EIRP Proceedings, Vol 7 (2012)

Abstract

Economic growth and development are undoubtedly the major objectives of every nation. From the large variety of determinant factors, institutional economy emphasizes the role of institutional efficiency in achieving such performances. In Romania, the binomial relationship between effective institutions and development tend to be a utopia, taking into consideration that responsible for poor economic performances is precisely the institutional inefficiency. There is a path dependency, which clearly explains the current stage of development, given the poisonous influence of ex-soviet regime. Hereditary mark of the past inhibits any chance of progress, inclusively in the context of EU membership, which certifies Romanian formal integration at the transnational European level. The purpose of this paper is to offer an overview of Romanian economic dynamics through the quality of institutional framework, and furthermore, to highlight the necessary measures for redressing the inland economic conditions.