According to this, we followed three phases:
these companies in order to establish a predicting (scanning the environment),
meeting. This had two goals. First of all, we diagnosing (identifying the future threats and
wanted to check if the firm has an internal opportunities) and reacting (developing
knowledge base and the activity is organized scenarios and building the strategy).
around interdependent teams. Secondly, we First, we had analyzed the evolution of
wanted to present them the possibility of factors that were describing the socio-
participating to the development of a demographic environment (population’s
managerial early warning system. Only 9 distribution by education, wage and age etc.),
managers have accepted the meeting. In the economic environment (inflation, interest
end, 5 firms met the last two conditions and rate, foreign investments, economic growth
only 3 (1 from Madrid and 2 from Iasi) rate, employment rate, taxes etc.),
accepted to participate to the development of technological environment (investments in
the early warning system. research & development, product and process
Further, we conducted an in-depth innovation, technology absorption etc.), legal
interview with the managerial team from environment (efficiency of the legal system,
each company and we identified the main market deregulation, protection of the
factors that may influence their strategy. intellectual property etc.), political
These were presented in a “cause-effect” map environment (corruption, transparency of the
and reunited elements from the micro- and decisional process, government efficiency
macro-environment. etc.), profitability (incomes, costs, profit
We collected data regarding the evolution etc.), competition (number and characteristics
of each of these factors, during 2007 – 2011, of the most important competitors, the degree
from internal (annual reports) and external of industry’s atomization etc.), customers
documents (Eurostat, World Bank databases). (satisfaction, company’s dependence, lost
In order to estimate the future value of these, customers etc.), human resources
we developed an artificial neural network (satisfaction, education, retention etc.) and
using Allyuda NeuroIntelligence. The main services / goods (quality, price, time and
characteristics of the artificial neural network costs generated etc.). Each of these was
were a learning rate of 0.7, a momentum of discussed during the managerial debate. In
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Besides, we have noticed, that no matter the competitors and clients level will
the size of the firm or the domain of activity, generate a couple of opportunities while the
this is vulnerable to economic phenomenon. transformations that will succeed at the
This generated most of the identified political level will stimulate the appearance
opportunities and threats (Table 2). We also of some threats.
noticed that the changes that will occur on
Table 2. The opportunities and threats that will appear during 2013 – 2015 for the selected
companies
Opportunities Threats
slow economic growth; reducing the foreign direct investments;
reducing the taxes; slow growth of corruption;
Firm A
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small, medium and big companies from Iasi area, firms are usually distributing the
and Madrid, from production and services indirect risks (except for the ones that are
area. In other words, what happens with the offering exclusive goods or services or the
national economy is affecting the firms and, ones that are satisfying a special need).
on the same time, is affected by their If we strictly refer to the 10 most
behaviour. Therefore, the foreign direct important elements that influence the
investments are occupying the first position profitability of the sustainable knowledge
while industry’s atomization is placed on the based organization, we observe that the
fourth place. highest influence is exercised by the
Another important aspect is represented economic environment, customers and future
by the level in which the firm is depending human resources. The investments in
on a reduced number of clients. If this education guarantees company’s access to
dependence increases then the organization certain value and quality of knowledge. This
becomes more vulnerable. It has to deal with will be used in order to satisfy clients’
the elements that are affecting it directly and demands (it will stimulate innovations
also with the ones that are affecting its regarding firms’ products and / or processes)
clients. Any event that will cause reducing and it will generate added-value in the
the profitability of its clients will be economic environment. Therefore, this
perceived as an indirect threat since it will ranking is highlighting the double
also diminish its own financial performance. perspective from which knowledge is
This result may have been generated by the analyzed in a sustainable knowledge based
fact that all the analyzed firms were organization. It’s a purpose in terms of
operating in the business to business area. creating and disseminating and also an
Therefore, the financial problems of their instrument when it comes to increase
clients have a powerful impact on firm’s company’s profitability and to ensure its
performance. In the business to customer short, medium and long term market value.
Figure 2. The most important elements that may influence sustainable knowledge based
organization’s profitability
Last but not least, we identify that 28 into account not only the internal factors that
factors were common to all the analyzed encourage knowledge creation, dissemination
companies. More than 50% of them were and use (namely, organizational culture,
referring to intangible aspects of the business human resources’ satisfaction etc.) but also
environment (like, efficiency, bureaucracy the external factors (like, investments in
etc.) which reflects the importance that education, bureaucracy, efficiency of the
knowledge creation, dissemination and use legal system etc.).
have it for the sustainable knowledge based
organization. In other words, when a strategy 5. Conclusions and further research
is developed for the sustainable knowledge
based organization, managers should take Through this methodological approach,
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Abstract 1. Introduction
The Brand represents the most valuable The Employer’s Brand is the virtuous
assets of a company, so brand management is circle thereby increasing employees'
an important new activity in companies. motivation leading to an increase in
Although normally concentrate their employees' performances, that is also
branding efforts towards developing new conducive to improvements in client's
product and corporate trademarks, branding relationship, and increases the brand's net
can be also used in Human Resources, more value ("brand equity"), having an effect on
precisely in Resource Management. employees' motivation and attracting suitable
Having a value-centered culture of the people to work within the organization. They
"employer of choice" kind means having somewhat justify the usefulness of the
under control a few key features: internal Employer’s Branding through the benefits
and external good reputation, identity, that the relationship employee -client - a
image, corporate social responsibility, perspective that emphasizes on the internal
leadership, empowerment, personnel policies marketing and on the relational marketing.
and strategies. Each and every of these [1]
features is critical and must be integrated
within the brand's global vision. 2. Literature review
Investigating of the position of employer
of choice are directly proportionate to Employer’s Branding is essentially a three
respecting ethical principles in influencing phases process. Firstly, when a firm develops
employees, regardless of the adopted style. a concept of particular value it is potentially
and practically offered by employees. That
Keywords: Employer’s Brand, Brand proposition adds value that represents the
Strategy, Employer’s Branding, Brand core message conveyed by the Employee
Equity. Brand. It is essential that this valuable
J.E.L Clasification.: M31 proposition come from a comprehensive
audit of the characteristics that make the
company an ideal place to work. Once the
proposition of value was established, the
second step in the Employer's Branding is
represented by selling it on external markets.
The third phase of Employer’s Branding
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implies achieving the brand promise, made in In the context of employer’s marketing,
order to attract recruits to the company, the Employer’s Brand can be regarded as a
incorporating part of the organizational set of distinctive images about a potential
culture, and in order to keep the existing employer, as they appear in the mind of
ones. In other words, that latter step means target groups – potential employees[6].
selling the Employer’s Brand on the internal
market [2]. 3. Objectives and method
Categorizing companies on these criteria
is not neglected in Romania neither. Every This paper has importance for all because
year, the Capital magazine makes a top 100 the Employer’s Brand is little talked of in
employers based on the criteria: workplace Romania, although intensely used in
conditions, communication within the branding and human resource management in
workplace, salary and benefits package, the international environment. Indispensable
professional formation quality [3]. as a survival and development instrument of
A study undertaken by James O'Rourke economic and non-economic Romanian
IV, on 3,000 subjects, shows that 60% of companies, Employer’s Brand has a huge
those had knowledge of behavioral abuses by potential from the perspective of sustainable
bosses. The reasons they don't make them development, competitiveness and the
known are: the company's lack of interest in diminishing of labor migration from
such issues, lack of protection (anonymity, Romania companies to other European
protection against reprisals, etc.) [4] companies. Moreover, the case study is a
Therefore the leaders' ethic must be a novelty, being the first notable to have
relevant ingredient for the connection recorded results.
between the reality of the brand and its This paper analyses how personal brand is
promises. perceived by applying a series of cross
There are five steps to be taken for questionnaires, in the sense that in 119
developing a powerful Employer’s Brand [8]: companies were applied two types of
- understanding your organization questionnaires to be able to identify
- create a convincing brand promise for the employer’s and employees’ opinions. From
employees who reflect the brand promise to each of the 119 companies, 5 questionnaires
the clients were applied for employees .
- develop standards for quantifying the The 119 companies in which the study
achieving of the brand promise. was conducted are located in the North-East
-rallying all the practical people to support Region, private-capital companies with more
and strengthen the brand promise and, than 50 employees. The questionnaire
- execute and measure. addressed to the employer was filled in by
A powerful Employer’s Brand lowers the the HR department manager and the
recruiting costs of the company as, due to questionnaires addressed to employees were
their loyalty, the organization does not need filled in by persons hired at least as middle
to replace existing employees with new ones, management from various departments. The
the retention costs being lower than questionnaire was applied from April 2012 to
recruiting and induction costs. What is more October 2012.
relevant, a high level of involvement makes
employees work better (enhances efficiency) 4. Results
and be more careful with company assets.
Successive studies showed that employees’ The first questions of the questionnaire
strong involvement makes the company addressed to the employees respondent to the
grow. Young companies that are riding the study refer to the identification of the
waves but do not have a consecrated name, company size and of the activity field, and
may use Employer’s Branding to attract the the answers are illustrated in figure 1 and
people fit to make the company grow. A figure 2. Thus, the majority of the companies
particularity of the Employer’s Branding in participating to the study have from 100 to
such companies is that it is developed 200 employees (approximately 80% of
organically and often it is “a direct extension them), and 10% have even more than 200
of the founder’s personality.” employees, which gives relevance to this
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questioned about the criteria they take into that obtained roughly equal values in the
consideration to state about a company that it survey: the economic-financial results, the
has got Employer’s Brand. The results, as statute the company has got on the labor
they are shown in figure 5, indicate that the market as well as the accomplishments
company’s reputation is the first aspect they (product innovation, available marketing).
think at, followed closely by 3 characteristics
Fig. 5 – As a candidate for employment, on what criteria do you decide that a company has
got or not the Employer’s Brand?
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Mihai Daniela
University of Piteşti, Faculty of Economics
dana_mihai2005@yahoo.com
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Romania
Hungary
Bulgaria
Turkey
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Women Men
Higher Higher
Undergraduat Undergraduate
Total education education
e education education
(university and (university
(including (including
post- and post-
students) students)
university) university)
Total subjects 400 123 134 48 95
Income < 1,000 RON 102 57 8 22 15
Income 1,000÷ 1,500 RON 85 38 27 13 7
Income 1,500÷ 2,000 RON 114 27 44 10 33
Income 2,000÷ 2,500 RON 61 1 32 2 26
Income > 2,500 RON 38 0 23 1 14
Users of electronic
59 10 22 13 14
commerce
Income < 1,000 RON 5 2 1 2 0
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This is the distribution according to the Income < 1,000 RON 5 97 102
null hypothesis (according to which the Income 1,000÷ 1,500
RON
12 73 85
subject’s level of education does not
Income 1,500 ÷ 2,000
influence his/her quality of e-commerce RON
31 83 114
user/non-user): Income 2,000 ÷ 2,500
RON
8 53 61
Table 5. Distribution by level of education Income > 2,500 RON 3 35 38
according to the “null hypothesis”
Total 59 341 400
Total (Source: made by author)
Non-
Aij Users absolute
users %
value The distribution according to the null
Undergraduate hypothesis (the income does not influence the
education
(including
25 146 171 42.75 subject’s quality of e-commerce user/ non-
students) user) is shown in table 7.
Higher
education
34 195 229 57.25
(university and
post-university)
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Total Total
Non- Non-
Aij Users absolute Aij Users absolute
users % users %
value value
Income < Women 38 219 257 64.25
15 87 102 25.5
1,000 RON
Men 21 122 143 35.75
Income 1,000
12 73 85 21.25 Total 59 341 400 100
÷ 1,500 RON
Income 1,500
17 97 114 28.5
(Source: made by author)
÷ 2,000 RON
Income 2,000
9 52 61 15.25 (32 38) 2 (225 219) 2
÷ 2,500 RON calc
2
= + +
Income > 38 219
6 32 38 9.5
2,500 RON (27 21) 2 (116 122) 2
Total 59 341 400 100 + = 3.12 (5)
21 122
(Source: made by author)
It seems that the influence of income level
(5 15) 2 (97 87) 2 (12 12) 2 on the quality of e-commerce user/ non-user
2
calc = + + is the strongest, followed by the
15 87 12
segmentation criterion "subject’s gender."
(73 73) (31 17)
2 2
(83 97) 2 The insignificant influence of the variable
+ + + +
73 17 97 "education level" could be explained by the
(8 9) 2 (53 52) 2 (3 6) 2 inclusion of students in the category of
+ + + subjects with secondary education.
9 52 6 The "level of income" is the variable that
(35 32) 2 best segments the analyzed market, and
= 23,2776 (4)
32 therefore we intend to check if its influence is
so significant that it may lead to the rejection
It seems that the influence of income level of the null hypothesis.
on the quality of e-commerce the user/ non- Since the results of observation may be
user is stronger than that exerted by guaranteed with 90% probability, the number
education segmentation criterion. of freedom degrees corresponding to the
The observed distribution according to frequency distribution is:
segmentation variable "subject’s gender" is (5-1) (2-1) = 4, (6)
presented in table 8. and the theoretical value of 2 is:
t2 4; 0,1 = 7,779. (7)
Table 8. Observed distribution by subjects’
genders Note that t2
c2
and the null hypothesis
is rejected in this case, and "the income" has
significant influence on e-commerce, too.
Oij Users Non-users Total
5. Conclusions
Women 32 225 257
Men 27 116 143 Along with the generally accepted criteria
(age and area of origin) which divide the e-
Total 59 341 400
commerce market, income is also important,
(Source: made by author) at least in the Arges county. The influence is
obvious in case of on-line transaction
This is the distribution according to the volume, but the conclusion was not very
null hypothesis (the subject’s gender does not predictable in the context of this investigation
influence his/ her quality of e-commerce (the quality of e-commerce user/ non-user).
user/ non-user) - table 9 This is because the average income and the
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6. References
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Furthermore, we can notice that, after phenomena the method of comparing the
realising the transition to the family of ISO results, it is assumed that each result of the
9001 standards from 2008, an acute lack of company’s activity is studied, not only as a
professional materials that bring measure in itself, but also in accordance with
improvements, updates, a new power to this a certain criterion, used like a comparison
practical and theoretical demarche, the base, fact that will allow the knowledge of
quality management is felt. ISO 9001:2008 deviances interfered in time and space [2].
takes account of an approach based on the In order to see if the implementation of
management of the organisation’s processes, the quality management has favourable
and from here, a more logical structure, the effects on the evolution of the main
orientation towards the client and the indicators that characterise the company’s
evaluation of his satisfaction, as well as the activity, we will comparatively analyse the
top management commitment for a evolution of total wages, of total costs and of
continuous improvement. The main purpose profit during the analysed period, as well as
of an evaluation system of the quality of the turnover during the same period.
management system is that of knowing the We can also appeal to analyses of
real situation of the organisation, of non- quantitative type of the economic phenomena
compliant products and services and of We can thus determine, with the help of
carrying on concrete measures for continuous quantitative methods of economic-financial
improvement . analysis: the modification of the turnover’s
indicators, the rhythm of the modification
Theoretical Fundaments and Hypotheses of the turnover’s indicators, the evolution
of the turnover and the average indicators
Thus, we can appeal to utilising some regarding the turnover.
methods and techniques of the economic- In order to evaluate the effects of the
financial analysis in evaluating the efficacy implementation of the quality management
and efficiency of implementing the quality system, it is recommended to use the post-
management system within the organisations factum analysis type (the diagnostics
from Romania. analysis).
As methods, we propose: The realisation of a diagnostics of the
The method of decomposing or enterprise can be motivated not only by the
splitting the results; situation in which it encounters difficulties,
The method of comparing the results. but then when, as Jean Pierre Thibault says,
We can thus realise an analysis of the wages “the enterprise has a good health state”, but
and costs evolution on the basis of data taken its improvement is wanted.
from annual financial situations elaborated The implementation of a quality
for a certain period of time, the elements, the management system within an organisation
factors, the causes of the phenomenon brings real benefits to this one, but the
studied being highlighted; the analysis can be improvement of the system must go on. The
of structural type, being able to determine the quality management system doesn’t develop
correlation between each factor and the separately from the other functions and
phenomenon analysed, as well as the systems of the organisations, they mix
correlation between different factors that themselves and they complete one another
operate upon the analysed phenomenon [3, continuously, and the diagnostics analysis
5]. Knowing the factors, their nature and the allows the effects’ evaluation (positives or
links through which they help at forming and negatives) of the movement of the entire
modifying the results of the organisation’s gear, in general, and of the effects of the
activity, as well as establishing the implementation of the quality system,
possibilities of improving the functioning of particularly.
the enterprise as a system, represents In order to sustain this argument, we
basically a defining element of the object of possess the answers that the diagnostics
the economic-financial analysis realised analysis gives to some problems like: Which
within an organisation. Being a qualitative are the results of the enterprise?; Are they
analysis that utilises for the purpose of the satisfying or not and why?; How have them
nature’s research of the economic been obtained?; Which are the wanted
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performances and objectives?; Which is the confidence, such as the losses caused by not
level of the performances?; What is to be realising the proper quality [7].
done in order to achieve this level? Concrete The implementation and the maintenance
measures that have to be carried on on short of an efficient quality management system in
and long term. an enterprise can contribute to the
The results, the performances and their improvement of its processes, assuring the
level and the future of the enterprise can’t be losses’ reduction caused by errors.
realised without quality. The evaluation of the efficiency of the
In the light of those presented, we specify quality management system through the
the fact that, in terms of goal, the diagnostics costs concerning the quality has in view the
can be restrained to certain problems or costs that result from internal operations and
extended as a global diagnostics. those from external activities. The costs’
The diagnostics realised for the evaluation elements are analysed according to the PEF
of the effects of the implementation of the cost model (prevention, evaluation, failure).
quality management system can be treated The prevention and evaluation costs are
under double aspect: Internal diagnostics; considered investments’ costs, and the failure
External diagnostics. costs represent (material) losses.
The necessity of tracking down the The evaluation of the efficiency of the
quality through specific indicators has quality management system through
determined the usage of mathematical and processes’ cost has in view the compliance
statistical methods, which have grouped in a and non-compliance costs for all the
new science, named calimetrie [7]. These processes of the enterprise.
indicators synthesize either a group of The evaluation of the efficiency of the
characteristics (measurable or attributive, quality management system through the
technical and functional etc.), or the entire losses concerning the quality has in view
system of characteristics of a product or the internal and external costs, caused by the
system. non-compliant quality. Both losses categories
We can thus track down the effects of the can be material or immaterial. The cost of
implementation of the quality management internal and external failures is considered
system on the activity of an organisation by material losses. Although the quantification
utilising the indicators of the qualitative of immaterial losses is in many cases
performances and the indicators of the lack difficult, in order to correctly evaluate the
of quality, indicators that can synthesize the efficiency of the quality management system,
quality of the products obtained as a result of we must take into consideration such losses,
the implementation of the quality system, or such as:
we can evaluate the quality of the system The losses caused by the negative
itself by generating some numeric or impact of commercialising some qualitatively
attributive data about the implemented inadequate products over the enterprise’s
system, data that can constitute possibilities image;
of comparison with the preordained The loss of future sale;
referential. The loss of sales because of the fact
We remind the partial indicators of the that, as result of commercialising some
quality, that refer to specific characteristic of qualitatively inadequate products, other
different products, the values being specified producers aim to realise similar products or
in normative documents (for example, the substitutes of them;
breaking resistance of a yarn) [4], the The costs for regaining the client’s
cumulative indicators that are used at trust, trust lost as a result of purchasing some
complex products, the average quality products non-compliant with the demands;
indicators that are used in synthetic The losses caused by a labour
expression of the quality of the products inadequate efficacy within an enterprise, for
realised on qualitative classes. example, in the case of an inadequate
The costs concerning the quality represent ergonomics.
the costs that are implied by the assurance of For evaluating the efficiency of the
a proper quality and those necessary to give quality management system, we propose the
usage of “financial report of activities
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concerning the quality”. This report has to be investments necessary for preventing the
periodically analysed by the management of appearance of failures in the following
the organisation, assuring the correlation with processes.
other commercial data, like the turnover, the
capitalization, the solvency, for the following Empirical model, dates and methodology
main purposes [7]:
The evaluation of the compliance of We propose utilising the Access
the quality management system with Cal_manag application in order to facilitate
established referential and of its efficiency in the effects’ evaluation of the implementation
realising the objectives; of the quality management system, both from
Establishing the objectives of the the perspective of the beneficiaries,
quality and of the costs concerning the respectively of the clients, and from the
quality, for the following period; perspective of the organisation that
Identifying other fields, which receive implemented the system. The program started
attention by the enterprise’s management. with the hypothesis of finding a correlation
For identifying the costs concerning the between the clients’ appreciations concerning
quality, per total and per categories, our the products’ quality of the organisation and
country uses “The quality’s costs balance”, the qualitative control of the results of the
presented in table no. 1 from above, which is same products, correlation that manifests
used for: during two periods of time: before and after
The comparative analysis for the implementation of the quality
categories of costs for quality, for their management system, respectively which was
weight in total costs concerning the quality the effect of system implementation in the
(horizontal analysis); light of the two coordinates. By using this
The evolution analysis of costs application, the people responsible with
concerning the quality, per total and per attributions in the quality management
categories (vertical analysis). process benefit of a useful instrument with
The costs analysis concerning the quality the following facilities [6]:
has as main objective the coordination and Creating questionnaires concerning the
the maintenance under control of economic clients’ satisfaction degree;
aspects of activities for assuring the Obtaining synthesis situations
quality.The analyse of the costs concerning concerning the questions from the
the quality can contribute to realising the questionnaire before and after the
objectives specific to these stages, implementation of the quality management
commencing with identifying the critical system;
points and finishing with assuring the Introducing situations concerning the
implementation of corrective or efficient types of imperfections ascertained before and
measures of improvement. This analysis after the implementation of the quality
takes into account the highlighting of the management system;
costs’ elements and structure concerning the Obtaining summarizing situations
quality, the level of the enterprise or of some concerning the weight of tracked down
compartments, on products or on groups of imperfections, both at costumers, and within
products, of the incidence of these costs on the organisation, in the stages reminded and
the financial indicators of the enterprise. The obtaining the correlation wanted in the
standard ISO/DIS 10014:2005, Guidelines program;
for managing the economics of quality, The possibility of interpreting and
emphasises the approach of quality’s illustrating the clients’ answers, the control’s
economic aspects in direct relationship with results and the correlation by utilising some
the satisfaction of the clients’ demands, as statistical methods and techniques.
Kelada appreciated. Among the costs’ The Cal_manag application is made of the
elements concerning the quality, the failures’ modules: Questionnaire_structure_creation,
analysis (internal and external) is the most Questionnaire_client, Lot_control, Results,
important, allowing the highlighting of the Synthesis_results.
corrective measures that are imposed, helping Questionnaire_structure_creation is a
at the same time at the substantiation of the module that creates the structure of the
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questionnaire. The questionnaire has 12 Do you entirely know the products that are manufactured and
comercialized by X company?
questions and it is addressed to 14 clients.
The questionnaire will be applied before the Results
YES 57,14 %
implementation and after the implementation NO 42,86 %
of the quality management system.
The form Questionnaire_structure_creation In the form from figure no. 2 is presented
contains the following VBA code attached to a rate situation for question 1.
the Combo-box question_type box and to the In figure no. 3 is presented the final result
after_update event. After creating the of the clients’ answers on a question related
questionnaire’s structure, we click the to the number of imperfections on non-
Questionnaire_creation button that will fill in compliances types.
the Questionnaire_structure table.
Questionnaire_client module is Figure no. 3 – Results for questions
represented by a form that takes over the data of “more answers with values and
from the clients and memorizes them in the comments” type
Results: Form
Questionnaire table.
Lot_control module is represented by a
form that takes over the data concerning the QUESTIONNAIRE RESULTS
Test_number 1
controls made before and after the Question_number 12
implementation of the quality control system. Which are the main non-compliances detected by you on product A
and what was their weight in the total of non-compliances?
