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					           Abstracts of the 7th edition of the
              International Conference

      European Integration
        – New Challenges
                              7th edition

                              May 27 -28, 2011
                              Oradea, Romania




Scientific editors:                        Edition prepared by:
Prof. Nicolae Al. POP, PhD                 Senior lecturer Ioana POP COHUŢ, PhD
Prof. Anca DODESCU, PhD                    Ec. Cătălin ZMOLE



          Organized under the patronage of "Jean Monnet" European Modules
  “European Economic Integration”, “International Trade and European Trade Policy”
                                         and
           “EU Sustainable Economic Development and Competitiveness”,

                                 in partnership with

      AFER - The Association of the Faculties of Economics, Romania – T. N.
    AGER - The General Association of Romanian Economists – Bihor branch T. N.
       EDCO –European Documentation Centre Oradea, University of Oradea
  CCCDD - The Research Centre for Competitiveness and Sustained Development - T. N.
Editura Universităţii din Oradea


ISSN: 1844 – 5519
 Abstracts of the 7th edition of the
    International Conference



European Integration
 – New Challenges –
           7th edition




          May 27 – 28, 2011
          Oradea, Romania
                        This volume comprises the abstracts of the scientific papers accepted by
  the Scientific Committee of the 7th Edition of the International Conference “European Integration – New Challenges”,
                                            May 27 – 28 2011, Oradea, Romania
The publication of the papers in the Journal “The Annals of the University of Oradea. Economic Sciences” -
Tom XX, 2011, ISSN 1582-5450 (in electronic format on CD-ROM), ISSN 1222-569X (in printed format) a
journal listed CNCSIS category B+ and indexed in RePec, Doaj and EBSCO international data bases and
respectively on the site of the journal:http://anale.steconomiceuoradea.ro, in electronic format, with free access
to full text, will be made after the Conference, as a result of a peer review type evaluation process.

          The papers published in this volume are exclusively engaging authors.
Conference Chairperson                                         Dr. Ovidiu Rujan, The Bucharest Academy of Economic
Dr. Anca Dodescu, University of Oradea, Faculty of             Studies, Romania;
Economics, Romania                                             Dr. Ioan Talpos, West University, Timişoara, Romania;
                                                               Dr. Adriana Tiron Tudor, “Babeş – Bolyai” University, Cluj
Honorary Committee                                             Napoca, Romania
Academician, Mircea Maliţa, Member of the Romanian             Dr. Jean-Emmanuel Tyvaert, University of Reims
Academy, Romania – Dr. H.C of the University of Oradea;        Champagne-Ardenne, France;
His Excellency, Jonathan Scheele – Dr. H.C of the University   Dr. Constantin Tulai, “Babeş-Bolyai” University, Cluj-
of Oradea;                                                     Napoca, Romania;
Dr. Aurel Negucioiu – Dr. H.C of the University of Oradea;     Dr. Ioan Trenca, “Babeş-Bolyai” University, Cluj-Napoca,
Dr. Gheorghe Gh. Ionescu – Dr. H.C of the University of        Romania;
Oradea;                                                        Dr. Gordon T. Biggs, Moray College, Scotland, Great Britain;
Aldo Poli – Dr. H.C of the University of Oradea;               Dr. Maria Madela Abrudan, University of Oradea, Romania;
Franco Antiga - Dr. H.C of the University of Oradea;           Dr. Olimpia Ban, University of Oradea, Romania;
Dr. Constantin Roşca – Dr. H.C of the University of Oradea;    Dr. Alina Bădulescu, University of Oradea, Romania;
Dr. Gheorghe Olah – University of Oradea.                      Dr. Mihai Berinde, University of Oradea, Romania;
                                                               Dr. Elena Botezat, University of Oradea, Romania;
Scientific Committee                                           Dr. Nicoleta Bugnar, University of Oradea, Romania;
Dr. Băbăiţă Carmen, West University, Timişoara, Romania;       Dr. Gheorghe Ţară, University of Oradea, Romania;
Dr. Bătrâncea Ioan, “Babeş – Bolyai” University, Cluj-         Dr. Naiana Ţarcă, University of Oradea, Romania;
Napoca, Romania;                                               Dr. Daniela Zăpodeanu, University of Oradea, Romania.
Dr. Liviu Begu, The Bucharest Academy of Economic
Studies, Romania;                                              Organization Committee
Dr. Nicolae Bibu, West University, Timişoara, Romania;         Chairman:
Dr. Rodica Boier, “Gh. Asachi” Technical University, Iaşi,     Prof. Anca Dodescu, PhD
Romania;
Dr. Sorin Briciu, “1 Decembrie 1918″ University, Alba Iulia,
Romania;                                                       Members:
Dr. Cristiana Cristureanu, “Dimitrie Cantemir” Christian       Prof. Elena Botezat, PhD
University, Bucharest, Romania;                                Prof. Alina Bădulescu, PhD
Dr. Marin Dinu, The Bucharest Academy of Economic              Prof. Mihai Berinde, PhD
Studies, Romania;
Dr. Liliana Feleaga, The Bucharest Academy of Economic         Scientific secretary:
Studies, Romania;                                              Senior Lecturer Ioana Pop Cohuţ, PhD
Dr. Niculae Feleaga, The Bucharest Academy of Economic
Studies, Romania;
Dr. Emilian M. Dobrescu, Romanian Academy, Bucharest,          Responsible -foreign participants:
Romania;                                                       Senior Lecturer Adriana Giurgiu, PhD
Dr. Nicoleta Farcane, West University, Timişoara, Romania;
Dr. Xavier Galiegue, University of Orleans, France;            Economic responsible:
Dr. Elena Hlaciuc, “Ştefan cel Mare” University, Suceava,      Senior Lecturer Dorina (Lezeu) Lezeu, PhD
Romania;                                                       AGER secretary Lavinia Chirilă
Dr. Tatiana Moşteanu, The Bucharest Academy of Economic
Studies, Romania - Dr. H.C of the University of Oradea;
                                                               Responsible – web page and on-line registration:
Dr. Marin Opriţescu, University of Craiova, Romania;
Dr. Nicolae Al. Pop, The Bucharest Academy of Economic         Laboratory assistant Cătălin Zmole
Studies, Romania – Dr. H.C of the University of Oradea;
Dr. Ion Popa, The Bucharest Academy of Economic Studies,       Administrative responsible
Romania;                                                       Assistant Lecturer Adrian Nicula, anicula@uoradea.ro
Dr. Gheorghe Popescu, “Babes-Bolyai” University, Cluj
Napoca, Romania;
Dr. Gabriela Prelipcean, “Ştefan cel Mare” University,
Suceava;
Dr. Petru Prunea, University of Oradea, Romania;
Dr. Gabriela Stănciulescu, The Bucharest Academy of
Economic Studies, Romania;
Programme committee                                         The Editorial Board of the Journal “The Annals of
Section: International Business and European Integration:   the University of Oradea. Economic Sciences”
Coordinator: Senior lecturer Nicoleta Bugnar, PhD           Chief Editor:
Sub-section: International Business
                                                            Dr. Anca DODESCU, University of Oradea, Romania;
Coordinator: Senior lecturer Liana Meşter, PhD
Secretary: Lecturer Leonard Abrudan, PhD
Sub-section: EU Sustainable Economic Development and        Associate Editors:
Competitiveness                                             Dr. Ioana POP-COHUŢ, University of Oradea,
Coordinator: Senior lecturer Adriana Giurgiu, PhD           Romania;
Secretary: Lecturer Mirabela Pop, PhD                       Dr. Adriana GIURGIU, University of Oradea, Romania
Sub-section: The Impact of Foreign Languages on the
Business Environment                                        Members:
Coordinator: Lecturer Monica Sim, PhD
                                                            Academician, Mircea Maliţa, Member of the Romanian
Secretary: Lecturer Felicia Constantin
                                                            Academy, Romania;
Section: Economics and Business Administration              Dr. Gheorghe Zaman, Correspondent Member of the
Coordinator: Senior lecturer Olimpia Ban, PhD               Romanian Academy, Romania;
Sub-section: Economics                                      Dr.Ahmet Aktas, University of Akdeniz, Alanya,
Coordinator: Senior lecturer Adrian Florea, PhD             Turkey;
Secretary: Assistant lecturer Afrodita Borma                Dr.Mihaela Belu, The Bucharest Academy of
Assistant lecturer Diana Maghear                            Economic Studies, Romania;
Sub-section: Business Administration
                                                            Dr. Gordon Biggs, Moray College UHI Millennium
Coordinator: Senior lecturer Olimpia Ban, PhD
Secretary: Assistant lecturer Dorin Bâc                     Institute, Scotland, Great Britain;
Assistant lecturer Adina Cătană                             Dr. Luminita Chivu, The Romanian Academy,
Sub-section: Economic Statistics                            Romania;
Coordinator: Senior lecturer Ioana Meşter, PhD              Dr. José Cifuentes – Honrubia, University of Alicante,
Secretary: Assistant lecturer Mariana Vancea                Spain;
                                                            Dr.Mircea Ciumara, The Romanian Academy,
Section: Finance, Banking and Accounting                    Romania;
Coordinator: Senior lecturer Daniela Zăpodeanu, PhD
                                                            Dr.Constantin Ciutacu, The Romanian Academy,
Sub-section: Finance
Coordinator: Prof. Dan Morar, PhD                           Romania;
Secretary: Lecturer Diana Sabău-Popa, PhD                   Dr. Marin Dinu, The Bucharest Academy of Economic
Sub-section: Banking                                        Studies, Romania;
Coordinator: Lecturer Cornel Benţe, PhD,                    Dr.Xavier Galiegue, University of Orleans, France;
Secretary: Assistant lecturer Sorina Coroiu (Petriș)        Dr. Valeriu Ioan-Franc, The Romanian Academy,
Sub-section: Accounting                                     Romania;
Coordinator: Senior lecturer Victoria Bogdan, PhD           Dr. Zoran Ivanović, University of Rijeka, Croatia;
Secretary: Lecturer Mariana Farcaş
                                                            Dr.Kormos Janos, University of Debrecen, Hungary;
Secretary: Lecturer Carmen Scorţe
Secretary: Assistant lecturer Diana Balaciu                 Dr.Eszter Lang, University of Debrecen, Hungary;
                                                            Dr. Nicola Mattoscio, “G. D‟Annunzio” University of
Section: Management and Marketing                           Chieti – Pescara, Italy;
Coordinator: Senior lecturer Maria Madela Abrudan, PhD      Dr. Piero Mella, University of Pavia, Italy;
Sub-section: Management                                     Miguel Angel Moreno San Juan, The Leadership
Coordinator: Senior lecturer Mirela Bucurean, PhD           Institute, Arlington, USA;
Secretaries: Assistant lecturer Mădălina Costin             Dr. Guido Montani, University of Pavia, Italy;
Assistant lecturer Mirabela Matei
                                                            Dr. András Nábrádi, University of Debrecen, Hungary;
Sub-section: Marketing
Coordinator: Senior lecturer Dorin Coita, PhD               Dr. Giuseppe Paolone, “G. D‟Annunzio” University of
Secretary: Lecturer Dinu Sasu, PhD,                         Chieti, Pescara, Italy;
Assistant lecturer Teodora Tarcza                           Dr. Nicolae Pop, The Bucharest Academy of Economic
Sub-section: Economic Informatics                           Studies, Romania, Dr. H.C of the University of Oradea;
Coordinator: Senior lecturer Naiana Ţarcă, PhD              Dr. Ioan Popa, The Bucharest Academy of Economic
Secretary: Lecturer Horia Demian, PhD                       Studies, Romania ;
                                                            Dr. Wiktor Pozniak, College of Europe, Poland;
                                                            Egidio Rangone, ”G. D‟Annunzio” University of
                                                            Chieti, Pescara, Italy;
                                                            Dr. Jean-Emmanuel Tyvaert, University of Reims
                                                            Champagne-Ardenne, France;
                                                            Dr. Adriana Tomescu, University of Oradea, Romania;
                                                            Dr. Valentina Vasile, The Romanian Academy,
                                                            Romania.

                                                            The English version is provided by: Dr. Mirabela Pop,
                                                            University of Oradea, Romania.
                                        TABLE OF CONTENTS

SECTION: INTERNATIONAL BUSINESS AND EUROPEAN INTEGRATION ........ 25
 SUB-SECTION: INTERNATIONAL BUSINESSES ..................................................... 25
    EUROPE       AND           ITS         GREEN               FUTURE.                ELECTRIFICATION                           AND
    DECARBONIZATION .................................................................................................... 25
    CONTINUING INTERNATIONAL TRADE LIBERALIZATION IN THE FINANCIAL
    CRISIS CONTEXT .......................................................................................................... 25
       Berinde Mihai.............................................................................................................. 25
    PREDICTABLE TRENDS OF EU TARIFF POLICY IN GLOBALIZATION‟S
    CONTEXT ........................................................................................................................ 26
       Caba Ştefan, Căuş Vasile-Aurel .................................................................................. 26
    THE RISKS OF A TOO QUICK EURO ADOPTION BY THE EU MEMBER STATES.
    THE CASE OF PORTUGAL ........................................................................................... 26
       Cristian Ştefan Ovidiu ................................................................................................. 26
    THE SOVEREIGN DEBT CHALLANGE: AN OVERVIEW ........................................ 27
       Deceanu Liviu - Daniel, Mihuţ Ioana, Pop Stanca ..................................................... 27
    SHORT REVIEW ON EUROPEAN TURISM IN 2010 THROUGH THE INFLUENCE
    OF THE FINANCIAL CRISIS ......................................................................................... 28
       Marinoiu Ana - Maria, Viciu (Caragin) Andreea Raluca ........................................... 28
    THE IMPACT OF THE CRISIS ON THE QUALITY OF LIFE AND SOLUTIONS TO
    REDUCE THE CRISIS EFFECTS. CASE STUDY: ROMANIA ................................... 28
       Meşter Liana, Bugnar Nicoleta, Fora Andreea .......................................................... 28
    COMMON AGRICULTURAL POLICY FROM HEALTH CHECK DECISIONS TO
    THE POST-2013 REFORM ............................................................................................. 29
       Niculescu Oana Marilena ........................................................................................... 29
    SOME ASPECTS CONCERNING THE DIPLOMATIC PROTECTION OFFERED BY
    THE EUROPEAN UNION FOR THE CITIZENS IN THE PRESENT ECONOMIC
    SITUATION ..................................................................................................................... 30
       Timofte Claudia Simona, Mirişan Ligia Valentina ..................................................... 30
    FOREIGN DIRECT INVESTMENTS DURING FINANCIAL CRISES ....................... 30
       Vintilă Denisia Mariana ............................................................................................. 30
 SUB-SECTION: EU SUSTAINABLE ECONOMIC DEVELOPMENT AND
 COMPETITIVENESS ....................................................................................................... 31
    LOCAL ACTION GROUPS - THE EUROPEAN INTEGRATION CATALYST FOR
    THE ROMANIAN RURAL AREA ................................................................................. 31
       Ailenei Dorel, Mosora Liviu - Cosmin ........................................................................ 31
       Benea Ciprian Beniamin, Baciu Adrian ...................................................................... 31
    ROMANIA‟S ANSWER TO THE NEW DIRECTIONS ................................................ 32
    OF THE REGIONAL DEVELOPMENT POLICY OF EUROPEAN UNION ............... 32
       Berinde Mihai, Chirilă Lavinia Florentina ................................................................. 32
    INTERNATIONAL BIOMASS TRADE AND SUSTAINABLE DEVELOPMENT: AN
    OVERVIEW ..................................................................................................................... 33
       Chiriac Cătălin, Rusu Nicoleta ................................................................................... 33

                                                                 7
COMPARATIVE ANALISYS BETWEEN THE OBJECTIVE AND THE
SUBJECTIVE QUALITY OF LIFE APPROACH – STRENGTHS AND WEaKNESSES
 .......................................................................................................................................... 33
      Constantinescu Mihaela, Daniel Moise ...................................................................... 33
SOCIAL AND ECONOMIC IMPACTS OF WIND POWER IN CORELATION WITH
THE FINANCIAL CRISES.............................................................................................. 34
      Cucoş Alina Florentina ............................................................................................... 34
MAIN THREATS TO THE ROMANIAN LABOUR MARKET IN THE CURRENT
CONTEXT ........................................................................................................................ 35
      Dimian Gina Cristina, Dimian Mihai ......................................................................... 35
CREATIVE POTENTIAL OF RESEARCH AND DEVELOPMENT - A COMPOSITE
INDEX OF POTENTIAL SIENTIFIC CREATIVITY .................................................... 35
      Dinescu Maria - Cristina, Fabian Anne Marie ........................................................... 35
COMPARATIVE ANALISYS BETWEEN THE OBJECTIVE AND THE
SUBJECTIVE QUALITY OF LIFE APPROACH – STRENGTHS AND WEaKNESSES
 .......................................................................................................................................... 36
      Felea Adrian Ioan ....................................................................................................... 36
THE ROMANIAN EXTERNAL TRADE AND THE FOREIGN DIRECT
INVESTMENTS INFLOWS AFTER 2007. A CRITICAL SURVEY. ........................... 37
      Giurgiu Adriana .......................................................................................................... 37
IS THERE ANY CORRELATION BETWEEN THE CHRONIC BALANCE OF
TRADE DEFICIT AND THE ROMANIA'S INCREASING EXTERNAL DEBT? ....... 38
      Giurgiu Adriana .......................................................................................................... 38
EVALUATION OF THE COMPETITIVENESS OF THE REPUBLIC OF MOLDOVA
VIS-A-VIS THE WESTERN BALKAN STATES .......................................................... 38
      Gutu Corneliu.............................................................................................................. 38
FINANCING INSTRUMENTS USED IN THE CENTRE DEVELOPMENT REGION39
      Hada Teodor, Creţu Simion ........................................................................................ 39
ROMANIAN INVESTMENT POLICY ANALYSIS ...................................................... 40
      Hațegan Anca ............................................................................................................. 40
NEEDS OF LOCAL SUSTAINABLE DEVELOPMENT .............................................. 40
      Ioniţă Predescu Lorena, Radu Florin, Tăbîrcă Alina Iuliana .................................... 40
CONTEMPORARY TENDENCIES AND ASYMMETRIES IN THE E.U. UNEVEN
ECONOMIC GROWTH AND GLOBAL GROWTH DIFFERENCES .......................... 41
      Ioviţu Mariana ............................................................................................................ 41
INNOVATION VERSUS INCOME CONVERGENCE IN CENTRAL AND EASTERN
EUROPE. IS THERE A CORRELATION? ..................................................................... 41
      Jude Cristina, Pop Silaghi Monica ............................................................................. 41
REGULATORY BENCHMARKING IN CENTRAL EUROPE: CURRENT PRACTICE
AND POSSIBILITIES OF DEVELOPMENT FOR THE ENERGY SECTOR .............. 42
      Machek Ondrej ............................................................................................................ 42
THE NEED FOR PUBLIC DEBT MANAGEMENT IN THE CONTEXT OF
SUSTAINABLE DEVELOPMENT WITHIN THE EUROPEAN UNION .................... 43
      Marcu Nicu, Meghișan Mădălina Georgeta ............................................................... 43
INTEGRATION OF SEMI-SUBSISTENCE AGRICULTURAL FARMS..................... 44
      Maţoschi (Cîmpan) Oana, Păun Georgeta, Păun (Ciobanu) Mihaela, Pruteanu Elena
      Mihaela ....................................................................................................................... 44

                                                                  8
STUDY ON THE CAUSES OF REGIONAL ECONOMIC DISPARITIES IN
ROMANIA ....................................................................................................................... 44
   Talmaciu Mihai, Borza Mioara................................................................................... 44
THE IMPORTANCE OF IMPLEMENTING THE ICT NETWORK IN ACHIEVING
KNOWLEDGE TRANSFER IN THE RURAL AREAS ................................................. 45
   Miron Andreea, Ciobanu Laura, Menda Teodora - Adriana, Maţoschi (Cîmpan)
   Oana ............................................................................................................................ 45
THE FINANCING OF THE ADMINISTRATIVE – TERRITORIAL UNITS IN THE
WEST DEVELOPMENT REGION THROUGH THE REGIONAL OPERATIONAL
PROGRAMME 2007 - 2013 ............................................................................................ 45
   Munteanu Nicolae-Eugen............................................................................................ 45
THE DANGER OF “PUTING ALL THE EGGS IN ONE BASKET” - SOME
CONCERNS REGARDING ROMANIA‟S EXTERNAL TRADE ................................. 46
   Negrea Adrian ............................................................................................................. 46
SUSTENABLE DEVELOPMENT OF THE ROMANIAN ECONOMY BY ADOPTING
THE CHINESE MODEL OF SPECIAL ECONOMIC ZONES ...................................... 47
   Negrea Adrian ............................................................................................................. 47
POVERTY AND LIVING. ROMA POOR NEIGHBORHOODS IN ROMANIA AND
HUNGARY ...................................................................................................................... 47
   Olah Gheorghe, Olah Şerban, Flora Gavril, Szekedy Levente ................................... 47
THE JOURNEY TO COMPETITIVENESS: EU SPEEDING UP ON THE ROAD
PAVED WITH KNOWLEDGE AND INNOVATION ................................................... 48
   Oprescu Raluca ........................................................................................................... 48
AGRICULTURE IN ROMANIA IN THE PROCESS OF INTEGRATION INTO
EUROPEAN STRUCTURES DURING POST – ACCESSION ..................................... 48
   Păun Georgeta, Maţoschi Oana, Păun Mihaela Cristina ........................................... 48
E-GOVERNMENT: A DRIVING FACTOR FOR STIMULATING INNOVATION
PERFORMANCE IN ROMANIA? .................................................................................. 49
   Preda Ana - Maria, Stanica Justina Lavinia, Crisan Daniela Alexandra, Coculescu
   Cristina........................................................................................................................ 49
UTILISATION OF BENCHMARKING TECHNIQUES FOR FUNDAMENTING
DEVELOPMENT STRATEGIES IN THE MANUFACTURING INDUSTRY IN
ROMANIA ....................................................................................................................... 49
   Rujan Ovidiu, Ţarţavulea Ramona Iulia, Vasilescu Felician, Geambaşu Cristina
   Venera ......................................................................................................................... 49
FOREIGN DIRECT INVESTMENT AND INNOVATION: AN ANALYSIS OF
SPILLOVER CHANNELS............................................................................................... 50
   Sandu Steliana............................................................................................................. 50
EVALUATING THE EFFICIENCY OF LOCAL ECONOMIC DEVELOPMENT
POLICIES ......................................................................................................................... 51
   Săutiuţ Lavinia Sidonia, Sărac Ionuţ Pavel ................................................................ 51
SPATIAL MODELING IN LOGISTICS DECISION-MAKING PROCESSES.
IDENTIFYING THE OPTIMAL LOCATION FOR A SINGLE CENTRAL
WAREHOUSE ................................................................................................................. 52
   Ţarţavulea Ramona Iulia, Belu Mihaela Gabriela, Dieaconescu Vlad Constantin .... 52
THE ROLE OF THE PREVENTIVE MEDICINE IN SUSTAINABLE
DEVELOPMENT. A STUDY CASE ON THE PRIVATE MEDICINE SECTOR IN
ORADEA .......................................................................................................................... 52
                                                              9
       Uniţa Lucian, Rahotă Daniela, Maghiar Teodor Traian, Straciuc Oreste ................. 52
     THE PRODUCTION OF MEDICINES IN ROMANIA AFTER 1990. WHAT'S THE
     REASON FOR IMPORTS?.............................................................................................. 53
       Uniţa Lucian, Straciuc Oreste, Maghiar Teodor Traian, Uivaroşan Diana............... 53
  SUB-SECTION: THE IMPACT OF FOREIGN LANGUAGES ON THE BUSINESS
  ENVIRONMENT ............................................................................................................... 55
     IS TRANSLATING E-COMMERCE WEBSITES AN EASY TASK? .......................... 55
        Coancă Mariana, Museanu Elena .............................................................................. 55
     DO WE REALLY NEED FOREIGN LANGUAGES IN THE ROMANIAN TOURISM?
     SOME CONSIDERATIONS ABOUT THE LEGITIMACY OF MULTILINGUAL
     COMPETENCES.............................................................................................................. 55
        Constatin Felicia ......................................................................................................... 55
     ENGLISH LANGUAGE FOR SUCCESSFUL INTEGRATION: LEARNING FROM
     THE BOLOGNA PROCESS ............................................................................................ 56
        Hernandez - Carrion Jose Rodolfo ............................................................................. 56
     BUSINESS BUZZWORDS: RIGHTSIZING, DOWNSIZING, RE-ENGINEERING,
     DE-LAYERING ............................................................................................................... 57
        Pop Anamaria Mirabela ............................................................................................. 57
     VOICE PROBLEMS IN TRANSLATIONS OF ROMANIAN AND ENGLISH
     ECONOMIC TEXTS........................................................................................................ 57
        Sim Monica Ariana ..................................................................................................... 57

ECONOMICS AND BUSINESS ADMINISTRATION ..................................................... 59
  SUB-SECTION: ECONOMICS ........................................................................................ 59
     AMERICAN AND ITALIAN PERSPECTIVES ON PUBLIC AND PRIVATE
     EDUCATION CHOICES ................................................................................................. 59
           Bucciarelli Edgardo, Odoardi Iacopo, Pagliari Carmen, Tateo Armando ................ 59
     HUMAN CAPITAL AND DEVELOPMENT: SOME EVIDENCE FROM EASTERN
     EUROPE ........................................................................................................................... 60
           Carlei Vittorio, Colantonio Emiliano, Marianacci Raffaella, Mattoscio Nicola ........ 60
     COMPETITIVENESS - GROWTH FACTOR. POINT OF VIEW ON THE SITUATION
     IN ROMANIA .................................................................................................................. 60
           Cismaş Laura Mariana, Bucur Oana Nicoleta, Pitorac Ruxandra Ioana .................. 60
     THE INTEGRATION OF YOUNG ECONOMISTS ON THE LABOUR MARKET.
     THE PROFESSION OPTION – A DECISION FOR CAREER AND FOR A
     LIFESTYLE ..................................................................................................................... 61
           Dodescu Anca, Pop Cohuț Ioana, Borza Adriana ...................................................... 61
     ExperienCES AND TENDENCIES TO DECENTRALIZE THE CAPABILITIES OF
     THE ECONOMIC POLICY AT THE EUROPEAN UNION LEVEL ............................ 61
           Dodescu Anca.............................................................................................................. 61
     DYNAMICS ECONOMIC DISPARITIES IN NORTH-WEST REGION OF ROMANIA
      .......................................................................................................................................... 62
           Florea Adrian .............................................................................................................. 62
     Analysis of Economic Gaps between Urban and Rural Romanian Areas ........................ 63
           Gidiu Valeria, Toader Valentin................................................................................... 63

                                                                      10
MODERN         FACTORS               THAT             ENHANCE                   COMPANY‟S                     FINANCIAL
PERFORMANCE ............................................................................................................. 64
   Gruian Claudiu-Marian .............................................................................................. 64
THE FINANCIAL PERFORMANCE OF EUROPEAN COMPANIES: A
COMPARATIVE APPROACH ....................................................................................... 64
   Gruian Claudiu - Marian ............................................................................................ 64
A POSSIBLE MODEL FOR ANALYSING THE PRACTICAL NEEDS OF
STUDENTS IN ECONOMICS-PRACTeam MODEL .................................................... 65
   Hatos Roxana .............................................................................................................. 65
ANALYSE THE CAPITAL STRUCTURE AND PROFITABILITY OF
AGRICULTURAL CORPORATIONS ............................................................................ 66
   Herczeg Adrienn.......................................................................................................... 66
ABOUT OTHER KIND OF PRODUCTIVITY AND GROWTH (HOMO-SAPIENS TO
HOMO-OECONOMICUS) .............................................................................................. 66
   Jivan Alexandru .......................................................................................................... 66
ECONOMICS ON THE ROAD TO THE DEVELOPMENT.......................................... 67
   Jula Octavian .............................................................................................................. 67
THE RELATIONSHIP BETWEEN MACROECONOMIC VARIABLES AND
ROMANIAN CORPORATE DEFAULT RATES BETWEEN 2002-2008..................... 68
   Kovacs Ildiko, Karsai Zoltan-Krisztian, Suveg Orsolya, Joita Nicoleta..................... 68
ROMANIA'S ENERGY POTENTIAL OF RENEWABLE ENERGIES IN THE
CONTEXT OF SUSTAINABLE DEVELOPMENT ....................................................... 69
   Maghear Diana ........................................................................................................... 69
IS READY ROMANIA FOR EURO ADOPTION? FROM STRUCTURAL
CONVERGENCE TO BUSINESS CYCLE SYNCHRONIZATION ............................. 69
   Marinaş Marius - Corneliu, Socol Cristian, Socol Aura - Gabriela ........................... 69
EUROPEAN AUSTERITY WITHOUT GROWTH? EUROPEAN GROWTH
WITHOUT EUROPEAN DEMOCRACY? ..................................................................... 70
   Montani Guido ............................................................................................................ 70
A NEW THINKING FOR A NEW WORLD. REPRESENTATIONS FROM
ECONOMY ...................................................................................................................... 71
   Negucioiu Aurel .......................................................................................................... 71
TRENDS IN ROMANIAN TOURISM ............................................................................ 71
   Pirjol Florentina, Maxim Raluca Georgiana, Nagy Andrea....................................... 71
KEY ASPECTS OF ANALYSIS ON THE IMPACT OF RECENT DEVELOPMENTS
IN HEALTH SERVICES IN THE WESTERN REGION OF ROMANIA ..................... 72
   Pitorac Ruxandra Ioana, Toth Maria, Jivan Alexandru ............................................. 72
The Potential of Female Entrepreneurship as a Regional Growth and Development
Engine in the Western Romania ....................................................................................... 72
   Pop Cohut Ioana ......................................................................................................... 72
THE DYNAMICS OF THE ROMANIAN UNIVERSITIES GRADUATES
NUMBER IN THE 2005-2010 PERIOD ...................................................................... 73
   Popovici Adina ............................................................................................................ 73
TRUST – A FACTOR OF PRODUCTION ..................................................................... 73
   Prunea Petru ............................................................................................................... 73
DETERMINANTS OF COMMUNITY PARTICIPATION ............................................ 73
   Săveanu Tomina Gabriela........................................................................................... 73

                                                           11
  IMPROVING THE ECONOMIC ACTIVITIES IN THE LESS FAVOURED AREAS
  OF ROMANIA ................................................................................................................. 74
     Tileaga Cosmin, Cosmescu Ioan ................................................................................. 74
  TRENDS OF EMPLOYMENT IN INFORMAL SECTOR IN ROMANIA DURING
  CRISIS. ECONOMIC AND SOCIAL EFFECTS ............................................................ 75
     Vasile Valentina, Pisică Silvia .................................................................................... 75
  YOUTH LABOUR MARKET. MOBILITY, CAREER DEVELOPMENT, INCOMES.
  CHALLENGES AND OPPORTUNITIES ....................................................................... 75
     Vasile Valentina, Vasile Liviu ..................................................................................... 75
  THE EVOLUTION OF ROMANIA’S LABOR MARKET, DURING THE LAST 20
  YEARS ............................................................................................................................. 76
    Vădăşan Ioana, Părean Mihai - Olimpiu .................................................................... 76
  THE SPECIFIC MARKET RESEARCH METHODOLOGY USED AT GENERAL
  MOTOR'S EUROPE ........................................................................................................ 77
    Zima Liliana Adela, Toadere Rita Monica.................................................................. 77
SUB-SECTION: BUSINESS ADMINISTRATION ....................................................... 79
  THE TOURISM BARRIERS OF THE DISABLED IN ROMANIA .............................. 79
     Băbăiță Carmen Mihaela, Nagy Andrea, Filep Adrian Viorel ................................... 79
  START-UP FINANCING SOURCES: DOES GENDER MATTER? SOME EVIDENCE
  FOR EU AND ROMANIA............................................................................................... 79
     Bădulescu Alina .......................................................................................................... 79
  COLLATERAL‟S IMPORTANCE IN SMES FINANCING: WHAT IS THE BANKS‟
  RESPONSE? SOME EVIDENCE FOR ROMANIA ....................................................... 80
     Bădulescu Daniel, Petria Nicolae ............................................................................... 80
  THE BRAND EQUITY OF TOURISTIC DESTINATIONS – THE MEANING OF THE
  VALUE ............................................................................................................................. 81
     Ban Olimpia, Popa Luminiţa, Silaghi Simona ............................................................ 81
  COMPARATIVE STUDY REGARDING OVERNIGHTS REGISTERED IN THE
  MEMBER STATES OF THE EUROPEAN UNION AND ROMANIA, DURING JUNE-
  SEPTEMBER 2009/2010 ................................................................................................. 81
     Borma Afrodita............................................................................................................ 81
  HOLON APPROACH IN NEED OF COMPANY RESTRUCTURING ........................ 82
     Breban Ludovica, Bochiş Leonica .............................................................................. 82
  INVESTMENT STRUCTURE AND EVOLUTION IN THE CONTEXT OF
  ECONOMIC CRISIS ........................................................................................................ 83
     Codău Ciprian-Crăciun .............................................................................................. 83
  THE SIX SIGMA SYSTEM IN RELATION TO THE BUSINESS‟ STRATEGY AND
  PRIORITIES ..................................................................................................................... 83
     Drăgoi Ionuţ, David Marcel, Boldea Monica ............................................................. 83
  THE ROLE OF THE SUSTAINABILITY REPORT IN CAPITALISTIC FIRM........... 84
     Gazzola Patrizia, Meo Colombo Carlotta................................................................... 84
  CODES AND PRACTICES OF IMPLEMENTATION OF CORPORATE
  GOVERNANCE IN ROMANIA AND RESULTS REPORTING .................................. 85
     Grosu Maria ................................................................................................................ 85
  HOW COULD HOSPITALS ACT IN AN AGEING SOCIETY? ................................... 85
     Leuca Mirela ............................................................................................................... 85

                                                               12
     PROBLEMS AND CHANCES AT THE INTERFACE BETWEEN HOSPITAL CARE
     AND GERIATRIC REHABILITATION ......................................................................... 86
        Leuca Mirela, Fastenmeier Heribert .......................................................................... 86
     OUTSOURCING STRATEGIES. HOW TO FORMALIZE AND NEGOTIATE THE
     OUTSOURCING CONTRACT ....................................................................................... 87
        Pellicelli Michela, Meo Colombo Carlotta ................................................................. 87
     DESCRIPTIVE        ANALYSIS                 OF          THE          INTERNATIONAL                          MIGRATION
     PHENOMENON IN ROMANIA BETWEEN 1991 AND 2008...................................... 87
        Petrescu Raluca Mariana, Zgura Ion Daniel, Bac Dorin Paul .................................. 87
     THE INTANGIBLE ASSETS INVESTMENTS. CHARACTERISTICS AND THE
     ACCOUNTING TREATMENT ....................................................................................... 88
        Săcui Violeta, Predişcan Mariana .............................................................................. 88
     EUROPEAN CROSS-BORDER MERGERS AND ACQUISITIONS- REALITIES AND
     PERSPECTIVES .............................................................................................................. 88
        Vancea Mariana .......................................................................................................... 88
     VISITOR       AND       EXHIBITOR                   CLUSTERS                  AT          EASTERN-EUROPEAN
     AGRICULTURAL FAIRS ............................................................................................... 89
        Varga Levente ............................................................................................................. 89
  SUB-SECTION: ECONOMIC STATISTICS .................................................................. 91
     ROMANIA – PORTUGAL: A COMPARATIVE ANALYSIS OF THE TWO
     COUNTRIES‟ LABOUR MARKETS ............................................................................. 91
        Dimian Gina Cristina, Dimian Mihai ......................................................................... 91
     EVALUATING TEACHING PERFORMANCE. FROM THEORY TO PRACTICE
     USING STATISTICAL TOOLS ...................................................................................... 91
        Mare Codruta, Dragos Simona, Span Georgeta ......................................................... 91
     AN INVESTIGATION OF LONGRUN RELATIONSHIP BETWEEN ECONOMIC
     GROWTH, INVESTMENT AND EXPORT IN ROMANIA .......................................... 92
        Meşter Ioana Teodora, Simuţ Ramona Marinela........................................................ 92
     AN OVERVIEW OF HUMAN RESOURCES IN SCIENCE AND TECHNOLOGY
     (HRST) FROM RESEARCH DEVELOPMENT AND INNOVATION (RDI) SECTOR
     DURING 1993-2009 IN ROMANIA ............................................................................... 92
        Nicolov Mirela ............................................................................................................ 92
     SOME STATISTICAL RESULTS REGARDING THE EVALUATION OF THE
     QUALITY OF THE MASTER EDUCATION ................................................................ 93
        Popa Irimie, Dragos Cristian, Mare Codruţa............................................................. 93

SECTION:FINANCE, BANKING AND ACCOUNTING .................................................. 95
  SUB-SECTION: FINANCE............................................................................................... 95
     A STUDY CONCERNING THE OPPORTUNITY OF INTRODUCING THE FLAT
     TAX IN THE CASE OF THE INCOME TAX FOR INDIVIDUALS IN ROMANIA ... 95
          Abrudan Leonard, Abrudan Cristina .......................................................................... 95
     THE “NEW ECONOMY” AND THE ENTREPRENEUR: REASSESSMENT AND
     PERSPECTIVES IN THE CONTEXT OF XXI CENTURY ........................................... 95
          Achim Monica Violeta, Mara Eugenia Ramona, Borlea Sorin Nicolae...................... 95
     TAXATION OF WAGE INCOMES OBTAINED ABROAD BY PHYSICAL PERSONS
     .......................................................................................................................................... 95
                                                                     13
   Antonescu Mihail, Buziernescu Radu.......................................................................... 95
COMPULSORY SOCIAL CONTRIBUTIONS REGULATED BY THE TAX CODE . 96
   Antonescu Mihail, Antonescu Ligia ............................................................................ 96
THE FINANCIAL CRISIS AND ITS IMPLICATIONS ON THE PUBLIC DEFICIT OF
THE EU COUNTRIES ..................................................................................................... 97
   Bǎtrâncea Ioan, Bǎtrâncea Maria, Nichita Ramona-Anca ......................................... 97
THE OPPORTUNITIES AND CHALLENGES OF MICROINSURANCE ................... 97
   Benţe Corneliu ............................................................................................................ 97
THE LEGAL INDEBTEDNESS CAPACITY OF ROMANIAN LOCAL
GOVERNMENTS – THEORETICAL AND EMPIRICAL EVIDENCES ..................... 98
   Bilan Irina, Oprea Florin ............................................................................................ 98
SUBSTANTIATION OF THE PUBLIC DEBT SUSTAINABILITY USING KALMAN
FILTER ............................................................................................................................. 99
   Boloş Marcel, Otgon Cristian, Pop Razvan ................................................................ 99
USING SPLINE FUNCTIONS FOR THE SUBSTANTIATION OF TAX POLICIES BY
LOCAL AUTHORITIES .................................................................................................. 99
   Boloş Marcel, Pop Razvan, Otgon Cristian ................................................................ 99
INCREASE IN THE ROLE OF THE FINANCIAL SYNTHESIS REPORTS FOR
ACCESSION OF THE EUROPEAN STRUCTURAL FUNDS .................................... 100
   Chirilă Emil, Droj Laurenţiu .................................................................................... 100
THE FINANCIAL EQUILIBRIUM AT THE MICROECONOMIC LEVEL IN THE
CONTEXT OF ECONOMIC CRISIS ............................................................................ 101
   Chirilă Emil............................................................................................................... 101
THE IMPORTANCE OF THE JURIST AND ECONOMIST GHEORGHE N. LEON IN
THE EVOLUTION OF FINANCIAL SCIENCE .......................................................... 101
   Cirmaciu Diana, Popa Carmen ................................................................................ 101
WEATHER INDEX- THE BASIS OF WEATHER DERIVATIVES ........................... 102
   Ciumaş Cristina, Botoş Horia Mircea ...................................................................... 102
FISCAL DECENTRALIZATION AND FISCAL AUTONOMY IN THE EU MEMBER
STATES.......................................................................................................................... 103
   Crâşneac Alexandru, Heteş Gavra Roxana, Miru Oana........................................... 103
STANDING‟S PLACE AND ROLE IN THE FINANCIAL ANALYSIS OF THE
ECONOMIC ENTITY .................................................................................................... 103
   Csegedi Sandor, Bǎtrâncea Larissa-Margareta, Bejenaru Aurel ............................. 103
APPROACHES REGARDING THE TAX EVASION IN ROMANIA ........................ 103
   David Delia, Pojar Daniela ...................................................................................... 103
A BEHAVIORAL APPROACH TO THE GLOBAL FINANCIAL CRISIS ................ 104
   Dedu Vasile, Turcan Ciprian Sebastian, Turcan Radu ............................................. 104
THE VALUE ADDED TAX AND THE EVASION CHAIN OF INTRA-
COMMUNITARIAN VAT ............................................................................................ 104
   Deliman Eugen, Herbei Marius, Bene Gheorghe Florin, Dumiter Florin Cornel .... 104
DETERMINATION OF RESIDUAL VALUE WITHIN THE COST BENEFIT
ANALYSIS FOR THE PROJECTS FINANCED BY THE EUROPEAN UNION....... 105
   Droj Laurenţiu .......................................................................................................... 105
OPTIMIZING LOCAL BUDGET BALANCING IN ROMANIA ................................ 106
   Gyorgy Attila, Gyorgy Adina Cristina ...................................................................... 106
EFFECTIVE CORPORATE INCOME TAX RATE IN ROMANIA: A MICRO-
BACKWARD LOOKING APPROACH ........................................................................ 106
                                                           14
        Lazăr Sebastian ......................................................................................................... 106
   VALUE ADDED TAX IN THE ECONOMIC CRISIS CONTEXT ............................. 107
        Mara Eugenia Ramona, Cuceu Ionuţ, Mara Cristian ............................................... 107
   THE USE OF EXPERT SYSTEMS IN AGRICULTURAL INSURANCE. NECESSITY
   VS. REALITY ................................................................................................................ 107
        Moisuc Diana - Aderina, Nan Anca - Petruţa ........................................................... 107
   PRINCIPLES AND PROCEDURES ON FISCAL ........................................................ 108
        Morar Ioan Dan ........................................................................................................ 108
   THE EVOLUTION OF FISCAL INDICATORS IN THE LAST YEARSIN ROMANIA
   ........................................................................................................................................ 108
        Morar Ioan Dan, Sabau - Popa Claudia Diana, Kulcsar Edina .............................. 108
   NOKIA PERFORMANCE AND CASH FLOW ANALYSIS ....................................... 109
        Moscviciov Andrei ..................................................................................................... 109
   PUBLIC DEBT SUSTAINABILITY ANALYSIS: EU CASE ...................................... 109
        Nicolescu Cristina, Pirtea Marilen, Boţoc Claudiu .................................................. 109
   PUBLIC EXPENDITURE POLICY IN THE CONTEXT OF ECONOMIC CRISIS -
   CHALLENGES AND IMPLICATIONS ....................................................................... 110
        Oprea Florin, Petrişor Mihai - Bogdan .................................................................... 110
   FINANCIAL CONTROL EFFICIENCY IN ECONOMIC ENTITIES ......................... 110
        Pop Ioan .................................................................................................................... 110
   TAX CONTROL - PREVENTION AND CONTROL OF TAX EVASION ................. 111
        Pop Ioan .................................................................................................................... 111
   VIEWS ON THE CONCEPT OF FINANCIAL POLICY AND ITS MANIFESTATION
   ........................................................................................................................................ 111
        Pop Mugurel Gabriel Sorin ...................................................................................... 111
   SMES' SECTOR ACCESS TO FINANCE: AN OVERVIEW ...................................... 112
        Roman Angela ........................................................................................................... 112
   LABOUR TAXATION IN THE EUROPEAN UNION ................................................ 112
        Sabău - Popa Diana, Kulcsar Edina, Sabău-Popa Liviu Mihai ............................... 112
   BASES OF STATE SUPERIOR EDUCATIONAL SYSTEM FINANCING FROM
   ROMANIA ..................................................................................................................... 113
        Schneider Suzana, Cosma Dorin, Bene Gheorghe Florin......................................... 113
   THE FLAT TAX - A COMPARATIVE STUDY OF THE EXISTING MODELS....... 113
        Tulai Ioan Constantin, Schiau (Macavei) Laura - Liana .......................................... 113
SUB-SECTION: BANKING .......................................................................................... 115
   COMPETITION IN ROMANIAN BANKING SECTOR.............................................. 115
        Andrieş Alin Marius, Căpraru Bogdan ..................................................................... 115
   VALUE AT RISK - CORPORATE RISK MEASUREMENT ...................................... 116
        Aniş Cecilia-Nicoleta, Roth Anne-Marie, Apolzan (Angyal) Carmen-Maria ........... 116
   MEASURING THE RISK OF BANKRUPTCY IN THE COMMERCIAL SECTOR IN
   ROMANIA ..................................................................................................................... 116
        Bătrâncea Larissa-Margareta .................................................................................. 116
   TROUBLESHOOTING BASEL II: THE ISSUE OF PROCYCLICALITY ................. 116
        Benyovszki Annamaria, Bordas Eszter, Kurti Laszlo - Adam, Szodorai Melinda ..... 116
   EXTERNAL FACTORS INFLUENCE ON INFLATION: THE CASE OF ROMANIA
   ........................................................................................................................................ 117
        Căpraru Bogdan, Ihnatov Iulian ............................................................................... 117
                                                                   15
COORDINATES AND OBJECTIVES OF ROMANIAN FISCAL POLICY ............... 118
      Caraiman Adrian - Cosmin ....................................................................................... 118
THE IMPACT OF THE FINANCIAL AND ECONOMIC GLOBAL CRISIS OVER
THE ROMANIAN BANKING SYSTEM...................................................................... 118
      Ciobanu (Sireteanu) Elena ........................................................................................ 118
FLUCTUATION IN PENSION FUND ASSETS PRIVATELY MANAGED UNDER
THE INFLUENCE OF CERTAIN FACTORS. STATISTICAL STUDY IN ROMANIA
 ........................................................................................................................................ 119
      Cristea Mirela, Siminică Marian, Drăcea Raluca .................................................... 119
CENTRAL BANK INDEPENDENCE AND MACROECONOMIC PERFORMANCES
- AN EMPIRICAL APPROACH ................................................................................... 119
      Dumiter Florin Cornel, Coroiu (Petriș) Sorina ........................................................ 119
COMPETITION IN THE BANKING SYSTEM OF REPUBLIC OF MOLDOVA ..... 120
      Enicov Igor, Chetraru Aliona ................................................................................... 120
EXCHANGE-RATES                               FORECASTING:                          EXPONENTIAL                          SMOOTHING
TECHNIQUES AND ARIMA MODELS ...................................................................... 121
      Făt Codruţa Maria, Dezsi Eva .................................................................................. 121
MEASURES AND INSTRUMENTS USED AS A RESPONSE TO CRISES IN
EUROPEAN UNION – AN OVERVIEW ..................................................................... 121
      Fîrţescu Bogdan ........................................................................................................ 121
OVERVIEW OF THE RELEVANT INDICATORS OF DEFAULTED AND NON-
DEFAULTED COMPANIES AND POSSIBILITIES OF IMPROVEMENT FOR THE
RATING SYSTEMS USED BY THE ROMANIAN COMMERCIAL BANKS .......... 121
      Kovacs Ildiko, Doczi Henrietta, Erdely Attila, Felfalusi Éva, Knoch Renáta -Kinga,
      Patka Kinga-Enikő .................................................................................................... 121
THE RISK OF FAILURE - CAUSES AND CONSEQUENCES OF THE IT INDUSTRY
 ........................................................................................................................................ 122
      Moscviciov Andrei ..................................................................................................... 122
EMPIRICAL STUDY OF THE PROBABILITY OF DEFAULT IN CASE OF
ROMANIAN COMPANIES LISTED ON STOCK EXCHANGE ................................ 122
      Petru Tunde Petra, Farkas Dalma - Zsuzsa, Furdek Balazs - Marton, Marton Noemi,
      Racz Timea Erzsebet ................................................................................................. 122
THE IMPLICATIONS OF VARYING EXCHANGE RATES FOR THE
INTERNATIONAL TRADE .......................................................................................... 123
      Sandu Carmen ........................................................................................................... 123
THE IMPACT OF FINANCIAL INNOVATION ON THE DEVELOPMENT OF THE
CURRENT FINANCIAL SYSTEMS ............................................................................ 123
      Şargu Alina Camelia ................................................................................................. 123
LIQUIDITY MANAGEMENT AND CORPORATE RISK .......................................... 124
      Tarnóczi Tibor, Fenyves Veronika ............................................................................ 124
ASSETS‟ STRUCTURE AT CREDIT UNIONS ........................................................... 125
      Tiplea Augustin ......................................................................................................... 125
THE CREDIT RISK-COMPONENT OF THE BANKING RISKS .............................. 125
      Tirlea Rodica............................................................................................................. 125
MODELING ROMANIAN EXCHANGE RATE EVOLUTION WITH GARCH,
TGARCH, GARCH- IN MEAN MODELS ................................................................... 126
      Trenca Ioan, Cociuba Mihail Ioan............................................................................ 126
The Politics of the National Bank of Romania to Deal with Crediting Risk .................. 126
                                                                  16
     Vechiu Camelia, Gherman Liliana - Victoria, Tudose Geanina ............................... 126
   A LINIAR MODEL OF ANALYZING INFLATION IN ROMANIA, BULGARIA,
   TURKEY AND CROAŢIA ............................................................................................ 127
     Zăpodeanu Daniela, Gavriş Natalia, Leac Dafina Roxana, Teudan Ana - Maria ... 127
   MONEY: FROM STATISTICAL DEFINITION TO MONETARY POLICY FOR
   ADOPTING EURO ........................................................................................................ 127
     Zăpodeanu Daniela ................................................................................................... 127
SUB-SECTION: ACCOUNTING .................................................................................. 129
   EXAMINE THE PAST FOR GOING FURTHER: A LITERATURE REVIEW IN THE
   FIELD OF FAIR VALUE .............................................................................................. 129
         Andreicovici Ionela - Irina ........................................................................................ 129
   ACCOUNTING AND CREATIVITY: A SOCIOLOGICAL AND PSYCHOLOGICAL
   APPROACH ................................................................................................................... 129
         Balaciu Diana Elisabeta ........................................................................................... 129
   CHALLENGES OF ENVIRONMENTAL ACCOUNTING AND TAXATION IN
   ROMANIA ..................................................................................................................... 130
         Blidisel Rodica Gabriela, Popa Adina Simona, Farcane Nicoleta ........................... 130
   INTELLECTUAL CAPITAL REPORTING AND DISCLOSURE IN THE ANNUAL
   REPORTS OF ROMANIAN MANUFACTURING LISTED COMPANIES –
   THEORETICAL FRAMEWORK .................................................................................. 130
         Bogdan Victoria, Platon Judit, Farcaş Mariana ...................................................... 130
   INTELLECTUAL CAPITAL REPORTING AND DISCLOSURE IN THE ANNUAL
   REPORTS OF ROMANIAN MANUFACTURING LISTED COMPANIES –
   METHODOLOGY AND DISCUSSION OF RESULTS ............................................... 131
         Bogdan Victoria, Platon Judit, Popa Dorina Nicoleta ............................................. 131
   THE PROFIT TARGET IN A RESTAURATION UNIT .............................................. 131
         Briciu Sorin, Scorţe Carmen ..................................................................................... 131
   MANAGERIAL AND COST ACCOUNTING PRACTICES – A ROMANIAN
   OVERVIEW ................................................................................................................... 132
         Cardos Ildiko Reka, Pete Ştefan................................................................................ 132
   HOW ROMANIAN FINANCIAL AND INTERNAL AUDITORS ACQUIRE
   ACCOUNTING INFORMATION SYSTEMS KNOWLEDGE AND COMPETENCES?
    ........................................................................................................................................ 132
         Cardoş Vasile - Daniel .............................................................................................. 132
   PROFESSOR I.N. EVIAN-PRECURSOR OF ACCOUNTING SCHOOL FROM CLUJ
    ........................................................................................................................................ 133
         Crişan Teodora Viorica, Tiron Tudor Adriana ......................................................... 133
   ACCOUNTING FOR SUSTAINABILITY: WHAT NEXT? A RESEARCH AGENDA
    ........................................................................................................................................ 134
         Cunningham Gary M., Fagerstrom Arne, Hassel Lars G. ........................................ 134
   A LONGITUDINAL ANALYSIS REGARDING THE EVOLUTION OF PROFIT TAX
   REGULATIONS IN ROMANIA – AN EMPIRICAL VIEW........................................ 134
         Cuzdriorean - Vladu Dan Dacian, Albu Catalin Nicolae, Albu Nadia, Fekete
         Szilveszter .................................................................................................................. 134
   ENHANCING ASSETS' PROTECTION THROUGH AN ADEQUATE MONITORING
   OF INTERNAL CONTROL SYSTEM BY INTERNAL AUDIT ................................. 135
         Dan Eugen Cosmin ................................................................................................... 135
                                                                   17
ISSUES RELATED TO THE ACCOUNTING TREATMENT OF THE TANGIBLE
AND INTANGIBLE ASSETS DEPRECIATION ......................................................... 136
      Danciu Radu, Deac Marius....................................................................................... 136
STAGES OF DEVELOPMENT WITHIN THE ROMANIAN FINANCIAL
ACCOUNTING SYSTEM IN TERMS OF LABOUR PROTECTION FOR THE
EMPLOYED WORKERS IN ROMANIA AND IN OTHER EUROPEAN COUNTRIES
 ........................................................................................................................................ 137
      David Delia, Pojar Daniela ...................................................................................... 137
PRINCIPLES- AND RULES-BASED ACCOUNTING DEBATE. IMPLICATIONS
FOR AN EMERGENT COUNTRY ............................................................................... 137
      Deaconu Adela .......................................................................................................... 137
THE TRANSPARENCY IN THE REPORTING OF INTELLECTUAL CAPITAL:
BETWEEN THE MANAGEMENT RESPONSIBILITY AND THE STAKEHOLDERS'
REQUIREMENTS.......................................................................................................... 138
      Dicu Roxana-Manuela .............................................................................................. 138
THE BUDGETARY POLITICS ON THE MANAGEMENT OF THE PUBLIC
RESOURCES THROUGH THE STATE TREASURY................................................. 139
      Eftene (Ionescu) Nicoleta, Mihai (Andreescu) Gabriela........................................... 139
CORPORATE GOVERNANCE THE ROLE AND APPLICATION OF THE
PRINCIPLE OF TRANSPARENCY ............................................................................. 139
      Fulop Melinda Timea ................................................................................................ 139
PREFERENCE OF THE LISTED ENTITIES REGARDING THE SELECTION OF
THE EXTERNAL AUDITOR........................................................................................ 140
      Fulop Melinda Timea, Tiron-Tudor Adriana, Şpan Georgeta Ancuţa, Popa Irimie
      Emil ........................................................................................................................... 140
AUDIT EXPECTATION GAP IN THE PUBLIC SECTOR IN ROMANIA ................ 140
      Gherai Dana Simona................................................................................................. 140
THE ROLE OF THE ACCOUNTANCY PROFESSIONAL BODIES IN DEVELOPING
SOCIAL AND ENVIRONMENTAL REPORTING ..................................................... 141
      Gîrbină Mădălina, Albu Nadia, Albu Cătălin ........................................................... 141
IMPLICATIONS OF THE APPLICATION OF IFRS FOR SMES IN ROMANIA ON
TAXABLE AND DISTRIBUTABLE PROFIT ............................................................. 142
      Gîrbină Mădălina, Albu Nadia, Albu Cătălin ........................................................... 142
STUDY REGARDING THE INFLUENCE OF ROMANIAN ACCOUNTING
REGULATIONS ON CREATIVE ACCOUNTING TECHNIQUES ............................ 143
      Groşanu Adrian, Răchişan Paula Ramona, Berinde Sorin Romulus ........................ 143
ENVIRONMENTAL REPORTING AT INTERNATIONAL LEVEL (STUDY OF THE
LITERATURE) .............................................................................................................. 143
      Ienciu Ionel-Alin........................................................................................................ 143
EVALUATION OF ENVIRONMENTAL REPORTING FOR COMPANIES LISTED
ON THE LONDON STOCK EXCHANGE ................................................................... 144
      Ienciu Ionel-Alin........................................................................................................ 144
A RETROSPECTIVE OF EVALUATION MODELS ON INTELLECTUAL CAPITAL
 ........................................................................................................................................ 145
      Ienciu Nicoleta Maria ............................................................................................... 145
THE DEPRECIATED REPLACEMENT COST - REPRESENTATION OF FAIR
VALUE IN ACCOUNTING. TENDENCIES AND PERSPECTIVES IN THE
ROMANIAN ACCOUNTING PRACTICE ................................................................... 146
                                                                18
   Manea Marinela-Daniela.......................................................................................... 146
THE PLACE OF THE EMERGING ECONOMY OF ROMANIA INSIDE THE
EUROPEAN UNION ECONOMIES IN TERMS OF FTSE CRITERIA ...................... 146
   Mardiros Daniela-Neonila ........................................................................................ 146
THE IMPACT OF IFRS ON REPORTING FOR BUSINESS COMBINATIONS: AN
IN-DEPTH ANALYSIS USING THE TELECOMMUNICATIONS INDUSTRY ...... 147
   Mario Carrara, Diogenis Baboukardos, Cunningham Garry M., Hassel Lars G. ... 147
RECENT DEVELOPMENTS OF THE FINANCIAL REPORTING MODEL:
THEORETICAL STUDIES IN REVIEW ...................................................................... 147
   Matiş Dumitru, Bonaci Carmen Giorgiana .............................................................. 147
PROFESSIONAL JUDGMENT AND CREATIVE ACCOUNTING UNDER IFRS IN
EX-COMMUNIST COUNTRIES: CASE OF ROMANIA............................................ 148
   Megan Ovidiu ............................................................................................................ 148
THE BUDGET, ITS THEORETICAL FUNCTION AND IMPLEMENTATION IN THE
PUBLIC CULTURAL SYSTEM ................................................................................... 148
   Mihai (Andreescu) Gabriela, Ionescu (Eftene) Nicoleta, Vatasoiu Cristian Ionel ... 148
AUDITOR ROTATION – A CRITICAL AND COMPARATIVE ANALYSIS ........... 149
   Mocanu Mihaela, Ştefănescu Aurelia, Ţurlea Eugeniu ............................................ 149
EVIDENCE FROM THE GERMAN CAPITAL MARKET REGARDING THE VALUE
RELEVANCE OF CONSOLIDATED VERSUS PARENT COMPANY FINANCIAL
STATEMENTS .............................................................................................................. 150
   Muller Victor - Octavian ........................................................................................... 150
HOW TO BETTER MEET OUR STUDENTS‟ LEARNING STYLE THROUGH THE
COURSE RESOURCES................................................................................................. 150
   Mutiu Alexandra, Moldovan Georgeta ..................................................................... 150
CONCEPTUAL DELIMITATIONS OF CONTROLLING........................................... 151
   Nedelcu Şerban ......................................................................................................... 151
FREE CASH FLOW AS PART OF VOLUNTARY REPORTING. LITERATURE
REVIEW ......................................................................................................................... 151
   Negrea Laura Georgeta, Matiş Dumitru, Mustaţă V. Razvan .................................. 151
CASH FLOW REPORTING AND CREATIVE ACCOUNTING ................................ 152
   Negrea Laura Georgeta, Matiş Dumitru, Mustaţă V. Razvan .................................. 152
A NEW APROACH OF CONCEPTUAL FRAMEWORK FOR GENERAL PURPOSE
FINANCIAL REPORTING BY PUBLIC SECTOR ENTITIES ................................... 153
   Nistor Cristina........................................................................................................... 153
INTERNATIONAL AND EUROPEAN                                          ACCOUNTING CONVERGENCE-AN
ESSENTIAL PART OF THE INFORMATION TRANSPARENCY “PUZZLE” ........ 154
   Popa Anca Sabina ..................................................................................................... 154
AN INVESTIGATIVE STUDY REGARDING SMES SPECIFIC ACCOUNTING
POLICIES ....................................................................................................................... 154
   Popa Dorina Nicoleta, Beleneşi Marioara, Meşter Ioana Teodora ......................... 154
THE TYPOLOGY OF REGIONAL MERGERS FROM THE PERSPECTIVE OF
FINANCIAL-ACCOUNTING ASPECTS ..................................................................... 154
   Răchişan Paula Ramona, Berinde Sorin Romulus .................................................... 154
CURRENT STATE AND EVOLUTION PERSPECTIVES FOR MANAGEMENT
ACCOUNTING IN THE ENERGY SECTOR BY IMPLEMENTING THE ABC
METHOD ....................................................................................................................... 155
   Rof Letiţia Maria, Farcane Nicoleta ......................................................................... 155
                                                         19
     COMPARING EXPERIENCES IN REPORTING INTELLECTUAL CAPITAL IN
     UNIVERSITIES ............................................................................................................. 156
           Silvestri Antonella, Veltri Ştefania ............................................................................ 156
     PARTICIPATORY GOVERNANCE IN THE PUBLIC HEALTHCARE SYSTEMS OF
     THE SCANDINAVIAN AND BALTIC COUNTRIES ................................................. 156
           Ştefănescu Aurelia, Mocanu Mihaela, Turlea Eugeniu ............................................ 156
     THE GOING CONCERN THEORY AND PRACTICE IN THE FINANCIAL AUDIT
      ........................................................................................................................................ 157
           Ţară Ioan Gheorghe.................................................................................................. 157
     IFRS COMPLIANCE REGARDING INFORMATION DISCLOSED BY COMPANIES
     IN CONSOLIDATED FINANCIAL STATEMENTS - CASE STUDY ON IAS 23
     BORROWING COSTS APPLICABILITY- .................................................................. 158
           Tiron - Tudor Adriana, Fekete Szilvester, Dragu Ioana - Maria .............................. 158
     RESSOURCES ALLOCATION POSSIBILITIES WITHIN HEALTH SERVICES .... 158
           Toplicianu Selina, Manea Liliana ............................................................................. 158
     THE INTELLECTUAL CAPITAL STATEMENT AND THE BALANCED
     SCORECARD AS COMPLEMENTARY MODELS IN MEASURING FIRM
     INTANGIBLES .............................................................................................................. 159
           Veltri Ştefania............................................................................................................ 159
     SOME INSIGHTS REGARDING CREATIVE ACCOUNTING IN ROMANIAN
     ACCOUNTING ENVIRONMENT - REGULATORS, FINANCIAL AUDITORS AND
     PROFESSIONAL BODIES OPINION .......................................................................... 160
           Vladu Alina Beattrice, Grosanu Adrian .................................................................... 160
     DETECTION OF EARNINGS MANAGEMENT – A PROPOSED FRAMEWORK
     BASED ON ACCRUALS APPROACH RESEARCH DESIGNS ................................ 160
           Vladu Alina Beattrice, Cuzdriorean Dan Dacian ..................................................... 160

SECTION: MANAGEMENT AND MARKETING ......................................................... 163
  SUB-SECTION: MANAGEMENT ................................................................................ 163
     OBJECTIVES, PERFORMANCES, RESULTS – VIEWS ON THEIR USE IN THE
     PUBLIC ORGANIZATIONS FROM ROMANIA ........................................................ 163
        Bacanu Bogdan ......................................................................................................... 163
     PUBLIC-PRIVATE PARTNERSHIP IN COMMUNITY DEVELOPMENT. THE CASE
     OF ROMANIA. CONCEPT AND MANAGEMENT.................................................... 164
        Bibu Nicolae, Lisetchi Mihai..................................................................................... 164
     ELEMENTS FOR A MODEL OF ENTREPRENEURIAL SCHOOL FOR WOMEN IN
     RURAL AREAS OF ROMANIA ................................................................................... 164
        Botezat Elena Aurelia, Tarcza Teodora Mihaela...................................................... 164
     ORGANIZATIONAL STRESS AND ITS IMPACT ON WORK PERFORMANCE .. 165
        Bucurean Mirela, Costin Mădălina - Adriana .......................................................... 165
     THE ADOPTION/ADAPTATION OF THE „SUPPLY CHAIN” CONCEPT IN
     ROMANIAN .................................................................................................................. 166
        Butilcă Delia - Alexandra, Crişan Emil Lucian, Salanţă Irina - Iulia, Ilieş Liviu .... 166
     HOW FUTURE MANAGERS VIEW SOCIETAL CULTURE: A CROSS-COUNTRY
     COMPARISON .............................................................................................................. 166
        Catana Gheorghe Alexandru, Catana Doina ............................................................ 166

