The Impact of Economic Crisis on Regional Disparities in Romania. Testing Williamson’s Hypothesis in the Context of Economic and Financial Turmoil

• Main Author: IONUȚ BUȘEGA
• Format: Article
• Language: English
• Published: Cluj University Press 2016-06-01
• Series: Romanian Review of Regional Studies
• Subjects: intra and interregional disparities; beta and sigma convergence; Williamson hypothesis; economic crisis
• Online Access: http://rrrs.reviste.ubbcluj.ro/arhive/Artpdf/v12n12016/RRRS12120162.pdf

The economic downturn triggered by the economic crisis was installed in Romania in 2008, stopping the economic growth process. However, the impact of the financial turbulence presented asymmetrical effects on regional level, both in terms of GDP per capita and in terms of employment rate. The aim of present article is to analyze how regional economies reacted in this context and to assess the impact of the crisis on intra-regional disparities in Romania. From the methodological point of view, the research involves using panel data analysis tools that can provide evidence amongst the degree to which the crisis has induced a process of economic convergence between regions or increased regional disparities, according to Williamson’s hypothesis.