In order to operate the informatics
program, data have been generated that have Results
Low tensile strength 2568
determined the possibility of collecting and Irregular sizes 1956
modifying them in view of obtaining the Low resistance to stitches 2112
Low resistance to the action of micro-organisms 2598
desired result: the data obtained from the Uneven thinning (fabrics) 1306
clients have be processed (14) and the results
from realising the qualitative reception of TOTAL 10240
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Morariu Alunica
„Ştefan cel Mare” University of Suceava, ROMANIA
Faculty of Economics and Public Administration,
alunica.morariu@gmail.com
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2. Marks of the specific course 6 months for Class III civil servants,
which includes public functions which
The socio-economic conditions of the require high school or post high school
recent decades, in many cases, determine education, completed with a
graduates from a field of study to practice in baccalaureate degree.
a different field. During the internship, specific civil
The situation evolved in a similar way proceedings are intended to be applied, such
within the sphere of the public administration as [1]:
where in the 90s, with the privatization the stage is performed according to a
and/or closure of certain state economic program approved by the head of the
units, a relatively large number of technical authority or public institution and
professionals have migrated to the public suggested by both the head of the
sector, as the public administration was fully department where the newcomer will be
developing under the administrative reforms operating and by the human resource
specific to that period. Thus, the local public department;
administration structures developed human the internship is conducted under the
resources that have gone through a guidance of a civil servant with
comprehensive process of conversion, along permanent status, acting as supervisor
with the development of the post- with attributions of coordination,
revolutionary Romanian public support, supervision, providing
administration school. suggestions on training programs that
Undergraduate and postgraduate need to be followed by the debutant and
education in management and administrative evaluation.
sciences developed and created disciplines or The recruitment and integration of civil
new study programs within dedicated servants or contractual staff is the starting
educational structures or new ones, mainly point of the professional itinerary of the
aimed at training specialists in the fields of individuals. It is the moment when the human
law and institutional management and public resource management department should
administration. [11] explore the new employees, know them
Thus, after completing the necessary better from one day to another, from one
studies, any interested person who meets the stage to another, and, beyond their
general and specific conditions may knowledge, skills, abilities, to explore their
participate in the contest to fill a public aspirations and expectations, what motivates
debutant position. The candidate admitted to them and what makes them gain
the recruitment contest is appointed, performance, what they wish for in future.
according to the law, in the public service In other words, beyond the fact that the
which he ran for. employees go through the process of
Typically, obtaining this initial position discovering and learning the culture of the
and adjusting to its requirements is part of the organization, the latter shall advise and
early career. At that moment begins the onset integrate them in order to determine them to
of the civil service or probation period and provide enhanced performance. The
according to government Ordinance debutants must be convinced to aim in the
611/2008, it lasts for: future towards a professional career and not
12 months for Class I civil servants just a job. We believe that the period of
including public services whose training of the human resources in local
employment requires undergraduate public administration and the first two years
studies attested by a license or of training, in particular, are crucial for the
equivalent diploma, or superior future occupant of any public office or
education studies, graduated with contractual function. To confirm the
Bachelor degree or equivalent; importance of the early years of professional
8 months for Class II civil servants, activity, we highlight the results of several
comprising public functions which recent studies conducted in the U.S.,
require short-term superior education, according to which "one of the reasons why a
graduated with diploma; considerable percentage of 55% of the new
employees fail or voluntarily leave the
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Morozan Cristian
“Constantin Brancoveanu” University from Piteşti
Faculty of Administrative and Communication Sciences Brăila
cristi.morozan@gmail.com
Enache Elena
“Constantin Brancoveanu” University from Piteşti
Faculty of Management-Marketing in Economic Affairs Brăila
e_enache2005@yahoo.com
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started from the analysis of “Romanian Youth greatly influence the specialized research [8]:
Focus” held at the end of last year in our - those born between 1978-1999
country, an event enjoying international (generation Y) are narcissistic, individualistic,
attendance, adding analysis and interpretations pragmatic and oriented towards material
of articles focused on the strategies used by values, believing that they deserve to receive
brands for their young customers and the everything; they live in an environment
presentations of practical initiatives in dominated by the present time, the rapidity
international companies (some of which with which everything must happen, they can
operating on our market as well) regarding the do more things at once and are oriented
use of marketing and communication tools to towards friends rather than towards the
address the young audience. family; for them the advertising is a source of
The assumptions from where we have information and entertainment;
started refer to: the existence of certain features - the young people of generation Z, born
of the young audience which have to be known after 2000, are analyzed in the study
and used by organizations to attract young “Generation Z - Digital in Their DNA”,
people in the members community and the developed by JWT Intelligence; the study states
existence of a significant degree of influence that 90% of them cannot live without the
upon the consumers purchasing decisions with Internet; young people are angry because they
respect to the organizational promotional cannot get in touch with the world and their
communication supported by traditional and friends when they are not online, having a
electronic instruments, under the influence of a strong emotional reaction; although the
number of variables related to the conditions of attention paid to the broadcasted content is
application of the brand strategies for young lower, television remains on the first place in
people, the social characteristics, their standard the media consumption of “generation Z” [10].
of living, their awareness and ability to use the The young people in contemporary society
information technologies etc. are different from those of the previous
generations by the fact that they belong to the
3. The Youth Characteristics digital world, whose technologies have
influenced the brain, a thing explained by
The report called “Tânărul în România. Profil Nicholas Carr in his book “Superficialii” [1]:
urban de marketing” (http://research.smark.ro/ the users from this age group access the search
tanarul_in_romania.html) shows that the most engines for documentation, so for them only the
common category of young people in Romania most popular items are relevant, reducing the
is that of the “retired” [4]. On the other hand, total number of used sources; when it comes to
according to the study “Litteris et virtues” documentation of existing materials in the
(http://research.smark.ro/litteris_et_virtuti_.ht virtual medium the youth must choose content
ml), 81% of the respondents said they have from various hyperlinks, the same thing
met at least one person who has profoundly happening due to the developing of social
marked their life, most of them mentioning networks that provide updated information.
between 3 and 5 people. Likewise, for young In its turn, in Romania, the “360 Insights”
people and for Romanians in general, the Agency undertook a number of studies about
family is the central value, young people the narcissism and egocentrism of the youth
agreeing with the classical model of the in our country, given that there are two
family, getting married quite early, having generations: the first – of the adolescents (16-
children and their own home [10]. 18 years): individualistic, self-centered,
In its turn, Discovery has conducted a confident, courageous, assertive and with a
research regarding the male youth in Europe strong desire to be noticed; the second – of
(http://www.iqads.ro/relevant/valori_de_brand. the young generation (19-24 years):
html) in which it is stated that 26% of them adventurous, explorer, friendly, opened and
are people for whom it is important to concerned by their professional status. It is
support their family, when the family values obvious that the young audience should be
are in competition with the desire to have a integrated into the community to meet new
career and to form groups of friends [4]. people, but also to be remarked, given that it
After 1980 sociologists and marketing is managed by someone and is engaged in
specialists delineate two generations that teams to achieve success. Another interesting
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aspect is that the youth believes that the state 4. The Study of the Brand Strategies
is the most responsible (85% of the Characteristics for Young People
respondents) for solving community
problems, followed by them (35%), as well Young people simultaneously use multiple
as brands and companies (26%) [9]. devices (TV, computer, smartphone, tablet)
In an interview given to theindustry.ro, and have permanent availability by immediate
Gottfried Langenstein (Vice-president of access to a communication channel, targeting
ARTS) supports the idea that, in the case of immediate answers and quick results. In order
the media, there is a shift in the consumption to have marketing success, especially in the
habits related to generations: older people still online environment, the organizations must
prefer classic television, young people are create messages for communication
attracted by computers, a reason for them to campaigns by considering several aspects [9]:
start searching television stations and - to be based on simplicity, the messages more
broadcasting in the online environment [2]. easily to understand being more easily accepted;
The orientation towards such a type of content - to draw the attention from the very
is not exclusively reserved for the day it was beginning, because young people tend to keep
sent; young people find out about it and they their focus on a topic only for a short amount of
want to watch it long after the live version. time;
The vice-president of the French-German - to provide interesting content for
cultural channel talks about the ARTE distribution in the social networks, using the
bilingual website which has currently become same language.
one of the most creative and advanced The communication campaigns must
television sites with facilities such as the adapt to the specific of the market, the young
timeshift (ARTE+7), Video on Demand, audience being the one that sets trends.
interactivity (the documentaries grouped under Mihaela Nicola, shareholder and CEO of the
the name “Webdocs”) and the user generated “The Group” company says that: “The
content (ARTE Creative). For example, the younger audience prefers visual information
ARTE+7 service allows the free visualization to the detriment of the written one, small
of a program a week after its first broadcast, amounts of relevant information, viral
free, its popularity increasing enormously and campaigns, non-PR commercials which have
reaching five million viewers per month. The a humoristic component and enhance
official of the television station emphasizes customs of everyday life.” [12].
the idea that the average age of the television It is important that the communication with
public of a documentary is about 50 years old, the public, especially with the young one -
and on the Internet, of only 25-30 years. The permanently connected to the Internet, should be
television channel is present, in the social constant, avoiding temporary communication for
media, on platforms like Facebook, Twitter, a limited period, after which contact is
YouTube, offering more interactivity interrupted, while waiting to return with a
especially to the young audience who message during other campaigns.
becomes interested in the content. This occurs Simultaneously, the message the companies
on the creative ARTE platform too since send by communicating with the young
people can post content and pictures. audience has to be achieved through BTL, which
The companies can also intervene in the offers greater interaction and involvement and
educational sector helping young people to take transposes the brand values into real life.
quicker and easier decisions about their future, Another characteristic of the present period
based on studies such as those carried out on which can be exploited by companies is that
students of Xth and XIth grades by the the online presence reduces and even cancels
nongovernmental organization “Şcoala de the distance between individuals and groups
valori”, in partnership with Unlock Research through applications like Skype or Messenger,
[16]. For example, one of the research results is allowing initiation and maintaining the
that there are young people who manage their dialogue through live sound and image with
own businesses, but who are still undecided people from the entire world, intermediates
with respect to their professional route and are videos watching from a global perspective.
concerned about the lack of time. Nevertheless, it is not recommended that the
online environment should be exclusively used
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for communication towards other channels, the * The “Parental Control” promotional
brands being encountered in other environments campaign conducted by Sprite in 2012
too if a coherent strategy is ensured. It is focused on the problem of the young people’s
necessary to initiate and sustain a dialogue so reaction against authority to which the
that brands may find themselves in the position question of parental involvement in the social
of friends, without authoritatively imposing a media was added. Sprite has sent messages of
certain decision regarding the purchase. support to young people and launched
From another point of view one can initiatives to reduce parental control that has
intervene on the strategy of public spread increasingly online. Through such a
segmentation to consider interaction with the campaign, young people could win their
young audience in perspective even if for the favorite prizes while parents were led into
moment it is not a part of the main target. In believing that prizes were strictly educational.
the future young people may choose a brand In the digital campaign, the site had two
that they know and appreciated as active sections - one for the parents and one closer to
when they were teenagers or students and the young people. Visitors were filtered
that offers them a competitive context in through a set of questions to which only young
which to be appreciated [8]. people knew the correct answer. The
To address the current young audience the campaign included a free telephone line by
brands have to approach the participative which parents were taught different things
marketing, reaching a consistent target group of about the stages in the development of
consumers through advertising and the social adolescents. During the three months of the
and involving actions. As the young people are campaign the website was visited by over
very active, curious and open to new items that 130,000 people, with an average of
are wanted by many brands, especially during approximately 2,500 hits per day. More than
the age interval from 18 to 24 years old, their 30% of the users returned several times to the
loyalty is hard to gain [11]. Such an orientation site. The campaign brought a 26% increase in
is called “experimentalism” in the report “Ghid sales in comparison with the previous year [6].
de conversaţie de la român la românc” * In the early ‘90s Puma changed its
undertaken by the Unlock Market Research, position from a company that produced only
many brands being interested to follow it, with sporting goods to one of sport and lifestyle, a
the intention of attracting the community thing materialized in the current period by
members too [17]. means of two communication projects
dedicated to young people: “PUMA Social”
5. Experiences regarding Youth and “PUMA Creative Factory”. The “PUMA
Communication Campaigns Social” platform supported the “Street Heroes”
event through which the brand offered the
The companies and their belonging brands young participants entertainment possibilities
are more and more concerned to build and to and made them interact by practicing team
expose not only ideas about the present time sports. Afterwards, teenagers could watch a
but, more likely, complete scenarios. concert of famous artists or take pictures using
Nevertheless, for the initiators of communication a dedicated application, actions included in an
projects it is quite difficult to get in touch with after-party. In the lifestyle segment, through the
the young consumers only on the Internet “PUMA Creative Factory”, the brand has
because they need the real environment provided the interested persons the option to
interaction via mobile phones, traditional mass- customize the texture and colors of Puma sport
media, to which one can add tools of shoes which they could later purchase from a
unconventional approach, on the street, such as: store of the company [6].
entertainment, games, competitions, music or * Coming from a controversial field of
dance etc. It is clear that the brands that always activity, at least in terms of the relationship
assume such creativity are those that remain in between natural resources exploitation and its
the mind of this atypical consumer category. In some of its unintended effects, Petrom
this respect, we shall present a series of wanted to get involved in social responsibility
experiences of some prestigious companies and campaigns, educating young people being one
brands which sell their products and services on of the followed directions view the most
the market in our country. beautiful places to visit in România: a website
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with the campaign name where they collected Grolsch has chosen innovative projects from the
all the stories of the places they visited, the early stage of its launching in Romania: the
namesake mobile application, the portable design of a beer bottle using a mosaic and the
version of the map on the site which helps exhibition of paintings belonging to some
users locate the touristic objectives around contemporary artists in Bucharest.
them. In 2011, the “Construim pentru viitor” * Being mainly addressed to the young
project developed by Petrom has helped it audience, Orange has used the 3D HD
renovate and equip 18 schools and two non- projection technique and touch screens
governmental organizations from 20 permanently connected to the Internet placed in
communities where the company operates. In the bus stations in Bucharest to be closer to the
the same year, the third time in a row, the experimentalist trend, under the new slogan
company has supported the non-formal “Today changes with Orange”. The company
educational project aimed at young people has launched innovative applications for
between 14 and 18 years old and called smartphones with which users can view works
“Leadership authentic”, conducted by the of contemporary art, among other things.
“Leaders” Foundation. For students, Petrom * Continuous innovation made by Red Bull
has collaborated with “Aspire Academy” for a targets young people who are active,
program dedicated to leadership, enterprising, who make intense intellectual and
entrepreneurship and innovation. More physical effort, enjoying every new experience
recently, through the “Ţara lui Andrei” and taking decisions spontaneously. The
project, Petrom has been involved in Austrian company supports global Red Bull
environmental protection, community Music Academy (music workshop), Red Bull
development and education too [7]. Flugtag (contest for amateurs of short and low
* Having a brand in continuous lift flights), Red Bull X-Fighters Exhibition
development, Samsung cannot overlook the (acrobatics show on motorcycles), Red Bull
younger generation, thus having launched the Illume (contest of action and adventure photos
“Trends of Tomorrow” campaign addressed to all over the world) etc.
those aged between 16 and 18 to provide
information and advice for the choice of a 6. Results
career. Both by means of RIUF and of a
caravan reaching the major universities in the Generally speaking, companies are
country, people from the management team, concerned with identifying the public behavior
from advertising, research or human resources especially that of the young people in the
have spoken to students about the career situation in which such a category becomes the
opportunities and challenges in these areas. A preoccupation of those involved in their own
national projects competition of personal marketing. We can talk about an exchange of
development has been conducted as well [7]. value among members of the young people’s
* Following the recruitment of students in community and brands which should always
technical programs to integrate them into the provide reasons for conversation to be
company, Siemens Romania has implemented rewarded by the dynamic consumers, through
several projects which aimed at undergraduates different messages addressed to them.
and masters students and declared its interest to We can thus prove the first hypothesis of
collaborate with higher education. Siemens the study which claimed that there is a set of
offers various development programs for both characteristics of the young audience to be
students and graduates, all of them presented on known and used by organizations to attract
the company’s website [7]. them into community members and offer
* Interesting to approach in this study is the them reasons to stay, to provide ideas and
case of Grolsch company that has gained both in support their implementation.
Europe and overseas, the title of “Berea oficială Successful experiences of some known
a artelor contemporane” [15]. The targeted companies with different business objects,
audience is represented by the nonconformist still present on the market in our country,
young people who live in major cities, are reflect the fact that they are expanding their
educated, independent and active and they are concerns to attract young audiences through
constantly seeking change. Based on the slogan projects based on extensive marketing
“Proud Sponsor of the Experimentalists”, strategies which start with online interaction
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and continue with the use of smart phones, [3] Crăciunescu, M., Stereotipuri despre
mass-media and even with “atypical” events. tineri demontate de experienta oamenilor
It is such initiatives based on creativity that de comunicare, 2012, available at:
support the extension of the brand influence http://www.smark.ro
upon young consumers. [4] Crăciunescu, M., Vintilă Mihăilescu şi
Taking into account the social Alfred Dumitrescu despre tinerii de astazi în
characteristics of young people and their context european şi generaţiile X, Y şi Z,
standard of living or even to what extent they 2012, available at: http://www.smark.ro
access revolutionary technologies through [5] Crăciunescu, M., Vintilă Mihăilescu: Ce
more and more sophisticated equipments, ar trebui să ştie brandurile şi agenţiile
brands apply promotional communications despre tinerii români, 2012, available at:
strategies that influence the buying decisions http://www.smark.ro
of such a social category whose members [6] Crăciunescu, M., Strategii de succes de
refuse any advise regarding what they should comunicare cu tinerii: Sprite, PUMA,
do and rely on the power of the personal Samsung, 2012, available at:
example, revealing their personality as long http://www.smark.ro
as organizations offer them certain values to [7] Crăciunescu, M., Branduri care sprijină
adopt. Thus, it becomes evident that the educaţia tinerilor români, 2012,
communication rules change when the available at: http://www.smark.ro
recipients of the message are young people, a [8] Furtună, R., Romanian Youth Focus 2012
thing which demonstrates the second - Tinerii, cel mai dezirabil şi dificil
hypothesis of the study too. public ţintă. Cifre, exemple şi concluzii
utile pentru branduri, 2012, available at:
7. Conclusions http://www.smark.ro
[9] Furtună, R., Generaţia Z: influenţa
The most important results of this paper tehnologiei şi oportunităţi pentru branduri,
refer to the context in which brands can 2012, available at: http://www.smark.ro
initiate communication with young audiences [10] Ieşeanu, T., Tinerii, cel mai dezirabil şi dificil
characterized by curiosity, self-centeredness public ţintă. Cifre, exemple şi concluzii utile
and openness to dialogue. pentru branduri, 2012, available at:
As a consequence, it becomes evident that http://www.iaa.ro/Articole/Analize
the brands they appreciate are those that [11] Mihu, C., Experimentalismul – un trend
facilitate their access to products and services emergent, dar cu potenţial, 2012,
and offer them the opportunity to spend more available at: http://www.smark.ro
time with their parents and friends. To be able [12] Mîndrilă, A., Roşca, C., The Group:
to support two-way communication, brands Pentru anul viitor premisa realistă este
should use simple and direct messages to că piaţa media nu va mai scădea,
address young consumers, to accept that they urmând ca din 2014 să îndrăznim să ne
cannot control everything they say and let gândim la o creştere uşoară, 2012,
them express themselves, to prove that they available at: http://www.zf.ro
care about them, to monitor the evolution of [13] Thompson, D., The Continuous
their preferences and to present the results and Evolution of Digital Marketing, 2011,
finally to continuously adapt their plans available at: http://www.wsiems.com
according to the young people’s needs. [14] *** Despre brand-uri pasiune si
comunitatea din jurul lor, 2012, available
References: at: http://www.creativemarketing.ro/blog
[15] *** Istoria Grolsch – 400 de ani in slujba
[1] Carr, N., Superficialii. Efectele internetului experimentalistilor, 2012, available at:
asupra creierului uman, Publica, http://www.iqads.ro/istoria_brandului
Bucharest, 2012 [16] *** http://www.scoaladevalori.ro/ro/
[2] Comănescu, I., Interviu cu Gottfried impact/projects/euroedu
Langenstein: Trebuie să oferim mai [17] *** Smark Research - ghid de conversatie
multă interactivitate publicului tânăr, de la roman la roman, 2012, available at:
2012, available at: http://theindustry.ro http://research.smark.ro/ghid_de_conversati
e_de_la_roman_la_roman.html
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Morozan Cristian
“Constantin Brancoveanu” University from Piteşti
Faculty of Administrative and Communication Sciences Brăila
cristi.morozan@gmail.com
Enache Elena
“Constantin Brancoveanu” University from Piteşti
Faculty of Management-Marketing in Economic Affairs Brăila
e_enache2005@yahoo.com
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cost per action as means of rewarding [8]. In be used an online research in order to get
Romania, the poundage for the affiliates is information about the reasons of purchasing
different from case to case, between 3% decisions.
and 6% [6]. Besides banners, on the site can be used
Internationally, the affiliate marketing has some different traffic sources to promote
been applied by professionals since 1996 products. The chances to earn money
when Amazon launched its own program that increase when there is a frequent traffic sent
offers to experienced affiliates the to the commerce sites. An example is Google
opportunity to earn substantial amounts [7]. Adwords: it can be simply made an ad in the
Another example is the dealer CaptainGO - adwords account, then it can be used the
online hotel reservation system which affiliate link in the target page URL of the ad.
provides 5% of the booking price to the Make sure to place the banner ads on
affiliates that are promoting it, including different areas of your site’s pages. Some
TourismGuide.ro - a travel portal. If a positions will make the ads more noticeable
TourismGuide visitor clicks on a CaptainGO than others.
banner and continues to make a reservation at Obviously, the affiliate has to constantly
a hotel, then TourismGuide will receive 5% estimate the conversions and to determine if
of the sale. the campaign cost is less than the profit, to
keep it active. Thus, it is necessary to
3. Reasons for Affiliation determine the performance of each campaign
and to make decisions for future action.
The affiliate marketing represents one of Many affiliate programs provide statistics
the online activity fields with the highest that can offer information in this regard, but
growth rates and one of the most efficient the affiliate can use its own conversion
methods to earn money for the following tracking software.
reasons: As the affiliate marketing is very
- it is cost effective: the internet marketing competitive, those involved must also be
is inexpensive and there are not production aware of new techniques and market trends to
costs; it isn’t necessary a business location or exploit most of the arisen opportunities.
employees; When a product is promoted there is also
- it targets a global market: online supported the person or the company behind
marketing gives the opportunity to contact it, so it is appropriate that they being chosen
people from different areas, in a quick and carefully: the affiliates sites visitors are
easy way; guided in the purchasing process by their
- it isn’t necessary a membership fee; advices, becoming very important to be
- there are no storage or transportation happy with their purchases and return on
problems (the merchant due); those sites. Normally, companies that provide
- it isn’t necessary the customer support or an efficient technical and commercial support
an answer to their complaints; to the customers will register their
- it is ensured a passive income: it is satisfaction. Such businesses are aimed to be
possible to earn money even if the affiliate is included in the affiliation programs, based on
not online; a well prepared plan.
- it is possible to work from home.
To be successful with such a marketing 4. Romania’s Experience Regarding
tool, affiliates should know the market the Affiliate Marketing
demands, learn how to promote products,
what works and what doesn’t on the market. Along with the expansion of the Internet
First of all, they should choose to promote goods transactions in our country (which will
successful products. It can be a mistake the reach one billion euros in 2013, in the
involvement in too many affiliate programs opinion of key players), there have been
that take time and bring into focus different created collaboration systems between:
areas. Therefore, it is better if the market merchants (online stores), affiliates and
demand is known and there are identified that customers. As mentioned before, the affiliate
products adapted to the promoted site topics. has the intermediary role. He is the website
If that site generates significant traffic, it can owner, being able to direct the traffic,
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through links, to the online stores listed in an capable to increase the merchants and
affiliate marketing platform or which has its affiliates performance from the network. In
own affiliate marketing system. its turn, “2Performant” – an affiliate platform
The best known local affiliation examples developed in 2010 – provides the technical
are “2Parale” and “Profitshare” - which system for sales recording and monitoring, as
belongs to eMag.ro. In addition, we can well as for all actions generated through
mention F64.ro, the biggest cameras and “2Parale” network.
accessories store from Romania, and Altex -
one of the leading retailers of IT&C and 4.2. The Answer of the Main Challenger
electronics from the local market.
eMag is the most important online store
4.1. The Systems’ Beginning from Romania (owned by Naspers group, one
by Establishing “2Parale.ro” of the online biggest global players), with
70% market share in Romania and, also, the
The first and largest affiliate marketing largest store in South East Europe according
network in Romania – “2Parale” (part of the to its turnover, with 1.3 million orders in 2011.
Leo Burnett Romania, with over four years of Since 2009, the company owns
experience in Romania) is a “3rd party “Profitshare” – an affiliate marketing network
network” type in which the merchants pay through which affiliates has access and
only for the results: network acts as an supports only the network owner’s campaign.
intermediary, providing a quick and effective This system is designed on the amazon.com
solution to promote and earn money. In 2011, model, the largest online retailer in the world,
the company paid commissions to the who created this business in 1996.
affiliates worth 300,000 euros and, in 2012, This year, the system supported by eMag
almost 600,000 euros, according to the experienced a noticeable change towards the
company’s manager. In the last year, the 2.0 version (multi-advertiser affiliation
network had over 230 active campaigns platform), provided by Conversion Marketing
through which online stores have presented to - company which is, also, hold by eMag.ro.
the affiliates their offer and specific Until now the eMag system has paid
promotional tools. These campaigns have commissions worth a million euros to its
generated 145,000 sales exceeding 41 million affiliate members. From now on it intends to
lei (VAT not included) and counted nearly directly compete “2Parale” through a new
60 million clicks [3]. Most campaigns were system version, on the Romanian online
presented under the categories: advertising market (estimated at 40 million
“Entertainment”, “Collective discounts”, euros this year), in which eMag (with revenues
“Cosmetics”, “Electronics” and “Tourism”. of 180 million euros estimated for 2012), has
“2Parale” platform has over 15,000 registered proposed to earn five million euros [4].
affiliates (large retailers, niche sites, websites The advanced system “Profitshare 2.0”
optimization experts, bloggers, social will attract those affiliates which have a good
networks and various communities) [6]. market position and offer quality services,
In 2011, the company extended its activity which have experience in the field and a
in Bulgaria, through “2Leva” system. In large base of customers. The earnings
order to define its position on an increasingly awarded to affiliates will be set by merchants
competitive market, last year “2Parale” took – while Conversion Marketing and eMag will
the strategic decision to merge with the receive a percentage of the commission paid
affiliate platform “2Performant” (holding the by the merchant to its affiliate.
locally exclusive using rights), which allows In the “original” version – in the
it to expand in several countries from Central “Profitshare” system are involved about
and Southeast Europe, as well as Turkey, as 25,000 affiliate sites; in addition, there are
the management statements [3]. The other affiliates who achieved special
company is also active today on the markets campaigns with Google AdWords and
from Serbia, Iraq and Cyprus. Facebook (the last has generated just 5% of
Particularly, taking full control over the the eMag sales). Thus, the affiliate buys
affiliation platform, “2Parale” intends to online advertising from Google to attract
invest in its development with new features customers to eMag products and services.
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Conclusions:
References:
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Muhcina Silvia
Faculty of Economic Sciences, Ovidius University of Constanta
muhcina@gmail.com
Moraru Andreea – Daniela
Faculty of Economic Sciences, Ovidius University of Constanta
amoraru@univ-ovidius.ro
Fronea Ciprian Mihail
Financial Guard of Constanta
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commercial image can be built upon the trust concentration of its’ attributes;
of the university’s clients (high-school, Clarity, that means how distinctive is in
bachelor, and master degree graduates, relation to the competition;
economic organizations etc.), the university’s Historic, which means that the past of an
performance and public image can be image is a very important component of
founded on the university’s capacity to be the actual image (being known that the
integrated in the community. image of prestigious universities of the
Marketing communication is very world is built on tradition) [16].
important for the creation of the global image The image is strongly related to the
of the organization, but there are various marketing mix elements: with product policy
factors that can influence the image. (being one of the product’s components),
Specialists work to create the desired image, with price policy (the level of taxes can
which corresponds to the global goals of the create a piece of image), with distribution
organization, is founded by the assembly of policy (the relationships of university with
the organization’s declared values, and is the the business environment concerning the
object of the communicational strategy [15]. practical training and the distribution of
Through formal and significant messages, students on labor market) and with
this image is delivered, and when the strategy communicational policy (the communication
is good and coherent these two images are tools are the principal means to deliver the
dovetailed. messages which express the university’s
But, there are various internal (from the image).
organization) or external (from its
environment) factors which can create 4. Delivering the Image
situations when the delivered image is far
from the desired image. In this case it is The organization’s identity reflects the
about the real, formed image, which indicates permanent and fundamental character of the
the way that the organization’s image is organization, expressed by various features,
perceived by the public. such as: status, shareholders, nationality,
In the academic environment, it is activity etc.[17].
difficult to create, identify and determine the Creating the organization’s image is a
image of universities, faculties, departments complex process and involves efforts and
etc., because it can be influenced by various creativity.
factors, bounded on the way through are The organization must transmit a message
perceived the global and partial products, which can suggest the principal characteristic
concerning not only educational and research and the market position.
services (profiles, specialties, curricula, This message must be expressed through
didactic and research activities, students symbols, mass communication, atmosphere
support activities, physical ambience, and events [18].
equipment, teachers’ prestige, students Brand meaning can be expressed through:
results etc.), but other services such as verbal elements (naming, wording,
accommodation, student canteen, sport basis description), visual elements (picturing,
or entertainment, medical care etc. Also, for symbols, animation) [19].
the university’s image of a significant Starting from those opinions, in the same
importance are the alumni, the stakeholders, general manner, in the academic field the
the implication in the community life etc. image can be delivered through the following
Specialists consider that, in the academic means:
environment, the image has the following Symbols: people, animals, objects, or
components: simple words combinations, all these
Notoriety, referring to the percentage of symbols are very important elements that
the public that heard about the university; can create means for people and facilitate
Content, a qualitative component an easy recognition of the university or
reflecting the connotations that exist in faculty. Colors, sounds and music can
the persons’ mind; increase the recognition of images;
Intensity, a quantitative component, that Using mass media to communicate
expresses the image through the symbols and messages. Press, television,
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radio can be used to deliver the desired Through marketing communication tools,
information about universities or faculties. universities deliver messages that express the
Through advertising universities can image.
transmit various information, especially When the desired image and the real
those which concern the university’s image are corresponding, it means that the
offer, the admission terms and modalities; communicational strategy was efficient.