                                                                     20
REGENERABLE ENERGY, A KEY TO INTEGRATING COMPETITIVE POLICIES
WITH ADVANCED ENVIRONMENT PROTECTION STRATEGIES ...................... 167
   Cinade Lucian Ovidiu ............................................................................................... 167
CURRENT ECONOMIC AND MEDICAL REFORMS IN THE ROMANIAN HEALTH
CARE SYSTEM ............................................................................................................. 167
   Drăgoi Mihaela Cristina ........................................................................................... 167
COMPARATIVE STUDY ON CORPORATE GOVERNANCE ................................. 168
   Gavrea Corina, Stegerean Roxana ........................................................................... 168
COMPETITIVENESS AND PERFORMANCE ON THE COSMETICS MARKET ... 169
   Grigore Ana - Maria, Bâgu Constantin, Radu Cătălina, Cătăneţ Alina................... 169
MANAGEMENT MATERIAL COSTS ELEMENTS ................................................... 169
   Ioana Adrian ............................................................................................................. 169
INTRINSIC AND EXTRINSIC MOTIVATION - AN INVESTIGATION OF
PERFORMANCE CORRELATION .............................................................................. 170
   Matei Mirabela Constanţa, Abrudan Maria-Madela ................................................ 170
HUMAN RESOURCE MANAGEMENT - THE ROLE AND IMPORTANCE OF
MULTINATIONAL COMPANIES ............................................................................... 171
   Muscalu Emanoil, Stăniţ Alexandra.......................................................................... 171
EDUCATIONAL MANAGEMENT- AS THE RESPONSE TO THE SOCIAL-
ECONOMIC CRISIS IN CONTEMPORARY EUROPE .............................................. 171
   Ortan Florica ............................................................................................................ 171
COMMUNICATION AND CONFLICT IN PUBLIC INSTITUTIONS ....................... 172
   Ponea Constantin Ştefan, Crăciun Liviu ................................................................... 172
THE ROLE OF THE E-PROCUREMENT IN THE PURCHASING PROCESS ......... 172
   Pop Sitar Corina ....................................................................................................... 172
STUDY ON QUALITY PARAMETERS AND ENZYMATIC ACTIVITY OF GRAIN
MILL PRODUCTS REGION IN TRANSYLVANIA ................................................... 173
   Popa Maria, Bostan Roxana, Varvara Simona, Glevitzky Mirel, Tomescu Ada, Popa
   Dorin ......................................................................................................................... 173
HUMAN RESOURCES MOTIVATION - A CHALLENGE FOR SMES ECONOMIC
PERFORMANCES ......................................................................................................... 173
   Popescu Dan, Chivu Iulia, Ciocârlan -Chitucea Alina, Popescu Daniela-Oana ..... 173
OPPORTUNITY TO REDUCE RESISTANCE TO CHANGE IN A PROCESS OF
ORGANIZATIONAL CHANGE ................................................................................... 174
   Predişcan Mariana, Săcui Violeta ............................................................................ 174
MANAGEMENT, COMPETITIVENESS AND BUSINESS HIGHER EDUCATION 174
   Radu Catălina, Begu Liviu - Stelian, Cătăneţ Alina, Grigore Ana - Maria .............. 174
THE INTENSIFICATION OF THE MOTIVATIONAL CHARACTER OF SMES
MANAGEMENT............................................................................................................ 175
   Robu Nicoleta Raluca, Savlovschi Ludovica Ioana .................................................. 175
Methods of identification of the need for organizational change as being opportune .... 176
   Roiban Roxana Nadina ............................................................................................. 176
EXPLANATORY ECONOMETRIC METHOD FOR THE ANALYSIS OF THE
BEHAVIOR MANAGEMENT IN ORGANIZATIONS IN ROMANIA ...................... 176
   Roşca Constantin ...................................................................................................... 176
THE EVALUATION OF EDUCATIONAL SERVICES QUALITY BY THE
STUDENTS OF THE FACULTY OF ECONOMICAL SCIENCES „DIMITRIE
CANTEMIR” CLUJ-NAPOCA ..................................................................................... 177
                                                           21
      Rusu Corina, Vlad Miranda-Petronella .................................................................... 177
   SOCIAL PERCEPTION OF THE EDUCATION SYSTEM REFORM. SURVEY
   CONDUCTED IN UPPER HIGH SCHOOLS OF BIHOR COUNTY .......................... 177
      Sabau Remus Mircea................................................................................................. 177
   GENERAL CONSIDERATIONS REGARDING THE EVALUATION OF
   PERFORMANCES OF EMPLOYEES IN A SME ........................................................ 178
      Savlovschi Ludovica Ioana, Robu Nicoleta Racula .................................................. 178
   DO WE REALLY HATE OUR JOBS? DETERMINANTS OF JOB SATISFACTION
   IN ROMANIA ................................................................................................................ 178
      Săveanu Tomina Gabriela, Săveanu Sorana Mihaela .............................................. 178
   ASPECTS OF SERVICE QUALITY AND ECOLABELLING OF ROMANIAN
   LODGING SERVICES .................................................................................................. 179
      Tomescu Ada Mirela ................................................................................................. 179
   MANAGING RENEWABLE ENERGY IN THE EU10 REGION ............................... 180
      Zamfir Andreea, Bucurean Mirela ............................................................................ 180
SUB-SECTION: MARKETING .................................................................................... 181
   STUDY REGARDING STUDENTS‟ SATISFACTION WITH INSTRUCTIONAL
   PROCESS AS A DIMENSION OF ACADEMIC PERFORMANCE OF
   INSTITUTIONS OF HIGHER EDUCATION ............................................................... 181
      Băcilă Mihai Florin, Ţîrca (Drule) Alexandra - Maria, Ciornea Raluca, Chiş
      Alexandru .................................................................................................................. 181
   INTERNAL ENVIRONMENT ANALYSIS TECHNIQUES ....................................... 181
      Caescu Stefan Claudiu, Popescu Andrei, Ploesteanu Mara Gabriela ...................... 181
   SOCIAL RESPONSIBILITY VALUES: A CROSS COUNTRY COMPARISON ...... 182
      Catană Doina, Catană Gheorghe Alexandru ............................................................ 182
   THE ROLE OF THE SALES TECHNIQUES IN THE MARKETING ACTIVITY OF
   THE COMPANIES IN BUCHAREST ........................................................................... 183
      Cruceru Anca, Moise Daniel, Tatu Cristi ................................................................. 183
   THE PREMISES OF STRATEGIC MARKETING PLANNING IMPLEMENTATION
   WITHIN SMALL AND MEDIUM SIZED ENTERPRISES ......................................... 183
      Curmei Cătălin Valeriu, Ionescu Florin Tudor, Popescu Andrei ............................. 183
   STUDY ON RETAIL BRAND AWARENESS IN RETAIL ........................................ 184
      Dabija Dan Cristian, Abrudan Ioana Nicoleta ......................................................... 184
   EDUCATIONAL INOVATION AND CONSUMER BEHAVIOUR. A STUDY OF
   STUDENTS’ PERCEPTIONS ON THE USE OF E-LEARNING IN CLASS. ............. 184
      Eftimie Raluca Cristina, Avram Emanuela, Tufan Adriana ...................................... 184
   VISUAL POLLUTION: A NEW AXIOLOGICAL DIMENSION OF MARKETING 185
      Enache Elena, Morozan Gigi - Cristian, Purice Suzana .......................................... 185
   WIRELESS ADVERTISING: A STUDY OF MOBILE PHONE USERS .................... 186
      Gurău Călin .............................................................................................................. 186
   THE IMAGE OF INVESTMENT AND FINANCIAL SERVICES COMPANIES IN
   WWW LANDSCAPE (WORLD WIDE WEB) ............................................................. 187
      Iancu Ioana Ancuţa ................................................................................................... 187
   PRODUCT PORTFOLIO ANALYSIS - ARTHUR D. LITTLE MATRIX .................. 187
      Ionescu Florin Tudor, Curmei Cătălin Valeriu ........................................................ 187
   CONSUMER BEHAVIOR ON THE FRUITS AND VEGETABLES MARKET ........ 188

                                                               22
    Istudor Nicolae, Pelau Corina .................................................................................. 188
LE DYNAMISME DES TPE ET PME ET L'`EVOLUTION DE L'ECONOMIE
ROUMAINE ................................................................................................................... 188
    Jubenot Marie - Noelle, Marc De La Villefromoit .................................................... 188
DEVELOPMENT OF THE E-GOVERNMENT MARKET IN THE EUROPEAN
UNION: AN ANALYSIS OF THE SUPPLY VERSUS DEMAND SIDES ................. 189
    Palade Marius, Vegheş Călin.................................................................................... 189
PORTFOLIO ANALYSIS – A BASIC INSTRUMENT IN STRATEGIC PLANNING.
CASE STUDY ON THE ROMANIAN INSURANCE MARKET ................................ 189
    Petrescu Marian, Petrescu Eva Cristina, Ioncică Diana, Bicăjanu Vasile .............. 189
Competences ACQUIRED by graduates through marketing higher education training –
findings from the employers‟ perspective....................................................................... 190
    Plăiaş Ioan, Pop Ciprian Marcel, Dabija Dan Cristian, Băbuţ Raluca ................... 190
A      QUALITATIVE              RESEARCH                    REGARDING                      THE             MARKETING
COMMUNICATION TOOLS USED IN THE ONLINE ENVIRONMENT ................ 190
    Nicolae Al. Pop, Acatrinei Carmen........................................................................... 190
The Competitive Positioning of the SME‟s on the Market ............................................. 191
    Pop (Bandi) Ramona ................................................................................................. 191
EUROPEAN POLICIES FOR THE STIMULATION OF THE DEVELOPMENT OF
SMALL AND MIDDLE SIZE ENTREPRISES ............................................................ 192
    Pop (Bandi) Ramona ................................................................................................. 192
INVESTIGATING THE PATIENT SATISFACTION WITHIN ROMANIAN PUBLIC
AND PRIVATE HOSPITALS ....................................................................................... 192
    Popa Adela Laura, Roşca Remus Dorel, Mihoc Florin ............................................ 192
STRATEGICALLY REPOSITIONING RUSSIA ......................................................... 193
    Popescu Andrei, Caescu Ştefan Claudiu, Brandabur Raluca Ecaterina .................. 193
POSITIONING VS. STUDENTS, A TROUBLESOME RELATIONSHIP .................. 193
    Popescu Andrei, Brandabur Raluca Ecaterina, Curmei Cătălin Valeriu ................. 193
THE IMPORTANCE OF ENVIRONMENTAL PROTECTION IN CSR POLICY ..... 193
    Roşca Mihai Ioan ...................................................................................................... 193
ADOPTION OF E-BANKING IN ROMANIA: AN EXPLORATORY STUDY ......... 194
    Roşu Anca Maria....................................................................................................... 194
BUSINESS INCUBATORS AND SUSTAINABLE INNOVATION ........................... 194
    Schebesch Klaus Bruno ............................................................................................. 194
THE FORTIFIED CHURCHES FROM TRANSYLVANIA - HOW WELL ARE THEY
KNOWN BY THE ROMANIAN CITIZENS? .............................................................. 195
    Serb Silvana Valentina .............................................................................................. 195
THE SAVING AND INVESTING CONSUMER BEHAVIOR ANALYSES ON THE
ROMANIAN FINANCIAL MARKET. ......................................................................... 195
    Tănase (Roşca) Laura Daniela ................................................................................. 195
THE IMPACT OF THE 21st CENTURY FOOD MARKETING ON ........................... 196
CHILDREN‟S BEHAVIOUR ........................................................................................ 196
    Tarcza Teodora Mihaela, Olar Ana - Elena ............................................................. 196
THE ROLE AND IMPLICATIONS OF THE EVENT BASED COMMUNICATION IN
THE ELECTORAL CAMPAIGN .................................................................................. 197
    Tatu Cristian Ionut, Pastiea Mihai, Ion Andrei ........................................................ 197


                                                          23
  A MARKETING VIEW OVER THE ROLE OF THE PUBLIC AUTHORITIES IN THE
  PROTECTION OF THE CONSUMERS‟ PRIVATE SPACE ....................................... 197
    Vegheş Calin, Acatrinei Carmen, Dugulan Diana, Palade Marius .......................... 197
  CAN MARKETING SUPPORT THE IMPLEMENTATION OF EFFECTIVE
  EGOVERNMENT? ANALYSIS OF THE SINGLE POINT OF ACCESS PORTAL FOR
  ROMANIAN ELECTRONIC PUBLIC SERVICES...................................................... 198
    Velicu Bogdan Călin ................................................................................................. 198
SUB-SECTION: ECONOMIC INFORMATICS .......................................................... 199
  MODEL DRIVEN DEVELOPMENT OF ONLINE BANKING SYSTEMS ............... 199
     Avornicului Mihai-Constantin, Bresfelean Vasile Paul ............................................ 199
  TOOLS USED IN DECISION MAKING ...................................................................... 199
     Demian Horia, Perez Bernabeu Elena, Abrudan Maria Madela.............................. 199
  MODELS AND SOLUTIONS FOR THE IMPLEMENTATION OF DISTRIBUTED
  SYSTEMS ...................................................................................................................... 199
     Ghencea Adrian, Vătuiu Teodora, Țarcă Naiana ..................................................... 199
  IT&C AND THE PERSONAL DEVELOPMENT ........................................................ 200
     Mareş Marius Daniel, Mareş Valerica ..................................................................... 200
  RESPONSIBILITY FOR ETHICS IN IT&C ................................................................. 201
     Mareş Valerica, Mareş Marius Daniel ..................................................................... 201
  THE USE OF EXPERT SYSTEMS IN RURAL TOURISM IN MARAMURES ........ 201
     Moisuc Diana-Aderina, Simion Simona-Alina, Şteliac Nela .................................... 201
  THE USE OF COMPUTER APPLICATIONS IN THE STUDY OF ROMANIA‟S
  PUBLIC DEBT ............................................................................................................... 202
     Vătuiu Teodora, Popeangă Vasile Nicolae, Popeangă Vasile, Țarcă Naiana ......... 202




                                                             24
        SECTION: INTERNATIONAL BUSINESS AND EUROPEAN
                        INTEGRATION
                 SUB-SECTION: INTERNATIONAL BUSINESSES

           EUROPE AND ITS GREEN FUTURE. ELECTRIFICATION AND
                           DECARBONIZATION

         CONTINUING INTERNATIONAL TRADE LIBERALIZATION IN THE
                              FINANCIAL CRISIS CONTEXT
Berinde Mihai
This research paper is based on an assessment of the effects of the recent financial crisis on
the international trade and the way states and international organizations acted in this context.
The importance of this research topic consists in identifying the way the international trade
liberalization process has been affected by the financial crisis and the way anti-crisis measures
deviated from the basic rules agreed under the aegis of WTO/GATT.
The intended purpose of the paper is to conduct a substantive assessment of undertaken
actions by the various states aimed to mitigate crisis impact on anti-dumping investigations
and measures. Precisely, it was assayed whether the international financial crisis has been an
opportunity for WTO member states to plainly intervene in the economy and give up the
commitments they made in the context of multilateral commercial negotiations. Considering
the international, regional and national effects of the crisis the topic has been copiously
elaborated on by economics literature. A number of anti-crisis measures were presented
encouraging massive intervention in the economy, as well as actions, particularly of
International Organizations according to which measures could be taken without deviating
from globally agreed mechanisms and principles. In order to be able to find out which of these
two options prevailed in actions undertaken by the states the types of international, regional or
national anti-crisis measures were selected. Positions voiced by the World Trade
Organization, United Nations Conference on Trade and Development (UNCTAD), European
Union are rendered.
To answer the question about the way it has been responded in order to mitigate crisis effects,
adopted anti-crisis measures were inventoried and their deviation from international rules was
assessed.
One of the indicators used in the assessment of anti-crisis measures is the progress of the anti-
dumping investigations and measures notified to WTO in the past 9 years for which data were
available (2003-2009). The relevance of this period lies in the fact that it includes 5 pre-crisis
years and 2 years when it was strongly evident.
It was found that the number of anti-crisis investigations and measures has not seen significant
increases during the crisis period. Moreover, it has been found that states have shown a certain
amount of flexibility in construing application of certain international principles rather than
relinquishing them.
It is thereby demonstrated that the international trade liberalization process continues without
major disruptions by the financial crisis. This gives confidence to states and business
environment with respect to predictability of international trade developments.
The paper has significant added value brought about by both literature processing and
interpretation and the author‟s experience in international trade negotiations. The very election
of the indicator pertaining to anti-dumping investigations and measures was based on the fact

                                               25
that changing trade defence mechanisms into protectionist mechanisms often stands for
prevailing immediate crisis resolution.

Keywords: financial crisis, antidumping investigations and measures, trade liberalization,
state aid, preferential trade systems
JEL Classification codes: F13, F15

      PREDICTABLE TRENDS OF EU TARIFF POLICY IN GLOBALIZATION’S
                                           CONTEXT
Caba Ştefan, Căuş Vasile-Aurel
This paper consists of information regarding current situation of international trade relations,
in particular those pertaining to EU, concerning to preferential trade agreements, the trend
towards globalization and custom policies. The importance of this document is given by the
identification of strategy trends in respect to EU tariff policy in the context of changes at
commercial exchange level, as a consequence of international trade globalization‟s trend. The
tariff policy, as a component of the trade one, represents a factor which influences companies‟
behavior and, consequently the structure of import-export interstates relations. Specialty
literature has lately identified a less natural phenomenon: starting with adoption by WTO
states members of some measures and principles that emphasize the trade globalization
tendency, a significant number of preferential agreements were settled in the meanwhile,
many of them being bilateral, fact at least at first view is opposite to globalization
phenomenon. The causes of this phenomenon have not been yet completely identified by
economic analysts, so that these preferential trade agreements can be translated as a an
impediment in the way of globalization and, on the contrary an intermediate phase and an
accelerator of global extension trade exchange phenomenon. The present work ideas are based
on analysis by bibliographic guide that link to historical GATT/WTO and principles which
sustain its operation and to dynamic of international trade. Also, there have been studied data
related to strategies of trade policy adopted by EU. The results consist of information about
tariff policy elements adopted or forecasted by EU in general strategic context of participation
to international trade. Particularly, it is emphasized the new competencies that must be
achieved by custom personnel because of changes in trade exchanges. The main idea is
represented by the necessity of custom authorities responsibility transfer toward new fields
which do not represent traditional activities.

Keywords: international trade, globalization, regionalization, tariff policies, trade policies
JEL Classification codes: F13, F15

THE RISKS OF A TOO QUICK EURO ADOPTION BY THE EU MEMBER STATES.
                       THE CASE OF PORTUGAL
Cristian Ştefan Ovidiu

In this article we present the risks faced by the new countries that have joined the European
Union, and which also desire to adopt the euro currency as quickly as possible. We will
analyze the existing literature regarding the ways these risks manifest themselves, depending
on the economic conditions present in these countries. The risks are mostly caused by an
incomplete fulfillment of the optimum currency area conditions, especially the ones regarding
the synchronization of the business cycles, the existence of mitigation mechanisms in the case
of asymmetric shocks, and to a lesser extent, the insufficient flexibility of the European labor
markets. In addition, because there are different economic conditions between the countries
                                               26
that plan on introducing the euro currency and the ones that already had, mostly related to a
lower economic development and lower prices, there are specific risks that affect the former
countries. Moreover, the benefits of entering the EMU – greater monetary stability, reduced
transaction costs, lower exchange rate volatility and a decrease of the interest rates – can in
some specific cases become also costs. In order to quantify all these elements, we have
constructed a case study of Portugal, which has entered the EMU in the first wave. We have
determined that Portugal‟s experience after the euro introduction was a negative one, when
compared with the previous period, because the convergence process did not actually
happened, as expected. Not only that, but the economic differences between Portugal and the
other EMU countries deepened, and the country‟s fiscal situation also deteriorated badly in all
these years, up to the point where Portugal was forced to ask for external help. The case of
Portugal is very important for the countries that are eager to adopt the common currency
without first achieving a sustainable economic development, through increasing labor
productivity and exports. It shows that fulfilling the nominal criteria and entering EMU must
not be a declared goal, but just the last measure implemented after reducing the economic
disparities and reaching a balanced economic development. Based on the existing realities
from the Central and Eastern European states, different scenarios can be constructed that will
take into account the way these risks influence the future economic environment, should these
states were to decide accelerating the common currency adoption process.

Keywords: euro, risk, Portugal, adoption, EMU
JEL Classification codes: E52, E63, E65

             THE SOVEREIGN DEBT CHALLANGE: AN OVERVIEW
Deceanu Liviu - Daniel, Mihuţ Ioana, Pop Stanca

Recent years have seen profound changes in country risk and its components, in the context of
crises multiplication and diversification; the sovereign risk, a main country risk component,
has undergone important changes, mainly given by mutations in its determining factors; the
economy of "indebtedness" represents a reality of the recent years.
In this context, our paper aims to capture new issues related to sovereign risk and its
manifestations, and to bring to the fore a number of relevant indicators concerning the
indebtedness problems. Currently, the increasing sovereign obligations, the Greece 2010
episode and the real sovereign debt crisis testify the important implications that the national
economic policy decisions have on entire nations. In general, the countries with servicing
difficulties present a total external or public debt that overcomes the average of the emerging
states; however, we can not accurately identify a threshold beyond which we can say that a
state is overly indebted. Therefore, questions such as “Starting from what point is a state
overly indebted?” or “What is the cause of the excessive debts of a state?” are fully justified
and the answer or answers deserve being sought.
Studies on the relationship between various economic variables and the countries ability to
deal with external debt problems are present in the country risk literature since the 1970s;
beginning with authors such as Frank and Cline (1971), which gave priority to external debt
service indicators such as Exports, Imports / GDP, Imports / Reserves, and continuing with
other specialists, among whom we mention Saini and Bates (1978), Abassi and Tafler (1982),
Haque, Brewer and Rivoli (1990), North (2001) Bouchet (2003), Meunier (2005), Longueville
(2010) and many others, many ratios and indicators were carefully analyzed.
In our short study, we also present a number of recent aspects concerning sovereign risk, and
we analyze some relevant indicators, using statistical data, for four countries: Romania,
Greece, Hungary and Bulgaria. We underline the fact that, even if sovereign risk indicators
                                                 27
are in the good intervals, the crisis risk remains present, especially because of the liquidity
issues. For us, this brief paper opens the way for a much broader study, which aims to develop
a model of sovereign risk analysis, the dependent variable, the probability of default, being
explained by the evolution of the selected relevant indicators.

Keywords: sovereign risk, external debt, sovereign crisis, external debt indicators, thresholds.
JEL Classification codes: F3 (F31, F34)

SHORT REVIEW ON EUROPEAN TURISM IN 2010 THROUGH THE INFLUENCE
                           OF THE FINANCIAL CRISIS
Marinoiu Ana - Maria, Viciu (Caragin) Andreea Raluca

The aim of the present research paper is to present a short review on the European turism in
2010 through the influence of the financial crisis. The importance of the paper resides in the
presentation of the impact that the economic downturn had on the European tourism, taking a
closer look also in the investment in hotel industry in 2010. The paper’s objectives took
into consideration the current situation and by proposing the rural tourism as an alternative we
offer a solution in order to minimise its effects on this specific activity sector. The subject has
not been extensively debated in the specialized literature even though it represents a current
issue both regarding the private business environment as well as the main national and
international bodies that regulate the tourism industry. The research metodology consists in a
SWOT analysis through which we prove the rural and ecotourism to be a viable solution in
order to minimise the downturn of the industry for countries in CEE. The added value of the
paper consists in the analysis of o subject that is too little taken into consideration and of big
importance for the companies acting in this specific domain.

Keywords: european tourism, financial crisis, rural tourism, ecotourism
JEL Classification codes: L83, M16, R19, Q01

THE IMPACT OF THE CRISIS ON THE QUALITY OF LIFE AND SOLUTIONS TO
           REDUCE THE CRISIS EFFECTS. CASE STUDY: ROMANIA
Meşter Liana, Bugnar Nicoleta, Fora Andreea

The economic crisis creates a series of consequences such as loss of jobs, reducing wages,
insecurity of the population, reducing standard of living, material hardships, low self-
confidence and hope for the better, illnesses, altered human relationships, social protests, ever
greater scale strikes, in other words, deterioration of the economic environment.
This paper aims to identify possible solutions to improve the effects of the crisis on the quality
of life, based on figures from surveys conducted by research firms and the possible
correlations to be made between these dates, without attempting to consider that these
solutions are unique or the best. The main indicators considered for identifying the negative
aspects of the crisis among the population are: the evolution of unemployment, changes in
gross domestic product or wage developments in the economy and the share of expenditure
linked to the basic needs out of the income earned. Regarding the possible solutions to reduce
the population crisis, they are closely related to the credit and monetary policy, and also to the
budgetary policy.
Under the impact of the economic crisis, the business environment in Romania has suffered.
Sub impactul crizei economice, mediul de afaceri din Romania a avut de suferit. Since most
investments in 2008 were of foreign origin, the fact that this crisis has affected Romania as
                                                28
well did not surprise anyone. Nowadays Romania's business climate is characterized by lack
of direct foreign investments and self funding sources whereas the population declares itself in
a large proportion –more than 50% - to be affected by the crisis (1).
Effects of the crisis can also be observed in the evolution of consumers‟ behavior who fearing
layoffs and declining revenue, not only turned to buying the same products or to purchase
cheaper products, but also to reducing the amount of the purchased products.
The quality of social life is essential and strongly related to stimulating economic activity.
Satisfaction felt by the consumer will determine the level of consumption and will influence
and ultimately decide the supply level. An adequate economic policy in Romania to restore
the balance between supply and demand in the market may induce a state of economic
recovery. This should be the objective of anti-crisis policies.

Keywords: crisis, quality of life, unemployment rate, gross domestic product, wages rate,
social conditions of life, economic environment
JEL Classification codes: F41, F41, J17

 COMMON AGRICULTURAL POLICY FROM HEALTH CHECK DECISIONS TO
                        THE POST-2013 REFORM
Niculescu Oana Marilena

The paper proposed for being presented belongs to the field research “International Affairs
and European Integration”. The paper entitled “Common Agricultural Policy from Health
Check decisions to the post-2013 reform” aims to analyze the Common Agricultural Policy
(CAP) from the Health Check adoption in November 2008 to a new reform post-2013. The
objectives of the paper are the presentation of the Health Check with its advantages and
disadvantages as well as the analysis of the opportunity of a new European policy and its
reforming having in view that the analysis of Health Check condition was considered a
compromise.
The paper is related to the internal and international research consisting in several books,
studies, documents that analyze the particularities of the most debated, controversial and
reformed EU policy. A personal study is represented by the first report within the PhD paper
called “The reform of CAP and its implications for Romania‟s agriculture”(coordinator prof.
Gheorghe Hurduzeu PhD, Academy of Economic Studies Bucharest, Faculty of International
Business, research studies in the period 2009-2012).
The research methodology used consists in collecting and analysis data from national and
international publications, their validation, followed by a dissemination of the results in order
to express a personal opinion regarding CAP and its reform. The results of the research consist
in proving the opportunity of a new reform due to the fact that Health Check belongs already
to the past. The paper belongs to the field research mentioned, in the attempt to prove the
opportunity of building a new EU agricultural policy.
The challenges CAP is facing are: food safety, environmental and climate changes, territorial
balance as well as new challenges-improving sustainable management of natural resources,
maintaining competitiveness in the context of globalization growth, strengthening EU
cohesion in rural areas, increasing the support of CAP for member states, farmers and active
farmers-, sign in outlining the CAP contribution to the “EU 2020 Strategy”.
This paper aims to prove that the future CAP should become a more sustainable, balanced,
better focused, simpler and more efficient, more responsible to the needs and expectations of
EU citizens.


                                               29
Keywords: Common Agricultural Policy, reform, rural development, Health Check, EU 2020
Strategy
JEL Classification codes: Q18, O13, F59

SOME ASPECTS CONCERNING THE DIPLOMATIC PROTECTION OFFERED BY
  THE EUROPEAN UNION FOR THE CITIZENS IN THE PRESENT ECONOMIC
                                   SITUATION
Timofte Claudia Simona, Mirişan Ligia Valentina

Based on the particular meaning that is specific to European citizenship and that is involved in
the practice of citizenship, it causes modern concepts of citizenship which are derived from
the universal norms of citizenship.
It‟s important to underline that the European citizenship is a concept which does not replace
the National citizenship, but it is a new modern concept which has a real connection with the
national citizenship and why not connected with the Romanian citizenship.
From this point of view, emphasize in this paper that the diplomatic and consular authorities
from member states of the Union have to guarantee the protection of the European citizens in
third countries in which their state is not represented.
The cooperation of the diplomatic representatives is an important point for the Foreign Politic
of the European Union.

Keywords: citizenship, European citizenship, diplomatic/consular protection, European
Union
JEL Classification codes: K33

         FOREIGN DIRECT INVESTMENTS DURING FINANCIAL CRISES
Vintilă Denisia Mariana

The fundamental idea of International capital flows is that short-term flows can be easily
reversed, while flows on a longer time horizon are more stable. Crises are associated with
withdrawals of short-term capital flows and growth of the foreign direct investment flows.
The current crisis has meant a major decline of international capital flows, also of the foreign
direct investment. The analysis in this article tries to establish if and under which conditions
foreign direct investments can bring greater stability during the crisis, comparing the
evolution of foreign direct investments in the current crisis with their response in previous
crises. We show that during previous crises foreign direct investments were stable, behaving
differently from other types of capital. Yet, during the current crisis, foreign direct
investments have proven to be not so stable and all the components declined, raising questions
about the resumption of the positive trend. The stability of foreign direct investments in the
past was given by the increase of mergers and acquisitions during the crisis, reflecting fire-
sale FDI. This feature is not found in the current crisis as mergers and acquisitions were
severe affected by the crises and recorded a major decline. The current paper is realized in the
doctoral program entitled “PhD in economics at the standards of European knowledge-
DoEsEc”, scientific coordinator Prof. PhD Rodica Zaharia, institution The Academy of
Economic Studies Bucharest, Faculty of International Business, period of research 2009-2012.

Keywords: foreign direct investment, financial crisis, fire-sale FDI, international capital
flows, Asian crisis
JEL Classification codes: F30, F32, G21
                                              30
   SUB-SECTION: EU SUSTAINABLE ECONOMIC DEVELOPMENT AND
                       COMPETITIVENESS

 LOCAL ACTION GROUPS - THE EUROPEAN INTEGRATION CATALYST FOR
                          THE ROMANIAN RURAL AREA
Ailenei Dorel, Mosora Liviu - Cosmin

Romania has the highest share of European Union rural areas (44.9% in 2009), which
generates and maintains a long series of regional disparities. Because of these disparities, the
economy faces a number of elements that undermine the quality of human and social capital
and reduces the potential for growth: precarious social and economic infrastructure, reduced
access to markets and thus to goods, a low level of both economic cohesion and living
standards, and a difficult access to education and training (leading to the underutilization of
labor in rural areas, while major shortages in the labor market and increased migration
phenomenon manifests).
In these circumstances the European Union LEADER initiative is an important chance for the
development and tightening of the rural - urban continuum in Romania. A fundamental
element of this initiative are the local action groups. These local action groups are conceived
rather as an ad hoc framework for exchanging ideas, for debate on matters of local interest, on
initiatives to boost economic activities. Thus, these local partnership structures can be self-
organized by very real problems and directions: to promote a brand of product made in a
certain area, the image of a tourist attraction, of traditional occupations, crafts of products, etc.
In this paper, the authors aim to highlight the difficulties of European integration for rural
areas in the new Member States, considering that the LEADER initiative would be a good
opportunity to accelerate this process. To emphasize this, a review of the progress in
implementing the LAGs program in Central and Eastern Europe was undertake. Also, we
identified the success factors of this program based on the experience of the European Union
developed countries. Finally, we provide arguments in favor of local action groups as the
solution to the rural problem of Romania.

Keywords: local action groups, regional disparities, regional development policies
JEL Classification codes: O18, R11, R58

Benea Ciprian Beniamin, Baciu Adrian

This paper aims to present a great challenge which humanity faces, and which is climate
change. Together with food and water shortages which will hit more and more humanity in the
years ahead, climate change (which will only amplify these negative facts) will bring negative
consequences on economy and society, and in international relations area, too. In this context,
the importance of the subject speaks for itself. The research is focused on EU objectives in
climate area and in sustainable development, indicating that renewable energy could be a
solution for energy independence, and for reducing CO2 concentration level, too.
The subject is very important one nowadays being subject of intense debates and negotiations,
having a high degree of visibility in international forums and in international press.
The paper wants to show what EU aims in the future related to its development through fossil
fuels consumption reduction and as a base for starting research are researched realized under
the aegis of Group Futuribles from Paris, of the National Centre for Sustainable Development
from Bucharest, from American Academy of Arts and Science, and International Energy
Agency from Paris.
                                                 31
We take from IEA data and present them in the tables in order to have a synthetic view upon
energy in EU countries, and of course, there are presented trends in energy consumption in
renewable at European level. The development of the subject with the involvements in
transport area only brings a fresh air in the debates regarding reducing energy vulnerability
together with fighting climate changes.
There are presented some peculiarities of CO2 pollution and their implications, and
consequences; and of course, solutions for fighting climate change is part of this presentation.
Reducing oil consumption and expanding renewable resources (wind, solar, and hydro) and
nuclear energy coupled with the electrification of the economy and transportation sectors, and
rising energy efficiency are of outmost importance in fighting climate change. Becoming
leader in this area, EU aims not only to promote sustainable development, but to influence in a
significant manner the future negotiations in climate area, gaining through this strategy a
better position on the world scene.
The added value of our endeavor is in the superposed areas of EU energy independence,
freeing transportation sector from the place of being hostage to potential oil crisis in the
future, and all of these in the context of fighting climate change. The paper presents how
energy independence could be obtained through renewable expansion, while fighting climate
change, too.

Keywords: climate change, de-carbonization, electrification, transportation, energy efficiency
JEL Classification codes: O0, O3, Q4, Q5

                 ROMANIA’S ANSWER TO THE NEW DIRECTIONS
     OF THE REGIONAL DEVELOPMENT POLICY OF EUROPEAN UNION
Berinde Mihai, Chirilă Lavinia Florentina

The regional development policy of European Union deals with spatial localisation of
production and affects the daily life of more than half of the 500 million persons living in the
European Union. Conceived at European level as a solidarity policy, it bases especially on
financial solidarity through the distribution of a part of the European budget obtained through
the contribution of Member States to the less prosper social categories and regions. Regional
development policy of European Union for the programming period 2007- 2013 is based on
the diversity, opportunities and challenges offered by the regions in Europe. It puts into
practice the solidarity between European nations and focuses on a fundamental objective:
strengthening the economic, social and territorial cohesion through diminishing the
development discrepancies between its regions. The present paper identifies the new
directions of the European regional development policy and aims to highlight the importance
of this policy for the economic growth and development of Romania. In this difficult period,
when Romania felt the effects of the crisis at high level and met a severe economic
congestion, the European sources of financing through the regional development policy must
not be neglected. We also formulate recommendations in order to increase Romania`s
structural funds absorption rate.

Keywords: regional development policy,             European   Union,    Romania,    sustainable
development, absorption rate
JEL Classification codes: R10, R11, R58



                                              32
 INTERNATIONAL BIOMASS TRADE AND SUSTAINABLE DEVELOPMENT: AN
                               OVERVIEW
Chiriac Cătălin, Rusu Nicoleta

It is crystal clear that the neoclassical economical theory, despite being probably the best
growth model ever invented by man, tickled a cost of environmental degradation which can
threaten our wealth and even our existence. For this reason, the concept of sustainable
development (SD) is so empathic, being considered probably the best theoretical alternative
invented by man to standard growth, because of its vision of a better world, where economics,
society and environment are intimately linked. Thus, all human activities have to adapt to this
new paradigm, in order to achieve its goals. From the economical perspective, production,
consumption and trade must incorporate a kind of sustainable type of activity. In the recent
years, growing demands in energy use and the increase of oil and coal prices, have led to the
usage of new energy sources such as biomass, water, solar, wind and geothermal energy. This
is why we propose in this paper to present an overview of international trade in biomass
reported to the philosophy of SD. In short, we want to give an answer at two questions: how
much is biomass trade sustainable and what risks may arise if the main source of energy used
today, based on fossil fuels, will be totally substitute by biomass? To be sustainable, biomass,
must meet certain criteria, such as: to possess a high capacity for regeneration, in a relatively
short time; to offer a better efficiency compared with the traditional fossil fuel sources; to be
less or non-polluting, to be used in solid, liquid and gaseous form; to have a broad
applicability in production and consumption; to have a competitive level in terms of costs and
prices for transport or storage, in both stages, as a raw material or as a finished product; to be
a good substitute of traditional fuels (gasoline or diesel), without the necessity for structural
changes of the of the engine. The article will conclude that the uprising trend of the EU
biomass trade and consumption will continue, because of grown concerns of the EU Member
States regarding the effects that greenhouse gas emissions have over the environment and over
the quality of life standard, despite the critics which states that biomass production may have
negative environmental effects, leading to massive deforestation and destruction of soil, water
sources and natural habitat.

Keywords: sustainable development, international trade, environmental impact, biomass,
biofuels
JEL Classification codes: Q01, F18

      COMPARATIVE ANALISYS BETWEEN THE OBJECTIVE AND THE
       SUBJECTIVE QUALITY OF LIFE APPROACH – STRENGTHS AND
                                  WEAKNESSES
Constantinescu Mihaela, Daniel Moise

Quality of Life (QOL) can be defined as the degree in which the objective needs of an
individual are satisfied in relation with the subjective perspective of his well-being. Thus,
there are two different approaches in QOL evaluation: the objective approach (which analyzes
the quality of life through economic indicators) and the subjective approach (which evaluates
quality through the individual‟s opinion and actions). There isn‟t a widely accepted view
referring to the use of one of those two QOL approaches, each having a series of strengths and
weaknesses. This paper presents a comparative analysis of the advantages and disadvantages
brought by these two approaches in QOL studies. The objective analysis has a series of
strengths (among which we mention the fact that allows valide comparisons and the fact that
doesn‟t depend on individuals perception), but has also a series of weaknesses, starting with
                                              33
the dependence on statistical data, which in many cases has incomplete registrations,and
ending with the fact that doesn‟t reflect the real value of the well-being perceived by
population. The motives for which the QOL subjective approach is promoted, therefore its
strenghts, refer to the fact that it reflects important experiences for each individual and the
fact that it reveals how macroeconomic policies satify the individual‟s needs. Certainly, this
type of QOL analysis has also some weaknesses, like the lack of validity and accuracy in the
data collected through surveys. Considering all the above, there is a conclusion with a wide
aplication in the present context of the economy: we can‟t make a clear delineation between
the two QOL approaches, moreover we can state the fact that the is a strong correlation
between those two. Thus, the most precise systems of quality of life evaluation are those
which use both objective, and subjective indicators, reaching a high level of aggregation at the
national and international level.

Keywords: Quality of Life, Objective Approach, Subjective Approach, Strenghts, Weeknesses
JEL Classification codes: I31

SOCIAL AND ECONOMIC IMPACTS OF WIND POWER IN CORELATION WITH
                       THE FINANCIAL CRISES
Cucoş Alina Florentina

Given the present day and age we live in, it is vital that the world considers the various natural
resources available to us and how to best make use of them. Furthermore, it is imperative
nowadays to look at the many environmentally friendly energy sources which will reduce the
ill effects of global warming and provide a host of economic and social benefits too. One such
beneficial resource is wind and the consequent conversion of wind energy into electricity. In
fact, the advantages of wind energy are so immense that even the government has begun
promoting it. Since generating electricity from wind doesn‟t emit any green house gases or
produce any particulate emissions, it massively reduces the rate of global climate change, and
at the same time doesn‟t contaminate our water resources such as lakes and reservoirs.
Wind energy provides security and stability in the national consumer energy market. By
reducing a nation‟s dependency on foreign fossil fuels, such as coal and natural gas, spikes in
fossil fuel costs or other supply disruptions will not have as much of an adverse impact on the
national economy. Also the price of wind energy is relatively stable because there are no fuel
costs, which is a major operating expense for most coal and gas fired electric generation
facilities.       Although wind farms occupy large swaths of land, wind turbine towers
themselves take up less space, only a few meters at their base. This leaves space to utilize the
land around the turbine tower for several other purposes, such as ranching or agriculture. The
application of advanced technologies has succeeded in making the conversion of wind energy
much more resourceful and well-organized. Furthermore, wind is a proven clean, free and
renewable form of energy that preserves our natural resources. Wind energy conserves water
resources as wind farms virtually require no cooling, as opposed to natural gas, coal and
nuclear power plants that require a tremendous amount of water for cooling. In fact, electricity
generation is the leading contributor to water withdrawals from our nation‟s water reservoirs.
Since wind turbines come in an array of different sizes, they are a great resource to generate
energy in remote locations to support varying population levels.The use of wind energy
reduces Greenhouse Gas emissions, and increases security and stability by diversifying the
national electricity portfolio. Apart from environmental profits, there are many social and
economic advantages too in promoting wind energy. One of these is that the promotion of
wind energy assists in revitalizing rural economies, thereby creating jobs at the ground level,
such as assembly workers, surveyors, engineers, lawyers, bankers, technicians, to name just a
                                                34
few. In doing so, it also benefits local communities, mainly in the form of property tax
revenues and new types of income for landowners through land lease payments.

Keywords: wind energy, alternative source, ecological advantages
JEL Classification codes: P 28, Q 4, Q 27, Q 28

  MAIN THREATS TO THE ROMANIAN LABOUR MARKET IN THE CURRENT
                                   CONTEXT
Dimian Gina Cristina, Dimian Mihai

The paper‟s topic is focused on the Romanian labour market prospects, which is going to be
affected by two main threats: aging and population decline. These two factors are supposed to
dramatically change Romania‟s economic structure. It is therefore necessary to know how
they will evolve in the next decades, facts which represent the main objective of our article.
These topics are debated at large scale at the European and national level, because they
describe a process which implies European Union as a whole.
The methodology used in order to quantify this phenomenon includes statistical methods
(correlation analysis and descriptive statistics). We have used data available at national and
European level in order to build a proper argumentation.
The results obtained are worrying because there is a high risk to assist at an accelerated aging
of the Romanian people, doubled by a very low birth rate. This might create huge problems in
the economic and social system due to productivity decrease and the pressures on the
pension‟s funds.
The paper offers scientific arguments for developing macroeconomic policies in order to
prevent the negative situation in which we could be within less than 40 years. As a
comparison term we brought into attention the Germany situation, country which offers
economic equilibrium to the EU, but is also affected by aging.
The manner in which this problem has been approached is an original one because we tried to
put Romania‟s situation into the context of the European Union general situation, the threat
being emphasised by the fact that it is going to be a trend for the whole continent.
Actually, if it is not taken adequate measures, we will be confronted with a demographic
crisis, much worse than the current financial one, because the effort of the country to reverse a
birth rate decreasing trend with an aged population will take decades.

Keywords: aging, labour market, employment structure, sustainable development
JEL Classification codes: J11, J21, O16

CREATIVE POTENTIAL OF RESEARCH AND DEVELOPMENT - A COMPOSITE
                INDEX OF POTENTIAL SIENTIFIC CREATIVITY
Dinescu Maria - Cristina, Fabian Anne Marie

Both Lisbon Council in March 2000 and the one in Barcelona in 2002 represent major turning
points in science and research activities at European level. At that time there was a formal
recognition that science, technology and innovation, coupled with a quality education is the
key to development and long-term competitiveness of European space. Moreover, the decade
2000-2010 was declared as a dedicated to the investment in these sectors, and 2009 was
named Year of Creativity and Innovation at European level. In a study in the EU States and
candidate countries, whose results were published in 2010, it was noted however that, despite
the special attention given lately to these issues, index fund allocations for research and
                                               35
development budgets national level of 2007 is 0.67% on average in the EU (27 countries),
compared with Japan (0.68%), South Korea (0.80%) and especially the United States (1.03
%).
The purpose of this paper is to identify those factors that influence a nation's potential of
scientific creativity and to find a way to compare different countries in terms of such potential.
If until now many attempts were made to create an index of national or regional creativity, our
goal is to narrow the field of creativity to scientific research and to compare the performance /
potential of Romania compared to other European Union countries. Among the basic elements
which have a direct impact on the potential for innovative scientific development, one can
identify investment, human resources and current performance. Based on the above factors, a
composite index of scientific creativity potential was developed, which takes into account the
three main elements described above: human capital (human resources in science and
technology and researchers), financial capital (investment in research and development) and
scientific performance (Hirsch Index). Data for the first two were extracted from the Eurostat
database for comparisons to be made between countries, while the third one has been
estimated by specialized research teams based on data available on Essential Science
Indicators (ESI) of Web of Knowledge. The main limit is the level of accuracy in data
provided by each nation, and the extent to which such data were estimated, not final. The
main benefit is that of identifying the position one country compared to others, but also to find
the main factors that placed that country at one level or another in the overall classifications,
thus allowing for the development of action plans particularly focused on those elements.

Keywords: research and development,human reources, creative potential, investment in
research and development
JEL Classification codes: O15, O31, O32

       COMPARATIVE ANALISYS BETWEEN THE OBJECTIVE AND THE
       SUBJECTIVE QUALITY OF LIFE APPROACH – STRENGTHS AND
                           WEAKNESSES
Felea Adrian Ioan

The main subject of this paper refers to an analysis of the recent trends and evolution of
Romanian competitiveness compared to the European Union competitiveness and it is
structured in four main parts. The first section of the paper regards an introduction of the
competitiveness evolution process, recalling the three actual evaluation models of the
competitiveness level. In the second part of the paper there can be found the competitiveness
indexes practiced and published by the World Economic Forum, indicators that are structured
on three main levels as following: the Global Competitiveness Index and its aggregate
indicators that are developed on three categories of factors that are essential for the
competitiveness process (Basic requirements, Efficienty Enhancers, Innovation and
sophistication factors) and the indexes associated to the twelve pillars of competitiveness:
Institutions, Infrastructure, Macroeconomic stability, Health and primary education, Higer
education and training, Goods market efficiency, Labor market efficiency, Financial market
sophistication Technological readiness, Market size, Business sophistication, Innovation.
Based on the values obtained after consulting the World Economic Forum Reports and
regarding the competitiveness from a global perspective, the third part of the paper presents a
comparative analyisis of the evolution of the Romanian competitiveness process and the one
of the EU25. In the last part of the paper there can be found the conclusions of this analysis,
with respect to the values found

                                               36
This paper is part of the doctoral thesis entitled "Increased Competitiveness in the Romanian
economy, in the context of Sustainable Development, coordinated by Professor Michael
Berinde University of Oradea, Faculty of Economics. Doctoral research is supported by
Human Resources Development Operational Programme 2007-2013, Contract
POSDRU/CPP107/DMI1.5/S/80272, "Doctoral programs to train researchers performing
competitive in European Research Area.

Keywords: competitiveness, indicators, analysis, differences, evolution
JEL Classification codes: O10, O11, O52, O57

       THE ROMANIAN EXTERNAL TRADE AND THE FOREIGN DIRECT
         INVESTMENTS INFLOWS AFTER 2007. A CRITICAL SURVEY.
Giurgiu Adriana

Focusing more on the evolution of the Romanian external trade and FDI inflows after 2007 –
the year of Romania‟s EU integration - the paper provides insights in the trade and FDI
inflows determinants in the context of the convergence process and also in relation to the
financial global crisis. As the statistic data envisage, Romanian exports and imports were high
over the period 2000-2010, and there were also large FDI inflows in the economy, mostly
until 2008. Although the data appear to be encouraging, it seems that Romania did not
succeed to maximize the benefits which should result from such a situation. Moreover, the
situation after 2008 shows that Romania is in a deep recession accelerated and maintained by
uninspired government policy measures with a strong negative impact on the Romanian
economy.
The aim of this paper is to empirically investigate Romanian export and import demand
functions after the year 2007, and to compare them with those of the period 2000-2006, using
quarterly data, in correlation with the FDI inflows.
The main contribution of the paper is that it is an empirical analysis on Romania‟s FDI and
external trade, providing the impact of the main determinants of export and import of
Romania, by using the Engle-Granger two step method. Following Allard (2009) rather than
just providing the elasticity, this method combines the elasticity with the evolution of the
explanatory variables to quantify their impact during the analysed period. The analysis aim to
cover all possible factors underlying the external sector performance of Romania and thus,
they are complemented with country specific analysis. The empirical analysis will therefore
provide some interesting insights not only in the context of the convergence process of the
country with the Eurozone but also in relation to the exchange rate regime.
The theoretical framework relies on the “imperfect substitutes” model (Goldstein and Khan;
1985), and it is used in the paper to estimate the demand functions of the Romanian exports.
Furthermore, the effect of the FDI on export performance is also investigated.
The conclusion which came out was, on one side that the export growth in Romania since
2007 is mainly due to strong FDI inflows since 2000, while the real exchange rate
appreciation seems to not have significant impact on export developments of the country. On
the other side, the significant imports growth was due to strong reduction in productivity and
in the gross capital formation rate, which combined with the lack of domestic capital, have
largely affected the private sector, and mainly the manufacturing one, on which the Romanian
economy should rely on, mainly due to its competitiveness.

Key words: external trade, FDI inflows, exports, imports, Romania’s economy
JEL Codes: F14, F15, F21,F43

                                              37
   IS THERE ANY CORRELATION BETWEEN THE CHRONIC BALANCE OF
   TRADE DEFICIT AND THE ROMANIA'S INCREASING EXTERNAL DEBT?
Giurgiu Adriana

According to the data provided by the Romanian National Institute of Statistics and Eurostat,
the balance-of-payments current account registered a permanent and increasing deficit since
1990, while the domestic production was accelerated decreasing and the FDI inflows were far
from being enough to cover the internal consumption needs. These being the facts, the present
paper aims to underline the fact there is a direct correlation between the increasing external
debt of Romania in the last years, and the balance of trade increasing deficit, which is due
mainly to the lack of domestic capital, as well as to the decreasing productivity. The research
methodology is based on a theoretical model of external debt sustainability, using time series
data for Romania and using a multi-equation model.
The results show that the relationship between external debt and the balance of trade deficit
should be analysed with a simultaneous equation model, because there is a two-way
relationship between debt service and deficit growth: the higher the imports, the higher the
external debt, and as a consequence, the higher the balance of trade deficit, if the productivity
is low. This result is consistent with the Romanian experience, and its implications are very
large and will multiply over the years, if there will be no adequate policies meant to revival
the private sector, mainly the SMEs.
In this respect, the paper concludes that the Romanian government should immediately take
the necessary measures to facilitate the easy access to capital for the private investors, which
will further stimulate the internal production, with a direct impact onto the increase of exports,
which will determine on the one hand, the reduction of the balance of trade deficit and
simultaneous, the increasing of the necessary budgetary revenues to pay back the external
debt. Otherwise, all costs will be supported by the next generations, with no return, if the
probability for declaring “default” will be successfully surpass in the short run.

Key words: Romanian external trade, balance of trade, current account deficit, external debt
JEL Codes: F14, F15, F21, F32, F36

EVALUATION OF THE COMPETITIVENESS OF THE REPUBLIC OF MOLDOVA
              VIS-A-VIS THE WESTERN BALKAN STATES
Gutu Corneliu

The present paper studied the issues of increasing the competitiveness of specific countries
within the context of the European integration. Competitiveness is a broad concept embracing
a diverse range of factors, macroeconomic and political inputs, meaning the ability of a
nation‟s citizens to achieve a high and rising standard of living. In recent years, national
competitiveness and favorable business environment are broadly associated with the economic
development. Being competitive is particularly vital for small open economies, since they are
relatively more dependent on international trade and foreign direct investment on their road to
increasing living standards. Therefore, there are an increasing number of attempts to measure
the country‟s competitiveness both on the national level and globally.
For instance, over 2001–2010, Republic of Moldova enjoyed an outstanding economic growth
(the country‟s annual growth rate averaged at 5,1%, unemployment rate dropped significantly,
income surged, governmental and private finance it improved), nevertheless, the ability to
attract foreign investments remained modest: this was shown by one of the lowest indicators
of foreign direct investment (FDI) per capita in the regional context. However, the global
competitiveness ranking results are often modest with economic trends.
                                               38
Evaluation competitiveness of the Republic of Moldova in the global competitiveness report
issued by the World Economic Forum (WEF) varied notably over the period: in 2007
Republic of Moldova was ranked 97th, in 2010 it improved by 3 positions, respectively, while
individual pillars of competitiveness its slumped. As a national partner of the WEF, we
conducted a comprehensive study in order to determine the competitiveness level of the
Republic of Moldova using the WEF method and the Global Competitiveness Index
calculation in regional context.
The objective of the present research, therefore, was to reveal the factors behind the
discrepancies in evaluating a country‟s competitiveness. Furthermore, the paper provides a
comparative assessment of competitiveness components in Republic of Moldova vis-à-vis The
Western Balkan states who signed Stabilization and Association Agreements with the EU.
The paper aims evaluation impact of business environment for overall competitiveness.
Creating a favorable business environment it necessary to stimulate the local companies to
increase productivity and thus improve their competitiveness on international markets.
Considering the fact that foreign investors takes risks in crisis conditions, it is necessary to
take emergency measures directed at promoting the investment attractiveness of Republic of
Moldova. Foreign Investors who decide to invest during the next years should receive
maximum privileges

Keywords: competitiveness, European integration competitive advantages, competitive
disadvantages, the pillars of competitiveness, foreign direct investment
JEL Classification codes: F40, F41, F42, F47

 FINANCING INSTRUMENTS USED IN THE CENTRE DEVELOPMENT REGION
Hada Teodor, Creţu Simion

The paper presents the main financing instruments (projects) used in the Centre Region,
approaching aspects regarding the Centre Development Region, such as its features in terms
of the geographical profile of employment. In regard to the involvement of the population to
the economic life, statistics show relatively low values of the overall activity and employment
rates recorded primarily in the rural area. If we consider only the population included in the
age group 15 to 64, the active population represent 62.2% of total, and the employment rate is
56.3% of the total active population, both declining in the last 15-20 years. At regional level,
in order to implement the regional development policy in accordance with Law no. 315/2004
on regional development in Romania, two institutions are functioning: Regional Development
Board and “Centru” Regional Development Agency. The paper also presents the use
dynamics of funds in the Centre Region. Starting with 2007, “Centru” Regional Development
Agency has become an intermediary body within ROP 2007-2013 with the role of promoting
and managing the funds allocated to this region. In regard to the stage of implementation of
ROP in the Centre Region, starting with February 25th, 2011, all 12 key areas of intervention
of the programme were launched and a number of 1.053 projects were submitted in the Centre
Region for a total amount of 1.033,99 million euro, the paper showing a diagram of the
submitted projects. There is also a diagram of the amounts requested for funding the projects
submitted until February 25th, 2011 at the Centru RDA and the available financing budgets on
priority axes. Until February 25th, 2011, a number of 174 projects were contracted under ROP
for a total value of 1.549.430.419,97 lei. In the end, we review the main indicators of the
contracted projects. They belong to rural development, transport infrastructure, social
infrastructure, regional and local business environment, tourism development and promotion.
Keywords: Centre Region, labour force, project, indicators, structural funds
JEL Classification codes: R1, R58
                                                39
                    ROMANIAN INVESTMENT POLICY ANALYSIS
Hațegan Anca

Starting with the year 2009, the European Union, as well as the rest of the world, was affected
by the economic and financial crisis, and one of the effects reflected in the decrease of foreign
direct investment (FDI) projects and also in the reduction of their host locations. Creating a
healthy economic environment, that should be efficient for any form of international
investment, represents the nowadays challenge of all market economies. This paper
concentrates on analyzing our country‟s attractiveness from the international investor‟s point
of view, it also focuses on the Romanian investment policy, its investment climate, as well as
on identifying or valuating the strengths and opportunities offered by Romania. The
advantages of the foreign direct investments are universally recognized and they basically
include the expansion of the production capacity and income, job creation, technologically
diffusion and economic development. Creating an appropriate economic environment, that is
efficient for any form of international investments represents the nowadays challenge of all
market economies. OECD member states experience, for example, outlines the advantages of
a functional legal and normative climate, based on the principles of transparency and non
discrimination, that are essential for attracting foreign investments. In the actual competition
for attracting FDI, every state tries to offer as many incentives to the future foreign investors.
The Romanian investment policy sets out incentives in a non-discriminatory and transparent
way offering the investors the specific criteria. The Romanian business environment has
improved significantly in recent years, driven in particular by EU accession. Major progress
has been recorded in areas such as the fiscal environment, rule of law, the fight against
corruption and property registration. When considering our country a possible location for the
development of their businesses, the foreign investors are driven by the advantages offered for
encouraging the FDI attraction, and so, they closely analize the following aspects and
advantages: geographic and market related advantages, the Romanian resources (natural,
material, human resources), economic, politic and social drivers and also international status,
regarding the diplomatic bilateral agreements.

Keywords: Foreign direct investment (FDI), investment policy, incentives, attracting FDI,
economic development, economic growth, investment climate
JEL Classification codes: F21, F23, F55

                NEEDS OF LOCAL SUSTAINABLE DEVELOPMENT
Ioniţă Predescu Lorena, Radu Florin, Tăbîrcă Alina Iuliana

In terms of structure of local authorities, we made an analysis of how the principle of
sustainable development applies by highlighting the fact that it differs locally in structure and
content from the overall development which shall be addressed at national level. Locally, we
have identified disruptions that may adversely affect the implementation of sustainable
development policies. It is about the existence of undue restrictions in allocating funds from
the state budget. In most cases these restrictions have a political tint. Specifically, we stressed
the requirements of sustainable development in Romania, consisting mainly of a responsible
financial management and human resources management, towards meeting the needs of local
people.
Keywords: sustainable local development, local administration, public policy, public services
JEL Classification codes: Q50, H76, H83, M41
                                                40
  CONTEMPORARY TENDENCIES AND ASYMMETRIES IN THE E.U. UNEVEN
        ECONOMIC GROWTH AND GLOBAL GROWTH DIFFERENCES
Ioviţu Mariana

Being in the phase of searching for the best socio-economic recipe, Europe is facing two
tendencies: economic revival and global growth differences. Both processes require
subsequent management at a local, national and European level in order to reduce the socio-
economic risks.
Facts, arrangements and decisions with European consequences are unreeling, currently,
heavy and slow due to the lack of cohesion between the European and the national interest.
Economic politics form a European level, on currently relevant economic crisis, have an
impact on social changes exacerbated by the resources crisis and the environment‟s critical
state.
The economic crisis‟s domino outcome overshadows the Europe‟s social and economic future,
and will suffer. Currently, the conflict between national and community interest (trade and
financial protectionism) generates tensions between European countries, creating
“asymmetries regarding economic relaunch”.
Economic performance implications on the social ones are the basis for “operating trilemma”
of the European economy. Balancing the budget, reducing the economic inequalities, the
increase in the employment level, initially formulated in the Lisbon treaty, remain, further on,
in actuality regarding the relaunching the European economy.

Keywords: globalization, economic growth, financial protectionism, unequal development,
economic relaunch
JEL Classification codes: O0, F0

 INNOVATION VERSUS INCOME CONVERGENCE IN CENTRAL AND EASTERN
                       EUROPE. IS THERE A CORRELATION?
Jude Cristina, Pop Silaghi Monica

The heterogeneity of response of the different economies facing the world economic crisis has
brought into attention once again the issue of convergence inside the European Union. The
high growth rates experienced by CEEC during the last decade created an optimistic view of
rapid convergence towards Western Europe. But the crisis showed that the sources of
economic growth in the region were not appropriate for a long run growth. Innovation is a key
source of competitiveness and a contributor to a sustainable growth path. Even though CEEC
lag behind other European countries in terms of R&D investment, a certain progress can be
observed. The objective of the present paper is to establish if there is a correlation between the
convergence in terms of GDP and the convergence in terms of innovation for the CEEC.
Based on yearly Eurostat data for the period 1998-2008, we quantify the progress of each of
the 10 CEEC both in closing the income gap and the innovation gap. We then rank the
countries according to their speed of convergence and perform a Spearman rank correlation
analysis. The results show that, on average, convergence in R&D is not correlated with
convergence in GDP. The Czech Republic is the only country with a positive correlation
between R&D intensity and GDP growth. Bulgaria, Hungary and Slovakia show a negative
relationship between investment in R&D and economic growth. This implies that for most of
the countries in Central and Eastern Europe, economic growth during the period 1998-2008
was mostly driven by non-innovation factors.
                                               41
Keywords: convergence, growth, innovation, R&D
JEL Classification codes: F43, O33, O47

     REGULATORY BENCHMARKING IN CENTRAL EUROPE: CURRENT
   PRACTICE AND POSSIBILITIES OF DEVELOPMENT FOR THE ENERGY
                             SECTOR
Machek Ondrej

Benchmarking is a technique of performance evaluation in which comparisons are made to
benchmarks that represent external performance standards. In the field of regulation of public
utilities, benchmarking can be used as an element of performance-based regulation or as a
pure regulatory method, called yardstick competition. In the absence of competition,
benchmarking can be used to simulate competitive pressures by comparing a regulated firm‟s
performance against an efficient standard.
The aim of this paper is to examine the Central European regulatory benchmarking practices
in the energy sector, namely the electricity and natural gas distribution industries, and to
analyse the possibilities of further development of regulatory benchmarking in this region.
The countries onto which we focus are Czech Republic, Slovakia, Hungary, Poland, Germany,
Austria and Switzerland. In the region of Central Europe there are still significant differences
between countries, especially in terms of experiences in modern regulation, regulatory
methods and practices, level of economic development etc. Differences are considerable
especially between Western countries (Germany, Austria and Switzerland) and the countries
of former Eastern Bloc (Czech Republic, Slovakia, Hungary and Poland). As a result, the
degree of the use of regulatory benchmarking is also very diverse within this region.
In the first part of the paper, we develop basic theoretic concepts of economic regulation.
Then we describe the most frequently used regulatory methods – cost-of-service regulation,
incentive regulation and yardstick competition – and we deal with common regulatory
benchmarking techniques, describe their principles and main challenges. Subsequenty, we
provide an overview of regulatory methods and benchmarking practices for each country in
the region of interest. In the final part of the paper, we analyse the challenges and possibilities
for further development of regulatory benchmarking in the Central Europe.
We have found that except for Switzerland, all Central European regulatory regimes are based
on some form of incentive regulation. The most sophisticated methods of benchmarking are
used in Germany and Austria. In these countries, benchmarking is used in both electricity and
natural gas industries. The Polish regulator is using a benchmarking method in cost efficiency
analysis in electricity distribution. In Hungary, a specific method of benchmarking is used. In
Switzerland, no benchmarking is used at present. In Czech Republic and Slovakia, some
principles of benchmarking are adopted, but not directly to the revenue requirements setting.
We summarize that the possibilities for development of regulatory benchmarking in the
Central Europe could be extended by reducing market concentration, unbundling large
vertically integrated companies, establishing a closer cooperation with the privat and closer
harmonization of regulatory frameworks.

Keywords: regulatory benchmarking, public utilities benchmarking, Central European
utilites, public utilites regulation, regulatory framework
JEL Classification codes: L43, L51, L9




                                                42
    THE NEED FOR PUBLIC DEBT MANAGEMENT IN THE CONTEXT OF
      SUSTAINABLE DEVELOPMENT WITHIN THE EUROPEAN UNION
Marcu Nicu, Meghișan Mădălina Georgeta

Public debt is created when the necessary resources for the socio-economic development of a
state are greater than the opportunities that exist at that time. The destination of the necessary
resources acquired from foreign markets can be either consumption by raising the standard of
living (on short term) or investments in order to reduce the discrepancies in relation to the
European Union through investments in infrastructure, jobs, human and technical capital
development.
The scientific research aims to clarify several key objectives, namely: the theoretical concept
and its belonging in the governance politics; the dynamics of public debt in Romania and the
identification of specific features of the indebtedness decision, the influence of the current
global economic crisis on the Romanian economy, the analysis of Romania's public debt
sustainability integrated in the European structures, and proposals for action in order to return
as soon as possible to a positive economic dynamics with direct impact on people's standard
of living.
The theme of this research is contemporary in the context of the financial and economical
global crisis and the difficulties in overcoming this period. The need to coordination the fiscal
and budgetary policies in Romania, the awareness that the accumulation of a large public debt
presents a threat to future generations, the increase of the tax pressure over a market that
trends towards globalization and the impact that the aging of the population will have on the
public finances sparked public controversy, both in the academic environment and in the
media. To continuously borrow resources and maintain a stable level for them requires a
sustainable public debt, an important objective of any state‟s tax policy. A sustainable public
debt is the result of the market and of the fiscal and budgetary policy decisions.
Although the sustainability of public finances and implicitly of public debt has been an issue
extensively debated for over a century, they currently remain vague concepts. Although,
intuitively, it is natural to consider that a fiscal policy is sustainable if it avoids financial
collapse, there is no generally accepted definition in terms of sustainable public debt,
respectively a sustainable level of public debt. The methodology of this research is stressed by
the large number of statistical data on public debt dynamics used in the analysis, relevant in
this regard are the national and international databases: the National Bank of Romania,
Ministry of Public Finances, World Bank, Euro stat, the statistical database of the European
Commission, the database of the International Monetary Fund, the Organization for Economic
Cooperation and Development, the normative documents consulted in order to ensure the
terminological accuracy of the concepts, the numerous theoretical and empirical studies of
Romanian and foreign specialists, the views and arguments of scientific researchers with high
experience in the field.
The personal contribution to the researched field is present throughout this work. Thus, I
aimed to clarify some theoretical aspects of the issues addressed, of some concepts and
economic notions to elucidate the studied phenomenon by using a large number of statistical
data in order to analyses the dynamics of public debt in Romania, in comparison with other
former communist countries and to formulate proposals for a long-term sustained recovery
and a sustainable economic growth.

