From command to market-driven economy: the changing role of manufacturing industries in Romania

Abstract

In 1990, Romania and other CEE countries embarked on a political shift that prompted radical structural and spatial changes in economic activities. Industrial restructuring holds a central role in strengthening both EU convergence and internal socioeconomic divergence. The aim of this paper is to discuss the contribution of manufacturing to national wealth creation, the attractiveness of industries to foreign direct investments, and the evolutionary trajectories of manufacturing employment and firms in conjunction with the pathways taken at the level of the national economy. To attain this aim, we analyse in detail the period between 2002 and 2019, looking at the temporal dynamics of the industry in times of growth and crisis. The changes discussed are typical of economic restructuring, with regions and urban centres experiencing a dramatic change in their economic roles and functions and increasing inequalities between metropolitan and non-core regions.