Printed materials are a very important tool References
used for delivering the image. Flyers,
brochures, catalogues etc., can be [1] Kotler, Ph., Managementul marketingului,
successfully used to inform the public Ed. Teora, Bucuresti, 1997, p. 389
about the university’s offer, about the [2] Balaure, V. Coord.), Marketing, Ed. Uranus,
Bucuresti, 2000, p. 299
basic and supplementary educational
[3] Florescu, C. (coord.), Florescu, C. (coord.),
services, about the history etc.. These Marketing, CoEd. Marketer Expert,
tools can be used in connection with other Bucuresti, 1992, p. 298
communication tools, such as direct [4] Olteanu, V., Marketingul serviciilor, Ed.
marketing or marketing events; Ecomar, Bucuresti, 2005, pp. 168-170
Design and atmosphere can contribute to [5] Popescu I.C., Comunicarea in marketing, Ed.
create and deliver a favorable image. a II-a, Ed. Uranus, Bucuresti, 2003, p. 49
Buildings, amphitheaters, laboratories, [6] Kotler, Ph., Managementul marketingului,
lecture rooms, furniture, colors etc., can Ed. Teora, Bucuresti, 1997, p. 389
create a distinctive image for any [7] Chiciudean, I., Tones, V., Gestionarea
crizelor de imagine, SNSPA,
university;
http://managementcrize.files.wordpress.com/
Public relations and marketing events are 2011/11/gestionareacrizelordeimagine.pdf,
one the most indicated means to create retrieved on 25april, 2013
and deliver the university’s image. Press [8] Olins, W., Noulghid de identitate, Ed.
conferences, press releases or interviews Comunicare.ro, Bucuresti, p. XVII
allow informing the press and the public [9] Florescu, C. (coord.), Marketing, CoEd.
about the activity, the major performances Marketer Expert, Bucuresti, 1992, p. 298
of students or teachers or the important [10] Kotler, Ph., Armstrong, G., Saunders, J.,
events of universities. Events can transmit Wong, V.,Principiile marketingului, Ed.
Teora, Bucuresti, 1998, p. 1098
to the public important information about
[11] Kotler, Ph.,Armstrong, G., Saunders, J.,
the university’s offer, the way it is Wong, V. Principiile marketingului, Ed.
involved in communities. The Open Gates Teora, Bucuresti, 1998, p. 1098
Day, the Olympic contests, the [12] Mayrhofer, U., Marketing, Ed. Breal, 2002,
Workshops or seminaries etc., all of these pp. 88-89
instruments can create and deliver the [13] Popescu I.C., Comunicarea in marketing, Ed.
image in an efficient way. a II-a, Ed. Uranus, Bucuresti, 2003, pp. 51-53
In time, by developing technology [14] Westphalen, M-H., Le Communicator. Guide
probably the ways to deliver messages as to operationnel pour la communication
express the image will diversify and will d’entreprise, Ed. a II-a, Dunod, Paris, 1994,
p. 2
allow universities to be closer to all
[15] Popescu I.C., Comunicarea in marketing, Ed.
categories of their interested publics. a II-a, Ed. Uranus, Bucuresti, 2003, p. 57-58
[16] Grigorut, C., Ploae, V., Zagan, R., Zaharia,
Conclusions R., Micu, A., Marketing Universitar, Ed.
Online, UEFISCU, Bucuresti, 2011
The identity and the image are two [17] Popescu I.C., Comunicarea in marketing, Ed.
important concepts for the global policy of a II-a, Ed. Uranus, Bucuresti, 2003, p. 59
universities. [18] Kotler, Ph., Managementul marketingului,
Through identity the universities are Ed. Teora, Bucuresti, 1997, p. 390
trying to show who they are and what they [19] Kellog on Marketing, Edited by Tybout A.M.
and Calder, B.J.Wiley,. John Wiley & Sons,
are doing.
Inc., 2010, p. 106
The desired image is the way that the
universities are perceived by their publics
and corresponds to global goals and
objectives of the universities.
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Munteanu Valentina
Andrei Saguna University, Constanta, Faculty of Economic Sciences
valentinamunteanu@yahoo.co.uk
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The commercial activities of the company The operative staff is busy in activities of
are on the rise due to the increase and technical shops and warehouses: heads of
diversify the range of products, the role of units, storekeepers, sellers, cashiers, cooks,
services in the economy and attracting waiters, etc. These features have the greatest
towards this sector of the workforce in the share in the total commercial staff. He
branches of production of goods made restructures as modernization of trade,
available as promoting technical progress. together with the increase in the number of
In terms of the complexity of the large department stores, diversification of the
commercial activity, imposed by the nature forms of commercial distribution of products
of the goods and the service trade, it deepens and changing forms of sale. Workers work
the technical division of labor, leading to the enriches the contents of their operatives, thus
presence of various commercial enhancing its relations with the public, the
establishments in the professions. The largest technical advice given to customers, sales
of these refers to the actual trade activity promotion and provision of commercial
(purchasing, storage and sale of goods) and is services.
executed by specific trade staff. Another part Operative staff is organized into working
relates to the specific activities of other groups whose size (number) depends on the
economic sectors (transport, production, system of division of labor within the
maintenance, etc.), with a low weight, but in department or district and the norm of the
trade, being carried out by non-trade staff. sale that each worker must meet.
Part of the commercial is staff met in the Administrative and technical staff shall
sphere of production, the distribution-related carry out the operations of the management,
activities, if the producers themselves to administration and maintenance company
participate in this process. He formed the (services, offices, laboratories, etc.). It is
firm's sales force and is composed of one or made up of economists, engineers, lawyers,
more persons occupied in contacts with clerks, cooks, serving staff, whose number,
customers and suppliers and prospective or powers and hierarchical dependencies are
actual studying the markets. Their determined by each company's organizational
responsibilities are defined by functions such structure. Constitute the organizational chart
as HR, marketing agent, promoter, marketing of a company including their management,
technical engineer, purchaser, workman, functional structures (offices) and posts their
analyst, Planner, economist, market research components, all rendered in a design showing
analyzer, etc. They submit reviews of the hierarchical system of preparing, making
products, make the products demonstrations, and carrying out decisions. Under this latter
negotiate transactions, provide service and, at aspect is highlighted two types of
the same time, collect information on hierarchical relationships: linear type, in
suppliers, trading conditions in the market, which the governing body (steering
the competition situation and the way of their committee, bureau, director) keeps ties to
own business needs. each service or office and coordinating
Due to the importance of sales in the functional type, in which senior management
business, the sale is today more and more a (deputy director, commercial director, chief
job for the team, in the sales force of the economist, chief accountant) take over the
enterprise leadership itself playing (for coordination of the bins. Modern pyramid
customer transactions director leading), structure leaving the organization charts of
engineers and technicians for information hierarchical leadership in organizing in favor
and professional assistance provided to of "Daisy" in which specialists are face to
clients, service pledges during the after-sales face around the body managing the decision-
and others. The number of commercial making process.
production tends to increase as manufacturers Summarizing the requirements of
direct relationships with merchants organized commercial staff, it should be borne in mind
retailers or consumers. that-before-stressed that the work in this area
Commercial staff is grouped according to has, along with its techno-economic
the nature of the work done in two component, and a social component, the
categories: technical and administrative task exchange is, by its nature, and a relationship
force. [1] between persons who offer goods or services
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in the counterpart, even if they take monetary level of management, are areas in which
form. That's why it is necessary for talent and vocation for this industry is
commercial workers both mastery of a associated with mastering scientific methods
profession, but also psychological and moral of analysis and forecasting the preparation
and cultural levels to enable them to adapt to and decision-making, economic calculation
the needs and temperament, behavior of the and mathematical modeling, psychology and
various categories of customers. These sociology. [3].
qualities relate equally to the operative staff
and leadership. 4. The characteristics of human resources
Operational staff (including in this in the field of commercial companies
category and force the sale of undertakings)
must, first and foremost, to be a good In the context of the transition to a
connoisseur of cargo, utility, storage competitive economy, the ability of
conditions and the way of presenting them enterprises to initiate internal changes
and have found them skill in dialogue with inherent to the external face is determined
potential buyers. These qualities are the skill mainly by the characteristics of human
in technical execution, obtained through resources available to him. American society
experience in the workplace. Secondly, the for Training and development has identified
vendor is required to be a good market; the nine key areas of human resources
prospector must have the ability to generalize management [4]. Training and development;
the demand made by the consumer universe organization and development; the
those features (preferences, motivations and Organization/job projection; human resource
buying habits) which will enable stock planning; selection and provision of
management and the formulation of the personnel; staff and research information
corresponding supplier’s orders with the systems; Rewards/advantages; advice on
application. Furthermore, he must master the personal problems of employees; union/labor
art of influence, to shape the tastes of buyers relations.
and promote market new products offered by The importance and complexity of human
manufacturers. Finally, he has, through his resources management are analyzed and
mental and moral qualities to win customers. Michael Armstrong [5]. In one of his works.
These requirements necessitate that the The concept of Jean Marie Peretti, [6] in
recruitment of personnel in the field of trade his work "Resources humanize", personnel
task force to be made on the basis of tests function, at the level of any existing
showing physical and intellectual skills of a organizations, involves the following
person to work with the public or with firms. activities: management of human resources;
So start to make wage differentiation in personnel management; the formation; social
practice place the same category of development; management of personnel
employment depending on the capacity of costs; information and communication;
workers and the interests of the company's environment and working conditions; social
problems. The differentiation is done relations; hierarchical management and
according to a system of assessment and counseling staff; external relations.
scoring through annual tests and dialogue All these activities should be reflected at
with workers, held by specialized personnel the level of companies which have as their
of companies in such areas. [2] To this are object the production, processing and
added and new forms of motivation in marketing of products. They may become
enhancing the profits of enterprises, "enterprise" modern, efficient, able to
including their own priority employees to introduce new technologies, but if you
purchase shares. manage to promote the particularities of
For technical and administrative staff and, human resources at their disposal, these
in particular, for commercial professionals peculiarities, by imposing a Romanian
firms (economists, analysts, technicians, authentic management.
cooks) problems of market research, The current requirements as a commercial
negotiating deals with partners, promote employee to be qualified, the tense situation
products, scientific stock management, of the labor market, the Labor Code
financial management, and, on a broader provisions will cause it to be aware of his
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value and to develop a more critical stance efficient use of human resources. Design and
toward the organization. The new type of implementation of strategies and policies for
worker in the commercial field will require the development of realistic enterprise
modern management methods in the field of require deep understanding of current
personnel aimed at both the material constraints, as well as a new strategic vision
incentives, as well as the intangible: the of the use of resources, to overcome the
situation of employment in terms of detailer, current crisis.
the formation of high-performance work
teams, etc. 6. Bibliographical References
Development programs designed by
human resources officers, they will be able to [1] Kotler, Ph.; Dubois, B., Marketing-
present the actions and modalities that will be Management, Publi-Union Editions, Paris,
the basis for maintaining and promoting 1992.
workers ' interests in the field of trade in [2] Montgomery, St. L..Profitable Pricing
Strategies, Mc Graw-Hill Book Company,
terms of participation in the achievement of
New York, Hamburg, London, Paris, Milan,
the strategic objectives. However, the Montreal, Toronto, 1988.
successful application of a strategy in the [3] Manolescu, A. Human resource management,
field of personnel cannot be completed Economic Publishing House, Bucharest,
without the existence of an information 2007.
system that would provide the possibility of [4] De Cenzo, David, A., Robbins, P. , Personnel
checking the information, allow obtaining human resources management, Englewood
special information with confidentiality and Cliffs, London, Prentice Hall,1988.
accuracy of recorded data (employees need to .[5] Amstrong, M. ,Personnel management
see from time to time your personal data, to practice, London, Kogampage, 1996.
[6] Peretti, Jean-Marie Gestion des ressources
ensure that the information posted is accurate
humaines, Editions Vuibert, Paris, 1996.
and up to date).
It is also useful to the acquisition and
implementation of a human resources
information system, corresponding to the
needs of the Organization, in addition to
aiming computerization of manual activities
and concern for the strategic use of
information related to human resources. The
enterprise needs a quick and easy access to
this information, access being totally bin
management staff and managers. The system
will have to be linked to the production
system and to be updated. Estimated costs are
related to both the technical side and the
human: are needed investments in equipment
(networked computers), software (developed
by software experts employed) and
specialized personnel.
5. Conclusions
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Munteanu Valentina
Andrei Saguna University, Constanta, Faculty of Economic Sciences
valentinamunteanu@yahoo.co.uk
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actions, errors, and setting standards of stimulates creativity, make proposals for new
performance of employees. solutions to old problems.
The staff welcomes the identification of
transformational leader worker with 8. References
company goals and the role of the leader
model. Transformational leader is perceived [1] Cole, G. A., Personnel management,
by the employees and for the promotion of a Bucharest, Codecs Publishing House, 2000.
spirit of sportsmanship, the clarification of [2] Iosifescu, Ş. , Handbook of educational
expectation, energizing, the proposal of new management, ProGnosis Publishing House,
Bucharest, 2000.
solutions to old problems and needs
[3] Manolescu, A. , Human resource
centering on the individuality of employees. management, Bucharest, Ed. Economic
Publishing House, 2007.
7. Conclusions [4] Vlăsceanu, M., Organizations and
organizational behavior, Polirom Publishing
Following the collection and processing of House, Iaşi, 2003.
data, it is confirmed that managerial style [5] Zlate, M. , Leadership and management,
positively affects organizational climate of Polirom Publishing House, Iaşi, 2004.
institutions (between the two fixing the
correlation relationship) and that
transformational leadership style to induce
significant changes in the organizational
climate in an institution. It is confirmed that
indeed, a positive climate in an organization
is established and maintained by a
management style, which aims at motivating
positive actions, combining individual with
collective interests, the existence of feedback
between the manager and the staff of the
institution.
Therefore, we can say that the active
intervention of the leader, rewarding
performance, forecasting errors by the leader,
corrective action through setting standards of
performance, motivation of the leader and
the foster team spirit, are just some of the
psychological dimensions of managerial
style that influences organizational climate in
a positive way in the institutions, referring
also to the technical and material conditions
and lifestyles of employees, to ensure the
flow of information and the quality of that
motivating employees and centering on
"human factors" and participation in the
process by accepting the leadership of ideas
and solutions proposed by employees.
As a result of the analyses carried out, we
can affirm that the transformational
leadership style induces significant changes
at the level of the organizational climate and
the role of the leader model, by powerful
motivation provided by identifying himself
with the objectives of the organization in
question.
A transformational leader in your
organization, promotes team spirit,
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Nica Panaite
The Faculty of Economics and Business Administration, Alexandru Ioan Cuza University
of Iasi
pnica@uaic.ro
Leon Ramona – Diana
The Faculty of Economics and Business Administration, Alexandru Ioan Cuza University
of Iasi
ramona.leon@feaa.uaic.ro
Neştian Andrei Ştefan
The Faculty of Economics and Business Administration, Alexandru Ioan Cuza University
of Iasi
nestian@uaic.ro
Abstract 1. Introduction
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presented a couple of conclusions and also Association (AMA 2002 Corporate Values
further research directions. Survey, AMA Research, April / May 2002,
American Management Association, N.Y.).
2. Research methodology Based on the obtained results, a new version
of the questionnaire had been developed.
We aimed to determine if the professional This had been validated after processing
status influences the evaluation of the most 1330 questionnaire that had been completed
dominated organizational values from the during January – February 2007 [3].
oldest Romanian universities. In other words, In the process of data analysis, there had
we wanted: been used medium coefficients that represent
to identify the most important values of the intensity of promoting the values
the university’s culture from students’ (presented as a percentage). In determining
perspective; the coefficients, it had been applied a five
to identify the most important values of points scale according to which the value
the university’s culture from academics’ situated on the first position received 5
perspective; points; the one from the second position, 4
to determine the differences between the points; the one from the third position, 3
currents and desired values from both points; the one for the fourth position, 2
students’ and academics’ perspective. points and the one from the fifth position, 1
The research strategy that we used in point. The sum of the coefficients determined
order to achieve our objectives was for all the 37 values was 100. These medium
represented by a case study. We focused on coefficients had been used for determining
the oldest Romanian higher education the intensity of promoting the values at the
institutions, namely: level of each category of respondents.
Alexandru Ioan Cuza University of Iasi, So, we used an ethical approach and
the Bucharest University of Economic applied a survey based on questionnaire. The
Studies, survey was developed, from January until
the University of Bucharest, March 2012, on a sample of 1165 persons.
According to Figure 1, 85.32% of the
the Babeş – Bolyai University of Cluj –
respondents were non-managers, 6.27% were
Napoca,
first line managers (head of department, head
the West University of Timişoara
of laboratory) and 8.41% were middle and
From a methodological point of view, we
top managers (rector, vice – chancellors,
used our own methodology, called
deans and vice-deans). On the other hand, the
“Organizational Values Inventory” [2], [3].
distribution regarding the professional status
This focused on evaluating the intensity of 37
shows that 42.73% were academics, 36.20%
possible values which had been selected after
of the respondents were first grade students,
analyzing the results of previous studies. The
9.89% administrative personnel, 5.67%
analyzed researches had been conducted in
master students, 4.90% were doctoral
other universities and also in public and
students and 1.29% researchers.
private institutions [2], [3], [4].
For processing the collected data, we used
The first version of the “Organizational
both SPSS Program and Microsoft Excel. We
Values Inventory” had been developed in
also applied techniques like systematization,
2004 [5] and focused on ensuring its
tabling and graphs.
compatibility with one of the studies
developed by the American Management
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Figure 1. Respondents’ distribution by hierarchical position (a) and the professional status (b)
Figure 2. Comparative analysis between the ten most important organizational values that
characterize Romanian universities, according to the academics’ and students’ points of view
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On the other hand, if we take into account These are represented by quality (which had
the ideal situation or the values that the been situated on the first place), fairness,
students and academics will prefer to be honesty, dignity, ethics and integrity (on the
promoted inside the university environment fourth place) and open communication
(Figure 3), we realize that both categories of between the members of the academic
respondents focus on a professional working community (eighth place). This reflects that
environment that encourages communication, academics and students are offering the same
collaboration and cooperation. As a result, importance to these values although they are
both the academics and students described not necessary evaluated them using the same
the ideal cultural organization as being based criteria.
on: quality; competence; fairness, honesty, Besides, when it comes to describe the
dignity, ethics and integrity; accurate ideal organizational culture of Romanian
evaluation of individual’s performance and universities, students and academics focus on
merit recognition; fellowship; creativity, quality, competence and fairness, honesty,
innovation and inventiveness; open dignity, ethics and integrity.
communication between the members of the Another aspect that we should take into
academic community; cooperation, account is the importance that the accurate
collaboration and partnership. evaluation of individual’s performance and
We must remark that some values are merit recognition has it for academics. They
occupying the same positions in the placed this value on the fourth position while
hierarchies of both categories of respondents. students situated it on sixth position.
Figure 3. Comparative analysis between the ten most important organizational values that should
characterize Romanian universities, according to the academics’ and students’ points of view
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quality and competence remain the core students. On the other hand, the quality of
values in both cases. services that the academics are offering is
the values that are characterizing a rigid valued by both providers (academics) and
environment – in the current situation – clients (students).
namely, focus on results, are substituted – Besides, it seems that the professional
in the desired situation – with others that status does not affect the way in which
are oriented towards flexibility like, open organizational values are evaluated. Both
communication (between the members of categories of respondents have described the
the academic community) and creativity, organizational culture as being hierarchical,
innovation and inventiveness. rigid and based on quality, competence,
fairness, honesty, dignity, ethics and tradition, responsible attitude, focus on
integrity rises from the ninth position – in results and competition. The first two values
the current situation – to the third position are perceived positively and are included in
– in the ideal situation. the portrait of how the organizational culture
The situation is almost similar if we should be. The other ones are substituted
realize a comparative analysis between the with fairness, honesty, dignity, ethics and
existent and the desired ten most important integrity, fellowship, accurate evaluation of
values, from academics’ perspective. In this individual’s performance and merit
case, we must highlight that: recognition, cooperation, collaboration and
5 values are situated in the top ten most partnership and open communication
promoted values in both real and desired between the members of the academic
situation. These are represented by community. All these are reflecting the
quality, competence, responsible attitude, respondents’ necessity of developing
fellowship and fairness, honesty, dignity, themselves in a flexible environment in
ethics and integrity. which they have the possibility to use
quality and competence remain the core efficiently what they know, they may have an
values in both cases. exchange of opinions with the other members
the values that are characterizing a rigid / colleagues and they have the satisfaction of
environment – in the current situation – being appreciated for their performance.
namely, tradition, compliance with the
rules and procedures, focus on results, and 4. Conclusions and further research
competition are substituted – in the
desired situation – with others that are The organizational values influence
oriented towards flexibility like, directly people’s behaviour and indirectly the
fellowship, cooperation, collaboration, relationships between the members of the
partnership and open communication academic community, the quality of the
(between the members of the academic teaching process and also its results. Starting
community). from this point, we wanted to determine if
the professional status affects the evaluation
fairness, honesty, dignity, ethics and
of the organizational values. We aimed to
integrity rises from the tenth position – in
know if the students and the academics will
the current situation – to the third position
identify the same values as being the most
– in the ideal situation.
promoted, respectively the most important,
Taking all these into consideration, we
inside the oldest Romanian universities.
sustain that the most important values that
The results have showed that there are
are promoted and should be promoted in
little differences between the organizational
Romanian universities are quality and
values perceived by the academics as being
competence. In other words, both, academics
the most important and the ones identified by
and students, believe that the organizational
the students. In the first place, both of them
culture that is developed in the university is
described the organizational culture as being
based – just like it should be – on proving
based on quality, competence, responsible
and using high competences.
attitude, focus on results and competition.
Therefore, the employees are highly
The competition is perceived more powerful
qualified and know how to develop and to
by the students than by academics. Students
use the competences of their colleges /
have placed it on the third position while the
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Nicodim Liliana
Constantza Ovidius University, Faculty of Economics
nicodimlili@yahoo.com
Negoi Eugen Remus
Bucharest Academy of Economic Studies, Faculty of Commerce – Business Administration
remus.negoi@yahoo.com
Niţu Claudiu Valentin
Bucharest Dimitrie Cantemir University, Faculty of tourism and commercial management,
valynitu@gmail.com
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21% believe that they are for personal use Internet. However, there are certain trends or
only, and 18% do not know how to use these reasons that make Romanian entrepreneurs
networks. On promoting online, 40% of have reservations about access their business
companies surveyed do not have a website, online. Basically, they need to understand
62% do not send promotional emails (so- (without making condoning these social
called spam) and 84% have tried e-commerce media) that the amount of appearances in the
solutions. However, 74% of those who own a media like Facebook, Twitter, LinkedIn,
website claim that it is useful for business. make a positive impact on the image of their
As a study of IAB Romania and companies and not necessarily the direct
eResearch Corp, ran from June to July 2010, quantification of the proceeds from this
the impact of advertisements on the Internet presence.
to users in the form of further information on
the product or service - 37% of cases, 3. Development of business models on the
relaying messages about this - 30% of cases, Internet
this purchase - 15% of the cases. Acquisition
rate after further information is 29%, close to An Internet business must start with
the rate of purchase by making a click on the choosing a model of many existing models,
banner - 30%. as previously analyzed. Whatever, type of
The same study shows that a significant, business model that will be used for the
almost three quarters of users - 72% development of electronic business depends
additional tracking information they have in largely on the nature and specificity of these,
traditional media, and more than a third - and foremost, if you are a new business or if
37%, pursue acquisition performance you are considering building an online
following information in their possession of presence for an existing business.
traditional media. Regarding the source of In this sense, planning electronic business
information in the online environment and has some differences in the approach,
the impact on the purchase decision, the imposing the formulation of responses to
study shows that 45% of users seeking different sets of questions, as shown below
information on blogs and 44% in the forums, summarizes represented.
and that, on social networks. Electronic Business Planning:
VIU study suggests that the impact of a. Starting a new business on the Internet:
online advertising occurs both in the - You can build a business on the Internet
determination of the purchasing decision, on offer in satisfying consumer needs ?
the one hand, and the purpose of amplifying - Who are the potential customers of new
the intention to purchase, on the other hand, business on the Internet ?
whether exercised or not users click on - What will be the impact of promotional
banner. It should be noted, however, that strategies, pricing and distribution of new
Internet advertising can have a negative business?
impact, the opposite of what was intended - The potential market will generate sales and
when the form intrusive, annoying to users. profits sufficient to justify the risks of
In Romania, there is a need for future undertaking a new business on the Internet?
social media presence on the Internet, b. Building an online presence for an
although currently only about 9% of existing business:
businesses have presence on these social - Building a web presence is a logical way
media (Facebook, Twitter, Youtube, etc..), to increase sales and profits for existing
But about 82% have a own web site. business?