Keywords: public debt, budget deficit, external financing, public debt management, degree of
indebtedness, public debt service
JEL Codes: H63 - Debt, Debt Management, Sovereign Debt

                                               43
       INTEGRATION OF SEMI-SUBSISTENCE AGRICULTURAL FARMS
Maţoschi (Cîmpan) Oana, Păun Georgeta, Păun (Ciobanu) Mihaela, Pruteanu Elena
Mihaela

Intensive agriculture, industrial type, contributed to environmental degradation and pollution.
Thus, on the one hand, makes intensive use of chemicals has led to neglect of duty to maintain
the natural fertility of the soil organic matter through proper fattening. On the other hand,
organizing specialized industrial environments, high animal breeders, considered the only
marketable livestock production, neglecting the production of manure, thus representing a
break with the brutal nature of biological circuits
Following the experience accumulated over two centuries, mankind has drawn valuable
education obligation to safeguard the habitat of nature as a collaborator. In this respect, the
main task of our times is to develop appropriate technologies humanist ideal, so that man can
become a being as fully integrated into the social and cosmic environment.
In the present period as a peasant household current form, is typical of developing countries. It
is generated by the result of families who received income from farming and increase farm
animalelor.Gospodăria organizational structure is the basic economic and agricultural
economy.
On the basis of the idea that organic production is the main cause of degradation of the
biological quality of products is inadequate human intervention at various structural levels of
the biosphere, and the most severe effects on humans resulting from the cumulation of errors
relating to soil, plants and animals. Organic farming places emphasis on quality natural
products, the quantity and productivity issues as a peripheral level.
A balanced rural development policy for the future is not an option but a necessity, especially
considering the fact that the issue of agriculture and rural development has important national
connotations and is a very complex and timely in Romania
Regional development is a concept that aims at stimulating and diversifying economic
activities, encouraging private sector investment, helping to reduce unemployment and
ultimately lead to improved living standards, according to the regions of the country's
development.

Keywords: Peasant household, sustainable development, farms, subsistence, european
agriculture
JEL Classification codes: Q0, Q1

    STUDY ON THE CAUSES OF REGIONAL ECONOMIC DISPARITIES IN
                             ROMANIA
Talmaciu Mihai, Borza Mioara

Successive enlargements of the European Union have led to increasing heterogeneity of the
development levels of the states and regions members. The Romanian development regions
are among the most poorly economically developed European regions and are regarded as
economies based on production factors where the development of economy is mainly
triggered by the poorly qualified labour and the natural resources.
This paper aims to analyse and to identify the factors lying at the bottom of regional
development and the causes of Romanian regional disparities, by comparative analyse and the
break down the basic development indicators into their components.
The regional economic disparities from Romania tend to be more prominent due following
causes: low level of development of most regions, structure of economy dominated by
economic sectors with a low productivity; the low research-innovation potential; the low share
                                               44
of the population having a higher education, reduced capacity of the poorly developed regions
to withhold the highly qualified labour, the weak development of infrastructure, particularly
poor quality of infrastructure networks.
Romania stays anchored in a development model characterized by an anachronous economic
structure, a poorly qualified labour, a slow accumulation of capital and a reduced
sustainability of the development rate.

Keywords: disparities, economic development, region, factors, convergence
JEL Classification codes: O11, O47, R11, R13

 THE IMPORTANCE OF IMPLEMENTING THE ICT NETWORK IN ACHIEVING
               KNOWLEDGE TRANSFER IN THE RURAL AREAS
Miron Andreea, Ciobanu Laura, Menda Teodora - Adriana, Maţoschi (Cîmpan) Oana

Currently in Romania, the information sources available to farmers are limited and belong
mostly to the public sector. The knowledge provided is relevant but insufficient in order to
meet the needs of the Romanian farmers, especially since they are not oriented towards the
market, as the main segment of interest. This paper has the intention to emphasize the need to
introduce ICT as the main tool in supporting the decision making process and in resolving the
specific issues faced by this sector In analyzing the current situation regarding this matter, in
order to propose ways to resolve the problems encountered in achieving knowledge transfer,
until now, were addressed issues such as: the evolution of the knowledge transfer concept,
development milestones and actions that marked the RDI sector as the main producer of
information, the main supporters of the farmers in their information actions (World Bank,
IFAD), means, procedures and techniques used for transmitting knowledge (extension;
consultancy). But what is most important is making all this resulted information available for
the farmers, fact which can only be accomplished, in our opinion, by introducing and
implementing ICT in the rural areas. The main method of research is the statistical data
analysis of the data regarding the components involved in the knowledge transfer process and
the current status of implementation of ICT in the rural areas. Among the expected results are
included identifying the main restrictive factors in achieving knowledge transfer in rural and
the main implications that implementing ICT would have on farmers' market position.
Introducing ICT in the rural area is, in our opinion the best way to transform information, as a
research result, into knowledge, becoming this way a real input for the farmer In practice, this
will lead to lower production costs, lower prices for inputs, increased revenues by increasing
the production‟s prices and, not least, increased level of the European funding resources
attracted for supporting investments.

Keywords: knowledge transfer, ICT, sustainable development, rural areas, knowledge society;
JEL Classification codes: Q01, Q16

 THE FINANCING OF THE ADMINISTRATIVE – TERRITORIAL UNITS IN THE
 WEST DEVELOPMENT REGION THROUGH THE REGIONAL OPERATIONAL
                       PROGRAMME 2007 - 2013
Munteanu Nicolae-Eugen

The research approaches the theoretical and empirical aspects regarding the way the
Romanian administrative-territorial units and development regions are organized and function,
with emphasis on the West Development Region. It also focuses on the way the local
                                               45
autonomy is exercised and the administrative-territorial units may cooperate in order to
perform common projects.
Furthermore, the financial resources of the Romanian administrative-territorial units are
analyzed, with focus on the non-reimbursable funds available during the period 2007 – 2013
through the Regional Operational Programme 2007 – 2013, resources which allow the
implementation of the European Union principles of cohesion policy.
The status analysis of the implementation of the projects submitted by the administrative-
territorial units from the West Development Region and financed through the Regional
Operational Programme 2007 – 2013 highlights which are the main areas of interest for the
authorities of the public local administration and gives practical solutions for the reduction of
the intra-regional development gaps.
This article is intended to be a guide for the administrative-territorial units in the systematic
mobilization of the existing local energies and resources by means of projects which should
meet the specific needs for development and which should involve the attraction of non-
returnable funds with a minimum effort of co-financing.

Keywords: administrative-territorial units, non-reimbursable funds, region, local autonomy,
projects
JEL Classification codes: F36, O18, O22, R58

     THE DANGER OF “PUTING ALL THE EGGS IN ONE BASKET” - SOME
          CONCERNS REGARDING ROMANIA’S EXTERNAL TRADE
Negrea Adrian

Trade patterns across the globe vary in certain ways. For the EU27, the analyzed data suggests
that approximately 70% of all Romania‟s imports, and the same amount of its exports, are
intra-community oriented. The question that arises is what will happen to te Romania‟s
external trade, if a crisis hits Europe? If countries like Germany, France, Italy, and United
Kingdom are hit the hardest in this hypothetical European crisis, Romania will soon follow
them. In order to decrease the impact of such possibility, it is necessary to tap new trade
opportunities. For this purpose, first we have to analyze the present situation. Based on
Eurostat, World Trade Organization, and the Romanian Statistics Institute data from 1999 to
2009, and on the works about trade creation (Balassa 1965, Jovanovic 2005, Molle 2006), the
paper wants to point out the aspects of trade concentration in certain regions after the
establishment of free trade agreements, and the danger posed by financial crises. This paper
analyzes first the situation in the EU27, scanning each member state in order to see the degree
of trade relations intra / extra – EU. The data will be than compared to another set of analyzes
of other four important regions, the Andean Community, ASEAN, MERCOSUR, and
NAFTA, whose free trade agreements could support such of comparison with the EU trade
relations. The paper follows the assumption that EU27 has the most integrated trade relations
among all the analyzed regions. Based on this assumption and on statistical data that points
out the percentage change of total imports and exports in the Romanian GDP, some
conclusions will be drown out in order to establish some necessary measures to prevent a
future crisis, measures that involve the political class, taping new trade opportunities such as
Latin American countries, Middle Eastern countries, and South-East Asia, but not forgetting
Russia, Romania‟s former main export partner, establishing clear objectives to future embassy
personnel, and a more aggressive advertising campaign in the selected target markets
conducted by national agencies.
Key words: free trade agreements, custom union, Romania’s trade relations, imports, exports.
JEL codes: F01, F10, F14, F15,
                                                46
SUSTENABLE DEVELOPMENT OF THE ROMANIAN ECONOMY BY ADOPTING
            THE CHINESE MODEL OF SPECIAL ECONOMIC ZONES
Negrea Adrian

The architecture of the Chinese economy began to take shape in the late 1980‟s, because of
the new reforms that the Chinese Communist Party started to take. With the death of Mao
Zedong in 1976, the Chinese leadership is taken by Deng Xiaoping, who stated a blitz course
in capitalism. The new president encouraged foreign direct investments by creating special
economic zones near the costal cities, were foreign companies obtained several tax brakes and
other incentives, only to invest in those regions. With the help of statistical data from WTO,
IMF, and the World Bank, the current paper analyzes the impact of these special economic
zones on the Chinese economy, raging from mutations in the labor market and economic
sectors structure and their evolution in the formation of the GDP, FDI inflows, and last but not
least external trade and current account situation. On the other hand, the paper tries to make a
connection with Romania, computing and predicting, based on the Chinese figures, the way in
which the Romanian economy, by creating four economic zones within the counties of Satu
Mare, Bihor, Arad, and Constanţa, will be able to experience the same growth. The first three
counties have been piked up based on their proximity to the Schengen area, and/or on their
infrastructure, plain terrain, and a qualified and skilled labour force. Constanţa, the only one
that resembles with its Chinese counterparts, has been considered because of its capabilities of
shipping products right away as they are manufactured. The results would decrease the
disparity that exists in revenue levels across Romania, Bucharest leading the group way ahead
of the other counties. Foreign direct investments in those areas will attract more others made
by the local authorities in the infrastructure (schools, universities, roads, airports, high speed
railways). This development will have a direct impact on the current account of the Romania‟s
balance sheet of payments, while its external trade deficit will reduce in time, even
transforming in a trade surplus, and helping this way in putting an end to the chronically
external debt.

Keywords: special economic zones, counties, external trade, economic impact, foreign direct
investment
JEL Classification codes: F21, F32, G18

 POVERTY AND LIVING. ROMA POOR NEIGHBORHOODS IN ROMANIA AND
                                   HUNGARY
Olah Gheorghe, Olah Şerban, Flora Gavril, Szekedy Levente

The first part of our paper is a theoretical debate of the most important research results
concerning the Roma population in Romania and Hungary, while in the second part we
proceed to the interpretation of our own empirical research data.
Methodologically, our research is based on sociological survey. Data concerning socio-
occupational characteristics of Roma communities have been collected by means of a
questionnaire based survey of active aged Roma population from Oradea and neighbouiring
rural localities in Romania and Hungary (Oşorhei, Ineu de Criş, Biharkeresztes, Told).
The paper concludes with policy reccommendations aimed at the members of the target group.

Keywords: Living, Roma, Poverty,Romania, Hungary
JEL Classification codes: R23
                                               47
  THE JOURNEY TO COMPETITIVENESS: EU SPEEDING UP ON THE ROAD
               PAVED WITH KNOWLEDGE AND INNOVATION
Oprescu Raluca

In the attempt to boost its international competitiveness, the European Union realized that it
should enrich the ways to achieve it by using the intangible assets that it holds. Knowledge
and intellectual capital, innovation, science and entrepreneurship are key drivers of economic
development and renewal. The traditional resources on which economies rely on are scarce,
while these ones are abundant and steady. Moreover, this type of assets can easily increase
their value through sharing and they trigger multiplicative effects in the economy. The paper
tackles these issues and makes an assessment of the degree of innovation in the EU. The study
aims to provide an answer to the question of whether EU‟s overall performance proves that it
is truly driven by knowledge and innovation or not. Using a qualitative method of research,
this paper identifies innovation patterns of the member states from a geographical perspective.
In order to provide a compelling analysis, the data ranges from indicators capturing science
and technology activities, firm innovation to the internationalization of research activities and
the tertiary-level graduates. The results show substantial discrepancies between the European
countries and reveal that knowledge flows scaled by the level of innovation are a localized
phenomenon, therefore some countries are more innovation-oriented and they reap the
benefits better.

Keywords: knowledge-based economy, competitiveness, innovation, R&D, technology
JEL Classification codes: O31, O32, M21, I25

   AGRICULTURE IN ROMANIA IN THE PROCESS OF INTEGRATION INTO
           EUROPEAN STRUCTURES DURING POST – ACCESSION
Păun Georgeta, Maţoschi Oana, Păun Mihaela Cristina

European Union and its Member States shall adjust some provisions of the development
strategies aimed at increasing food production in sustainable ways, protecting natural
resources and increase competitiveness of European agriculture on the world market.
Romania faces imbalances in market conditions is not rationally use land particularly
favorable to obtain a competitive agricultural supplies. Large annual variations in crop
conditions in which the yields per hectare and per animal is about half the EU15 average does
not provide the power necessary at affordable prices, especially for vulnerable population
groups.
Addressing structural and operational problems of the institutional system of agriculture in
Romania's European integration process is an important way of overcoming the situations to
which the elimination of disparities in economic development and social peace disturbed by
high and rising prices of food, produced in quantities increasing imports.
In the current international situation in which Romania difficulties in structural adjustment in
agriculture and reduction of disparities compared to EU Member States, a national policy of
granting real priorities for the sector is badly needed. These priorities cover both ways of
achieving the overall objectives which fall within the strategic guidelines of the European
Union and European integration meets the needs and solving specific national targets.
Keywords: European integration, rural development, agricultural policy, national objectives,
agricultural holdings.
JEL Classification codes: Q0, Q1
                                               48
  E-GOVERNMENT: A DRIVING FACTOR FOR STIMULATING INNOVATION
                       PERFORMANCE IN ROMANIA?
Preda Ana - Maria, Stanica Justina Lavinia, Crisan Daniela Alexandra, Coculescu
Cristina

The development of public services is one of the priorities on the agendas of all policies, both
national and European. One of the most recent concerns of the European Commission, as
shown in the 2010 Innobarometer, is to find ways and develop strategies to support the
innovation in the public administration sector, in the context of the continuously changing
economic background. In this paper, we„ll investigate the relationship between e-Government,
and the overall innovation performance at national level, for some European Union countries.
e-Government is already a known concept, widespread in the world, promoting the
implementation of information and communication technologies in the public administration,
in order to provide better public services to citizens and businesses. A main component of the
e-Government concept is the “counter reform”, aimed to streamlining administrative act
quickly in order to respond to the demands of citizens, businesses and government structures.
Innovation in e-Government will be measured with two Eurostat indicators – “e-Government
on-line availability” and “e-Government usage by individuals” – while for the overall
innovation performance we‟ll use a composite indicator – the Summary Innovation Index
(SII) – from the Innovation Union Scoreboard (IUS). In Romania, even if the values of these
indicators are not at the level of other EU countries, we can say that the situation has
improved and electronic public services are being used increasingly often. The study also
includes a comparison between two „modest innovators”: Romania and Bulgaria. Regarding
the overall innovation performance, according to the 2010 Innovation Union Scoreboard
ranking, Romania is the leader of the “modest innovators” countries, overcoming Latvia,
Bulgaria and Lithuania. However, in the field of e-Government our country has major
shortcomings. Romania has registered a significant progress in the years after the EU
integration, followed by a setback in 2009, still having values below those of other EU
countries, including Bulgaria.

Keywords: innovation, e-Government, public sector, SII, correlation
JEL Classification codes: O11

  UTILISATION OF BENCHMARKING TECHNIQUES FOR FUNDAMENTING
   DEVELOPMENT STRATEGIES IN THE MANUFACTURING INDUSTRY IN
                                   ROMANIA
Rujan Ovidiu, Ţarţavulea Ramona Iulia, Vasilescu Felician, Geambaşu Cristina Venera

Benchmarking is a method used to measure the products, services and processes in
comparison to an entity recognized as a leader in terms of performance of its operations. Used
in the years 1970-1980 in the strategic management of the company currently has proven to be
increasingly useful in many areas, including in international analysis models. In the European
Union benchmarking indicators are used especially in the digital economy and as perspective
indicators for 2011-2015 (Eurostat, Database).
In the introduction we present and define forms of benchmarking, as well as a number of
specific terms, which contribute to a better understanding of the content of this scientific
work. Time series are used to highlight advances in labor productivity in EU countries, and
the analysis is particularized for two countries: Romania and Germany. Quantitative data were
collected from the source Eurostat website.

                                              49
A comprehensive indicator at macroeconomic level is resource productivity, representing
GDP in relation with domestic consumption of material (DCM). DCM measures the amount
of materials used directly by an economy. It is presented in tabular form for all European
Union countries and Switzerland, as evolving over a period of eight years.
Benchmarking method is used to highlight some differences (gaps) between EU countries
regarding productivity and particularly the one between Germany and Romania is highlighted,
concerning the performance of manufacturing industries. It is expected that this gap will
diminish. The gap was highlighted by relevant graphics and interpretations.
The second part of the paper focuses on comparative analysis of factors productivity using the
production function. We analyze labor and capital productivity and other factors that
determine the level of production. For highlighting the contribution of the labour factor we
used the number of hours worked, considering that it reflects the analyzed phenomenon more
realistically. For highlighting the contribution of capital factor we used as an indicator the
capital stock in euros, available for Germany in the Eurostat database, and for Romania in the
Statistical Yearbook 2009, expressed in RON, as comparable prices and then converted into
euros at the average rate calculated by the NBR . The results for the entire manufacturing
industry represent the basis for further expansion of benchmarking to the main components of
this industry, especially automobile building, transportation vechicules, furniture, clothing,
leather chemical, etc.., providing a scientific basis to fundament the economic policies
including commercial ones.

Keywords: benchmarking, labour productivity, resource productivity, capital productivity,
sustainable development strategy
JEL Classification codes: F15, F31, L6

    FOREIGN DIRECT INVESTMENT AND INNOVATION: AN ANALYSIS OF
                       SPILLOVER CHANNELS
Sandu Steliana

Stimulating innovative behaviour has become a priority at EU level under the Lisbon 2010
and Europe 2020 Strategies, which considers innovation to be the engine of economic change.
There is a rich literature focused on role and effects of FDI on innovation, competitiveness
and economic growth. Among the generally recognised benefits deriving from the presence of
FDI in an economy the following could be mentioned: financing a savings gap or balance of
payments deficit, increasing exports and earning foreign currency, and increasing
employment. But these, although important effects of FDI, would not alone justify the
preferential policies FDI enjoys from a large number of governments. Therefore, it can be
generally assumed that FDI is accompanied by new technologies and knowledge, which has a
positive effect on the host economy. Technology diffusion from MNCs could contribute, but
not in any cases, to the enhancement of innovative performance of domestic firms. The
structural effects of FDI are present both within the industry, where they occur through
horizontal linkages (competition), as well as in other industries through vertical linkages
(backward and forward linkages). Especially for the case of structural effects, empirical
literature has indicated both opportunities and risks for the local economy, the final outcome
depending on the balance between benefits and costs. While these size effects of FDI may
well be vital in certain circumstances, they have no long-term effect on economic growth. A
large number of countries have adopted policies attracting foreign direct investment, based on
the general belief that the role of FDI goes beyond that of mere financing alternative for firms
and the economy. Positive external effects for the growth of the host economy are expected as
a consequence of technology transfer and efficiency spillovers. A good knowledge of the
                                               50
underlying mechanisms of these spillovers is indispensable for a sensible policy orientation.
FDI has an impact on innovation through demonstration effects and reverse engineering,
labour turnover, competition and inter-industry linkages. This paper endeavours an in-depth
look at the current research on transmission channels of the impact of FDI on innovation and
to identify new directions for scientific research and to discuss policy alternatives in the field
in Romania. The conclusion which could be drawn from the analysis of spillover channels of
FDI on innovation and the review of current empirical research related to this topic is that the
positive effects of FDI on innovation seem to be conditional. FDI and recipient country
heterogeneities determine whether the positive effects of FDI outweigh the costs. Therefore it
is important that policy measures regarding FDI are supported by empirical research studies.
Considering the fact that empirical literature regarding the impact of FDI on innovation
consists mostly of country studies, results cannot be easily generalised. To be more supportive
for policy- makers, research on this topic should be more integrated (the effects of FDI, R&D
and trade on innovation should be analysed in a common framework) and should focus more
on cross-country studies with a generous time horizon to ensure long-term effects are also
captured.

Keywords: foreign direct investment, spillover channels, innovation performance, technology
transfer, innovation policy.
JEL classification: F23, O31, O33. F21; F23; O14; O30

   EVALUATING THE EFFICIENCY OF LOCAL ECONOMIC DEVELOPMENT
                                      POLICIES
Săutiuţ Lavinia Sidonia, Sărac Ionuţ Pavel

This paper studies the way public authorities can fundament and evaluate the local economic
development policies they want to promote, according to their efficiency. After presenting the
relevant literature overview regarding the local economic development and its policies, we try
to underline the importance of evaluating and prioritizing the local development policies and
also to propose an efficiency-based model that we later use in building and evaluating local
development policies scenarios. The research methodology is both descriptive, while
presenting the theoretical framework, and empirical, while building scenarios and evaluating
local policies. The obtained results show us that the local policy we tested is efficient,
enabling new investments to bring bigger financial benefits than the cost needed to attract
them.

Keywords: local development, policies, measuring, efficiency
JEL Classification codes: O21, O22




                                               51
    SPATIAL MODELING IN LOGISTICS DECISION-MAKING PROCESSES.
      IDENTIFYING THE OPTIMAL LOCATION FOR A SINGLE CENTRAL
                                  WAREHOUSE
Ţarţavulea Ramona Iulia, Belu Mihaela Gabriela, Dieaconescu Vlad Constantin

In the context of the EU single market formation it was observed a trend of giving up local
deposits in favor of central regional warehouses. Another factor favoring centralization of
storage is the economic crisis that has forced the need for efficient activity by making
decisions on reducing costs. The first part of this paper focuses on literature review and
presentation of the most important decision-making models developed in the field of logistics.
Several models were selected and analyzed in detail to build a modern research methodology,
based on precise mathematical calculations.
In the decision making process of selecting an optimal location for a central warehouse, we
used a series of mathematical models to identify the exact geographical position, which
induces minimal cost for transportation to consumption points.
In the second part of the paper, the article aims to identify the optimal location for a central
warehouse in Romania.
In this methodology, we chose 100 cities in Romania, positioned throughout the country and
characterized as input by three sizes: latitude, longitude and population size. Latitude and
longitude were used for graphical representation of the space considered (Romania) by
individual points (cities), and the population was used as approximation of the demand for
generic products. We applied a mathematical model in order to calculate the gravitational
center using an excel spreadsheet. Each step in applying the model is explained in detail in the
paper. The results of the research indicate the optimal location (characterized by its latitude:
45.469408 N and longitude: 25.630817 E) for placing a central warehouse that can supply the
100 cities with minimal transportation costs. Were also calculated the distances between the
optimal location and the 100 cities and then identified 10 cities, the closest to our optimal
location (Sinaia, Sacele, Brasov, Campina, Campulung, Ploiesti, Fagaras, Pitesti, Mierucurea-
Ciuc, Odorheiu Secuiesc). Any of these cities can be chosen as location to build a central
warehouse in Romania, because they represent a relatively good approximation for the
gravitational center identified in the model applied.

Keywords: logistics, decision making process, optimal location, warehouse, spatial modeling
JEL Classification codes: C21, C23, R31

        THE ROLE OF THE PREVENTIVE MEDICINE IN SUSTAINABLE
  DEVELOPMENT. A STUDY CASE ON THE PRIVATE MEDICINE SECTOR IN
                                    ORADEA
Uniţa Lucian, Rahotă Daniela, Maghiar Teodor Traian, Straciuc Oreste

The concerns with respect to healthy life styles, preventive medical approaches, safe
environment, and early warning systems represents the Millennium Development Goals, the
United Nations Organization‟s so called Decade for “Education for Sustainable
Development“, the European Union‟s sustainability strategy, the Global Environmental
Outlook of the United Nations Environment Programme (UNEP) and the ten Principles of the
UN Global Compact, all aiming to attain the sustainable global health, which is possible only
through collective multilevel efforts for the sake of human wellbeing, equity, livelihood, and
worldwide sustainable development and stability.
Romania, as an EU Member States, have to take into consideration the fact that health is a
precondition for economic growth and sustainable development, and this way, it has to
                                               52
promote the EU common approaches to health policy. Between these approaches, the
prevention plays a key role when addressing to the global health challenges such as the
pandemics‟ control, and the rising tide of non-communicable diseases. For these purposes,
preventive strategies need to include promoting polices that foster a healthy environment,
healthy life styles and equitable access to health care and information, so, it is necessary to
meet the requests towards sustainable global health.
From this perspective, for the empirical research pursued in this paper, we have considered the
Global Challenge Index, which focuses on seven global challenges of the new millennium,
and on this basis, we have compared Romania with the other EU Member States. Then, we
have computed the index for Oradea and its neighbour region, including the framework of a
comprehensive analysis of political, economic and social target system.
The key issues we have considered in this context were referring to lifestyles, life care and
education for lifelong well-being, partnerships for health, institutions and related policy areas,
alternative intercultural preventative medical approaches, and the good governance, policy
relevance, and corporate social responsibility, and were analyzed mainly referring to the
potential of the Romanian private medicine sector in preventive medicine.
The conclusions of the paper reveal the fact that the region of Oradea is much above the
average index of Romania when it comes to preventive medicine, but still behind the other EU
Member States. So, the background for meeting the precondition for economic growth and
sustainable development in Oradea was created, but there are still a lots to be done on short
term, even because of the features of this area, which situates it at the top of the cancer
diseases registered cases in the country.

Key words: sustainable development, preventive medicine, Romanian health care system,
private medicine sector, Oradea – Bihor County
JEL Codes: H11, H51, I11, I15, I18

 THE PRODUCTION OF MEDICINES IN ROMANIA AFTER 1990. WHAT'S THE
                              REASON FOR IMPORTS?
Uniţa Lucian, Straciuc Oreste, Maghiar Teodor Traian, Uivaroşan Diana

Since 1990, Romania turned itself slowly but surely, from a large drugs producer, which has
used to supplydrugs to the whole former Council for Mutual Economic Assistance Member
States, and with a net positive trade balance in medicine sector, into a large drugs importer,
trying hardly to attract investors which could produce medicines not only for the Romanian
domestic market, but also for all other Eastern European markets, Ukraine, Russia and
Turkey.
This paper focuses on the empirical analisys of the medicines production sector in Romania
after 1990, aiming to emphasises the factors which have mostly affected this industry, in
correlation with different interests and reasons which determined the increasing imports of
drugs during the last years, by underlying at the same time, the role of the new public
authority in charge of supervising the distribution and import of medicines in Romania, The
National Medicines Administration (NMA).
The paper relevance relies in the fact that Romania registered during the last years drug
imports of an average of 1.7 billion euros, while the drug exports were only around 0,1
billions euros, according to the computations made on the data provided by the Romanian
Institute of National Statistics (INS). The most imported products are patent drugs, which are
more expensive than those produced by the domestic manufactured. At the same time,
Romania registered an increase of the pharmaceutical market of around 20% only since its EU
integration, this market proven to be largely driven by expensive products.
                                               53
Our research conducted to the conclusion that the Romanian resort authorities have to
immediately adopt measures meant to limit consumption of expensive drugs, on the one side,
and to reinforce the domestic manufacturers on the other side, even by attracting major
investors in this sector. We have also identified that there is a large competitiveness for
Romanian medicine products on the international market, due to its production costs
(Romania still is a low cost economy in this sector), as well as due to its tradition.

Key words: drug manufacture, medicine production, Romanian economy, FDI, exports and
imports
JEL Codes: F14, I12, L52, L65




                                            54
     SUB-SECTION: THE IMPACT OF FOREIGN LANGUAGES ON THE
                    BUSINESS ENVIRONMENT

        IS TRANSLATING E-COMMERCE WEBSITES AN EASY TASK?
Coancă Mariana, Museanu Elena

Teaching the terminology of various fields has been for a long time the privilege of the
translation shools. Specialized translation is subject to certain lexical constraints: collocations,
idioms and expressions specific to the respective field. A term gets a real meaning, only if it is
linked to other terms specific to the field, with whom it establishes logical connections.
Therefore, the translation of e-commerce sites can help customers to better understand the
description of products and their features. It is recommended that the translations be made by
a native speaker of the language that the online company wants the e-commerce website
converted.

Keywords: e-commerce, website, specialized translation, conceptual equivalence, translators.
JEL Classification codes: Z 19

DO WE REALLY NEED FOREIGN LANGUAGES IN THE ROMANIAN TOURISM?
  SOME CONSIDERATIONS ABOUT THE LEGITIMACY OF MULTILINGUAL
                        COMPETENCES
Constatin Felicia

At the confluence of philology and economy, foreign languages for business are a more and
more interesting domain for the European economic agents, aware of the value of multilingual
competences. Tourism is a priority domain of the economy, and within international tourism,
foreign languages are a priority. This paper offers an interpretation of the Master Plan for
National Tourism Development 2007-2026 from an applied linguistics point of view, aiming
to synthesize the role of the foreign languages in the national strategy for the promotion of
tourism. The extensive study developed by the Ministry of Regional Development and
Tourism, the beneficiary of a remarkable professional guidance, offers a realistic image of the
Romanian tourism at the time of Romania`s integration in the EU and it predicts its evolution
over a span of 20 years. The recommendations from the Business Forum for Multilingualism
and the ELAN study highlight the impact of foreign languages in business, the direct relation
between linguistic competence, performance, profit and development. The research
methodology consisted in identifying the accommodation units (hotels and guesthouses) in
Oradea, capital city of Bihor county, and Băile Felix, a famous resort situated at about 10 km
from Oradea - both of them are situated in the border region with Hungary - and in analyzing
their websites. Their on-line presentations are generally made in Romanian, but there is also a
concern for the multilingual presentation. This paper intends to sum up the linguistic scene of
these websites from the perspective of the orientation to international tourism. We have
observed that, despite their indisputable potential to make profit, foreign languages are almost
unanimously ignored by officials and by hotel and guesthouse owners alike. Although they are
in the private sector, therefore directly interested in the prosperity of their business, they do
not choose to apply a strategy of multilingual openness, even though they have personal
websites. The languages used are Romanian and English, followed by German, Italian and
French. We have tried to find some possible explanations of this phenomenon and to identify
solutions. The solutions open the university up to the private sector, with a view to establish a
                                                55
cooperation that would benefit the academic and economic development alike. This paper
signals the absence of a national linguistic policy in tourism, which has bad consequences on
the local tourism. In the context of internationalism and globalization, the multilingual
competences continue to hold a secondary place in international tourism, and this is a paradox.
These data will support the pro-multilingualism presentation within a doctoral study carried
out at the University of Reims, France, in collaboration with a research team interested in the
multilingual management of information, under the coordination of professors J. E. Tyvaert
and E. Castagne. The originality of the paper consists in the interpretation of the Master Plan
in relation to the linguistic competences and also in the connection between the Master Plan
and the linguistic scene of the local promotion of tourism. The data offer theoretical
conclusions, as well as practical solutions which can be applied to several foreign languages
and in various tourist regions.

Keywords: specialized languages,         international   tourism,   multilingualisme,   virtual
presentation, Bihor
JEL Classification codes: Y8

 ENGLISH LANGUAGE FOR SUCCESSFUL INTEGRATION: LEARNING FROM
                           THE BOLOGNA PROCESS
Hernandez - Carrion Jose Rodolfo

The Bologna Process aims to provide tools to connect the European national educational
systems. The purpose of this paper is to analyze what we have learned and what challenges
remain today. Since the beginning all participating countries had to agree on a comparable
three cycle degree system for undergraduates (Bachelor degrees or Grades) and graduates
(Master and PhD degrees) in order to create compatibility and comparability for achieving
international competitiveness and a worldwide degree of attractiveness in higher education.
The Bologna Declaration, originally signed by 29 countries, has now reached 47 countries,
engaged in the process of creating a European Higher Education Area (EHEA), searching to
be competitive to launch the European Academia of the 21st Century.
The European Credit Transfer and Accumulation System (ECTS) has turned out to be the
perfect tool to design, describe, and deliver programs and award higher education
qualifications. Markets and European universities are going to be able to compete overseas in
the future if the new regulations let them to create profitable business in the education area.
As expected, European Universities have responded promptly and actively to the call.
In the case of small countries like Spain, it is an opportunity to internationalize Spanish
universities; moreover, there is the opportunity for the expansion and consolidation of the
Spanish language as the second most important foreign language. The 2009 Report highlights
that early teaching of a foreign language is advancing in Europe. In lower secondary
education, earlier teaching of English is becoming widespread; and the three Nordic countries,
Germany, and the UK are the highest innovation performers. The result is a system of higher
education more competitive and more attractive for Europeans and non-Europeans students
and scholars. Reform is needed today if Europe wants to match the performance of the best
performing higher education systems in the world. The English language seems to be the
response in the search for a common European answer to solve common European problems.

Keywords: English, Bologna Process, European Higher Education Area, EHEA, Spanish
JEL Classification codes: I23: Higher Education and Research Institutions


                                              56
  BUSINESS BUZZWORDS: RIGHTSIZING, DOWNSIZING, RE-ENGINEERING,
                         DE-LAYERING
Pop Anamaria Mirabela

The paper attempts to analyse the rise and use of a new vocabulary (economic buzzwords)
related to staff dismissal in the new economy of the world. In this new economy, the
organizational boundaries between states and firms become unclear and a new vocabulary has
been conceived in order to express the changes the firms are undergoing. The new rhetoric
includes buzzwords like privatization, de-regulation, re-engineering, rightsizing, downsizing,
de-layering, quality service or global sourcing. The research is based on the conclusions of
bibliographical and direct research of the literature relevant in the field, trying to emphasise
the importance of strategic language when it comes to human resources management.
Concepts like freedom of speech, politically correct language or non-discriminatory language
are brought to attention and analysed focusing on their importance during periods of change
and uncertainty characterising the economic environment nowadays. Two trends are depicted
in the paper: the first is that of the supporters of political correctness who attempt to
homogenize the language and thought to enhance the self-esteem of minorities. One approach
to reaching this goal is to eliminate discriminatory or offensive words and phrases and the
substitutions of harmless vocabulary at the expense of economy, clarity, and logic. Another
approach is to deconstruct a word or phrase into its component parts, treat the component
parts as wholes, and focus on secondary meanings of the component parts. On the other hand,
reflecting upon the nature of large-scale organizational restructuring, there are the critics
arguing that this type of language is a euphemistic form of phraseology. The analysis starts
with the assumption that the economic lexis is not a rigid system of terms. Morphologically,
there is a high degree of variety in productive types of compounding which exceeds the
possibilities that exist in the common English vocabulary. In this view, four buzzwords
(rightsizing, downsizing, re-engineering, de-layering) have been chosen as representative for
this process and, also, due to the difficulty of translating them into Romanian. Also, the
etymology of these buzzwords is analysed and by this the paper attempts to find why
managers have adopted these as their favourite terms when discussing large-scale
organizational restructuring.

Keywords: buzzwords, rightsizing, downsizing, re-engineering, de-layering
JEL Classification codes: Y90

    VOICE PROBLEMS IN TRANSLATIONS OF ROMANIAN AND ENGLISH
                        ECONOMIC TEXTS
Sim Monica Ariana

The difficulties brought about by the passive constructions have been an issue to debate for
many linguists and scientist. Translations become ever more important in an increasingly
global marketplace, and they are sometimes taken too lightly, when in fact it is a serious
business that should be approached sensibly in order to avoid poor results.
Translation is a specialised branch of translation, which requires specific skills and also
methodology, theme as well as terminology competences.
Without being exhaustive the aim of our paper is to focus on the types of the passive
constructions specific to the scientific discourse, the economic one, in particular. It also
tackles the translation difficulties that may come along when dealing with scientific papers
and rendering texts from Romanian into English. Passive constructions are frequently used
both in English and Romanian. However, active forms are more common in literary writing or
                                               57
where the focus is on the people who make things happen. In contrast, passives are mainly
specific to texts where the focus is on events and processes, in things that happen.
The most common problem in writing economic texts is overusing the passive voice.
Specialists recommend or even require the passive voice in scientific, technical writing;
motivating that by using the passive voice in scientific writing it achieves an objective tone
whereas, sometimes it only obscure the text.
The scientific discourse and the economic one in particular, basically mean presenting ideas,
descriptions, definitions, classifications, instructions, etc. The speech is brief, the technical
person, and the scientist managing to say things which in ordinary language would require a
vast amount of talk. Therefore, speakers or writers use the passive constructions in the
scientific discourse for the following reasons: a) when there is no use of identifying the agent
of the action, being unimportant or obvious from the context; b) to avoid repetition of the
subject; c) to put emphasis on the action or the process; d) to convey objectivity; e) to avoid a
long active subject.

Keywords: translation, passive voice, Romanian language, English language, difficulties
JEL Classification codes: Y90




                                               58
              ECONOMICS AND BUSINESS ADMINISTRATION
                             SUB-SECTION: ECONOMICS

     AMERICAN AND ITALIAN PERSPECTIVES ON PUBLIC AND PRIVATE
                              EDUCATION CHOICES
Bucciarelli Edgardo, Odoardi Iacopo, Pagliari Carmen, Tateo Armando

This work is based on the analysis of the public and private support to education and human
capital development in two specific national contexts: the U.S. and Italy. Recent researches
have firmly demonstrated the value of higher levels of education for socio-economic
development, poverty reduction, higher incomes, employment and eliminating child labour,
gender equality. The increased competition and globalization of economic activity,
acceleration in technological and scientific knowledge, information revolution and more
recently the worldwide economic recession continue to raise the value of education and
training in preparing individuals for future employment, upgrading skills for greater
workplace mobility, and underpinning wealth creation and economic development through
human capital formation. The International Labour Organization (2010) has pointed out the
key role played by higher levels of education and skills training in employment and social
protection policies. In the Western world, the education industry is complex and diverse. It
combines a dominant public sector of schools and universities and community colleges which
educate the majority of students; a varied private sector mainly consists of nonprofit
organizations that encompass some of the world‟s most elite education and scientific
institutes. The importance of education for economic growth and development is well
documented from a historical and economic standpoints. In this research we examine some
evolving relationships between the marketplace, the state, and education institutions, knowing
that the context of these relations has evolved strikingly in recent years, which have seen three
major developments: a growing system differentiation, changing governance patterns, and a
diminished direct involvement of governments in the funding and provision of education.
Therefore, we are interested in understanding on one hand the possible evolution of the
studied phenomenon, and on the other if the experience of a leading country as the U.S. may
represent a useful starting point of imitation. So that, our analysis is focused on the
investigation, through a period of ten years, of students enrollment according to the
willingness to invest in education, independently of the resources needed. In particular, we use
the Box-Jenkins methodology to fit data by using an ARIMA model and in order to achieve
more information about the phenomenon. Our findings show a similar trend over time both for
public and private enrollments although backgrounds and rules are very different in the two
nations considered.

Keywords: human capital, public and private education, time series analysis.
JEL Classification codes: C23, E24, I25.




                                               59
 HUMAN CAPITAL AND DEVELOPMENT: SOME EVIDENCE FROM EASTERN
                                       EUROPE
Carlei Vittorio, Colantonio Emiliano, Marianacci Raffaella, Mattoscio Nicola

The concept of development is not only referred to the level or to the growth rate of GDP of a
country, but it concerns different aspects of individual life. Development leads to a changing
of values, behaviours and attitudes of people interested in it and in the well-being of the whole
society.
Since the second part of the last century, more and more economists always assert that human
capital is a fundamental asset to promote economic growth and development. Health and
education are the two principal ingredients of human capital. There is a strong positive
bidirectional relationship between education and health; in fact, it is statistically supported
that the two variables move together, so healthy people are more likely to achieve an higher
level of education rather than sick people and, vice-versa, more educated people are more
likely to enjoy good health status. This generates a virtuous cycle that can lead to greater
development. Indeed, health increases people‟s capabilities allowing achievement in their
well-beings, since healthy people can work longer and with higher productivity than poor
health people. For this reason individuals‟ income rises allowing them major choices in terms
of consumption, savings and investments. Considering the economic benefits that start from
health and education, not only at microeconomic level but also for a country, it is important to
pay attention to the role of this two variables in the economic development process. There are
several channels through which health and education can be associated with better
enhancement in economic results. They can be find in the labour market and in the
participation in the labour market; worker productivity; human capital investments; saving
capacity; availability of save to invest in physical and intellectual capital; fertility choices and
structure of population.
The present paper analyzes the two-way linkage between education and health and their
relationship with economic development identifying the conditions of some Eastern European
countries. The methodology through which the results are obtained is the multidimensional
scaling method which allows to define relations between countries in terms of
proximity/distance with respect to the considered indicators, providing a spatial representation
of them.

Keywords: human capital, education, health, economic development, multidimensional
scaling
JEL Classification codes: I15, O15, P46

     COMPETITIVENESS - GROWTH FACTOR. POINT OF VIEW ON THE
                          SITUATION IN ROMANIA
Cismaş Laura Mariana, Bucur Oana Nicoleta, Pitorac Ruxandra Ioana

This paper considers the issue of competitiveness of national economy, making specific
reference to the economic situation of Romania in the year 2010.
The diversity of views on approaches to competitiveness in the literature requires consultation
of reports prepared by prestigious international forums and organizations, using relevant
indicators and economic variables.

Keywords: Competitiveness, economic growth, productivity, economic environment, economic
efficiency.
JEL Classification codes: F43, O47
                                          60
  THE INTEGRATION OF YOUNG ECONOMISTS ON THE LABOUR MARKET.
     THE PROFESSION OPTION – A DECISION FOR CAREER AND FOR A
                                  LIFESTYLE
Dodescu Anca, Pop Cohuț Ioana, Borza Adriana

Knowing the importance of the integration process of graduates of higher economic studies on
a labour market that is becoming more and more demanding, as well as the fact that
professional objectives realistic defined represent an essential demand of performance, the
present paper aims to determine the relevance of personal decision capacities as a favouring
factor of a concrete career option for economist students.
Our research is based on information and statistical data obtained through applying tests and
questionnaires on economist students from licence and master studies form three universities:
University of Oradea, The West University of Timişoara and “Ştefan cel Mare” University of
Suceava, in the project called PRACTeam „The practice of economist students. Inter-regional
partnership on the labour market between universities and the business environment” Project
co-financed through the Social European Fund, Through the Operational Program Human
Resource Development 2007 – 2013 – „Invest in people!”.
In essence we leave from the premises that the professional option reflects a specific side of
individual‟s personality which does not choose only for a certain occupation but, implicitly for
a certain lifestyle. As a diagnosis approach we assume axiomatic the thesis according to which
the high level of congruence between the individual psychological availabilities and the
occupational environment raises the satisfaction chance and professional success.
The approach that we submit is an interdisciplinary one, as well as the research team formed
of two economists and a psychologist. Our study proposes to identify the correlation between
the individual decision ability of the subject and the compatibility between a specific interests
set of abilities identified on the basis of individual tests. Also, on the basis of processing the
results obtained of economist students at the personality tests, we will try to argument
explaining the option of some subjects for professions that demand individual qualities that
their personality does not imply at the level asked.

Key words: labour market, profession option, economist students, career
JEL Codes: J01, A11, M50, A20


EXPERIENCES AND TENDENCIES TO DECENTRALIZE THE CAPABILITIES OF
         THE ECONOMIC POLICY AT THE EUROPEAN UNION LEVEL
Dodescu Anca

Romania‟s integration in the European Union implies, apart the complex process of policy
transfer, the learning of new modes to make policies characteristic to a multi-level governance
and partnership culture. Of the different levels of governance of the European model, the
regional level (“regional governance”) most faithfully reflects, in our opinion, the complexity
of reconfiguring the role of state in economy, at the beginning of this new millennium, in the
European Union space and presents the highest practical importance for Romania, as a new
Member State of the European Union, for, at the regional level, the structures are more
flexible and the good practices are more rapidly assimilable. The selection of the best regional
growth and development economic policies, the choosing of the objectives out of a series of
competing options, the calibration in time and space of powers, roles, capabilities, and
responsibilities and the encouragement of the win-win solutions call upon the choice and
                                               61
combination of some appropriate and efficient instruments. Representative for the new
context, the regional growth and development policy must integrate, in Romania too, more
knowledge, more creativity, new combinations of capabilities and new fields of expertise.
This paper presents preliminary research results afferent to the post-doctoral research project:
“Growth and regional development economic policies. Challenges for Romania in the context
of economic-financial crisis and European model integration”, carried out in the project
"Economic scientific research, reliance of human welfare and development in European
context”, the Romanian Academy, “Costin C. Kiriţescu” National Institute for Economic
Research, project financed for the 2010-2013 period from the European Social Fund (EFS)
and implemented by the Romanian Academy, “Costin C. Kiriţescu” National Institute for
Economic Research, in the period of time 1 December 2010 – 30 November 2012,
coordinator: Professor Dr. Valeriu Ioan Franc.
The question we intend to answer, in the present phase of our research, based on the
comparative analysis of the decentralisation systems of several Member States of European
Union, respectively on the analysis of the regional disparities existing at the European Union
level and of the effects of the economic integration, is – to what extent the capabilities of the
regional policy should rather be concentrated in the hands of regional authorities or of the
European Union than to be left individually to the Member States which should conceive their
own regional policy?
What we intend in this paper, based on the analysis of some experiences to decentralize the
capabilities of economic policy at the European Union level, is to identify the regional
implications of the interconnection of decentralization, centralization, respectively supra-
nationalization tendencies and, implicitly, the analysis of the way to reconfigure the role of
state in economy at the regional level, in the context of integration in the European model.
The examination of the way to reconfigure the role of state in economy at regional level
requires the review of the allocative, distributive, and regulating roles of the state from a
regional perspective, the analysis, on one side, of the decentralization of economic policy
capabilities from the national level to the regional level (for example, national level: pure
public goods supply, for instance, national defence and the centralization of fiscal policy
capabilities in order to achieve macroeconomic stability and revenue redistribution; regional
level: mixed public goods supply, for instance, waste collection and community policy), on
the other hand, the centralization/decentralization of regional capabilities at the European
Union level.

Keywords: European integration, role of state in economy, decentralization, regional
governance, regional growth and development policy.
JEL Classification: F15, H4, H5, H7, R5


DYNAMICS ECONOMIC DISPARITIES IN NORTH-WEST REGION OF ROMANIA
Florea Adrian

Even though over the years has enjoyed wide media coverage, with highlighted aspects,
discrepancies and inequalities of economic potential between different regions of the world, or
even parts of the same countries always remained topical. Difficulties arising from these
differences were always felt, extremely painful by humans.
Analyzing distinctly, participation of each county to the GDP of the Northwest Region and the
composition of all indicators, we can identify significant discrepancies between counties,
regions and municipalities. This is one of the reasons that led us trying to identify the causes
that generated the current situation. From the perspective of the contribution of each county in
                                               62
the Northwest Region to Region's domestic product composition, the first place is taken by
Cluj county 32.3%, followed by Bihor with 24.3%, Maramures, with 14.9% Satu-Mare,
12.1%, Bistrita-Nasaud, 9.1% and 7.2% Salaj. Consulting of the Regional Operational
Programme 2007-2013 indicates that the poorest areas in the Northwest Region are in
Maramures and Bistrita-Nasaud.
An important part of the active population of North-West Region was employed in public
enterprises and an increase of unemployment in the counties of Salaj, Satu Mare and
Maramures became predictable, imminent amid restructuring of public enterprises with losses.
Studies of employed population by sectors of the economy, shows a high rate of population
employed in services in the counties of Cluj and Bihor and high employment in agriculture on
other four counties. In a modern market economy, services are most concentrated labors, and
how the workforce is distributed in the Northwest region also shows an imbalance.
How Northwest Region is participating in international economic cycle has major effects on
the population's living standards. Relevant for the inter-district disparities analysis is the
human and agents behavior analysis and the savings and loan relationships. How people
behave in these ratios in each county tells us much about their economic profile.
Attenuation of long distance gaps in the Northwest region remains a very complex problem,
attempts to decrease it, is bringing into question, not infrequently contradictory strategies.
Supporting the few remaining state-owned enterprises in the region could lead to a revival of
activity, attracting attention of foreign investors can thus lead to recovery of much of the labor
resources of the Region.
Expansion and modernization of transport and distribution networks would provide a further
chance to faster development of the North-West by exploiting the growing regional economic
resources available, enhancing economic relations both intra and extra regional.
But we can not fail to mention the part state should play in orchestrating these measures.
Despite the independence of regions, they are subordinated to the central administration, and
strategic investment policy depends to an overwhelming extent of it. Only by linking effective
measures at national, regional and local level will alleviate the sustainable economic gaps.

Keywords: disparities, restructuring, reforms, investments, consequences
JEL Classification codes: E01, E24, J11, R12, W24

 ANALYSIS OF ECONOMIC GAPS BETWEEN URBAN AND RURAL ROMANIAN
                               AREAS
Gidiu Valeria, Toader Valentin

In this paper the authors will perform a comparative analysis of the impact that the population
residential areas have on the economic and social activity from Romania. Our analysis will be
carried out for a time span of 10 years, between 2000 and 2009. The main purposes are to
emphasize the economic gaps between the residential areas (urban and rural) and to identify
the factors that determine these gaps.
The economic differences between rural and urban areas and their impact on the peoples‟
standard of living represent an important issue for international institutions like IFRC,
UNICEF or OECD. Also, this topic represents a frequent subject in the economic literature
from poor and developing countries. Studies conducted by Huong and Booth (2010), Alister,
Alana and Ayele (2007), Chao, Zhidong and Mingxing (2008), Mateoc-Sîrb, Mateoc, Darvași
and Mănescu (2008) or Sahn and Stifel (2002) are representative examples. Most of these
papers focus on the living standards differences generated by the differences between income
and expenditures between urban and rural areas.

                                               63
To achieve our goals, we will use the statistical methods to analyze the data released by the
National Institute of Statistics. We will try to find some correlations between the economic
indicators – household incomes, value and structure of household expenditures, structure of
household expenditures – the social indicators – residential area, education level, age and
occupation. The highlight of the gaps between the rural and urban areas will be the main
objective during this analysis.
We conclude that in Romania there are substantial differences between rural and urban areas.
The income differences are determining different consumption patterns between rural and
urban persons. In rural areas, the population is spending less in all goods and services aspect
that reduce their standard of living. Anyway, the results obtained are the subject of at least two
possible limits. The fact that the data series are too short may affect the results we have
obtained. Also, the economic gaps analyzed represent an average for the whole country, what
means that in some regions these differences may be even higher.

Keywords: economic gaps, households’ incomes, households’ expenditures, consumption,
social indicators
JEL Classification: E21, E24

        MODERN FACTORS THAT ENHANCE COMPANY’S FINANCIAL
                         PERFORMANCE
Gruian Claudiu-Marian

Company performance varies among economic sectors, countries and regions. It is influenced
by a very large number of factors. This study aims at identifying and analyzing the
determinants that must be considered by company’s management presently in order to face
competition and achieve superior financial performance. The research methodology used is
specific for the theoretic nature of the article and includes literature review, comparative
analysis and synthesis. Results validate and argue as relevant modern factors that influence
the performance of contemporary companies: organizational culture, corporate social
responsibility, innovation, knowledge spillovers. Study limits refer to the fact that these four
factors are not entirely responsible for modern business performance and future research
should be done to develop an integrative point of view on overall performance determinants.
This paper is a dissemination of the results obtained by the author in the doctoral program
“The financial performance of EU member states’ companies”, coordinator: Professor
Carmen Corduneanu, PhD, carried out within West University of Timişoara, Romania, in the
period October 2010- July 2012
.
Keywords: financial performance, organizational culture, innovation, corporate social
responsibility, knowledge spillovers

JEL code: D20, D23, L20, L25

       THE FINANCIAL PERFORMANCE OF EUROPEAN COMPANIES: A
                        COMPARATIVE APPROACH
Gruian Claudiu - Marian

The present study empirically examines the financial performance of European companies and
tries to identify the profitability differences that exist between: enterprises with same profile,
economic sectors and between several countries from the European Union. Based on data of
                                               64
the year 2009, the newest available on the BACH-ESD database, three financial performance
main indicators are being calculated, namely: Return on Assets, Return on Equity and Net
Margin. Results are discussed and compared with the ones obtained in former similar studies
and some conclusions are drawn. The most performing sectors are found to be mining,
quarrying, professional, scientific and technical activities, utilities and IT&C. The sectors that
perform the worst are transport and storage, agriculture, accommodation and food service. As
shown in other studies the most profitable and competitive companies in the sample belong to
the Nederland, Belgium and Austria and the least profitable ones are situated in Italy and
Portugal. As a complementary useful result of the study, the average values obtained for the
three variables, in the various sectors considered, can be utilized for future comparisons, for
assessing the financial performance of companies that belong to same sectors as those
surveyed.
This paper is a dissemination of the results obtained by the author in the doctoral program.
The financial performance of EU member states companies, coordinator: Professor Carmen
Corduneanu, PhD, carried out within West University of Timişoara, Romania, in the period
October 2010- July 2012.

Keywords: financial performance, return on assets, return on equity, net margin, BACH-ESD
database
JEL Classification codes: L20, L25

A POSSIBLE MODEL FOR ANALYSING THE PRACTICAL NEEDS OF STUDENTS
                IN ECONOMICS-PRACTEAM MODEL

Hatos Roxana

Data presented in this paper are part of the activities of the PRACTeam project “Practice of
students in economics. Inter-regional partnership between universities and the labor market"
project co-financed by European Social Fund Operational Programme Human Resources
Development 2007-2013 -" Invest in people! "Contract no. POSDRU/90/2.1/S/64150.
Identifying the needs of practice activity had as research tools to focus group and
questionnaires. Research subjects were third-year students who have completed the practical
work of the three partner sites: Oradea, Timisoara and Suceava. The results obtained in this
research were the basis for discussions during the workshop PRACTeam between student
representatives, tutors and practice coordinators. Based on the central elements and
highlighted problems were developed materials for both tutors and students.
The specific objectives of identifying needs for practical training were: to determine
administrative and organizational elements deemed most appropriate for students in terms of
practical training, identifying methods of communication between all stakeholders (students,
coordinators and tutors of practice) the most suitable in terms of training students, identifying
the strengths and weaknesses in relation to the conduct of practical training
Presentation integrates the results with emphasis on elements that can be improved, structured
around the following areas: evaluation of the internship, access into the practice, conduct
practical work (satisfaction with the relationship with the tutor, satisfaction with relationship
with Coordinator of practice, student satisfaction with the activity, satisfaction with
knowledge, skills acquired in satisfaction with the practice, satisfaction with communication
with colleagues) positive, negative aspects, students' views on improving business practice.

Keywords: needs analyses, students, practice activity.
JEL:M53, M54
                                             65
       ANALYSE THE CAPITAL STRUCTURE AND PROFITABILITY OF
                  AGRICULTURAL CORPORATIONS
Herczeg Adrienn

For 21 years since the change in Hungary‟s economic system, the capital structure of
agricultural enterprises notable modified. The regime change that passed off two decades ago
did create significant alteration in the situation of agrarian sphere and it affected property and
holding relations as well as internal and external market positions and therefore also the
financing system of the sector. The present study discusses the capital structure of agricultural
enterprises and analyses the connection between capital structure and profitability. Defining
the optimal capital structure have for a long time been a focus of attention in many academic
and financial institutions that probe into this area. This is comprehensible as there is a lot of
money to be made advising firms on how to improve their capital structure. My empirical
analysis is based on data containing 192 agricultural enterprises from Hungary between 2002
and 2009. I made regression analysis for an empiric proof of capital structure theories and
cutpoint analyses to study the credit distributing phenomenon by Stiglitz since in the subject
of the database I searched the significance of wontedness and slant that marked damage of
normality at many factors, furthermore in many cases even the terms of a dispersion
homogenity were not certain. Because of repeated damages of the two modelled T-test, a
specified comparison of distribution seemed to be expedient within the confines of a cutpoint
analyses which I performed with the assistance of the ROPstat 1.0 statistic pack of programs.
 I try to assess the reasons of the changes in the structure of resources of enterprises in order to
find the determinants effecting the capital structure. Furthermore, I determine the capital
structure with that profit running could be achieved in the most effective way. As a result of
my review I can state, that the capital structure proportions take serious effect on the
fluctuation of profitability and I defined a proportion of foreign capital and own capital which
if reached or exceeded, may lead to operation producing deficit.

Keywords: capital structure, liabilities, Hungary, profitability, agricultural enterprises
JEL Classification codes: G32

ABOUT OTHER KIND OF PRODUCTIVITY AND GROWTH (HOMO-SAPIENS TO
                     HOMO-OECONOMICUS)
Jivan Alexandru

Part of a larger research, this paper ranges among the matter of ideas confrontation concerning
the causes of the economic crises and those keys to be passed.
Paper aims at finding and praising the defining elements of our economy, in the purpose of
better understanding the nowadays crisis, and at presenting certain conceptually different
approaches.
In this purpose, analytical presentations are focussed on the specific realities of the economic
life that are in position in the last centuries, which are considered to be favouring the arriving
to the critical states in the last years and to be promoting those maintaining, or which allow
explaining certain effects and tendencies.
The approach is made from the angle of the nature of the productivity that is had in view and
highlighted in the market regulating mechanisms, and of the due growth.
The paper is grounded on important analysis on the matter (including anterior researches of
the author), but their dimensions does not allow their presentation in the abstract.
                                                66
Analysis starts from interpreting the very nowadays crisis, from different sites concerning the
core (general) causes, by correlating with certain features of the industrialized consuming
society. More recent references are made in the literature on the matter. Modern western
economy is defined from the angle of focussing on material-quantitative productivity and
growth. Analysis tries to explain certain effects concerning this kind of focus. Interesting
effects and tendencies are noticed, that miss to the traditional approaches.
Further on an opposed theoretic model is discussed. This is built and developed inside the
service economy (on the case of two conceptually similar approaches, came from two
different sources of economic thought in the field; original contributions of the author are
involved). Adequately to the knowledge society, this last one is considered more favourable
for homo sapiens, at least once the visible effects of the last two hundred years model are
revealed, which are dominated by homo oeconomicus.
This reference model being set up, a short foray is intuitively made in the perspectives of
humanity on long run and on very long time, in the supposed maintain of the present
economic model.
In all those presentations and analyses, connections are made with other papers on the matter,
in the purpose of more profound study.
The conclusions concern the practical possibility of the model opposed to the industrialist
economic crisis.
The details highlighted from the analysis of the conceptual comparison between models and
prospections bring, in the final, at proposing solutions, grounded on fundamental requirements
on the line of humanity‟s values, with didactic addressing to the young generation. The
elements of contribution of the author are underlined in the presented matter.

Keywords: productivity, modern growth, economic crisis, knowledge society, service economy
JEL Classification codes: A13, H49, I25

                ECONOMICS ON THE ROAD TO THE DEVELOPMENT
Jula Octavian

The paper aims to stress if a certain economic model can lead towards economic development.
We will try to understand and explain if certain economic measures taken by well developed
countries can be used by emerging countries.
We will take into consideration along the public policies also the influence of foreign trade
into development of different countries.
Is it possible that one country to have economic decrease and in the same time to have an
important increase in the international trade? Seems like the answer in the case of certain
Eastern European Countries to be yes.
Even so it is a matter of reestablishing importance of different fields in national economies in
order to use the outcome in increasing the level of well-being of individuals.
International trade is maybe the most important tool to increase or decrease deficits. The
international trade policy is usually influenced by the public and fiscal policies inside one
economical area (national area).
If we analyze the world‟s area in which the international trade is having the highest impact on
GDP we for sure might say that also those countries are experiencing a high degree of
economic development. Also in respect to the public sector those countries are having high
degrees of public deficit.
Government spending grows in open economies as a mechanism to compensate for the
adjustment costs of trade openness. Small and open countries, which are affected intensely by
world business cycles from which they cannot easily insulate themselves through standard
                                               67
macroeconomic policies, choose to maintain high levels of public consumption and transfers
to protect workers in their losing economic sectors. High levels of spending are therefore
understood nearly as a functional requirement for the maintenance of internal stability and
peace. Moreover, high levels of government intervention are seen as a way of overcoming
market failures in the provision of skills and infrastructures: they ease the transition of the
unemployed to the more dynamic areas of production in countries that need to compete in
world markets to survive.
Can we create a public policy that will support the development using the vehicle of exports?
Can this be the solution for decreasing deficits and be a start for a new development even in
conditions of economic crisis?

Keywords: economic systems, development, public policies
JEL Classification codes: B21, B22, E20, E30, E50

    THE RELATIONSHIP BETWEEN MACROECONOMIC VARIABLES AND
       ROMANIAN CORPORATE DEFAULT RATES BETWEEN 2002-2008
Kovacs Ildiko, Karsai Zoltan-Krisztian, Suveg Orsolya, Joita Nicoleta

During its 20 year history of market economy, Romania experienced the most severe
downturn in 2009, which resulted in many cost, mainly because of the output loss. These
conditions forced several firms to declare bankruptcy and to stop their activity. The aim of this
research is to assess the relationship between the corporate default rates and the
macroeconomic processes in the case of Romania for the period comprised between 2002Q1-
2008Q4.
For this, based on the relevant literature, we ranked the potential explanatory variables of the
default rates into seven groups: cyclical indicators, household indicators, corporate indicators,
external sector indicators, price stability indicators and interest rates, loans to private sector
and finally the capital market indicators. Some studies base their results only on accounting
data, others only on market data. Our study focuses on both, since this seems to be an
adequate approach in capturing most of the processes.
Similar to the banks‟ loan portfolio structure, we conducted analysis for five sectors: industry,
construction, agriculture, services and the overall economy. For each sector the average
default probability at time t is modeled as a logistic function of many general and sector-
specific macroeconomic variables. The use of logistic regression was motivated by its ability
to account for fractional data between 0 and 1.
We found that at least one variable from each group has a significant explanatory power
regarding the evolution of the default rates in all five sectors analyzed. In some cases the sign
of the variables was the opposite of what the economic theory would have suggested, but it
has to be taken into account that Romania posted the picture of an overheated economy during
the analyzed period. Another important conclusion was that many variables were significant
through their lagged value, which indicates an even better supervision of the evolution of the
specific variables. From all the variables, the volatility of the BET-C index proves to be the
most important in predicting the evolution of the default rates, as it didn‟t proved to be
significant only for the construction sector. The evolution of FDI and the volatility of the
BET-C index proved to be very important in determining the evolution of the corporate
default rates, as well. The first was a very important factor in the financing of companies,
especially during the analyzed period, and the risk meter is something that never should be
disregarded when it comes of analyzing default rates.


                                               68
Keywords: corporate default rate, macroeconomic processes, economic imbalances, logistic
regression, lagged effects
JEL Classification codes: C22, C51, C52, E32, G32, G33

   ROMANIA'S ENERGY POTENTIAL OF RENEWABLE ENERGIES IN THE
              CONTEXT OF SUSTAINABLE DEVELOPMENT
Maghear Diana

The concept of "sustainable development" and the necessity for its realization has gone a long
way in order to be unanimously accepted. Over time many authors have written about the
problem regarding resources depletion, about the effects of pollution and their economic,
ecological and social aspects of it. From the observation of the pollution phenomenon and its
implications and until this problem has been acknowledged and accepted by a large number of
people this problem has been extensively described by various authors be they economists,
ecologists, biologists or psychologists and discussed at multiple conferences conducted in
order to find a solution to this problem.
In the last century, the use of fossil fuels (coal, gas, oil) has had disastrous effects,
catastrophic even on the environment, greater than any human activity in history. Among
these effects we can enumerate: global warming, the emergence of acid rains, thinning of the
ozone layer, etc. In consequence, the use of alternative energy resources becomes imminent
for the today world. Among these resources we can include the sun, the wind, geothermal
water, biomass, water, etc., which have the capacity to generate alternative energy namely
solar energy, wind energy, hydro energy, wave energy, geothermal energy, bioenergy
(biofuels), biodiesel, etc. that have the as purpose the reduction of the thermal, radioactive and
chemical pollution anywhere on the globe.
Renewable energy sources are largely indigenous; they are not based on the future availability
of conventional sources of energy, and natural or predominantly decentralized makes that the
respective economy to be less vulnerable in front of the supply with volatile energy.
Therefore, they constitute a key element of a sustainable energy future.
This paper is meant to highlight the need for achieving a sustainable development both in
terms of the problem that humanity faces which threatens the entire ecosystem and namely the
environmental pollution as well as the depletion of the conventional resources that are highly
polluting, highlighting the energy potential that renewable energy resources Romania has.
This issue will be extensively discussed in the thesis entitled "The necessity and importance of
sustainable development of Romania. Case study on the use of renewable energies for heating
the population in the western part of Romania” which I intend to realize and support at The
West University of Timisoara, Faculty of Economics and Business Administration, under the
guidance of Professor Doctor Laura Cismaș.

Keywords: Sustainable development, solar energy, geothermal energy, biomass, wind energy
JEL Classification codes: O13, Q01, Q27

     IS READY ROMANIA FOR EURO ADOPTION? FROM STRUCTURAL
         CONVERGENCE TO BUSINESS CYCLE SYNCHRONIZATION
Marinaş Marius - Corneliu, Socol Cristian, Socol Aura - Gabriela

The objective of this study is to identify gaps between economic and commercial structures
between Romania and the euro area and to explain whether the results obtained justify
recently decision to delay euro adoption beyond 2015. According to theory of optimum
                                               69
currency areas, the existence of similar economic structures, increasing trade integration and
synchronization of business cycles with monetary union will provide greater symmetry of
shocks between Romania and the euro area. If the shocks are more symmetrical, then common
monetary policy of the European Central Bank will act as a tool to neutralize the shocks in the
case of Romania, and the euro adoption would have fewer adverse effects. To meet the
research objective, we have structured this paper into three parts. In the first part we referred
to the importance of the proposed theme in the economic literature. In the second part, we
used several statistical methods to identify how divergent is Romania relative to the euro area
economies. The results obtained show increasing divergence between economic structures
until 2009 year using the NACE 6 methodology. In fact, Romania has the most divergent
structure in EU-27 countries, being characterized by lowest contribution of services to GDP.
However, structural differences do not constitute an obstacle to euro adoption, as long as
Romania becomes more commercially integrated with other European countries. Thus,
Romania is the seventh economy in terms of trade with the EU-27 (73.3% of exports and
74.3% of imports), and the degree of convergence between the structure of exports and
imports have increased significantly compared with 2000 year. In the third part, we estimated
the degree of synchronization of business cycles between Romania and the euro area, based
on Hodrick-Prescott filter. Results showed an increasing correlation of business cycles as a
result of increasing industrial activity and export synchronization.

Keywords: euro area, sectoral divergence, business cycle synchronization, Krugman index,
Hodrick-Prescott filter
JEL Classification codes: E32, F15

    EUROPEAN AUSTERITY WITHOUT GROWTH? EUROPEAN GROWTH
               WITHOUT EUROPEAN DEMOCRACY?
Montani Guido

The European project is facing a crisis. Citizens no longer understand what the EU is about.
Young people and the new ruling class have forgotten the clear message of the European
project launched just after the Second World War “No wars ever again among Europeans.”
The founding fathers of the European Union are mentioned in history textbooks, but today
Europe is felt as an irritating bureaucracy. In Europe, peace and economic stability are
considered as a natural state, a gift from above. Why keep a useless EU alive?
The state of the European Union is swiftly degenerating. In almost all the member states, the
anti-European forces are gaining ground. Populism is not a new ideology and is not
necessarily European: let‟s recall Peronism. In today‟s Europe populism is the new
manifestation of nationalism. In Italy the Lega Nord is in Berlusconi‟s eurosceptic
government. In France, the National Front is endangering UMP‟s hegemony. In Belgium the
rows between the Flemish and the Walloons threatens the state‟s unity. In the Netherlands,
Hungary, the Czech Republic, Austria and Finland, populist forces are either in the
government or strongly influencing the government.
National-populism is different from the nationalism of the past. De Gaulle‟s nationalism was
an ideology founded on the “grandeur” of France‟s history and on a certain idea of Europe,
which was “l‟Europe de patrie”, a kind of European unity accepting French leadership in
world politics. Today national-populism is a form of micro-nationalism: it opposes the
European project but without having a serious alternative. This is why populism is dangerous.
Its real goal is not only the breaking down of the European Union but also the disintegration
of the old nation states into micro-ethnic states, as what happened in former Yugoslavia.

                                               70
Keywords: -
JEL Classification codes: -

     A NEW THINKING FOR A NEW WORLD. REPRESENTATIONS FROM
                            ECONOMY
Negucioiu Aurel

An incursion, even a succinct one, incomplete, in the universal history, in the world economic
history and not in the least in the real world gives more and more “credit” to the idea
according to which the movement is the main form of existence – working and evolution – of
the society, economy, and of all the structures they are made of. Its “force motrice”, its
internal cause is represented, in our opinion, the unity and interaction of opposites.
 The changes, the transformations taking place in society and in its economy have direct or
indirect authors the human beings who, using their minds, “leaven bread” and express at the
beginning through thinking, the objectives that are going to complete or lessen reality. The
positive changes and transformations that the people operate renew the world.
 For more than half of a century, the humankind has been in a vast and very complex process
of transformation, changes with innovative character. In other words, a process of building a
new world. Hence, the need to create a new thinking. “A new thinking for a new world”
Making a halt in the field of economy – theory, science and practice – we are trying to bring
to attention to those interested a few considerations concerning the truth value of some
paradigms in the theoretical circuit, including their degree of rationality or irrationality.

Keywords: capital, industrial capital, commercial capital, financial capital, human capital,
social capital, microeconomics, mezoeconomics, macroeconomics, national economy,
mondial economy, world economy, economic development, eco-economic development, eco-
economi
JEL Classification codes: ?

                        TRENDS IN ROMANIAN TOURISM
Pirjol Florentina, Maxim Raluca Georgiana, Nagy Andrea

Tourism is an industry of the future, having the potential to provide significant revenues, and
an industry of „beauty”, because it will protect, preserve and contribute to arranging the
environment affected by other human activities. This is why it is very important to know the
evolution of this underdeveloped field in our country. This paper is intended as a study on
current trends in Romanian tourism without any claim of being an exhaustive research on the
industry, describing the main indices of tourist traffic and their influence on Romanian
tourism. Nowadays, we witness three main trends in Romanian tourism: sustainability,
ecotourism and the increasing presence of cultural tourism. Ecotourism, as a form of tourism,
has emerged from people's need to withdraw in nature, to visit and learn about the natural
areas which have or have not a national or international protection status. Cultural tourism
appears as a type of tourism clearly differentiated from other forms or types of tourism,
particularly through motivation. It can be defined as a form of tourist mobility whose primary
goal is broadening the horizon of knowledge by uncovering its architectural and artistic
heritage and the areas in which it originates. Sustainability for tourism, as for other industries,
has three independent aspects: economic, socio-cultural and environmental. Sustainability
implies permanence, which means that sustainable tourism requires the optimal use of
resources, minimizing the negative economic, socio-cultural and ecological impact,
                                                71
maximizing the benefits upon local communities, national economies and conservation of
nature. Regarding statistical data, in what quantity is concerned, there is an increase in
Romanian tourism, but in what quality is concerned there is a setback for tourism in the last
years. This aspect should make public authorities take concern in improving the infrastructure
and the quality of the touristical activity and in diversifying entertainment.

Keywords: sustenability, cultural tourism, ecotourism, trends, tourist traffic
JEL Classification codes: O11

 KEY ASPECTS OF ANALYSIS ON THE IMPACT OF RECENT DEVELOPMENTS
        IN HEALTH SERVICES IN THE WESTERN REGION OF ROMANIA
Pitorac Ruxandra Ioana, Toth Maria, Jivan Alexandru

The paper aims to establish the principal correlations and positions of the tertiary sector in the
Romanian economy, for realistic assessment of the actions, decisions and developments in this
field.
The research starts from the statistical analysis regarding the current condition and the
importance of services, calculating dynamics and relevant percentages. It is also detailed the
situation of health services in the western region. Its being inventoried some of the latest
developments and of most impact, within them.
The effects of government policies are viewed from the angle of influence on economic
activity, being performed a SWOT analysis adequate to the current situation. Attention is paid
both to the direct impact, in the field, and the indirect one, in the economic life ensemble and
society as a whole, short and long term.
The research results highlight the economic situation of Romania and the way in which
economic activity is in close contact with the health system.

Keywords: Tertiary sector, medical services, health reform, economic development,
sustainable development
JEL Classification codes: I18, R11

    THE POTENTIAL OF FEMALE ENTREPRENEURSHIP AS A REGIONAL
    GROWTH AND DEVELOPMENT ENGINE IN THE WESTERN ROMANIA
Pop Cohut Ioana

Starting from the objectives, activities, and the results of the empirical, quantitative, and
                                                      1
qualitative research carried out in the AntrES project, during the two years of
implementation, in the Western Romania referring to the new businesses start up; business
development; the motivation and difficulties of female entrepreneurs and potentially
enterprising women; of their perceptions regarding the need for entrepreneurship education,
the role of female entrepreneurship promotion and the impact of the successful models on new
businesses start up – this paper presents directions of action meant to emphasize and support
the potential of the female entrepreneurship in Romania, as a regional growth and
development engine.


1
  AntrES – acrronym project “Antreprenoriatul şi egalitatea de şanse. Un nou model de şcoală
antreprenorială pentru femei” (“Entrepreneurship and Equality of Chances. An Inter-regional Model of
Entrepreneurial School for Women”- T.N.)
                                                72
Key words: women entrepreneurship, new businesses start up, regional development
JEL Codes: B54, H81, M13, M21, R11, R28, R53, R58
REL Codes: 13C, 14D, 14 K, 16H, 18F, 18G, 20J

    THE DYNAMICS OF THE ROMANIAN UNIVERSITIES GRADUATES
               NUMBER IN THE 2005-2010 PERIOD
Popovici Adina

In the context of the European single market, where information, capitals, persons, goods
and services circulate free and fast, where economic rationality is different at the global
level from the national one, radical mutations occur in each member state‟s strategy with
regard to the educational system. Therefore, the Romanian educational system, especially
the Romanian higher education must correlate the graduates number with the Romanian
and EU labour force requirements, and take into account the necessities imposed by the
participation at international competition. On the other hand, a country‟s economic and
social development level depends very much on its citiyens‟ educational level, especially
in nowadays knowledge-based society, which is a society of life-long-learning.

Key words: knowledge-based society, education, human capital, universities graduates
dynamics, economic growth

JEL Classification: I21, I23, I25, J60


                        TRUST – A FACTOR OF PRODUCTION
Prunea Petru

The economic activity is more and more influenced by the condition and the evolution of
some immaterial and non-financial elements which exist in a firm or a country. One of these
elements - information - has unanimously been accepted as the 4th production factor. In this
paper I try to demonstrate that trust too, has to be accepted as a production factor. Especially
as it fulfils the fundamental conditions for this to happen : it is infinitly divisible and
homogeneous and, thus, its marginal product can be calculated. In nowadays world,
characterized by the apparently unstoppable expansion of the cruel individualism and of
market fundamentalism, which have undermined the trust in the success of private initiative,
producers increasingly need community, need another mode of involvement of the state in
economy and they need another way of relating to each other. The costs resulting from the
diminishing of trust have become so significant that their transformation into income is
necessary, if we succeed in basing ourselves on trust in the economic process.

Keywords: production factor
JEL Classification codes: E0

            DETERMINANTS OF COMMUNITY PARTICIPATION
Săveanu Tomina Gabriela

The present paper is part of the research of the PhD thesis made by the author, having the
following title: Community Participation in Oradea, registered at the University of Oradea -
Faculty of Social and Human Sciences. The general objectives of the paper are the
                                              73
explanation of different types of citizens`- involvement in the community life which they
belong to, the investigation of the existing relationships between different types of
participation and the identification of some social involvement stimulating mechanisms.
The citizens' political and civil participation, social responsibility, community spirit, civic
activism together with other concepts from the civil society's rhetoric entered, together with
intensifying the efforts for adhering to the European Community, the agenda of public
debates, being the subject of numerous studies performed in this field. The need for a strong
civic society, with interested and involved citizens in the life of the community which they
belong to for social and economical development belong to the same discourse of the strong
democratic society, being contended in the specialty literature, starting with Toqueville,
Almond and Verba, to Putnam and many others. In parallel to the civil society's rhetoric and
the analysis coming from this direction, are the studies and theories of community
development, which on one side are based on development policies, regulations, institutional
framework of development, but contain, mostly on the level of implementation of
methodologies and aspects of citizens' involvement in evaluating the community problems,
the deciding process in the actual implementation of solutions.
The present paper subscribes to the efforts of determining the factors which can increase the
implication rates in the community life of the Romanians, having as an effect the production
of different types of collective goods. Based on data obtained with the CEEX research,
coordinated by Adrian Hatos, "Leaders, Participants and Viewers. Determiners of community
participation in the urban Romania". The tested hypotheses in the research part, based on the
results of different studies and theoretic approaches, derive from the general question of the
paper: which are the factors that determine the community participation of the people living in
Oradea. Thus, the participation variation is verified by: gender, age, social status, social
capital, civic competence, leadership experience, participation opportunities.The main results
suggest that community participation is explained by civic competence, well-being, bridging
social capital, gender and age.

Keywords: community participation, community development, civic activism
JEL Classification codes: D17, H41

 IMPROVING THE ECONOMIC ACTIVITIES IN THE LESS FAVOURED AREAS
                              OF ROMANIA
Tileaga Cosmin, Cosmescu Ioan

This paper deals with finding solutions for improving the economic activities in Romania‟s
undeveloped areas, which still represent a major problem for this country‟s economy. During
1999 and 2009, these areas were considered tax havens, due to some facilities accorded by the
Government and the EU (headage compensatory allowances, tax deductions, non-refundable
funds). Many had the opportunity to invest in those regions, but no positive effect was to be
seen. Tulcea County (Danube Delta area), coal mine regions, rural areas and the North-East
area (Suceava and Botoşani county) are considered to be Romania‟s less favoured areas.

Keywords: less favoured areas, non-refundable funds, tax havens, economic growth,
economic activities
JEL Classification codes: E60




                                              74
  TRENDS OF EMPLOYMENT IN INFORMAL SECTOR IN ROMANIA DURING
                    CRISIS. ECONOMIC AND SOCIAL EFFECTS
Vasile Valentina, Pisică Silvia

The present paper emphasizes the size and trend of employment in the informal sector as
affected during the recent years by the crisis and by showing the relation with informal
economy. The paper is structured on three parts. The first part focuses on the concepts and
methodology popular and recommended by the international organizations together with the
ones applied for the estimations presented in the paper. It brings information on the
conceptual framework endorsed by International Labour Office (ILO) on the 15-th
International Conference of Labour Statisticians (15th ICLS) - on informal sector (which was
subsequently included in the revised international System of National Accounts, SNA 1993)
and employment in informal sector - and on 17th ICLS, on informal employment. Methods
used for obtaining the estimates for Romania figures on informal economy and employment
are treated. For the informal economy the method used by National Statistical Institute of
Romania (INS) for estimating the underground economy and own calculations were used. For
estimating the employment in informal sector a method developed by the authors was applied
which consists, on short, on reconciliation between demand and supply available from
statistical sources. Second part is dedicated to the analysis on the estimates produced, with
observations on the trends induced by the crisis on informal economy and employment. The
second also deals with several characteristics and dimensions of the employment in informal
sector by gender and economic activities as well as the relation with several macroeconomic
and social indicators. Finally, the third and last part proposes the direction of action and
policies aimed to combat and reduce the informal sector and to transfer it into the “light”,
“visible” side, i.e. the formal sector.

Keywords: informal employment, informal economy, economic crisis
JEL classification: E25, E26, G01

 YOUTH LABOUR MARKET. MOBILITY, CAREER DEVELOPMENT, INCOMES.
                        CHALLENGES AND OPPORTUNITIES
Vasile Valentina, Vasile Liviu

This paper presents the main characteristics of the youth labour market, with a special view on
mobility, career development and incomes. The paper is substantiated by and continues the
researches of the authors on the topic of labour force mobility and on the one of adaptability,
respectively on youths‟ beahviour on labour market (with particular consideration of young
graduates) highlighting the factors that adjust choices regarding taking up a job, career
advancement, labour motivation, professional and personal satisfaction opportunities which
are provided by the labour market at local level, in country and abroad. Quantitative and
qualitative indicators are presented about Romanian youths‟ labour market within the
European context during the transition period. The impact of the crisis on youths‟ labour
market is analysed, highlighting the challenges and opportunities, the particularities of the
newly created jobs and especially the knowledge, skills and competencies requirements
(KSC). The authors propose both the improvement of the systems of indicators for defining
the potential and presence of youth on the labour market, the economic and social impact of
external mobility of young graduates and an integrated scheme of policy measures for
promoting adaptability and performance integration on Romanian labour market of youth.
Particular attention is paid to presenting policy instruments for halting/diminishing the brain
drain and brain shopping phenomena by promoting an attractive (professionally and
                                               75
monetary) supply for employment in Romania‟s local economy. The authors succeed in
highlighting the functional links between the education market (labour force supply) and
labour market (employment demand of the business environment) underpinning the
requirement of integrated management of labour potential in the years preceding studies‟
finalization and up to the post-insertion years by multi-criteria analysis models and graduate
career tracking programmes. Correlative measures are suggested for policies, procedures and
monitoring instruments of youths‟ adaptability on labour market, as alternative to external
migration/mobility for labour.

Keywords: labour market, education market, young graduate adaptability, labour mobility,
career development
JEL classification: J40, I20, J61, I25


  THE EVOLUTION OF ROMANIA’S LABOR MARKET, DURING THE LAST 20
                                      YEARS
Vădăşan Ioana, Părean Mihai - Olimpiu

In this paper, the authors will try to analyze the evolution of Romania‟s labor market, in the
last nearly 22 years. More precisely, we will analyze the evolution of the number of
employees, the number of pensioners, and the number of unemployed workers, in the
mentioned period of time, and we will draw some conclusions.
We consider that the dynamic of the labor market is an important indicator, showing both the
economic situation, as well as its future evolution; this is why we have chosen to focus our
study on it.
In order to do so, using the data published by the National Institute for Statistics, and the
National Agency for Labor Force Employment, we have noticed worrying evolutions for
Romania‟s labor market: a decrease in the number of employees, an increase in the number of
unemployed workers and pensioners, as well as an increase in the number of those who,
although able to work, do not have and do not officially look for a workplace. In fact, this is
a limit of our research, because those persons either work (abroad, or on the “black” market),
either do look for a workplace, but are not registered as unemployed workers. Another limit of
our research is related to the insufficient explanations related to the evolution of the different
indicators. But our purpose was to offer an overview of the labor market for the last nearly 22
years, and to suggest some measures to be taken in the future.
In order to do that, we have analyzed the evolution of the number of employees, the
percentage of employees in the population able to work, the evolution of the number of
unemployed workers, the evolution of the number of pensioners. Also, we have made a
comparative analysis of the evolution of the number of employees and of the number of
pensioners.
Through this paper, we have tried to draw attention upon the worrying phenomena taking
place on Romania‟s labor market, as well as upon the fact that our country should take urgent
measures in order to increase the number of employees in the economy.

Keywords: labor market, employees, pensioners, unemployed workers, Romania
JEL Classification codes: E24 Employment, Unemployment; E 26 Informal Economy,
Underground Economy




                                               76
  THE SPECIFIC MARKET RESEARCH METHODOLOGY USED AT GENERAL
                                MOTOR'S EUROPE
Zima Liliana Adela, Toadere Rita Monica

As difficult as segmenting consumer markets is, it is much simpler and easier than segmenting
industrial markets. Often the same industrial products have multiple applications; likewise,
several different products can be used in the same application. Customer differ greatly, and it
is hard to discern which differences are important and which are trivial for developing a
marketing strategy. Making the research at General Motor‟s Europe I realized that the most
industrial marketers use segmentation as a way to explain results rather than as a way to plan.
In fact, industrial segmentation can assist companies in several areas like: analysis of the
market, selection of key markets and management and marketing. In this study I tried to make
a better understanding of the total marketplace, including how and why customers buy and to
develop strategies, plans and programs to profitability meet the needs of different market
segments and to give the company a distinct competitive advantage. The Marketing Plan is
based on an Information System which can be interpretaded in two different ways. In this case
its singular form focusing on both formal and informal information system is appropriate. The
investigation explains the environment of the European Business Team . The techniques used
were: system maps, observations, interviews, questionnaires and company documents. The
initial stage of exploring the situation starts usually with a dialog between the potential client -
in this particular case the European Business Team – and the analyst. The vague impression is
then given that not everything is running as it should be by the client. This was, however, not
completely true in my case, as I had to go looking for problems. Preliminary investigations
into product communication did show a feeling of unease between the departments. Having
expressed the current situation of the European Business Team, I then chose three areas to
study further. I had to confirm my choice to be able to grasp the complexity of the working
environment

Keywords: Marketing plan, market requests
JEL Classification codes: M: Business Administration and Business Economics; Marketing
;Accounting




                                                77
78
                  SUB-SECTION: BUSINESS ADMINISTRATION
        THE TOURISM BARRIERS OF THE DISABLED IN ROMANIA
Băbăiță Carmen Mihaela, Nagy Andrea, Filep Adrian Viorel

This article seeks to address a very sensitive issue in Romania, the disabled tourism. The
natural question is whether tourism can respond and meet the needs of such people.
Internationally, the researches in detail about tourism for people with disabilities are limited in
this direction, and those who exist are focused more on lack of physical access to certain
services in the hotel units.
As for the problems (barriers) that a person with disabilities may face when seeking to
participate in the act of travel there were found numerous internal and external barriers in
trying to participate in tourism activities
The study seeks to identify how normal people behave towards people with disabilities and
aims to demonstrate the existence of correlations between the responses of the interviewees,
which would lead to the presentation as close to the truth as possible of the results from the
sample (section), transposed over the population from which the sample belongs and also lead
to finding conclusions on which there could be made several proposals.

Keywords: tourism, disability, social tourism, attitude, internal and external barries
JEL Classification codes: M10, L83

START-UP FINANCING SOURCES: DOES GENDER MATTER? SOME EVIDENCE
                      FOR EU AND ROMANIA
Bădulescu Alina

Although financial resources are very important in SMEs in general, and for start-ups in
particular, many entrepreneurs face numerous restrictions in finding sources for start-up
financing. The present article aims to investigate the similarities or differences in start-up
financing sources due to gender issues, otherwise to investigate if female entrepreneurs use (or
have access) different financial sources in the early stage of their business.
As reported by the literature, access to finance is one of the most important issues for SMEs
and nascent entrepreneurs. Moreover, among the main financial issues, the first one is the
access to start-up finance (Schwartz, 1976; Carter and Cannon, 1992; Johnson and Storey,
1993; Koper, 1993; Van Auken et al, 1993; Carter and Rosa, 1998, FOBS survey 2005). In all
sectors, women use for starting up businesses substantially less capital then men. Women
encounter, more then men, credibility problems when dealing with bankers. This problem
causes important effects concerning the performance, survival and growth of women-run
businesses.
The present research focuses on revealing how male and female entrepreneurs face and solve
the problem of start-up financing sources. The methodology is based on using the dataset
“Enterprises managed by the founder - broken down by gender of the entrepreneur”, available
in EUROSTAT database. The data selected refers to the start-up financing sources available
for European Union and Romania, regarding activities included in NACE: Industry and
services excluding public administration and management activities of holding companies and
2005 as time of reference. The data were used to make some comparison between: male
versus female entrepreneurs in EU; male versus female entrepreneurs in Romania; EU
entrepreneurs versus Romanian entrepreneurs.
The main findings reveal that there are no significant differences between men and women
concerning the start-up financing sources. The main sources are the internal ones: own fund
                                                79
and savings (ranging from 82% to 92%), and financial assistance from family and friend
(ranging from 25% to 34%), both for male and female entrepreneurs, both for EU as an
aggregate and Romania. Among the external sources, bank loans are the most important: they
have been indicated by 17% of the females (EU) and 19% of the males, about 10 times more
than the other external sources together: capital contributions from other enterprises and
venture capital. There are no significant gender differences in EU case, and also there are not
in the case of Romania. Apparently, gender does not matter about sources used for start-up
financing. The most significant difference concerns the financial support from public
authorities as financial source. The number of female entrepreneurs indicating financial
support from public authorities as a source for start-up financing represents 6.18% in EU,
versus 0.17% in Romania (36 times less in Romania than the EU average), while for men the
figures are 4.85% in EU versus 0.30% in Romania (16 times less in Romania). This gap
brings again in front of policy responsible the imperative of financially supporting nascent
entrepreneurs, as the key to sustainable economic growth.

Keywords: entrepreneurship, women entrepreneurship, financial sources for business start-up
JEL Classification codes: M13

 COLLATERAL’S IMPORTANCE IN SMES FINANCING: WHAT IS THE BANKS’
                  RESPONSE? SOME EVIDENCE FOR ROMANIA
Bădulescu Daniel, Petria Nicolae

Searching for funding, SMEs‟ managers face various obstacles arising from information
asymmetry, lack of experience, severe market conditions, and insufficient or unsatisfactory
collaterals for banks (OECD 2006; Badulescu and Badulescu 2010; OECD 2000 and 2004;
Lin and Sun 2006; Toivanen and Cresy, 2000). The collateral issue is extensively discussed in
literature – preventing moral hazard, the alignment the interests (Stiglitz and Weiss 1981:393-
410; Chan and Thakor 1987:345-363; Jiménez and Saurina 2004), a means to discipline the
borrowers behaviour (ex post) given the existence of a credible threat (Aghion and Bolton
1992:473-494), or even banking behaviour on the market (Manove et al. 2001:726-744,
Argentiero 2009). In the same time we find that the perception of firms, revealed by National
Bank of Romania (NBR 2010) survey data, show that banks still use the collateral as a
measure of pressure, in special in crisis times. For an important part of managers, the bank
increased the level of required collateral for existing, renewing or new credits, asking for new
covenants, revealing a paradox of crisis time: while the bank loans remained the favourite
method of external financing needs of business, the banks often reduce their availability.
Although the bank loan remains the favorite mean to support the growth ambitions, the higher
level of collateral or lending costs are seen as principal obstacles by the majority of manager
in EU. According to NBR survey, the influence of risk factors related to collateral had a
climax at the end of 2008 and 2009, when the banks have tightened the requirement for loan
guarantee. Using National Bank of Romania (NBR 2010) survey data, we show that the banks
still use the collateral as a measure of pressure, in special in crisis times. For an important part
of managers, the bank increased the level of required collateral for existing, renewing or new
credits, asking for new covenants, revealing a paradox of crisis time: while the bank loans
remained the favorite method of external financing needs of business, the banks often reduce
their availability. According to NBR survey, the influence of risk factors related to collateral
had a boom at the end of 2008 and 2009, when the banks have tightened the requirement for
loan guarantee. Following the European trend in straightening the credit conditions, Romanian
market had a more pregnant evolution with a rapid deterioration of these conditions during the
second and the third quarter of 2008. In general terms, the seeking for higher percentage of
                                                 80
coverage with real estate collaterals, paradoxically, makes banks more vulnerable, given their
pro-cyclical behaviour, feeding the real estate market crisis.

Keywords: SMEs lending, collateral, credit standards
JEL Classification codes: G21

THE BRAND EQUITY OF TOURISTIC DESTINATIONS – THE MEANING OF THE
                                      VALUE
Ban Olimpia, Popa Luminiţa, Silaghi Simona

In today‟s global economy, each place competes with other places for economic benefits.
Destination has become a product that has to be promoted and sold in the most advantageous
terms. The work bellow is an analysis of “brand equity” concept for touristic destinations, as
found in the specific literature. Destination brands differ from product brands, major
distinction being given by their stability/ instability. Brands of products are stable; this
constant is maintained by the use of quality standards. Even in case of services, situation can
be controlled, as quality standards could be perpetuated by a franchise system. Destinations
are not depending on a single person, who decides, but a variety of them, economic agents,
businesses, institutions and local population that can create/print form and structure changes
of the destination.
The concept de brand equity applied for touristic destinations, is something relatively recent.
The dimensions of a brand for touristic destinations are: awareness, image, loyalty, quality
and value. All these dimensions build the branding equity of a destination. There is
interdependency, between quality, image, loyalty and value. In order to determine the
perception in regards to the quality of tourism services in Romania, in 2010 a comprehensive
study was done among the inhabitants of Oradea city. Through this study we have pursued
several objectives: to assess the importance of service characteristics, performance evaluation
of tourism services in Romania, tourism personnel evaluation, in terms of evaluation and
performance, perception of the quality-price ratio for Romania, compared with other tourist
destinations. We call on the exploratory study conducted, as the value of the dimension-
destination of the brand equity is given by the price-quality ratio. Using an explorative study
on the market of Oradea city, it was highlighted the connection between perception of
touristic services, estimation price-quality (value) and the loyalty potential of the foreign
clients in proportion with the Romanian tourists, consumers of the Romanian touristic
products.

Keywords: brand equity, destination, tourism, survey, Oradea
JEL Classification codes: M21, M31

  COMPARATIVE STUDY REGARDING OVERNIGHTS REGISTERED IN THE
MEMBER STATES OF THE EUROPEAN UNION AND ROMANIA, DURING JUNE-
                      SEPTEMBER 2009/2010
Borma Afrodita

Second year PhD student at the University of Oradea, under the guidance of Prof. Alina
Bãdulescu, within the Doctoral Research Project entitled „Doctoral studies and phd candidates
for a competitive research in a knowledge-based society,” (01.10.2009-01.10.2012), I chose
the presentation of this theme because after studying a number of statistics presented by
Eurostat (Statistics in Focus 53/2010, 6/2011, 19/2011 etc.) we could not ignore the alarming
                                              81
situation regarding the number of overnights registered throughout Romania, in comparison
with the other Member States of the European Union. By chosing the following research
theme: „Tourism and development in the euroregional context” I felt the need to find out more
answers regarding the afore mentioned problem. In consequence I started to consult the
statistics recorded in our country concerning the number of overnight stays registered in
Romania during the period June-August 2009/2010, in order to check whether an error has
sneaked in.
The research methodology employed consisted in the use of the insse.ro site, in order to gather
representative data for the period June-September 2009/2010, regarding the number of nights
spent by foreign and Romanian tourists in Romania. For this study to be even more
representative I have established Romania's main touristic areas preferred by Romanian and
foreign tourists.
Following the data collected, unfortunately, it has been confirmed the situation presented by
Eurostat in the table at the beginning of paper on the number of overnight stays registered in
Romania. According to the data presented in this table, Romania ranks last in the EU,
registering in 2010 a rate of only 15% of total nights spent by non-residents in our country.
I also tried to find answer to the following questions:
Which are Romanians‟ favorite touristic areas?
In which tourist area of Romania has been recorded the highest number of overnight stays of
foreign tourists?
Why the number of nights spent by foreigners in Romania is so small?
Which are the main shortcomings of Romanian tourism?
For the last two questions I tried to answer with the help of some experts in tourism, who
consider that although there presented inadequacies exist for more than 10 to 15 years, the
steps taken for their improvement are achieved with the slowness.

Keywords: European Union, Romania, the number of overnights, residents, non-residents
JEL Classification codes: A 12

        HOLON APPROACH IN NEED OF COMPANY RESTRUCTURING
Breban Ludovica, Bochiş Leonica

Holon concept of systems theory and systems developed in after 80s of last century. The term
holon (Greek: Hales = whole, derived from parts) was taken over by specialists in the field of
systems, from the American Professor A. Koestler, who first used in the context of the
systems division, talking about systems that operate in other systems. The holon is essentially
an operating system under which one or more autonomous systems, integration.
The holon is integrative role that optimizes operation and results of embedded systems,
limiting excessive generalization of the classical notion of system. This approach assumes that
there are quite a few companies in the state of "vitality" or less and those who remain in a
state of alert and that in most cases, even a viable business, reservations, or to increase the
effectiveness of that maintaining this state requires some effort, area businesses in "difficulty"
or "vulnerable" under these conditions is expanding.

KEY-WORDS: holon system, restructuring, analysis diagnosis, risk analysis, risk of
bankruptcy.
JEL Classification: M – Business Administration and Business Economics; Marketing;
Accounting
M1- Business Administration, M19 - Other

                                               82
     INVESTMENT STRUCTURE AND EVOLUTION IN THE CONTEXT OF
                       ECONOMIC CRISIS
Codău Ciprian-Crăciun

The scope of this article is the evolution analysis of net investment in Romania between
economic growth and international economic crisis. The analysis captures both the evolution
of net investment by structure elements (buildings, outfits, other investments) and the
structure and evolution of investments by sources of financing. Also there is an analysis of the
foreign direct investment (FDI) share in the total net investment and the impact of the
economic crisis on this share. The article aims to identify the main factors for the evolution of
investments in Romania before the financial crisis and determine how the financial crisis
influenced the structure and volume of investments in the national economy.
Most previous studies have focused either on a small part of the investments made in Romania
(in most cases the FDI have been analyzed) or on the period of economic expansion without
capturing the evolution of investment during the economic crisis. Previous research has
highlighted especially the FDI influence on macroeconomic indicators of high importance for
the economy (unemployment rate, GDP growth rate, etc.) with less focus on the factors
influencing these investments and the close connection between the economic context
(economy status) and the volume of these investments.
For the analysis of the investment evolution during the mentioned period statistical data was
used that captured both the investment evolution trend and the changes occurred by the
national economy stepping into recession amid the global financial crisis established. To get
an overview of the situation it was considered a time internal that captured both the economic
growth and the period after the onset of the economic crisis. Thereby information was
obtained on the volume of net investment during 2000-2010, on foreign direct investment in
the period 2003-2010 and their share in total net investment and also on the main sources of
investment financing during the economic growth and the influence of the economic crisis on
the structure of these funding sources.
The analysis of this information and results allowed drawing conclusions on the impact of the
economic crisis on the volume and structure of investment in Romania, on the main sources of
financing used by investors in times of crisis and regarding main courses of action to stimulate
investment activity in order to re-launch economic activity.

Keywords: Net Investment, Romania during crisis, foreign direct investment (FDI), sources of
investment founding, investment evolution

JEL code: D920

 THE SIX SIGMA SYSTEM IN RELATION TO THE BUSINESS’ STRATEGY AND
                                   PRIORITIES
Drăgoi Ionuţ, David Marcel, Boldea Monica

Now more than ever, corporations the world over are scrambling to redefine the processes,
techniques, and strategies they need to survive in an age of uncertainty. Businesses today seek
an effective corporate performance measurement system to maximize the bottom line. With
the advent of the Internet, ongoing globalization, and standardization in management systems,
business leaders must focus on how to measure performance to monitor their continued
viability and success. Many existing performance measurement systems were designed to
support business practices and to monitor progress. With shrinking margins and competitive
pressures, however, corporate performance measurement systems must do more than monitor.
                                               83
They must identify opportunities for optimizing profitability and growth, without pitting one
against the other. The idea is to use performance measures to add value, instead of simply
measuring for a formality.
The Six Sigma method is not only a trendy “new solution”, it is not a business whim linked to
a single method or strategy – the study trying to draw attention to the fact that Six Sigma is a
flexible system to improve the management and the performance of companies. The research
paper seeks to demonstrate that the Six Sigma method refers to both the passion for customer
service and a drive for new ideas, and to statistics and processing numbers, finding application
in the fields of marketing, services, human resources, finance and sales, as well as in
production and engineering.


Keywords: Six Sigma method, quality, performance measurement, profitability, growth
JEL Classification codes: M10, L21, O43

   THE ROLE OF THE SUSTAINABILITY REPORT IN CAPITALISTIC FIRM
Gazzola Patrizia, Meo Colombo Carlotta

The aim and the central topic of this research is the understanding of the importance of
Sustainable growth strategy approach as a driver to achieving top-line growth and bottom-line
results.
The main contributions of this line of research are to demonstrate the idea that the
sustainability report is an instrument for social interaction and social cost/benefit analysis and
to show that such an instrument can describe, comment on and sum up the firm‟s own
behaviour aimed at sustainable growth.
The work integrates the CSR management literature with a large body of research in
accounting and finance.
This study draws from theoretical research about the nature of the corporation, its role in
society and contributions by recent research on corporate social, environmental, ethical
responsibility and accountability.
Our research demonstrates that the economic existence of the capitalistic firm as a producer of
economic and financial values must be appreciated, in terms of the sustainability of the
development path of the firm, and evaluated by a wide range of social performance measures
of outcome or benefit.
It also shows how the Sustainability report emphasizes the link between firm and territory,
and affirms the concept of the firm as an entity that, by pursuing its own prevailing interests,
contributes to improving the quality of life of the members of the society in which it operates.
This paper contributes primarily to the academic debate by reviewing past attempts to theorise
CSR and stakeholder dialogue, identifying gaps and weaknesses, and proposing the
Sustainable Growth implementation processes for the creation of value. It also highlights the
relationship between CSR activity and corporate image and performance.
The research shed light on aspects of CSR activity for which little is known and much less is
being understood; namely, the channels and the mechanisms through which the CSR impact is
perceived and realized for creation of value.
Carlotta Meo Colombo (3) considers the capitalistic firm as Business Value-Creating
Organizations and Patrizia Gazzola (1-2;4-6) considers the Sustainable Growth
implementation processes for the creation of value.
Keywords: Sustainable Growth, Creation of Value, Sustainability Report, Performance,
Stakeholders
JEL Classification codes: M14, M41
                                                84
      CODES AND PRACTICES OF IMPLEMENTATION OF CORPORATE
          GOVERNANCE IN ROMANIA AND RESULTS REPORTING
Grosu Maria

Corporate governance refers to the manner in which companies are directed and controlled.
Business management was always guided by certain principles, but the current meaning of
corporate governance concerns and the contribution that companies must have the overall
development of modern society. Romania used quite late in adopting a code of good practice
in corporate governance, being driven, in particular, the privatization process, but also the
transfer of control and surveillance of political organizations by the Board of Directors (BD).
Adoption of codes of corporate governance is necessary to harmonize internal business
requirements of a functioning market economy. In addition, the CEE countries, the European
Commission adopted an action plan announcing measures to modernize company law and
enhance corporate governance. Romania takes steps in this direction by amending the
Company Law, and other regulations, although the practice does not necessarily keep pace
with the requirements. This study aims on the one hand, an analysis of the evolution of
corporate governance codes adopted in Romania, but also an empirical research of the
implementation of corporate governance principles of a representative sample of companies
listed on the Bucharest Stock Exchange (BSE). Consider relevant research methodology,
because the issuer of the Codes of CG in Romania is BSE listed companies requesting their
voluntary implementation. Implementation results are summarized and interpreted at the
expense of public reports of the companies studied. Most studies undertaken in this direction
have been made on multinational companies which respects the rule of corporate governance
codes of countries of origin. In addition, many studies also emphasize the fair treatment of
stakeholders rather than on models of governance adopted (monist/dualist) with implications
for optimizing economic objectives but also social. Undertaken research attempts to highlight
on the one hand, a misapplication of the principles of corporate governance in Romania at
present, but also a lack of transparency in the dissemination and publication of information.
They should promote a Board of Directors determined and would allow stakeholders access to
information about the company. Research results can provide a basis for reconsidering the CG
policies in Romania.

Keywords: Corporate Governance, Governance Code, Corporate Governance Principles,
Annual Report, Governance models
JEL Classification codes: G34, M14, M48, N40

           HOW COULD HOSPITALS ACT IN AN AGEING SOCIETY?
Leuca Mirela

The demographic changes are of great importance for all European societies. Their impact and
effects have multiple, deep facets. Each European healthcare and welfare system will be
facing considerable changes in the new demographic context. The hospital sector plays an
important role in each health system. This paper focuses on the impact of the demographic
changes on hospitals, presents and analyzes statistical data for the German hospitals sector in
order to underline the importance of the older age groups for the number of the hospital
inpatient cases, the provided range of medical services and disciplines and for the hospital
disease costs. The paper also reveals main findings from 30 interviews conducted in 2010
with German health experts (from hospitals, health insurance companies, universities,
                                              85
institutes and regional healthcare policy makers) that accepted to answer questions referring to
the demographic impact on the German healthcare system and hospital sector. The results of
the interviews show that hospitals will have to act and react to the demographic changes.
German hospitals might play different roles in the healthcare service provision for older
people when engaging in new models of integrated care that will have to be developed.
Processes, structures, human resources expertise, hospital service provision and medical
departments will undergo major changes in response to the demographic challenges.
Networks, centres of excellence for older persons and integrated care will probably be
indispensable structures of the German healthcare system in the future. Strategic partnerships
with pre- and post-hospital healthcare service providers are considered to be top priorities for
German hospitals when facing the demographic challenge. Central case management and
process optimization can be essential factors of success in the hospital care of the older,
multimorbid patients. Acute geriatric medicine will be a main quality feature for the hospital
care of older patients not only in the German healthcare system.

Keywords: hospital care, ageing society, hospitalized elderly patients, demographic
challenge, expert interviews
JEL Classification codes: I11, J11, M10

 PROBLEMS AND CHANCES AT THE INTERFACE BETWEEN HOSPITAL CARE
                      AND GERIATRIC REHABILITATION
Leuca Mirela, Fastenmeier Heribert

Available statistical data offer valuable information on recent demographic changes and
developments within European healthcare and welfare systems. The demographic evolution is
expected to have considerable impact upon various, major aspects of the economic and social
life in all European countries. The healthcare system plays an important role especially in the
context of ageing societies, such as Germany. This paper focuses on the evolution of the
prevention or rehabilitation service sector during the last years in Germany, analyzes the
specific characteristics of the elderly patients being cared for in these facilities and underlines
important aspects at the interface between (acute) hospital and geriatric rehabilitative care.
Networking, integrated care services and models will be of even greater importance in the
future demographic setting generating (most probably) increasing numbers and percentages of
elderly, multimorbid hospitalized patients. More than this, the cooperation at regional level
between acute geriatric hospital departments and geriatric rehabilitation facilities has become
a mandatory quality criterion in the Free State of Bavaria. This paper presents and analyzes
issues referring to a precise cooperation model (between acute and rehabilitative care)
recommended for implementation even by the Free State of Bavaria while emphasizing
several examples of good practice that have guaranteed the success of this cooperation model.
The analysis of the main causes leading to longer length of stay (and thus “delayed
discharges”) for the elderly patients transferred to geriatric rehabilitation facilities within the
reference model for acute-rehabilitative care provides important information and points at the
existing potential for optimization in the acute hospital setting. Vicinity, tight communication
and cooperation, early screening, implementation of standard procedures and case
management are some of the activities that have contributed considerably to the improvement
of the hospital length of stay and transfer management for elderly patients benefiting from
(follow-up) inpatient geriatric rehabilitation services. The presented facts are important not
only for the German health setting.


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Keywords: acute-rehabilitative care interface, demographic impact, process optimization,
care networking, geriatric patients
JEL Classification codes: I11, J11, M10

 OUTSOURCING STRATEGIES. HOW TO FORMALIZE AND NEGOTIATE THE
                            OUTSOURCING CONTRACT
Pellicelli Michela, Meo Colombo Carlotta

In the globalized economy multinational firms have given rise to local firms able to produce at
a low cost and at acceptable quality levels. A growing number of firms have outsourced
production and manufacturing activities of all types to these firms, not only to reduce
production costs but also to make their organizational structures more streamlined and
flexible. Outsourcing decisions, which originally were limited to production which had a
modest technological content and was of marginal importance for the business in question, is
increasingly adopted for activities which, requiring core competencies or belonging to the
core business, were considered inseparable from the organization and thus not outsourceable.
Gradually an outsourcing strategy has developed which has found it convenient to outsource
even core competencies and functions, such as specialized manufacturing, which require a
particular technology, marketing, product design, and the search for know-how (Prahalad and
Hamel 1990: 79-91).
Such an outsourcing strategy has a number of advantages, among which quality improvement,
a greater focus on managing other core competencies, a greater flexibility and leverage
regarding resources, along with the possibility of entering new markets, even ones with a high
rate of development.
This article analyzes the fundamental stages for an outsourcing strategy. It will demonstrate
how, in order to achieve an outsourcing strategy, it is necessary to include outsourcing in the
general strategy, gather suitable information for choosing the outsourcer, negotiate the
contract with the supplier, choose the type of relationship to have with the supplier, and,
finally, plan the transfer of activities and functions from the outsourcee to one or more
outsourcers or providers.

Keywords: outsourcing, outsourcing decision, strategic perspective, outsourcing contract,
contract negotiation, outside information, organizational culture.
JEL Codes: M10, M19, L20, L21, L24, L26

       DESCRIPTIVE ANALYSIS OF THE INTERNATIONAL MIGRATION
             PHENOMENON IN ROMANIA BETWEEN 1991 AND 2008
Petrescu Raluca Mariana, Zgura Ion Daniel, Bac Dorin Paul

Migration represented and represents a very important phenomenon at global level, taking into
consideration besides its demographic implications, its extremely diverse implications such as
socio-economic, socio-cultural, territorial, or environmental. This represents, probably, the
main reason why the research on migration is interdisciplinary, having strong connections
with sociology, political sciences, history, economics, geography, demography, psychology,
or low, among others. All these disciplines target different aspects of population migration,
and a proper comprehension of the phenomenon implies a contribution from the part of all of
them. Although migration represents a phenomenon manifested since ancient times, it has
never been such an universal or significant phenomenon from the socio-economical or
political perspective, as it is in present times. International migration has both a negative and
                                               87
positive impact on both provider and receiving countries, in general playing a very important
role in the structure and dimension of the population of a country. Romania is not an
exception to the previously expressed statement; furthermore, after the fall of the communist
regime, migration became for Romania one of the most important socio-economical
phenomena. The present paper aims at analyzing in a descriptive manner the international
migration phenomenon in Romania between 1991 and 2008, from quantitative perspective.
Based on data identified in the "Statistical Yearbook of Romania” - 2008 and 2009 editions -
the analysis revealed the fact that both immigration and emigration flows registered
oscillatory evolutions in the analysed period, but the general trend of immigration was of
increasing, while the one of emigration was of decreasing. Immigration was dominated by the
presence of males, of persons aged between 26 and 40 and of persons coming from the
Republic of Moldova. On the other side, in the case of emigration the significant presence of
females, of persons aged between 26 and 40, of persons of Romanian nationality and of those
who preferred as main destination country Italy, was remarkable.
Keywords: international migration, immigration, emigration, Romania
JEL Classification codes: F22, O15

   THE INTANGIBLE ASSETS INVESTMENTS. CHARACTERISTICS AND THE
                           ACCOUNTING TREATMENT
Săcui Violeta, Predişcan Mariana

In the knowledge-based economy the fundamental determinants of the enterprise value, in the
present, have an intangible nature. The intangible investments are the most important factors
of the enterprise success. Wealth, growth and welfare are driven nowadays by intangible
investments. The knowledge economy is characterized by huge investments in human capital
and informational technology. Despite of the increased importance of intangible assets, as the
source of the firm` competitive advantages, the information regarding these kind of assets,
both available in the inside of the firm and, which is presented to the externals, is pour. In this
paper I present the reasons for this situation.
Keywords: intangible, investments, assets, accountancy, value
JEL Classification codes: G31

EUROPEAN CROSS-BORDER MERGERS AND ACQUISITIONS- REALITIES AND
                       PERSPECTIVES
Vancea Mariana

This paper analyses the impact of the economic and financial crisis on merger and acquisition
activity in Europe and the latest trends manifested on the cross-border merger and acquisition
market involving European companies. Thus, a first objective of this research is to reveal the
evolution of the European cross-border merger and acquisition activity in terms of dynamics,
volume and structure. Another objective of this research is to reveal the short and medium
term perspectives on mergers and acquisitions in Europe. Thus, under the continuous
economic recovery of the European countries and the other worldwide economies, the
recovery of financial markets and the growth of corporate profits, we shall witness an
intensive cross-border merger and acquisition activity in Europe. The expansion engine of
these operations seems to be represented by the emerging economies. This research is based
on a systematic, logical and comparative analysis of scientific literature and statistical data
regarding the cross-border mergers and acquisitions that involve European companies in
recent years. This paper is part of the doctoral thesis ”Mergers and acquisitions- strategies of
                                                88
growth and development of enterprises. European and national particularities”, coordinated by
professor Ph.D. Alina Bădulescu from University of Oradea, Faculty of Economics. The
doctoral research is supported by The Sectorial Operational Program for Human Resources
Development 2007-2013, Contract POSDRU 59/1.5/S/1- ”Romanian researchers through
modern and efficient doctoral programs”.

Keywords: cross-border mergers and acquisitions, firm strategy, external growth, economic
and financial crisis, economic recovery
JEL Classification codes: F23, M10, M16

       VISITOR AND EXHIBITOR CLUSTERS AT EASTERN-EUROPEAN
                       AGRICULTURAL FAIRS
Varga Levente

There is no exact information concerning the economic effect of the agricultural exhibitions
neither on national nor on international level. Some publications focus on the positive
externalities of exhibitions, but the exhibition itself is a neglected topic. Although the fair is
one of the most ancient marketing-tools; its role is still relatively high in the marketing mix of
different economic sectors, even nowadays, in the Internet-age. One of these sectors is the
agribusiness, where the exhibition is a place of business-to-business communication,
Customer Relationship Management, and last, but not least an important Point Of Sale.
The aim of the present paper is to point out the importance of exhibitions through the
assessment of their popularity. From this aim, we have derived the following objectives:
- To build a model concerning the relationships among the interested parties.
- To asses the visitors of five Eastern-European exhibitions.
- To asses the exhibitors of the same exhibitions.
- To compare the opinion and expectance of the mentioned groups.
- To test the model, based on the questionnaires‟ data.
- To measure the radius of attraction by the attendees, as well as by exhibitors
I have collected primary data through questionnaires and site visit, and also have obtained
secondary data from printed and electronic documents.
In this paper, I present a model, which describes the relationships among the interested
parties. The data was collected on four different exhibitions: Farmerexpo (Debrecen,
Hungary) in 2005 and 2006, OMÉK (Budapest, Hungary) from 2005 and Polagra-Farm
(Poznan, Poland) 2006.

Keywords: Exhibition, fair, visitors (attendees), exhibitors, radius of attraction, cluster
analysis
JEL Classification codes: Q1




                                               89
90
                     SUB-SECTION: ECONOMIC STATISTICS

     ROMANIA – PORTUGAL: A COMPARATIVE ANALYSIS OF THE TWO
                        COUNTRIES’ LABOUR MARKETS
Dimian Gina Cristina, Dimian Mihai

Our choice was justified by the fact that between the two countries exist some features that
make them interesting to study from the employment point of view. Thus, both countries are
Latin and this is why we consider they are comparable, because employment means people,
more precisely mentalities and attitudes to work.
We considered that it is interesting to see how the labour market from the east Latin Europe
has evolved, in a comparable, crucial period, with its counterpart from west Latin Europe.
First of all, we would like to point out the fact that our intention is to analyse the periods
which from the economic history point of view have influenced in a decisive manner the
present evolution of the two countries.
The Portugal labour market is a subject of real scientific interest (we would like to mention
that even Michael Porter was interested by this topic). Our paper tries to emphasize the
common and different features of the two labour markets, in order to facilitate an experience
sharing process on this topic.
To achieve the paper’s objectives statistical and cluster analysis have been used. This is
one of the best ways to capture the influence of determinant factors on labour market
performance.
The degree of originality is given by the assumed objectives, namely studying some very up-
to-date problems from an interconnected perspective (historical similarities, structural
changes, labour market performance) and analyzing the Romanian situation compared to other
EU countries, i.e. Portugal.
The main impact of the paper will be on the practical level through the model outcomes and
conclusions. One of the objectives is to look for solutions to the problems identified and to
persuade policy makers to give them a greater importance.
Our main contribution is represented by the fact that we have approached this topic from an
economic and historical perspective, trying to find explanations for the present situation in the
modern past of the two nations.

Keywords: labour market, structural changes, education, cluster analysis, EU accession
JEL Classification codes: J21, J24, J88

 EVALUATING TEACHING PERFORMANCE. FROM THEORY TO PRACTICE
                         USING STATISTICAL TOOLS
Mare Codruta, Dragos Simona, Span Georgeta

The teaching performance is influenced firstly by the quality of the educational system. The
universities are trying to raise the expectations regarding the methods used for evaluating the
teaching quality. In order for the results to be as much as credible the evaluation must defer to
the existing theory and to follow the standardized procedures, starting from some basic
principles. The most used framework is represented by the 3P model which contains three
parts: 1. The input (factors that come under the students and the professor) 2. The learning
process (activities focused on learning, teaching methods, practical ability, individual study)
3. The outcome (the output of the learning process).This study presents some results of a
questionnaire based on the existing economic theory and applied to a sample of master
                                                 91
business students from Romania. The students were asked to give grades from 1 to 5 to
several aspects related to the educational process. These aspects took into consideration the
following: if the didactic activity was interesting for the students/ the relationship between the
objectives of the course and the activity evolved/ the clarity of the presentations/ the degree of
students� participation required by the teacher/ the methods and materials used/ the
availability of the teacher. The average grade is 4.39, indicating a very high level of
satisfaction, taking into account that the grades ranged from 1 to 5. For 50% of the students,
the average grade was below 4.53, while for the other half it was above the specified value.
But one has to see the value returned for the majority of the students. The mode equals 5,
meaning that most of the students involved in the analyzed programme are extremely satisfied
with the quality of the educational process. With a significance value Sig. = 0.004 < 0.01, we
can state that there is correlation between the level of satisfaction expressed by the average
grade and the number of classes missed by a student, at a confidence of 99%. The value of the
Pearson coefficient is -0.213, which shows the existence of a weak reverse connection.
Keywords: higher education, teaching quality
JEL Classification codes: I21, I23

 AN INVESTIGATION OF LONGRUN RELATIONSHIP BETWEEN ECONOMIC
             GROWTH, INVESTMENT AND EXPORT IN ROMANIA
Meşter Ioana Teodora, Simuţ Ramona Marinela

The objective of this study was to estimate the long-run relationship between economic
growth, investment and export in Romania using trimestrial data from the National Bank of
Romania as well as National Statistical Institute. The econometric methodology employed
was the Cointegration and Granger Causality test.
First, the stationarity properties of the data and the order of integration of the data were tested
using the Augmented Dickey-Fuller (ADF) test. We found that the variables were non-
stationary in levels, but stationary in first differences; that is, they are integrated of order one
(I (1)). Since we used single equation model(s), the application of Johansen multivariate
approach to cointegration was necessary to test for the long-run relationship among the
variables. The result showed the existence of a single cointegration equation between the
variables. The result of the Granger causality test shows a bidirectional relationship between
investment and economic growth and also a bidirectional relationship between investment and
exports but the result of the causation between export and growth was statistically
insignificant.

Keywords: economic growth, investment, export, Romania, VECM model
JEL Classification codes: E52, C32

   AN OVERVIEW OF HUMAN RESOURCES IN SCIENCE AND TECHNOLOGY
 (HRST) FROM RESEARCH DEVELOPMENT AND INNOVATION (RDI) SECTOR
                   DURING 1993-2009 IN ROMANIA
Nicolov Mirela

The present paper present a study done on the Human Resources in Science and Technology
(HRST) in Research Development and Innovation (RDI) sector in Romania during 1993-
2009. This paper started from the elements defined in Canberra Manual based on the
qualification and occupation. Labor force in this study refers to university level and technician
level as skill from education. These definitions from Canberra Manual for HRST were used in
                                                92
the present paper in reference to all the researchers in Romania for different areas of research
as engineering and technology sciences domains, natural and exact sciences, medical sciences,
agricultural science, social sciences and humanities. After a short presentation of the US
origin of the Human Resources in Science and Technology Management and the situation
from Europe, the present paper are dealing with the area of the Human Resources in Science
and Technology system from Romania, the sector of Research Development and Innovation.
This study is focused on the employees by categories of the activities in research,
development and innovation sector. We took into account the employees with different
categories of graduation diploma which are working in the fields of research and development
activities too. Samples data were took from Tempo online database from National Institute of
Statistics from Romania, updated database in 21 of October in 2010. Data were took for
simulations in December 2010. We try to do a simulation on the evolution of Human
Resources in Science and Technology (HRST) in Research Development and Innovation
(RDI) sector in Romania during this period (1993-2009) and we observed that real data fitting
on a regression curve of sixth degree whose coefficients were defined during this study. This
type of simulation can be good for future forecasting for Human Resources in Science and
Technology in Research Development and Innovation (RDI) sector in Romania.
The present study is part of Doctoral Grant “Implications for innovation, research and
development role in the development of Romania's economic competitiveness”, during 2010
and 2013 and having Director: Prof. Dr. Alina Badulescu in Oradea University, Faculty of
Economic Sciences.

Keywords: Human Resources, Human Development, Statistical Simulation Methods,
Employment, Higher Education and Research Institutions, Labor Force and Employment,
Size, and Structure.
JEL Classification codes: O15, C15, E24, I23, J21, J24.

   SOME STATISTICAL RESULTS REGARDING THE EVALUATION OF THE
                    QUALITY OF THE MASTER EDUCATION
Popa Irimie, Dragos Cristian, Mare Codruţa

The article emphasizes aspects regarding the evaluation of the higher education�s quality.
In certain countries, the questionnaires regarding quality of the activity of HEIs (Higher
Education Institutions) are administrated by specialized institutions led by the Ministry of
Education or the university associations. The evaluation principles derive from well-known
economic and social theories, evolving even evaluation models (see the SERVQUAL model).
As a result of the Bologna Treaty (1999), the European Union has the objective to become an
international reference concerning the higher education quality and to be more attractive than
in the present for students, professors and researchers from other regions of the world. So as to
fulfill these objectives ENQA (European Association for Quality Assurance in Higher
Education) recommends HEIs to include in their development plans regarding quality aspects
five principles described in the article. The practical study refers to the results of a
questionnaire applied to the master business students from a Romanian university. In order to
assess the level of satisfaction of students in relation to the master programme they are
involved in, a questionnaire was applied on a sample of 200 such persons. The responses were
then analyzed using multidimensional data analysis methods. Out of these, the present
research is based on multiple response analysis. In the questionnaire, students were asked to
return their level of satisfaction for different aspects related to the educational process they are
involved in. The questions were constructed as five-level Likert items. In this way was insured
a connection between answers given at each of the questions assessing the quality of the
                                                  93
programme. Only 0.2% of the answers given relate to aspects about which the students were
not satisfied at all. These answers represent 3.2% of the number of respondents. 30% of the
students were slightly satisfied, returning 57 choices of this type. As one can see, the volume
of each group increases with the level of satisfaction. The processing of the questionnaire was
made on recent economic theories concerning the quality assurance in the university
environment, which are briefly presented in the beginning of the article.

Keywords: higher education, teaching quality
JEL Classification codes: I21, I23




                                               94
             SECTION:FINANCE, BANKING AND ACCOUNTING
                                SUB-SECTION: FINANCE

 A STUDY CONCERNING THE OPPORTUNITY OF INTRODUCING THE FLAT
  TAX IN THE CASE OF THE INCOME TAX FOR INDIVIDUALS IN ROMANIA
Abrudan Leonard, Abrudan Cristina

In this paper we will try to find out if the flat tax as an income tax has answered the objectives
of the governors in the field of the public economy. We will study if the budgetary receipts
from this particular tax met the expectations of those who thought that this could be a solution
in order to energise the economic and social activity.

Keywords: flat tax, income, budgetary receipts
JEL Classification codes: H21, H24, H31

  THE “NEW ECONOMY” AND THE ENTREPRENEUR: REASSESSMENT AND
            PERSPECTIVES IN THE CONTEXT OF XXI CENTURY
Achim Monica Violeta, Mara Eugenia Ramona, Borlea Sorin Nicolae

Industrial revolutions, the progress in IT industry, the growth rate of developing new
technologies, global competition, liberalization of markets, continue to demand change,
globalization of market, economic and financial crisis are just some of the causes that have
contributed to the restoration of a new global economic with direct impact on business
entrepreneur. Changes socio-economic level paradigm is reflected both in changes to
management and organization paradigms enterprise activity in the product market, at work, at
the performance that follows the entrepreneur.
In this article we tried a summary of mutations in these paradigms, mutations that will
rearrange and reposition the business entrepreneur in the current context of a sustainable
economy, based on knowledge, so-called "new economy".

Keywords: „new economy”, sustainable development, entreprise, paradigms, changes, global
performance
JEL Classification codes: D00, D20, D30, D40, D60

TAXATION OF WAGE INCOMES OBTAINED ABROAD BY PHYSICAL PERSONS
Antonescu Mihail, Buziernescu Radu

The necessity to improve internal legislation regarding the taxation of incomes earned abroad
emerges as a consequence of the harmonization with the provisions of community legislation
and of the observance of European directives.
This paper aims to present legal provisions on Romanian taxation of wages from abroad, so
that for each case that might be encountered in practice, to find how to declare the income and
how these incomes are to be taxed.
The incomes from salaries earned abroad which are subject to taxation in Romania can be
obtained not only for the activity carried out in Romania and paid by the foreign employers,
but also for the activity carried out abroad and paid by Romanian employers. For individuals‟
incomes gained in Romania from a foreign employer, the way of taxation should be
established according to employer‟s decision. Thus, if the employer elects for withholding
                                               95
them, neither employers, nor employees, are required to further submit specific statements of
these revenues. Otherwise, employers should submit a statement every time when
modifications such as activity start/cessation takes place and employees will submit monthly
statements.
Legislation has been supplemented by the inclusion of non-resident individuals in the category
of persons who submit Form 224. As concerns the wage incomes obtained by Romanian
citizens abroad, by 2010 the corresponding box was omitted. Therefore, there were practical
uncertainties regarding the method of granting the external fiscal credit for foreign wage
incomes of a Romanian resident posted abroad.
Through the most recent legislative amendments, the provisions on granting external fiscal
credit were extended to cover wage incomes too. The possibility to refund the taxes withheld
by the Romanian employer was also taken into account, but a procedure in this regard has not
been established yet.
The purpose of this paper is to highlight the importance of tax implications entailed by the
posting of staff to other countries and the importance of compliance of internal legislation
with the conventions for the avoidance of double taxation. The clear and concise presentation
of the way of declaration and taxation of wage revenues from abroad leads to avoiding the
confusions that may arise in practice and of the double taxation of these incomes.

Keywords: wages, abroad, physical persons, taxation, declaration
JEL Classification codes: F53, H24, K34

 COMPULSORY SOCIAL CONTRIBUTIONS REGULATED BY THE TAX CODE
Antonescu Mihail, Antonescu Ligia

As of January 1st, 2004, the social contributions owed by natural persons with the capacity of
employer, as well as the individual contributions owed by their insured are managed by the
tax organs within the National Agency for Tax Administration, as they are bound, in the
exercise of their attributions to apply the provisions of the special normative acts which used
to regulate the social contributions.
As of January 1st, 2011, all the compulsory social contributions owed by the employers and
assimilated to them, and to the insured for which they are bound to calculate, withdraw and
transfer individual contributions, are regulated by the Tax Code. This measure has been
imposed as a necessity to unify the calculation bases of individual contributions and social
contributions owed by the employers. This measure also aimed at broadening the calculation
base for social contributions and perfecting the collection by the method of stoppage at
source. As a logical consequence of this measure, it was implemented that a single statement
should be submitted regarding the payment obligations of social contributions, of income tax
and the nominal records of natural persons with compulsory insurance in the social insurance
systems.
This paper aims at emphasizing the categories of natural/legal persons with the capacity of
taxpayer in the social insurance systems, and the establishment of the calculation base for
social contributions. An emphasis will be placed on the exceptions from the inclusion in the
calculation base of certain income, as the situations where the calculation base of social
contributions is capped.
For the social contributions regulated by the Tax Code, the taxpayers are, as the case may be,
resident/non-resident natural persons obtaining income from the activities carried out, natural
and legal persons who pay the income of those persons and the public institutions calculating,
detaining, paying and, as the case may be, bear, according to the statutory provisions, the
compulsory social contributions, on behalf of the insured.
                                                96
As a general rule, the calculation base for the social contributions is represented by the gross
earnings achieved from the activity carried out, namely the income achieved according to the
special statutory provisions.
The social contributions regulated by the Tax Code are the following:
- the individual contribution of social insurances and the contribution owed by the employer at
the state social insurances budget;
- the individual contribution of social health insurances and the contribution owed by the
employer at the budget of the Unique National Fund for social health insurances;
- the contribution for vacations and social health insurances and the contribution owed by the
employer at the budget of the Unique National Fund for social health insurances;
- the individual contribution at the unemployment insurance budget and the contribution owed
by the employer to the unemployment insurance budget;
- the contribution for insurance in case of labour accidents and professional diseases owed by
the employer at the state social insurances budget;
- the contribution to the Fund for granting the payment of salary receivables, owed by the
natural and legal persons who have the capacity of employer.

Keywords: social contributions, social insurances, calculation base, gross earnings, nominal
evidence
JEL Classification codes: H30, K34

 THE FINANCIAL CRISIS AND ITS IMPLICATIONS ON THE PUBLIC DEFICIT
                            OF THE EU COUNTRIES
Bǎtrâncea Ioan, Bǎtrâncea Maria, Nichita Ramona-Anca

In this paper, the authors make an analysis of the second wave of the actual World Financial
Crisis. They present the consequences of the first wave of the World Financial Crisis, namely
the Banking Crisis, on the EU countries public debts.
Keywords: analysis, crisis, public debts, EU
JEL Classification codes: G30

       THE OPPORTUNITIES AND CHALLENGES OF MICROINSURANCE
Benţe Corneliu

Microinsurance is a term increasingly used to refer to insurance characterized by low
premium and low caps or low coverage limits, sold as part of a typical risk-pooling and
marketing arrangements, and designed to service low-income people and businesses not
served by typical social or commercial insurance schemes.
As a relatively new field, few studies evaluating the impact of microinsurance projects exist.
Of these, even fewer have a rigorous methodology leading to reliable results.
Our research aimed to:
- examine the viability of microinsurance as a mechanism of risk transfer and tool for risk
management in developing countries;
- provide a state of the art analysis of microinsurance for a better understanding of currently
operational microinsurance schemes;
- reflect on the opportunities and challenges of microinsurance in developing countries,
highlighting both the potential benefits and limitations of microinsurance as an instrument for
transferring risk;


                                              97
- consider the interests and perspectives of different stakeholders and the incentives and
disincentives for participating and investing in a micro-insurance scheme;
- enhance dialogue and collaboration on this topic between and within the commercial
insurance sector and the disaster risk reduction communities;
- assess the opportunity of introducing microinsurance in Romania.
Reflecting on the opportunities and challenges of introducing microinsurance in Romania,
there is absolutely necessary to understand both the supply side (current insurance market)
and the demand side (risks faced by low-income persons and the coping strategies used to
manage these risks). The majority of the primary research was conducted on-site in Romania,
in Oradea and its environs, during the month of December 2010. Qualitative research
techniques were utilized, including focus group discussions (FGD) and guided individual
interviews with members of both the public and private sector, as well as with international
non-governmental organizations, such as the World Bank, and IMF.
The research revealed the main risks faced by low-income households, and the fact that
microinsurance is a mostly unknown concept in Romania. There is a clear need and demand
for microinsurance in Romania. The potential market is estimated to include approximately
4.3 million persons in 2008.