Corroborating market potential with - Potential customers online are different
exponential growth trend of online business from traditional clients of the firm?
and the Romanian entrepreneurs desire to be - The new electronic activities which will
present as much in the online environment complement traditional activities of the firm?
that Romania can expect a steady increase in - The business has the financial resources,
online business. Amid the financial crisis and information and time required to build an
preferences Romanian buyers to purchase online presence?
low priced Romanian business will move at Building an e-business (an integrated
least partly their own businesses on the value chain) with the capability to use the
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5. Conclusions
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Nicodim Liliana
Constantza Ovidius University, Faculty of Economics
nicodimlili@yahoo.com
Negoi Eugen Remus
Bucharest Academy of Economic Studies, Faculty of Commerce – Business Administration
remus.negoi@yahoo.com
Niţu Claudiu Valentin
Bucharest Dimitrie Cantemir University, Faculty of tourism and commercial management,
valynitu@gmail.com
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internationally, although attempts by various these directions. If the Digital Agenda for
legislative initiatives and projects to solve Europe sets out well-established lines of
this problem in this respect is noted MCSI action to each of the issues identified,
initiative introducing CERT-RO (National assumed by Romania it can be said that the
Center for cyber security incident response in implementation is done, at least so far, quite
Romania), and supporting initiatives hesitant at both European and Romanian .
specialized organizations such as BSA Although the proposed measures aimed
(Business Software Alliance). particularly the crisis, in fact all crisis is a
- Low investment in network major factor that slows down
development: much greater efforts are implementation. 2011 and the first half of
needed to ensure the widespread 2012 were marked in particular by extending
incorporation of broadband communications the economic crisis, the problems in the
systems, encourage private investment, eurozone and European leaders' attempts to
which will be complemented by public overcome them, and Romania faced
investment for the development of electronic specifically, as in 2010, with consequences of
communications. the crisis reduce the effects of measures
- The need for increased efforts on taken by the Government - the effectiveness
research and innovation: it can be appreciated of which can be regarded as questionable.
that in the field of information and This led to passage of the background of
communication technology in Europe initiatives that have some direct and
investments are made at a fairly high level, immediate effect on the main current
and current efforts are insufficient, problems of the European economy,
particularly given the intellectual advantage including those regarding information
of research fails to transform into innovations technology and communications.
based on market requirements. In Romania, Moreover, a study of the opinion of the
efforts are made punctual, private initiatives Romanians and Europeans at the end of 2012
of research institutes under the aegis ANCS shows the importance given to actions aimed
(National Authority for Scientific Research), at facilitating small business on the Internet,
national research institutes or certain and, moreover, significant differences
universities. between the level of importance given from
- The low level of "digital literacy" and Romania to the European Union concerning
the deficit of qualified human resources: in measures and expanding access to the
Europe it can speak about a severe lack of Internet or to increase consumer confidence
human resources who possess the in online commerce. Moreover, in the
professional skills in the field of information Internet, the degree of prioritization of
and communication technology, and actions for this area is for Romania, the
especially at a sufficiently digital literacy. In lowest among all the seven action areas of
the field of information technology and Europe 2020.
communications, although the current trend The situation is worrying, especially in
of valuable human resources in this area is to the case of Romania, whose economy has
migrate to international companies, Romania been significantly affected by the economic
ranks the top internationally but ranks much crisis, and in particular would need concrete
lower than the rest of the European countries measures to provide some viable framework
in the number of users with an acceptable for maintaining profitability of firms. The
level of digital literacy. situation in Romania shows not only the need
- Encountering some difficulties to solve for greater involvement of bodies, but also
various challenges arising from modern the need to recognize the great potential
society: namely, more easily solve some of offered by Internet businesses for economic
the current challenges in areas such as recovery and crisis.
education, culture, health, environment, etc.
Providing a favorable environment for 4. Measures taken by companies to
business on the Internet maintaining overcome economic crisis
profitability in Europe and in Romania
involves taking effective action to address Beyond the context in which firms
these issues from the bodies with powers in operate, the profitability of a business
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6. References
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Abstract errors.
The information represents grouped data,
In the literature of corporate sorted and classified which were given a
management, the concepts of knowledge meaning through relational connections. This
management and intellectual capital have significance may be useful or not. In
become an important area of concern. organizations, it often becomes embedded
Knowledge management contributes to not only in documents or repositories but also
significant growth of intellectual capital in organizational routines, processes,
through the management ability to solve practices, and norms. Information becomes
problems in an efficient manner with the individual knowledge when it is accepted and
ultimate objective to generate competitive detained as a closed compression to the truth
advantages. This article aims to show what and a valid interpretation of reality [2].
intellectual capital is and how knowledge
management is contributing to its 2. From knowledge management to
development. intellectual capital
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Niţu Oana
Faculty of Economics, "Ovidius" University, Constanta, Romania
oana.oprisan@yahoo.com
Epure Dănuţ Tiberius
Faculty of Economics, "Ovidius" University, Constanta, Romania
epure_dan@yahoo.com
Tileagă Cosmin
Faculty of Economics, "Lucian Blaga" University, Sibiu, Romania
cosmin.tileaga@yahoo.com
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There are theories which bring arguments incumbent firm chooses is too big so that the
against potential competition problem, while potential competitor choice to remain
others bring arguments demonstrating it’s an unprofitable (if what remains from the
efficient theory. Consider a perfectly market after the firms sells all its quantity,
competitive market, a situation where the it’s too little), the potential competitor will
companies and consumers are small and restrain from entering the market. The logical
numerous (sellers and buyers do not weakness of this classical theory ist that once
determine the change of prices). For the potential competitor has entered the
simplicity, assume the fact that everyone are market, it may be profitable for the
using the same technology and there are no incumbent firm to raise the price.
fixed costs. The buyers have all the The theory of limit-pricing is an example
information about the price and quality, of anticoncurential strategy. An enterprise
choosing to buy from those companies which will always take actions top revent potential
sell at the lowest price. In consequence, the competiton from entering the market.
company which sets the price above their Apparently, like in all models of
competitors will not be able to sell anything, anticoncurential strategies, the firm will
while an enterprise which sets the price always take agressive measures of protection,
below the competitors will be able to capture only if they have an effects on the potential
all the market. [1] This means that the competition. The firms should focus on
companies will have to set the prices equal to maximizing the profit in the short term, as
the marginal cost. In the case in which two or long as it is the only enterprise from a
more companies produce identical products, specific market.
they compete in terms of price. For For many centuries, it has been proved
simplicity, assume the fact that the firms that there may be exessive penetrations of
have identical functional costs and there are markets in the industries with fixed costs.
no fixed costs. In this case, the buyers will The reason ist that the profit of the potential
choose to buy the products from the company comes from two parts. Firstly, the potential
which is able to sell at the lowest price. If competition will increase the rivalry, will
there are no constrains in what capacity of reduce the prices and will increase demand.
production is concerned, the competition will Secondly, there is the so called „business-
force the companies to set the price equal to stealing” which means that a big part from
the marginal costs. their profit, will return to their potential
competitos. The potential competitor will
3. Another theory of the potential enter the market if the sum of this two
competition components is bigger than the cost of entry.
Then, the estimation of probability of
Another theory of the potential entering the market of a potential competitor
competition is the theory of „limit-pricing”. and identification of the actual entry on the
This theory sustains the fact that an market are simple tasks than the
incumbent firm may prevent the entry of identification of the unfilfilled efect of the
other companies on the market or to slow potential competition, because it is much
down this process. According to the classical easier to identify the actual competition
theory of „limit-pricing”, the incumbent firm rather than potential competition.
sets a quantity limit, so that the actual
demand to be insufficient so that the potential 4. Competitive advantage
company to avoid the entry on the market. In
other words, the potential competitor notices Understanding the competitive advantage
the quantity of products and servicies that the is another challenge for those who take the
incumbent firms offers, and in the moment in decision in a firm. The ability to develop a
which decides to enter the market, it can be competitive advantage in our days is an
assumed that the incumbent firms will extreme laborious thing, because an
continue to offer the same quantity of competitive advantage which has been
products and servicies. This means that the achived, may be lost rapidly. The companies
potential competitor will be able to sell to the sustain a competitive advantage as long as
„remaning customers”. If the quantiy that the the servicies which they offer, and the way
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they distribute, correspond to some would have practised, the so call „limit-
specification from the customers. The princing” strategy.
competitive advantage is the result of the The potential competition limits the price
difference between the products or servicies sunder certain conditions. Firstly, the
of an organization and those from the incumbent will have to determine the
competitors from the buyers minds. potential competitor that the entry if totally
Generally, the firms must anticipate as unprofitable. In the last example, the
fast as possible how the environment, company has decided to invest in new
structure, culture change so that there are just technology, reduncing in this way the price,
advantages. The competitive advantage has but in the same time reducing the probability
become a subject of movement and the for a new entry on the market. Secondly, the
ability to change location and position. The limit-pricing strategy has to be viable, the
potential strengths and weaknesses must be benefit must overpass the costs. The
seen as strategic resources, because together incumbent firm profit will be lower because
with the objectives of the company will help of the applied policy, caused by appying
to develop the competitional spirit. some lower prices, and not a price whic
In what prices are concerned, comes the could assure a maximum profit.
next question: Does the potential competion The term of potential competition appears
limit the price of a product? Or maybe the in other context, apart from the analysis of
price of products remain high until the actual competition. Some authors make a distinction
potential competitor appears? The potential between the actual potential competition and
competition can discipline the price. Under the percevied potential competition. Potential
certain conditions the incumbent firm will competitor may have the capacity to enter on
have taken the decisions before the potential a market with certain conditions, for example
competitor will take the decision of entering in case of a merger between two companies,
the market, affecting the environment by threatening to raise the price.
reducing prices. For example the incumbent Is there a link between potential
firm, fearing of the entrance of new firms on competition and firm’s initiatives to inovate?
the market will take the technological The incumbent will have access to a new
inovation decision so that it could enlarge technology which will confer a monopolistic
production. A potential competitor will know position on the market. Inovations can be
that the incumbent will have lower variable achived after intense and costly studies of
cost in the future, this low cost menaing that research and development. There are two
the incumbent will set lower prices if the paradigms to describe competition in
potential competitor will enter the market, innovation. According to the first theory, the
than if the incumbent hadn’t invested in new company that spends the most money on
technology. As a consequence of lower research and development will certainly be
prices, and the extra capacity of production, the first to invest. This means that R & D
the potential competitor will have to set some competition is like a kind of auction, where
lower prices. In this way, the price of entry the company that spends the most on
on the market will be lower than the cost, innovation will win. According to the second
being insufficient to cover all costs, finally paradigm, research and development
deciding not to enter the market. expenses will increase the chances for a
Moreover, having an extra capacity of company to be innovative.
production, the incumbent will set the prices Fundamental to leading the company's
at a low level, even if there is not threat from ability to stop other companies entering the
another firm enetering the market. The market, is the ability to take action before
potential competiton has disciplined the competitors. Some of these actions are aimed
price. If there wasn’t for the potential to benefit consumers. These barriers to entry
competition, the incumbent would have taken can be classified into three categories:
the decision to grow production by investing natural, alternative and administrative.
in new technology, having a higher price. Alternatively, natural and administrative
The posibility of entering the market for barriers are classified as exogenous input.
firms, limits the price that the incumbent Natural barriers are due to supply and
demand fundamentals. The trade barriers are,
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for example administrative, legal monopoly Following entry, can cause decreases in
or restriction of entry. current prices, rises in competitors costs that
In general there should be a relationship are already on the market. Size is directly
between levels of entry barriers and leading proportional to the importance of barriers to
the company's ability to set prices above entry, with competitors already on the market
competitive levels [5]. If barriers to entry are reaction. Mass production may be a negative
low, prices should be close to competitive factor for potential company, because they
levels, and if entry barriers are high, prices are required to enter the market at a much
should be close to the monopoly, while larger scale, the investment effort is
intermediate entry barriers should be extremely high. Clumsy effort to retain is
associated with prices located between the another feature of potential companies that
competitive and monopoly levels. For will have to make considerable effort to
example, in the absence of entry barriers, retain current customers and potential for
prices will be located at competitive prices, their products. The volume of capital
unless there is only one company active in required for market entry can be an obstacle,
the market. because to the initial costs, it can add other
If the limiting pricing is used to stop the things related to customers, advertising, or
entry, then when entry barriers are high, even the initial losses.
although prices will be kept relatively low. Mainly, the potential competitive is the
Another indirect method to analyze the effect pressure on leading companies to the
of potential competition is the analysis of possibility of market entry of some other
profit levels. If high profits are in the companies, generic called potential
concentrated markets, the competitive competitors [4]. They may be attracted by the
potential is low. Also, the difference between profits achieved above average in some
the profits of industry and firm level is a very markets by leading companies, possibly due
important element for leading companies in to low competition. When market entry
measuring profit. Furthermore, it is well barriers are high, decrease the threat of
documented that most of the profit is then possible companies that wish to enter the
sent to other employees and suppliers. market. In general, both theoretical and
Potential competition is in itself a threat to empirical analysis confirm that the current
any firm in a market. However, for competition is more competitive than the
consumers, potential competition is potential applied only in certain limited
important because in some cases can stop areas. Theories also suggest that barriers to
taking place between different entry are potential determinants of
understandings of market leaders that have competitive power.
concluded agreements on the practice of a Moreover, potential competition can be
single price. Potential competition may excessive or detrimental. In industries with
develop in principle, in order to adjust market fixed costs, there may be several companies
prices, to increase the quality of products and who wish to enter the market. The threat of
services sold by market leaders, these things entry can be costly, unprofitable in terms of
are achievable by adopting pro-competition company leadership with effects as
policies, something that would benefit all premature and excessive investments in
consumers. Also by adopting these production capacity. Some empirical studies
government policies, will enable market suggested that the entry barriers are critic for
expansion, the range of products offered to the efficiency of competitive potential. Some
consumers by eliminating barriers to entry, studies also showed that the efficiency of
along with amending the legislation to stop competitive potential is different from one
the bureaucracy to protect certain companies market to another. The competitive potential
from the market, and successful potential can be effective on those markets where long
competition removal that would enter the term contracts are concluded and where
market [3]. massive investments are not necessary.
Also, any potential competitors who want The entry of commercial enterprises on
to impose on the market, to conquer a better market plays an important role by keeping an
position, bring new production capacity and active competition for existing firms, by
provide resources, should not be neglected. developing innovation but also by long term
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economic growth. Rules and regulations equipment, the study aims: the volume, the
which mostly restrict the market entry have a structure, the technique level, the quantum of
negative effect upon competition. Moreover, mechanization and automation, the
there are numerous papers that prove that the specialised or universal character, the size of
capacity of a firm to penetrate a market and production capacity and the indicators of
to normally develop depends on the ability to usage, the possibilities of static flexibility etc.
attract external finances for new projects that The analysis of human resources is made in
are bound to happen. relation to the number and structure of
Experience is a decisive factor for the existent personnel, to professional
potential competitor. Fail rates (leaving the characteristics and qualification, to aptitudes,
market) are frequent, more than 60% of the level of experience and specialization, social
new-entries not succeeding in business, climate, relations with unions, to salary, to
leaving the industry in no more than 5 years. ways of motivation, level of work
Intern strategy diagnose is realized by productivity, level of fluctuation etc. Raw
analysingthe potential of enterprise [2]. The and energetic materials resources are studied
analysis of the potential of enterprise must in the same context but from the point of
identify the strengths and weaknesses of the view of existent suppliers, supply and storing
activities of enterprise. As referred before, policy, of the prior factor in supplier-
the analysis must be made through enterprise relation, of level and fluctuation of
comparison to other competitors from the procurement prices, of negotiations aptitudes.
same sector of activity, the real focus being 3.The positioning of an enterprise in
on identifying the relative position of the relation to its competitive factors of which
enterprise in the sector. This analyse offers the most important are: financial force,
an answer to the following question: “What management system efficiency, research-
can the enterprise do better than its development and innovation potential,
competitors?” and it evidences the flexibility level, the speed of reaction to the
competitive advantages and disadvantages of changes of competitive environment, the
an enterprise as well as its distinctive capacity of satisfying the individual
competence. According to the authors of this requirements of clients, the existence of
model of strategic diagnosis, the analysis of experience phenomena etc.
the potential of an enterprise principally
refers to three basic domains. 5. Conclusion
1.The positioning of an enterprise on its
markets that includes the following essential The conclusions dragged from the
aspects : the part of the market hold by each internal strategy diagnosis allow the
commercialised product, the penetration of enterprise to adopt measures for eliminating
products on different geographical areas, the the weaknesses susceptible of compromising
sales volume, the number of clients, the its evolution in the future and it enables the
fidelity level of clients, the profit margins, enterprise to establish the strategy based on
the reputation of enterprise on its markets, valuing its strengths and competitive
the level of technique and quality of advantages. Intern strategy diagnose is
products, the nature and volume of post-sale realized by analysing the potential of
offered services and of commercial facilities, enterprise. The potential analysis of an
the contribution of each product in turnover enterprise must identify the opportunities and
and in profit, the sale prices and their threats found in the environment, the specific
fluctuation in time and zone, the promotion successful key factors found in the domain of
and publicity policies, the diversity of activity in which the enterprise operates.
products, the characteristics of distribution
network etc. 6. Bibliography:
2.The positioning of an enterprise in
relation to its factors of production that refers [1] OECD, Set de instrumente pentru evaluarea
to the analysis of production equipment, Concurenței
human resources, energetic resources and [2] Robert E. Hall, Potential Competition, Limit
raw materials resources which can be assured Pricing, and Price Elevation
by the enterprise. Concerning the production fromExclusionary Conduct, 2008
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[3] Petrovici Virgil, Management Strategic [5] Mats A. Bergman, Potential Competition:
[4] W. Jack Duncan, Peter M. Gintei, and Linda Theory, empirical evidence and legal
E. Swayne, Competitive advantage and practice, 2003
internal organizational assessment, Academy [6] The European Commission, The XXXth
of Management Executive, 1998. Report on Competition Policy, 2000.
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Olteanu Laura
Babeş-Bolyai University, Cluj-Napoca, Faculty of Economics and Business Administration
olsa02892@yahoo.com
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To Danube
Years Seaside1) Spas Mountain Other
tal Delta2) County residence towns3)
localities
42
891 369 828 122 745 1271
2005 26
47
919 377 973 144 818 1479
2006 10
46
932 372 978 101 836 1475
2007 94
48
934 382 1010 103 880 1531
2008 40
50
946 377 1052 141 980 1599
2009 95
52
1014 386 1038 127 1063 1594
2010 22
2011 5003 625 413 1154 110 1183 1518
Source - Romanian Statistical Yearbook 2007 pp. 748-749, Romanian Statistical Yearbook 2009,
pp. 958-959, Romanian Statistical Yearbook 2011 pp. 616-617, Romanian Statistical Yearbook
2012, pp. 591
1)
Excluding Constanţa town
2)
Including Tulcea Municipality
3)
Including Bucharest Municipality and excluding Tulcea Municipality
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growth. It can be stated that the highest in 2005 to 19.41% in 2010, respectively
proportion characterizing the accommodation 12,49 % in 2011. In 2009 this proportion
units is noticed in other cities approximately decreased to 18.56% of the total while in
31% during the analyzed period, the lowest 2008 it registered a 19.28%. The mountain
being in the Danube Delta between 2% and area remained stable with small changes of
3% during this period. The proportion of 19.59% in 2005 of the total, 19.87% in 2010,
seaside accommodation decreased of 21.08% with an increase of 20.64% in 2009, in total
To Danube
Years Seaside1) Spas Mountain Other
tal Delta2) County residence towns3)
localities
10
21,08 8,73 19,59 2,88 17,62 30,07
2005 0
10
19,51 8,00 20,65 3,08 17,36 31,40
2006 0
10
19,85 7,92 20,83 2,17 17,81 31,42
2007 0
10
19,29 7,89 20,86 2,13 18,18 31,63
2008 0
10
18,56 7,40 20,64 2,79 19,23 31,38
2009 0
10
19,41 7,39 19,87 2,46 20,35 30,52
2010 0
2011 100 12,49 8,25 23,06 2,16 23,64 30,34
1)
Excluding Constanţa town
2)
Including Tulcea Municipality
3)
Including Bucharest Municipality and excluding Tulcea Municipality
Regarding the ownership private property units registered representing 83.2%, in 2008
represent a significant proportion by more their number increased to 4222 units
than 80% of total accommodation capacity representing 87.23% of the total. After 2008
during the analyzed period. If in 2005 there this percentage exceeded 90% of the total.
were 3516 private tourist accommodation
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958, Romanian Statistical Yearbook 2011, pp. 616-617, Romanian Statistical Yearbook 2012, pp.
591
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Olteanu Laura
Babeş-Bolyai University, Cluj-Napoca, Faculty of Economics and Business Administration
olsa02892@yahoo.com
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Graphic 1.
Source- Romanian Statistical Yearbook 2009 pp. 959, Romanian Statistical Yearbook 2011 pp.
616-617, Romanian Statistical Yearbook 2012 pp. 591
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between 2008-2010 presented the largest 11.04% in mountain tourism and 13.33% in
decrease -37.35%. Between 2008-2010 this other counties. We can state that regarding
indicator presented significant decreases in preferences for overnight stays in tourist
seaside tourism by -26.77% and by - destinations the most popular were county
21.05% in mountain tourism, in other residences, followed by spa tourism and
counties by -24.33%, while in 2011 seaside-tourism.
compared to 2010 there were the following .
increases: 5.79% in seaside tourism,
Given the average length of stay it can be It can be seen that although towns,
stated that on the top of preferences is spa residences in counties were the most popular
tourism which decreased from 7.3 days in among tourists regarding the number of
2008 to 6.3 days in 2011, followed by arrivals and overnight stays, according to the
seaside tourism where a decline from 4.8 average length of stay this tourist destination
days in 2008 to 4.2 days in 2011 can be holds fifth place after spa tourism, seaside
observed and mountain tourism with an tourism, mountain tourism and other
average of 2.2 days in 2008 and 2.1 days in counties, the Danube Delta being the last on
2011. the list or preferences.
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The analysis of the number of departures from 28% in 2008 to 25% in 2011of the total.
of Romanian visitors regarding type of Ship travel ranks last among the tourists’
transport shows that road travel is preferred preferences presenting a low proportion of
by more than 70% of total departures, less than 1% of the total during the analyzed
followed by a steady increase of air travel period.
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Oncioiu Ionica
Dimitrie Cantemir Christian University
nelly_oncioiu@yahoo.com
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feature of the new mobile phones is the compete with each other as useful description
ability to connect to the net free from time of consumers. To date, no one approach is
and place constraints; thereby permitting fully accepted, nor is it likely that a single
grand theory of consumer behavior can be
consumers to have easy and relatively cheap
devised, that all researchers would agree on.
access to the net via computers. The question However, Chisnall (1995 cited by
then is can’t this situation be avoided or Lancaster and Massingham 2001) states that
controlled? The answer is fairly simple but buyer behavior models have two basic
economically important. Consumption is a functions:
fundamental part of every economic and - Firstly, they describe in simplified form,
social system and changes in consumer the parameters or characteristics affecting the
purchase of certain types of goods and
behavior have varying implications for the
services.
whole society. Also, consumption is in part - Secondly, they allow predictions to be
culturally determined and thus can be held up made of the likely outcomes of specific
as a mirror of society. It is therefore marketing strategies.
imperative that consumers be analyzed to be Consumer behavior is complex. In order
able to serve them better. to investigate it in detail it is advantageous to
In trying to understand consumer break down the purchase process into a
model. The Figure 1 below shows a
behavior, motive which is one of the basic
simplified model of consumer buying
determinants of consumer behavior, becomes behavior.
imperative. The motives that affect consumer Figure 1. Simplified model of consumer
behavior and give direction to the purchase buying behaviour
and use of mobile phone services, including
the perceived value-added services are
grossly under researched especially in Cuba
where the need to collect general information
about the users of mobile phone services has
become particularly urgent in order to guide
industry operations and policy makers.
In the light of the above, this study
attempts to first describe the trends in the
information and telecommunication (ICT)
sector to illuminate the issues underlying
consumer behavior. This, of course, is
predicated on theoretical framework that
articulates recent studies concerning factors
Source: Lancaster. G. and Massingham L.
that seem to affect the choice of a mobile (2001) Marketing Management
phone and operator by consumers, as well as
intention to adopt new mobile phone features The model above is explained as follows:
and services like Multimedia Message Marketing communications from
Service (MMS) and sending e-mails. Finally, companies are always around us. Some of
the paper reports the survey finding along these are retained in memory and we have an
with their managerial and theoretical image of companies and the goods and
implications. services they provide. This may lead to a
motivation to purchase the service or to be
2. Literature review aware of it for future use.
Culture: Culture is the broadest
Many theories, models and concepts have environmental factors and is defined by
been borrowed from other fields as well as Assael (1996) as “Norms, beliefs and
developed by marketing researchers in customs that are learned from society and
attempt to understand consumer behavior. In lead to common patterns of behavior”.
many cases, these ideas overlap and even
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Social class: This is the grouping together regularity of service were found to dominate
of individuals or families who have certain choices between network providers, choices
common social or economic characteristics. between mobile phone brands were affected
Members of the same social class are often by new technology features such as memory
felt to exhibit similar patterns of behavior capacity and SMS-options, more than size.
and hence similar views and interest. The trend will actually be not towards small
Situational factors: These also determine phones but towards phone with better
a purchase and may be a major aspect in capability and larger screens.
purchase behavior. The consumption In a recently research and markets study
situation will directly influence consumer (2011) reveals that Cuba still has the lowest
brand perceptions and purchase behavior i.e. mobile phone penetration in Latin America,
where precisely service is going to be one of the lowest levels of Internet
consumed. penetration, and is among the five lowest in
A further aspect of consumer decision terms of fixed-line teledensity. Cuba's fixed-
making is the process involved in purchase line services remain a monopoly in the hands
and this is divided into five stages. of government-controlled Empresa de
The first stage is when an individual feels Telecomunicaciones de Cuba SA (ETECSA),
a need that a service will satisfy and is while mobile services are provided
motivated to evaluate the services on offer. exclusively by Cubacel, a subsidiary of
People have many varying needs, if a need is Etecsa.
intense, then they become motivated to There remains substantial state control
purchase the service that will satisfy it. over the right to own and use certain
This search for alternatives constitutes the communications services, including the right
second stage of the decision making process to access the Internet. In the same time, in
and it may be external or internal. External case of Cuba, most analysts of marketing
search involves physically looking for would agree that the consumer decision-
alternatives while internal search involves making process is an extremely complex
searching the memory for what a person phenomenon. Even for the purchase of a
knows about a product/service and suppliers single commodity, a multitude of differently
or providers. When consumers have enough weighted factors affect each decision. This
information they will evaluate the complexity is increased as individual
alternatives in the market place. This is the purchase decisions are aggregated because
third stage of the decision making process. the factors and their relative weights vary
The criteria on which products/ services are among persons faced with the same purchase
evaluated vary depending on how many decision. Given this abundance of relevant
brands are available. variables, it would be useful if a method
When products or brands have been could be developed that would identify in
evaluated, one product/service is then advance which variable or group of variables
selected for purchase. This is the fourth stage would be most useful in a given situation.
of the decision making process. However, One way of grouping these important
purchase intention can be affected by factors into relevant categories is to conceive
unforeseen factors like price, influences of of the decision process as affected by four
other people etc. these may lead to no kinds of factors or variables: (1) personal
purchase at all. system variables (e.g. conscious and
Finally, purchase outcomes will either be unconscious needs), (2) social system
satisfaction or dissatisfaction with the variables (e.g. membership and reference
purchase choice. groups), (3) exogenous variables (e.g.
In another recent study by Liu (2002) on relative price and purchase convenience), and
the factor affecting the brand decision in the (4) risk reducing variables (e.g. trusted stores
mobile phone industry in Asia; it was and brands). Categorizing the multiplicity of
revealed that the choice of a cellular phone is possible variables into four groups makes
characterized by two distinct attitudes to them more manageable in analyzing their
brands: attitude towards the mobile phone role in a given situation.
brand on one hand and attitude toward the Studying the consumer-decision process
network on the other. While price and in further simplified if the relative influence
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Regarding of the factor affecting the Respondents were asked to mention the
choice of an operator, the choice of the services they are presently using and to
operator was affected primarily by price and indicate if they intended to use the services in
audibility: around 85 percent felt that the the future. Most popular services used
price the operator charges had affected their nowadays are logos and ringing tones. Over
choice at least relatively much. In addition, 72 percent of the respondents had order logos
audibility was the second most important and tones for their mobile devices. These two
motive: 86 percent felt that audibility had were followed by phone bill inquiry (63%
affected their decision at least relatively had ordered) and call forwarding (56% had
much. Other motives of significance were used). Only five percent of all respondents
properties, friends’ choice of the operator, had never used any of these fours. According
contract type and free calls. Salesman and to the data, the use of mobile phone services
employer were the least important affecting seems to remain at the same level during the
the choice of one’s operator. next 12 months.