Keywords: microinsurance, microfinance, low-income, direct sales, performance
JEL Classification codes: G22

         THE LEGAL INDEBTEDNESS CAPACITY OF ROMANIAN LOCAL
        GOVERNMENTS – THEORETICAL AND EMPIRICAL EVIDENCES
Bilan Irina, Oprea Florin

The factual, not only formal capacity of local governments to appeal to borrowed resources is,
considering the current conditions, a prerequisite for ensuring economic and social
development of local communities. In this paper we intend to position the main theoretical
and empirical evidences on local governments‟ indebtedness capacity, mainly focusing on its
sizing according to Romanian regulatory framework. With respect to previous research, the
issue approached is one of great interest as it has not been, in the Romanian literature on local
public finances, subject to a separate analysis of proportions.
The undertaken analysis comprises a quantitative dimension, based on processed data from
the consolidated general budget of Romanian local governments for 2007-2009, in permanent
conjunction with monitoring and analysis of the involved qualitative aspects. To ensure the
relevance of the research results, the analysis undertaken refers to the legal framework in
function throughout the considered period of time, without involving the legislative changes
operated in mid-2010.
The main conclusions drawn from our analysis indicate that, considering the current
Romanian socio-economic environment, under the impact of specific factors of different
nature, the legal indebtedness capacity is far from being well valued, thus bringing its benefits
to local communities development. This conclusion is valid from a global perspective as well
as for different types of local communities. This appears to be inconsistent with the
permanently claimed need to fund important local public investments, mainly in
infrastructure, indicating, despite the high legal indebtedness capacity, the lack of factual
access to borrowed resources.
We suggest, therefore, to introduce the concept of effective indebtedness capacity, the result
of a particularized correlation for different local governments between legal indebtedness
capacity and the manifestation of several factors with specific action and we intend to
contribute, by future research, to its measurement.
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Keywords: legal indebtedness capacity, effective indebtedness capacity, local governments,
local public debt, local autonomy
JEL Classification codes: H74

 SUBSTANTIATION OF THE PUBLIC DEBT SUSTAINABILITY USING KALMAN
                                      FILTER
Boloş Marcel, Otgon Cristian, Pop Razvan

Global economic conditions have pushed many countries into the delicate situation of
contracting foreign loans, leading overnight at alarming volumes of public debt. The need for
control and relevant analysis for the sustainability of a country's public debt has led us to use
the Kalman filter in predicting future values of the key indicators of public debt. The
development of a mathematical model of analysis for public services and the budget deficit
was necessary to objectively assess the level of the public debt sustainability.Knowing future
values of the public debt or the future evolutions of the revenues for the operational budget,
offers the posibility of a better handling of the operational expenditures and finally a better
balance for the public budget deficit.Using the mathematical mechanism of Kalman filters
implemented in Matlab programming language, we generated the estimated future values of
the proposed model proposed and key indicators, the results confirming the fears of a low
public debt sustainability for Romania.We predicted the future values for the debt service, the
public external debt and the operational public revenues,expenditures and deficit, and
compared them, to obtain an image of the future evolution and position of the sustainability of
the public debt. The work in this paper is an innovative one for the public science sector, and
the results obtained are promising for future researches. The values estimated by the Kalman
filter are an orientation for the future public policies, and indicate a rather stable but negative
evolution for the public debt service. The sustainability of the public debt depends on the
decisions taken for the correction of the estimated values, in changing the negative evolution
of the budgetary indicators into a positive one.Taking all this into consideration we will
conclude that the mathematical mecanism of the Kalman filters offers valuable informations
for Government and future research should be oriented to develop it‟s returned results.

Keywords: Kalman filter, debt, sustainability, deficit, prediction
JEL Classification codes: H63, H68, C02, C53, C88

USING SPLINE FUNCTIONS FOR THE SUBSTANTIATION OF TAX POLICIES BY
                             LOCAL AUTHORITIES
Boloş Marcel, Pop Razvan, Otgon Cristian

The paper aims to approach innovative financial instruments for the management of public
resources. In the category of these innovative tools have been included polynomial spline
functions used for budgetary sizing in the substantiating of fiscal and budgetary policies. In
order to use polynomial spline functions there have been made a number of steps consisted in
the establishment of nodes, the calculation of specific coefficients corresponding to the spline
functions, development and determination of errors of approximation. Also in this paper was
done extrapolation of series of property tax data using polynomial spline functions of order I.
For spline impelementation were taken two series of data, one reffering to property tax as a
resultative variable and the second one reffering to building tax, resulting a correlation
                                                99
indicator R=0,95. Moreover the calculation of spline functions are easy to solve and due to
small errors of approximation have a great power of predictibility, much better than using
ordinary least squares method.
In order to realise the research there have been used as methods of research several steps,
namely observation, series of data construction and processing the data with spline functions.
The data construction is a daily series gathered from the budget account, reffering to building
tax and property tax. The added value of this paper is given by the possibility of avoiding
deficits by using spline functions as innovative instruments in the publlic finance, the original
contribution is made by the average of splines resulted from the series of data.
The research results lead to conclusion that the polynomial spline functions are recommended
to form the elaboration of fiscal and budgetary policies, due to relatively small errors obtained
in the extrapolation of economic processes and phenomena.
Future research directions are taking in consideration to study the polynomial spline functions
of second-order, third-order, Hermite spline and cubic splines of class C2 .

Keywords: fiscal policy, budget deficits, spline functions, budget justification, debt crisis
JEL Classification codes: C29, H72

  INCREASE IN THE ROLE OF THE FINANCIAL SYNTHESIS REPORTS FOR
             ACCESSION OF THE EUROPEAN STRUCTURAL FUNDS
Chirilă Emil, Droj Laurenţiu

European integration is supported through important financial resources in order to sustain the
investment effort for aligning the business infrastructure and increase in the business
competitiveness in order to fulfill the European Union standards.
The financial management, a basic component of the general management, has as scope to
realize complex financial analysis in order to substantiate the decisions for investments and
financing which should ensure the maximization of results, ensuring also the elaboration of
the project budget as an essential document in the identification of the needs for resources and
for obtaining the non-reimbursable financial sources.
An essential role in the investment decision making, having as support European funding, is
realized by the financial-accounting reporting documents such as balance sheet, profit and loss
account, table of the treasury flows, which together with a realistic established actualization
rate ensures the relevance and efficiency of the financial indicators: Net present Value(NPV),
Internal Rate of Return(IRR), the investment recovery period, the benefit/cost ratio.
This study has as its goal to realize a critical analysis over the main simulation methods and
techniques for forecasting annual return based on its growth rate, which should ensure the
success of the implementation and operation of an investment realized through European
structural funds respecting also the requirements for minimization of risks. In this research it
is shown the importance of proper generation/modeling of the annual turnover in an
investment project. Several methods were presented and case study was realized. Since the
annual turnover constitutes the basis for the entire financial analysis it is very important that a
realistic growth rate is used. Otherwise the provisions within the financial analysis of the
investment (including CBA), the project implementation strategy and later the plan for the
utilization of the newly realized investment might prove difficult to be fulfilled.

Keywords: Structural funds, Financial Statements, Annual Turnover, Annual Growth rate
JEL Classification codes: G30, O16, G34, G38


                                               100
 THE FINANCIAL EQUILIBRIUM AT THE MICROECONOMIC LEVEL IN THE
                 CONTEXT OF ECONOMIC CRISIS
Chirilă Emil

The world economic and financial crisis which started in 2008 and the cyclic character of the
economic crisis specific to capitalist economies, with devastating influences over the
Romanian companies which were not quite adapted to the requirements of a highly
competitive economy, imposes a re-evaluation of the definition and management for the
financial equilibrium mechanisms.
Starting from the place and role of the productive enterprises, as a central element of the
national financial system, the management of the financial equilibrium gains a significant role
representing a major and permanent consideration in order to adopt measures of financial
policies which should ensure the recapitalizing of the enterprises.
The present study proposes to define the concept of financial equilibrium of the relevant forms
for determination and evaluation of the evolution at the micro-economic level before and in
the period of the financial-economic crisis. Evaluation of the evolution in the management of
the financial equilibrium raises the problem of the relevance of the yearly financial reporting
documents in the determination and evaluation of the following financial indicators: working
capital, the need for working capital, net treasury, the necessity and role of the table of
financing and the realization of a functional relation with the table regarding the treasury flow.
The operative management of the financial equilibrium imposes a superior valorisation of the
liquidity, solvability and profitability indicators in order to evaluate the present and future
tendencies.

Keywords: Financial equilibrium, Net treasury, Table of financing, Treasury flow, Economic
Crisis
JEL Classification codes: G30, G32, G34

THE IMPORTANCE OF THE JURIST AND ECONOMIST GHEORGHE N. LEON IN
                  THE EVOLUTION OF FINANCIAL SCIENCE
Cirmaciu Diana, Popa Carmen

The economical-financial problems have always constituted a challenge far all the decisional
factors at the state level and not only, thus the financial sciences – which also aim to regulate
the relationships to create, assign and use the financial funds of the state and of the public
institutions, destined to satisfy the social-economical needs of the society – recorded a great
doctrinal interest.
Thus, a series of jurists and economists had understand the necessity and opportunity of
knowledge in the domain of financial science, of the financial law, taking into consideration
the fact that the difficulties which they have met at those times obliged them to take the
responsibility to make every simple citizen and every person with political or administrative
responsibility by the state understand the problems of public administration.
In approaching the given subject I have chosen to use some of the methods of scientific
research, respectively: the historical method (financial science being presented succinct
through the process of its evolution along the years), interpretation methods and a
combination of quality and quantity approach, namely the method of analyzing archive
documents and the studies of professor Gheorghe N. Leon.
In these contexts have asserted and developed himself in the university and political
environment, Gheorghe N. Leon, having a rich activity of intellectual creation, approaching in
his works the complex aspects of the science of financial law. Thus, starting with the rules and
                                                101
principles of this domain, Gheorghe N. Leon had realized a veritable incursion in the history
of finances and in the theory of taxation, public and budgetary credit.
Analyzing a part of his scientific works, we can affirm that a personality with such a complex
structure, like Gheorghe N. Leon is hard to define, but surely, through the prism of his works
and through his long-lasting and rich scientific activity, his name can be mentioned among the
personalities of the academic education in the domain of financial science.
At the same time we can affirm that in this actual period, when public finances represent an
essential component of social-economical life of any nation, the scientific process of the most
economists, the process of approaching notions and concepts specific to this domain was and
remains fully justified.

Keywords: financial science, economical-financial politics, inter-war period, legislation,
financial problematic
JEL Classification codes: Economic History N00-General

         WEATHER INDEX- THE BASIS OF WEATHER DERIVATIVES
Ciumaş Cristina, Botoş Horia Mircea

This paper approaches the subject of Weather Derivatives, more exactly their basic element
the weather index. The weather index has two forms, the Heating Degree Day (HDD) and the
Cooling Degree Day (CDD). We will try to explain their origin, use and the relationship
between the two forms of the index.
In our research we started from the analysis of the weather derivatives and what they are
based on. After finding out about weather index, we were interested in understanding exactly
how they work and how they influence the value of the contract. On the national level the
research in the field is scares, but foreign materials available.
The study for this paper was based firstly on reading about Weather Derivative, and then
going in the meteorogical field and determining the way by which the indices were
determined. After this, we went to the field with interest in the indices, such as the energy and
gas industries, and figured out how they determined the weather index. For the examples we
obtained data from the weather index database, and calculated the value for the period. The
study is made on a period of five years, in 8 cities of the European Union.
The result of this research is that we can now understand better the importance of the way the
indices work and how they influence the value of the Weather Derivatives.
This research has an implication on the field of insurance, because of the fact that weather
derivative are at the convergence point of the stock markets and the insurance market.
The originality of the paper comes from the personal touch given to the theoretical aspect and
through the analysis of the HDD and CDD index in order to show their general behaviour and
relationship.

Keywords: Weather derivatives, Weather Index, HDD, CDD
JEL Classification codes: G22




                                              102
FISCAL DECENTRALIZATION AND FISCAL AUTONOMY IN THE EU MEMBER
                                    STATES
Crâşneac Alexandru, Heteş Gavra Roxana, Miru Oana

In the process of fiscal decentralization sub-central governments have gained access to
different fiscal resources, but the autonomy in setting the taxes is a key issue when analyzing
the degree of decentralization. In this paper we calculated an index of tax autonomy for the
EU Member States based on the OECD methodology of classification of sub-central taxes
according to the degree of control over these taxes. We have shown that the design of
intergovernmental fiscal relations is significantly different among the Member States, and
taking into consideration the discretion over sub-national taxes provides a valuable insight on
the fiscal decentralization design.

Keywords: fiscal decentralization, tax autonomy, intergovernmental fiscal relations
JEL Classification codes: H71, H77

    STANDING’S PLACE AND ROLE IN THE FINANCIAL ANALYSIS OF THE
                               ECONOMIC ENTITY
Csegedi Sandor, Bǎtrâncea Larissa-Margareta, Bejenaru Aurel

In this paper, the authors present the methods of determining the company's financial
standing, based on its financial reporting. Hence, in the debate are included concepts
commonly used in financial literature and banking practice such as credit worthiness, credit
rating and standing.

Keywords: financial standing, creditworthiness, rating, credit-standing
JEL Classification codes: G32

         APPROACHES REGARDING THE TAX EVASION IN ROMANIA
David Delia, Pojar Daniela

In any economy, the main purpose of the tax system is to provide a solid and stable source of
government revenue. On the other hand, a tax system should aim to enable the country's
economic development and support disadvantaged groups. Achieving these objectives should
be accompanied by a continuous preoccupation of the tax administration to increase its
efficiency. In this process, a particularly important factor consists in reducing the tax evasion,
given that it contributes to a diminution in terms of efficiency within the state structures, while
being a factor of corruption. Over the past 20 years, in Romania, the presence of tax evasion
has reached relatively large dimensions in both the economic area and the underground
economy, where the phenomenon is widespread. Taking the road from the particular to the
general, distinguishing the legal tax evasion from the fraudulent one, this paper aims to
answer the question: Why is it necessary to control the tax evasion phenomenon and how to
do this? This question aims at achieving the following objectives: distinguishing between the
legal and the fraudulent tax evasion and the methods used by taxpayers to circumvent the tax
obligations.
First of all, reaching the objectives was assured by consulting a significant amount of work,
that is to say publications of scientific claim, while making use of analysis, induction and
deduction, significant volume of quantitative information was examined and submitted to
professional reasoning. In literature, there are many Romanian and foreign authors reporting
                                               103
on the tax evasion issue while as far as specialised magazines are concerned, there are just a
few discussing about the social protection issues or about the European experience in the tax
adjustment whereby the states have gone over the years, such as: the Romanian Economic
Journal, the Annals of the American Academy of Political and Social Review of Social
Innovation and other authors such as Saguna & Tutungiu (1995), M. Duverger (1965),
Carmen Corduneanu (1998), Hoanțã (2000). Research results and general conclusions on the
issue of tax evasion in Romania are listed at the end of the paper.

Keywords: fiscality, tax evasion, blak labor, romanian taxpayer, the State
JEL Classification codes: H26, K31, K36

      A BEHAVIORAL APPROACH TO THE GLOBAL FINANCIAL CRISIS
Dedu Vasile, Turcan Ciprian Sebastian, Turcan Radu

The purpose of this paper is to reflect the behavioral biases that led to this global financial
crisis. The paper presents briefly the real causes of the crisis (structural and cyclical factors)
and puts a greater accent on the behavioral factors. The authors considered to structure the
paper in three main pillars: behavioral factors, the collapse of ethical behavior and the role of
behavioral finance in studying, regulating and assessment financial risks. The first pillar
consists in a brief presentation of the behavioral factors such as: optimism and wishful
thinking, overconfidence, greed, regret, pessimism, passing the responsibility, herding -
groupthink, anchoring, representativeness biases, informational cascades and “this time is
different” syndrome. The second pillar of the paper presents the collapse of ethical behavior
that led to the global financial crisis: predatory lending practices, inappropriate compensation
schemes, rating agencies behavior, corporate governance reforms and financial institutions
opacity in their reporting. The third pillar presents the mismanagement of risk and regulations
that led us into this global mess. The paper concludes with the need of integrating biases of
human behavior into regulations in order to make them more effective and people become less
financially vulnerable.

Keywords: behavioral finance, irrationality, regulation, crisis
JEL Classification codes: G01, G15, G20, G28, D23, D82

       THE VALUE ADDED TAX AND THE EVASION CHAIN OF INTRA-
                           COMMUNITARIAN VAT
Deliman Eugen, Herbei Marius, Bene Gheorghe Florin, Dumiter Florin Cornel

The relationship IRS – taxpayer runs the risk of turning into a psychological war in which,
however, given the positions held, the IRS is by far on a favorable footing. Between the
apparently excessively formal position held by the IRS, which seems to conceal behind the
laws, and the sometimes forced interpretation of the laws, by the taxpayer, there are the courts
of law, also disturbed by the legislative changes which appear to have entered a perpetual
motion.
The objective of the fiscal administration regarding the value added tax is to combat tax
evasion and fraud. It is very important to combat evasion in the VAT field because it
represents the indirect tax of the largest share in the consolidated general budget. VAT
evasion represents the intention of not paying the tax, withholding or not declaring it, or
requesting its refund which would not be fit, due to the exaggeration of the deductible amount
of the VAT. The essential aim of the IRS inspector is to verify the correctness of the declared
                                               104
amount of the value added tax. It should also be observed whether the incorrectness is
deliberate or whether it was due to misunderstanding, carelessness or the ignorance of the
payer. In all cases judgment is necessary, as for the cases of negligence the amount to be paid
must be corrected and accompanied by applying fines and / or penalties, and in the cases of
intended fraud legal actions are to be applied in order to obtain a conviction. Deceitful
deductions represent other methods for tax evasion and are undertaken based on fake invoices,
invoices often used several times for deduction, or invoices related to purchases that have
never been made. Thus there are examples of economic agents who have practiced the right to
deduct the VAT due to the acquisition of goods which consisted in the property of other
economic agents. In other cases noticed was the deduction of VAT on goods or services that
were not included in the activities of the economic agent who purchased them. Registration
errors seem innocent, but they occur frequently and have a high value; for example, some
economic agents do not calculate the Value Added Tax at the receipt of advanced payments
from customers but when the goods are delivered.

Keywords: Value added tax, intra-communitarian acquisitions, IRS inspector, deduction,
taxpayer
JEL Classification codes: G2, H2, H3

    DETERMINATION OF RESIDUAL VALUE WITHIN THE COST BENEFIT
   ANALYSIS FOR THE PROJECTS FINANCED BY THE EUROPEAN UNION
Droj Laurenţiu

This paper will be later used within the Doctoral thesis: “The Mechanism of Financing
Investment Projects by Usage of European Structural Funds”, which is currently under
development at the University Babeș Bolyai Cluj Napoca, Faculty of Economics and Business
Management, under the coordination of the prof. univ. dr. Ioan Trenca. An increasing debate
is rising recently between the academic community, the business community, the private
lending institutions(banks, investment funds, etc.) and the officials of the Romanian
Government and of the European Union regarding the proposed method for calculation of the
residual value in the European financed investment projects. Several methods of calculation of
the Residual Value were taken into consideration and contested by different parties in order to
prepare and to submit financial analysis studies for investment projects proposed to be
financed within the European Regional Development Fund(ERDF). In this context, the
present paper proposes to address the three main methods of calculation of the residual value
and later to study its impact over the indicators, especially over the Internal Rate of Return,
obtained in the financial analysis for an investment project proposed by a Romanian medium
sized company. In order to establish the proper method which should be used for selection and
calculation of the residual value previously published studies and official documentations
were analyzed. The main methods for calculation of the residual values were identified as
being the following: A. the residual market value of fixed assets, as if it were to be sold, B.
accounting economic depreciation formula and C. by using the net present value of the cash
flows. Based on these methods the research model was elaborated, and using the financial data
of the proposed infrastructure investment was created a case study. According to the realized
study a pattern was established for proper determination of residual value and for
determination of IRR and methods A and C were proposed to be used. This paper tries to
analyze a specific problem of the Romanian enterprises which access European funding, so it
can be further used to improve the current methodology of the ERDF programme in Romania:
Sectorial Operational Programme “Increase of Economic Competitiveness”.

                                             105
Keywords: Cost benefit Analysis, Residual value, IRR, Investment, Structural Funds,
Valuation
JEL Classification codes: G30, O16, G32, G38, F35, C63, C12

           OPTIMIZING LOCAL BUDGET BALANCING IN ROMANIA
Gyorgy Attila, Gyorgy Adina Cristina

The importance of the local public finance is growing in accordance with the increasing
proportion of the decentralization process. The mechanism of resource allocation, and
especially the allocation criteria used, constitutes subjects of debate. Our objective pursued is
to assess whether the avoidance of the first step for balancing the allocation of funds can
provide enhanced fairness in balancing the local budgets across the country. Local budgets in
Romania receive significant resources from the state budget in the form of amounts and
quotas distributed from certain taxes, which are revenues for the state budget. Some of these
amounts are designed to balance the local budgets. The distribution of funds from the state
budget to the local budgets requires two steps. Firstly, the amounts are divided by county,
secondly, these amounts are directed within the county especially towards localities which
have a lower financial standing. Given the significant disparities between counties, we believe
that this mechanism does not ensure fairness in the allocation because the funds distributed
according to the first step may not use fair criteria to meet the requirements for balanced local
budgets. Therefore, we intend to simulate a balanced allocation of national funds for
eliminating the first step that produces the most significant inequities. Direct application of the
second step of allocation, with its two phases, will provide more funds serving those local
administrative units for the income tax per capita is lower than the national average.
Comparing the values allocated for the year 2011 with those obtained in the simulation we
will examine changes that occur after the application of this method which seems to be more
equitable and appropriate. This work was supported by CNCSIS–UEFISCSU, project number
PNII–IDEI 1780/2008

Keywords: local budget, budgetary resources, budget balancing, resource repartition
JEL Classification codes: H71

   EFFECTIVE CORPORATE INCOME TAX RATE IN ROMANIA: A MICRO-
                 BACKWARD LOOKING APPROACH
Lazăr Sebastian

Within the framework of micro-backward looking methodology, the paper computes the
effective corporate income tax rate for Bucharest Stock Exchange non-financial companies for
2000 – 2009 period, using data from companies financial reports. We find that effective tax
rate computed as profit tax/pre-tax income ratio was below the statutory tax rate, throughout
the period, except for the year 2009 (when an alternative minimum tax was introduced) and
the differences have diminished since the flat tax was adopted (2005). When applying a
correlation analysis, we find that the difference between this effective tax rate and the
statutory tax rate presents a strong negative correlation with the return on assets ratio (ROA).
Also, we have find that commerce is enjoying the most favourable tax regime, while energy is
the most heavily taxed.

Keywords: effective corporate income tax rate, backward looking methodology
JEL Classification codes: H22, H25
                                               106
         VALUE ADDED TAX IN THE ECONOMIC CRISIS CONTEXT
Mara Eugenia Ramona, Cuceu Ionuţ, Mara Cristian

This article tries to present the major aspects concerning the value added tax in the context of
economic crisis in European Union countries and Romania. The paper realizes an analysis of
the impact of economic crises on VAT in the European space underlining the current situation
when the revenues from VAT represent a valuable source of financing the public
expenditures. In Romania the economic crises has led to increasing o f VAT rate from 19% to
24%. This measure is an important fiscal measure for the state budget and this study tries to
reflect the impact of this VAT rate increase on the public revenues and consumption.

Keywords: value added tax, economic crises, tax revenues
JEL Classification codes: H23, H3, H22, G18.

THE USE OF EXPERT SYSTEMS IN AGRICULTURAL INSURANCE. NECESSITY
                                   VS. REALITY
Moisuc Diana - Aderina, Nan Anca - Petruţa

The topic was chosen due to the fact that, although agricultural insurance is particularly
needed in agriculture to achieve performance, its achievements are still modest. The
importance of this research is in that it tackles a very important sector of the economy,
agriculture, and puts forward an immediate viable solution that meets the current needs of
farmers. The contribution of the authors is their innovative solution, namely the proposition to
implement expert systems in agricultural insurance, as a means of promoting insurance
products which, although they are not currently granted the due importance, have started to be
acknowledged increasingly in recent times. The interest in this type of insurance is due to the
recent climate changes whose effects are extremely damaging, and to the need to improve
agricultural competitiveness on the common market as a result of trade liberalization in
agricultural products.
The scientific literature in the field of expert systems highlights the benefits of implementing
systems in all areas of economic and social activity, including insurance and agriculture, but it
does not deal separately with the issue of agricultural insurance, despite its importance in the
development of agriculture. This confirms the topicality of the study. Regarding the scientific
methodology, in order to easily understand how expert systems work also by those who are
not familiar with the field, we opted to present the stages of preparation of the system,
namely: (a) preparing the knowledge database, (2) preparing the charts and (3) system
encoding and assessment.
The research results, at the conceptual level, confirm the need for agricultural insurance expert
systems because of the benefits it would create (ease of use, informing farmers about the
existence and importance of agricultural insurance, increasing demand for such type of
insurance, which would also lead to the development of agriculture, to the creation of
insurance products tailored to farmers‟ needs) and refers to the authorities that should be
appointed to implement these systems.

Keywords: agricultural insurance, expert systems, agriculture
JEL Classification codes: C80, C88, G22, Q14.



                                              107
                     PRINCIPLES AND PROCEDURES ON FISCAL
Morar Ioan Dan

Fiscal science advertise in most analytical situations, while the principles reiterated by
specialists in the field in various specialized works
The two components of taxation, the tax system relating to the theoretical and the practical
procedures relating to tax are marked by frequent references and invocations of the underlying
principles to tax.
This paper attempts a return on equity fiscal general vision as a principle often invoked and
used to justify tax policies, but so often violated the laws fiscality .
Also want to emphasize the importance of devising procedures to ensure fiscal equitable
treatment of taxpayers.
Specific approach of this paper is based on the notion that tax equity is based on equality
before tax and social policies of the executive that would be more effective than using the
other tax instruments.
I want to emphasize that if the scientific approach to justify the unequal treatment of the tax
law is based on the various social problems of the taxpayers, then deviates from the issue of
tax fairness justification explaining the need to promote social policies usually more attractive
to taxpayers.
Modern tax techniques are believed to be promoted especially in order to ensure an increasing
level of high efficiency at the expense of the taxpayers obligations to ensure equality before
the law tax.
On the other hand, tax inequities reaction generates multiple recipients from the first budget
plan, but finalities unfair measures can not quantify and no timeline for the reaction, usually
not known.
But while statistics show fluctuations in budgetary revenues and often find in literature
reviews and analysis relevant to a connection between changes in government policies, budget
execution and outcome.
The effects of inequality on tax on tax procedures and budgetary revenues are difficult to
quantify and is among others to this work.
Providing tax equity without combining it with the principles of discrimination and neutrality
in the tax to ensure an objective of fiscal policy.

Keywords: Fiscal science ,the principles of taxation, procedures,taxpayers,budgetary,
revenues
JEL Classification codes: H-20

THE EVOLUTION OF FISCAL INDICATORS IN THE LAST YEARSIN ROMANIA
Morar Ioan Dan, Sabau - Popa Claudia Diana, Kulcsar Edina

Tax revenues are an important part of budget revenues, and their structure represent the mirror
of government's fiscal policy. Also their level and structure reflects the evolution of the
economy in general. The evolution of tax revenues has been influenced by the financial crisis
of this period. The tax revenue structure in Romania is characterized by relatively high share
of indirect taxes revenues in comparison with another European Union states, where the share
of revenues from direct, indirect taxes and social contribution is relatively close.
Government expenditure is vital for the economy especially if they are focused on productive
areas. They are the engine of economic developments and plays an important role in raising
the standard of living of population in a state. In the last years, the growth rate of public
expenditure was higher than the trend of tax revenues increase. Sizing revenue and public
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expenditure is essential for achieving the budget balance target and to meet the criterion
stipulated in the Stability and Growth Pact. According to the Pact, the budget deficit may not
exceed 3% of GDP. This development asymmetric led to increased deficits in the last years.
The high level of structural deficit has canceled an initiative to tax relaxation in this recession
period. The need for fiscal consolidation has been paramount in the context of chronic deficit
and difficulties faced in financing it. The opportune solution to finance the high public deficit
and to achieve the objective of financial stability of the economy was contracting of public
debt from International Monetary Fund. Other measures to reduce the deficit were the
reduction of public expenditure and increasing tax revenues.
We propose in this paper to analyze the evolution of fiscal indicators in comparison with the
evolution of macroeconomic indicators to capture the reaction of taxpayers and economic
environment at measures adopted.

Keywords: fiscal, tax, fiscal revenues, budget, financial crisis
JEL Classification codes: E-62

             NOKIA PERFORMANCE AND CASH FLOW ANALYSIS
Moscviciov Andrei

In this paper the author presents the ways to analyze the performance of the company Nokia.
Thus based on a system of indicators are highlighted the key situations that emphasize
performance, namely: operational activity, financial balance, cash flows.

Keywords: net sales, gross profit, ROE, ROA
JEL Classification codes: G32

              PUBLIC DEBT SUSTAINABILITY ANALYSIS: EU CASE
Nicolescu Cristina, Pirtea Marilen, Boţoc Claudiu

The global crisis has caused a serious fiscal deterioration that leaves the world economy with
serious challenges. In many developed markets as well as in a few emerging markets
(Emerging markets) public finances have already become, or are at least at risk of becoming,
unsustainable.
Commonly, public debt sustainability is defined as a sovereign‟s ability to service debt
without large adjustments to public revenue and/or expenditure and without ever-increasing
public-debt-to-GDP ratios. Hence, this definition refers to both a country's ability and
willingness to repay its debt. We also have to add the fact that there isn`t an universal
accepted definition of fiscal or debt sustainability.
In light of the growing public debt, the issue of debt sustainability has increasingly attracted
attention. In this paper we analyse public debt sustainability scenario in EU economies. At
least half of the EU countries will have to implement stringent fiscal consolidation
programmes over the next few years in order to prevent already high public-debt-to-GDP
ratios from a further significant rise, also the case of Romania. However, drastic fiscal policy
adjustment may be not feasible in the short term and hence public debt is likely to grow
further.
In some scenarios the public-debt-to-GDP ratio is predicted to soar to 133% in 2020, from just
over 100% in 2010. By contrast, nearly all EM countries, including major economies, appear
to be well positioned to stabilise or even outgrow their current debt ratios without drastic
fiscal adjustment.
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Institutional improvements may help European countries to maintain fiscal credibility. In light
of the future fiscal challenges, many European governments may introduce new or more
effective national debt limits, similar to those put in place in the past with good results by
some Emerging markets. Such institutional reforms could help to insulate fiscal policies from
political pressure and to anchor financial market expectations.

Keywords: public debt, fiscal policy, fiscal sustainability, GDP, fiscal consolidation
JEL Classification codes: H63, H30, H69, H60, H59

 PUBLIC EXPENDITURE POLICY IN THE CONTEXT OF ECONOMIC CRISIS -
                        CHALLENGES AND IMPLICATIONS
Oprea Florin, Petrişor Mihai - Bogdan

Public spending is a key component for both public finances and government financial policy.
In this situation, government expenditures are made in direct relation with the results of
governance with economic and financial crises and global social welfare of the nation. From
this perspective, our article aims to highlight the correlation between public expenditure and
budgetary financial and economic crisis and, also, state government responses, anticipating
their impact on medium and long term. Also, in the context of the crisis and the concomitent
lack of public revenue, we identify the pillars on which to base the budget reduction in public
expenditure. The implications of the economic crisis in Romania are analyzed along with
proposed measures to be followed by the Government through budgetary fiscal strategy. In
relation to the purpose and objectives of the research, documentation was made both in terms
of bibliographic resources and the plan of legislative documents and quantitative reporting.
We believe that the issue of increasing allocative efficiency of resources is vital to counter the
current crisis, but also to maximize the positive effects of public interventions in general and
from another state, we consider that state and, consequently, public expenditure budget which
should be used to replace the market, can not be regarded as some suggest to be founded and
we suggest a line for developed countries. This work was supported by the grant “Post-
doctoral studies in Economics: program for continuous forming of elite researchers –
SPODE―, contract POSDRU/89/1.5/S/61755, project financed by the European Social
Fund, by the Operational Sectorial Program Development of Human Resources 2007-2013.

Keywords: public expenditures, public debt, tax strategies, economic crises
JEL Classification codes: H50 - General H53 - Government Expenditures and Welfare
Programs

           FINANCIAL CONTROL EFFICIENCY IN ECONOMIC ENTITIES
Pop Ioan

In this paper the author presents ways to address issues of financial control efficiency of
economic entities through tax administration of budgetary revenues.

Keywords: financial control, fiscal control, economic efficiency
JEL Classification codes: G32




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       TAX CONTROL - PREVENTION AND CONTROL OF TAX EVASION
Pop Ioan

In this paper the author highlights the ways of preventing and combating tax evasion. For this
purpose are highlighted the ways Tax Administration acts in the Romanian business
environment to attract additional funds to the state budget.

Keywords: fiscal control, tax evasion, economic effects
JEL Classification codes: G32

VIEWS ON THE CONCEPT OF FINANCIAL POLICY AND ITS MANIFESTATION
Pop Mugurel Gabriel Sorin

The present study proposes an analysis of the main views expressed in the literature on
financial policy, as well as the shaping of our own, clear and comprehensive vision, regarding
the content of this concept.
The main objective of our research is to clarify the content of the financial policy concept, so
that this policy may be effectively used in the service of overall development of our economy
and society. Reaching such an objective has implied the research of a vast existing literature
on the field, in the country as well as abroad, observing a vast variety of understandings
regarding the meaning of the concept itself, the objectives stated within the financial policy as
well as the main approaches (ways to follow) for achieving these objectives.
Of course the achievement of such a research is not possible without a meaningful analysis of
the principles expressed in this field‟s literature. In relation to this matter we can see that each
author has his own conception regarding the subject under review. These expressed
conceptions are, in turn, based on previous research in the analyzed area. The accelerated
dynamism proved by the evolution of our economy and society in this stage shows us that
through the financial policy, outlined both at a micro and a macroeconomic level, clear
fundamental objectives must be formulated that should be possible to achieve by partial
objectives (sequential), practical methods and procedures being adapted to them.
Our research is at the present stage, a theoretical and methodological one. It is based on the
comparisons we make between the views expressed in the studies of different authors, trying
to draw the “red line” of these views and observing the fundamental meaning given to the
financial policy concept. We express our conviction that a clear conceptual expression of the
financial policy notion comes to the rescue of the general management (macro and
microeconomic) facilitating the process of adopting the most appropriate decisions for
achieving the objectives set by the financial policy.
The result of our research is represented by the formulation of a clear and comprehensive
concept concerning the financial policy.
Removing ambiguities in formulating the concept under review as well as in the means of
achieving the formulated objectives is for the benefit of achieving the monetary, financial and
budgetary balance at a macroeconomic level, which is the foundation for promoting some
beneficial financial policies at a microeconomic level.

Keywords: financial policy, financial policy elements, investment policy, financing policy,
dividend policy, evolution
JEL Classification codes: G 31, G 32



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           SMES' SECTOR ACCESS TO FINANCE: AN OVERVIEW
Roman Angela

Through their contribution to the creation of added value and new jobs, the small and medium
enterprises (SMEs) have a significant role in the economic and social development of a
country. However, these enterprises are facing numerous obstacles that limit their
performance, growth and development. Among the difficulties faced by SMEs, the access to
finance is often reported as a major obstacle to the deployment and expansion of their activity.
The access to finance is crucial for efficient allocation of financial resources and
entrepreneurial development, which explains the major interest given to this subject both by
the academic literature and the policy makers.
The paper aims to highlight the difficulties faced by SMEs in securing financing resources,
emphasizing the differences between countries and also between SMEs and large enterprises.
Knowing the difficulties in SMEs financing is essential for policy makers in order to design
and implement appropriate measures, which will help to improve the access to financing for
these enterprises. Thus, another issue addressed, synthetically, in this paper aims the measures
taken by public authorities in order to support the access to financing for SMEs.
The research methodology used in this paper starts with a literature review in order to
highlight the importance of the subject addressed in our research.
The analysis conducted in this paper is based on data and statistics provided mainly by the
World Bank surveys, by certain empirical studies and by the National Council of Small and
Medium Sized Private Enterprises in Romania.
Based on the methodology used, the paper indicates the difficulties in SMEs financing and the
crucial importance of enhancing the public authorities concerns regarding their alleviation,
especially by adopting measures focused on increasing financial development, which would
ensure greater availability of financing for businesses and thus economic growth.
The limited availability and even lack of statistical data regarding the SMEs financing
situation from various countries, including Romania, impose certain limits to the researches in
the field, which can be overcome as policy makers realize the vital importance of developing
and monitoring specific indicators regarding the financing of this type of enterprises, such as
the share of loans granted to SMEs, based on their size, experience and sectors of activity, that
would be useful for public authorities, creditors and investors.

Keywords: Key words: Small and Medium Enterprises, access to finance, financing
constraints, bank financing, support measures
JEL Classification codes: JEL code classification: G30, G32, O16

                LABOUR TAXATION IN THE EUROPEAN UNION
Sabău - Popa Diana, Kulcsar Edina, Sabău-Popa Liviu Mihai

This article proposes an analysis, which we consider extremely useful in the current economic
context, of the evolution of labour income fiscality, more precisely, the effect of the public
debt growth on the tax wedge for the labour income.
The share of fiscal revenues from direct taxes, indirect taxes and social contributions is
relatively close in the old member states of the European Union in comparison with the new
member states, which register a lower level of income from direct taxes. The low level of
income from direct taxes is compensated by more significant shares of the social contributions
or indirect taxes.
The main motivations of cross-border migration are: a successful career in a multinational
corporation, high variations of the tax rate, of the salary income between states and, last but
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not least, the level of the net salary. To this day, there are no plans to harmonize across the
European Union the legislation regarding the taxes wages and the social security
contributions. Still, the European Union had in view the coordination of the national tax
systems to make sure that the employees and the employers do not pay several times the social
contributions in their movement across the community space.
Despite the fact that some states tax the labour income at a low level, the labour fiscality
remains high in the European Union in comparison with other industrialized economies,
probably also due to the fact that the majority of the member states have social market
economies. The increase of the fiscality level for the labour income determines the decrease of
the employment rate and the raise of the unemployement rate.
The solution to guarantee a higher employment rate, which is a target of the European Union
Strategy „Europe 2020” could be the relaxation of the labour income fiscality by transferring
the tax wedge on the labour income towards property or energy taxation.

Keywords: labour income, social contributions, tax quotas, taxes
JEL Classification codes: F22, G28, H2

   BASES OF STATE SUPERIOR EDUCATIONAL SYSTEM FINANCING FROM
                                   ROMANIA
Schneider Suzana, Cosma Dorin, Bene Gheorghe Florin

This study concerning state superior educational system financing comes to emphasize the
main state superior educational system financing forms from Romania, looking forward to
find new future state superior educational system financing forms. Romanian educational
system reduced financing imposes a special attention for educational process, concerning both
quality and, especially, an appropriate financing level endowment. For the future of academic
education, it is vital to be found new financing sources, because a composite, diversified
financing leads to the raise of total amount of resources at the service of universities, to their
freedom degree, too, making them capable to undertake the constraint imposed by the
dependence of a solely financing source.

Keywords: the financing of the academic education, private funds financing, public fund
financing, public funds usage surveillance.
JEL Classification codes: I22

    THE FLAT TAX - A COMPARATIVE STUDY OF THE EXISTING MODELS
Tulai Ioan Constantin, Schiau (Macavei) Laura - Liana

In the two last decades the flat tax systems have spread all around the globe from East and
Central Europe to Asia and Central America. Many specialists consider this phenomenon a
real fiscal revolution, but others see it as a mistake as long as the new systems are just a feint
of the true flat tax designed by the famous Stanford University professors Robert Hall and
Alvin Rabushka. In this context this paper tries to determine which of the existing flat tax
systems resemble the true flat tax model by comparing and contrasting their main
characteristics with the features of the model proposed by Hall and Rabushka. The research
also underlines the common features and the differences between the existing models. The
idea of this kind of study is not really new, others have done it but the comparison was limited
to one country. For example Emil Kalchev from New Bulgarian University has asses the
Bulgarian income system, by comparing it with the flat tax and concluding that taxation in
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Bulgaria is not simple, neutral and non-distortive. Our research is based on several case
studies and on compare and contrast qualitative and quantitative methods. The study starts
form the fiscal design drawn by the two American professors in the book “The Flat Tax”.
Four main characteristics of the flat tax system were chosen in order to build the comparison:
fiscal design, simplicity, avoidance of double taxation and uniformity of the tax rates. The
jurisdictions chosen for the case study are countries all around the globe with fiscal systems
which are considered flat tax systems.
The results obtained show that the fiscal design of Hong Kong is the only flat tax model
which is built following an economic logic and not a legal sense, being in the same time a
simple and transparent system. Others countries as Slovakia, Albania, Macedonia in Central
and Eastern Europe fulfill the requirement regarding the uniformity of taxation. Other
jurisdictions avoid the double taxation but they have several tax rates for different types of
income. Analyzing the flat tax jurisdiction we concluded that none of the existing models is a
true flat tax as designed by Hall and Rabushka.
The study is important given the fact that it can provide useful information for future studies
in connecting the effects generated by the adoption of flat tax with the design of the system.
This can give intelligence for the exiting models in correcting and improving their features in
order to become more efficient. This can also provide precious design information for the
jurisdictions desirous of implementing flat tax systems.
The added value of this paperwork consists in the determination of the main features of the
existing flat tax systems in relation with the theoretical system designed by Hall and Rabushka
and in the fact that it provides precious structured information for future studies allowing to
connect the effects of the flat fiscal model with its characteristics.

Keywords: flat tax, simplicity, uniformity, rates
JEL Classification codes: H20, H24, H25




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                               SUB-SECTION: BANKING

              COMPETITION IN ROMANIAN BANKING SECTOR
Andrieş Alin Marius, Căpraru Bogdan

Recent turmoil in the global financial system has impacted severely on the banking sector
with many banks suffering large losses and necessitating the need to raise additional capital
privately or through their respective national governments. In our study we investigate the
impact of structural reforms performed throughout the European Union (EU) accession
process on competition and contestability of banking systems in Romania.
The literature of the measurement of competition can be divided into two major approaches:
structural and non-structural. The structural approach to the assessment of competition
embraces the „Structure-Conduct-Performance Hypothesis” (SCP) and the „Efficient
Structure Hypothesis” (ESH). The structural approach, as the name suggests, assesses bank
competition by examining measures of market structure such as concentration ratios (the share
of assets held by the top 3 or 5 institutions) or indices (e.g., the Herfindhal-Hirschman index)
and supposes that higher concentration in the banking market causes less competitive bank
conduct and leads to higher bank profitability. The SCP model is originally developed by Bain
(1956). The second approach, ESH, developed by Demsetz (1973) and Peltzmann (1977)
suggests that the superior performance of the market leaders determines the market structure,
implying that higher efficiency produces both higher concentration and greater profitability.
The non-structural indicators of competition are mainly based on the measures of monopoly
power developed by Lerner (1934). The Lerner Index suggests the mark-up of price over
marginal cost. An alternative non-structural indicator of the degree of market competition is
the Panzar and Rosse (1987) H-statistic. The H-statistic measures the extent to which changes
in banking costs are reflected in changes in banking revenues.
In order to examine the level of competition and market power of banks in Romania for period
2003 – 2009, we estimate the non-structural indicators and compare it with the structural
indicators of competition.
In particular, we measure competition using Lerner index and the H-statistic, indicators what
are estimated using bank-level data and are compared with a standard market structure
measure of concentration like HHI and CR5. There are no other studies that measure both
structural and non-structural competition indicators for Romanian banking sector. Also, our
assessment contains a period of seven years including the begging of the implications of the
present international financial crises on Romanian banking sector.
The structural indicators show continuous increase of competition in the Romanian banking
system. Lerner index and H statistic demonstrate that Romanian banking system is
characterized by monopolistic competition and relatively competitive practices. Personnel
cost, operational cost and financial cost are statistically significant at conventional levels,
which imply good fit of the revenue equations. The results also demonstrate that excess fixed
assets do not generate abnormal revenue.

Keywords: bank competition, Lerner index, H statistic, structural indicators, Romanian
banking system
JEL Classification codes: G21, L11




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              VALUE AT RISK - CORPORATE RISK MEASUREMENT
Aniş Cecilia-Nicoleta, Roth Anne-Marie, Apolzan (Angyal) Carmen-Maria

The notion of “risk” is used in a number of sciences. The Faculty of Law studies the risk
depending on its legality. The Accident Theory applies this term to describe the damage and
the disasters. One can find studies on the risks in the works of psychology, philosophy,
medicine and within each of these areas the study of the risk is based on the given science
subject and, of course, on their methods and approaches. Such a variety of risk study is
explained by the diversity of this phenomenon.
Under the market economy conditions, the risk is an essential component of any economic
agent management policy, of the approach developed by this one, a strategy that depends
almost entirely on individual ability and capacity to anticipate his evolution and to exploit his
opportunities, assuming a so-called "risk of business failure."
There are several ways to measure the risks in projects, one of the most used methods to
measure this being the Value at Risk(VaR).
Value at Risk (VaR) was made famous by JP Morgan in the mid 1990s, by introducing the
RiskMetrics approach, and hence, by far, has been sanctioned by several Governing Bodies
throughout the world bank. In short, it measures the value of risk capital stocks in a given
period at a certain probability of loss. This measurement can be modified for risk applications
through, for example, the potential loss values affirmation in a certain amount of time during
the economic life of the project- clearly, a project with a lower VaR is better.
It should be noted that it is not always possible or advisable for a company to limit itself to the
remote analysis of each risk because the risks and their effects are interdependent and
constitute a system .In addition, there are risks which, in combination with other risks, tend to
produce effects which they would not have caused by themselves and risks that tend to offset
and even cancel each other out.

Keywords: risk, value at risk, confidence intervals, variance, Monte Carlo simulation
JEL Classification codes: M21, G30, C58

 MEASURING THE RISK OF BANKRUPTCY IN THE COMMERCIAL SECTOR IN
                            ROMANIA
Bătrâncea Larissa-Margareta

In this paper, the author presents ways to evaluate the rating of commercial entities based on
logit model. On this basis were determined the ranges of financial security and was set the
probability of failure of these firms in Romania.

Keywords: rating, financial ratios, rating models
JEL Classification codes: G32

      TROUBLESHOOTING BASEL II: THE ISSUE OF PROCYCLICALITY
Benyovszki Annamaria, Bordas Eszter, Kurti Laszlo - Adam, Szodorai Melinda

A widespread concern about Basel II capital requirements is that it might amplify business
cycle fluctuations, forcing banks to restrict their lending when the economy goes into
recession. Under the IRB approach of Basel II, capital requirements are increasing functions
of the probability of default (PD), loss given default (LGD) and exposure at default (EAD)
parameters estimated for each borrower, and these inputs are likely to rise in economic
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downturns. In this paper, we compare two alternative procedures that are designed to
somehow moderate the procyclical effects induced by Basel II - type capital regulation. The
starting points of our analysis consist Jokivuolla, Kiema and Vesala (2009) and Repullo and
Suarez (2009), who both examined the impact of regulatory capital‟s procyclical effects. It‟s
vital to note remarks of Caprio (2009), that is, making regulatory capital levels countercyclical
could worsen the state of an economy during a recession. As we do not have access to the
Romanian Central Credit Register database, we compute a model-economy that stands as a
proxy for the Romanian firms‟ sector. Our simulated Romanian economy can be characterised
by all Romania-specific macroeconomic controls. Then we estimate a model of PDs during
the period 2000 – 2010, and based on the estimated probabilities of default we compute the
corresponding series of Basel II capital requirements. After the diagnosis of procyclicality, we
analyze two procedures that try to mitigate the cyclical effects of capital regulation:
smoothing the output of the Basel II formula, and smoothing the input, by construction of
through-the-cycle (TTC) PDs. The comparison of the different procedures is based on the
criterion of minimizing the root mean square deviations of each adjusted series. Our results
show that the best ways to moderate procyclicality are either to smooth the input of the Basel
II formula by using through-the-cycle PDs, or to smooth the output with a multiplier based on
GDP growth. We conclude that the GDP-based smoothing may be more efficient than the use
of TTC PDs in terms of simplicity and transparency. In terms of the GDP adjustment,
regulatory capital levels should increase with approx. 1,31% during an economic growth
period and decrease with 4,03% during a recession, in order to mitigate the cyclical effects
induced by Basel II – type capital regulation.

Keywords: Basel II, procyclicality, regulatory capital, probability of default, credit-crunch
JEL Classification codes: G18, G17

 EXTERNAL FACTORS INFLUENCE ON INFLATION: THE CASE OF ROMANIA
Căpraru Bogdan, Ihnatov Iulian

In this paper we try to assess the main external determinants of inflation dynamics in
Romania. The literature in the field of measuring inflation dynamics is wealthy and various.
There are many developing country - level studies that examine inflation dynamics: Blavy
(2004) - Guinea, Duma (2008) - Sri Lanka, Gottschalk et al (2008) - Sierra Leone, Moriyama
(2008) - Sudan, Mwase (2006) - Tanzania, Williams and Adedeji (2004) - Dominican
Republic, Hossain (2005) - Indonesia, Almounsor (2010) - Yemen. The issue of Romanian
inflation dynamics is present in many and various studies, like Hammermann (2007),
Pelinescu and Dospinescu (2006), Budina et al (2006) etc. There are no other recent studies
that analyze the external determinants on Romanian inflation dynamics.
In our paper we estimate an OLS single equation model, using a methodology derived from
Almounsor (2010). The empirical analysis uses monthly data from August 2005 to January
2011. The start point of the data series is the moment of a major change in the National Bank
of Romania (NBR) monetary policy: adoption of the inflation targeting regime. The
independent variables used in our research are: harmonized consumer price index of EU-25
countries, EUR/RON exchange rate, crude oil price index (for analyzing the external shocks
effect) and M2 monetary aggregate (intermediate money supply) as a control variable.
The outcomes suggest that inflation in Romania is driven mainly by international price shocks
– harmonized consumer price index of EU-25 countries. The EUR/RON exchange rate
depreciation has a small influence on domestic inflation. In the short run, the effect of the
international oil price is insignificant. Money supply, used here as a control variable, is shown
to have a very small effect on inflation in Romania when using OLS regressions. The results
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show that 66% of the domestic inflation variance is explained by the independent variables in
our model.

Keywords: inflation dynamics, external shock, international prices, exchange rate, Romania
JEL Classification codes: E31, E52, E58

      COORDINATES AND OBJECTIVES OF ROMANIAN FISCAL POLICY
Caraiman Adrian - Cosmin

The fiscal policy may target the achievement of certain different purposes, either of economic
or social nature, of the public infrastructure. Fiscal policy is integrant part of the general
economic actions of the state, interfering powerful with the sector, budgetary, monetary,
social policies, and also with sector or national development strategies for ensuring the
macroeconomic balance. By means of the fiscal policy may be acted so as to protect or
encourage certain economic niches, and from this respect the fiscal interventionism targets
different objectives, such as: stimulating economic agents for making investments in certain
fields, increasing quality and competiveness of the products, stimulating the export,
encouraging small enterprisers, stimulating the agriculture, etc.

Keywords: Keywords: fiscal policy, monetary policy, financial policy, taxes, fees.
JEL Classification codes: E 62

  THE IMPACT OF THE FINANCIAL AND ECONOMIC GLOBAL CRISIS OVER
                       THE ROMANIAN BANKING SYSTEM
Ciobanu (Sireteanu) Elena

This paper analyzes the evolution of the Romanian banking system during 2007 - 2010
compared to the same segment of financial market dynamics in the Member States. Also seeks
to detect the effects of the global financial and economic crisis on lending activity, the
management of liquidity risk and thereby the effect on the profitability of the Romanian
banking sector and outline the prospects of further development.
The macroeconomic and financial international background has undergone negative changes,
especially in the autumn of 2008. Romania's financial system has evolved but strongly marked
by the virulent manifestations of global financial and economic crisis. The banking system
which is the dominant component in the financial system is well capitalized, has resisted, until
now, these pressures, without recording any bankruptcy.
As a lending crunch from the increase in provision expenses, against the backdrop of bad
loans it seems to be a poor performance of the banking system for the future period, taking
into account the negative financial result recorded at the end of 2010.
Given the high degree of capitalization, liquidity level indicators, on this, consider that local
banks are well placed to support the real economy on long-term lending conditions imposed
by prudential regulations in the field.
Currently, at the level of the Romanian banking system, we consider it is necessary to
continue the measures imposed by the monetary authority to ensure the reduction of
uncertainty and reassure market participants in future developments, as trust is the essential
factor for the crisis. In this sense, we consider very important the debate, the direct
involvement of representatives of the central bank and academic themes reflecting the current
state of the Romanian financial system, lessons learned from the crisis and Romania's


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objectives for the future - providing a sustainable process of nominal and real convergence of
the Romanian economy - towards European integration in a not too distant horizon.

Keywords: financial crisis, Romanian banking system, non-performing loans, profitability
JEL Classification codes: G01, G2, E51

  FLUCTUATION IN PENSION FUND ASSETS PRIVATELY MANAGED UNDER
THE INFLUENCE OF CERTAIN FACTORS. STATISTICAL STUDY IN ROMANIA
Cristea Mirela, Siminică Marian, Drăcea Raluca

On international level, the economic and financial crisis has determined a diminution of the
asset value of compulsory pension funds, reflecting a reallocation of funds towards alternative
or low-risk investments. The present paper indicates how the net asset value of privately
managed pension funds in Romania may be affected or not by certain influence factors in
direct correlation with different asset allocation strategies of pension funds. In this way, on
literature review there are many studies which have analyzed the fluctuation of pension funds
assets and a better reallocation of their investment in order to improve their efficiency. The
experience of the value fluctuation of privately administered pension fund net assets is highly
important, firstly beacause of its effects on the increase and the decrease of invested values for
the insured persons‟ accounts, under the circumstances of constantly maintaining their
contributions and, implicitly, the results achieved through these investments. The research
methodology consists in testing of five variables: currency exchange rate, credit interest rate,
bank deposit interest rate, reference interest rate and value of the stock exchange market index
(BET-C index), by means of the multiple linear regression method. The conclusion is that
only two of these factors, namely, the currency exchange rate and the reference interest rate,
influence net asset value of privately managed pension funds, the second pillar, one in direct
and the other in indirect correlation. In order to neutralize the effects generated by the
diminution of the net asset value of privately managed pension funds, considering a short time
horizon, we shall elaborate a dynamic mix of their investments able to adapt to the
fluctuations of the influence factors. Thus, new opportunities will be generated in order to
achieve the efficiency of pension funds and to prevent the diminution of the value of insured
individuals‟ contributions to these pension funds.

Keywords: privately managed pensions, net assets, investments, factors of influence,
statistical correlations
JEL Classification codes: G23, C15

CENTRAL BANK INDEPENDENCE AND MACROECONOMIC PERFORMANCES -
                           AN EMPIRICAL APPROACH
Dumiter Florin Cornel, Coroiu (Petriș) Sorina

The empirical evidence upon the macroeconomic performances of the independent central
banks do not always have been successfully. In some cases, the consistency of the indices
based on the interpretation of central banks statues used for measuring the degree of central
bank independence is controversial, particularly for some of the indices. Moreover, the
correlations between central bank independence and macroeconomic performance variables
are not always confirmed, the causal relationship between central bank independence and
inflation is controversial, and the higher disinflation costs, as a result of a higher sacrifice ratio
correlated with the degree of independence is controversial, too. The effects of central bank
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independence upon macroeconomic performances focalized upon the empirical evidence of
inflation, output or economic grouth and the disinflation costs. This is due to the lack of
studies vis – á – vis of relationship between central bank independence and macroeconomic
performances regarding some variables like interest rates and budgetary deficits. Specialists
consider inflation and output as the main determinats of the social welfare. The economic
literature regarding this fact suggests that the central bank is seen as a free lunch institution.
This hypothesis sustains that independent central banks will have social benefits in terms of
lower inflation rates, but without any costs in terms of the real macroeconomic performances
as a higher output volatility or a lower economic growth. In this article we provide a
qualitative analyses regarding the relationship between central bank independence and
macroeconomic performances. For this purpose the authors‟ used the new index for measuring
central bank independence and inflation targeting based on three pillars: political and legal
central bank independence, central bank governance and conduct of monetary policy, central
bank transparency and accountability. For estimating the connections between the evolution of
central bank independence and macroeconomic performances we used five macroeconomic
variables: GDP in constant prices, Harmonised Price Consumer Index, unemployment rate,
budgetary deficit and current account deficit. Both measuring the degree of central bank
independence and evaluating the average levels of the macroeconomic variables were
analysed in the period 1990 – 2009, within 20 less developing countries. The final results will
help clarify the complex relationship between central bank independence and macroeconomic
performances in countries who fostered a large amount of institutional shift in recent years.

Keywords: Central bank transparency, central bank accountability, inflation targeting,
macroeconomic outcomes, free lunch hypothesis
JEL Classification codes: E50, E52, E58

   COMPETITION IN THE BANKING SYSTEM OF REPUBLIC OF MOLDOVA
Enicov Igor, Chetraru Aliona

The banking system is one of the financial market segments which plays an important role in
the financial circuit both at the country level and as a component of the international financial
system. Developing a competitive banking system allows to avoid monopoly situations
creating the possibility for each bank to be oriented to a certain range of services and products
provided willing to increase continuously their quality and attractiveness. The dynamic
analysis of effective competition in the domestic banking system would allow determination
of factors with negative influence on the rate of participation of each bank in the total bank
portfolio items, and also the possibility of reviewing the financial policies pursued in the
banking sector. Study of bank system competition is a topic of interest both for financial
analysts, and for authorities, given the opportunities arising: qualitative assessment of
competition in the banking sector, verifying in which way the regulations in force have
influenced the dynamics of competition, measuring the intensity of competition in the banking
sector, detection, based on statistical analysis of competitive situation, of the main qualitative
types (categories) of financial institutions active in the financial market. Moldova's banking
system, according to the results obtained by analyzing the competition, has a moderate
competition, even if it is obvious its increasing trend. Banking policies, trends in international
financial markets, internationalization of capital markets affect the position of the banking
system on domestic financial market, implicitly calculating the contribution of each bank in
the formation of the portfolio: bank assets, total regulatory capital, the volume of loans and
deposits.

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Keywords: banking system, competition, Gini coefficient, Herfindahl–Hirschman, Lorentz
distribution.
JEL Classification codes: G21, D49

      EXCHANGE-RATES FORECASTING: EXPONENTIAL SMOOTHING
                      TECHNIQUES AND ARIMA MODELS
Făt Codruţa Maria, Dezsi Eva

Exchange rates forecasting is, and has been a challenging task in finance. Statistical and
econometrical models are widely used in analysis and forecasting of foreign exchange rates.
This paper investigates the behavior of daily exchange rates of the Romanian Leu against the
Euro, United States Dollar, British Pound, Japanese Yen, Chinese Renminbi and the Russian
Ruble. Smoothing techniques are generated and compared with each other. These models
include the Simple Exponential Smoothing technique, as the Double Exponential Smoothing
technique, the Simple Holt-Winters, the Additive Holt-Winters, namely the Autoregressive
Integrated Moving Average model.

Keywords: Forecasting, Simple Exponential Smoothing, Double Exponential Smoothing,
Holt-Winters Additive, Holt-Winters Multiplicative.

JEL clasification: G17, F31, F47.

     MEASURES AND INSTRUMENTS USED AS A RESPONSE TO CRISES IN
                 EUROPEAN UNION – AN OVERVIEW
Fîrţescu Bogdan

During latest times, financial crises have been a common occurrence in emerging market (and
transition) countries with negative influence for the economies. Financial crises have had
negative effects on real output, work force, poverty and political instability. Latest crises
(2008) that struck US become international, its consequence being received in European
countries too. This paper wants to discuss some intervention measures taken in the European
Union Area and some importants funds used as tools for crises fighting. The European
Economic Recovery Plan and EU funding mechanisms (The European Social Fund (ESF) and
The European Globalization Adjustment Fund (EGF)) are taken into discussion.
Keywords: Crises prevention instruments, financial system, The European Economic
Recovery Plan and EU funding mechanisms (The European Social Fund (ESF) and The
European Globalization Adjustment Fund (EGF)
JEL Classification codes: J10, J20

  OVERVIEW OF THE RELEVANT INDICATORS OF DEFAULTED AND NON-
 DEFAULTED COMPANIES AND POSSIBILITIES OF IMPROVEMENT FOR THE
     RATING SYSTEMS USED BY THE ROMANIAN COMMERCIAL BANKS
Kovacs Ildiko, Doczi Henrietta, Erdely Attila, Felfalusi Éva, Knoch Renáta -Kinga,
Patka Kinga-Enikő

Since the beginning of the financial and economic crises many news came to light which
discussed the increasing number of non-performing loans, and the fact that as a result of the
company break-downs, the bank portfolios have also gone worse and worse. In this paper our
goal is to find out which internal factors influence the solvency of a company, therefore, to
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point out the weaknesses of the current Romanian rating systems, which as we will see, do not
take into only relevant criteria when according a loan to a company. In order to conduct this
study, we choose 18 indicators from several categories to predict bankruptcy. Some of the
indicators mentioned above are really common in the international and the Romanian
literature (e.g. ROA, ROE, ROS, assets turnover ratio), some of them are less. On a sample of
3000 Romanian companies we use the T-test statistical method to find out if an indicator is
significant or not. The sample consists of companies (defaulted and non-defaulted as well)
which have presented their financial statements (balance, profit and loss account between
1999 and 2008). For each company a set of 18 financial indicators was calculated, but the
results obtained show that only 8 of them is significant in predicting bankruptcy: ROA, assets
turnover ratio, equity/total assets, general leverage, current assets to total assets, cash to total
assets, total assets and sales. In the next step, by analyzing the obligatory forms used in credit
lending, we conclude which indicators are used by different Romanian commercial banks. We
found that only four out of seven banks calculate all of the significant indicators identified in
the first part of the paper. Finally, we made a proposal about which quantitative indicators
should the banks use to minimize the credit losses and to avoid the overdue payments. In
addition, we consider that the banks should pay attention to the qualitative factors as well to
effectively filter out non-performing loans.

Keywords: corporate failure, default, risk, financial ratios, rating systems, Romania
JEL Classification codes: G32, G33, D22

THE RISK OF FAILURE - CAUSES AND CONSEQUENCES OF THE IT INDUSTRY
Moscviciov Andrei

In this paper the author shows the ways to asses the bankruptcy risk using a related system of
methods: economic, managerial, banking and statistics. At the end of this paper is addressed
this issue with the help of Robertson Model.

Keywords: bankruptcy risk, economic risk, financial risk
JEL Classification codes: G32

     EMPIRICAL STUDY OF THE PROBABILITY OF DEFAULT IN CASE OF
          ROMANIAN COMPANIES LISTED ON STOCK EXCHANGE
Petru Tunde Petra, Farkas Dalma - Zsuzsa, Furdek Balazs - Marton, Marton Noemi,
Racz Timea Erzsebet

The importance of estimation of a firm‟s probability of default increased significantly during
the economic and financial crisis for financial institutions, which can be explained by the fact
that the share of nonperforming loans increased in this period. The probability of default can
be estimated with structural models, which have on base the methodology developed by
Merton (1974), methodology used by Moody‟s Corporation (known as KMV Merton model).
The aim of this study is to estimate the probability of default of companies listed on Bucharest
Stock Exchange using this methodology.
This approach was widely used in the literature by many researchers (i.e., Kealhofer and
Kurbat (2000), Crosbie and Bohn (2002), Duffie and Wang (2004), Bharath and Shumway
(2004, 2008)). In Romania this methodology was empirically tested by Codirlaşu (2007), who
estimated using Merton‟s methodology the probability of default of companies listed on the
Bucharest Stock Exchange, respectively by Bobircă et al. (2008), where the probabilities of
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default were estimated in case of 42 companies listed on the Bucharest Stock Exchange for
2000-2008 time period.
In this paper we used Merton‟s model, which assumes that a company defaults if the value of
its assets is less than the promised dept repayment at time T. The process of estimating the
probability of default starts from the following firm specific variables: the market value of the
firm‟s assets, the share prices, the value of the liabilities and the risk-free rate. The analyzed
period is 2003-2010, containing the economic and financial crisis period, too. Analyzing the
financial statements of the companies listed on the Bucharest Stock Exchange, we determined
the input parameters of the model and calculated the quarterly probabilities of default of each
analyzed company. According to our results the probabilities of default have a reduced value
in the majority of the cases.