A confirmatory factor analysis (table 2) of Additionally, approximately two thirds of
the eleven statements was carried out. Four each group considered that poor usability had
factors explaining 64 percent of the variance had only a little effect on their use of the
of the variable were identified. The factors services. Other factors affecting the adoption
can be labelled as: of mobile services such as small screen size,
1. Features and brand slow data transfer and poor functionality had
2. Quality of the operator relatively low impact on the possible
3. Component in pricing adoption.
4. Influential persons
The first factor has the highest loadings Conclusions
for four variables pertaining to operator’s
features and brand. The second factor This study was conducted to analyze
(quality) has the highest loading for three consumer decision-making process in
variables relating to price, audibility and type particular, and to increase our current
(supply of different contract types). The understanding of the mobile phone market in
factor three can be called components in general. In addition, the study was an attempt
pricing, because two of the highest loadings to cast more light on the much-unexamined
for this factor refer to free calls and family’s area of mobile phone purchase, operator
operator type. The final factor refers to choice, and use of mobile phone services.
employers or salesman’s influence and can The main result of the study indicates the
thus be labelled as influential persons. The following:
influence of the first factor (feature and First of all, the age of purchasing a mobile
brand) is the highest explaining 25 percent of phone among young Cubans has lowered in
the variability. just a few years 18-19 to 14-15.
Table 1. Confirmatory factor analysis on Secondly, the factors underlying the
operator choice factors purchase of a mobile phone were found to be
manufacturer, market conditions and
influential persons. For the choice of
operator, the factors were found to be
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features and brand components of pricing, [4] Koponen Arthur, The Influence of
quality, and influential persons. Demographic Factors on Responses to the
Thirdly, only about 17 percent of the Edwards Personal Preference Schedule,
respondents felt that their use of mobile Ph.D. thesis, Columbia University, 1998.
[5] Scott Bradner, ”Giving away their future”,
services would increase in the next 12
Network World, 2002, Aug 26, 19 (34), 28.
months. Two critical challenges are urgent [6] Evans B.Franklin, Psychological and
here: Objective Factors in the Prediction of Brand
First, service marketers can (and must) Choice: Ford versus Chevrolet, Journal of
distinguish conceptually between the Business, 2007, 32, 340-369.
production and distribution of services. The [7] Hair, J.F, Anderson, R.E, Tarthan, R.L,
problem of making services more efficiently Black,W.C., Multivariate Data Analysis with
and widely available must not be ignored in Readings, NJ: Prentice Hall, 1995.
favour of other elements of the marketing [8] Instant/ MDR (2002). The Worldwide PDA
mix that are easier to deal with. The problem Market: the next generation of mobile
computing. Research Report, (Accessed
of overdependence on one or two elements of
November 5), Available from http://www.
the marketing mix is one that service Instant.Com/Press.asp? ID=364
marketers cannot afford. The sum total of the $SKU=/NO2000ID.
marketing mix elements represents the total [9] Jones, S., Glaunch strategies, early adapters,
impact of the firm’s marketing strategy. why $how to make than yours. 2002.
Fourthly, this discussion points out the [10] Liu, C.M., “The affects of promotional
critical role of product development in the activation on brand decision in the cellular
distribution of services. It indicates that telephone industry”, The Journal of product
making services available is often a product & Brand management, 2002, 11(1), 42-51.
development as well as a distribution [11] Riquelme, H., “Do consumers know what
they want?” Journal of consumer Marketing,
problem. However, the findings contribute to
2001, 18(5), 437-448.
the existing albeit scarce literature on [12] Saroja Subrahmanyan, J. Tomas Gomez-
consumer behaviour in mobile phone arias, “Integrated Approach to Understanding
markets. Consumer Behavior at Bottom of Pyramid”,
At present, the operator market in Cuba is Journal of Consumer Marketing, 2008, Vol.
one of the most aggressively competed 25 Iss: 7, pp.402- 412.
markets, and the competition is driven by [13] Scott M. Cunningham, The Role of Perceived
price discounts. Although price was found as Risk in Product Related Discussion and
an important variable affecting youth Brand Commitment, DBA thesis, Harvard
consumer choice, audibility was practically University, 1995.
[14] Sharma, S., Applied multivariate Techniques,
calling for equal attention.
NY: Wiley, 1996.
We hope that, while technology in the [15] Tarifica report, (Accessed exhorter 17), Press
21st century is playing a key role in release available at: http//www. Tarifica.
modernizing economies everywhere, Cuba’s Com/press/view-release. Asp? Press id=83
short-term gains no remain woefully [16] Wagstaff, J., “SMS: Keep it plain and pitty”,
insignificant. Easter Economic Review, 2002, 165(37), 40-
41.
References [17] http://www.researchandmarkets.com/research
/5b0674/cuba_telecoms_m
[1] Agarwal, R, Prasad, J., “Are individual [18] http://www.enlaso.com/Language_Tech_Cen
differences germane to the acceptance of new ter/Articles/Marketing_to_the_Hispanic_Mar
information technologies?”, Decision ket.aspx
Science, 1999, 30(2), 361-391. [19] http://www.economicswebinstitute.org/essay
[2] Marcus Alan S., “Obtainable Group s/mobilefin.pdf
Measures from Personality Test Scores: Auto
Brand Choice Predicted from the Edwards
Personal Preference Schedule”,
Psychological Reports, 2005, 17, 523-531.
[3] Kuehn Alfred A., “Demonstration of a
Relationship Between Psychological Factors
and Brand Choice”, Journal of Business,
2003, 36, 237-241.
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Pârvu Iuliana
Spiru Haret Universty – Faculty of Financial Management and Accounting Constanta
iuliana.parvu@spiruharet.ro
Mitran Paula Cornelia
Spiru Haret Universty – Faculty of Financial Management and Accounting Constanta
mitran_paula_cornelia@yahoo.com
Ipate Dragoș Mihai
Spiru Haret Universty – Faculty of Financial Management and Accounting Constanta
dragos.ipate@spiruharet.ro
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To elaborate a behavioral pattern and a The research activity is the way to a good
management strategy of partnership process, image on the market, to attract, on this basis,
on the one hand, obstacles must be known students, and, at the same time, the only way
and on the other hand, factors that provide to attract financial resources from the private
the success of a partnership. Specialty environment, that superior education
literature identifies factors that can support institutions have.
academic environment – business
environment partnerships progression. UI3. Diversification of financing sources
Equality
Trust between partners In conditions of manifested
Mutual interests. competitiveness on the tertiary educational
We appreciate that the first step in services market and, with reduction of
initiating a successful partnership is budgetary financing of universities or even
identification of common interest or of the lack of it, the problem of identifying
congruous interests and, on this basis the new funds sources for universities, other
result, according to the specificity and than those coming from basic activity (study
resources of the university. An analysis of taxes, research activities etc.) is vital.
interests of the two categories of
organizations that expresses the object of this Interests that motivates the business
study would be appropriate. environment in partnership founding
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collaborations and rationality specific to [2] Leitch, S, Prosperity for all in the global
market economy, for the universities’ economy – world class skills Londra,
functioning is outlined. It is highlighted, in 2006, pp. 11-12, available at: www.hm-
this context, an obvious challenge to which treasury.gov.uk/leitch
the universities have to answer, namely the [3] Pârvu, I, Perfecționarea managementului
improvement of university management în învățământul superior din perspectiva
system for the purpose of improving teaching cerințelor ergonomice, Ed. Universitară,
and research performance. București, 2009
In the present paper, this problem was [4] Kozlowski, R., Matejun, M., ”Forms of
approached from the perspective of assuring Cooperation with the Business
the favorable framework that sustains the Environment in the Process of
collaboration and the academic environment Technology Entrepreneurship
– business environment partnership for a Development”, Higher Education
suitability of educational services to students’ Managenent and Policy, vol.2, no.1,
current requirements and to work market 2012, pp. 91 - 101
expectations.
As resulted from specialty literature
study, but also from the implementation of
project activities, the business environment
requires a series of difficulties in assuring a
convenient functioning of the collaboration
with the university, and at their turn the
representatives of academic environment
encounter a series of problems in trying to
initiate collaborations with the business
environment.
In front of these records, we considered
useful to identify the motivator factors, both
for the business environment, and for the
academic environment, fact that could
determine the action for the purpose of
overcoming the described difficulties. In
other words, we raised the issue of interests
that each of the concerned parts would have
in order to get involved in a partnership
relationship. As a result, at the level of
academic environment the following have
been identified: the growth of graduates’
employability level; relevant research activity
development; financing sources
diversification. In what concerns the business
environment, the identified interests are:
human resources hiring that participate to
the growth of the organisation’s
performance; activity’s efficiency
through innovative activities; financing
sources diversification.
Refferences:
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Podasca Raluca
Bucharest University of Economic Studies, Romania
Petroleum-Gas University, Ploiesti, Romania
raluca.podasca@yahoo.com
Matei Ramona-Mihaela
Bucharest University of Economic Studies, Romania
ramona.matei1982@gmail.com
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domain, framework expert systems which are Procedural knowledge includes algorithms,
prefabricated systems, suitable for one or heuristic or discovery learning techniques
more types of problems, basic systems such and methods, and knowledge about the
as specialized programming languages or situations in which these methods and
object-oriented programming languages. processes are used. Metacognitive knowledge
Similarities between expert systems and is knowledge about the thought processes and
decision support systems: information related to thinking and how these
1. DSS classifcation (specific systems, processes can be used effectively. Based on
generators and basic systems) is similar to the cognitive dimensions mentioned above fuzzy
expert systems classification (applied systems supposes factual knowledge stored
systems, framework system and basic as data in computer memory in the form of
systems); databases, and also procedural knowledge
2. both types of systems can be used to solve stored in the form of rules (called procedural
many types of problems such as prediction, language programs)[14].
simulation, planning and control; Fuzzy rules-based systems require a
3. some specialists believe that expert modeling decision making through the use of
systems are tools for incorporation into descriptive language based on fuzzy logic
decision support systems; and attributes [15]. These systems allow
4. promoters of artificial intelligence automatic generation of fuzzy models that
consider that decision support systems are a incorporate the knowledge of human experts
syntagma that designates expert systems and integrates the symbolic and numerical
applications. processing in a common scheme. A
Differences between expert systems substantial part of these systems is the
and decision support systems: genetic fuzzy systems in which genetic
1. expert systems are focused strictly on a algorithms are used to study components of
specific problem while DSS applications fuzzy systems based on rules. Genetic fuzzy
have a variable, unpredictable and vaguely systems represents fuzzy systems improved
defined domain of application; with learning processes based on a genetic
2. in terms of processing technologies, expert algorithm. Genetic fuzzy systems was widely
systems use symbolic computation while extended due to their inherent flexibility and
DSS use numerical models and databases; capabilities of the different criteria to reunite
3. in case of expert systems, user attitudes the optimization and realization of “the trade-
towards the system is limited to acceptance offs between interpretability (human
or rejection of general solutions, while for understanding) and accuracy”. Another
DSS the user attitude is free and creative. special category of fuzzy rules-based systems
widely explored in the literature is the fuzzy
3.3. Fuzzy rule-based systems’role for rules-based systems Mamdani for control,
intelligent decision aking modeling and classification. This type of
system have two major components: (1)
Because in most cases, decision makers fuzzy system inference, through which the
facing of decision-making problems under inputs in the system are subjected to a
fuzziness conditions based on incomplete process of fuzzy reasoning in order to obtain
information, researches in the field have the outputs system and (2) fuzzy knowledge
revealed the necessity of integration DSS base, which includes the set of knowledge
with algorithms derived from fuzzy sets about the problem needed to be solved.
theory proposed by [11, 12]. Because the fuzzy inference process rules
According to Bloom's revised taxonomy use rules in the form of IF-THEN, fuzzy
[13], knowledge can have four dimensions: rules-based system is capable to perform the
factual, conceptual, procedural, and qualitative aspects of human knowledge
metacognitive. Factual knowledge are modeling and reasoning without a precise
isolated fragments of information, such as the quantitative analysis. However, the system
words’ definitions and knowledge about requires a rigorous design and model
specific details. Conceptual knowledge execution and also a proper selection of
appear in the form of information systems, parameters.
such as classifications and categories.
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The main advantages of the use of fuzzy career in interdisciplinary economic research
rules are reflected in the elimination of at the European standards”.
unnecessary rules and in the selection of
effective input elements that can contribute to 6. References
performance improving, to reduce the cost of
computing and to obtain a precise analysis [1] Little, J. D., „Models and Managers, The
rules. A major disadvantage of fuzzy systems Concept of Decision Calculus”, Management
Science, vol. 16, no.8, 1970
is the difficulty of building a rules database,
[2] Moore J., Chang M.G., „Design of Decision
which is generally times consuming. Once Support Systems”, Data Base, vol.12, no.1,
carried out the rules database, it requires 1980
continuous adaptation by adding new rules [3] Alter S., Decision Support Systems: Current
consistent. Practice and Continuing Challenges,
Reading, MA: Addison- Wesley, 1980
4. Conclusions [4] Bonczek R. H.,Holsapple C.W., Whinston
A.B., Briefs V., Foundations of Decision
Intelligent decisions requires a superior Support Systems, Academic Press, New York,
scientific decision making process based on 1980
information technologies support in order to [5] Sprague, R. H., Carlson E. D., Building
eliminate errors of human factor and to Effective Decision Support Systems,
Englewood Cliffs, NJ: Prentice-Hall, Inc.,
automate decision-making for programmable
1982
decisions or to assist decision makers for the [6] Holsapple C. W., Whinston A. B., Decision
both. Support Systems - a Knowledge based
In order to achieve this aim, DSS have an approach, West Publishing Company, 1996
important role. In the current business [7] Hartulari C., Decision Support Systems,
environment, characterized by global Academy of Economic Studies Publishing
competition, the decision makers must have House, 2009.
access to a complex set of decision support [8] Feigenbaum E., McCorduck P., The Fifth
tools in order to adopt quick decisions with a Generation, Addison Wesley, Reading
high degree of accuracy. Massachusetts, 1983
[9] Martin T., Kivinen J., „Appropriate
In such context we conclude that the
Automation Integrating Human, Organisation
decisions support systems used for intelligent and Culture Factors”, IFAC 11th World
decision making is necessary on the basis of Congress, vol.1 , 1990
several considerations. [10] Radu I., Informatics and management,
Firstly, these support systems contribute Universitary Publishing House,Bucharest,
to mitigating the limits and restrictions 2005.
(cognitive, communication, time) effects of [11] Zadeh, L. A., “Fuzzy Set”, Information and
facing human decision makers during their Control 8 (3),1965, pp. 338-353
activities in order to deal with those issues [12]Zadeh L.A., Fuzzy Sets, Fuzzy Logic, Fuzzy
which are characterized by their importance Systems: Selected Papers, World Scientific
Publications, New York,1996
and complexity.
[13] Anderson, L., Krathwohl, D., A Taxonomy
Secondly, the implementation of these for Learning, Teaching and Assessing: A
systems aims to provide feasible information Revision of Bloom’s Taxonomy of
in real time needed to support managerial Educational Objectives, Longman, New
decisions making process in order to shape York, 2001
an organization more profitable, more agile [14] Siler,W., Buckley,J.J., Fuzzy Expert Systems
and more flexible, able to faster respond to and Fuzzy Reasoning, John Wiley & Sons,
external challenges. INC, 2005
[15] Cordón, O., “A historical review of
5. Acknowledgments evolutionary learning methods for Mamdani-
type fuzzy rule-based systems: Designing
This work was co-financed from the
interpretable genetic fuzzy systems”,
European Social Fund through Sectorial International Journal of Approximate
Operational Programme Human Resources Reasoning 52, 2011, pp. 894–913
Development 2007-2013; project number
POSDRU/107/1.5/S/77213 „Ph.D. for a
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Popa Simona
Valahia University, Doctoral School of Targoviste
simonetapopa@yahoo.com
Constantinescu Lucreţia Mariana
Valahia University, Faculty of Economic Sciences of Targoviste
maraluconstantinescu@yahoo.com
Ionescu Romaniţa Valentina
Valahia University, Doctoral School of Targoviste
rominaionescu@yahoo.com
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culture rather as a matter of context than as a Most of the studies carried out in this
set of procedures, then the concept can be sense support the idea that efficient strategies
used as an analytical instrument – as a way of must not just be aware of the complexity of
analyzing the current strategies, practices and the institutional and environmental changes;
principles, thus creating the basis for a future they also need to embrace them, considering
consolidation [13]. In this sense, a quality that efficient strategies need to be significant
culture analysis could very well start with helping one understand what is going on,
“[...] the question about the way in which a through the integration of the meanings and
higher education organization meets the values already constituting a specific and
challenge of consolidating quality in a certain client-oriented culture and a marketing
domain, for instance the domain of teaching environment for the institution.
and learning or the research domain” [8]. The consolidation of a strategic dimension
The first two stages of the project of the institutional quality culture is
“Examining Quality Culture in Higher supported by values such as:
Education” (EQC) have demonstrated that, • institutional identity and values are defined
although most higher education institutions in strategic documents, or in the strategic
have a strategic document, either on an document, delineating to a certain extent an
institutional or on a faculty level, not all the institutional ideal;
strategies have the same success: the most • Strategic goals admit the difference
efficient strategies are those assuring clear between the improvement of the internal
objectives and responsibilities [14]. structures, processes and results and the
Legitimacy can be found by joining indicators’ improvement;
strategy and institutional identity and it is • Institutional strategies in the quality
important to accept that each institution does domain, implementing change on an
not have to establish the same quality-related organizational level, to meet the external
objectives, although in many national quality assurance demands.
contexts there is a tendency to align external
and internal quality assurance processes. 5. Conclusions
However, the issue of priorities remains
unsolved and it is even necessary to realize “A quality culture development requires
partial synergies between different types of time, effort and is closely related to values,
reasoning, for instance using the external beliefs and a cultural determinant that cannot
feedback as a lever for the internal reforms. be changed rapidly”[15]. This cultural
Adhering to the external standards (for element has a strong political dimension,
example, in the context of accreditations or quality assurance referring to power and
of the national frameworks) requires different ideology, reason for which it is important to
strategies and means compared to the focus not just on strategies of educational
approach of the internal challenges and the services quality and adequate quality
principle of functional differentiation (for assurance instruments [14].
instance keeping different entities for After a number of years of functioning of
different goals) can provide solutions on an the homologation and accreditation system, it
operational level, yet it will not solve the is legitimate to ask whether the results
potential strategic conflicts. obtained by the higher education institutions
All the three stages of the EQC project mark a relative process in point of institutional
have proved the importance of the temporal quality, namely a more complete satisfaction
dimension. In the context of institutional for its beneficiaries-clients (students, parents,
quality assurance, “unplanned” changed is society) and for the institution’s personnel, a
usually described as a problem. more pertinent integration in the collective life
Paradoxically, the processes targeting a and operational results at levels comparable to
continual improvement have a particular the international references. For this reason, it
tendency rather towards stability than to would be necessary for universities to accept
dynamism, which usually results in the kind that the educational process, once designed
of bureaucracy that has affected the quality and set into operation after homologation or
assurance perception. accreditation , must be permanently submitted
to continual self-evaluation and improvement.
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Popovici Norina
„Ovidius”University, Faculty of Economic Sciences, Constanta
norinapopovici@yahoo.com
Moraru Camelia
Academy of Economic Studies, Bucharest
cami.moraru@yahoo.com
Popovici Veronica
„Ovidius”University, Faculty of Economic Sciences, Constanta
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17
25
41
49
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65
73
81
89
97
Nationality 4,74 0,43
Zodiac 4,94 0,08 Source: own processing
Source: own processing
To highlight the differences between men
It can be seen that the respondents opted and women in the table below are the
for education, experience, professional selection criteria, along with the average and
knowledge and skills, qualities, individual variance for each criterion:
skills as the most important criteria, Table 3. - Answers regarding selection
averaging about 2. It is natural that skills, criteria
knowledge, or habits to be crucial elements Selection criteria Sex A V
in terms of recruitment, because in fact, these M 2,24 1,11
elements contribute to decisively fulfill Studies
F 2,19 1,78
effectiveness objectives at all levels of the
M 4,80 0,30
company. Employees considered as Nationality
unimportant criteria nationality, gender and F 4,69 0,52
zodiac, their average being about 5. M 4,00 1,32
Appearance
Regarding dispersion, if it has a low F 3,54 1,71
value, that mean employees are focused on Experience in the M 1,95 1,07
the same answer, however, if the dispersion field F 2,42 2,01
has a high value, each employee has a Professional M 2,27 1,46
different value criterion[4]. knowledge F 2,31 1,87
The chart below illustrates that almost all
M 2,44 1,32
employees have opted for the same answer Qualities, skills
(sign), in this case the majority view that this F 2,46 1,30
criterion is least important. M 3,20 1,47
Age
F 3,17 2,51
Relationship or M 3,22 2,17
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employees;
is given a relatively low job
descriptions as a tool for development
business employees;
main tool for planning human
resources is the spontaneous human resource
needs;
main criteria used in recruitment and
selection are: experience, education,
professional knowledge, skills, individual
skills;
workplace training is exclusive form
of training in relation to outside company;
individual and organizational career
planning are deficient in business activities
lack of participatory management.
5. References
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Preda Costel
Valahia University of Targoviste
florinuniv@yahoo.fr
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6. References
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Preda Costel
Valahia University of Targoviste
florinuniv@yahoo.fr
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strategy to ensure that they understand and was made special training before. The team
accept the request. gathers to discuss about the institution,
During the employee activity department, job or specific issues in order to
development, a kind of value progression can investigate the factors that cause low results
occur in the sense that, when they are young, and to make recommendations to
insecure and try to triumph, employees may management.
value things that represent the needs of the A strategy commonly used in NFA
first level in Maslow’s hierarchy, but once ROMSILVA involves placing employees on
they get to control these needs, they are positions of competition. It starts from the
becoming more concerned about meeting the idea that people will be motivated to increase
needs of upper-levels and this is the reason their performance where they will have the
why managers of change, not risking to opportunity to win.
address the needs already satisfied and that Another way to change the current
no longer concerns employees, must be situation is the transition from one situation
aware of these needs. of deprivation of information to a situation of
NFA ROMSILVA managers can information enrichment. The provision of
influence employee behaviour not just by information can form the basis of a kind of
using direct interaction, but also by changing informal competition between NFA
the nature of the working environment, based ROMSILVA, or may form the basis of
on the assumption that the factors of the rewards for those involved who can feel the
situation changed will get in touch with the satisfaction of noticing an increase in the
motivational forces of employees, level of performance.
determining the performance increase. Most programs to modify the behaviour
One way to improve the work of employees are using the provision of
environment is increasing participation in information as an important element in
planning, setting goals and making decisions getting higher performance. As they reach
processes. Such system is the management the goals for improved performances, the
by objectives. manager of the NFA ROMSILVA seeks
Another way to improve a monotone changing in terms of results, presents the
working environment, devoid of challenges results to the employee and shall encourage,
and unmotivating is the job enlargement praise and support him. By this combination
program that has divided the factors of work of praise and recognition with the provision
in satisfaction factors and motivators [2]. of information in the NFA ROMSILVA it is
People can be satisfied or unsatisfied by obtained a style change for many managers,
factors such as salary, benefits or working who spend more time interacting with their
conditions, but these cannot motivate the subordinates. This is a sufficient explanation
employees of NFA ROMSILVA. Motivation for the success of the behavioural
appeals to deeper feelings of growth and modification programs in the NFA
development. ROMSILVA.
Giving greater attention to factors of Another way to improve the human
satisfaction in a situation (pay, working resources management within the NFA
conditions, human relations) can determine ROMSILVA relates to improving
people to be more satisfied (or less satisfied), communication. Communication is one of the
but will not increase performances only if most challenging issues of the work of a
there is job enrichment. The job, by its manager. The source of most problems of
structure, should provide more challenges, communication within the NFA ROMSILVA
the opportunity for personal and professional is represented by the difference between the
development, greater recognition and a content of the message or the impact that the
stronger sense of contribution. manager intends to convey and how other
If job enrichment option is chosen, the members of the organization receive the
manager of NFA ROMSILVA must decide to message.
allow employees to review their work and One of the best ways a manager can
see if they can create their own working become more efficient is to find out what
environment. Employees are allowed to work impact his actions and words have on those
in teams, usually led by a team leader who around him [3]. The key to getting to know
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the impact of the message over the others lies own message on others. This requires
in the challenge of a reaction from their side, sensitivity, due to the fact that most people
the feedback, which implies a risk. In are afraid facing a direct confrontation with
personal relationships, people are becoming anyone asking about their performances. It is
more open to others as they gain more not easy for a person on a inferior
confidence in each other. In the hierarchical position in an institution to deal
organizational context, things change due to, with a person with a higher status, to give an
on the one hand, the fact that the manager unsolicited and perhaps unwanted feedback.
holds the power, and on the other hand, the The risks involved, from the perspective of
fact that information is distorted from their the person on the lower level, are so great
passage through informal channels of that, if the situation remains intolerable, the
communication. safest strategy is to rebuke and to hope that
There are methods of development of an the passage of time will improve existing
effective communication strategy that conditions [4].
facilitates managers the insurance of fair Another way to improve the human
perception of their messages, as well as resources management within the NFA
methods of obtaining the feedback needed. ROMSILVA is the training and improvement
Also, we consider that there should be of employees aiming to identify, assess and
feedback not only between manager and by planned instruction to facilitate skills
subordinates, but also between the manager development that allow individuals to reach
and the other managers. When discussing performance targets relating to present or
with their hierarchical superiors, managers of future posts.
NFA ROMSILVA are facing many of the After an employee has been assigned to a
problems faced by their subordinates when post, he should use several types of training
given the opportunity for feedback, when to be allowed to update his skills. For some,
discussing with their subordinates, managers the focus should fall on technical training
must be aware of the standards that (the person is helped to improve his skills in
subordinates must achieve, the degree to using the equipment or technical programs).
which an employee must improve its For others, the training should involve
performance and the consequences of a interpersonal skills (the ability to work with
possible failure. Communication having as others) or cognitive (the ability to think
subject the manager’s expectations regarding clearly, to plan or to solve problems). Other
performances should start before engaging programs are sometimes called training
the subordinate. programs, although they are in fact
In the current institutional life, employees educational programs, whose purpose is to
have learned to disguise and hide their extend a person’s vision or understanding of
feelings, especially to those occupying high the issues and problems that are often
positions in the hierarchy. Therefore, it is essential for human development in the field
often difficult to know what the real impact of management or in certain positions within
of the message on others was. The result can the company [5].
only be a polite smile, a verbal agreement or
an apparent consensus, the transmitter 3. Training and improving goals of
assuming, wrongly, that these signs of employees
external feedback from the receiver represent
the truth. A person who has good Within the NFA ROMSILVA, the
interpersonal communication skills can training and improving goals of employees
determine and check the real impact that his should be:
words have had, and may determine whether helping them to achieve a peak
the eventual problem derives from a inability performance in achieving their work;
of communication or from the filtration preparing them for the future
system of others. development of job.
In the process of improving performances Training and improvement of employees
related to communication, probably no skill can be carried out both in the workplace and
is more important than to receive fair and outside the company, using a variety of
accurate feedback regarding the impact of the methods and techniques such as:
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Rudych Lesia
Poltava University of Economics and Trade
rudich_82@mail.ru
1. Introduction 2. Contents
Competition as an integral part of the Further to the researches, the active study
market economy certainly appears in the of the problem of formation and development
structure of organizations of consumer of human potential in the domestic scientific
cooperatives. Taking into account the degree literature is highlighted in the works of such
of differentiation of organizations of Ukrainian scientists as D. Bogynia, N.
consumer cooperatives and their integration Dudina, N. Ilchenko, T. Kostyshyna, G.
with the subjects of agricultural production Kulikov, L. Lisogor, V. Nyzhnik, M.
the competitive environment can not be put Semykina, E. Libanova, V. Shamota, G.
aside. Besides we must keep in mind that Dmytrenko, M. Dolishniy, A. Chuhno, O.
during the transformation of the economic Grishnova, A. Kolot, A. Korovskyi, V.
system processes of development of subject Petiuh etc.
of consumer cooperatives are activated which Peculiarities of human development in the
are able to act rationally and engage in system of consumer cooperation were
competitive relationships. Possibility of researched by O. Velychko, L. Voynash, Y.
competitiveness of organizations of Gavrylenko, L. Drobysh, S. Semiv, L.
consumer cooperatives is manifested in the Stepanov, L. Shymanovska-Dianych etc.
competition with other similar entities. The On the social-economic development
presence of related objectives and resource organizations of consumer cooperatives
limitations of mobile processes lead to the currently affect three main factors: market,
intensification of competitive processes, increased competition in life quality and
during which the possibility of innovation and production factor. These
competitiveness organizations of consumer factors require additional investments,
cooperatives is realized. increase of employment and solving of other
The steady conceptual apparatus has not strategic objectives.
been formed in the theory of competitive Studies show that the result of the
organizations of consumer cooperatives yet. formation of human potential in the context
Competitiveness is determined by complex of the competitiveness of enterprises of
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consumer cooperation will depend on the fact their role in cooperative activities are
of implementing strategic approaches. identified in the "Strategy of Consumer
Solving of this problem requires the Cooperatives in Ukraine for 2004-2015
consolidation of efforts of government years" approved by XIX Congress of
institutions, the system of consumer Consumer Cooperatives in Ukraine in 2004:
cooperatives, civil society and the business • strengthening the promotion of
community for supporting the rural cooperative ideas for the revitalization of
population and the activation of involvement cooperatives;
to the institute's membership of consumer • implementation of the program of the
associations and unions. Institute of members of consumer
From our point of view the policy of associations and unions, their active
governmental institutions should include: participation in the management structure of
- measures for accelerating economic and cooperative control system;
political reforms aimed at comprehensive • providing of organic combination of
improvement of socio-economic situation in personal, collective and public interests by
rural areas, providing public access to basic acquiring member of Consumer Societies of
social services, economic resources, etc.; corporate rights, the establishment of
- providing equal access to qualitative cooperative enterprises, a large share of
health services regardless of place of economic activity, financial resources, a
residence, property status and other cooperative benefits;
characteristics which require implement the • provision on preferential basis to
reorganization of the health system and the members of consumer associations and
restructuring of inefficient rural district unions multilevel cooperative education,
hospitals in centers provide primary health professional development opportunities and
care; training cooperative assets, access to new
- modernization of social support and information technologies;
address principle of its providing. • creation of centers of spiritual life in the
As analysis of key financial and economic cooperatives, amateur competitions, sports
indicators of the economic system of events for developing harmoniously
consumer cooperatives shows the system is developed and spiritually wealthy individuals
gradually emerging from the crisis (change on the basis of recovery of national culture,
activities in some areas) and improving the spirituality, respect for ethical, legal, family
efficiency of its operation. The argument of norms, values, personal life;
this fact is the increase in activity, increase of • development of strategies and
the size of existing assets, and increase of the approaches of cooperatives, participation in
size of working capital, net profit growth of elected bodies, management and control [1,
others. Therefore for stabilization of the p.18].
cooperative system in the future the This approach specifies that the role of the
management of all types of resources must be Institute's membership should be occurred in
improved and the scope of activities by three main areas: economic participation,
finding new shareholders must be expanded. management and control of social services
Today as for the long-term development (figure 1).
of consumer cooperatives in Ukraine the In accordance with the social features of
motto "System is for members" is actual consumer cooperation should be coordinated
which according to the Strategy primarily with the economic system by the use of the
involves "the subordination of economic and new feature and formed market mechanisms
social business ideas and objectives of that contribute to the successful
consumer cooperatives; non-profit nature of implementation of economic-financial,
consumer societies and organizations ... industrial and technological, managerial,
increasing of the role of consumer commercial activities and the achievement of
cooperatives in social transformation in the financial stability at the level of individual
country "[1, p. 8]. entities. For the realization of its social
Besides the main directions of purposes of cooperatives the financial
improvement of the shareholders of stability must be achieved, the
consumer societies in Ukraine for increasing interconnection and cohesion of social
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mission and commercial activities of their through specific mechanisms that provide the
organizations and enterprises must be implementation of the economic-financial
provided; the social welfare of members of and managerial activities.
the cooperative movement must be formed
Enhancing the role of the members of the consumer associations and unions
Figure 1. Increasing of the role of members of consume associations and unions [1]
According to the results of our survey, we Based on selected issues the specific
have identified the main problems that hinder measures to improve the incentives of
the inhabitants of rural areas, regions and potential shareholders were offered (table 1).
cities to enter into the consumer societies.
Table 1
Мeasures for enhancing incentives for shareholders of organizations and enterprises of the
system of consumer cooperation in Ukraine
[compiled by the author]
The problem of engagement with The approaches of engagement with
shareholders shareholders
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Raising the level of wages, bonuses and cooperative payments (dividends) for members of the
consumer societies, the use of discount cards
Figure 2. The main directions of work with shareholders which can be taken at the level of
organizations and enterprises of the system of consumer cooperation in Ukraine [compiled by the
author]
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Rus Mihaela
Faculty of Law,Administrative Science and Sociology
Ovidius University,Constanta, Romania
psiholog_m@yahoo.com
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can be called facet satisfaction and is satisfaction. The first issue relates to
defined as an employee's tendency to be aspects of work itself: the freedom to
more or less satisfied with various aspects choose how to fulfill their duties, level of
of his work. In this respect, the most responsibility required by workstation,
relevant attitudes towards work are applications and variety of tasks. Extrinsic
contained in a relatively small group of satisfaction refers to those aspects of work
facets: work itself, pay, promotion, which are background task itself: salary,
recognition, benefits, working conditions, working conditions, working hours,
supervision, coworkers, and organizational procedures, industrial relations,
policy. occupational safety [9].
The second is the general satisfaction, Job satisfaction is legally psycho
and is actually a general indicator, "outcome gap between what individual get
amounted to a person's satisfaction with her that reward work and what he expected I
work that crosses different facets [5]. should get, when rewards are equal between
Overall satisfaction is in some sense an the two results in a state of complete
average or overall attitudes that have satisfaction."[10] State further states that
individuals from different aspects of their when that employee is below the expected
work, so that two people can express the gain is deploying a state of dissatisfaction
same level of overall job satisfaction, for which is all the greater as the difference
different reasons. More specifically, they between aspirations and what they get is
might be compensated attitudes towards higher.
different facets of their work.
Organizations measure job satisfaction 4.Methodology of study
primarily because it is assumed that this
would be directly related to the immediate 4.1Research Objectives
goals (short term) of the organization for
the purpose of reducing costs and The objectives of this research are to
increasing performance, reducing determine to what extent perceived
absenteeism and errors. Long-term leadership style affects job satisfaction.
orientation, aiming to bring employees to More specifically, what is important is
the organizational environment and which of job satisfaction dimensions are
improving scientific understanding of the influenced by how employees perceive the
organization[8]. But when managers leader's behavior. A second objective is
discovered that there is no correlation finding how the self influences job
between job satisfaction and performance satisfaction and are impacting on its size.
level, their interest in this direction
decreases. Also, measuring job satisfaction 4.2.Research hypotheses
in different working groups gives managers
the ability to detect groups express HS1. Perceived leader behavior
dissatisfaction and by the development of influences job satisfaction;
plans to remedy the situation. HS2.Autoprezentarea (employees tend
Job satisfaction is a positive emotional to appear in a favorable light) influence job
response, determined by labor satisfaction.
requirements, may be the result of a feeling
of satisfaction that the individual derives 4.3.Reasearch instruments
from work performed what he expects from
work, achievement expectations about the For this study we used three assessment
job. Also this dimension can be seen as an tools: LBDQ (Leader Behavior Description
overall approach can be applied to different Questionaire, Stogdill, 1963), Scale
facets of employee work. Considering this Management impression, managers and
aspect managers may omit other hidden employees (Singh & Vinicombe, 2001) and
dimensions because they assess overall JSS Global (Job Satisfaction Survey-
employee satisfaction. Global, Lamond & Spector, 1999 ).
Warr (1987), makes a distinction
between extrinsic and intrinsic job
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4.4. Participants of study work, and they are satisfied with the work
that render.
For this study we used 94 subjects from It also shows that employees are less
an airline, which were applied three interested in their possible promotion
assessment tools with a mean age of 42.4 seeking challenging tasks that can be
years, 76.7% women and 23.3% men. distinguished and agrees to give them to
solve complex tasks (even in situations
5. Analysis and interpretation of results where they believe they can accomplish
only half of the work requested) when
As you can see the scales scores self- resources are satisfied that the company
promotion and networking success are provides, the nature of the physical
below average which means that employees environment in which they work and
do not have the desire to actively interact training programs.
with his direct supervisor to communicate Since employees are satisfied with the
what they have achieved and not involved training programs and the physical
in other activities than those initiated by the conditions of work are not interested in
company to be noticed by influential people collaboration with senior people holding
who could support career. them and not participating in corporate
uninitiated to search for key people who
Table 1. Correlations between scores obtained could support career.
at JSS-World and Scale MI According calculated correlations can
scale Perf Apra Preg Inte say that employees who perceive their
Sal .155 .085 .081 -.008 leader as concerned about the overall
Abb -.012 .052 .043 -.080
condition and their position are satisfied in
Bcol .333* .039 -.079 -.030
Sup .187 .053 -.010 -.023
terms of salary, of how they work is
Rec .195 .130 .047 .014 appreciated, promotional conditions and the
Nat .322** -.007 -.151 -.043 amount of work performed.
Vol .184 .111 -.008 -.034 On the other hand, when the leader is
Col .295** .129 .082 .182 perceived as clearly defining its goals, and
Res .445** .310** .1137 .150 bringing to the attention of subordinates
Instr .322** .205* -008 .242* what is expected of them, employees will
Dezv .108 .030 -009 .098 appreciate the salary of the prizes it offers,
Prom .117 .076 .043 .092
the control showed leadership received
Sig .314* .146 -.029 .159
recognition, workload, training
Cond ..371** .237* .039 .237*
Reg .308* .140 -.030 .167
requirements, job security, working
Munc ..240* -.049 .021 .117 conditions and the rules you must follow to
Org .101 -.086 -.009 .100 fulfill its duties.
Also, when the leader is perceived as
According to the table above it can be acting as a representative of the group,
said that employees have a reduced employees will be satisfied in terms of
tendency to fight to achieve goals which wages, the rules which govern their work,
they have set on their careers, contributing general work and organization in general.
innovative ideas and exceeding Employees will be satisfied in terms of
expectations superiors even if they are salary and in situations where they perceive
satisfied with collateral benefits offered the leader to be able to support uncertainty
company (holidays, paid sick leave, and postponement without becoming
flexitime, etc.) relationships with anxious or nervous, as effectively using
colleagues, the nature of work (type of persuasion and discussion expressing strong
tasks performed), the resources that the convictions as giving subordinates the
organization makes available (tools, opportunity to take initiatives , make
equipment, financial resources ) training decisions and act and not least it is
programs that are offered, work safety, perceived as demonstrating foresight, the
rules and procedures that must comply in ability to provide accurate results.
order to fulfill their tasks, the physical Subordinates are satisfied with other
environment in which they carry out their benefits such as awards, when they perceive
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countries but corporations and brands and company. The importance of this channel
companies are born and die with a high rate. comes from the fact that 20% of their free
Neither the pharmaceutical industry has not time, people spends on the Internet and the
remained immune to this global trend, promotion budgets for this channel is 5%.
especially since the pharmaceutical Often, is stated that a website is like a
companies are collaborates with energy business card for a company and also a type
companies and banks. of promotion that requires lower costs. All
Competition is fierce between companies, pharmaceutical companies have their own
technologies are the same so, quality website where they often are publishing
standards are respected everywhere, rarely information about medicines, including those
happens even an original medicine does not whose promotional media is prohibited.
have a competitor with similar therapeutic There are also sites created for a single
effect. In this context, focus has shifted to the pharmaceutical product, such as the Novartis
company's ability to differentiate by www.exelon.com. [5].
competition, to create a favorable image in It is noted that while promoting the drug
the eyes of specialized medical staff and the is banned in the country, and because the site
general public, of which potential patients is external, does not violate the Romanian
that may occur. Often the patients reported low. Is useful for patients, doctors and
better results after taking a drug of a company, thus indirectly promote their
company what has a good image on the product.
market, in spite of bioequivalent drug Blog marketing. The blog is a tool of the
competing with it. [1] Internet, a tool that allows a dialogue, a
A proper marketing strategy is based both debate between a transmitter and several
on information and data relating to receivers. Its advantages are speed
competition and own brand as well as communication and response that is directed
strategic marketing ability to correctly not to a single point but to all, thus the
interpret these data and reaches the information can be used by all interlocutors.
conclusion. Usually right marketing strategy The blog is a communication tool, a
is based on a very simple idea and very easy marketing technique, a listening device and a
to understand and competitors precisely for way to interact directly with customers.
these reasons it rejects the idea. Further, Experts are saying that the company
proper marketing strategy is to answer the management can learn a lot by reading blogs.
question: what would be preferred my So, the company can learn what are saying
product and not the product of competition? the patients, the specialized staff and even the
The continuing evolution of marketing general public about the company's product
combined with existing development or about the company.
environments and new ones, resulted with the Shopper marketing. It is a marketing
birth of practice marketing methods, technique applies only for the OTC drugs.
completely unknown a decade ago. The concept is defined as the new
Pharmaceutical companies also take part in methodology which helps to understand the
these trends, and when the law does not customer behaviour on the market and help
allow them to promote their products, choose to develop communication strategies at point
the option to promote their own image. [3] of sale, or in pharmacies. The mechanism of
Digital marketing is by definition well this type of marketing plans to see the
targeted. Ability to communicate "one to pharmacy and the drug from patient's
one", personalized and receive a response perspective, the customer who is buying a
from the target audience allows measurement product from the pharmacy. Thus identifying
of the effectiveness of the product and its what patient's real needs, what are the
promotional campaign, and, why not, adjusts barriers between him and targeted drug, how
the campaign. it feels, what enjoys and triggers the whole
This kind of marketing is at the process and what its influence purchasing
beginning; although many large companies decisions, why he is buying a product or not,
have interactive websites which except of how he perceives a similar product to the
public information it also have an interactive competition. Another shopper marketing
aspect witch approaching the public by the
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technique is the technique that uses visual of saving intensely used in the business
devices that record customer focus. world.
Through this mechanism we can find out
exactly where the customer first looked at the 3. Communication policy in the
shelf, at what focuses its eyes on a product, pharmaceutical marketing
what he wanted to read or what element of
the product box was attracted more. Through The whole effort of a company and
these surveys we can identify factors that especially its results should be made known
may cause the patient to choose to purchase to those targeted as customers, especially
an OTC medication to the detriment of factors of influence in the domain (doctors,
competition. That is why medicine shelf pharmacists). Communication is a process
visibility is an advantage for manufacturing that includes at least four elements: source
companies are willing to pay. (the issuer), the message, the communication
Viral marketing. It is a modern channel, the recipient (receiver) of the
technique by which a company makes its market.
customers to talk about it, about its products The issuer in this case is the
to recommend those products. The company pharmaceutical company who transmit its
must show a certain understanding of message through specific media (advertising,
potential customers and try to get into the PR, sales promotion). Receiver can be the
social psychology of the environment in target audience or if the law not allows,
which they live, in order to provide value specialized staff that can prescribe or supply
through information that they provide to the product. The message can be a text
them. If more and more people send further message written or read, an image, a gesture,
marketing message, increasing the number of a radio broadcast, television or the internet.
receptors is exponential. Strategy is Channels (media) are the ways in which the
extensively used by pharmaceutical message it is sent to the receiver.
companies because the lawmaking in the area The media and the advertising
of pharmaceutical advertising, they find as a The television is characterized by a wide
way to promote their image and brands. It is audience, high visibility, and credibility,
certain that large companies are having combination of image, colour and text. It also
reputation and positive image that is has great importance the specific of
transmitted from person to person, so no television, the audience that is addressed to,
costs. existing televisions that have general
Incentive marketing. It is a strategy by audiences and niche televisions addressed
which a company manages to strengthen the only a segment of the population. The
relationship with partners and customers disadvantages of television are first of all
through gifts. It can be efficiently in terms of related to the price paid for the advertising
cost because there is offering a unique spot because the cost depends on the
experience and create a lasting impression audience and on the audience.
when it is performed in a surprising way. Newspapers readers have a basic constant
This method is used by pharmaceutical between tens of thousands and hundreds of
companies in their relationships with doctors thousands at the most popular in Romania,
and pharmacists and contributes to building frequent appearance and the emergence of a
benefit collaboration. The collaboration will national coverage and the cost is much lower
be materialized by choosing drugs produced than of television commercials. The
by the company o the detriment of disadvantages of this channel are short –
competition. lived, limited reproductive capacity and
Fusion marketing. It is a strategy in quality, the need to incorporate the messages
which two companies choose to support each several times and the passive nature of
other, thus giving more visibility to both newspapers.
companies at low costs. Many times, the Opposed to newspapers, magazines aimed
pharmaceutical companies choose to produce specific socioeconomic groups, provides a
a medicine in collaboration and its promotion high quality reproduction have longer life
is done also in partnership. In this way, both span (a few weeks). The shortcomings of this
companies are reducing their costs, as a way channel are: higher price for advertising,
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Simoni Smaranda
University of Piteşti, Faculty of Economics
tsmaranda@yahoo.com
Mihai Daniela
University of Piteşti, Faculty of Economics
dana_mihai2005@yahoo.com
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Figure 1. General scheme of the organization system in ecotourism, for strategies and interests of
major involvement on vertical and horizontal
Coordination-strategic
orientation meso-system
(locally, regionally)
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leisure and sport (various sports facilities, resources. These structures also provide
natural ski slopes, swimming pools, horse residents the opportunity to enter the
riding etc.), handicraft products specific to ecotourism business.
each place, depending on the existing tourist
R1
Systems of
service and good Organizations
R3 Organization R2 infrastructure
production and infrastructure
trade (sectorial)
(sectorial)
R4 R5 R6
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Slavova Milanka
Department of International Economics and Politics, University of National and World
Economy Sofia, Bulgaria
mslavova@unwe.acad.bg
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brand identity, brand meaning, brand by the employees, commitment to the brand
responses and brand relationships. Based on and evolving loyalty. The alignment process
this model the corresponding internal is shown on fig.1
branding stages could be brand understanding
Second Step
Third Step
Building Brand Understanding is the learning levels for employees and managers
first step in the internal branding process. It from all the regions in which the company
builds employees’ brand awareness. The first operates.
stage includes a variety of activities that help In the case of rebranding
the employees to develop better employees‘involvement is also necessary.
understanding of the brand values and how They have to understand the business reasons
their performance is interrelated with them. for the rebranding in order to accept the new
The marketing research tools as surveys, image and support the marketing department
focus groups, and in-depth interviews can be in consistently conveying the company’s
used to identify to what extent the brand rebranded message. The brand ambassadors
promise is understood by the employees. For in this case could be influential employees
example. if the company claims that it puts from different departments, geographic
more efforts in delivering the brand promise regions and job levels. Their main task is to
than the competitors the company communicate the new business strategy and
management has to clarify and explain to signpost it to their peers.
employees what this means for the concrete Brand commitments is the second stage
interactions with buyers. in the internal branding process. The major
The external managerial task at the first stage task at this stage is employees’ motivation. It
is to make brand “stand out in ways that are is achieved by the development of individual
relevant to consumers’ needs… familiarity and collective motivational initiatives. In
must lead to a strong, positive consumer- order to keep the employees and attract new
brand connection.”(Kotler, Armstrong, 2012) talented people the companies must have a
A good example of the first stage is clear internal message what they stand for
Lufthansa brand academy Seeheim. Its goal and how it is translated into everyday
is to create a basic understanding of the obligations and responsibilities of the
importance and impact of brands in general employees. Brand commitment is achieved
and provide vision and future strategies for when the employees identify themselves with
Lufthasa brand. The participants experience the brand and are ready to apply additional
the Lufthansa brand with all their senses and effort to achieve brand goals.
become brand ambassadors. The main target Employee participation in the brand
groups for the Brand Academy are managers strategy development increases their brand
and service staff on board and ground.The understanding and develops brand
academy has also new training devices and commitment. For example Wrigley
2
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developed the "platform of change" that efforts of Marketing and Human Resource
focused on promoting the transfer of departments. Their cooperation is a major
knowledge between employees, developing a factor for employee-brand-consumers
lasting culture of positive accomplishment relationship. Brand loyalty cannot be
and motivation, and rewarding the staff for achieved without the personal example and
their efforts. involvement of the company management
Many companies are trying to involve and leadership.
employees in the new product launches in Better work environment is another factor
order to improve their understanding of the for employees’ brand loyalty. The employees
product benefits, increase commitment and in Shell Bulgaria appreciate highly the
encourage them to become brand working conditions in the company. Many
ambassadors. For example Nestle South researchers consider the opportunity for
Africa were launching a unique range baby work-life balance as an important reason for
cereals Nestum & Cerelac, nutritious meals pursuing a career in a company and building
in single serve sachets and designed an brand loyalty. (Pujaisri, Wilson and
internal competition to make a 1 minute Evannschitzky, 2008). Flexible hours,
advert promoting product convenience. More telecommuting options, compressed
than 500 employees took part in the workweeks and family friendly work
competition. (Nestle, 2010). environments are part of the tools with which
Another tool for motivating employees is the companies can recognize outside
story-telling. The overall goal of story-telling company life of the employees and the
is to develop the business, its profits and congruence between external promoted brand
reputation by building trust and inspiration. values and attitudes towards employees.
Stories prove that the brand is authenthic –
realistic and tangible because the brand Where should company start the internal
promise is delivered by real people. For branding process?
example the corporate brand platform of
Chevron “Human Energy” motivates the Building a brand-based culture in the
company personnel by showing the company will keep employees motivated and
challenges that the company faced through with clear idea about his or her role in
the years. “The Chevron way” is the delivering the brand promise. The first step in
company vision on the key values that creating such culture can be an internal brand
company holds in working with people inside audit that will identify the employees brand
and outside the company. Story-telling in understanding, commitment and loyalty. The
FedEx inspires personnel by connecting audit should target the employees and the
personal life changes of the employees with management of the company. It will provide
the socio-economic and technological guidelines for the development and the
changes taking place in different regions of implementation of integrated internal and
the world. Story-telling workshops at Philips external brand strategy. Some of the issues
internalize business goals and improve the that can be included in the brand audit are the
communication among technical and other following (Brand Insight Assessment, 2012):
company departments. (Forman, 2013) What is the employees understanding
Brand commitment corresponds to the of the brand?
external step of branding responses. Its goal Is the employees’ brand understand
is to form customers’ positive attitude relevant to the external brand
towards the brand and gradually to develop promise?
brand internalization that will lead to more Is the organization consistent in
sales and profit. communicating brand identity inside
Brand loyalty is the third step in the the company?
internal branding. It can be achieved by What are the major channels for
human resource policy changes, new informing the employees?
employees’ evaluation systems, What are the main motivational tools
compensation schemes, etc. The most for delivering the brand promise by
successful companies have developed the employees?
internal branding programmes with the joint
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Conclusion
References
4
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team, the group must define goals so it 2. The role of teams in achieving the high
has something concrete to do as a team performing organization
that is a valuable contribution to the
company. Teams and performance are an unbeatable
Potential team - may share a common, combination. Several phenomena explain
significant performance goal and may be why teams work well.
trying to address teaming obstacles. They Firstly they bring together complementary
requires more clarity about purpose, skills and experiences that by definition
goals, or work products, and more exceed those of a single person on the team.
discipline in hammering out a common This broad mix of skills and experience
working approach. It often has not yet allows teams to respond to complex
established collective accountability. Or challenges such as innovation, quality and
perhaps team members have not been customer service.
relieved of other responsibilities, forcing Secondly, the joint development of clear
them to prioritize their time and effort. objectives and establishment of team
Real team - a small number of people relationships that help resolve problems in
with complementary skills who are real time. Teams are flexible and responsive
equally committed to a common purpose, to changing events and demands. As a result
goals, and working approach for which teams can adjust their approach to new
they hold themselves mutually information and new challenges with greater
accountable. The possible performance speed and higher accuracy than those
impact for the real team is significantly working in large organizations.
higher than the working group in that the Thirdly the team offers a unique social
contribution of the whole is greater than dimension that enhances the economic and
the possible sum contribution of administrative aspects of work. Real teams
individuals on the team. do not develop until the people do hard work
High-performance team - a group that to overcome barriers that stand in their way
meets all the conditions of real teams and to achieving collective performance.
has members who are also deeply Overcoming such obstacles together helps
committed to one another’s personal people who make up the teams to built
growth and success. The high confidence in each other. They also increase
performance team significantly their mutual purpose to perform for their
outperforms all other like teams, and team regardless of individual needs.
outperforms all reasonable expectations Teams do function better in an
given its membership. Members of high organizational culture that encourages high
performance team pools their diverse performance by promoting the following five
talents, experiences, and perspectives to principles:
produce solutions that are greater than 1. Teamwork is characterized by a set of
what they would have produced as flexible and adaptive behaviors,
individuals merely coordinating their cognitions and attitudes. Teamwork is
individual activities. defined as a mechanism by which
In conclusion, we can say that teams are members are able to adapt and adjust in a
complex, unique entities that have been timely manner and to action in order to
characterized as: two or more individuals meet the demands of the team members
who interact socially, adaptively, have a thereby resulting in coordinated,
shared or common goals, hold meaningful synchronized collective action.
task interdependencies, are hierarchically 2. Team members must have the
structured, have a limited life span, whose willingness, capability and preparedness
expertise and roles are distributed and are to assume the duties of their fellow
embedded within an organizational and teammates. Teams that successfully
environmental context that influences their engage in backup behavior will achieve a
process and outcomes. level of performance greater than the
sum of its individual members.