Keywords: Merton model, probability of default, credit risk, structural models, companies
listed on the stock exchange.
JEL Classification codes: G12, G17, G32, G33

       THE IMPLICATIONS OF VARYING EXCHANGE RATES FOR THE
                      INTERNATIONAL TRADE
Sandu Carmen

The benefit of international trade is a more efficient employment of the productive forces of
the world.(John Stuart Mill)
The exchange rate is a primary factor that influences economy. This instrument is used by
some countries in order to improve the lack of balance caused as a result of the financial crisis
felt in many countries considered by then infallible. The negative effects of the financial crisis
can also be found in the decreased volume of commodities involved in international trade
exchanges, as a consequence of modified prices and decreased offer. The globalizing trend
leads to a constant expansion of exchanges between countries and to the consolidation of
international cooperation.
Except that economic interdependence generates an increased risk under the influence of
economic, financial, monetary or political factors. The currency risk can generate either a gain
or loss during foreign trade operations. The long period of RON depreciation made possible
the entry of Romanian products on the international markets due to their prices. Sheltered by
the gain generated by the evolution of the exchange rate, most of the exporters were not
concerned by the increase of product competitiveness or by avoiding the currency risk. The
fact that, for many years, the evolution of the exchange rate generated substantial losses for
the exporters shows that risk coverage in Romania is, in most cases, a purely theoretical
concept.

Keywords: exchange rate, currency, depreciation, appreciation, J Curve
JEL Classification codes: F31, G15

 THE IMPACT OF FINANCIAL INNOVATION ON THE DEVELOPMENT OF THE
                    CURRENT FINANCIAL SYSTEMS
Şargu Alina Camelia

Over the past few decades, the financial innovation has become a defining characteristic of
financial systems, contributing to the major structural changes underwent by international and
domestic financial markets.
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The aim of this paper is to analyse the contribution that financial innovation might have to two
key issues in the financial system: its efficiency and its stability and to discuss the various
ways in which financial innovation has the potential to enhance the efficiency of the financial
system and also its implications for systemic stability. Thus, taking into consideration that all
financial innovations encompass advantages as well as risks, the core question that arises
refers to under what circumstances financial innovations enhance the efficiency and the
stability of financial systems, and, under what circumstances do they threaten their stability?
In order to achieve this, the methodological approach used starts with a literature review
which highlights the main academic literature on the subject. Then, in order to analyse the
problems regarding the trade-off which often exists between the efficiency and stability
characteristics of the financial system, we have used systematisation techniques and also a
series of tables and graphics, realised using data gathered from official statistics (like those
provided by BIS), different reports, studies and researches.
In general, the results of our paper highlight that there is a need for caution, because the
abusively use of some new financial instruments on a larger scale or on a different
background compared with the original one, without proper regulation and supervision, can
generate instability. Also our paper emphasizes that there are relatively few studies
undertaken on the subject of financial innovation, at both theoretical and empirical level, in
comparison with the abundance of researches undertaken on the innovation from other sectors
of the economy (e.g. industrial innovation). Thus, we consider that this research can represent
an initial step towards the possibility of filling this gap, taking into consideration the
importance of the financial innovation subject, that should be studied continually in order to
improve its comprehension for the benefit of those who produce it, use it and eventually who
regulate it.
Acknowledgements
I hereby acknowledge the support of the “Alexandru Ioan Cuza” University of Iasi and of my
PhD coordinator: Professor Ovidiu Stoica, PhD, in the development of this article through the
grant POSDRU/88/1.5/S/47646, entitled “Studii doctorale: portal spre o carieră de excelenţă
în cercetare şi societatea cunoaşterii”(2009-2012), co-financed through the European Social
Fund, within the Sector Operational Programme Human Resources Development 2007-2013.

Keywords: financial innovation, financial system, financial stability, efficiency
JEL Classification codes: G01, G14, G15, G32

              LIQUIDITY MANAGEMENT AND CORPORATE RISK
Tarnóczi Tibor, Fenyves Veronika

The consequence of the economic crisis, the access of the external financing resources was
narrowed significantly and lenders had became more cautious. This meant that the external
source providers analyze more thoroughly the source claimants, and they also need to be more
aware of their situation, to submit well founded loan applications to financial institutions.
However, analysts should be aware of which are the ratios which should be paid a special
attention and which ones are essential to assess a given situation, knowing them they can
properly inform the leaders as well as to give an appropriate help to the decision makers.
Liquidity measures are designed to provide information about the solvency and financial
flexibility of the business enterprise. The traditional liquidity measures has been criticized
because it mixes assets and liabilities that are quite different in terms of their maturity time.
The problem with the traditional current ratio is that it treats all assets and liabilities as being
of equal degree of liquidity. Similar problems were experienced in relation to the cash
conversion cycle, which is also an important measure of the company's payment capability.
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This paper describes how should be modified these indicators in order to the decision makers
able to draw correct conclusions.

Keywords: liquidity management, liquidity ratios, modified liquidity ratio, modified cash
conversion cycle
JEL code: G30, G32


                      ASSETS’ STRUCTURE AT CREDIT UNIONS
Tiplea Augustin

Balance is a static tool for assessing the entity's position, profit and loss on one hand and cash
flow statement on the other hand. These are dynamic situations on one hand showing the
effectiveness or ineffectiveness of the total consumption of resources (profit and loss) and on
the other hand entity's business viability (by cash flows).
As reflection of financial position, the balance, established at the end of the reporting period
(called a financial year), describes separately items of assets, liabilities and equity of the
company.
Assets are resources controlled by the enterprise as a result of past events and from which is
expected to generate future economic benefits for the enterprise. The economic benefits
correspond to a production potential, a possibility for conversion into cash or a reduction in
output capacity of funds (cost reduction) that an asset contributes, directly or indirectly to a
company-specific cash flow.

Keywords: assets, credit unions, balance sheet, bank, customers
JEL Classification codes: G2

           THE CREDIT RISK-COMPONENT OF THE BANKING RISKS
Tirlea Rodica

The risk management means the risk identification, evaluation, quantification and the strategy
to counter and to find solutions and levers which can abate or even eliminate the possibility to
appear of the probable consequences if they have place. The credit generates risks.
The inadequate financial state of the companies plus the economic conjuncture and the
absence of the surveillance are the principal causes of the risks. From the bank perspective,
the effects are materialized in total or partial looses of the borrowed capital.
As consequence, to avoid these risks or to diminish it, the banks proceed to the carefully
analyze of the authorized limits to offer credits, to create immobile and mobile guaranties, the
carefully surveillance of the clients activity during all the time of the credit.

Keywords: Credit, risk, risk management, risk assumption, financial risk, corporation risk,
bad credits
JEL Classification codes: G32




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   MODELING ROMANIAN EXCHANGE RATE EVOLUTION WITH GARCH,
                     TGARCH, GARCH- IN MEAN MODELS
Trenca Ioan, Cociuba Mihail Ioan

In this paper we analyze the return of exchange rate in order to test and analyze the best
models which are capable of forecasting accurately there evolution. We apply the GARCH
family models on the exchange rate return in order to obtain the best models for there
volatility. Financial time series often exhibit abnormal characteristics, such as: serial
correlation, non-stationarity, heteroskedasticity, asymmetric and are leptokurtic. Due to these
characteristics autoregressive models such as autoregressive (AR), moving average (MA) and
autoregressive integrated moving-average (ARIMA) are unable to capture the evolution of
financial series, to represent the special characteristic of financial a hole new range of models
where developed : generalized autoregressive conditional heteroskedasticity (GARCH), which
are taking into account the heteroskedasticity of the errors term. The GARCH model allows
for lags in the autoregressive term and in the variance term incorporates lags of the previous
variance and also for the errors. The GARCH family has expanded in the last years in order to
incorporate for asymmetry (Threshold GARCH, TGARCH) and risk (GARCH -in Mean).
We analyze the evolution of exchange rate for: Euro/RON, dollar/RON, yen/RON, British
pound/RON, Swiss franc/RON for a period of five years from 2005 till 2011, we observe that
in the analyzed period there are 2 sub-periods: 2005-2007 in which the RON appreciated
constantly, and 2007-2011 in which the trend is depreciation for RON in respect to all the five
currencies and the volatility was sensible higher than in the previous period. We obtain the
returns on exchange rate by using the following transformation r=log(curs_t)-log(curs_t-1);
the five analyzed series display an leptokurtic and asymmetric behavioral. Using the GARCH,
TGARCH and GARCH-in Mean models, we explicit the evolution of volatility throw this
period, choosing the best model using the following : minimizing the value of the sum of
squared errors, Akaike and Bayesian Information Criterion.

Keywords: exchange rate, GARCH, TGARCH, AIC, BIC.
JEL Classification codes: G01, G21

   THE POLITICS OF THE NATIONAL BANK OF ROMANIA TO DEAL WITH
                               CREDITING RISK
Vechiu Camelia, Gherman Liliana - Victoria, Tudose Geanina

The market economy refers to the implicit presence of a banking system which could ensure
the mobilization of all the monetary resources of the respective economy and their temporary
orientation towards the development of efficient economic activities.
A significant aspect of the bank performance refers to the measurement of risks with the aim
to diminish them. If the bank management is poor and the risks are not taken into
consideration, it will be possible that the earning capacity to be reduced and to lead even to
the bankruptcy. Due to the fact that the banks are lending, they assume risks which are
determined by the doubtful debtor (it appears the insolvency), or by the general economic
evolution (which involves interest and exchange rate risks), or by the financial structure of the
bank (financing long-term credits from short or sight deposits).
The bank risk can be determined by external or internal factors of the bank due to the
competitive environment.
In the professional literature, the methodology used for the risk management involves several
steps: the risk identification and analysis; the risk elimination and control; the risk assessment

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and assuming; the risk financing by debiting the general or specific reserves or by transfer
which means the insurance of the bank company.
For those banks operating in Romania, the risks are even more evident due to the hostile
environment in which they operate, but also due to the specificity of the Romanian banking
system which is still evolving and adapting to the competitive stringencies of the market
economy.
This paper is trying to follow the risk involvement towards the bank activity taking into
account its importance and role in order to ensure the increase of the bank earning capacity.

Keywords: crisis, credit risk, bad loans, banking supervision
JEL Classification: G21

  A LINIAR MODEL OF ANALYZING INFLATION IN ROMANIA, BULGARIA,
                            TURKEY AND CROAŢIA
Zăpodeanu Daniela, Gavriş Natalia, Leac Dafina Roxana, Teudan Ana - Maria

The study uses a linear model that reviews the connection between inflation rate and a few
macroeconomic indicators: Harmonized Index of Consumer Prices (HICP), Gross Domestic
Product (GDP) and unemployment (Unempl). The purpose of this study is to discover the
influence of these macroeconomic indicators on the inflation rate, taking into consideration a
period of ten years: 2000-2010. The analysis approaches this issue from the perspective of two
EU member countries: Bulgaria, Romania, and another two countries - EU candidates: Turkey
and Croatia.
Although the tradeoff between inflation and unemployment has been long discussed, starting
with the famous idea of the Phillips curve that has evolved during time (M.Friedman,
E.Phelps), economists are still studying this theme in order to find satisfactory explanation for
it. In this paper we have tried to find out whether, in the analyzed countries, there is a strong
tradeoff between inflation and unemployment, but we also added other variables that
influence inflation: the gross domestic product and the previous values of inflation.
Our paper started with a study of the economic background of each analyzed country then, we
have collected quarterly data from the period of 2000-2010, that we processed using the
econometric software Gretl. After building several models for each country we concluded that
inflation in Romania and Croatia are influenced by the following variables: GDP and previous
HICP, while the values of inflation in the other two countries are affected by more diverse
range of independent variables.

Keywords: : Inflation, Harmonized Index of Consumer Prices, Gross Domestic Product,
Unemployment, Monetary policy
JEL Classification codes: E24, E31, E52

  MONEY: FROM STATISTICAL DEFINITION TO MONETARY POLICY FOR
                       ADOPTING EURO
Zăpodeanu Daniela

The evolution of monetary aggregates is closely related to the economic cycle, especially the
evolution of GDP. The study aims to analyse the primary monetary aggregates (M1), the
secondary (M2) and the tertiary (M3) in three Central and Eastern European countries:
Romania, Bulgaria and Poland. The countries were chosen as follows: Romania and Bulgaria
on the basis of the economic and geographical closeness and Poland as a benchmark for the
                                              127
first group. The data used are money supply, monetary aggregates: primary, secondary and
tertiary, in Romania, Poland and Bulgaria, for the period January 2004 - March 2011, the
monthly series are obtained from central bank websites, Poland's Central Bank and Bulgarian
National Statistical Institute. The evolution of monetary aggregates of the three countries was
compared with the Euro area and it was noticed a high degree of similarity between countries
more developed economically as compared to less developed countries. From the viewpoint of
optimum currency areas, it is necessary that the countries that adopt the Euro would respond
symmetrically to external shocks and also have similar economic behaviour. Our study aims,
in this respect, to analyse the components and the characteristics of the monetary aggregates,
as well as the trends existing within them. The analysis of the correlation between monetary
aggregates will show how the way in which the monetary mass and aggregates behave and
which the sense of connection established between these countries is. We find that Romania
and Bulgaria have a similar comportment, the correlation between these being the highest, we
observe some differences between Romania and Bulgaria versus Poland.

Keywords: Monetary Aggregate, Gross Domestic Product, Monetary policy, Euro Zone
JEL Classification codes: E52,E42




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                             SUB-SECTION: ACCOUNTING
EXAMINE THE PAST FOR GOING FURTHER: A LITERATURE REVIEW IN THE
                            FIELD OF FAIR VALUE
Andreicovici Ionela - Irina

The current study is part of the scientific approach being assumed at the beginning of the
Ph.D. as the theme "New valence of evaluation in accounting" under the guidance of prof.
univ. dr. Dumitru Matis. This article aims to realize a more comprehensive study of relevant
literature in accounting with fair value as the main subject. We have built our study attempting
to answer the following research questions: How much “fair value activity” has there been
since 2008? What research topics are being addressed? Who is leading fair value research?
What are the limitations of current research? To achieve our proposed objectives we analyzed
two databases (Science Direct and Business Source Premier) during 2008-2011, analyzing in
detail a total of 22 articles divided into five specific research directions: international
regulations on fair value accounting, fair Value Accounting and Financial Crisis, financial
reporting at fair value, the relevance of fair value and fair value versus historical cost.
With this research we try to see "what is known" in the field of fair value so far . In addition to
qualitative analysis which we performed to discover the interest of researchers in this field, we
conducted a quantitative analysis concerning the reported studies, being divided into research
themes, research methodology and year of the article publication. Quantitative research results
are those anticipated, that the most "fair value activity " took place in 2008 and 2009, surveys
having as main research theme international regulations on fair value accounting.

Keywords: fair value, literature review, research direction, databases
JEL Classification codes: M41

 ACCOUNTING AND CREATIVITY: A SOCIOLOGICAL AND PSYCHOLOGICAL
                          APPROACH
Balaciu Diana Elisabeta

This article presents aspects related to creativity in accounting. In our approach we started
from theoretical aspects regarding the position of accounting in the field of scientific
knowledge. The paper aims to justify these positions (as a language of communication,
communication tool, social game), and from there to mirror the way of expressing creativity in
accounting.
In terms of research methodology, we have appealed to a qualitative research inspired by
sociology and psychology.
The sociological survey shows the vision of society related to creators, the way in which it
admits or rejects them. The sociological approach allows us to understand the importance of
collective consciousness in assessing and maintaining the creation.
The psychological study regarding the creator describes a creature endowed with an excessive
sensitivity, accompanied by a worker with permanent activity, but who is constantly gripped
by an “existential doubt”. In conclusion, the consultant or the researcher will have to
recognise the creator‟s right to be wrong and surround him with a climate of confidence.
This paper shows that there is a path where the one who talks to numbers (and does not have
the skill of words) and those who possess the mastery of words actually meet.
This paper is part of the PhD research entitled: Identifying and motivation of creative
accounting practices – the case of Romanian listed companies, carried out under the guidance

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of PhD Prof. Feleaga Liliana, research carried out within the framework of the Bucharest
Academy of Economic Studies.

Keywords: language figures, social game, creative approach,creative accounting,humman
capital
JEL Classification codes: M 41

    CHALLENGES OF ENVIRONMENTAL ACCOUNTING AND TAXATION IN
                                     ROMANIA
Blidisel Rodica Gabriela, Popa Adina Simona, Farcane Nicoleta

Environmental problems that have arisen all over the world are concerning many controversial
aspects that were created due to the advance of industrialization in tandem with scientific and
technological development. For solving these problems, in the past 40 years many
international and national organizations have adopted a substantial and diverse range of
environmental measures aimed to improving the quality of the environment. Our research
aims to highlight how Romanian authorities face the problems regarding environment. To
accomplish our objective we trace two main directions of the study, firstly we conduct an
analytical investigation of green accounting regulations and secondly we describe the
environmental fiscal policy at national level and their impact on Romanian companies.

Keywords: environment, green accounting, fiscal policy, regulations
JEL Classification codes: M41

 INTELLECTUAL CAPITAL REPORTING AND DISCLOSURE IN THE ANNUAL
     REPORTS OF ROMANIAN MANUFACTURING LISTED COMPANIES –
                          THEORETICAL FRAMEWORK
Bogdan Victoria, Platon Judit, Farcaş Mariana

One of the most researched topic regarding financial reporting and disclosure of today is the
way intellectual capital or knowledge assets contributes to the improving of the quality of
information disclosed and create or add value to business performance. Also, it is
acknowledged that a company has access to a variety of tools for disclosing information on
intellectual capital. In our study we have decided to investigate the concept, the measurement
models and the intellectual capital disclosure practices using as the source of our
documentation books, articles, working papers and online publications. So, in the first part of
our research we have presented several points of view in respect to the concept of knowledge
assets or intellectual capital and in the second part we have reviewed the literature on the topic
highlightening several scholars opinion on reporting and disclosure issues.

Keywords: knowledge, intellectual capital, reporting practices, disclosure, annual reports
JEL Classification codes: M41, M10, G14, D83




                                               130
 INTELLECTUAL CAPITAL REPORTING AND DISCLOSURE IN THE ANNUAL
     REPORTS OF ROMANIAN MANUFACTURING LISTED COMPANIES –
                METHODOLOGY AND DISCUSSION OF RESULTS
Bogdan Victoria, Platon Judit, Popa Dorina Nicoleta

In our study we have proposed to measure the extent of intellectual capital disclosure using
annual reports as the source of our documentation. The empirical analysis is twofold: firstly
we are interested in analyzing the value of intellectual capital using a value-based approach,
through the evolution of market to book value ratio over the selected period and secondly we
carry out a content-based analysis of the complete annual reports of the selected companies
over the five year period and calculate an intellectual capital disclosure index. Looking at the
figures we can conclude that only 50% of Romanian manufacturing companies hold
intellectual capital assets for the period analysed and also they are mostly disclose information
that refers to relational capital. The intellectual capital voluntary disclosure index for the
2005-2009 years for the sampled companies is on average almost 19%, considered very low.

Keywords: knowledge, intellectual capital reporting, annual reports, listed companies,
disclosure
JEL Classification codes: M41, M10, G14, D83

                THE PROFIT TARGET IN A RESTAURATION UNIT
Briciu Sorin, Scorţe Carmen

The hospitality industry represents one of the most dynamic sectors of the contemporary
society, with an emphasised role in the process of globalization. Currently, the hospitality
industry does not only face the challenges of the economic crisis but the changes in the
market, the consumers‟ behaviour and the technological trends, too. That is why, in this time,
it is extremely important to apply the management accounting and the cost calculation in any
entity in the hospitality industry in order to cope with the market challenges.
The main services are performed through the hospitality industry: the accommodation and the
restauration. These services satisfy the vital needs of the tourists, but this industry must meet
other needs or requests such as the acknowledgement of the social status, the desire to know
other cultures or traditions, to spend free time in a pleasant manner etc.
Our intention and goal in the current article is to approach an image of the CVP analysis in the
decision making process with an emphasis on the restauration in the hospitality industry. In
order to cope with this critical time, the competition and to achieve the profits estimated, the
managers in the hospitality industry can apply the CVP analysis, one of the simplest and most
useful analytical instruments.
The paper will tackle with the problem of the break even point in a restaurant, one of the main
indicators of the CVP model and also the possibility of the decision making process
orientation.

Keywords: Prag de rentabilitate, Industria ospitalităţii, Restaurant, Profit ţintit
JEL Classification codes: M41




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    MANAGERIAL AND COST ACCOUNTING PRACTICES – A ROMANIAN
                                OVERVIEW
Cardos Ildiko Reka, Pete Ştefan

Research theme – Globalization and technological changes generates complexity both in the
business environment and the accounting systems. Under these conditions managerial
accounting needs to learn new practices in order to become an active consultant of
management.
Objectives – The main objective of this paper is to present how managerial accounting
changed over the years in Romania. We intend to present how the managerial accounting
system is implemented within Romanian organizations, to report the level of adoption of
traditional practices, tools and techniques, to identify to what extent contemporary managerial
accounting practices are implemented and used, and finally to identify whether managerial
accounting information is useful for business decisions.
Prior works – Over the years researchers from all over the world were interested in managerial
accounting changes and innovations, in managerial accounting practices, tools and techniques
adopted by organizations. On international level the study made by Pavlatos and Paggios
(2009) and on national level the study made by Jinga et al (2010) represents the starting point
of our study. Both research team conducted a study on managerial accounting practices and
the utility of managerial accounting information and found out that managerial accounting
information is useful for managers in the decision making process but traditional practices,
tools and techniques are used to “produce” this type of information.
Design/methodology – An empirical study was conducted in 2010 within Romanian
accounting professionals. A questionnaire was sent to a number of 1871 professionals
members of The Body of Expert and Licensed Accountants of Romania regarding managerial
accounting practices, tools and techniques adopted and implemented. Data obtained was
processed and analyzed with the help of descriptive statistics.
Results/findings – Romanian professionals consider that managerial accounting information is
useful for management in the decision making process but these information are” produced”
using traditional managerial accounting practices, tools and techniques are preferred by
Romanian organizations in the detriment of modern practices like activity based-costing or
target costing.
Implications – The results of our study represents a reference point for both researchers and
practitioners who are willing to carry on future research in the field of managerial accounting.
Originality/Value – This paper tries to fill a gap in the literature related to the Romanian
managerial accounting systems and practices. Moreover, it present an overview of managerial
accounting practices within Romanian companies giving the possibility to formulate
suggestions and proposals for its future development and evolution.

Keywords: managerial accounting, cost systems, practices, empirical survey, Romania
JEL Classification codes: M41- Accounting and Auditing

     HOW ROMANIAN FINANCIAL AND INTERNAL AUDITORS ACQUIRE
ACCOUNTING INFORMATION SYSTEMS KNOWLEDGE AND COMPETENCES?
Cardoş Vasile - Daniel

Research theme – in this article we investigate how Romanian financial and internal auditors
acquire accounting information systems knowledge and competences and how they use this
knowledge to improve their activity in order to fulfill their mission as required by the
professional standards.
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Objectives – our main purpose is to establish through what type of courses Romanian
financial and internal auditors acquiring accounting information systems knowledge and
competences and how useful these courses are perceived by the auditors.
Prior work – audit professional organizations prescribed that auditors must acquire, maintain
and develop their knowledge and competences. Information technology and information
systems are considered to be a main knowledge component of professional development
programs. The scientific literature indicates that auditors have to enhance their information
systems knowledge in order to cope with the increasing complexity of the client‟s entities
accounting information systems. We consider that our article embraces Curtis et al. (2009)
call for research on how auditors obtain information systems knowledge.
Methodology – an electronic questionnaire was created and sent to Romanian financial and
internal auditors, which were required to indicate the number of accounting information
systems course they attended and how the knowledge gained improved their activity.
Results – We concluded that financial auditors acquire accounting information systems
knowledge mainly by attending the courses organized by the Chamber of Financial Auditors
of Romanian, while internal auditors by attending the course organized by the companies they
are working with.
Implications - The results of this study might be used by Romanian professional audit
organizations in reconsidering their priorities regarding the accounting information systems
knowledge and competence needs of their constituents.
Originality/Contribution – Our study is the first one to investigate how financial and internal
auditors acquire accounting information systems knowledge.

Keywords: accounting information systems, auditors, knowledge
JEL Classification codes: M 42

PROFESSOR I.N. EVIAN-PRECURSOR OF ACCOUNTING SCHOOL FROM CLUJ
Crişan Teodora Viorica, Tiron Tudor Adriana

Our paper is about the history of accountancy in Romania, in Transylvania. We develop this
subject because we consider that is very important to know about the history of your own
country, and from our point of view about the history of accounting, which is a very important
component of nowadays life.
This work paper presents the history of the accountancy trought the study of biography. So by
describing the work of professor I.N. Evian, who was an important personality for the
accounting history in Romania, we want to found historical elements that are not so able to
see otherwise.
The article wants to highlight the impact that the work of professor Evian had in the history of
accounting in Romania. Also, by presenting the work of professor I.N. Evian in the context of
the Academy of High Commercial and Industrial Studies from Cluj, we want to prove that this
institution was the first form of higher education in Transylvania in the accountancy field.

Keywords: accountancy, history, personalities, accounting theories
JEL Classification codes: B10




                                              133
 ACCOUNTING FOR SUSTAINABILITY: WHAT NEXT? A RESEARCH AGENDA
Cunningham Gary M., Fagerstrom Arne, Hassel Lars G.

This working paper responds to increasing calls for more and different forms of accounting
research involvement in accounting for sustainability. It seeks to provide background, clarify
the accounting research issues, and suggest research methods. The background analysis
indicates that accounting for sustainability must go beyond supplemental reporting of
ecological and social information to include such emerging issues as integrated reporting of
sustainability information along with financial reporting. Additional emerging issues are
needs of users of sustainability reports, auditing and other assurance of sustainability
information, and sustainability implications of financial failure, accounting and auditing
failures, and lack of enforcement. Analysis of integrated reporting against traditional financial
accounting theory concepts of the purpose of financial reporting and the postulates of going
concern, reporting entity, monetary unit, and time period, indicates a need for substantial
changes in the traditional financial accounting model if sustainability issues are to be
integrated. The agenda concludes with five research issues and methods:
- An accounting research framework for sustainability using general systems theory
approaches that have been useful for similar emerging issues.
- Reporting of sustainability information which has been the focus of most research to date,
and the emerging important topic of integrated reporting.
- Users of sustainable information, their uses and perceived needs, an area that has been
largely neglected in research to date.
- Auditing and assurance issues that are taking on greater importance as more users demand
assurance for sustainability information. Issues include standards to be used and users
expectations and reactions.
- Financial distress and sustainability consequences of accounting and enforcement failures
that are just now being recognized as sustainability issues.

Keywords: accounting for sustainability, integrated reporting, needs of users, audit,
assurance
JEL Classification codes: M41, O16, M42

A LONGITUDINAL ANALYSIS REGARDING THE EVOLUTION OF PROFIT TAX
             REGULATIONS IN ROMANIA – AN EMPIRICAL VIEW
Cuzdriorean - Vladu Dan Dacian, Albu Catalin Nicolae, Albu Nadia, Fekete Szilveszter

The study conducted a longitudinal analysis regarding Romanian profit tax regulations.
Beginning with the first profit tax regulation implemented in 1991 and until now, we analyzed
based on a empirical approach all changes that have occurred over time in the Romanian
accounting environment. The motivation of the study conducted was based on the strong
relationship between accounting and taxation in the Romanian accounting environment over
time, the profit tax being one of the main items of this relation. This particular study is divided
into five sections. After a short introduction and presenting the motivation of the study
(section 1), in section 2 we conducted the literature review based on international and national
studies regarding the profit tax regulations through the relationship between accounting and
taxation. Section 3 presents a brief review of the main Romanian regulations that concerned
the profit tax and the most important changes that have occurred over time. In section 4 we
conducted the empirical analysis. In this section is realized a series of analysis, aiming the
following: (1) the total number of regulations that have amend the main regulations presented
in the previous section; (2) the type of amendments implemented over regulations
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(abolishment, text amendment, adding new articles or alignments); (3) the total number of
amendments approved by law without modifications, respectively the total number of
amendments approved on the Official Journal through Government Ordinance or Emergency
Ordinance and unapproved by law. The empirical analysis conducted documented that the
main shortcoming associated with the profit tax regulation is due by the multiple changes
which have been subject of the 5 main profit tax regulations. The last section (section 5)
consists in presenting the conclusions of the study. As main conclusion, the profit tax
regulation is stable only in terms of the small number of main regulations, the large number of
amendments creating difficulties in the understanding and application by practitioners.

Keywords: profit tax regulations, longitudinal analysis, Romania
JEL Classification codes: H25, H29, M40, M41

ENHANCING ASSETS' PROTECTION THROUGH AN ADEQUATE MONITORING
          OF INTERNAL CONTROL SYSTEM BY INTERNAL AUDIT
Dan Eugen Cosmin

The assets are established into a company as very important and strategic resources that are
contributing at the creation of the needed premises to conduct the daily-basis activity and also
to reach present and future planned objectives. Recent studies like COSO‟s Fraudulent
Financial Reporting 1998-2007 have highlighted an increasing fraudulent activity against
assets therefore the efforts of fighting against fraud must be supplemented in order to preserve
the existence and value of those resources. Internal controls are processes implemented in
order to give a reasonable assurance that the company will not become a fraud victim. Even
so, a lot of internal controls are paying a heavy tribute to their lack of efficiency and update.
Thus, for a correct functioning, internal controls must be monitored and assessed permanently
in order to preserve their strength and ability to fulfill their mission. This approach will deliver
more added value because rather than being corrected after they have already occurred, the
frauds related with the assets will be prevented, detected and reported at a timely moment,
thereby the incidence and value of those criminal activities will decrease significantly.
Furthermore, because not only the process of monitoring is important but even the entity
conducting this activity we believe that internal audit is the most appropriate to undertake this
responsibility. Thus, through this material we opened a discussion about how important
permanent monitored and updated internal controls are in order to assure a proper assets
protection and why internal audit, rather than the management, should be the most eligible to
undertake this responsibility. Also we provided some suggestions regarding the main
activities that must be taken into consideration by an internal audit professional when is being
involved in a monitoring process of internal control system. We do believe that this paper will
be the starting point for new discussions about the future activities and resources that must be
invested in order to assure that internal audit‟s independence, objectiveness and
professionalism will deliver a proper degree of security against frauds.

Keywords: internal audit, monitoring, internal control, assets, fraud
JEL Classification codes: M42




                                                135
 ISSUES RELATED TO THE ACCOUNTING TREATMENT OF THE TANGIBLE
                  AND INTANGIBLE ASSETS DEPRECIATION
Danciu Radu, Deac Marius

The issue of accounting depreciation is an older concern of this study‟s authors on the
incidence over the true and fair view of the earning and the net value of the non- current
assets. Proceeding from the consideration that the present depreciation methods, acknowleged
by the accounting standards and regulations are not sufficient to render the reality of the
irreversible impairment of the fixed assets nor that of the material and immaterial investment
recovery we performed a research on the indicators reported by 20 companies in Cluj county
and we applied a questionnaire to each entity on the depreciation methods used, their
incidence on the true and fair view and their proposals for the completion of the depreciation
methods.
The objective of the research is to identify the most appropriate depreciation methods,
truthfully illustrating the effects of the irreversible impairment on the net asset and on the
earning, to introduce the excluded assests in the cathegory of the non-current assets (like
property and plant, goodwill, intangible assets created with ones own strengths) and the
enforcement of appropriate treatments to the revaluation differences and their own overhead
investments.
The International Accounting Standard IAS 16 – Property, plant and equipment refers to three
depreciation methods: the straightline method, the diminishing balance method and the
technical depreciation method (units of production method). In Romania only two of these
methods are accepted: the straightline method, the diminishing balance method and the
accelerated method was additionally instilled, which is used internationally in exceptional
situations and not currently.
The results of the research led us to the following conclusions:
for the depreciation of the machinery, facilities and technological equipments it is
recommended to use the technical depreciation method or the units of production method;
taking into consideration the financial conception on the non-current assets the depreciation of
all cathegories of tangible and intangible assets is recommended, the purpose being the
gradual recovery of the investment in these assets and not the covering of the wear and tear or
obsolescence;
the surplus value resulted from the revaluation of the tangible assets musn‟t be depreciated
because it generates in fictional expenses;
the depreciation of the overhead assets musn‟t be acknowledged as an expense but it should
be treated as a reduction in the income resulting from fixed assets;
the completion of the depreciation concept with its financial meaning, namely the process of
recovering the investments in tangible and intangible assets;
The application of the research results leads to correcting the image provided by financial
reportings on the tangible and intangible assets contribution to the income, the depreciation‟s
reflection in the expenses and the net value of these assets.
The contribution of the authors consists in interceding to ensure the application of the research
results by modifying and completing the national accounting rules in order to achieve
accounting‟s consecrated objective: reproducing a true and fair view on the financial position
and performances. These issues have not been addressed in other specialty studies in the
country or abroad.

Keywords: irreversible depreciation, accounting depreciation, technical depreciation
depreciation, provision for positive reevaluation diferences
JEL Classification codes: M41, M42
                                              136
      STAGES OF DEVELOPMENT WITHIN THE ROMANIAN FINANCIAL
   ACCOUNTING SYSTEM IN TERMS OF LABOUR PROTECTION FOR THE
EMPLOYED WORKERS IN ROMANIA AND IN OTHER EUROPEAN COUNTRIES
David Delia, Pojar Daniela

This paper aims to highlight the main stages of development within the financial accounting
system for the protection of the personnel engaged in Romania and at the same time, to
compare it with the one of other European countries. The importance of the work consists in
identifying forms of social protection through the legislative framework in order to achieve a
diagnosis of Romanian social welfare. As a research model used in a particular study, the
methodology includes information accompanying theoretical basis and methods for it. This
paper contains a positivist tinge and it‟s constructive, going with the research‟s mainstream.
Of course, one aspect is not left out: the critical approaches to the accounting referential
standard concerning the protection of the staff in Romania as well as in Europe.
The foundation of the research is represented by the last decades‟ economic reality. The work
tries to find answers to the question: “How did the Romanian social protection develop and
which was its legal framework?” The research type is a deductive one which means that the
there‟s a way crossed from the general to the particular, starting from a theory which has as
purpose applying the prediction itself and, at the same time, assuring a wider range of
knowledge and being more operative. Information gathering was done through various
methods such as quantitative and qualitative research and the pieces of information presented
in this paper were collected from various sources such as published articles, books, legal
documents, all from the economical field. Afterwards, the collection of the pieces of
information was followed by data analysis. Having this as purpose, the following research
methods and techniques have been applied: cross-section (analysis protection staff at a time)
and longitudinal (protection of staff development in Romania), survey (protection of staff is
described, compared and explained in Romania and the European context), non-participating
observation (as statistical data) and analysis (collection, sorting and interpreting the
information in the protection of staff in Romania). Research results and general conclusions
concerning the information system for the protection of staff are listed at the end of the paper.

Keywords: social protection, stages of development, insured, labor code, social security
accounts
JEL Classification codes: M41, G01, K31

  PRINCIPLES- AND RULES-BASED ACCOUNTING DEBATE. IMPLICATIONS
                    FOR AN EMERGENT COUNTRY
Deaconu Adela

By a qualitative analysis, this research observes whether a principles-based system or a mixed
version of it with the rules-based system, applied in Romania - an emergent country - is
appropriate taking into account the mentalities, the traditions, and other cultural elements that
were typical of a rules-based system. We support the statement that, even if certain contextual
variables are common to other developed countries, their environments significantly differ. To
be effective, financial reporting must reflect the firm‟s context in which it is functioning. The
research has a deductive approach based on the analysis of the cultural factors and their
influence in the last years. For Romania it is argue a lower accounting professionalism
associated with a low level of ambiguity tolerance. For the stage analysed in this study (after
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the year 2005) the professional reasoning - a proxy for the accounting professional behaviour -
took into consideration the fiscal and legal requirements rather than the accounting principles
and judgments. The research suggest that the Romanian accounting practice and the
professionals are not fully prepared for a principles-based system environment, associated
with the ability to find undisclosed events, facing ambiguity, identifying inferred relationships
and using intuition, respectively working with uncertainty. We therefore reach the conclusion
that in Romania institutional amendments affecting the professional expertise would be
needed. The accounting regulations must be chosen with great caution and they must answer
and/ or be adjusted, even if the process would be delayed, to national values, behaviour of
companies and individual expertise and beliefs. Secondly, the benefits of applying accounting
reasoning in this country may be enhanced through a better understanding of their content and
through practical exercise. Here regulatory bodies may intervene for organizing professional
training programs and acting towards the improvement of the codes of conduct‟s
effectiveness.
Keywords: emergent countries, rules or principles-based system, IFRS
JEL Classification codes: M41, M48

  THE TRANSPARENCY IN THE REPORTING OF INTELLECTUAL CAPITAL:
BETWEEN THE MANAGEMENT RESPONSIBILITY AND THE STAKEHOLDERS'
                        REQUIREMENTS
Dicu Roxana-Manuela

The increasingly ample orientation of the companies towards the intellectual capital is based
on the rediscovery of this resource with (almost) unlimited potential, generating economic
benefits for a company. Given its importance, the information needs of stakeholders on this
line have increased. Thus, in this context, it was put the issue of reporting information related
to intellectual capital and the transparency of information published by companies, given that
its reporting is not currently regulated. The objective of this paper is to establish an answer to
a question: Up to what limit should be made public information related to this capital, given
that stakeholders want as much information, and managers only publish information that
favors the company's image? In addressing this issue, the point of departure is the intellectual
capital structure, most commonly found in the literature, namely human capital, structural
capital and relational capital. With this structure, the paper establishes, as a first step, a series
of relevant indicators relating to the three components from three different perspectives:
resources, management achievements and future expectations. At first observation, the
indicators are divided into two categories: financial and non-financial, the first ones targeting
the company's performance in relation to the components of intellectual capital, and the latter
ones having a pronounced social touch. Based on these indicators, the paper analyses whether
a company is willing to publish information, particularly those with social influence,
especially in the current conditions of intensely requested social responsibility. In addition to
documentary research, we also consider the most important findings based on existing
reporting arrangements of the companies, especially from the reports published by them,
depending on different criteria, such as social engagement, financial and accounting criteria
etc. Given the lack of clear regulations in this respect, it is up to the companies the amount of
information publicly provided about this topic, although the benefits of social responsibility
have an important impact on the intellectual capital and its components. In this context,
accounting helps stakeholders by proposing a valuation model of intellectual capital, based on
accounting figures. This financial assessment of intellectual capital, although very useful, is
limited and not sufficient in reflecting the image of a company in public reports. This paper
aims to present intellectual capital reporting valences, its two sides, financial (which includes
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the performance of the intellectual capital) and non-financial, including scoring the issues that
underline the importance of such reports, from the perspective of the stakeholders and the
accountability of the managers in relation to them.

Keywords: intellectual capital, transparency, stakeholders, human capital, intangible assets
JEL Classification codes: M11, M14, M41

     THE BUDGETARY POLITICS ON THE MANAGEMENT OF THE PUBLIC
                 RESOURCES THROUGH THE STATE TREASURY
Eftene (Ionescu) Nicoleta, Mihai (Andreescu) Gabriela

The birth of State Treasury facilitated the creation of better conditions and possibilities for the
organization of cash register execution accountancy of consolidated general budget
components, especially regarding the watching over collecting incomes, a better control on
payments and also to increase effectiveness and the accuracy of received information. The
treasury must become a leading institution on the financial line, through which it can
administrate and manage the public funds better.

Keywords: State Treasury, public institutions, public resources, consolidated general budget,
budgetary execution
JEL Classification codes: M41

     CORPORATE GOVERNANCE THE ROLE AND APPLICATION OF THE
                    PRINCIPLE OF TRANSPARENCY
Fulop Melinda Timea

The aim of the current research is to clarify the concept of „corporate governance‟ as we
believe it is a relatively new concept at national level. At the same time, our analysis focused
on the manner in which the principle of transparency has been incorporated into the
recommendations and regulations/provisions of the Bucharest Stock Exchange (Romanian:
BVB) and how this principle has been applied by the companies listed with the BVB. In order
to accomplish the objectives of our research, we adopted a deductive approach, from general
to specific, by means of which we were able to combine qualitative with quantitative studies.
Therefore, our approach started from the definition found within the principles of OECD
according to which „corporate governance‟ is the system by which companies are run and
controlled. In Romania, the concept of „corporate governance‟ was first advanced in 1999 by
the Strategic Alliance of the Business Associations (Romanian: ASAA), which drew up a
“Voluntary code of corporate governance” in association with the Confederation of Private
Entrepreneurs in Timiş county and the Chamber of Commerce and Industry of Romania and
Bucharest. Another facet of our research is the principle of transparency and the manner in
which entities should put it to practice in order to ensure efficient corporate governance. To
this effect, since the beginning of 2009 the entities listed with the BVB have been under
obligation to report which recommendations of the new Corporate Governance Code have
actually been implemented by the company in the current financial year by disclosing to BVB
the “Comply or Explain” Statement. The findings of our research show that the concept of
„corporate governance‟ has lately been a matter for intense debate due to the famous financial
failures in recent years. In 2009, Transelectrica was the only company in tier I of the BVB
which filled in and submitted the “Comply or Explain” Statement. Therefore, we believe that


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Transelectrica should serve as a fine example for the entities listed with the BVB as regards
the filling in and submitting of the said Statement.

Keywords: corporate governance, transparency, efficiency, recommendations, regulations
JEL Classification codes: M42, M48

 PREFERENCE OF THE LISTED ENTITIES REGARDING THE SELECTION OF
                           THE EXTERNAL AUDITOR
Fulop Melinda Timea, Tiron-Tudor Adriana, Şpan Georgeta Ancuţa, Popa Irimie Emil

The present research aims to highlight the importance of the external auditing in supporting
corporate governance and the preference of the listed entities to be audited by the big audit
companies. Given the proposed objectives of the research, our scientific method is based on a
deductive approach from general to particular that combines quantitative and qualitative
studies. The role of the external audit was analyzed by conducting a study of literature on two
levels: a theoretical–conceptual level in terms of economic theories and an empirical-practical
level based on literature from which we extracted through a content analysis the defining
elements of the audit work quality. Falling within the scope of the study, we evaluated the
preference of the listed entities to be audited by the Big Four. To this end we used the content
analysis of the publicly posted audit reports for the period 2005-2009. Our research results
show that although we are a country with an emerging capital market development, the
entities in the I-st category on the Bucharest Stock Exchange tend to an audit conducted by
one of the big audit companies. Another result arising from our study is that the entities of the
I-st category on the Bucharest Stock Exchange become more transparent from a year to
another. Whether for the year 2005 we find only 12 audit reports publicly posted, in 2007 we
can find 21 audit reports publicly posted. The trend of the large entities audited shows that the
preference of the entities to be audited by one of the Big Four is higher from a year to
another. The preparation of the financial statements and their audit must be done according to
regulations for the currently period. The presumption found in the literature according to
which the large entities are audited by the big audit companies which provide higher audit
quality is confirmed in the case of our national country as well.

Keywords: external audit, audit report, opinion, listed companies, Big Four
JEL Classification codes: M42, M48


      AUDIT EXPECTATION GAP IN THE PUBLIC SECTOR IN ROMANIA
Gherai Dana Simona

Theme – It is know that the large public and auditors hold different beliefs about the auditors‟
duties and responsibilities. In this conditions audit expectation gap represents that level of
expectation that remains uncovered. In this study paper, audit expectation gap represents the
difference between the achievements of public auditors and the expectations that general
public (students) have beyond those responsibility.
Purpose – The evolution of audit expectation gap has been examined in various countries, but
the extent of the concept has not been investigated so much in public area. This study attempts
to assess the perceptions of possible future auditors, students, regarding the existence of
expectation gap in public area.


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Literature review – A review of the literature identifies many researches who define the
concept since was given the first definition of audit expectation gap as the difference between
the levels of expected performance and the results that auditors give, but just a few analysis
the public area using students‟ knowledge to understand the perception of future users of
accounting information or potential bidders of accounting information.
Methodology – This paper represents the beginning of a broader study that will be part of the
doctoral thesis entitled “Organization and exercise of public audit in Romania”, started in
2009 at University Babes Bolyai from Cluj Napoca, coordinated by PhD Professor Matis
Dumitru. The aim of this paper is to explore the findings of an empirical study, made on 352
students, were the primary data used were obtained through a questionnaire technique
regarding the audit expectation gap in the public sector in Romania, looking into future to
obtain responses using a larger respondent group.
Findings – A reasonableness gap was uncovered, there is a gap between the expectation of
students regarding the public auditors' profession and their results and there are differences
between level of knowledge of the students regarding the statements in audit and the
expectation gap. Also there is a significant difference in perceptions of the role of the public
auditor in respect of fraud detection. The research will be extended to other users of
accounting information (accountants, executives, managers, bankers) to see their
understanding of the role of external public auditors, this we consider
Originality/value – This paper adds evidence to the important debate about expectation gap
from a region that has had little coverage. In Romania are just a few information regarding the
importance of education in reducing the audit expectation gap in public area. We try to draw
attention in two sectors that are left one side, education and public domain. A correlation
between these two, in the context of audit expectation gap will give some answers absolutely
necessary.

Keywords: audit, audit expectation gap, expected performance, education.
JEL Classification codes: M42

THE ROLE OF THE ACCOUNTANCY PROFESSIONAL BODIES IN DEVELOPING
                 SOCIAL AND ENVIRONMENTAL REPORTING
Gîrbină Mădălina, Albu Nadia, Albu Cătălin

In March 2010, the European Commission renewed its strategy to promote Corporate Social
Responsibility in order to ensure long term employee and consumer trust. Corporate Social
Responsibility is considered more relevant in the context of the economic crisis because it can
help to build (and rebuild) trust in business and to identify new forms of value creation based
on addressing societal challenges, which may represent a way out of the crisis. A priority area
is repesented by companies‟ transparency on environmental and social issues.
This research aims to assess the involvement of the professional accountancy bodies in the
development of social and environmental reporting. After a review of research studies on
corporate social and environmental disclosure and the role of the accounting profession in this
context, the research identifies the strategies, policies and actions taken by the International
Federation of Accountants (IFAC) and of the Federation of European Expert Accountants
(FEE) based on content analysis of public documents issued by the two bodies. The cases
were selected having the influence exerted by the two organisms on other professional bodies
and their ability to trace the strategic lines of the accounting profession at the international and
European level.
The basis upon which the accounting profession was founded and continues to exist is public
trust, which is the degree to which the public has confidence in the services provided by the
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accounting profession. Society is currently expressing high demands on the discipline of
accounting and therefore the profession is under pressure to expand its horizons to better
reflect these demands.
The research revealed that both accounting bodies had an intense activity and initiated
political actions in the corporate social and environmental reporting field including
sustainability in their strategic objectives. The following areas of involvement have been
identified: issuance of assurance, education and ethics standards (in the case of IFAC which is
also regulator), educational and web materials, participation in working parties, cooperation
with other organisations in the development of reporting and assurance standards, research
projects to support decision making, encouraging member bodies to develop similar policies,
public statements inviting responsible parties to act. Based on its conclusions the study
identifies some research directions to be developed. Academic and professional curricula of
Romanian accountants could be analysed in order to determine how they could be improved in
order to respond better to these societal requirements.This study identifies the political actions
of main profesional bodies (IFAC and FEE) that might influence the actions of other bodies
and future profile of accountants.

Keywords: Social and environmental reporting, accountancy profession, professional bodies
JEL Classification codes: Q 56, M4, M2

 IMPLICATIONS OF THE APPLICATION OF IFRS FOR SMES IN ROMANIA ON
                   TAXABLE AND DISTRIBUTABLE PROFIT
Gîrbină Mădălina, Albu Nadia, Albu Cătălin

On 9 July 2009, the International Accounting Standards Board (IASB) issued the International
Financial Reporting Standard for Small and Medium Sized Entities („IFRS for SMEs”) which
aims to provide a financial reporting framework for SMEs falling within its scope. It is a
matter for authorities in each jurisdiction to decide which entities are permitted or required to
apply IFRS for SMEs. Because of the connection between accounting and taxation certain
european countries had a reluctant position related to the application of IFRS for SMEs.
Opponents focused on the incompatibility between IFRS for SMEs framework and the
principles commonly accepted for tax purposes.
As the individual financial statements drown up in compliance with IFRS for SMEs will serve
for profit distribution under the 2nd European Directive the question arises weather the profits
determined under these accounting rules can be considered as realized for distribution
purposes. In order to mitigate the mismatch between accounting and distributable profits,
Member States will need to reconsider the circumstances in which gains and losses arising
from re-measurement at fair value through profit and loss should be considered as realized.
In this scenario, two important questions arise: What are the potential tax effects of the
application of IFRS for SMEs? Is the profit determined under IFRS for SMEs available for
distribution or some adjustments are necessary? The paper addresses these issues in the
context of the Romanian accounting and taxation systems. Romania represents a relevant case
study, as it is one of the European countries with a close linkage between financial and tax,
where the fiscal profit is dependent on the accounting profit (currently determined under
domestic regulations).
The methodology consists in a comparative analysis of the recognition and measurement rules
between national accounting regulations and IFRS for SMEs in order to identify the
differences with possible consequences on taxable and distributable profit.
The comparative analysis identified tensions between accounting and taxation that should be
solved and new accounting policies with impact on taxable and distributable profit. Under
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these circumstances regulators should analyse if new policies proposed by IFRS for SMEs are
acceptable considering the purpose of specific regulations and modify the legal framework.

Keywords: IFRS for SMEs, taxable profit, distributable profit
JEL Classification codes: M 40, M 41, M 48

    STUDY REGARDING THE INFLUENCE OF ROMANIAN ACCOUNTING
         REGULATIONS ON CREATIVE ACCOUNTING TECHNIQUES
Groşanu Adrian, Răchişan Paula Ramona, Berinde Sorin Romulus

The main objective of this paper is the analysis of Romanian accounting regulations and the
identification of the impact they have on creative accounting techniques. Also, we shall
investigate the influence some of these creative accounting techniques have on the true and
fair value. Basically, we desire to answer the question: to what extent is being affected the true
and fair value reflected within the financial statements of a certain entity by appealing to
creative accounting. At international level there are several papers having as subject creative
accounting, most of them emphasizing the negative role it has upon achieving the true and fait
view. The papers that analyze creative accounting techniques in Romania are rather few,
reason to start studying the extent to which Romanian accounting regulations allow the use of
creative accounting techniques. We shall use the experience comprised within papers
published at international level in order to substantiate an objective analysis of creative
accounting techniques in Romania and of the impact they have on true and fait view. Being
familiar with the creative accounting techniques is equally useful to the entire palette of
accounting information users, including the researchers, for one can quantify the positive or
negative impact they have on the true and fair value. One can bring suggestions to modify the
accounting regulations, if some creative accounting techniques affect the legitimate interests
of certain accounting information users. Also, one can perform analyses regarding the
situation of this field in Romania in comparison with the existent situation in other countries.
The paper's originality is given by the study on the impact of applicable accounting
regulations in Romania on creative accounting techniques. There are very few studies in this
field in our country and we appreciate that it would be a useful source for the accounting
information users. Also, the usefulness of this study is given by the suggestions concerning
the instruments to identify the creative accounting techniques that have a negative role on
financial statements, so that they would keep their relevance and credibility for the users of
accounting information.

Keywords: creative accounting, true and fair value, regulations, corporate governance,
financial statements, flexibility
JEL Classification codes: Accounting and Auditing: General M40; Government Policy and
Regulation M48

 ENVIRONMENTAL REPORTING AT INTERNATIONAL LEVEL (STUDY OF THE
                        LITERATURE)
Ienciu Ionel-Alin

One of the most important areas of development during the last 15 years, as far as accounting
is concerned, has been the environmental reporting and accounting, generating interests
beyond the restrictions imposed by purely academic discussions or the professional
accountants community. The objective of the paper is represented by the analysis of scientific
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knowledge and existing practices in the area of environmental reporting. Mathews (1997,
2001) and Parker (2005) are one of the most representative studies that examine the evolution
and status of researches in the area of accounting and environmental reporting. Because of the
fact that reports offered by the traditional financial accounting system are insufficient for
reflecting a clear and complete image of the company's environmantal impact, I monitored the
frameworks or mechanisms of environmental information. Also, the paper analysis the articles
treating international environmental reporting, articles publised in ISI quoted or BDI indexed
journals. The collection and analysis of reporting frames, the interpretation and analysis
thereof represent the main instruments used in order to bring to the forefront the main existing
reporting frames for environmental information, found at international level. The quantitative,
applicative research is used to reflect the current status of researches in the field of
environmental reporting, using the non-participative observation to reflect the current status of
researches in the field of environmental reporting, by using the non-participative observation,
the collection and analysis of articles as main research instruments. The study concludes that
environmental reporting continues to represent the main attraction of researchers in the field
of environmental accounting. The main reason for researches on environmental reporting is
represented by the description, investigation and improvement of practices on accounting and
reporting environmental impacts. Although the complexity of researches and existing
international and European reporting frameworks have contributed to creating the required
premiss for introducing the environmental accountability international standards and
regulations, they delay their appearance. The study add value to the existing literature in the
field of environmental reproting by presenting and analysing environmental reporting
frameworks and important papers that analysis environmental raporting practices.

Keywords: environmental reporting, reporting framework, analysis of literature, applicative
research, environmental accounting
JEL Classification codes: M49, Q56

 EVALUATION OF ENVIRONMENTAL REPORTING FOR COMPANIES LISTED
                  ON THE LONDON STOCK EXCHANGE
Ienciu Ionel-Alin

Environmental aspects have become significant for an increasing number of companies and
can have, under certain circumstances, a significant impact on financial statements. A large
number of studies can be outlined in time analyzing the variation of environmental reporting
(Deegan et al, 2002; O‟Donovan, 2002; Holland and Foo, 2003; Nyquist, 2003; Cormier et al,
2005; Yusoff et al, 2006; Jorgensen and Sodorstrom, 2006; Taylor and Shan, 2007; Sumiani et
al, 2007). The main objective targeted by this study is the evaluation of environmental
reporting for the European companies listed on the London Stock Exchange. In order to
achieve the proposed objective, we have completed an longitudinal and transversal analysis of
environmental reporting within companies listed on FTSE 100, monitoring first of all the way
in which these companies report non-financial and financial aspects related to environmental
impact as well as how these reports are being audited. For each annual statement or
sustainable report, we have analized the level of environmental reporting. The evaluation of
how information on environmental impact are being reported is based on four categories of
information: information on indicators (technical, financial) that would reflect the
environmental impact (water, air, soil), information regarding the financial indicators
(investments, assets and other environmental costs, debts and provisions), non-financial
information (related to the company‟s comitment, objectives, programs, management, future
perspectives etc), information on environmental audit. Analysing the results we have obtained,
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the following can be outlined a certain increasing trend on the level and relevance of
environmental information supplied for the companies listed on FTSE 100. Only 22 of the
analysed companies are reporting the environmental performance indicators recommended by
accredited bodies such as the GRI Guidelines (the most complex guidance in this respect). 20
of the 48 analysed companies have audited such information, thus increasing the relevance of
this type of information. The paper contribute to the understanding of environmental reporting
at international level, creating an image of the quality of environmental informations provided
by the most representative companies at international level.

Keywords: environmental reporting, companies, London Stock Exchange, applicative
research, environmental aspects
JEL Classification codes: M49: Other

 A RETROSPECTIVE OF EVALUATION MODELS ON INTELLECTUAL CAPITAL
Ienciu Nicoleta Maria

In the classical theory of economics, capital is one of the three factors of production, in
addition to land and labor, and refers in particular to buildings, equipment, and machinery
etc., used for the production of other goods (the term physical capital is also used by the
specialized literature) (Brătianu & Jianu, 2006). The present study intend to bring to the
forefront the main evalluation methods for intellectual capital, as proposed, supported and
criticized at the same time by researchers and practitioners. The study offers response to the
following research questions: Which are the advantages and disadvantages of the intellectual
capital evaluation methods? And what are the main studies approaching the subject of
intellectual capital evaluation at international level? The collection and analysis of intellectual
capital evaluation models and the non-participative observation are the main instruments used
to bring to the forefront the main international existing evaluation frameworks. The
information sources representing the base for these researches are especially constituted by
articles published in specialized magazines, both from accounting and economics fields,
specialized works relevant to the reference field, legislative documents, official documents,
press releases and other documents issued by various national and international bodies. The
most representative studies bringing to the forefront the evaluation of intellectual capital are
the ones elaborated by Mouritsen et al (Mouritsen et al, 2001), Manea and Gorgan (Manea
and Gorgan, 2003), Tayles (Tayles, 2002), Tayles et al (Tayles et al, 2007). The presented
approaches offer a general idea on the range of methods, disciplines and operational
specializations existing for the evaluation of intellectual capital. Only one of them - Balanced
Scorecard – is largely used, while the rest of the methods remain too theoretical or too poorly
developed to be universally accepted. We believe that the efforts from the regulation and
standardization bodies in the view of intellectual capital evaluation are too small, despite the
fact that community shows an increased interest in this sense, many companies being tempted
to build their own system of evaluating performances with regards to intellectual capital.

Keywords: intellectual capital, evaluation models, companies, Balanced Scorecard,
international level
JEL Classification codes: M49: Other




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  THE DEPRECIATED REPLACEMENT COST - REPRESENTATION OF FAIR
    VALUE IN ACCOUNTING. TENDENCIES AND PERSPECTIVES IN THE
                   ROMANIAN ACCOUNTING PRACTICE
Manea Marinela-Daniela

The Romanian accounting system has gone through a radical reform in the last years, but the
preoccupations for improving and developing Romanian accounting still continue. In order to
preserve the general objective of rendering available to financial managers and analysts a
common internationally agreed framework for drawing up and presenting financial
statements, accounting professionals have the duty to contribute to the elaboration of
accounting policies capable to transform accounting in an essential leadership instrument.
Under these circumstances, there is the attempt to identify a dialogue form between
accounting norms and policies, between the freedom to choose accounting procedures and the
obligation to provide users with credible relevant information. The present work aims to make
a thorough analysis of fair value adjustment – version of the depreciated replacement cost –
which is specific to specialized corporal immobilized assets seldom commercialized on the
market, by starting from the approaches and concepts existing in specialized literature, while
afterwards it will carry out a comparative study between normative provisions and the
concrete reality of Romanian accounting practice. Aware that fair value adjustment represents
the profession of assessment experts, the presents work aims to present the potential models
for quantifying fair value, which is an useful information basis for accounting professionals
who have one more instrument at their disposal, for effectively and practically applying IRFS
norms.
Acknowledgement: This work was cofinanced from the European Social Fund through
Sectorial Operational Programme Human Resources Development 2007-2013, project number
POSDRU/1.5/S/59184 “Performance and excellence in postdoctoral research in Romanian
economics science domain.”,institution:“Alexandru Ioan Cuza”University of Iaşi, period:
01.11.2010 – 30.04.2013, tutor: Ph.D. Professor Vasile Cocriş

Keywords: device method, cost method - capacity, wear and tear, life span, reproduction cost
JEL Classification codes: M41

   THE PLACE OF THE EMERGING ECONOMY OF ROMANIA INSIDE THE
       EUROPEAN UNION ECONOMIES IN TERMS OF FTSE CRITERIA
Mardiros Daniela-Neonila

The importance of this research lies from the need to know the economies developed,
emerging and frontier of the European Union and the mode of their manifestation according to
the market indicators. Consequently, we had in mind a presentation of the economies in the
categories mentioned above framed in terms of market criteria used by FTSE Group, a
provider of stock market indices and associated data services. Using data from a series of
reports published by FTSE we made an analysis of how each of the considered economies and
in particular Romania, acts according of these. Was taken into consideration criteria as:
market and regulatory environment (formal stock market regulatory authorities actively
monitor market; fair and non-prejudicial treatment of minority shareholders; non or selective
incidence of foreign ownership restrictions; free and well-developed equity market; no
objections or significant restrictions or penalties applied on the repatriation of capital; free and
well-developed foreign exchange market; non or simple registration process for foreign
investors); custody and settlement (settlement-rare incidence of failed trades; custody-
sufficient competition to ensure high quality custodian services; clearing & settlement; stock
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lending permitted; settlement-free delivery available; custody-omnibus account facilities
available to international investors); dealing landscape (brokerage-sufficient competition to
ensure high quality broker services; liquidity-sufficient broad market liquidity to support
sizeable global investment; transaction costs-implicit&explicit costs to be reasonable and
competitive; short sales permitted; off-exchange transactions permitted; efficient trading
mechanism; transparency); derivates (developed derivatives market). The final part of the
paper is reserved to the understanding of the mode in which each of the considered economies
of the European Union, including Romania and regardless of what category they belong
(developed, emerging or frontier economies) behave in relation to the above criteria used by
the FTSE in relation with the market quality. In terms of research methodology, this took into
account the data collection through the observation method. This method use, as research tool,
the observation guide. We have also had regard to the proper definition of the concepts and
their operationalization in order to bring to the fore a number of relevant indicators for the
economies of the European Union.

Keywords: FTSE group, emerging market, frontier market, market criteria
JEL Classification codes: G10, O 52

 THE IMPACT OF IFRS ON REPORTING FOR BUSINESS COMBINATIONS: AN
   IN-DEPTH ANALYSIS USING THE TELECOMMUNICATIONS INDUSTRY
Mario Carrara, Diogenis Baboukardos, Cunningham Garry M., Hassel Lars G.

The mandatory use of IFRS by all publicly listed companies in the European Union created
challenges for accounting and reporting of business combinations, goodwill impairment and
disclosures for these items. Major issues are allocation of amounts to goodwill and specific
intangible assets arising from acquisition. This study presents an in-depth exploration of
compliance with IFRS 3 and IAS 36 using content analysis methodology of annual reports of
eight European telecommunications that were chose because the industry is well known for
significant acquisitions involving intangibles. The results show only partial compliance with
little change over the four year period since mandatory IFRS adoption. While results cannot
be generalized outside this group, the in-depth analysis yielded important insights for
continued research using broader research methods.

Keywords: IFRS, business combinations, goodwill, content analysis, annual reports, listed
companies
JEL Classification codes: M41, M21, G34

    RECENT DEVELOPMENTS OF THE FINANCIAL REPORTING MODEL:
                      THEORETICAL STUDIES IN REVIEW
Matiş Dumitru, Bonaci Carmen Giorgiana

Our paper analyzes the manner in which the financial reporting model evolved towards fair
value accounting. After a brief introduction into the context of financial reporting at
international level, the analysis focuses on the accounting model of fair value. This is done by
synthesizing main studies in accounting research literature that analyze fair value accounting
through a theoretical approach. The analysis being developed relies on literature review
methodology. The main purpose of the developed analysis is to synthesize main pros and cons
as being documented through accounting research literature. Our findings underline both the
advantages and shortcomings of fair value accounting and of the recent mixed attribute in
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nowadays financial reporting practices. The concluding remarks synthesize the obtained
results and possible future developments of our analysis.

Keywords: fair value, accounting research literature, mixed attribute, pros, cons
JEL Classification codes: M41

 PROFESSIONAL JUDGMENT AND CREATIVE ACCOUNTING UNDER IFRS IN
             EX-COMMUNIST COUNTRIES: CASE OF ROMANIA
Megan Ovidiu

The accounting rules from each country evolve in time in order to respond the social, cultural
and economical environment needs. After some communist countries (as Romania, Bulgaria,
Poland, Hungary, Czech Republic, Slovenia, Estonia, Lithuania, s.o.) joined the European
Union an important number of local companies became to apply accounting regulation
according with International Financial Reporting Standards (IFRS).
This paper surveys the theoretical and empirical literature on the possible risks for companies‟
management from ex-communist counties by applying (mandatory or voluntary) International
Financial Reporting Standards reporting regulation and professional judgment.
Under the pressure of economic globalization all the ex-communist countries ware obliged to
adopt International Financial Reporting Standards in the field of accounting. The main
objective of this paper is to find out from the experience of different companies who already
adopted IFRS which are the risks related to professional judgment application under IFRS on
the financial statement users.
As research methodology we integrated theoretical and empirical studies from accounting and
law (especially from Romanian experience) in order to contribute to the cross-fertilization of
our field of interest.
As final results of our paper we find that the biggest risk of applying professional judgment
prescribed by IFRS in ex-communist countries is to appear different creative accounting
techniques which influence in a negative way the decision-making process for the financial
statements users. During worldwide financial crisis the majority of Romanian companies tried
to use in the most appropriate way the professional judgment in order to arrange their
financial reports and to save company‟s money (in relation with local government) or to show
higher performance (in relation with financial institutions) for the fund-raising process
We identified several motivations including the existence of tax levies based on income,
confidence by shareholders and workers in management that is able to report stable earnings
and psychological expectations relating to increases or decreases in anticipated income.

Keywords: professional judgment, IFRS, globalization, creative accounting, risk
JEL Classification codes: M41 - Accounting

  THE BUDGET, ITS THEORETICAL FUNCTION AND IMPLEMENTATION IN
                       THE PUBLIC CULTURAL SYSTEM
Mihai (Andreescu) Gabriela, Ionescu (Eftene) Nicoleta, Vatasoiu Cristian Ionel

This article covers the budget‟s functions, providing a double reading, both theoretical and
practical, as it intends to perform a theoretical synthesis of the ways in which the budget is
used and implemented in the case of a public cultural institution. The article is intended to
answer the following research question: which are the ways of using the existing budget that
may exist within a public cultural institution? The source of this research is the authors‟
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interest for the control of the organizations in the cultural field, which has lead to the
formulation of the following practical questions: which are the proper instruments for the
control of such organizations? And mostly, which are and which could be the budget‟s
functions – a central controlling instrument?
We have focused our attention on a case of exhibition organizing public institution, the type of
organization which crystallizes in an exemplarily manner the particularities of cultural
organizations as well as any control decelerators which may occur.
At a first stage of our research, we have made two interviews with the Museum‟s financial
manager in charge of the exhibition organization. The first interview was based on a grid
regarding the administration system in general and the administration instruments privileged
within the organization. In the light of this interview and of the research literature for the
control of this type of organization, we have focused our attention on the issue of the budgets‟
role. The second interview focused mainly on budgets. At a second stage of our research, the
analysis of internal documents allowed us to identify better the elaboration of a cultural
organization‟s budgets and to discover the similarities and singularities as compared to the
budgets of the companies outside the cultural sector.
In a paradoxical manner, the article ends with the advantage of using an instrument based on a
„rigid” framework and coded within the cultural organizations analyzed, while having a
creative and progressive trend.

Key words: budget, control, cultural institution, administration instruments, budget’s
functions
JEL Classification codes M41

    AUDITOR ROTATION – A CRITICAL AND COMPARATIVE ANALYSIS
Mocanu Mihaela, Ştefănescu Aurelia, Ţurlea Eugeniu

The present paper starts out from the challenge regarding auditor tenure launched in 2010 by
the Green Paper of the European Commission “Audit Policy: Lessons from the Crisis”.
According to this document, the European Commission speaks both in favor of the mandatory
rotation of the audit firm, and in favor of the mandatory rotation of audit partners. Rotation is
considered a solution to mitigate threats to independence generated by familiarity,
intimidation and self-interest in the context of a long-term audit-client relationship. At
international level, there are several studies on auditor rotation, both empirical (e.g. Lu and
Sivaramakrishnan, 2009, Li, 2010, Kaplan and Mauldin, 2008, Jackson et al., 2008) and
normative in nature (e.g. Marten et al., 2007, Müller, 2006 and Gelter, 2004). The objective of
the present paper is to perform a critical and comparative analysis of the regulations on
internal and external rotation in force at international level, in the European Union and in the
United States of America. Moreover, arguments both in favor and against mandatory rotation
are brought into discussion. With regard to the research design, the paper has a normative
approach. The main findings are first of all that by comparison, all regulatory authorities
require internal rotation at least in the case of public interest entities, while the external
rotation is not in the focus of the regulators. In general, the most strict and detailed
requirements are those issued by the Securities and Exchange Commission from the United
States of America. Second of all, in favor of mandatory rotation speaks the fact that the
auditor becomes less resilient in case of divergence of opinions between him and company
management, less stimulated to follow his own interest, and more scrupulous in conducting
the audit. However, mandatory rotation may also have negative consequences, thus the debate
on the opportunity of this regulatory measure remains open-ended.

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Keywords: independence, financial audit, familiarity, rotation
JEL Classification codes: M40

EVIDENCE FROM THE GERMAN CAPITAL MARKET REGARDING THE VALUE
 RELEVANCE OF CONSOLIDATED VERSUS PARENT COMPANY FINANCIAL
                         STATEMENTS
Muller Victor - Octavian

Financial statements‟ main objective is to give information on the financial position,
performance and changes in financial position of the reporting entity, which is useful to
investors and other users in making economic decisions. In order to be useful, financial
information needs to be relevant to the decision-making process of users in general, and
investors in particular. Hence, the following question arises logically – which of the two sets
best serves the information needs of investors (and other categories of users), respectively
which of the two sets is more relevant for investors? Of course, the possibility of both sets at
the same time best serving the information needs should not be ruled out. In our scientific
endeavor we conducted an empirical association study on the problem of market value
relevance of consolidated financial statements and of individual financial statements of the
parent company, searching for an answer to the above question. In this sense, we analyze the
absolute and relative market value relevance of consolidated accounting information of listed
companies on the Frankfurt Stock Exchange (one of the largest three stock markets in the
European Union) between 2003 and 2008. Through this empirical study we intend to
contribute to the relatively limited literature on this topic with a comparative time analysis of
the absolute and incremental relevance of financial information supplied by the two categories
of financial statements (group and individual). The results obtained indicate a statistically
significant superiority of the relevance of consolidated statements (in detriment of individual
ones). However, we could not statistically prove a superior value relevance of information
provided together by consolidated and parent company financial statements as opposed to
consolidated information. On the one hand, these results prove the importance (usefulness) of
consolidated financial statements especially for investors on the capital market, and on the
other hand, they question the necessity of publishing parent company financial statements.

Keywords: Consolidated Financial Statements, Parent Company Financial Statements,
German Capital Market, Market Value Relevance
JEL Classification codes: M40, M41

HOW TO BETTER MEET OUR STUDENTS’ LEARNING STYLE THROUGH THE
                            COURSE RESOURCES
Mutiu Alexandra, Moldovan Georgeta

Publishers of the course resources for business higher education are willing to help professors
and instructors to develop the learning process. An important part of the learning process is
affected by the each student‟s learning style. Our paper focuses on how meeting students‟
learning styles can be done through the course resources we use. The scope of the paper is to
identify a way to link students‟ learning preferences with the available course resources. The
literature on this topic is limited, the interest in research being focused less on resources used
and their useful diversity. We heavily relied in our research on the preliminary results of a
market research study conducted by the Higher Education Group from Harvard Business
                                               150
Publishing among instructors who use resources from Harvard Business School‟s library. The
research methodology is based on the case study method. We tried to recommend a treatment
to our students and then analyze the effect of the applied treatment. The main instruments
used are the VARK test followed by tailored recommendations for each student. The first
conclusion of the research is that identifying the learning styles is extremely useful for
students in terms of learning process. Knowing and exploiting their particular learning style
helped students to maximize their learning. The second conclusion is that recommending
resources based on learning styles is useful because it really helps students to learn in their
own styles. The results of our paper show, firstly, that learning process could be facilitated by
professors‟ directly identifying students‟ learning styles. Secondly, our findings underline the
importance of having a diversity of resources available for our students, and to be able to offer
them a constructive solution regarding their learning styles. Moreover, our contributions are
reflected in the methodology we used in linking the learning styles with the course resources
and in building our personal approach in issuing our students individual recommendations on
study strategy based upon their learning styles.

Keywords: learning process, course resources, learning styles, VARK test physiological
dimension of learning
JEL Classification codes: M49

             CONCEPTUAL DELIMITATIONS OF CONTROLLING
Nedelcu Şerban

Since the practicians of controlling in Romania only know the toolkit they use and not the
theoretical elements as well, what is needed in this case is a conceptual delimitation so that
controlling would be better implemented, and improved with various elements of the
economic environment. In practice, inside various linguistic areas different problems of
communication may occur very often in regards to the use of different concepts that may be
missunderstood. Therefore in the Romanian research area it becomes imperative to try and
clarify the existing issues and to intensify the reasearch in this field. Studying the evolution of
the concept we observe that the need for its implementation is primarily experienced at the
practical level of the companies, to be then followed by a debate in the specialized literature.
The internationalization and the fierce competition that the Romanian companies are
confronting on the ecenomic market represent the decissive factor in adopting the concept of
controlling. This article is part of the research conducted for my doctoral thesis, "Controlling
in hetergenous economic envirnoments", under the coordination and supervision of
Prof.Dr.Dumitru Matiș

Keywords: Controlling, Management Accounting, Management Control, Accounting, Internal
audit
JEL Code: M49

  FREE CASH FLOW AS PART OF VOLUNTARY REPORTING. LITERATURE
                                    REVIEW
Negrea Laura Georgeta, Matiş Dumitru, Mustaţă V. Razvan

The present study has as main objective to reflect the state of literature regarding free cash
flow, and to withdraw the main pro‟s and con‟s in order to create an objective image upon this
indicator. The main idea generating this research was the growing interest on cash flow
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reporting. As many say, “Cash Flow is King”, while in Anglo Saxon countries the interest of
investors and analysts in concentrated on operating cash flow, as the most important indicator
of the probability of bankruptcy. In this context, voluntary additional reporting, like free cash
flow may come either as an aid in providing the fair view or as an opportunistically reported
figure. Throughout the paper, the intention was to provide answers to three main research
questions: “What are the definition and calculation method of free cash flow? Why is there an
interest in free cash flow reporting? What is the impact of free cash flow on the agency
theory?” In order to provide relevant conclusions, four international data basis were used, and
related articles and studies were extracted. The results proved that there is no generally
accepted definition and computing method, while the format depends on the end-user of the
report (shareholders, investors, analysts, bankers, a.s.o.). As stated below, this aspect
generates confusion and lack of comparability, giving room to creative accounting techniques.
Moreover, the interest on free cash flow reporting is connected mainly to liquidity assessment,
company valuation and investors‟ choice. Still, in the context of agency theory, results show
that in presence of high free cash flow, managers tend to make investment choices that satisfy
their personal interest and that generate low efficiency and profitability for the company. The
contribution to current state of research is providing a literature review study, focused on a
comparative approach, as well as on underlying an objective image upon a debatable financial
indicator and accounting report.

Keywords: free cash flow, reporting, management, agency theory, creative accounting
JEL Classification codes: M41

          CASH FLOW REPORTING AND CREATIVE ACCOUNTING
Negrea Laura Georgeta, Matiş Dumitru, Mustaţă V. Razvan

Within the wide field of creative accounting, the main preoccupation of researchers
surrounded earnings management. The current study comes to acknowledge that creative cash
flow may distort the assessment of financial performance and should therefore, become a
subject of the same interest for analysts and investors, as earnings management is. In order to
reach the objective proposed, there are two hypotheses formulated, to be validated within the
research: H1: Creative accounting distorts cash flow reporting within the boundaries of
current regulations. H2: Real activity manipulation alters significantly the operating cash
flow. The steps followed were analyzing the accounting standard related to cash flow
statement, IAS 7, in order to uncover issues not taken into account, or options of allocation
provided for accountants, which could lead to opportunistic choices and lack of comparability.
The relevant literature was reviewed, so as to identify the opinions of accounting and finance
specialists related to this subject, the results of their scientific process. The final step was a
synthesis of relevant results and observations, which lead to the acceptance of the hypothesis
of the research. Moreover, several techniques were identified, both related to creative
accounting and to real activity manipulation, influencing mainly the figure reflecting
operating cash flow, and thus the image on the potential of business continuity. Main
conclusions were that the techniques applied were within the limits set by the standard:
opportunistic allocation of dividends and interest collected or paid misallocation of certain
activities like sale of receivables, but mainly recording non-recurring events into the operating
cash flow, without separate notes of information or adjustments. Real activity manipulation
should also be considered as it is even more difficult to detect, unless analysis is also
performed on notes to financial reports and the figures within the profit and loss account. The
contribution of the current study is providing a synthetic arrgumentation to why cash flow
should be analysed in the context of creative accounting, reviewing methods and techniques
                                                152
that distort significantly the results of operating activity, providing basis for further study
related to the impact of such practices on forecasts of cash flow and predictability of
bankruptcy.

Keywords: operating cash flow, creative accounting, non-recurring activity, IAS 7, financial
performance
JEL Classification codes: M41

A NEW APROACH OF CONCEPTUAL FRAMEWORK FOR GENERAL PURPOSE
             FINANCIAL REPORTING BY PUBLIC SECTOR ENTITIES
Nistor Cristina

The importance of accounting in the modern economy is obvious. That is more elevated
bodies of the European Union and elsewhere dealing with the organization and functioning of
accounting as a fundamental component of business (Nistor C., 2009).
The mission of the International Federation of Accountants (IFAC) is to serve the public
interest, strengthen the worldwide accountancy profession and contribute to the development
of strong international economies by initiating and encouraging the professional standards of
high quality, the convergence process these international standards and to discuss issues of
public interest which is extremely relevant international experience of (IFAC, 2011).
Currently, the concepts related to financial reports in public sector are developed by IPSAS
references. Many of today's IPSAS are based on international accounting standards (IAS /
IFRS), to the extent that they are relevant to the requirements of the public sector. Therefore
today's IPSAS are based on concepts and definitions of the IASB's conceptual framework,
with changes where necessary for public sector specific approach.
Thus this study present this brief draft statement under discussion by the leadership of IFAC
in collaboration with other organizations and groups that develop financial reporting
requirements of the public sector. Then, we highlight the importance and the degree of
acceptance of the project which results from comments received. On the basis of combining
qualitative with quantitative research seeks to demonstrate the necessity and usefulness of a
common conceptual framework of the International Accounting Standards (in this case the
Public Sector), starting from their emergence from presenting their bodies involved in the
foundation, the content standards, experience of different countries. The results have direct
implications on Romanian public accounting system, given that the reference of the
international implementation and reporting is an actual goal.
The study is primarily addressed to graduate, doctoral students, professors and researchers
working in public sector accounting. The study aims at presenting the acceptance of the theme
subject for discussion by the IPSASB. It is addressed also to all those interested to know the
current evolţia development of International Public Sector Accounting.

Keywords: financial reporting, consultation paper, public sector, public sectors references,
Romania
JEL Classification codes: M40, M41




                                             153
   INTERNATIONAL AND EUROPEAN ACCOUNTING CONVERGENCE-AN
   ESSENTIAL PART OF THE INFORMATION TRANSPARENCY “PUZZLE”
Popa Anca Sabina

At the level of this article,I have tried to highlight both the distinctive features of the concepts
of international accounting standards, international and european accounting convergence,
aspects of transparency in presenting economic and financial situations, and the interferences
that characterize them, taking into account the fact that we can not talk about a specific line
that can separate practically the processes these concepts involve, processes conducted at the
economic entity level, by default processes involving long-term value creation.

Keywords: IFRS, IAS, convergence, economic and financial situations, economic entity
JEL Classification codes: M41; F15; O19; M48; G11

   AN INVESTIGATIVE STUDY REGARDING SMES SPECIFIC ACCOUNTING
                                     POLICIES
Popa Dorina Nicoleta, Beleneşi Marioara, Meşter Ioana Teodora

In this paper we intend to continue the research regarding the enterprise accounting policies
and the manner in which these are perceived by the practitioner accountants, Assistant
lecturers of financial statements. This time, in order to carry out the research, we made up a
new questionnaire applied to the same sample, containing a number of 100 SMEs in Bihor
County, selected according to the criterion of the average number of employees and that of the
level of net turnover at the end of 2008. Continuing previous conducted research we have
investigated this time the specific accounting policies of the sampled SMEs from Bihor
County and the way these policies are understood by practitioners and implemented in order
to prepare financial statements. Surprisingly, we have found that only 93.33% of the
respondents agree that the elements presented in the annual financial statements of the entity
are evaluated in accordance with the general accounting principles stipulated in Order
3055/2009, according to the accrual accounting. Half of the people interviewed had in view all
four qualities of accounting information (intelligibility, relevance, credibility, comparability)
in drawing up the annual financial statements, and most of them (56.67%) are not aware of the
possibility to use a significance threshold (10%-15%) of the total value of that particular
category of assets, liabilities, expenditure, income and results for an as faithful as possible
presentation of information in the balance sheet and in the profit and loss account.

Keywords: accounting policies, financial reporting, disclosure, SMEs
JEL Classification codes: M41, M10, C81

  THE TYPOLOGY OF REGIONAL MERGERS FROM THE PERSPECTIVE OF
                    FINANCIAL-ACCOUNTING ASPECTS
Răchişan Paula Ramona, Berinde Sorin Romulus

The interest for approaching this paper is determined by the actuality of the theme concerning
mergers, and also by the scale proportions this type of transactions have arrived at, both at
global level and also at national level, everything having as cornerstone a market economy
within which competitiveness plays a more and more important role. The aim of the study
consists in analyzing the external restructuring of entities under the form of mergers. On one
side, in order to clarify and deepen the theoretical aspects concerning mergers, and on the
                                                154
other side, in order to identify certain features related to merger transactions in Cluj County.
The aim of the study is to identify the conditions and manner of merger development within
commercial entities from Cluj County and to establish a typology relying on the results
concerning the relationship between the entities‟ shareholding structure, their contribution and
the exchange ratio when performing the transactions. The actuality of the theme, the
requirement and the increasing manifestation of the merger phenomenon also within the
Romanian teritory, the necessity of a thorough analysis of merger trends and typologies, they
all have been trigger factors of this objective. In order to achieve the objective a research
methodology was followed, assumptions were made, which have been confirmed of infirmed.
The methodological sphere consists of an approach of considered quantitative and qualitative
models, of techniques for data collection, hypotheses testing, but also of research boundaries.
As a result of the processing and analysis of the data on which this study relies, one arrived to
the following conclusions concerning mergers that were performed in Cluj County,
conclusions which could lead to the elaboration of a typology for the mergers that have
occurred in this region: in terms of shareholding structure, the two entities usually had a joint
majority shareholder, and regarding the financial aspects, the contributions of both entities are
in most of the cases positive, and the contribution of the absorbent entity is greater, and rarely,
when the contributions are negative, these contributions usually belong to the absorbed entity.
Also, when the shareholding structure is the same, the exchange ratio is usually 1:1.

Keywords: merger, contribution, exchange ratio, positive equity, negative equity
JEL Classification codes: Accounting and Auditing: General M40; Mergers; Acquisitions;
Restructuring; Voting; Proxy Contests; Corporate Governance G34

  CURRENT STATE AND EVOLUTION PERSPECTIVES FOR MANAGEMENT
    ACCOUNTING IN THE ENERGY SECTOR BY IMPLEMENTING THE ABC
                                    METHOD
Rof Letiţia Maria, Farcane Nicoleta

Based on a controversial issue, namely determining and controlling costs in the energy sector,
the present study falls within the scope of management accounting and control. This scientific
approach was initiated as a result of personal research concerns in the area of accounting,
starting from the need to know and quantify costs in a sector of the economy that is less
exploited. The main objective of this scientific approach is to address the evolution of the
energy sector in a national and international context, in terms of economy and finances, with
the aim to underline the need to organize and conduct management accounting in this sector.
We will present a few particularities of the energy system, the current status of
implementation of a medium and long term strategy aimed at developing the energy sector, as
well as the need to adopt modern costing methods in this sector, which ensure operative cost
control and performance growth of the entities that operate in this sector. Information on the
reviewed topic was conducted by studying the national and international literature in the field,
by analyzing the associated legislation, by consulting specialized web-sites and various
articles in the database. The main research methods used in this scientific approach were
analysis and synthesis, and qualitative research was the type of used research. The results of
the research will materialize in providing the necessary conditions for designing an
econometric model for implementing the ABC method, the conceptual and ideological
delimitation of the ABC method, the deepening of the positive and negative aspects that the
implementation of the Activity Based Costing involves. The major implication for the
researched field is ensuring success for the implementation of a modern costing method in the
energy sector, underlining the shortcomings of the traditional costing methods. The added
                                               155
value of the paper consists in conducting a rigorous study of the current state of an overlooked
sector of global economy and shaping trends in the evolution of energy costing.

Keywords: energy sector, strategy, costing method, activities, operative control
JEL Classification codes: M40, M41

   COMPARING EXPERIENCES IN REPORTING INTELLECTUAL CAPITAL IN
                                     UNIVERSITIES
Silvestri Antonella, Veltri Ştefania

The paper focuses on the intellectual capital (IC) report in universities, a relevant theme
actually for the growing interest in applying an IC approach in managing universities. The
paper compares the experiences in reporting IC of two different university institutions, the
Autonomous University of Madrid (UAM) and the Austrian Universities, to highlight pros
and cons of the two different IC models employed. In order to compare these two experiences,
firstly we analyzed, through a literature review, the state-of-the-art in measuring and reporting
IC, then we focus on the IC measurement models used as framework by the two institution,
finally we turned our attention to the IC reports issued by the two universities. Both
experiences presented refer to advanced IC measurement models, but both suffer of some
limits in applying the models in practice. Like all measurement and management systems that
deal with knowledge-based processes, Austrian and UAM„s IC reports face the
methodological problems of measuring non-physical processes and outputs. In detail, Austrian
IC reports lack of qualitative indicators, UAM‟s IC report lacks of efficiency-related and
activities-related indicators.The main research limit is that the theoretical comparison has been
carried out on two experiences, due to the lack of awareness of IC relevance in managing
universities. The establishment of an ad hoc IC measurement model for universities could
have both internal and external benefits. As regards the policy implications, Government,
ranking universities by their IC, can get information about their strengths and weaknesses and
using it to reallocate resources. This study contributes to broaden the research community‟s
understanding about a relevant management (internal) and communication (external)
universities‟ tool, the IC report, through the examination of two real life European universities
experiences in disclosing intangibles. To the best of our knowledge, this is the first paper that
focuses on comparing the two best university practices in reporting IC

Keywords: Intellectual capital, universities
JEL Classification codes: M41, I23

PARTICIPATORY GOVERNANCE IN THE PUBLIC HEALTHCARE SYSTEMS OF
                 THE SCANDINAVIAN AND BALTIC COUNTRIES
Ştefănescu Aurelia, Mocanu Mihaela, Turlea Eugeniu

The diminished trust of citizens in the public sector, the increased complexity of policy issues
and the reforms in accordance with the new public management principles generate the need
of focusing more extensively on participatory governance. Participatory governance can be
defined as the genuine engagement of citizens and other organizations in the formulation of
policies and strategies, in the decision-making process from the public sector and in the
implementation of the decisions. The present paper‟s objectives are to define the concept of
participatory governance, to argue in favor of implementing it in the public sector and to find
to what extent public healthcare institutions from Scandinavian and Baltic countries publish
                                               156
information on participatory governance and how they perceive community engagement. The
research findings are that the information on participatory governance disclosed on the
websites of relevant institutions from within the Scandinavian and Baltic public healthcare
systems is scarce. The countries with the greatest concern for community engagement are
Denmark and Sweden. It is argued that there should be a shift in focus within the public sector
in general and within the healthcare system in particular, so that citizens are genuinely
involved in the relevant processes and their satisfaction is indeed at an adequate level.

Keywords: participatory governance, engagement, public healthcare, Scandinavian, Baltic
JEL Classification codes: M40, H0

 THE GOING CONCERN THEORY AND PRACTICE IN THE FINANCIAL AUDIT
Ţară Ioan Gheorghe

The financial audit is called in to take the responsibilities on prevention of shocking events in
the life of a company. Therefore we have to look into both of some concepts and the practice
of financial audit so as to improve its performance and utility.
On this purpose we assume some proposals to going concern concept and its practically use
improvement. Thus, taking in account the actual statements of the IFAC documents (ISA 570)
and the latest results on "going concern research (A. Rosman 2011, Bihmani and Co. 2009,
Geiger, Raghunandan and Rama 2005, N. Kuruppu and Co. 2002) we consider something
more might be done to accurately clarify the concept and to meet the investors requirements
regarding financial auditors responsibilities on the future of the audited companies.
We are going to focus on subjects such as: which are the responsibilities of the financial audit
and the management regarding the going concern, what kind of audit should be performed on
the matter of a company future, which are the best methods to analyze the future going of a
company, where the information should comes from and how compulsory a mission of audit
on going concern should be.
Using a sample of a couple of listed companies filing for bankruptcy we reached a conclusion
regarding the connection between going concern opinion and its real effects. The conclusion
consists in the fact that there is not a compulsory connection between the going concern
opinion and the decision for bankruptcy. On this basis and, as a result of studying the
conclusions of the upper named authors, we assume the idea that a separate going concern
audit mission should be conceived, organized and performed. In this sense the concept of
going concept, itself, should be improved.
In our opinion a new concept of going concern would have better practical results regarding
both methodology of performing the assessment of an entity as going concern and the
responsibility of financial auditors in issuing the financial audit opinion.
Further research on this subject we will perform, analyzing more conclusive data with an
emphasis on financial crisis effects.

Keywords: going concern, financial audit, IFAC, international standards, financial auditors.
JEL Classification codes: M41, M42




                                              157
IFRS COMPLIANCE REGARDING INFORMATION DISCLOSED BY COMPANIES
    IN CONSOLIDATED FINANCIAL STATEMENTS - CASE STUDY ON IAS 23
                     BORROWING COSTS APPLICABILITY-
Tiron - Tudor Adriana, Fekete Szilvester, Dragu Ioana - Maria

This paper concentrates on information disclosure regarding IAS 23, being included in
accounting research field. It comprises an empirical study on the correlation between
information published by companies in consolidated financial statements with respect to
borrowing cost policies and a series of variables that characterize a firm. The objectives of this
paper involve estimating and establishing an econometric model in which is assumed that
disclosure index for information required by IAS 23 depends on certain elements in the form
of country of origin, sales, total assets, debt ratio, ROA and ROE. International accounting
literature presents a series of studies on the subject of compliance with IAS disclosure
requirements. Similar with this paper, various authors considered annual reports as starting
point for data gathering in their reasearch on disclosure phenomena. The criteria used for data
gathering, processing and analysing have been previously used in a successful manner by
important scientists who published in accounting field. The methodology used involves
Disclosure Index computation, as well as SPSS data processing, analysis and interpretation of
results. Results show that the model is valid, meaning that there is correlation between
information disclosure with respect to IAS 23 and the analyzed variables. According to our
estimated econometric model, most of the variables maintain a certain influence on disclosure
as we can observe a significant correlation level between the studied elements. This research
contributes to the development of both accounting field and international accounting
literature, by studying borrowing costs disclosed information in relation to certain elements
that best characterize the activity of a company. Although an empirical paper, it concentrates
also on accounting practices, as it uses real data extracted from annual reports and
consolidated financial statements. The importance of this research relies in its originality
approach, by studying the information disclosure for borrowing costs that represent one of the
most important accounting fields.
Keywords: information, disclosure, borrowing costs, annual reports, correlationJEL
Classification codes: C51, C53, M41

  RESSOURCES ALLOCATION POSSIBILITIES WITHIN HEALTH SERVICES
Toplicianu Selina, Manea Liliana

The state policy in the health care area must take into account the complexity and specificity
of the domain. Health means not only “to treat”, but also “to prevent” and “to recover and
rehabilitate the individual physically”. Regardless of the adopted health insurance system, the
health system is facing a big problem and this is the insufficient funds necessary to function
properly.
The underfunding may have various causes, from a wrong health policy, based on “treating”
instead of “preventing”, by the misuse of funds. This papers intended to formulate
assumptions that underpin the research I am conducting within the Doctoral Research
Program held at the Valahia University of Targoviste, which aims at using the management
control in increasing the health services performance.
The application of the accounting and management control methods in determining health
costs can be a beginning to streamline the system. This is also a result of the fact that health
care is a public service with specific characteristics: it can not be subject only to market
requirements but at the same time he must undergo an administrative savings, representing a
typical case of market failure.
                                               158
The increased cost of treatment, as well as the decline in their quality can be determined by
the discrepancy between the funding and payment mechanisms. Different payment systems
currently available do nothing but perpetuate the shortcomings in the system. Switching to the
introduction of cost and budgets by cost centers or object (if solved) can be a step forward for
a better management of resources. In this context, we consider as a necessity to be imposed
the cost analysis on responsibility centers, the definition of the cost object and cost center
identification and determination of direct costs and those indirect services to choose the basis
for the allocation of cost centers and the determination of each actual cost per diagnosis.

Keywords: health, revenue allocation, management accounting, costs
JEL Classification codes: H51,I18


       THE INTELLECTUAL CAPITAL STATEMENT AND THE BALANCED
      SCORECARD AS COMPLEMENTARY MODELS IN MEASURING FIRM
                           INTANGIBLES
Veltri Ştefania

The purpose of this paper is to examine the role of two different new management tool, the
Balanced Scorecard (BSC) and the Intellectual Capital Report (ICR) in managing and
reporting intangibles. Unlike the majority of IC scholars the author, and consistently with
Bukh et al. (2005), the author starts from the idea that BSC and ICR are not alternative, but
complementary tools in measuring intangibles, addressing different needs for firms that
measure, manage and report intangibles. The research hypothesis of the paper will be
demonstrated through the analysis of a case study of an Italian group which use both
intangibles‟ reporting systems. A case study methodology has been chosen, given that it is
widely used by researchers and provide the basis for the application of ideas and extension of
methods (Yin, 1994). Intercos group has been chosen to test the research hypothesis, since it
makes use of both models in measuring and reporting intangibles. The study of the case
Intercos group found evidence that the two types of extended reporting are different and yet
complementary and that both tools are necessary for firm in measuring IC, since they address
different aims. This includes therefore a marked difference in use of indicators, given that IC
indicators in the ICR have to support the overall aims derived by company‟s strategy, while
BSC indicators provides a breakdown of strategic goals with respect to profitability, growth
etc. The contribution of the paper to the IC literature is to extend the findings of the Bukh et
al.‟s (2003) study, investigating the hypothesis (and finding evidence) that BSC and ICR are
complementary in reporting intangibles in an Italian group. Implications of the paper are for
company‟s manager, who increase the awareness that they have at their disposal two
management tools, with address different aims, to manage intangibles.

Keywords: Intellectual capital report, balanced scorecard, complementary models
JEL Classification codes: M41




                                              159
   SOME INSIGHTS REGARDING CREATIVE ACCOUNTING IN ROMANIAN
 ACCOUNTING ENVIRONMENT - REGULATORS, FINANCIAL AUDITORS AND
                        PROFESSIONAL BODIES OPINION
Vladu Alina Beattrice, Grosanu Adrian

This empirical study reports the results of a survey designed to explore the existence and
magnitude of creative accounting practices in the Romanian accounting environment using as
a reference point the opinion of some of the top representative accounting professionals like:
financial auditors, regulators and professional bodies representatives of the Chamber of
Financial Auditors of Romania and also representative of the Body of Expert and Licensed
Accountants of Romania.
Since the existence of creative accounting practices are connected in accounting with issues of
vulnerability and in some cases panic getting to know its magnitude can be regarded of higher
importance. In this respect we were interested to see if our respondents can document its
existence and magnitude based on their experience. In order to achieve this goal our
methodology employed neutral and direct interviews based on closed questions questionnaire.
The results of our empirical study documented that the credibility of accounting profession in
the Romanian accounting environment is not affected by items like creative accounting since
all our respondents asserted that is not facile to employ creative accounting schemes in the
practice of accounting. One particular question was concerned about the ease of detection of
creative accounting practices. In this respect we interviewed our respondents and all had
similar opinions that in order to detect those practice skilled professionals are needed and
more than that the desire to engage in this demarche since it is not specified particularly in the
law.
When it comes to creative accounting schemes that our respondents could identify in their day
to day work they shared similar views: items like profit overstatement and profit
undervaluation, income tax and leasing can be included frequently in those schemes. On the
other hand practices of creative accounting that include goodwill, provisions and
developments costs are not found in a significant proportion in the Romanian economic
environment.

Keywords: creative accounting, creative accounting practices, credibility, existence,
magnitude
JEL Classification codes: M41

  DETECTION OF EARNINGS MANAGEMENT – A PROPOSED FRAMEWORK
           BASED ON ACCRUALS APPROACH RESEARCH DESIGNS
Vladu Alina Beattrice, Cuzdriorean Dan Dacian

The scope of this theoretical research is to outline recommendations for improving the
complex process of detection of accounts manipulation. In this respect we turned to the
previous literature and assessed empirical studies in order to be able to develop a robust model
for understand the process of detection for accounts manipulation and further to ease the path
of detection by proposing as we stated above a theoretical framework in this respect. Since
there is a constant conjecture between cause and effect we are able to assert that two direction
of research can be identified and both can explain further the roots for limiting earnings
management since its detection can be much easier approached: the event that can represent
the root for accounts manipulation and the normal trend considered for a certain company
related to the accruals level and economic trend. In the end if we know the cause we can
interpret the event and combat its appearance. But when this kind of research appears, another
                                              160
question springs. Should we fight earnings management practices? Clikeman (2003:78)
sensed that by using those practices companies are walking on a very slippery slope where
minor accounting gimmicks become more and more aggressive until they create material
misstatements in the financial statements. So, the recourse to such practices creates a stake
that is not negligible. The users of financial statements are misled when making decisions
based on manipulated accounting numbers. To a certain extent, the existence of earnings
management distorts the usefulness of financial statements, and in this respect the process of
detecting it can be regarded both as being important and challenging.
Our proposal is not related to a technical process of detecting earnings management as typical
empirical studies found in the literature and more than that we open a new stream of research
based on understanding the forms of manifestation for accounts manipulation, getting to know
the antecedents, the features, the possible interactions among antecedents and current features.
Based on the recommendations found in the literature the eradication of manipulative
processes is next to impossible but the limitation can be a reality. In this respect the
researchers recommend controlling the conditions and motives that increase the likelihood of
its presence and also developing stronger tools to detection.
Keywords: earnings management, accruals
JEL Classification codes: M41




                                              161
162
                SECTION: MANAGEMENT AND MARKETING

                           SUB-SECTION: MANAGEMENT
  OBJECTIVES, PERFORMANCES, RESULTS – VIEWS ON THEIR USE IN THE
               PUBLIC ORGANIZATIONS FROM ROMANIA
Bacanu Bogdan

The present paper focuses on the management associated with relatively common concepts:
objective, result and performance (ORP). The study is important because in the Romania of
the year 2011, a “state reform” is being planned, which will substantiate into the
reorganization of public institutions, as the improvement of their activity is set forth by
utilizing the set of tools associated with the aforementioned concepts.
The study represents an analysis related to the use of the set of management tools associated
with the aforementioned concepts within the Romanian public organizations. The study is
concerned with a qualitative estimation involving the translation of the existing theory into the
practice of the present moment.
The review of the specialized literature is aimed at selecting the most common theoretical
milestones, in order to increase the probability to retrieve them from the practice of the
organizations. The works of Drucker represent the first theoretical system of reference. The
way the ORP concepts have been utilized within the American organizations generate the
guiding elements of the present study.
The research presents a longitudinal segmentation, the frontier between the two parts being
the present moment. The current state of facts is studied by means of an inductive approach.
The hypothesis related to the ORP management in the near future is actually built on the
grounds provided by the estimation of this state of facts. Its deductive approach starts from
evaluating the pragmatic premises, involving the support of the process that will utilize the
ORP in the near future, according to the theoretical percepts. The analysis is qualitative in
nature. The identification of the cases that represented “the exception” was taken into account.
The analysis focused on public institutions considered a priori as more transparent: the
university, the hospital and the town hall. Even if in the case of the university there are
regulations that facilitate the strategic planning, the utilization of objectives according to the
MBO precepts is absent. The same situation is to be found in the case of hospitals and town
halls. The use of primary and secondary information sources prove that the ORP has not been
utilized. It was ascertained that the premises for utilizing the ORP are the same for the near
future, a fact that implies the same results.
The main implication is associated with the “myth or reality?” question. The result has a
demystifying impact, showing that a reliable estimation on the ORP basis related to the
activities of or people working in these organizations cannot be developed nowadays - in
2011.
The present study aims at a realistic analysis related to the discrepancy between words and
facts within the management of the Romanian public organizations. The fact that the
aforementioned organizations represent the object of the “management of shallow labels
content” is signaled and demonstrated.

Keywords: objectives, MBO, results, performance, public organization
JEL Classification codes: H11, I00, I23, L31



                                               163
PUBLIC-PRIVATE PARTNERSHIP IN COMMUNITY DEVELOPMENT. THE CASE
                  OF ROMANIA. CONCEPT AND MANAGEMENT.
Bibu Nicolae, Lisetchi Mihai

The public administration has a major role in partnerships establishing and operating with
different community actors aiming at solving specific community problems. In the process of
identifying and solving the community problems the actions of the non-governmental
organisations are considered as “alternatives” to the solutions of the public administration.
The advantages of an on-going collaboration between non-governmental organisations, as
relevant agents in the social economy, and the public authorities aiming at solving the
community problems were identified and aknowledged by both sides representatives. The
access to complementary resources, and implicitly, an increase in the range of actions of the
partners beyond mathematical calculus, an increase in the credibility and public image of the
partners, as well as the social benefit corollary to positive models established within the
community, are only a few of the arguments. The question raised is why this type of a more
consistent approach is not used in the current practices of solving the community issues in
Romania. The following causes should be considered in response to this question: the lack of
an associative culture at the level of all potential partners, the access to resources is by far too
limited on behalf of any of the two parts involved, a neutral, thus, unrestrictive legislative
environment, but at the same time, unstimulating towards an associative action, i.e. limited
management capacities on both sides.
From this perspectives, this paper aims at clarifying the partnership concept (definition,
typology), the public-private partnership role in solving community problems and the
management issues related: partners identification, negociation of the cooperation protocol,
decision making process and resource management, assesment, etc.

Key words: partnership, public administration, non-governmental organizations, public-
private partnership, partnership management.

JEL Classification codes: L3, L38

ELEMENTS FOR A MODEL OF ENTREPRENEURIAL SCHOOL FOR WOMEN IN
                           RURAL AREAS OF ROMANIA
Botezat Elena Aurelia, Tarcza Teodora Mihaela

Romanian mentality, especially in rural areas is deeply influenced by culture, literature and
history of the Romanian people. This proves to be both adaptable and rooted in the old
Romanian traditions and customs. In the last two decades, the transition from socialism to
capitalism, modern society, the socio-economic development of the country has left strong
impressions on the way of thought, expression and action of the Romanian people.
Women in rural areas are no exception. As some groups of people interested in their
development of social-economic scale, rural women are trying to adapt, to evolve, to
overcome the barriers imposed at psychologically, socially and financially.
The paper highlights the results of a survey on a sample of 979 women students in the project
"Entrepreneurship and Equal Opportunities. An inter-regional model for women
entrepreneurial school "(AntrES acronym), which certified mediators intention to initiate their
own business.The results of questionnaires have provided important information about the
character, ambition, motivation, courage, and moral support and financial support to women
entrepreneurs based in Romania, including those in rural areas. The information obtained
inetrmediul "I shattered" 7 myths about starting a business in our country. Romanian
                                              164
entrepreneur spirit, women in rural areas in Romania is not only a manifestation of strong
desire to improve living standards in financial terms, but rather an "effort" to improve and
"beauty" of the individual, family, environment and society we belong!
In developed countries, at its home, female entrepreneurship is trying to reform, to seek new
solutions to rethink the principles, to exercise imagination, to learn. Here, in Romania
standard behavior still predominates. Female entrepreneurs are doing what everyone else in
the same category does. The future however belongs to those who will opt diversity, surprise,
excitement, personalization. How could this happen in the Romanian rural environment and
take place in a sustainable way?

Keywords: antreprenoriat feminin, mentalitate românească, mediul rural, mituri, potenţial
JEL Classification codes: M12, M52

  ORGANIZATIONAL STRESS AND ITS IMPACT ON WORK PERFORMANCE
Bucurean Mirela, Costin Mădălina - Adriana

Nowadays, in times of economic crisis, most managers or entrepreneurs have to cope with a
lot of new job challenges which can easily transform into stressors. Work related stress is of
growing concern because it has significant economic implications for the organization. Even
if some stress is a normal part of life, excessive stress can influence one‟s productivity, health
and emotions and it has to be taken under control. When people lose confidence, they refuse
to take responsibilities, they get quickly irritated, they are unsatisfied of their job, their
performance will be very low and the organization will be in danger. Fortunately, most
managers and entrepreneurs know which stress main symptoms are and have the necessary
knowledge for managing and reducing it before it can affect employees‟ daily work.
Stress can have an impact both on the organizational welfare and on personal behavior of
supervisors or employees, that‟s why, the ability of managing it can make the difference
between job‟s success or failure.
The purpose of this paper is to study Romanian managers and entrepreneurs from Bihor
County‟s perception regarding the stress phenomenon, if they feel that they are affected by
stress, if they promote some methods to reduce it and if they consider that stress can influence
the organizational performance.
As a research method we used an online questionnaire, applied to a number of 75 managers
and entrepreneurs that represent the target group of the project "Flexibility and performance
through management", project financed by the European Social Fund - "Invest in people".
Each participant had to answer a number of 35 questions regarding stress and the results will
be presented in this paper. The main conclusion is that, even if job itself is seen as a stressor,
there are other important factors that can produce stress such as: family problems, personal
problems or social problems.

Keywords: organizational stress, impact, managers, entrepreneurs, work performance
JEL Classification codes: M54




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    THE ADOPTION/ADAPTATION OF THE „SUPPLY CHAIN” CONCEPT IN
                                    ROMANIAN
Butilcă Delia - Alexandra, Crişan Emil Lucian, Salanţă Irina - Iulia, Ilieş Liviu

There are several terms used in Romanian for the English term supply chain. We have counted
eleven. It has been adopted in several ways and it is perceived (adapted) in several ways in
Romania. There are several causes which have determined this fact: the English terminology
inconsistence regarding supply chain has been translated into other languages, professionals
roots determine the usage (logistics professionals use it for logistics, strategic logistics use it
in general etc.), the lack of Romanian discussions regarding the new professional terminology
at general level and supply chain and logistics in particular. We expose the different ways by
which supply chain is reflected in Romanian, we discuss the causes which have generated this
total confusion and then we suggest a proper term for supply chain in Romanian, considering
the real meaning of the term and the strategies adopted by other countries regarding supply
chain adoption. In conclusion, we propose a general adoption and adaptation for the term in
Romanian.

Keywords: supply chain, logistics, strategy, adoption,adaptation.
JEL Classification codes: M29, M19, L19,M31

 HOW FUTURE MANAGERS VIEW SOCIETAL CULTURE: A CROSS-COUNTRY
                                COMPARISON
Catana Gheorghe Alexandru, Catana Doina

Our study aims at enriching the existing literature about the prospective managers view of an
ideal societal value system and the existing cultural practices in their society. The findings
about the students‟ perception on cultural practices and their expectations about societal
culture are helpful in imagining the societal culture in its dynamics. The research sample
consists of 727 students in business and engineering on undergraduate and graduate levels
from Romania and Slovenia. The reason we have chosen to compare Romanian sample with
the cultural profile of the “average” future manager from Slovenia is the scientific curiosity of
finding out if there are signs of cultural convergence of Romania with a previous communist
country, and an older member of European Union. In doing so, our study will hopefully
broaden the body of knowledge about the cultural convergence (or divergence?) between the
former socialist countries joining European Union. The theoretical and methodological
foundation is rooted in GLOBE international research project. Our findings revealed that at
practices level,Romanians perceive significant higher Power Distance and significant lower
mean value for Uncertainty Avoidance. At the expectations level, the Romanians and
Slovenians are very similar in the desire concerning their societies orientation toward In
group/Family Collectivism, Assertiveness and Performance Orientation, and record significant
differenced in all the other societal values. The fact that for all the cultural expectations the
future managers assign different mean values than for the correspondent practices make us
expect that they will act to change their cultural environments. Still, the cultural orientation of
Romanian future middle managers will differ in many regards from the Slovenian sample
averages.

Keywords: societal culture, cultural practice, cultural value, Romania, Slovenia
JEL Classification codes: M14, M19


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REGENERABLE ENERGY, A KEY TO INTEGRATING COMPETITIVE POLICIES
        WITH ADVANCED ENVIRONMENT PROTECTION STRATEGIES
Cinade Lucian Ovidiu

Development of competitive policies and improvement of environment protection strategies
are two basic trends of the development of the European Unique Market. Energy, also known
as „industry bread”, is basic product and strategic resource, where energy industry plays an
obvious role in the economic and social development of any community. Traditional energy
production is marred by three major drawbacks: it generates negative externalities by
polluting; it is totally in the hands of the producers; hence, prices rise at their will, of fossil
fuels such as oil and gas.
Present study focuses on electric energy industry, yet bearing over the whole length of the
chain producer-to-end-consumer, thus revealed as particularly complex. The question is do
alternative energy sources meet the prerequisite of market being competitive? meanwhile
environment protection being highly observed. We identify limits in point, of the energy
market; effects of market liberalization; entry barriers; interchangeability level of energy
sources; active forces on the energy market.
 Competitive rivalry has been expressed as per market micro-economic analysis, based on
Michael Porter‟s 5-forces model.
It will thus be noticed that, morphologically, competition evolution depends firstly on the
market type. For the time being, the consumer on the energy market stays captive, for various
reasons such as: legislation; limits of energy transfer infrastructure; scarcity of resources;
resources availability imbalance; no integrative strategy available, of regenerable energy
resources usage. Energy availability is vital for human society to function.
Comparative advantages of regenerable energy resources are twofold, as manifested: in terms
of economics, i.e. improving competition by substitute products entered at the same time as
new producers enter market; and in terms of ecology, by reducing CO2 emissions. As to
energy production technology and transfer, the complementary nature will be noticed, of
 regenerable energy resources, such nature manifesting itself as a 6th force, „the force of
complementary products” apt to stimulate low competition on the energy market.

Key words: competition, environment protection, renewable energy, strategy
JEL Classification codes: M11-Q42

    CURRENT ECONOMIC AND MEDICAL REFORMS IN THE ROMANIAN
                        HEALTH CARE SYSTEM
Drăgoi Mihaela Cristina

The “issue” of health has always been, both in social reality and in academia and research, a
sensitive topic considering the relationship each individual has with his own health and the
health care system as a public policy. At public opinion levels and not only, health care is the
most important sector demanding the outmost attention, considering that individual health is
the fundamental prerequisite for well-being, happiness and a satisfying life. The ever present
research and practical question is on the optimal financing of the health care system. Any
answer to this question is also a political decision, reflecting the social-economic value of
health for a particular country. The size of the resource pool and the criteria and methods for
resource allocation are the central economic problems for any health system. This paper takes
into consideration the limited resources of the national health care system (the rationalization
of health services), the common methods of health financing, the specificity of health services
market (the health market being highly asymmetric, with health professionals knowing most if
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not all of the relevant information, such as diagnosis, treatment options and costs and
consumers fully dependent on the information provided in each case) and the performance of
all hospitals in Romania, in order to assess the latest strategic decisions (introduction of co-
payment and merging and reconversion of hospitals) taken within the Romanian health care
system and their social and economic implications. The main finding show that, even though
the intention of reforming and transforming the Romanian health care system into a more
efficient one is obvious, the lack of economic and demographic analysis may results into
greater discrepancies nationwide. This paper is aimed to renew the necessity of joint
collaboration between the economic and medical field, since the relationship between health
and economic development runs both ways. (This paper was co-financed by the European
Social Fund through the Operational Programme of Human Resources Development 2007-
2013, POSDRU/1.5/S/59184 „Performance and excellence in the economic science
postdoctoral research in Romania” coordinated by the Bucharest Academy of Economic
Studies; my postdoctoral research period lasts from Nov. 2010 to Mar. 2013)

Key words: health care system, rationalization, decentralization, co-payment, hospital
mergers
JEL Classification: H 51, H 75, I 18

           COMPARATIVE STUDY ON CORPORATE GOVERNANCE
Gavrea Corina, Stegerean Roxana

Corporate governance is a key element of today‟s economic reality being more and more
present in many countries around the world. This paper has two main objectives. The first one
is to offer more insight into the concept of corporate governance by a thorough literature
review and by presenting and analyzing a framework of corporate governance. The second
objective of this paper is to investigate the corporate governance situation in three developing
economies (Romania, Bulgaria and Hungary). The World Bank and the European Bank for
Reconstruction and Development published a series of reports on corporate governance. The
present study uses data from these reports in order to illustrate how these developing
economies are dealing with corporate governance. Based on ROSC Reports a corporate
governance score was calculated. As this score shows, there is room for improvement for all
three developing economies. This study is important because it shows the differences in
corporate governance among developing economies and the need to study these nations at the
individual country level. Corporate governance has many benefits for developing economies.
It helps developing economies to register sustainable growth rates, to increases investors‟
confidence in the national economy, and to increase the ability of capital markets to mobilize
savings.

Keywords: corporate governance,          shareholders,   stakeholders,   investors,   corporate
governance principles
JEL Classification codes: G30, M10




                                              168
  COMPETITIVENESS AND PERFORMANCE ON THE COSMETICS MARKET
Grigore Ana - Maria, Bâgu Constantin, Radu Cătălina, Cătăneţ Alina

Most organizations are going through massive changes. Their customers are changing, their
competition is changing, their customer‟s needs are changing and their resources availability
is changing - the cosmetics companies are no different. Organizational survival and success
depends on the ability of the managers to detect and adapt to critical changes in the
environment, which may impact the company.
The paper has two main purposes. First to underline the importance performance
measurement has in today‟s business and second to present a few key elements regarding the
performance of the cosmetics sector in Romania. For this we have tried to answer the
following question: Are the cosmetics companies competitive?
This paper is based on exploratory literature review of different approaches regarding
organizational performances in organizations in general.
Despite the global economic crisis and the general slowdown of many markets, the Romanian
beauty and personal care market continued to grow in 2009. Consumer awareness and product
knowledge is growing rapidly and the development of retailing chains and their widening
product offer have also helped to further the development of the beauty and personal care
market.
The paper also presents the results of section three of an online survey conducted at 10
cosmetic companies from Romania. The results have shown that multinationals have both the
economic and managerial power to succeed in obtaining their goals. Even though the sample
of 72 respondents was rather small, we managed to conclude from the received answers that
the majority of companies focus on economic and managerial performance rather than on
social and ecological performance indicators.
This paper aimed to contribute to the literature review development in the field of
performance management. The results of this study can be of use for managers from the
analyzed domain or for other researchers in the economic field.
The authors have contributed to the originality of this paper, by presenting pertinent
conclusions about the cosmetics market from Romania, resulted from the literature review and
from an empirical study.

Keywords: management, performance, cosmetics market, competition
JEL Classification codes: M10, L25, L66

                   MANAGEMENT MATERIAL COSTS ELEMENTS
Ioana Adrian

The paper presents the main elements of the analysis of the dynamics and structure of the
material costs. Also, there are presented the principal indicators for tracking and analyzing the
Physical Consumption of Materials (PCM). The factorial analysis‟s elements of the costs with
materials per products there are presented too. The modification of the sales price and the
modification of the costs with materials per product unit there are also presented. Economical
use of the material resources used represents the principal factor of economic growth, an
important element of the efficiency of any industrial enterprise. In the category of material
costs we take into account both the costs regarding the consumption of labor objects (base
materials, raw materials, fuel, energy, auxiliary materials) and those reflecting the equivalent
of consuming fixed funds. For characterizing the status of material resources use, we need a
system of indicators which allows the following of the objectives execution. The system of
indicators which refers to the metal consumption illustrates a widely used and complex
                                               169
resource. Some of these system indicators can also be used for any material resource. In the
category of material costs we take into account both the costs regarding the consumption of
labor objects (base materials, raw materials, fuel, energy, auxiliary materials) and those
reflecting the equivalent of consuming fixed funds. The analysis of the metal consumption per
specific unit (CSM) implies comparisons with the specific consumptions for the products sol
in the previous periods and for similar products in the industry.

Keywords: Management; Physical Consumption of Materials; Material Costs
JEL Classification codes: E23, L10, L11


     INTRINSIC AND EXTRINSIC MOTIVATION - AN INVESTIGATION OF
                       PERFORMANCE CORRELATION
Matei Mirabela Constanţa, Abrudan Maria-Madela

A series of research untaken in the last decade have revealed some interesting aspects
regarding the effects of different types of motivation on performance. Among the researchers
who have shown interest in this field we can number: Richard Ryan, Edward Deci, Sam
Glucksberg, Dan Ariely, Robert Eisenhower, Linda Shanock, analysts from London School of
Economics, and others. Their findings suggest that extrinsic incentives may have a negative
impact on overall performance, but a general agreement in this respect has not been reached.
In this paper we intend to shed some light upon the relationship between intrinsic and
extrinsic motivation and performance. Experts define intrinsic motivation as being the
execution of a task or activity because of the inherent satisfaction arising from it rather than
due to some separate outcome. In contrast with intrinsic motivation, we speak of extrinsic
motivation whenever an activity is done in order to attain some separable outcome.
With the purpose of contributing to the clarification of the links between concepts, we
initiated and conducted an explanatory research. The research is based on the analysis of the
relations between the results obtained by third year students and their predominant type of
motivation. For this, we formulated and tested four work hypotheses using a combination of
quantitative methods (investigation) and qualitative methods (focus group). After the
validation of the questionnaires, the respondents were divided into four categories:
intrinsically motivated, extrinsically motivated, both intrinsically and extrinsically motivated
and unmotivated. To analyze the collected data, we made use of Excel and SPSS.
Some of the primary conclusions of the research are as follows: as the average increases, the
percent of individuals having both extrinsic and intrinsic motivation is decreasing; the highest
percentage of unmotivated students is concentrated in the highest average category; Female
students tend to have better performance at university level. The research intends to be nearly
a first step in the attempt to clarify the relationship between intrinsic (and extrinsic)
motivation and performance. Further research is needed.

Keywords: intrinsic motivation, extrinsic motivation, performance, correlation
JEL Classification codes: M12, I23




                                              170
  HUMAN RESOURCE MANAGEMENT - THE ROLE AND IMPORTANCE OF
                         MULTINATIONAL COMPANIES
Muscalu Emanoil, Stăniţ Alexandra

If one of the factors of growth and economic development in the contemporary period is
"human capital" in the analysis of human resources correlations between specialization and
volume of information that can materialize evolution of human society, manifested in the last
decades of the twentieth century and the beginning of the new millennium, outlines the
prospect of an increasingly integrated world, which finds its origins in the experience
accumulated by mankind over the processes and phenomena with economic, social and
cultural.
It was thus concluded that the individual is more than a mere component of productive factors
and human resource management than rigid principles of asset management company, should
take into account a number of features that are beyond economic calculation. Only taking into
account all aspects that define the human personality, abilities, acnowledge, aspirations,
temperament and character traits, resource management may be able to lead the precious, the
only resource equipped with the ability to know and overcome their limits.
Globalization, European companies/multinational, human development, economic diversity,
social, political and cultural-specific regions or countries are factors that have a major impact
on human resources management. European human resource management is very complex.
No other region in the world encompassing so many differences in terms of historical, cultural
and linguistic aspects as well as Europe.
Each country has its own employment system, its laws and institutions, its own education
system and a strong individualized managerial culture. Human resource management becomes
the main instrument through which companies can provide competitive advantage in the
intensification of globalization. In experts opinion, the main cause of European companies
failure is the lack of understanding of key differences in human resource management in
different countries. Companies must ensure their competitive advantage and deliver value
added in terms of achieving a single market share.

Keywords: human resource management, human resources, multinational companies, human
resource globalization
JEL Classification codes: F23, O15

    EDUCATIONAL MANAGEMENT- AS THE RESPONSE TO THE SOCIAL-
              ECONOMIC CRISIS IN CONTEMPORARY EUROPE
Ortan Florica

Taking carefully into consideration the way in which emerged and evolved the actual
economic and financial crisis, in Europe and in Romania, one can conclude that the
educational management, as an academic program, or as a scientific research, can provide
some solutions.
First are analyzed the initiatives taken by the decision factors from the superior European
education, in 1999, before the breaking out of the crisis, through the Bologna Convention.
Due to the educational management‟s particularity to establish a communication channel
between academics, specialists in educational sciences, educational institutions managers and
political leaders, are presented the beneficial effects which a number of decisions like the
stimulation of young people‟s interest for the studying of economical and entrepreneurial
sciences, systematic programs open socially and culturally of knowing the foreign languages,

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the analysis of career‟s dynamic in parallel to the modernization of the career education, could
have.

Keywords: education, management, social-economic crisis
JEL Classification codes: A0

        COMMUNICATION AND CONFLICT IN PUBLIC INSTITUTIONS
Ponea Constantin Ştefan, Crăciun Liviu

The importance given throughout the world to public management issues and especially to the
quality of management process, having central coordinates the enhancing of the institutional
capacity and building an effective and efficient strategic management, is a proven argument of
the necessity of studying the phenomena that have an impact on the managers‟ activity.
There isn‟t any successful organization whithout conflicts. These should be regarded as a
ubiquitous reality in the world of organizations. Conflicts are considered necessary to enable
the development of the organization and to make conditions for change.
In Romania, in most organizations, not only private but also public, people work in a rather
tense environment. It is known that employees from public sector are required to perform
work at a very high standard on little money. This way may be explained the high percentage
of work disputes. In the case of employment relationship, conflicts have a higher cost, but a
hidden one, unexpected in the budget. Most organizations do not realize these costs result
from poor management of conflict situations.
Managers‟ responsibility is to admit, control and solve conflicts so as to increase
organizational performance, the first step in solving a conflict being to deal it as an
opportunity. This research focused on the role of communication in the process of managing
the conflict. To effectively reduce conflict, organizations must continually ensure that
managers, through their personal style and behaviour, do not cause frustration, conflicts of
personality or other type of conflict, and they reduce the probability of triggering conflicts
through decisions, policies developped and conducted processes in the domain of
communication,
The research undertaken in The Inspectorate of the Police of Mehedinti County is an opening
for this distinct field of public administration. In the research conducted so far there is a focus
rather on individual than on group or collective of employees and on particular aspects of
daily activity occurred at work, the evaluations having a strong psychological character,
neglecting the psycho-sociologic one. We believe that such an approach should be continued
through an extensive research in all structures of the Ministry of Administration and Interior,
especially in the current context marked by profound and numerous changes that generate
conflict.

Keywords: communication, conflict, conflict management, manager, public institutions
JEL Classification codes: M10, M12, M54

    THE ROLE OF THE E-PROCUREMENT IN THE PURCHASING PROCESS
Pop Sitar Corina

This article aims to examine the role of the E-procurement forms in the six phases of the
purchasing process. The paper starts with an introductory part about the purchasing process.
Next, based on a literature review we selected and defined the most important forms of E-
procurement. Furthermore, we develop a theoretical framework that suggests what form of E-
                                               172
procurement is best to use in every phase of the purchasing process. At the end of the paper
we draw conclusions and we set some ground rules for managers regarding to the
implementation of an E-procurement form.

Keywords: purchasing, E-procurement; management, supply chain management, optimization
JEL Classification codes: M15, 032

 STUDY ON QUALITY PARAMETERS AND ENZYMATIC ACTIVITY OF GRAIN
                MILL PRODUCTS REGION IN TRANSYLVANIA
Popa Maria, Bostan Roxana, Varvara Simona, Glevitzky Mirel, Tomescu Ada, Popa
Dorin

This paper aims at determining the main quality parameters of grain mill products in the
Transylvania region, emphasizing the enzymatic activity of flour also studied. Determination
of quality characteristics of grain mill products entails the establishment employment
physical, chemical and sensory parameters and limits imposed by law.
Analyses were performed on samples formed by mixing samples basic medium extracted from
different batches. Incremental size, sampling tools, how to extract them, the training sample
and laboratory environments, packaging and labeling of samples were performed according to
STAS 1068 69.
Determination of the fall (Falling Number), an empirical test that relies on the ability of
endogenous -amylase to reduce viscosity of the suspension treated warm flour is used, large
scale milling and bakery industry to predict, assess Baking quality of flour. In the wheat
sprouted, with a low number Falling, dextrin formed by -amylase action that result in a core of
sticky bread. It was found from experiments that the values fall turnover (FN) does not shrink
in direct proportion to the percentage of seeds germinate. Amylolitic activity depends on the
stage of sprouting of grain. Lack -amylase activity can be corrected by adding malt grain -
amylase or fungal.

Keywords: quality control, paramenters, grain mill products, a-amylase activity, Transilvania
JEL Classification codes: L15, O13, Q5

 HUMAN RESOURCES MOTIVATION - A CHALLENGE FOR SMES ECONOMIC
                                 PERFORMANCES
Popescu Dan, Chivu Iulia, Ciocârlan -Chitucea Alina, Popescu Daniela-Oana

The present research aims to establish and configurate human resources development
strategies for the employees of small and medium-sized enterprises (SMEs) that activate in the
tourism field of activity (hotels and other accomodation establishments, restaurants, passenger
trasnport, travel agencies, cultural turism agencies). As knowledge role in the contemporany
economy is increasing and defining the economical and social context as knowledge-based
ones, we shall consider the research frame as the knowledge-based economy.
Moreover, in order to better highlight weaknesses and strenghts of the human resources
management approaches and to define recommendations, our research theme is developped as
comparative study: similarities and differences within SMEs human resources management
practices in Romania and other European Union‟s country members (the example of Spain
was considered).
Keywords: human resources, motivation, profitability, SMEs, tourism
JEL Classification codes: M3, M31, L81
                                             173
  OPPORTUNITY TO REDUCE RESISTANCE TO CHANGE IN A PROCESS OF
                          ORGANIZATIONAL CHANGE
Predişcan Mariana, Săcui Violeta

This paper aims to present the research results conducted on several models of organizational
change regarding the identification of the appropriate moment in which the managers interest
should turn towards the reduction of the employees resistance to change. More specifically,
we intend to identify when is the best moment to reduce the resistance to change, depending
on the change we want to achieve.
After more research of organizational change models, we have reached the following
conclusions:
- not all models of organizational change present reducing resistance to change as a necessary
stage;
- the place of this phase in the models of organizational change is not considered to be the
same;
- some models of organizational change recommend indirectly reducing employee resistance
to change by indicating the use of some methods, techniques, processes that would lead to this
result. Here we include mainly: communication, training, positive motivation of employees;
- we recommended that the place of this stage should vary depending on the desired change to
achieve;
- in strategic changes, which are extremely important for an organization and which affect a
large number of employees, we recommend that the reduction of the employee resistance to
change be achieved before passing to the implementation of the plan developed to implement
the change;
- in imposed changes, in conditions of crisis when we have no time available to plan the
change, immediately after it had been implemented it is necessary to conduct effective actions
meant to ensure, even if the change has been made, the reduction of the resistance to change
of the affected employees
- to achieve time savings in the process of organizational change, we recommend that after
having obtained a certain attachment of some employees to change, the implementation of the
methods, of the techniques that would increase their commitment to continue to be developed
in parallel with the implementation of the change.

Keywords: organizational change, resistance to change, success, opportunity, organizational
change model
JEL Classification codes: O30, O39

 MANAGEMENT, COMPETITIVENESS AND BUSINESS HIGHER EDUCATION
Radu Catălina, Begu Liviu - Stelian, Cătăneţ Alina, Grigore Ana - Maria

What is competitiveness – a performance result or a driver of future performance?
Competitiveness is both a result and a cause and therefore it is a controversial issue that
requires continuous investigations to consider the permanent dynamics of the involved
variables. Organizational competitiveness is influenced by a multitude of factors. Some of the
variables are not controllable, yet others may be influenced as well. The most important
example is the managerial system, which is a complex, yet controllable variable.
This paper aims to propose a conceptual model to analyze the relationship between
management and organizational competitiveness. The major factors presented and directions
                                             174
for future research are suggested according to the proposed model containing a series of
dependence and inter-dependence relationships that were empirically tested. Our results are
based on processing information after applying a questionnaire to organizations of different
scales and from different fields of activity in two periods of time, in order to see the causal
relationships and the transformations over time. The general model was actually developed in
an initial form by one of the authors in her PhD. research and is further developed in this
paper, by following a multidisciplinary approach and by taking into account many aspects
developed by different specialists in the field of organizations‟ competitiveness.
This paper also aims to propose a series of specific analysis areas in the field of business
higher education, by having as a starting point our proposed general model of
competitiveness. The implications should be a better scientific management and future
organizational performance of business higher education institutions and a better quality of the
educational process that should really meet customers‟ needs and should lead to a better
performance of the economy as a whole.
The authors‟ main contributions refer to the development of the general strategic model of
competitiveness and the ideas for specifically applying it in the field of business higher
education.

Keywords: competitiveness, management, strategy, dynamics, business higher education
JEL Classification codes: I21, I23, L14, L21, L25, M10, M16

  THE INTENSIFICATION OF THE MOTIVATIONAL CHARACTER OF SMES
                                  MANAGEMENT
Robu Nicoleta Raluca, Savlovschi Ludovica Ioana

Irrespective of their size, all the companies in Romania face deficiencies in the motivation of
the staff, situation leading to the employees‟ dissatisfactions in work, their instability, the lack
of interest of employees in the performance of the organization.
An effective motivational system is the one bringing satisfaction in work to the staff. The
satisfaction in work is the state of balance that the individual reaches when he/she answers
completely some aware or unaware needs or expectations.
The new vision in the field of human resources is that managers should have in their suborder
self-motivated working teams, who, with a little supervision, can put into effect the goals
established. In this case, the managers have only the supporting role, granting consultancy to
the members of the team and providing the interface of the team wit the exterior. As for the
rest, the team members do it all, from the establishment of the objectives to accomplish to
their achievement. The concept of motivation approaches aspects that make people work
better and more; that they should be perseverant and to go over obstacles; that they should be
committed to work and enthusiastic with respect to the activity they carry out. A component
of the managerial role is that of providing people with motivations, making them be
committed to their work, but the success will be unlikely if we do not fully understand what
people want from their job.

Keywords: reengineering, human resource, motivational management, motivational scale
JEL Classification codes: M1




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   METHODS OF IDENTIFICATION OF THE NEED FOR ORGANIZATIONAL
                     CHANGE AS BEING OPPORTUNE
Roiban Roxana Nadina

Given that the world is constantly changing and the speed at which these changes occur is
very fast, it's vital that organizations understand the necessity and opportunity of change,
before their results or performance start to decrease. Although we always hear everybody
speaking about change, this concept still raises many questions and problems, and the
managers have difficulties on identifying what changes should be made in their organizations,
in developing an action plan to achieve change and to manage the entire process of change.
Without changing and without always adapting to new market requirements, which as a result
of the process of globalization includes not only the local market but also the international
one, organizations will not survive and will not be effective and efficient in order to achieve
performance.
The purpose of this paper is to highlight the importance of the opportune identification of
changes in order to reach the success of any organization by presenting how to recognize them
by managers or by owners in order to manage efficiently the scarce resources and achieve
better long term results. To identify the need for change as being opportune is recommended
an environmental analysis based on internal and external factors, to see the influence that they
show so that the organization could achieve those reactive changes, which consist in adapting
to the environment, or contrary to promote proactive changes that make the organization to
influence the environment and not vice versa.
No matter what kind of change takes place in an organization is important to note that it needs
to attract with it an improvement, so that top managers, who have a much clearer vision of the
organization as a whole, must promote only those changes that lead to better results than those
recorded before starting the process of change.