3. Teamwork requires the coordination of
the collective interdependent team
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encircle the note that best indicated their incentives to perform better and learn
attitude towards these claims. more skills and to stabilize team
Research of theoretical, methodological members’ performance. Companies that
and practical advantages of teamwork in use teams must try to strike a balance
organizations has enabled us to synthesize between rewarding the group and
the following results: rewarding the individual.
For Romania the developments taking
place internationally are opportunities in 4. Conclusions
the integration process of transition from
an industrial society to a knowledge Employees, team leaders and managers of
society. The main resources of the Romanian companies should be educated and
knowledge society are not financial or motivated to build and sustain teamwork and
material resources but knowledge, team effectiveness. One problem is to
illustrated by social and human capital. transform the traditional work collective in
Power is not given by money, providing high performance teams traditional team of
control and distribution of resources but it employers represent a group of individual
is given by knowledge. Teams bring who believe and act as individuals, each with
together complementary skills and it work program.
experiences that exceed those of a single Romanian organizations must recognize
person on the team. This broad mix of the competitive advantages from playing as a
skills and experience enable teams to team. The benefits for the organizations are:
respond to complex challenges such as improved quality of work life, lower
innovation, quality and customer service. absenteeism and turnover, increased
Perhaps the most important characteristic innovation, better organizational adaptation
of an effective work team are the assigned and flexibility. Teams represent one of the
objectives. It is important that the team is best ways to support the broad – based
allocated realistic tasks and access to changes necessary for the high - performing
appropriate resources to implement. In organization. And executive who really
Romanian organization the teams don’t believe that behaviorally based
have a written statement about their characteristics like quality, innovation, cost
mission. effectiveness and customer service will help
Group decision – a mature team that build sustainable competitive advantage will
works well take a number of decisions give up top priority to the development of
after a debate in which all views were team performance.
analyzed. In Romanian companies, The premise is that team potential is not
employees often find different solution to being exploited and it is actually blocked by
problem but they are afraid to make the inability of the Romanian leaders to
suggestions and avoid assuming understand that a group will perform only if
responsibility for their decisions. the entire organization appreciates and relies
Consequently most decisions are passed on teamwork.
from one to another until a decision is
inevitable. Groups are generally slower to References
arrive at decisions that individuals, so
sometimes it is difficult to utilize them in [1] Bailey S., Cohen D, What Makes Team Work:
situation where decisions must be made Group effectiveness research from the shop
very quickly. Also, if a powerful leader floor to the executive suite, Journal Of
dominates the group, other group Management, 23(3).
members may quickly conform to the [2] Katzenbach J.R., Smith D.K. The Wisdom of
dominant view. Teams: creating the high-performance
Reward systems – it is necessary to be organization, Ed. Harvard Business School
Press, Boston, 1993.
designed to encourage cooperation,
[3] Beatty C.A., Scott B.,A., Building Smart
critical thinking and problem solving. In Teams: A Roadmap to High Performance,
the Romanian organizations the pay Ed. Sage Publications Inc, California, 2004.
system must be focused on performance
within the team, it must provide
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marginal utility it offers to consumers.[2] Ingvar Kamprad. At first, this young Swedish
Based on the concept of marketing-mix, sold postal stationery. Then he had the idea
which examines the implication of the to sell furniture in 1947, and opened its first
various resources of organizations to achieve branch.IKEA then rapidly diversified
certain results and economic effects has been products sold quickly launched a range of
developed the strategic model of service-mix, accessories and decorations, then fresh light
ensuring the proper functioning of any districts of northern origin. His creative
combination of services to achieve a certain genius was that he imagined objects made of
level of growth, and reasonable costs in parts, kits that can be assembled at home by
relation to these combination effects. anyone, while ensuring reliability and
In the structure of the commercial service sturdiness. These features were those who
model proposed mix D.Patriche can found conquered audiences worldwide. [10]
the following components:[9] The strategy that the company use to
Conditions and supporting activities: develop its commercial services is to increase
- technological developments; and diversify,the variety of services offered
- promoted policies about facilities created; to consumers being a basic feature of the
- development and promotion; IKEA concept.
- ways of managing labor force; It can be said that IKEA commercial
- psychosocial climate of the company; services offer covers all their
- typology of activities performed. typology.Thus,concerning services by their
Primary activities nature, the company offers customers the
- good-service integration; possibility to return products if they are not
- preparing product for use; fully satisfied, have furniture rental services
- consumer information and for professional photo shoots and filming
- maintain bought products in perfect order. commercials and cinematography, repair
Elements such as merchandise, services are available for textile products.
commercial network, commercial Speaking about the location of services in the
technologies and consumer services have led sale, IKEA has sold with product services
a number of common trends and influences such as home delivery. Considering their
on business services,as follows: [2,9] origin, the services offered by IKEA are both
o changing in management processes and linked to production and sales generated by
strategic shift to commercial services and new methods (presentation, informative
new management systems; labeling of products), the company paying
o growth and diversification ofcommercial attention to both. Regarding service
services through individualitzation of each functions, the company covers the whole
business unit type or form of sale; range, focusing mainly on technical functions
o modernization of commercial services, like the possibility to obtain quality products
continuous dialogue with the customer, the and on psychological ones,like the attention
service provision and business activities paid to all categories of quality customer,
improvement; service in shops, or reward for their loyalty
o contradictory tendencies in the through financial services and gift cards.
development of services in a general sense, Upon the system integration criterion IKEA
but also influencing the commercial services services are both exogenous (financial, that
(i.e. natural consumption of services, , consumers have various payment methods)
considered the preserve of specialized and endogenous (delivery, installation and
business units). finishing touches).[11]
The range of services offered by Swedish
5. A successful experience giant is very diverse and differs depending on
the region or country where they are
IKEA can be given as an example of a provided, company adapting its offer to the
company that has revolutionized the furniture specific needs. For example, in the UK, the
retail through distinct strategic positioning, company offers customers the possibility to
which beside marketing represents the get a considerable discount to purchase
specific set of activities of the company. products if they give back old furniture in the
IKEA company was founded in 1943 by premises and In the U.S., offers free advice
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References
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Stăniţ Alexandra,
„Lucian Blaga” University of Sibiu, Romania
alexandra.stanit@ulbsibiu.ro
Popa Liliana Mihaela,
„Lucian Blaga” University of Sibiu, Romania
lili.popa@ulbsibiu.ro
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progress in order to manage and improve strategy, and to measure and monitor
business performance. [3] performance in order to inform strategic
Performance management can basically decision making and learning. [3]
be defined as a set of management processes, The basic performance management
often supported by information technology, model integrates processes for defining
that help to improve the strategic decisions strategic objectives, measuring performance,
people make every day. In the end it is the analysing performance and reporting and
quality of those decisions that will separate reviewing performance and aligning people
successful companies from the rest. and culture. All of these are focused on
Performance management is therefore a performance improvement which is the
modern umbrella term for a set of central premise of performance management
management approaches that enable (see Figure below).
organisations to define and execute their
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extract insights and make better informed leading organisations are now able to update
decisions which lead to actions and their budgets and forecasts on the fly, based
performance improvements. on a continuous inflow of both financial and
Strategic Planning – This step involves non-financial data.
creating a business model and strategy (either Project and Programme Management –
corporately or for a business unit). We can The delivery of projects and programmes
include here Balanced Scorecard Strategy needs to be aligned with the corporate
Maps and value-driver mapping. Informed by objectives and priorities in order to ensure
strategic analyses, organisations identify that efforts are focused on what matters the
what are the strategic objectives they plan to most. The activities (projects and
accomplish. [2] programmes) need to be prioritised based on
Performance Measurement and strategic needs and therefore have to be
Monitoring – Organisations design key aligned with the strategic performance
performance indicators (KPIs) to measure framework of an organisation.
and monitor how well they are delivering on People Performance, Rewards and
their strategic objectives. Most important is Recognition – For most organisations their
to ensure the metrics are relevant and people are their most valuable and most
meaningful. Many fall into the trap of expensive assets. In the end it is people who
measuring what is easy to measure instead of deliver the projects and implement the
what will provide the best insights. strategic plans. By aligning budgets and
Business Intelligence (BI), Analytics and projects with the strategic performance
Modelling – In this step organisations use framework organizations have made major
their performance data and metrics to analyse steps towards alignment. However, by further
performance. This step is all about creating a aligning reward and recognition systems as
solid evidence-base to inform decision well as personal performance management
making. Business Intelligence and modelling processes to the performance framework
approaches include marketing and sales organizations can create a tight integration
analytics, customer analysis or click stream between what matters the most and what
analysis. people perceive as important. [2]
Reporting & Reviewing Performance – In Risk Management – The management of
this step organisations translate the insights risk is too often narrowly focused on just
gained from their performance information financial risks. While these are important,
into management reports and dashboard and they are not enough. The performance
put the review processes in place to act on the framework has identified the key drivers of
data. It is all about evidence-based decision future performance and it is therefore
making facilitated by the performance review important to assess and monitor any risks in
processes. [2] relation to all your performance drivers in
Aligning People and Culture – In this order to achieve alignment between your risk
final step organisations ensure the people, management and what matters the most for
culture and leadership approaches are future performance.
focused on performance improvement. It is Performance Reporting, Dashboards and
about creating the soft elements of a high Scorecards – Relevant performance
performance organisation to ensure the information is not only crucial for better
performance management processes. decision making and performance
More advanced performance management improvement, it is also a requirement for
approaches integrate with other key most organisations to demonstrate to external
management processes. Here we briefly look stakeholders and regulators that they have
at some of those processes in turn and delivered desired levels of performance and
explore the need for alignment. that they have complied with rules and
Financial Planning, Consolidation & regulations. Integrated strategis performance
Budgeting – By integrating budgeting and management solutions allow organisations to
financial planning with corporate objectives use any of their data to produce and deliver
and priorities organizations ensure that the reports, dashboards and scorecards for their
financial resources are spent on the things stakeholders – internally or externally.
that actually matter the most. Some of the
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4.Conclusions
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Stepanova Larysa
Human Resources Management and Labour Economics Chear, Poltava University of
Economics and Trade,
lara-step@yandex.ru
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that will ensure the processes of qualities trade workers in accordance with
reproduction, well-being and quality of life. the activities in this field;
2. Quality increase of the labor potential expanding the qualified professionals use
of Ukraine. and teachers in the learning process in-
3. Achievement of the decent level of service training for employees. We offer
social security. themed seminars for workers, professionals
4. Ensuring the appropriate level and and managers of commercial establishments,
quality of life of workers under the EU social including "The effective sale", "Evaluation
standards. staff - not just certification", "Staff
5. Eradicating poverty among the development companies: Stages and
employed population. Results";
6. Providing public access to quality
continuing education, training of personnel
and lifelong learning. National social program "Preservation
7. Mobility of labor potential through and development of labor potential of
access to the housing market. Ukraine for 2008-2017 years"
8. Providing healthcare reform workers
according to The World Health Organization
(WHO) standards, disseminating standards of
Agreement between the Board of
a healthy lifestyle by providing essential
Ukoopspilka and the Bureau of the
health services, recreation and leisure for
Central Committee of Trade Unions
families.
of Employees
9. Promotion gender equality and
elimination of the worst forms of child labor
and any discrimination in the workplace. Strategy of Consumer Cooperatives in
10. Prevention loss of highly skilled labor Ukraine for 2004-2015 years
potential of external labor migration, brain
drain termination and intellectual property
products from Ukraine.
11. A significant increase in the middle Directions ensuring efficient use of
class as the main segment of the population labor potential commercial enterprises
that will provide stabilization in society.
12. Providing conditions to belong to the
middle class doctors, teachers, scientists,
engineers and technicians, and others.
Conceptual foundations of efficient
utilization of labor potential is defined as a
complex system of measures and actions at
the macro, mezo and microlevel (Figure 1). Program to ensure efficient use of labor
Among the offered directions that will potential at different levels of the
promote professional competence, enterprise management
qualifications and employment potential of
commercial establishments are: Figure 1. Implementation of the
inventory of existing professions and conceptual effectiveness foundations of using
skills, comparison their compliance with employment potential at the macro, mezo
the qualification requirements of jobs in and micro levels
each business unit;
special courses and seminars on facilitate internships workers on advanced
evaluation of personnel commercial trading enterprises, training of personnel
establishments consumer cooperatives for in the field of education, Ukraine;
determining the suitability of the sectoral workshops with leading
employee to the specific area. We have companies in the region, countries to
developed the appropriate estimation exchange experience on a commercial
procedure professional and personal basis;
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Conclusions.
References.
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Sudacevschi Mihaela
“Nicolae Titulescu” University, Bucharest
msudacevschi@univnt.ro
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Banking products and services are the time of month or year, workload, experience,
result of the activity of commercial banks. In attitude, knowledge and other factors.
banking institution, product and service Maintaining client trust during lapses (which
concepts have become interdependent and will happen) is critical. Researches show that
interchangeable, being used to describe what employee satisfaction is the most important
is the offer for the consumer. Choosing a factor in providing high quality service.[4]
supplier of financial – banking products and 4. Perishable – means that services
services is the result of bank’s success in cannot be stored for future use.
explaining the actions, attitudes, values and
decisions of well–defined categories of Banking Marketing Strategy
consumers, whether individuals or legal
persons. When setting its marketing strategy, a
In market economy, a banking product or bank must analyze in detail the overall
service is offered to customers at the same activity, the goal which is targeted and the
time by several credit institutions, which are market share target. The bank overall
in direct competition with each other. strategy should be defined by several
Although, generally, the banking product or elements:
service is basically the same, in practice - Setting–profit activities and those that
appear some differences from one bank to generate loss for the bank and identify
another. activities which will be kept,
Services are elements that accompany the developed, restricted or eliminated in
products generated by banking services for bank future offer.
the clients’ accounts. Although in the - The expected profit of the bank,
specialized literature exists a clear distinction according to the rate of market
between financial - banking products and expansion and the bank market share.
services, on the Romanian banking market - Setting the long-term objective of the
banking products and banking services are bank.
rigorously separated, because it is supposed Setting the long-term strategy of the bank
that any banking service is accompanied by must collect a large volume of information
at least one banking product and vice versa, from all areas of bank activity. Marketing
any banking product implies the existence of plays an important role in processing and
one or more banking services. Banking analyzing the information and bank’s
services are the effect of the banking marketing department provide a large amount
operations that are made on the account of its of information – necessary to define the
customers. overall strategy. Marketing strategy also
involves the share market analysis and bank
Characteristics of Services activities, both now and in the future. Since
planning is a continuous process, banks’
The features generally recognized for all managers must take into account the
types of services are the basis of distinctions changing of banking general operations.
between the different consumer goods and To the basis of implementation of the
services categories. These are: overall marketing strategy is the marketing
1. Intangibility – means that services plan, which will take into account all
are intangible and cannot have a real, available information.
physical presence as does a product Marketing plan is a written document that
2. Inseparability – means that services describes the programs developed for an
are inseparable from the point where they are organization (a bank), a banking product or
consumed and from the provider of the service or a brand. Marketing plans can take
services. several forms but generally include five
3. Variability - means that banking basics elements:
services quality and consistency are subject 1. A detailed situation analysis that
to variability, because they are delivered by consists of an internal marketing
people, and human behavior is difficult to audit and review and an external
control. Personal performance and quality analysis of the market competition
can vary by time of the day (people get tired), and environmental factors.
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offering customers up to 100 USD if they decision process and the channels of
opened a checking account with al little as distribution.
100 USD deposit and then kept account open The marketing strategy of a bank is
for a minimum of six months. generally developed with a specific purpose
But promotion activities include also, in mind and is the end the banking product or
personal activities, public relations, direct service of a detailed marketing and
marketing, trade fairs and exhibitions, promotional planning process.
advertising and sponsorship. Promotion
needs to be precisely coordinated and References:
integrated into the business global
communications message, and this is called [1] Uduak, O.U. – “Economic Absorption and
Integrated Marketing Communications. The Contribution of Banks to Economic
promotion mix (the marketing Development in Nigeria”, Journal Business
communications mix) is the specific blend of Financial, 2009, pp: 2;
[2] Miskin F.S , Serletis A. – “The Economics of
promotion tools that the company uses to
Money, Banking and Financial Markets”, 3rd
persuasively communicate customer value Edition, Pearson Education Canada, 1992;
and build customer relationships. (Kotler, [3] Rose, P. S. – “Money and Capital Markets:
2010 ) Financial Institutions Instruments in a
The issues of promotions are becoming Global Market Place”, 6th Edition, Irwin Mc-
more and more complicated as Grow Hill, New York, 1997;
internationalization of financial services [4] www.rethinkmarketing.com
continues to increase. The most important [5] Smith, Elizabeth – “Marketing Strategies for
promotion tools for financial services are the Banking Industry”, www.ehow.com;
personal selling and advertising, in order to [6] Linton, Ian – “What Are the Effect on New
Products Development in the Banking
create awareness of the brand and establish
Industry?”, www.ehow.com;
personal relationships. The external factors [7] Grankwist, Anna, Kollberg, Carolina, Persson,
influencing the choice of promotion strategy Anna – “ Promotion Strategies for Banking
are technology orientation of the industry, Strategies – Case Study of Nordea Bank
cultural aspects, competitiveness of the Finaland in Estonia”, Lulea University of
market and economic factors. Adaptation of Technology, 2004
the promoting strategy is performed to a
great extent, due to customer’s different
performances and expectations, as well as
local conditions of the host county. However,
banks attempt to standardize their promotion
as much as possible in order to reduce costs
and reach economies of scale. [7]
Conclusions
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Internal audit is an insurance process [12] of the business is the very mission of audit.
whose role is to assess internal control and Thus, budgets can provide useful information
management system [11] , checking whether for the audit.
the economic entity complies with its own
rules, identifying waste and mismanagement, 2. The link between economic entities
while assessing the economy, efficiency and budgets and audit
effectiveness for all categories of resources
used [7] . Before starting an audit, the auditor
Internal control aims to ensure the should know the general characteristics of the
efficiency and effectiveness of operations, entity, which allows him to better assess
reliability of financial and reporting specific risks associated, plan audit
statements and compliance with laws and engagement, identifying elements that will
regulations [9] . The internal control system have a significant impact on information. The
is a set of policies and procedures adopted by knowledge of the audited entity allows the
an entity in order to achieve management auditor to identify practices that could
objectives, to ensure the implementation of significantly affect the financial situation
management and forecasting policy, to [17]. General knowledge can come from both
ensure activity efficiency, accuracy and external and internal sources such as:
completeness of records, allowing detection previous audit reports, reports of the Board of
of fraud and error and the drafting of Directors, budgets [10] or strategic plans [8] .
financial statements as required by law [17]. This involves gathering information and
The role of audit is to provide assurance records relating to plans and work programs,
related to the activity of the economic entity, budgets and budgetary exercised of prior
to the control measures implemented and its years [12] . Information about budgets and
financial statements. Therefore, in results are considered useful in obtaining
conducting the audit we think it is important basic knowledge about the activity of the
to consider not only economic and legal audited entity [6].
substance of the transaction, but also other For internal audit, all areas of the
elements to guide the auditor in performing company are object of the audit activity [11]
his work. For starters, the auditor should fix and the financial audit covers all information
some coordinates regarding their general systems. Thus, forecasted or internal
knowledge of the entity, of the field of information can be audited as well [10] .
activity, of the management, the people, and Based on these considerations, we can state
of the way in which they operate, etc. that the audit can be extended to the budgets
Budgeting is an internal process. if they provide essential information to the
Information regarding budgets is for internal auditor in performing his activity.
use and is accessible only to internal users. Internal audit identifies waste and
The information contained in these decision- mismanagement, assess economy, efficiency
making tools are, in our view, sensitive data and effectiveness of all resources use [7] . Or
because they translate into values future entity budgets aimed precisely efficient
action plans of management and include management of resources, activities, ensuring
information such as: future prices, costs of efficiency, effectiveness and economy of the
production, the expected sales, expected business. What better way to analyze all
results, advertising costs, and so on. And these elements than studying budgets?
these plans can ensure the success of the Internal audit can also verify the control
entity. process of budget execution [11] .
Considering these factors, we can say that As to internal control, it allows the
generally, budgets are not elements for audit. accomplishment of management objectives,
And yet we wanted to take this research to management policy and forecasting activities
the next level and see how budget analysis [17]. The internal control system involves
could provide auditors essential information, determining general attitudes, perceptions
strictly related to their objectives. We believe and actions taken by the management
that any activity performed by the entity has concerning the entity's internal control
an impact, more or less evident on the system, its emphasis, philosophy and
business. Or the analysis of the state of health operating style of management [12] ,
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integrity, ethical values of management [3] of the entity. In performing the audit, we also
etc. Thus, the analysis of internal control may use information obtained from analyzing
involve a budget check. Budgets set budgets and budget execution. Budgeting
management objectives and help achieve provides additional security that the business
them by forecasting the activity. Also, is managed in an efficient manner, that the
budgets correctness and execution provide use of limited resources is controlled, that
information on the involvement of effective corrective action is taken in time,
management in the effective planning of the and so on. Budget preparation starts from the
activity, on the importance attached to the desire of the management entity to manage
efficient management of the business, about the business effectively and to plan the work
general management philosophy, how so that they can achieve the goals set, being
managers conduct the business, their values, able to control the activity and take timely
their capacity and performance, and so on. corrective action. Thus, budgets help activity
The control procedures also include development in optimal conditions.
comparing and analyzing financial results In other words, budgets are useful for the
with predicted values [12] . In other words, activity of the economic entity and the
verify budget execution is useful in activity is reviewed by the audit (figure 3).
evaluating the internal control system, one of
the internal controls procedures being, the Figure 3 The link between budgets and audit
comparison of the results with the approved
budget [8] . Audit Activity Analysis
Financial audit is also designed to test the Activity Analysis Budgets Analysis
entity's internal control (including risk
assessment), efficiency, effectiveness and Audit Budgets Analysis
economy of activity [10] . Or internal control
verification as an essential part of achieving Source: own source
the audit engagement involves, as we have The audit analyzes the activity and the
shown previously, checking budgets. activity involves implementation and
We tried to emphasize the link between monitoring activities planned through
audit and budgets by using the transitivity budgets. So, we consider that budgets are
mathematical model. According to this important in performing the audit activity.
principle, if A determine X and X determine The auditor's mission should take into
B, then A determine B (Figure 2). account budget study as an important part in
determining stability, efficiency and
Figure 2 Transitivity model characteristics of the business.
Source: own source The audit has the role to certify the
accuracy of the information provided to the
In our view, X from the transitivity external users. We agreed that budgets are
principle is the element that links audit and management tools for internal use, are
budgets, representing our unknown. “A” confidential and are not subject to audit such
represents Audit and “B” Budgets. Thus, as financial statements are. However, as
based on this formula, we consider that the noted earlier, for a high quality audit, we
link between budgets and audits can be done must take into account the information
through analyzing the quality of activity provided by the economic entities’ budgets.
performed and its characteristics. As Arens et al. (2003) [2] said, sometimes
We know that the audit aims to ensure perhaps the most important audit elements
stakeholder that the financial statements are are not found in the accounts. Budgets can
true and fair, in accordance with the laws and provide essential information in planning the
regulations in force, without significant audit. They can help the auditor in
errors, analyzing the effectiveness of internal determining the items to be audited, to
control. In other words, it verifies the activity analyze the quality of management,
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One of the objectives of the audit process Employee involvement and satisfaction
is to analyze if the principle of business experienced by them is another useful
continuity is respected. This step is information provided by budgets in order to
particularly important because it affects the achieve a quality audit. If employees are
values of the elements presented in the committed to achieving the objectives set
financial statements. Thus, auditors need trough budgets, their performance and the
evidence to assert business continuity, entity performance will increases, and their
something more concrete than just a simple concern for carrying out they task reduces the
insurance from the management. Planning risk of significant errors.
activities to be undertaken in the next period The mere existence of budgets means a
through budgets show auditors the concern of major concern for achieving a good work,
management for the future activity of the organized and controlled; concern which can
entity, indicating its intention to continue the reduce the risk of errors. Also, budgets
work. provide clues to the auditor on management's
The preparation of budgets also provides concern for efficiency, effectiveness,
auditors with information regarding the efficient resource management and for the
degree of management involvement in the achievement of objectives set. This careful
activity. The concern of management for activity planning trough budgets and
ensuring effective activity may offer auditors budgeting features, which allows them to
valuable information on the commitment and provide better organization of activity and to
dedication of management. Also, it is more make people involved accountable for their
unlikely to find irregularities or errors when work, ensure the quality of the business.
there is close supervision by management. Individuals receiving such responsibility are
more attentive, more involved, more
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dedicated, more responsible in their allow the assessment of the ability and
activities. An efficient organization and a quality of management.
thorough communication between Budgets and budget execution gives
departments ensure an adequate and efficient auditors information about the effectiveness
activity, so no chaos or errors arising from of internal control because they are useful
lack of coordination and communication. tools in setting goals, helps achieving them,
Also segregation of duties and allowing efficiency and effectiveness
responsibilities is important for auditor business development, with careful
regarding internal control system analysis. management of available resources,
The auditor should not lose sight of one providing information about the involvement
very important aspect of budgets. We and commitment of management in business
mentioned that budgets involve management planning, and about the philosophy and
and employees in achieving the entity values of the leadership.
objectives through accountability. Their The auditor aims, before the audit
desire to achieve the budgeted values and engagement, to obtain general knowledge of
avoid significant deviations along with the the entity and the work performed by it to
stress associated with achieving these better assess risks. This can be achieved by
objectives can lead to handling budgets or analyzing budgets and information provided
actual values. Also, if managers are by them. General knowledge of the entity
conditioned to the achieving of budgeted determines the acceptance or refusal of the
values they can resort to different game or engagement. All the information provided by
schemes for amending the results. Or this is the budget can assist the auditor in
of particular interest for auditors in determining its mission objectives, audit risk
conducting the audit, indicating the and areas of interest.
possibility of irregularities.