Keywords: schimbare organizationala, oportunitatea nevoii de schimbare, procesul de
schimbare, factori interni, factori externi
JEL Classification codes: M10

   EXPLANATORY ECONOMETRIC METHOD FOR THE ANALYSIS OF THE
        BEHAVIOR MANAGEMENT IN ORGANIZATIONS IN ROMANIA
Roşca Constantin

Our paper, entitled "Explanatory Econometric Method for the Analysis of the Behaviour
Management in Organizations in Romania" reflects the wide opening of econometric
modelling to quantify the Romanian management issues, representing a practical guidance on
multiple recovery plans to fund the huge data collected as part COMOR project launched by
the Scientific Society of Management in Romania to characterize the behaviour of managers
in the Romanian economic organizations. Construction of these models offers possibilities for
complex analysis, descriptive and factorial sequence of firms, counties, geographical areas,
but comprehensive summary of studies on the macroeconomic level. Scientific knowledge
through a comprehensive assessment of managerial behaviour in the most representative types
of business organizations of all geographical areas of the country are, in the context of
globalization, one way to prevent surprises market economy. Thus, the results of this
exploratory research will provide economic environment, and not only strong argument for
anticipating decisions in order to choose the best economic policies, with beneficial effects as
conclusive and with as few undesirable implications. Research based on the opinions of
thousands of respondents approved, processed through a variety of instruments subject of
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extensive econometric and interdisciplinary interpretation, psycho-socio-economic
management, is a modest contribution to the affirmation of local scientific research that aim
for theoretical and applied Romanian school of management by defining:
- knowledge of behaviour management in all types of business organizations in Romania;
- identifying the Romanian space dimensions of organizational culture as a reflection of the
peculiarities of national culture and especially of the main ethnic-specific subcultures;
- profile defining effective manager and leader of excellence in terms of character traits and
their behaviour.

Keywords: econometrics, management, organizational culture, descriptive analysis, factorial
analysis.
JEL Classification codes: M12

     THE EVALUATION OF EDUCATIONAL SERVICES QUALITY BY THE
   STUDENTS OF THE FACULTY OF ECONOMICAL SCIENCES „DIMITRIE
                         CANTEMIR” CLUJ-NAPOCA
Rusu Corina, Vlad Miranda-Petronella

The evaluation of the educational services quality by the students represents an important
element of the internal quality monitoring process for the identification of the necessary
actions required in the continuous improvement of the offered educational quality, and on the
other hand it represents an indicator of the university interest of having access at the student‟s
point of view. Starting from the student needs, together with the staff involved in the
evaluation and quality assurance committee of the Faculty of Economic Sciences Cluj-
Napoca, “Dimitrie Cantemir” Christian University Bucharest, we elaborated a questionnaire
for the evaluation of the educational services quality by the students, concerning: teaching-
learning activities, available admission information, tutorial system, class schedule, material
base, laboratory, course and seminar rooms equipments, administrative services, student
organizations, counselling services offered by the faculty. The conclusions of the study were
discussed with the faculty‟s management, decisions being made to take actions in order to
increase the student satisfaction level.
By developing and implementing their own strategy to quality policies and procedures, the
higher education institution is explicitly committed to develop a quality culture in all its
activities.

Keywords: quality, university management, educational services, higher education, the
quality circle
JEL Classification codes: I23, M10, M31

   SOCIAL PERCEPTION OF THE EDUCATION SYSTEM REFORM. SURVEY
        CONDUCTED IN UPPER HIGH SCHOOLS OF BIHOR COUNTY
Sabau Remus Mircea

Between the elements which mark the global processes, we can include educational issues, the
management of processes in pre-university education. Therefore, the synthetic approach to
educational problems in Romania, studied in terms of the processes and the phenomena of
social development, but also due to the need for submiting the pre-university Romanian
educational process to the European Union requirements, appears to be current and important.


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This analysis focuses on the decentralization of education. This theme is a true significant of
the stage and of the the changing potential of the management practice in the public area. Its
actuality is also hard to contest under the conditions in which changes in this area have been
slow compared to those of the other countries that joined the European Union (Hungary,
Czech Republic, Poland), contradictory and inconsistent (Herczynski and Levitas, 2001: 1-2).
The legislative changes, training facilities, as well as the constant institutional reorganization
of pre-university education show the presence of an active interest in this matter. However,
the real reform of university education still requires essential improvements. This study
analyzes the social perception of performers in pre-university system, establishes positive and
negative aspects of the reform in pre-university education, all from the perspective of
teachers. The research was conducted between March 1st, 2011 and April 1st, 2011. During
this time the questionnaire was applied and the data interpreted. The data obtained from the
questionnaire interpretation were introduced into the SPSS program. For the analysis and
interpretation of data we used SPSS 15.0. under Windows license. My investigation efforts
were directed towards the impact of decentralization on the performers in pre-university
education system and on their perception. The main purpose of the experimental study was to
determine the essential perceptions of the performers involved in the decentralization process.
Two general hypotheses were formulated: it is presumed that there is a negative perception
concerning the reform in pre-university education, and it is also presumed that the reform in
pre-university education does not coincide with a quality education, hypotheses confirmed at
the end of the research.
Keywords: reform, education, pre-university, MECTS, perception.
JEL Classification codes: I20, I21

      GENERAL CONSIDERATIONS REGARDING THE EVALUATION OF
                  PERFORMANCES OF EMPLOYEES IN A SME
Savlovschi Ludovica Ioana, Robu Nicoleta Racula

The evaluation of performances, in a broader meaning, is deemed an action or a certain type
of cognitive activity whereby an evaluator assesses or estimates the performance of a person
in relation to the performance standards settled, as well as his/her mental representation, with
his/her own system of values or his/her own conception regarding the performance obtained.
The performance evaluation systems are an intrinsic and utterly important part of the
management of human resources system, because the evaluation, when it is not done as a
mechanical activity, turns out to have a significant influence on the economic/social activity
and on the organisational climate within an organization, with direct repercussions on the
efficiency increase in general and the productivity in particular.

Keywords: performance evaluation, appreciation, performance management
JEL Classification codes: M1

 DO WE REALLY HATE OUR JOBS? DETERMINANTS OF JOB SATISFACTION
                                 IN ROMANIA
Săveanu Tomina Gabriela, Săveanu Sorana Mihaela

Job satisfaction is said to be an important factor of productivity at work along with having the
proper training, interests and motivation. Frustrations at work may derive from different
aspects of the job itself, the work environment as well as personal motivation for work and its
results. Human resources management theories focus on job satisfaction and motivations as
                                               178
means for achieving the institution‟s objectives, and consequently see motivations and
satisfaction at an individual level. Our paper investigated these issues at macro level, going
beyond the individual variables of job satisfaction to the ones hat explain the attitudes towards
work at national level. This approach is derived from cultural theories analyzing attitudes
towards work as a cultural value that varies across nations. In this manner we analyze data at
national level, investigating the factors that influence work satisfaction and attitudes towards
work of Romanians.
This paper aims at explaining the identified differences regarding the individual‟s attitude
towards their professional life. Considering the fact that work occupies a lot of time in
people‟s life and it is considered the second most important aspect of life after family, we
questioned the aspects that explain the levels of job satisfaction both in the light of theoretical
constructs and as results on the Romanian population. These indexes have a direct impact on
the quality of life, reflect the level of development, as well as point to further social
aspirations of individual actors. The current analysis reflects on different aspects of the
appreciation of work and investigates variations of work satisfaction: Which is the value
attributed to work? How important is work and how satisfied are individuals with their jobs?
Which are the characteristics that determine variations of job satisfaction?
After a theoretical synthesis of different approaches of work related attitudes in the literature,
the second section presents the data and the main research findings. For data analysis we used
the data obtained in the European Values Survey 2008, research conducted by the Romanian
group for the study of social values, supported by the Research Institute for Quality of Life.
Other data used in this paper derived from a research program developed at University of
Oradea – Social Sciences Faculty - HURO 0801/180 ENRI. The reserach section of this paper
follows the theoretical questions: first we focus on the value attributed to work by Romanians
and its contribution to self definition, then reflect on the significations of work, and finally
explain the levels of work satisfaction. The main findings of our analysis suggest that even
though work is seen as very important by Romanians, the main explanatory factor of job
satisfaction at a general level is connected to economical status provided by a certain job. In
the concluding section we stated several research directions that would provide better insight
in this topic.

Keywords: apreciation of work, job satisfaction
JEL Classification codes: M12, O15, J89

   ASPECTS OF SERVICE QUALITY AND ECOLABELLING OF ROMANIAN
                       LODGING SERVICES
Tomescu Ada Mirela

Tourism has a significant environmental, economic and socio-cultural impact, which makes it
important for environmental initiatives.
The Rio Earth Summit (1992) was a milestone for these initiatives, having introduced the
concept of sustainable development, its major principles and recommendations of
implementation. So, the ecological movement grew globally more and more by widely
disseminated actions among various bodies such as governments, associations, businesses,
academics, NGOs and communities.
In the European Union eco-labelling scheme, is “a voluntary initiative to promote products
and services which have the potential to reduce negative environmental impacts, as compared
to the other products and services in the same product or service group, thus contributing to
the efficient use of resources and a high level of environmental protection. This shall be
pursued through the provision of guidance and accurate, non-deceptive and scientifically
                                             179
based information to consumers on such products and services”. In fact this is official
approach known as EU-Ecolabel Scheme, launched in 2005.
In general, the idea of sustainable development, and eco-attitude of many of the activities
carried out in different economic sectors have been encouraged to be certified, and to adopt
sustainable practices to improve their environmental practices, and to inform and educate
their clients regarding their friendly-environmental policies. The tourism sector adopted all of
these.
One by one in hospitality industry have emerged new trends, new destinations. Some of these
trends are as well connected to environmental policy, eco-initiatives that certify EMS
(Environmental Management System) and to use of eco-label in hospitality industry.
For years, the tourism sector in Romania was declared a strategic sector. Within this
framework, we decided to examine this area, the specific topic of eco-labelling and quality of
lodging services in Romania.
This paper proposes a short examination by observation of studies dedicated to lodging eco-
label services and their quality based on a comparative analysis between Romanian supply of
tourism "green services" and international one.
This study has as a result a synthetic perspective on eco-label services and some aspects on
the state of art of this topic in Romanian and international context of lodging services.

Keywords: environmental policy, environmental management system, tourism, lodging
services, quality of services, eco-labelling, Romania.
JEL Classification codes: Q5, Q57, L15, L83

          MANAGING RENEWABLE ENERGY IN THE EU10 REGION
Zamfir Andreea, Bucurean Mirela

The problems of renewable energy and regional development have gained a global dimension,
as well as the concerns about the economic growth. Therefore, this study investigates the issue
of managing renewable energy in the EU10 region, within the context of recovery and
anticipated growth of the region. The findings of this study disclose that an important source
of economic growth in the EU10 region‟s countries may be to start some new investments in
renewable energy. In order to develop the field of renewable energy may be used EU funds,
and may be envisaged different public-private partnership models, that may contribute to
lower societal costs and increased deployment rates. The study was conducted by combining a
wide variety of sources, such as statistics, reports and articles. The results reported in this
study could be used for further research in the area of implementing green energy projects in
the EU10 region. Another direction for further research could be to identify the most attractive
countries for different renewable energy investment projects in the EU10 region.

Keywords: renewable energy, EU10 region, regional development, investment, economic
growth
JEL Classification codes: Q42, R11, O30, M10




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                             SUB-SECTION: MARKETING

  STUDY REGARDING STUDENTS’ SATISFACTION WITH INSTRUCTIONAL
        PROCESS AS A DIMENSION OF ACADEMIC PERFORMANCE OF
                     INSTITUTIONS OF HIGHER EDUCATION
Băcilă Mihai Florin, Ţîrca (Drule) Alexandra - Maria, Ciornea Raluca, Chiş Alexandru

Economic education in Romania has gone through many changes in recent years, in order to
modernize and adapt to the requirements of the economy based on knowledge. But, regardless
of the stage, students‟ satisfaction is a key criterion for assessing the relevance and the
accomplishment of the mission of universities in society. The highest satisfaction should be a
constant concern for managers of higher education institutions. In order to achieve this goal, it
is very important to periodically determine which are the most significant factors for students,
how satisfied are they and which is the performance of the higher education for these
attributes. The knowledge transfer process and the degree to which we can speak of a modern
university tailored to the needs of the business environment and focused on increasing the
relevance of the educational process for the labour market can be appreciated taking into
consideration the content of the educational activities. The objective of this research is to
identify relationships between the importance, satisfaction and performance of the
instructional process in the process of improvement of the university management and the
creation of better university programs. Our analysis was based on an empirical research
conducted in a major Romanian faculty in the field: Faculty of Economics and Business
Administration of Cluj-Napoca. The research was carried out by means of the survey method
using quota sampling. Findings have revealed a significant positive contribution of the
assessed factors to the increase of the quality of educational process. Also the factors that
characterize the instructional process are correlated. The results revealed students‟ concern to
acquire practical knowledge. There is also a significant difference between students'
expectations and students‟ satisfaction regarding the quality of the content of teaching
activity. Unfortunately, in case of all factors the performance of institution was negative
associated with a number of negative effects.

Keywords: institutions of higher education, educational management and marketing, quality
of educational services, student satisfaction, instructional process.
JEL Classification codes: I21, I23, M39

              INTERNAL ENVIRONMENT ANALYSIS TECHNIQUES
Caescu Stefan Claudiu, Popescu Andrei, Ploesteanu Mara Gabriela

Theme. The situation analysis, as a separate component of the strategic planning, involves
collecting and analysing relevant types of information on the components of the marketing
environment and their evolution on the one hand and also on the organization‟s resources and
capabilities on the other.
Objectives of the Research
The main purpose of the study of the analysis techniques of the internal environment is to
provide insight on those aspects that are of strategic importance to the organization.
Literature Review. The marketing environment consists of two distinct components, the
internal environment that is made from specific variables within the organization and the
external environment that is made from variables external to the organization. Although
analysing the external environment is essential for corporate success, it is not enough unless it
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is backed by a detailed analysis of the internal environment of the organization. The internal
environment includes all elements that are endogenous to the organization, which are
influenced to a great extent and totally controlled by it. The study of the internal environment
must answer all resource related questions, solve all resource management issues and
represents the first step in drawing up the marketing strategy.
Research Methodology. The present paper accomplished a documentary study of the main
techniques used for the analysis of the internal environment.
Results. The special literature emphasizes that the differences in performance from one
organization to another is primarily dependant not on the differences between the fields of
activity, but especially on the differences between the resources and capabilities and the ways
these are capitalized on. The main methods of analysing the internal environment addressed in
this paper are: the analysis of the organizational resources, the performance analysis, the value
chain analysis and the functional analysis.
Implications
Basically such an analysis of the internal environment allows the organization to identify its
resources and capabilities as best as possible, in relation to the threats and opportunities
brought about by the crisis situations.
Authors’ Contribution. The research allows the identification of the organizational behaviour
of resource and capabilities capitalization that must be adopted during the economic crisis.
The study may be useful to both the academic and the business environment.

Keywords: marketing environment, internal environment, resource analysis, performance
analysis, value chain analysis
JEL Classification codes: M31

   SOCIAL RESPONSIBILITY VALUES: A CROSS COUNTRY COMPARISON
Catană Doina, Catană Gheorghe Alexandru

This empirical study aims at finding out how similar and/or different are the future Romanian
and Slovenian managers in assessing the importance of organization‟s social responsibility
values. The assumption of the research is that most of most of students in engineering and
business will hold middle management position in the near future. The sample consists of 727
undergraduate and graduate students‟ levels from Romania and Slovenia, two former socialist
countries. The data has been collected between 2008 and 2009 in the framework of GLOBE
student project2, using a section of GLOBE III questionnaire, about the importance of CSR
related values in critical decisions. The findings concern the similarities and significant
differences between: 1) whole Romanian and Slovenian samples; 2) Romanian and Slovenian
students in engineering; 3) Romanian and Slovenian students in business. Our findings
revealed a trend toward convergence in the importance given to decision‟s effect on
contribution to the economic welfare of the nation and local community, as well as on
employees‟ professional growth and development and on environment. The biggest difference
between the groups concerns the decisions‟ effect on firm profitability (the Romanians
considering this value as more important in critical decisions than the Slovenians). The
students in engineering proved to be a more homogeneous group, showing convergence in
assessing the importance of eight out of fifteen social responsibility values. The biggest
difference concerns the decisions‟ effect on firm profitability (Romanians consider it as
having higher importance in critical decisions than the Slovenians). Comparison of students in

2
 The project is co-ordinated by R. Lang from Chemnitz University of Technology. The data for
Slovenia has been collected by D. Pucko and T. Cater (University of Ljubljana)
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business revealed convergence in assessing the importance of employees‟ professional growth
and development and decision‟s effect on environment. The biggest positive difference
concerns the same value of decisions‟ effect on firm profitability. The Romanians are well
behind Slovenians in realizing the importance of decisions‟ effect on relationships with
important partners of the organization, ethical considerations and decision‟s effect on long
term competitive ability of the organization.

Keywords: Social responsibility, Romania, Slovenia, students
JEL Classification codes: M14

 THE ROLE OF THE SALES TECHNIQUES IN THE MARKETING ACTIVITY OF
                      THE COMPANIES IN BUCHAREST
Cruceru Anca, Moise Daniel, Tatu Cristi

In a time of economic crisis there can be easily observed the difficulty in finding managerial
viable solutions to support the business at least at a level considered satisfactory in terms of
economic performance. The managers will try to adopt marketing strategies able to drive to
the preservation of the competitive position held in the reference market and to achieve goals.
But this cannot be achieved without a pertinent analysis of the situation of both enterprise and
business environment. It is also necessary to assess the marketing skills at its disposal, those
specific capabilities needed to conduct a profitable operation. All the marketing department's
efforts will be directed to implement sales techniques capable of giving to the promoted
products specific advantages and thus to achieve the marketing goals proposed.

Keywords: sales techniques, competitive position, competitiveness, marketing
JEL Classification codes: M: Business Administration and Business Economics; Marketing;
Accounting

THE PREMISES OF STRATEGIC MARKETING PLANNING IMPLEMENTATION
             WITHIN SMALL AND MEDIUM SIZED ENTERPRISES
Curmei Cătălin Valeriu, Ionescu Florin Tudor, Popescu Andrei

The main purpose of the present paper is to identify the framework and the necessary
conditions for the small and medium sized enterprises (SMEs) to be able to adopt the strategic
marketing planning. Also, the paper aims to underline the importance of the strategic
marketing planning and the manner in which the SMEs can adopt, implement and
operationalize the strategic marketing planning instruments, whose correct understanding and
usage ensure the capacity to generate competitive advantage, the key element both from the
perspective of the fierce competition and the perspective of the future development of the
SMEs. Within SMEs the implementation of marketing becomes an evident requirment, mostly
due to the relationship that these have with the market, thus, leading towards market
orientation of the activities, a new approach developed by the marketing vision on managing
the activities from these types of organizations. Regarded upon, from the marketing
perspective, the activities from the SMEs, especially the marketing activities, cannot take
place randomly. Resource allocation, a characteristic of these types of organizations, and the
objectives with regards to superior customer needs satisfaction and economic efficiency
maximization, claim thorough plannification and deployment of the activities in a sequence
that represents the implementation of a strategy previously assumed. Within this framework,
the strategic marketing planning appears as a complex process employing all scientific
                                              183
instruments that comprise segmentation, positioning and marketing mix. Utilizing the
strategic marketing planning within SMEs depends to further extend on marketing integration;
process directly related with a series of factors such as the nature of the market, development
stage, product type, management quality and the influences of the marketing department of
the SME. The implications onto the marketing activities from SMEs are reflected upon each
strategic marketing planning instrument, where we can find, under correct understanding and
application, objectives and market and penetration strategies as product, price, distribution and
promotion strategies.

Keywords: marketing, SMEs, segmentation, positioning, marketing mix
JEL Classification codes: M31

             STUDY ON RETAIL BRAND AWARENESS IN RETAIL
Dabija Dan Cristian, Abrudan Ioana Nicoleta

Brand awareness, together with other behavioural indicators (sympathy, trust, image,
satisfaction or loyalty), is one of the main vectors that has an essential contribution to the
outline of brand equity in general and to that of retail brand, in particular. The perception upon
these indicators must be taken into consideration by production, service or retail companies in
order to be able to identify their position on target markets, and in order to be able to create an
adequate strategy that would help them reach the desired positioning.
The aim of this paper is, on one hand, to reveal both the dimensions of brand awareness, and
the relationship between these and consumers‟ brand perception and, on the other hand, to
offer a suitable instrument to measure awareness level of various retail chains. Questioning of
almost 4.000 consumers indicates a significant awareness of the retailers that have been on the
selected market for a longer period of time.

Keywords: awareness, recall, recognition, retail brands
JEL Classification codes: M3, M31

   EDUCATIONAL INOVATION AND CONSUMER BEHAVIOUR. A STUDY OF
      STUDENTS’ PERCEPTIONS ON THE USE OF E-LEARNING IN CLASS.
Eftimie Raluca Cristina, Avram Emanuela, Tufan Adriana

In European and international context of a knowledge-based society, education becomes a
strategic element of sustainable economic growth. Developing human capital and adapt its
training to the present requirements of the labor market requires major investments both in the
formal education system and in individual study. In his position as a promoter of change, the
educational environment must actively respond to external challenges, demonstrating a strong
flexibility and openness to new.
Implementing the concepts and marketing strategies in the educational environment have
gradually led to the development of educational services and improvement of their quality.
Focusing on student, the mainstream of marketing, brings in front his requirements and
expectations, and the development of the educational strategies aim to satisfy his information
and intellectual development needs. School success is reflected in its students achievement as
a successful commercial product is observed by analyzing sales figures recorded.
Frequent changes occurring in society as a result of accelerated evolution of technique and
technology have made their mark on education. The assimilation of innovations in the
traditional educational processes imposed and behavioral changes and adaptations to all
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education stakeholders. Thus knowing the consumer behavior, the influencing factors and the
psychological processes decision making, becomes essential in creating an effective education
system.
The emergence of e-learning platforms as a result of the growing importance of lifelong
learning and integrating them in the traditional educational environment was a crucial moment
in the evolution of educational practices. Focusing on computer, Internet and intranets, e-
learning brings education a surplus of interactivity, interaction, responsibility and
collaborative learning. Considered as innovative solutions, initially, complementary to the
classical teaching techniques, e-learning technologies gradually penetrate the traditional
classroom learning environment.
Introducing innovation in the educational environment causes changes in the behavior of all
actors confronted with it. Hence, knowing the perceptions of the main consumers of
knowledge is a key element in the implementation process of innovation and assessing its
effectiveness. This paper aims to develop major behavioral theories on e-learning
environments, seeking to establish and explain the attitude of students, the main consumers of
educational services, in terms of their perceptions about the introduction and use of these
technologies in the classroom.
Considering the results of the presented study may be the starting point in developing a
complex behavioral pattern specific of the educational market by integrating behavioral
aspects of all actors involved in providing education and confronting them with the main
factors of influence.

KEY WORDS: education, consumer behaviour, innovation, e-learning
JEL Classification: M31, I25

  VISUAL POLLUTION: A NEW AXIOLOGICAL DIMENSION OF MARKETING
Enache Elena, Morozan Gigi - Cristian, Purice Suzana

Everyone‟s belief is that marketing plays a fundamental role in all economic or uneconomic
areas of business. However, what becomes very clear is that, in addition to the many positive
aspects that it generates, marketing produces unwanted effects as well.
The paper tries to prove the relationship between marketing and axiology (its value and its
perception on the people), on the one hand, and one of its most obvious effects - visual
pollution, which already starts to be in the attention of those who can counter it, on the other
hand. Value, as a concept, is a result of a long and laborious research, both economic and
uneconomic (philosophical, psychological, etc.). The visual pollution and the ecological
architecture are recent approaches and it cannot be said that there is a very rich experience or
a proper literature in this domain. But the interest is growing undoubtedly.
The authors consider that the demarche of the paper, to sit marketing, value and pollution
alongside, is at the beginning of the road and certainly will arouse the interest of further
research. The paper is the result of an office research of secondary sources of information.
They are limited and also limiting, the domains being studied separately. The result of the
paper is the noting on the fact that marketing can be extremely harmful. We agree with the
idea that marketing supports businesses and the economy of an area, but it is better to be
aware that the pollution it produces is increasingly significant so the rules by which marketing
plays must be rewritten.
If the authorities, the business itself and those involved in education will focus and will
exactly understand their role in a sustainable development of the society, than the aim will be
achieved. We believe that the authors‟ concerns, which are dedicated to the idea that by means
of marketing one should not destroy but build, will be of public interest as well.
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Keywords: axiology, value, pollution, marketing, ecology
JEL Classification codes: M31, Q56

       WIRELESS ADVERTISING: A STUDY OF MOBILE PHONE USERS
Gurău Călin

Topic: Using a qualitative methodology, this study attempts to provide a general framework of
the functions of mobile communication, and to identify the specific preferences of mobile
phone users regarding the commercial messages received on their personal devices.
Research objectives: (1) To identify the specific characteristics of mobile communication as
perceived by mobile users; (2) to define and analyze the functions of wireless communication
as perceived by mobile phone users; and (3) to investigate users‟ preference regarding the
content of commercial wireless communication.
Previous research: Bauer et al. (2002) identified time, location, information and
personalization as relevant acceptance factors for mobile advertising. Barwise and Strong
(2002) developed a conceptual model, arguing that social norms, user‟s motives, mode, time,
location and personal characteristics will affect the processing of mobile information by
consumers. Tsang et al. (2004) evidenced the influence of entertainment, informativeness and
irritation, while Bauer et al. (2005) argued that consumer attitudes are influenced by perceived
information, entertainment, and social utility. In a similar study, Xu and Gutierrez (2006)
tested the effect of entertainment, irritation, informativeness, credibility and personalization
on the attitudes of Chinese consumers.
Research methodology: First, a series of academic and practical articles and reports have been
accessed in order to assess the existing knowledge on this topic. Second, five focus groups
have been organized with six mobile phone users, aged between 20 and 40 years old. Each
focus group comprised an equal number of male and female participants. The focus groups
lasted between 45 and 60 minutes and addressed three main issues: the specific characteristics
of the mobile phones as a commercial communication media, the functions of mobile phone
communication, and the specific preferences of mobile phones users regarding the content of
commercial messages.
Findings: The participants demonstrated an active attitude regarding mobile advertising,
which they think it has the potential to revolutionize the practice of commercial
communication, by focusing more on consumer‟s personal needs and circumstances.
Implications: This transformation cannot be realized without increasing the interactive control
of mobile phone users‟ over the functionality and content advertising messages. Although the
required technology already exists, it seems necessary to create new applications that can
combine the advantages of customer-, product- and location- centered communication.
Original contribution: Previous studies often used an analytical approach, highlighting
specific variables regarding consumer perception or technology adoption. Using a qualitative
methodology, this study provides a general framework of the functions of mobile
communication, and identifies the specific preferences of mobile phone users regarding the
commercial messages received on their personal devices.

Keywords: wireless advertising, mobile phones, functionality, content, users’ opinions
Cod JEL: M37




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  THE IMAGE OF INVESTMENT AND FINANCIAL SERVICES COMPANIES IN
                   WWW LANDSCAPE (WORLD WIDE WEB)
Iancu Ioana Ancuţa

In a world where the internet and its image are becoming more and more important, this study
is about the importance of Investment and Financial Services Companies web sites. Market
competition, creates the need of studies, focused on assessing and analyzing the websites of
companies who are active in this sector.
Our study wants to respond at several questions related to Romanian Investment and Financial
Services Companies web sites through four dimensions: content, layout, handling and
interactivity. Which web sites are best and from what point of view? Where should financial
services companies direct their investments to differentiate themselves and their sites? In fact
we want to rank the 58 Investment and Financial Services Companies web sites based on 127
criteria.
There are numerous methods for evaluating web pages. The evaluation methods are similar
from the structural point of view and the most popular are: Serqual, Sitequal, Webqual / Equal
EtailQ, Ewam, e-Serqual, WebQEM (Badulescu, 2008:58).
In the paper: "Assessment of Romanian Banks E-Image: A Marketing Perspective" (Catana,
Catana and Constantinescu, 2006: 4) the authors point out that there are at least four complex
variables: accessibility, functionality, performance and usability. Each of these can be
decomposed into simple ones. We used the same method, and we examined from the utility
point of view, 58 web sites of Investment and Financial Services Companies based on 127
criteria following a procedure developed by Institut fur ProfNet Internet Marketing, Munster
(Germany). The data collection period was 1-30 September 2010.
The results show that there are very large differences between corporate sites; their creators
are concentrating on the information required by law and aesthetics, neglecting other aspects
as communication and online service.
In the future we want to extend this study at international level, by applying the same methods
of research in 5 countries from European Union: Germany, France, Britain, Italy and Spain.

Keywords: Financial Companies Websites, Websites Content, Websites Layout, Websites
Handling, Websites Interactivity
JEL Classification codes: G29

       PRODUCT PORTFOLIO ANALYSIS - ARTHUR D. LITTLE MATRIX
Ionescu Florin Tudor, Curmei Cătălin Valeriu

In recent decades we have witnessed an unseen dynamism among companies, which is
explained by their desire to engage in more activities that provide a high level of development
and diversification. Thus, as companies are diversifying more and more, their managers
confront a number of challenges arising from the management of resources for the product
portfolio and the low level of resources with which companies can identify, at a time.
Responding to these challenges, over time were developed a series of analytical product
portfolio methods through which managers can balance the sources of cash flows from the
multiple products and also can identify the place and role of products, in strategic terms,
within the product portfolio. In order to identify these methods the authors of the present
paper have conducted a desk research in order to analyze the strategic marketing and
management literature of the last 2 decades. Widely were studied a series of methods that are
presented in the marketing and management literature as the main instruments used within the
product portfolio strategic planning process. Among these methods we focused on the Arthur
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D. Little matrix. Thus the present paper has the purpose to outline the characteristics and
strategic implications of the ADL matrix within a company‟s product portfolio. After
conducting this analysis we have found that restricting the product portfolio analysis to the
A.D.L. matrix is not a very wise decision. The A.D.L. matrix among with other marketing
tools of product portfolio analysis have some advantages and disadvantages and is trying to
provide, at a time, a specific diagnosis of a company‟s product portfolio. Therefore, the
recommendation for the Romanian managers consists in a combined use of a wide range of
tools and techniques for product portfolio analysis. This leads to a better understanding of the
whole mix of product markets, included in portfolio analysis, the strategic position held by
each product within a market, the performance potential of product portfolio and the financial
aspects related to the resource allocation process for the products within the portfolio. It
should also be noted that the tools and techniques specific to product portfolio analysis do not
give accurate answers, despite the appearances created by the analysis stage, where the
products are plotted rigorously. However, their main virtue is simplicity, as these highlight the
managers‟ need for further investigations.

Keywords: product portfolio, ADL matrix, life cycle, competitive position, strategic analysis
JEL Classification codes: M31

     CONSUMER BEHAVIOR ON THE FRUITS AND VEGETABLES MARKET
Istudor Nicolae, Pelau Corina

In the past years the intensification of competition has changed the way in which companies
communicate with their customers. The main challenge doesn‟t represent anymore to create
good products but also to be able to sell them. The best marketing strategy of a company can
be best developed if the needs and the behavior of the consumer are known. In this paper there
are analyzed the results of a research about the behavior of consumer towards fruits and
vegetables. The research was done in the period December 2010 – February 2011 on 146
respondents regarding the buying behavior of consumers at retailers. The focus in the research
is put on the cognitive and emotional reactions consumers have when they make the buying
decision and consisted out of an observation and a survey. In this article there are presented
both aspects regarding the observed behavior towards fruits and vegetables and the motives
which led to this behavior. Depending on these results, there are presented the implications of
this behavior on the marketing strategy of a company.

Keywords: consumer behavior, emotional and cognitive reactions, fruits and vegetables
market
JEL Classification codes: M31

    LE DYNAMISME DES TPE ET PME ET L'`EVOLUTION DE L'ECONOMIE
                                    ROUMAINE
Jubenot Marie - Noelle, Marc De La Villefromoit

The Entrepreneurship concept has its roots in the mid-1970s, it is getting really important
much later in the 1990s (Hernandez, 2010). The entrepreneur is at the heart of regional
development as an engine of growth. The entrepreneurial culture is the challenge for Romania
in order to better integrate into the European Economic Area. Entrepreneurship involves
business creation, and also the firms management for development. The Romanian private
sector can be characterized by two indicators: the very small businesses and their low density
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relative to population. Much progress has been made since the beginning of the transition, but
Romania is still lagging behind other countries in the area Central and Eastern Europe. One
way to address the characteristics of the industrial system in Romania is perhaps the
establishment of business networks (or clusters) to boost businesses.

Keywords: Micro, small and medium enterprises (MSMEs), transition, Business Growth,
clusters
JEL Classification codes: M20, P20

   DEVELOPMENT OF THE E-GOVERNMENT MARKET IN THE EUROPEAN
       UNION: AN ANALYSIS OF THE SUPPLY VERSUS DEMAND SIDES
Palade Marius, Vegheş Călin

E-government represents one of the most palpable results of the dynamic development of the
information and communication technology. Defined mostly as an intensive use of
information technologies to provide public services, e-government has been approached in the
literature rather from a technological perspective, with a significant importance given to the
supply and a lower attention paid to the demand side. The increasing interest in taking into
consideration the demand side in the development of the e-government initiatives and projects
has created the foundation for a shift in the way the conceptual framework for e-government
planning and implementation is defined, from the technology infrastructure and costs to the
customer-centric character of all the efforts done.
The European Union put e-government on its agenda aiming to improve access to the public
information and services, increase transparency of public administration, exploit effectively
the information technology within public administration, and establishing e-procurement. The
development of the e-government services in the Member States, as it is expressed by the data
regarding the supply and demand side, has been conducted in a more or less different manner
that led, at the Union�s level, to a relatively high availability but a rather low usage of the
specific services.
The paper explores the relationship between the e-government supply and demand based on
the secondary data referring to the public services available to the citizens (as these are
defined by the Eurostat methodology) and the usage of these services by the individuals,
integrating them through an analytical matrix inspired by the BCG model. Probably the most
important conclusion of this analysis states that development of the e-government services has
not been accompanied by measures meant to stimulate their usage in the most of the European
Union Member States. The analytical matrix allowed also the identification of the question
mark, star, cash cow and dog Member States in terms of the e-government market
development.

Keywords: e-government market, demand, supply, European Union
JEL Classification codes: M31

 PORTFOLIO ANALYSIS – A BASIC INSTRUMENT IN STRATEGIC PLANNING.
           CASE STUDY ON THE ROMANIAN INSURANCE MARKET
Petrescu Marian, Petrescu Eva Cristina, Ioncică Diana, Bicăjanu Vasile

Practice proved that strategic planning is a necessary process for insurance companies. This
process can help companies to adapt more easily to environmental changes. The strategic
planning of the activity of an insurance company cannot be realized without a careful analysis
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of the evolution of the market and without studying the company's market position. A classic
model used in the portfolio analysis is the Boston Consulting Group model. In this paper we
have used the model for studying the activity of the leader of the Romanian insurance market.
In 2009 Alliantz Tiriac had 17 types of insurance in the portfolio. Each class of insurance was
considered a strategic business unit. We have studied the insurance portfolio by using
secondary data from specialized publications, such as the Romanian Insurance Supervisory
Commission. Using the data, we have calculated for Alliantz Tiriac, for each class of
insurance, the relative market share. The company was leader on the market for five classes of
insurance. The economic crisis had a severe impact on the evolution of the Romanian
insurance market: from the 17 classes of insurance studied: nine had registered a decrease of
the market, eight had registered an increase, but only for three of them the growth exceeded
10%. Using the relative market share and the market growth we have identified the “cash
cows”: there are five classes of insurance in this category, among which the “Insurance for
land vehicles (CASCO)” which represented more than half of the sales (55.82%);
unfortunately, in the case of this insurance type there was a very significant decrease of the
market in 2010 compared to 2009: -25.12%, the “question marks” – there are three classes of
insurance in this category, and the “dogs”. Due to the crisis, a large number of the company's
products are in this category and there are no “star” products.
This work was supported by CNCSIS – UEFISCSU, project number 915 / 2009 PNII – IDEI
1773/2008

Keywords: insurance market, strategic business unit, BCG model, market growth, relative
market share
JEL Classification codes: M31, G22

     COMPETENCES ACQUIRED BY GRADUATES THROUGH MARKETING
    HIGHER EDUCATION TRAINING – FINDINGS FROM THE EMPLOYERS’
                                   PERSPECTIVE
Plăiaş Ioan, Pop Ciprian Marcel, Dabija Dan Cristian, Băbuţ Raluca

The primary purpose of the economic higher education in providing the graduates with
marketing competences is to train them for employment. In light of the said objective, two
important aspects must be taken into account by educators. First, the gap between theory and
practice must be eliminated. Secondly, educators must select and provide the competences
required by employers so that new graduates may obtain employment matching up to their
training. The purpose of the present study is to highlight the main dimensions which define
employers‟ perception of the marketing competences developed by the graduates whom they
have employed. The starting point of the present scientific endeavour is the evaluation of the
variables which define the transversal competences and the marketing-specific competences.

Keywords: competences, curriculum, employers, evaluation, quality assurance
JEL Classification codes: M1, M3, M31

         A QUALITATIVE RESEARCH REGARDING THE MARKETING
       COMMUNICATION TOOLS USED IN THE ONLINE ENVIRONMENT
Nicolae Al. Pop, Acatrinei Carmen

Starting from the meaning of the communication process in marketing, the authors try to
identify its role in assuring the continuity of the management process in what concerns the
                                             190
relationships between all the partners of the company, on the long term. An emphasis is made
on the role of online communication and its tools in relationship marketing. In order to
validate some of the mentioned ideas the authors have chosen to undertake a qualitative
marketing research among the managers of some Romanian tourism companies. The
qualitative part of the study had as purpose the identification of the main tools which form the
basis of the communication with the beneficiaries of the touristic services, of the way in which
the companies use the online communication tools for attracting, keeping and developing the
long term relationships with their customers in the virtual environment. The following tools
have been analyzed: websites, email marketing campaigns, e-newsletters, online advertising,
search engines, sponsored links, blogs, RSS feed, social networks, forums, online discussion
groups, portals, infomediaries and instant messaging. The chosen investigation method was
the selective survey, the research technique – explorative interrogation and the research
instrument – semi structured detailed interview, based on a conversation guide.
A very important fact is the classification resulted after the respondents were requested to
mention the most efficient tools for attracting customers and for maintaining the relationships
with them. Although the notoriety of the online marketing tools is high, there are some tools
that are known by definition, but are not used at all or are not used correctly; or are not known
by definition, but are used in practice.
The authors contributed by validating a performing methodology of qualitative research, a
study which will open new ways and means for making the online communication tools used
for touristic services in Romania more operational. It is to be mentioned that the chosen
domain of application has not yet been researched within the national literature.
The qualitative research results will form the basis for a quantitative study among the
consumers of touristic services in order to identify their opinion in what concerns the usage of
online marketing tools by the tourism companies in maintaining the relationships with them.

Keywords: Relationship Marketing, CRM, Online Marketing Communication, Market
Research
JEL Classification codes: M31

     THE COMPETITIVE POSITIONING OF THE SME’S ON THE MARKET
Pop (Bandi) Ramona

Having in view at the same time the possibilities identified for the development of the
competitivity of the Romanian SMEs in order to face the new challengens and the use of the
opportunities to operate on the inner market as well as the on the level of the European Union,
the strategy has in view a series of measures and actions that are connected to a series of
priorities. These priorities and related actions were established on basis of the present-day
situation of the SMEs carried out by the ANIMMC. According to the position of the SMEs on
the market,. these can choose different types of marketing strategies with the aim of attaining
in a certain period of time of the objectives established and at the same time their
consolidation on the market.

Key-words: SME’s, competitive, integration, marketing strategies.
Cod JEL lucrare: M31




                                              191
 EUROPEAN POLICIES FOR THE STIMULATION OF THE DEVELOPMENT OF
                  SMALL AND MIDDLE SIZE ENTREPRISES
Pop (Bandi) Ramona

Europe‟s small and medium-sized enterprises are the engine of the European economy and the
main drivers for achieving sustainable growth and more and better jobs. At EU level, the
European Commission has developed a comprehensive SME policy, which aims to ensure that
Community policies and actions are small-business friendly and contribute to making Europe
a more attractive place for setting up a company and doing business.

Keywords : SME’s, European Commission, financing opportunities, private and governmental
policies.
Cod JEL lucrare: M31

 INVESTIGATING THE PATIENT SATISFACTION WITHIN ROMANIAN PUBLIC
                          AND PRIVATE HOSPITALS
Popa Adela Laura, Roşca Remus Dorel, Mihoc Florin

Although it is not commonly accepted within healthcare services industry, the importance of
marketing is more and more recognized nowadays by the organizations activating in the field.
Current perception resides in a series of factors as: ethical aspects involved in the delivery
process; special characteristics of the market; particular profile and behavior of the consumers
of healthcare services and probably because of the inadequate understanding of the marketing
role in the life of an organization. A deep analysis in the field of healthcare services will
emphasize not only its complexity, but also its interdisciplinary feature under many aspects, as
it is an area where many fields of interest are intersecting, both economic and social. It also
reveals a particular field of study with many particular features - considered a sensitive field
(Popa and Vladoi 2010: 232). Generated using the SERVQUAL model, the data presented in
the paper are the result of a quantitative research designed to measure and compare the
patient/client satisfaction degree for public and private medical services provided by the
Romanian hospitals. The aim of the research is to identify and to measure the gap that appears
between the patient/client‟ expectations and perceptions regarding the delivered services; to
identify the potential profile of the private Romanian hospitals‟ clients regarding the
demographic features and also to pin-point correlations between the image created in the mind
of the Romanian patients/clients and the type of medical services (public or private) they were
using. We consider that the results of this research are valuable for the managers of the
medical units in order to initiate series of actions aiming to improve the quality of their
services and, as a result the patient/clients‟ satisfaction degree. Later being one of the most
important performance indicators of an organization that activates in a highly competitive
business environment. We also consider this research may be useful in the process of
improving the quality of the medical services in Romania, which must be a priority for any
medical units‟ management and for the society as a whole. Present paper intends to lay
foundation for future research, tailored to correlate the quality culture for the Romanian
hospitals and the satisfaction degree of their patients/clients.
Keywords: relationship marketing, patients’ satisfaction, public and private medical services,
Oradea, Romania
JEL Classification codes: M31, I11



                                              192
                  STRATEGICALLY REPOSITIONING RUSSIA
Popescu Andrei, Caescu Ştefan Claudiu, Brandabur Raluca Ecaterina

Positioning is a very important marketing concept. Its importance was strongly emphasized
and implemented in the case of companies, but is somehow neglected when it comes to states.
A country acquires a position in the mind of a person very much like any other product does,
which is very important especially when that person exerts an executive role. Nowadays
Russia has a poor image or no image at all, both internationally and in Romania. In order to
regain an important position in the Balkans region, Russia must set aside any political agenda
and reposition itself as a business partner on equal terms. The first goal of this article is to
clarify Russia‟s position in the minds of future Romanian executives. The second goal is to
outline a recommended course of actions for Russia‟s repositioning.

Keywords: marketing, positioning, strategy, Russia, marketing research
JEL Classification codes: M3

       POSITIONING VS. STUDENTS, A TROUBLESOME RELATIONSHIP
Popescu Andrei, Brandabur Raluca Ecaterina, Curmei Cătălin Valeriu

Positioning is a very important marketing concept. Its importance was strongly emphasized
and implemented in the case of companies, but is somehow neglected when it comes to states.
A country acquires a position in the mind of a person very much like any other product does,
which is very important especially when that person exerts an executive role. Nowadays
Russia has a poor image or no image at all, both internationally and in Romania. In order to
regain an important position in the Balkans region, Russia must set aside any political agenda
and reposition itself as a business partner on equal terms. The first goal of this article is to
clarify Russia‟s position in the minds of future Romanian executives. The second goal is to
outline a recommended course of actions for Russia‟s repositioning.

Keywords: marketing, positioning, marketing research, education, mind
JEL Classification codes: M3

   THE IMPORTANCE OF ENVIRONMENTAL PROTECTION IN CSR POLICY
Roşca Mihai Ioan

The CSR policy of companies occupy a privileged environment through coaching programs to
other interests such as employees, suppliers, customers, authorities and various NGOs. This is
why we wanted to see what the environment is important for managers on companies in
Romania, the company's CSR policy.
In the literature the definition of social responsibility and ways to implement this in practice
are often encountered. Some authors claim that societal marketing concept has not found its
way into the language of business. From here, there were other terms that had a greater impact
on the business environment such as social responsibility. Increasing the company's impact on
the environment, the pressure exerted by stakeholders, and identifying positive elements of
socially responsible approach have been the main stimulus for development of social
responsibility. From that a lot of studies on academic and commercial problem.
And the present study fit the same line we conducted a research on 50 companies,it was an
exploratory research. As respondents were chosen only marketing managers or general
managers or even owners compnaie depending, in other words I tried to go directly to
                                              193
company decision makers in developing and building its image. While this one sample is
statistically representative of the point of view we have covered with him in all areas of
business activities and of all sizes can say that the results provide a clear enough picture of
managersmentality in companies in Romania on business activities with the problem of
intereactiunii environment
Managers of companies in Romania recognize the environmental problems and say they are
implicating in various actions to protect the environment. On the declarative level social
environment is one of the most important areas being the most nominated as one of the top
three areas of social nature that would involve having the greatest opportunity for
development in coming years, over 60% of companies saying they would like to be involved
in future environmental programs. Instead, the real actions to protect the environment are
relatively few or are carried out not caring for the environment but because of economic
worries, because there is an economic advantage for application of these methods. These
actions result in social activities and what they had to declare they have made to protect the
environment and the ways reporting their concerns for the environment in economical
manner. The lack of environmental reports, the lack of certifications and the lack of
requairements of certification amond the suppliers shows once again the real place of the
environmental problems among the managers interests.

Keywords: green marketing, ecological products, Romania
JEL Classification codes: m31

    ADOPTION OF E-BANKING IN ROMANIA: AN EXPLORATORY STUDY
Roşu Anca Maria

E-banking, or banking via the Internet, is revolutionising the business, having multiple
benefits both for the financial institutions and for clients. E-bankers offer better customer
service, creating opportunities for customers and providing added value. They treat customers
as individuals, making masss customisation possible and creating customer loyalty. E-banking
is an opportunity for banks to leverage their strenghts and create a totally new banking
experience. The present paper investigates and analyses the adoption and evolution of
electronic banking in Romania, and the appropriate strategies for development of online
banking services in the Romanian context.

Keywords: E-banking, customer adoption, banking channels, Romania
JEL Classification codes: G21, L86, M31

          BUSINESS INCUBATORS AND SUSTAINABLE INNOVATION
Schebesch Klaus Bruno

Innovative businesses are often the result of collective action of organisations involved in
many-sided market structures, which can be found in and around business incubators or
technology centres. Within such frame environments, many group interests beyond those of
single producers and their immediate clients exist and interfere. Rather generically, important
economic outcomes of innovations are sequences of cost reduction events at the level of
economic sectors, where the nature of (sector-wise) technology is influencing the pace of
these events. At the conceptual level, we describe the social learning and social innovation
process which leads to sustainable in novation by means of the influence exerted by firms on
each other within constrained environments such as business incubators. These environments
                                             194
need not to be organized according to any sector logic. We propose that the influence exerted
between firms is increasing in firm similarity, in the degree of product complementarity, and
also to depend on (mutual) trust relations.

Keywords: Innovation, Incubators, Learning, Networks, Sustainability
JEL Classification codes: A12, M39, O30, O31

THE FORTIFIED CHURCHES FROM TRANSYLVANIA - HOW WELL ARE THEY
                     KNOWN BY THE ROMANIAN CITIZENS?
Serb Silvana Valentina

The Fortified Churches from Transylvania represent an important category of historical and
religious sights of the anthropic touristic potential - historic cultural potential of this region.
However, they are not exploited from a touristic point of view at their fair value, one reason
being the weak promoting activity, especially the lack of information among citizens about the
existence of these churches. In this paper, I intend to highlight on the information level
awareness among the Romanian citizens regarding the existence of these churches, to identify
which are the most well known and visited churches and to establish the profile of those who
visit the churches.
In the end, the results of this research impose a set of measures to improve the level of
information among the Romanian citizens concerning the existence of this historic and
religious heritage.
The paper is relevant for the doctoral research project called “Marketing Places – religious
and historical sights of touristic interest from Transylvania” under the guidance of Professor
Doctor Marius Pop, Babeş-Bolyai University of Cluj-Napoca, Faculty of Economics and
Business Administration, during 1st of October 2009 – 1st of October 2012.

Keywords: fortified churches, tourism, awareness, romanian citizens, research
JEL Classification codes: M31

  THE SAVING AND INVESTING CONSUMER BEHAVIOR ANALYSES ON THE
                      ROMANIAN FINANCIAL MARKET.
Tănase (Roşca) Laura Daniela

This article aims to provide an analysis of the saving and investing consumer behavior, that
where researched in a time of changes after a severe financial crisis. The analyses purpose was
to determine the reasons, or the way that the reasons would change, for buying different
financial instruments, and also the way that the consumer perceives investing and saving.
Different demographical characteristics and their influence on the financial behavior of the
consumers were also studied. The investor behavior on the developed markets is being studied
carefully for many years. The need to create financial products for each customer type, such
as Generation Y, intensely investigated by various research teams, in different ways, resulting
in different characteristics such as general proclivity to the marketing, advertising,
consumerism, branding, environmental issues, fashion and even anxiety, begins to be felt also
on the Romanian market. So, to better understand the actual degree of knowledge that the
consumer have on the concepts of saving and investing and on that activities involved into this
concepts is a very important step of the research. The research method is a survey based on a
sample chosen with the simple random method undertaken in 2010. There were gathered 480


                                               195
questionnaires. Research is not a statistical nationwide representative because of the lack of
the financial and human capabilities.
The developed questionnaire summarized 22 questions, in order to illustrate the way that
saving and investing were seen, to see actual investing behavior and to measure the degree of
trust given to the most known investing means. We expect that the methods of "investing" that
are most known and used to be bank deposits because in Romania the risk appetite is a low
one. The people‟s appetite for saving activities we expect to be motivated by the need for
purchasing consumer goods, and eventually buying a car or a house but not the desire to
accumulate capital by making real investments such as those in financial assets. An important
factor for the decision to invest should be a higher income and also the family structure. Study
could be interesting for researchers because it offers an opportunity to view an analysis of the
customer behavior on the financial market. The research instrument is complex, the mix and
the large number of question should provide an accurate image of the way the Romanian
consumer of financial products think and act on this market. The study also helps to
understand consumers' needs for practitioners, because this field is not a largely researched
one. The originality of this article is given by the manner in which the questionnaire was
made. The battery of questions, including a series of likert question, it should provide an
accurate mirror of the know-how the Romanian consumer of financial products actually
possess, the reasons on with their behavior is based on, and what are the most important
characteristics that influence the purchase behavior.

Keywords: consumer education, saving, investing, marketing research, financial market
JEL Classification codes: M31

          THE IMPACT OF THE 21ST CENTURY FOOD MARKETING ON
                           CHILDREN’S BEHAVIOUR
Tarcza Teodora Mihaela, Olar Ana - Elena

This paper aims to raise a question mark regarding children‟s food habits in the last decades in
Romania, and how globalization, marketing and advertising influenced and changed our old
romanian food prefferences. We will highlight that children spent a lot of time watching TV,
choosing a cartoon character, or an advertising star on the same age as him/her as a model,
and then copying their behaviour, and acting like them. So, they have the idea that they will
gain their parents‟ love and their colleagues appreciation.
The rise of obesity is one of today‟s biggest societal challenges. Thus, to halt obesity has
become a goal in several political sustainability strategies. The focus is on children since their
health behaviour is expected to have a strong impact on consumers in adulthood. To fight
childhood obesity, the challenge is to develop the „right‟ policy toolbox. One complicating
aspect amongst others is the numerousness of actors involved. To find a policy mix and assess
its consequences for all actors, it is essential to understand the underlying mechanisms – the
impact of external and internal factors on children‟s health behaviour. Tools such as
regulation, information and education appear to be insufficient to curb this unsustainable
consumption behaviour.
Keywords: food marketing, advertising, children, gatekeepers, ethic code
JEL Classification codes: M31




                                               196
THE ROLE AND IMPLICATIONS OF THE EVENT BASED COMMUNICATION IN
                           THE ELECTORAL CAMPAIGN
Tatu Cristian Ionut, Pastiea Mihai, Ion Andrei

The electoral campaigns are considered to be among the most delicate challenges for a
marketer due to the limited time available, the sensible margin for error, the high impact of
each statement and the condensation of a quite large amount of resources in a 30 day period.
While the ultimate goal for the campaign staff is to bring the global electoral package closer to
the electorate and earn their votes most, of the time various competitors use disappointingly
similar tactics that create confusion among the electorate. The campaign related events turned
out to be one of the tactics that allows for a pin-point targeting of the electorate and a better
control on the receivers of the message. This paper focuses on the types of events used that
can be used in an electoral campaign reinforced with their particularities and effects registered
in previous campaigns.

Keywords: electoral marketing, communication, events, targeting, global electoral pachage
JEL Classification codes: M39

  A MARKETING VIEW OVER THE ROLE OF THE PUBLIC AUTHORITIES IN
         THE PROTECTION OF THE CONSUMERS’ PRIVATE SPACE
Vegheş Calin, Acatrinei Carmen, Dugulan Diana, Palade Marius

The concept of privacy, seen in connection with the consumer's private space, and defined in
terms of the rights the consumer have to disclose or not, respectively to have protected their
personal data has gained an increasing importance, as a result of the organizations‟ extended
and more and more aggressive attempts, within their marketing efforts, to capture, process and
use the consumers‟ personal data. Privacy protection has become an important but, in the
same time, extremely sensitive and challenging topic to be taken into consideration by all the
stakeholders involved in the processing and employment of the consumers‟ personal data. A
key role in this respect is played by the public authorities acting as data controllers – the Data
Protection Authorities, that have to adopt a more proactive and efficient attitude in adopting
and implementing policies and processes aiming to ensure a more effective protection of the
personal data and private space, conduct privacy impact assessments and continuously
improve the specific activities.
Paper presents the opinions of the consumers through the results of an exploratory study
regarding the importance given to the protection of the personal data, the area of protection of
the specific laws, the need for laws regulating the personal data protection, the balance
between the public and private entities in providing a proper protection of the personal data,
and the relationship between the domestic, European, and international levels in ensuring the
protection of the consumers‟ personal data. Results regarding the role of the public authorities
in the protection of the consumers‟ personal data and private space– in terms of the most
appropriate institution to act as a data controller, the rights consumers consider important in
relationship with the protection of their personal data and the risks faced in the context of a
less effective protection – are also presented.

Keywords: consumer, public authorities, personal data, consumer private space, Romania
JEL Classification codes: M31



                                               197
     CAN MARKETING SUPPORT THE IMPLEMENTATION OF EFFECTIVE
  EGOVERNMENT? ANALYSIS OF THE SINGLE POINT OF ACCESS PORTAL
              FOR ROMANIAN ELECTRONIC PUBLIC SERVICES
Velicu Bogdan Călin

The advances in technology hold great potential for helping Romanian government respond to
its challenges namely, better service delivery, better procurement, efficient working and better
communication with citizens and businesses. While the European Commission develops the
main strategies on eGovernment, every member state has the freedom to identify its own
necessities and decide according to specific social, administrative and economic context.
Designing, cost setting, choosing the best supply channels or communicating with involved
actors, are all marketing instruments which, if used accordingly, can ensure modern and
efficient public services. This paper presents an analysis of the degree of development of
public services available at the “www.e-guvernare.ro” portal, the single point of access for
specific Romanian electronic public services.
Key words: electronic government, public services, marketing instrument, development,
internet
Cod JEL: M30, M31, M38

Keywords: electronic government, public services, marketing instrument, development,
internet
JEL Classification codes: M30, M31, M38




                                              198
                   SUB-SECTION: ECONOMIC INFORMATICS

      MODEL DRIVEN DEVELOPMENT OF ONLINE BANKING SYSTEMS
Avornicului Mihai-Constantin, Bresfelean Vasile Paul

In case of online applications the cycle of software development varies from the routine. The
online environment, the variety of users, the treatability of the mass of information created by
them, the reusability and the accessibility from different devices are all factors of these
systems complexity. The use of model drive approach brings several advantages that ease up
the development process. Working prototypes that simplify client relationship and serve as the
base of model tests can be easily made from models describing the system. These systems
make possible for the banks clients to make their desired actions from anywhere. The user has
the possibility of accessing information or making transactions.

Keywords: MDA, UML, Online Banking, Class diagram, Platform Independent Model
JEL Classification codes: C88, M15

                      TOOLS USED IN DECISION MAKING
Demian Horia, Perez Bernabeu Elena, Abrudan Maria Madela

Decision making is one of the important tasks of every manager. The process of taking
decisions has to be based on knowledge. For optimizing this process some software solutions
has been created. In this article we tried to summarize some of the features which exists in
some software applications.

Keywords: decision making, risk solver
JEL Classification codes: M21

 MODELS AND SOLUTIONS FOR THE IMPLEMENTATION OF DISTRIBUTED
                                    SYSTEMS
Ghencea Adrian, Vătuiu Teodora, Țarcă Naiana

Software applications may have different degrees of complexity depending on the problems
they try to solve and can integrate very complex elements that bring together functionality that
sometimes are competing or conflicting. We can take for example a mobile communications
system. Functionalities of such a system are difficult to understand, and they add to the non-
functional requirements such as the use in practice, performance, cost, durability and security.
The transition from local computer networks to cover large networks that allow millions of
machines around the world at speeds exceeding one gigabit per second allowed universal
access to data and design of applications that require simultaneous use of computing power of
several interconnected systems. The result of these technologies has enabled the evolution
from centralized to distributed systems that connect a large number of computers. To enable
the exploitation of the advantages of distributed systems one had developed software and
communications tools that have enabled the implementation of distributed processing of
complex solutions. The objective of this document is to present all the hardware, software and
communication tools, closely related to the possibility of their application in integrated social
and economic level as a result of globalization and the evolution of e-society. These
objectives and national priorities are based on current needs and realities of Romanian society,

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while being consistent with the requirements of Romania‟s European orientation towards the
knowledge society, strengthening the information society, the target goal representing the
accomplishment of e-Romania, with its strategic e-government component. Achieving this
objective repositions Romania and gives an advantage for sustainable growth, positive
international image, rapid convergence in Europe, inclusion and strengthening areas of high
competence, in line with Europe 2020, launched by the European Council in June 2010.

Keywords: information society, databases, distributed systems, e-society, implementation of
distributed systems
JEL Classification codes: O33, M15, L86

                 IT&C AND THE PERSONAL DEVELOPMENT
Mareş Marius Daniel, Mareş Valerica

In this paper I explore the phenomenon of personal development in an „unconventional” way.
The contribution of this paper is to use a different method (i.e. in –depth interviews) to focus
on a different unit of analysis (i.e. managerial couples) in a different context. In addition the
information and communication technologies (IT&C) are entering all the fields: business,
state institutions, education and the day-by-day life. This paper contributes to the field by
suggesting a different theoretical approach to personal development conflict as a decision-
making problem. I propose using social exchange theory to explain personal development
conflict as a complex evaluation of cost and benefits of exchanges between multiple actors on
the basis of personal values and beliefs. The critical thinking is one of the most popular
learning objects in the English speaking countries and they are also offering most of hopes to
distance learning and also the critical thinking is a reflective one. This paper suggests that the
field may be overlooking some fundamental variables. Content analysis of the interview
transcripts reveals the crucial importance of implicit values and benefits, immanent or tacit
actions such as decision-making and learning and communication and mutual understanding.
Communication and personal development is essential in this respect. It‟s difficult to separate
work, family and personal development and communication is fundamental in all directions.
To conceptualize personal development conflict as a decision-making problem while taking
into account exchanges and interactions between multiple actors and we can draw on equity
theory or social exchange theory.
Future research should test whether decision making is central for the understanding of
personal conflict only in managers or in other collectives as well. I recommend the couple as
the best unit of analysis to address issues such as accommodation within couples and complex
decision- making in both individuals and couples. Future research should draw on boarder and
different samples to replicate our study and check the generalizability of its findings - because
if it can be generalized it may have strong implication for theoretical development.

Keywords: e-learning, critical thinking, IT training
JEL Classification codes: M15, O17




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                    RESPONSIBILITY FOR ETHICS IN IT&C
Mareş Valerica, Mareş Marius Daniel

In this article the authors aim to create a presentation of the triangle morals-ethics-
responsibility with an accent on the current globalized society. Business ethics has to
disseminate in all the corners of a company, and first of all it has to be understood.
Understanding the moral criteria of behaviour in business is important because the new
Organizational structures create new complications, related to information flow and
information administration inside various workgroups and in the entire organization, for
which there are no traditional precedents.

Keywords: business ethics, corporatist social responsibility, ethical investments, green
energies
JEL Classification codes: M15, O17

    THE USE OF EXPERT SYSTEMS IN RURAL TOURISM IN MARAMURES
Moisuc Diana-Aderina, Simion Simona-Alina, Şteliac Nela

The existing accommodation in the rural Maramureș region is essential for the development
of tourism. Most accommodation units are within the typology of rural tourist hostels,
therefore special attention should be paid to promote and diversify their touristic offers.
Despite its attractive potential, the rural tourism in Maramureș has its weaknesses because
there is no organizational strategy for its deployment. Tour operators must adopt new
solutions to promote tourist services, one of which may be using expert systems.The main
purpose of this study is to develop a model of an expert system, applying new methodological
approaches to the evaluation and ranking of countryside hostels in Maramureș. This model
can be easily implemented with private and public entities and could be a source of significant
benefits for them.
Scientific literature in the field highlights the benefits of using expert systems in all business
sectors and reinforces our conviction that they can be applied extensively in tourism as well.
The research methodology included: defining the nature and scope of the problem, identifying
experts, acquiring knowledge, selecting the system building tools, as well as encoding and
evaluating the system. In the knowledge acquisition phase we used interviews, thus obtaining
a database with information on countryside hostels in Maramureș. We turned to tourism
professionals to establish expert rules in a way that reflects as accurately and completely as
possible the context. These rules led to the encoding of the system. In order to encode them,
we used the Corvid system, developed by Exsys, which was verified and validated.
The system, once designed, provides a user-friendly interface. After being implemented in
specialized sites, the system will be able to facilitate searching and finding information by
users.
We propose that the model obtained will be a starting point for further research, given that the
development environment allows the system to be constantly updated. Using the system will
enrich the knowledge database by storing user requirements, and the results thus obtained can
be used for statistical calculations useful in determining future development strategies.The
implementation of the proposed model in websites, through the assistance it provides, can
attract customers both from our country and from the top tourism consumer countries of the
European Union and around the world.
Keywords: Expert System, Exsys, Corvid, rural holiday hostels, Maramureș
JEL Classification codes: C80, C88, L83

                                               201
   THE USE OF COMPUTER APPLICATIONS IN THE STUDY OF ROMANIA’S
                                  PUBLIC DEBT
Vătuiu Teodora, Popeangă Vasile Nicolae, Popeangă Vasile, Țarcă Naiana

Total public debt represents all monetary obligations of the state (government, public
institutions, financial, administrative-territorial units) at a time, resulting from internal and
external loans (in lei and foreign currencies) contracted on short, medium and long term, and
the state treasury and its own obligations for the amounts advanced temporarily to cover the
budget deficit. Loans may be contracted by the state through the Ministry of Finance, in his
own name or guaranteed by it. Public debt is expressed in local currency or foreign currency,
depending on where the contracts and loan conditions. In order to evaluate Romania's public
debt, obligations denominated in another currency than the national currency is calculated
using the exchange rate of National Bank of Romania. Also, total public debt of a country can
be expressed in absolute values (to know the load on that country's economy which is subject
to its creditors), the relative values as a percentage of GDP (to allow comparison over time
and between countries) and the average size per capita (to allow comparisons and analysis in
time and space). Total public debt is calculated and separately manages its two forms, namely
domestic public debt and external public debt. Ministry of Finance shall prepare and submit
annually to the Government for approval and to Parliament for information, report on public
debt, which contains information on government debt portfolio, debt service, public
indebtedness indicators and information about primary and secondary market securities state
and how to implement the medium-term strategy in managing government debt for the
previous year. In order to make comparisons quick and effective on public debt dynamics in
Romania, Excel 2010 has new features such as charts and sparkline slicers‟ features which can
help discover trends and statistics in accordance with existing data. The aim of this article is
accurate assessment of Romania's public debt and its evolution in the economic crisis in
recent years, using computer applications. As a novelty, it is proposed to use charts sparkline
(Small diagrams that fit in a cell) to visually summarize data trends in a small space, but in a
visual form meaningful and understandable.

Keywords: report on public debt, public debt dynamics, computer applications, professional-
looking diagrams, sparkline charts
JEL Classification codes: H63, L86




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