We believe that the auditor should also be Conclusions
interested in analyzing the causes of
deviations from budgeted values. This can We believe that the utility of budgets
occur either when handling values, recording should not stop just at the roles that studies
of human error, or due to failure of already assigned them. Budgets
management to adopt and implement informational potential is much larger.
decisions to meet the objectives. Thus, the Although they are tools for internal use,
auditor should focus on analyzing those budgets can provide useful information to
elements representing significant deviations, auditors in carrying out their mission. This
either positive or negative. Significant information helps the auditor to analyze and
negative deviations may suggest lack of understand the situation in the entity, to
effective internal control, problems of determine areas where problems may exist
organization and employee motivation, and and must submit to a detailed analysis, to
so on. Also, for the auditor is important to determine audit risk, to fix mission
analyze the existence of a process for objectives, also allowing the auditor to
adopting corrective measures and for their analyze the quality of internal control.
implementation. These elements determine
the competence and involvement of the References
management and can reduce the risks of error
if deficiencies and problems are identified [1] Albu, C., Albu, N., „Budgets – between
and corrected. This verifies the entity's tradition and reform: a typology of functions
internal control efficiency. and forms of the budgeting process”,
Budgets also help the auditor in analyzing Accounting, Expertise and Audit of Business;
leadership characteristics based on the goals no.11/2006, p. 48-53
[2] Arens, A.A., Loebbecke, J., Elder, R.,
and objectives set and estimated values (too
Beasley, M.S., Auditing - an Integrated
optimistic, pessimistic, realistic, involved, Approach, 8th Edition, ARC Publishing
responsible, negligent, careless, House, Chişinău, 2003
manipulative, etc.). Budget execution and the [3] Boulescu, M., Internal Audit and Statutory
decisions implemented by the management Audit: economic entities, Economic Tribune
Publishing House, Bucharest, 2007
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[4] Braga V., „Budgeting activities, source of Research, Volume 15, Issue 4, December
information for management accounting in 2004, p. 415-439, available at
companies”, Journal of Public Finance and http://www.sciencedirect.com, accessed on
Accountancy, v. 17. no. 5, p. 58-61, 2006 01.02.2013
[5] Chong V. K., Eggleton I. R. C., Leong M. K. [14] Huang Cheng-Li, Chen Mien-Ling,
C., „The multiple roles of participative „Relationships among budgetary leadership
budgeting on job performance”, Advances in behavior, managerial budgeting games, and
Accounting, Vol. 22, 2006, p. 67-95, bugetary attitudes: Evidence from Taiwanese
available at http://www.sciencedirect.com, corporations”, Journal of International
accessed on 01.02.2013 Accounting, Auditing and Taxation, Vol. 18,
[6] Constantinecu, D.A., Dobrin, M., Niculescu, Issue 1, 2009, p. 73-84, available at
O.M., Niţă, S., Internal Audit, National http://www.sciencedirect.com, accessed on
Collection, Bucharest, 1999 01.02.2013
[7] Crăciun, Ş., Financial audit and internal [15] King R., Clarkson P.M., Wallace S.,
audit- financial control and auditing, „Budgeting practices and performance in
Economic Publishing House, Bucharest, small healthcare businesses”, Management
2004 Accounting Research, Vol.21, Issue 1, March
[8] Court of Accounts, Financial Audit Manual, 2010, p. 40-55, available at
Official Gazette, Bucharest, 2002 http://www.sciencedirect.com, accessed on
[9] Dobroţeanu, C.L., Dobroţeanu, L., Internal 01.02.2013
Audit, Info Mega Publishing House, [16] Libby T., Lindsay R.M., „Beyond budgeting
Bucharest, 2007 or budgeting reconsidered? A survey of
[10] Florea, I., Florea R., Macovei, I.C., Berheci, North-American budgeting practice”,
M., Introduction to auditing and financial Management Accounting Research, Vol. 21,
audit, CECCAR Publising House, Bucharest, Issue 1, March 2010, Pages 56-75, available
2008 at http://www.sciencedirect.com, accessed on
[11] Ghiţă, M., Internal Audit, Second Edition, 01.02.2013
Economic Publishing House, Bucharest, [17] Rusovici, A., Cojoc, F., Rusu, G., Financial
2009 audit at economic entities, Monitorul Oficial
[12] Ghizari, E.I., Rusovici, A., Rusu, G., Cojoc, Publishing House, Bucharest, 2003
F., Audit of financial statements in economic [18] Professional standard No. 24 - Financial
entities. Guidelines for understanding and audit assignments and standardized
applying International Standards on conceptual framework for accounting expert
Auditing, Assurance and Ethics published by missions, CECCAR Publishing House,
IFAC, Monitorul Oficial publishing House, Bucharest, 2007
Bucharest, 2006 [19] Ştefănescu, A., Ţurlea, E., Tănase, G.,
[13] Hansen S.C., Van der Steder W. A., Assertions and Controversies Concerning
„Multiple facets of budgeting: an exploratory Budgets in Economic Entities, Financial
analysis”, Management Accounting Audit Magazine, no.91 – 7/2012, p. 15-23.
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borders and no other studies national or entirely satisfactory, but compared to other
international. surveys (eg, Community Innovation Survey),
In 2002 the OECD launched a the response rate is much better.
comparative research in the member Complementary data analysis process
countries in order to find out more about the questionnaire, telephone interviews were
existence, dynamics and efficiency of conducted six (ex-post) of companies
knowledge management practices in the responding to the questionnair
private sector and for measuring the degree The questionnaire comprised 11
to which these practices are used [6]. To do questions, and its starting point-Question 1 -
this, a group was formed from the consisted of a list of management practices
representatives of the respective ministries that can be used in knowledge management
and research organizations, which aimed to programs. These practices have been grouped
formulate a basic questionnaire that was used under the headings:
in each of the participating countries. - Policies and strategies;
In order to identify the extent to which - Leadership;
knowledge management practices are used in - Incentives;
Romania in the fall of 2011 we conducted a - Capture and knowledge acquisition;
survey based on a questionnaire developed - Training and mentoring;
by OECD experts. - Communication.
In this paper I will present and analyze the Respondents who indicated that use one
research results, research which is intended or more of these practices were asked to
to be a basis for further research. In the continue with the questionnaire, while those
following pages is a presentation of the who indicated that they do not use any of
operational details of the research, followed these practices were asked to move to
by a presentation of results of basic Question 10, which refers to reasons that may
questions, presentation by mainly descriptive encourage respondents to implement such
statistics. Since the number of respondents is practices (this is referred to as skip-model).
rather small, we conclude that there are Questions 2-9 are about the reasons and
further opportunities to develop statistical results of the implementation of knowledge
analyzes. However, some conclusions are management practices. Also in this section
possible based on the analyzes presented. respondents were asked who is responsible
The research covered various sectors of for the implementation of these practices, if
the national economy, but the im portant ones exist budgets to implement these practices
were: and if their impact and effectiveness is
- Commerce; measured. Finally, they were asked to specify
- Agriculture; if their organization was met any resistance
- Financial services; to the introduction of these initiatives.
- Accounting and advisory services; Question 10 refers to the reasons that
- Education; would determine the organization to adopt
- Other. and implement knowledge management
For each sector 300 companies were practices. Finally, question 11 is purely
randomly selected, and in early November administrative and is related to the number of
questionnaires were sent to companies to be employees in the organization
completed. A reminder was sent by mail in The questionnaire was accompanied by a
mid November. In total, 89 companies cover letter, whose main purpose was to
responded in a way that enables analysis, 10 motivate respondents to complete the
have indicated that the questionnaire was not questionnaire. As structure the cover letter
relevant to them because they are too small. contained a introduction of the study, the
Some respondents indicated lack of time to reasons for which organizations should
respond. The sample of companies that participate in research, the benefits of the
responded to the questionnaire was participation and contact details.
distributed unevenly between sectors, but In addition to the survey conducted by e-
their distribution that allowed clear mail, there was an attempt to gain some
differentiation in terms of company size. The qualitative assessments by phone. After the
overall response rate was 33.7%, which is not questionnaires were returned, some of the
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companies were asked if they are willing to while 72% said "not applicable" in this
discuss the questionnaire by telephone. 9 regard. 5% of knowledge management
companies agreed and finally in early practices are used as explicit criteria for
January were conducted six interviews. assessing the performance of workers. More
Distribution of respondent companies than half (67%) responded "do not know /
according to size (employees) are not applicable" to this question, while 21%
characterized by a higher response rate for intend to use in the next 24 months.
large companies (21%), an average response Incentives. A small number of
rate of 12% for very small and a lower organizations- 10% reward the positive
response rate to enterprises (as 10%). effects of sharing knowledge with monetary
incentives, while 18% of organizations
4. Results- Utilization of knowledge reward the positive effects of sharing
management practices in Romania knowledge with non-monetary incentives.
A very large number of organizations do
Question 1 - Using knowledge not intend to use these incentives in the next
management practices. Regarding the use 24 months, and 3% for monetary incentives
of knowledge management practices it was and 8% for non-monetary.
observed that more concrete, operational A large nuber of respondents -82%
practices (capture and acquisition, training believe that monetary incentives and 64% of
and mentoring, communications) are more the non-cash as a form of reward, not used.
used than formalized strategic practices. Knowledge capture and acquisition.
Although knowledge management practices Most widely used form of capture and
are widely used at the operational level, the knowledge acquisition is the capture and use
incentives to promote the use of knowledge of knowledge obtained from other sources
management practices are still very common. (82%). This is followed by the allocation of
2% of companies have a written policy time to obtain and disclose information
strategy and knowledge management, about a capture and the use of knowledge obtained
quarter of respondents have a value system to from research institutions (respectively 51
promote knowledge culture, approximately and 62%) and encouraging employees to
40% have policies or programs to improve participate in project teams with external
employee retention and almost half have experts (49%).
completed or strategic partnerships or 28% believe that it is justifiable to devote
alliances used to acquire knowledge. 20% of time to obtain and communicate knowledge
respondents will formulate written strategies and meanwhile, 13% of respondents plan to
and policies for the knowledge acquisition devote time to obtain and communicate
and sharing of in the next 24 months and knowledge and use knowledge obtained from
about 15% of respondents will use in future public research institutions.
policies and programs directed at retaining 21% do not encourage employees to
employees and create a culture that promotes participate in project teams with external
knowledge sharing. A very high proportion experts and uses knowledge obtained from
of respondents 69.5% said they did not know public research institutions.
if they use written policy or strategy for Training and mentoring. Generally
knowledge management. organizations give more support for informal
Leadership. Most respondents indicated than the formal training. Practices most
that knowledge management practices are the widely used are: encouraging employees to
responsibility of managers (67%), but also a transfer knowledge from more experienced
high percentage it is occupied by employees workers to new or less experienced (79%),
not involved in management activities (13%). encouraging employees to continue training
Perhaps most surprising is that almost 15% (85%) and providing training outside the
of respondents gave the answer "do not know organization in order to maintain current
/ not applicable" to the question whether the skills (82%).
activities of knowledge management Formal and informal education and
practices are the responsibility of managers. training in terms of knowledge management
2% said that their organization has a practices are considered not applicable in
knowledge officer (Officer of knowledge), 84% and 77% of organizations. However,
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Tudorache Ana-Maria
Valahia University, Targoviste
anatud85@yahoo.com
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Table1. Relations between the variables of work efficiency equation, key factors and implications
on management
Source: Vagu, P.; Stegaroiu, I., Work motivation: from theory to practice, Bibliotheca
Publishing House, Targoviste, 2007, p. 102
Employee being the sole master of the effort using the concept of motivation. This
effort, the manager tends to influence this sends us to the following relation:
- individual
characteristics
- work efforts
Source: adaptation after Vagu, Paraschiv; Stegaroiu, Ion, Work motivation: from theory to
practice, Bibliotheca Publishing House, Targoviste, 2007, p. 102
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that the person has to fulfill. Thus, we can but perceived as easy is better that the
deal with the following situations [6]: subject to have a high level of motivation
In case of simple tasks (repetitive, so as to be able to complete it.
routine, automated components with few When the subject appreciate incorrectly
options to resolve) as the intensity of the difficulty of the task,
motivation increases, increase overappreciating it. Appreciating the task
performance level. “The relation of as being more difficult than it actually is
strength of stimulus to rapidity of habit- will lead to over motivation which will
formation.” have clutter effects and will lead to
In case of complex tasks (creative, rich in failure. Also in this case is
content and solution options), the recommendable a gap between
increasing motivation intensity is motivation intensity and difficulty of the
associated to some extent with increased task. If the medium task is perceived as
performance, after which the latter more difficult than it really is, it is
decreases. recommended that the subject to be
Due to the importance of the task easily under-motivated to accomplish the
difficulty in the relation between motivation task to the expected standard of
and performance was formulated the performance.
hypothesis according to which Yerkes- According to this theory we can say the
Dodson Law can be divided in two factors following:
[7]: It is important to motivate people who
The ascendant part of the curve can be are in a very low state of motivation;
considered as the energizing, beneficial Motivating people with low level of
factor of motivation. motivation will help improving work
The descendant part of the curve can be efficiency;
interpreted as being the negative factor, There is an optimal point of motivation
the clutter effects of excessive that should not be exceeded;
motivation. A very high motivation can The optimal point of motivation is not
have negative consequences on represented by the most powerful
performance because the pressure of motivation condition;
solving the task is too high, stress installs Motivation beyond the optimum point
and appear difficulties in focusing can reduce work performance, rather to
attention in the memory process and improve it.
problem solving ability.
How the person perceives the task is also 4. Conclusion
important in determining the optimal level of
motivation. Thus there will be three Motivation is represented by all those
situations [7]: biological, psychological, social and cultural
When the subject properly appreciate the factors likely to cause, maintain and direct
difficulty of the task. In this situation the human behavior towards a well defined goal.
optimal motivation considers the At the same time, it is a key tool used by
relationship of correspondence between leaders insistently to achieve higher
the degree of motivation and performance. According to optimum
performance level. motivational theory, the relationship between
When the subject appreciate improperly the intensity of motivation and level of
the difficulty of the task, performance is dependent on the complexity
underappreciating it. Appreciating the of activity (task) that a person has to fulfill.
task as being easier than it actually is will According to Schermerhorn’s approach work
lead to under-motivation and, hence, to performance is the result of individual
the insufficient mobilization of energies characteristics of a person, work efforts and
and resources, the result can be a failure. support that it receives from the organization.
In this case, the law says that it is Work motivation contributes fundamentally
beneficial a slightly over-motivation of to improve the will to achieve high
the person. Thus, if the task is medium performance by creating a stimulating
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5. References
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Vasilescu Liviu
“Valahia” University, Targoviste, Romania - Faculty of Economics /Department of
Management
liviuvasilescu@hotmail.com
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moral power directed towards modeling and the individuals and the school organisation.
moderating the educated group’s activities Once the conflict framework is well defined,
for strengthening team spirit, internal the necessary steps to the conflict solution
cohesion and forms of communication meant can be made by using the power of resources
to positively stimulate motivation of the (either tangible or not) characteristic to the
micro-organisational attitudes and conduct educational environment as information,
through empathy, logical argumentation and staff, students, competences, reputation and
examples of good practice. stress resistance. Besides, the correct
Raising the status of power in this managerial perspective comes from the
particular situation is also revealed by the use formal authority in correlation to the personal
of the irritating, nagging technique of the power involving intelligence, logical
“power of the flea on the dog” type [11], connections, critical thinking and
conducive to the generation of the communicative competences, particularly in
educational partner’s embarrassment. a manipulative attempt.
Under these circumstances of limited or The general strategies of conflict
inefficient parental authority, the management in the educational organisation
phenomenon of cohesion inside the focused on prevention, avoidance,
educational group becomes in itself a source minimisation, solving this process of
of power, of authority through the internal systemic non-identification – as we have
unity of the interactions oriented towards the defined the notion of conflict - as well on the
preservation of all the members by “the spirit reduction and elimination of the negative
of group enclosure” [12]. consequences of the conflict, are structured
The divergent position of one of the group around two basic concepts: collaboration,
members in contrast to the majority’s attitude from which the actions for conflict
is subject to the pressure towards uniformity prevention and resolution logically result,
in a gradual process. It initially includes the and risk, in the situations in which there
deviation encouragement by the exists the perception of the imminent
manifestation of interest in the argumentation occurrence or escalation of tensions within
base and continues with the neutral phase in the organisational subassemblies.
which the conflict topic appears as In the conflict arena, power mainly
commonplace, part of the daily life. Next, the concerns the effectiveness of the actions that
non-standard motivation becomes can achieve the targets by “influence,
inacceptable in the stage of rejection of the opportunity and coercion in order to obtain
deviant attitudinal model and finally, the desirable results” [14], in linear
confronted to the threat of exclusion, the relationship to the educational performer’s
estranged group member is brought back into capacity, derived from their sphere of power,
the educational group system. both structural or personal, the latter being
marked by determination, knowledge,
2.4. Manipulation involves means of intelligence, decision-making ability and
influencing by persuasive methods, a person, communication skills. The structural power
a group, a community in their actions, either envisages the resources and the objective
spontaneous or by direct solicitation, whose options involved in the conflict, the legal and
purpose belongs to a will unrelated to their political realities of the conflict environment
interests; submission of the will of the others and the level of authority held by the conflict
can be made by creating the illusion of parties and the conflict manager.
freedom, autonomy and free consent.
Dissatisfaction for poor marks determines a 3. Didactic persuasion in conflict
student’s parent to become a conflict party management
and to turn the school principal against the
teacher by distorting real facts. The complexity of the concept of
The manager is to use a remarkable persuasion as social influence is given by the
source of power, the “definitional power” multitude of relational structures built
[13], i.e. the ability of giving the problem through exposure to and understanding of
clear contour and content and of analysing messages, followed by acceptance of ideas
the potential impact of the conflict on both and sequencing of attitudinal, behavioural
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The relevance of the conceptual content, Order on a date close to the time of National
the techniques of adding artifice, surprises Education Law official publication (2011).
and linguistic challenges of linguistic, the Consequently, the mayors of various
emotional and spiritual capacities can restore cities, towns and villages, with the desire to
a flat pattern of communication into a offer support to their favourite teachers in
discourse effectively targeted to a positive taking over these managerial responsibilities,
finality in managing conflict in education. claim in their petitions art. 258, paragraph 7
of National Education Law which stipulates
4. The educational system and formal that “under the conditions of the vacant
authority position of the school principal, till the
organisation of a new contest, the interim
The formal authority is conferred on the management is taken, according to the
teaching staff by the Ministry of National School Administration Board’s decision, by
Education, the Districtual School the deputy head teacher or by a member of
Inspectorate, the Teaching Staff’s Council the Board who automatically becomes credit
and the Administration Board functioning at coordinator”.
the level of educational institutions for the Nevertheless, it must be noted that Article
organisational positions of school inspectors, 258 is to produce its effects after the
directors of educational institutions, school organisation of the first session of contests
principals, chairmen of methodical for the position of school principal and
committee, class tutors. deputy and, as this action has not been
A conflict focused on formal implemented yet, the necessary step is the
communication and on the level of authority appointment procedure “by detachment for
is generated by the fact that there have not educational interest”. This hub in the specific
been organised vacancy contests for the legislative field becomes a generous source
appointment of school inspectors since April of petitions and complaints and thus, it is a
2008 and of school principals and deputy potential source of conflict at different levels
principals since December 2008, such of the educational system.
managerial positions in the school
organisation school being occupied by the 5. Conclusions
formula of “appointment by detachment for
educational interest.” The 21st century manager of the
The legal powers in this context are educational organisation is confronted to a
established by the disputed National wider range of conflicts, not only within the
Education Law (1/2011) that also includes strict school environment, but also outside it
The Teaching Staff Status, Regulation for and the required equipment in order to face
Organising and Functioning of Pre-academic them is not as easy to get as one can possibly
School Education (ROFUIP, 2005), School imagine. Besides the personal profile
Internal Rules, employment law, appropriate to the commitment to education
methodologies for the competitions for and the professional and managerial expertise
managerial positions on different levels of having as fundamental lines the acquisition
specific responsibilities as methodist, mentor, of information necessary in the educational
etc. and for the contests for obtaining field, by both education stakeholders and the
membership in the Body of Experts on educated, the school manager should have
Education, the title of Teacher Emeritus and complete legal support and be fully aware of
the gradation of merit in education. the connections between the educational key-
A noteworthy point in this respect is actors: teachers, students and their parents
represented by a legal vacuum on some and local community, which are
important aspects of the management of the interdependent.
school organization. An example of such a Moreover, the relational structure
conflict generator is the lack of the specific developed by the school organisations with
methodology for organising and running the other education related partners such as
competition for the positions of principal and NGOs, charities, financial institutions and
deputy of schools, that should have entered economic agents is far from being
into force (but has not) by the Minister’s insignificant; on the other hand, one should
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add to these positive aspects those elements [9] Edighoffer, J. R. Martory, B., Negocier avec
targeting influence, coercion and political succes. Edition Nathan, Paris, 1994, pp.106-
pressure. In this respect, references may be 109 in Stoica-Constantin, A., The
made to the behaviour and attitude of some Interpersonal Conflict. Conflictul
interpersonal. Polirom, Iași, 2004, p. 150
of the local authority members - mayors,
[10] Cornelius, H., Faire, S., The Science of
vice-mayors, local councilors – who, seeking Conflict Resolution. Ştiinţa rezolvării
to impose on the educational decision makers conflictelor. Editura Ştiinţă şi Tehnică S.A.,
their own selection of personnel for the Bucureşti, 1996, in Stoica-Constantin, A.,
managerial team or even for the teaching The Interpersonal Conflict. Conflictul inter-
staff in some educational institutions, can personal. Polirom, Iași, 2004, p. 155
create a situation of tension, sometimes with [11] Mayer, B., The Dynamics of Conflict
huge conflictual potential. Resolution, Jossey Bass, A Wiley Company,
Social influence works both ways and this San Francisco, 2000 in Stoica-Constantin,
principle marks not only the conflict A., The Interpersonal Conflict. Conflictul
inter-personal., Polirom, Iași, 2004, p. 151
management in the educational process, but
[12] Pânişoară, I.- O., Efficient Communication.
also the perspective of global development of Comunicarea eficientă. Iași, Polirom, 2008,
humanity in these tormented decades of the pp.230-233
21st century. [13] Mayer, B., The Dynamics of Conflict
Resolution, Jossey Bass, A Wiley Company,
6. References San Francisco, 2000 in Stoica-Constantin,
A., The Interpersonal Conflict. Conflictul
[1] Moscovici, S., Social Influence and Social inter-personal. Polirom, Iași, 2004, p. 151
Change. Influenţă socială şi schimbare [14] Mayer, B., The Dynamics of Conflict
socială. Polirom, Iași, 2011, p.182 Resolution, Jossey Bass, A Wiley Company,
[2] Stoica-Constantin, A., The Interpersonal San Francisco, 2000 in Stoica-Constantin,
Conflict. Conflictul interpersonal. Iași, A., The Interpersonal Conflict. Conflictul
Polirom, 2004, p. 150 inter-personal., Polirom, Iași, 2004, p. 150
[3] Sălăvăstru D., The Psychology of Education.
Psihologia educației, Polirom, Iași, 2004,
p.173
[4] Stoica-Constantin, A., The Interpersonal
Conflict. Conflictul interpersonal, Polirom,
Iași, 2004, p. 150
[5] Edighoffer, J. R. Martory, B., Negocier avec
succes. Successful negociations. Edition
Nathan, Paris, 1994, pp.106-109 in Stoica-
Constantin, A., The Interpersonal Conflict.
Conflictul inter-personal. Polirom, Iași, 2004,
p. 149
[6] Mayer, B., The Dynamics of Conflict
Resolution, Jossey Bass, A Wiley Company,
San Francisco, 2000 in Stoica-Constantin,
A., The Interpersonal Conflict. Conflictul
inter-personal. Polirom, Iași, 2004, p.151
[7] French, J.P., Jr., Raven, B., The Basis of
Social Power. Selected Texts. Bazele puterii
sociale în Influenţa socială. Texte alese.
Programul Tempus, Imprimeria Universităţii
,,Al. I. Cuza, Iaşi, 1996, pp.112-127 in
Stoica-Constantin, A., The Interpersonal
Conflict. Conflictul interpersonal. Polirom,
Iași, 2004, p. 148
[8] Mayer, B., The Dynamics of Conflict
Resolution, Jossey Bass, A Wiley Company,
San Francisco, 2000 in Stoica-Constantin,
A., The Interpersonal Conflict. Conflictul
inter-personal. Polirom, Iași, 2004, p. 151
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Voicu-Dorobanţu Roxana
Bucharest Academy of Economic Studies, Romania
rovodo@gmail.com
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models and innovation within the for the five dimensions above, aimed
organization [17]. categories and indicators to assess the
Thus, we propose a model-type diamond / sustainability for future international
radar, bringing together five dimensions of comparability in the last phase of the project,
comprehensive performance assessment, namely:
namely: 1. Sustainable development and
1. Strategy - which aims if the company innovation policy of the organization
has a strategic planning process, if open to (Corporate Sustainability Policy)
innovation and whether it has implemented 2. Sustainable development strategy and
its strategy and policies through appropriate global innovation (Overall Sustainability
mechanisms for implementing a system of Strategy)
eco-innovation. 3. Government regulations (Gov't Policy
2. Processes - is taken into account eco- and Regulation)
innovation ability of the company included in 4. Trends impact on strategy (Impact of
the development of new products, reduce Trends on Strategy)
environmental impact and integration of 5. Supply chain (Supply Chain)
processes taking place within the 6. Green Label (Green Labeling)
organization to greater efficiency and 7. Integrating Sustainability and
sustainability. Innovation (Integrating Sustainability)
3. Organization - namely, its capacity to 8. Specifications / customer reactions
support innovation, namely eco-innovation (Specifications / Customer Insight)
through internal communication from top to 9r. The evaluation process of the product
bottom, bottom to top and side. life cycle (Life Cycle Assessment Process)
4. Connections - company's ability to 10. Eco-innovation: resource selection
integrate upstream and downstream (Design for Environment - Material and Part
relationships, namely the value chain with Selection)
suppliers and distributors, and competitors to 11. Eco-innovation: supply chain (Design
facilitate diffusion of eco-innovation for Environment - Supply Chain)
5. Learning ability - the ability to keep 12. Eco-innovation: production (Design
company employees always connected to the for Environment - Manufacture)
latest information in the field, to facilitate 13. Eco-innovation: the use of the product
access to know-how regarding best practices (Design for Environment - Use Phase)
for eco-innovation nationally and 14. Eco-innovation: the end of the product
internationally. It is also important to take life cycle (Design for Environment - End of
into account the company's capacity in this Life)
area to learn from the failures and successes
in terms of eco-innovation and diffusion in Within each category, there will be
the organization and its environment best questions to answer YES / NO reflecting eco-
practices learned. innovation capacity and improve overall
performance, as described below in the next
The proposed model is based on the section. Each question is related to a certain
fundamental idea of a simple tool used by the score, the category total is a maximum of 4,
organization to be able to check the position minimum 0.
of a radar chart, which would be able to Based on totals for each category
observe the evolution of indicators for each separately, we are generating a radar chart for
area assessed. . The tool increases the topics the company in question, as illustrated in the
covered by the Sustainability Assessment following figure where it reaches the
tool that can be found in literature, with maximum extreme.
elements related to innovation and eco-
innovation (it increases the number of
questions per category) in order to ensure a
comparability throughout industries and in
relation to the sustainability assessment.
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