IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxvy2012i2p33-46.html
   My bibliography  Save this article

Technical Progress as a Solution for Romania and Greece to Face the Global Crisis’ Problems and the Bad Forecasts

Author

Listed:
  • Romeo Ionescu

Abstract

The paper deals with the two Member States which were put down by the crisis: Greece and Romania. As a result, the analysis is focused on 2009-2012 time period, in order to explain the economic situation, to forecast it and to find another solution to face the crisis challenge. The first step was to analyse the possibility to define an economic model which to be able to quantify the support of the technical progress on the economic recovery. A distinct part of the paper is that regarding to the model’s equations and parameters which are used from qualified statistical surveys. The model consists of a specific production function which was defined in order to quantify the labour productivity and the fixed capital efficiency under the impact of the technical progress. This technical progress in the economy is quantified by the growth of the labour knowledge and the growth of fixed capital use degree. The economic analysis is focused on labour productivity and capital efficiency and tried to offer solutions in order to optimise the economic behaviour under crisis using the human capital stock of knowledge. The last part of the paper analyses the evolution of the fixed capital efficiency as a result of the labour knowledge growth and the evolution of the fixed capital efficiency supported by the new machines and equipments. The main conclusion of the paper is that the technical progress represents a chance for the economic recovery in Romania and Greece. Both countries have relative advantage in using their relative high skilled labour and paying lower wages caused by the crisis. But their ability to obtain benefits from these is still far away. The model used in the paper is able to offer a useful instrument of analysis in order to quantify the impact of the technical progress on the economic development. The whole analysis is based on official databases: Eurostat, IMF, World Bank and National Statistic Institutes.

Suggested Citation

  • Romeo Ionescu, 2012. "Technical Progress as a Solution for Romania and Greece to Face the Global Crisis’ Problems and the Bad Forecasts," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 33-46.
    • Handle: RePEc:ers:journl:v:xv:y:2012:i:2:p:33-46
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/papers/12_2_p3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stiglitz, Joseph E., 1997. "Georgescu-Roegen versus Solow/Stiglitz," Ecological Economics, Elsevier, vol. 22(3), pages 269-270, September.
    2. Avi J. Cohen, 2003. "Retrospectives: Whatever Happened to the Cambridge Capital Theory Controversies?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 199-214, Winter.
    3. S K Mishra, 2010. "A Brief History of Production Functions," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(4), pages 6-34, November.
    4. Joan Robinson, 1953. "The Production Function and the Theory of Capital," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 21(2), pages 81-106.
    5. Solow, Robert M., 1997. "Georgescu-Roegen versus Solow-Stiglitz," Ecological Economics, Elsevier, vol. 22(3), pages 267-268, September.
    6. Daly, Herman E., 1997. "Georgescu-Roegen versus Solow/Stiglitz," Ecological Economics, Elsevier, vol. 22(3), pages 261-266, September.
    7. Nicholas Georgescu-Roegen, 1972. "Process Analysis and the Neoclassical Theory of Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 279-294.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin de Wit & Matthew Kuperus Heun & Douglas J Crookes, 2013. "An overview of salient factors, relationships and values to support integrated energy-economic systems dynamic modelling," Working Papers 02/2013, Stellenbosch University, Department of Economics.
    2. Kronenberg, Tobias, 2010. "Finding common ground between ecological economics and post-Keynesian economics," Ecological Economics, Elsevier, vol. 69(7), pages 1488-1494, May.
    3. Krysiak, Frank C. & Krysiak, Daniela, 2003. "Production, consumption, and general equilibrium with physical constraints," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 513-538, November.
    4. Cameron Hepburn & Alex Bowen, 2013. "Prosperity with growth: economic growth, climate change and environmental limits," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 29, pages 617-638, Edward Elgar Publishing.
    5. Bozana Zekan & Ulrich Gunter, 2022. "Zooming into Airbnb listings of European cities: Further investigation of the sector’s competitiveness," Tourism Economics, , vol. 28(3), pages 772-794, May.
    6. Krysiak, Frank C., 2006. "Entropy, limits to growth, and the prospects for weak sustainability," Ecological Economics, Elsevier, vol. 58(1), pages 182-191, June.
    7. Kuosmanen, Natalia & Kuosmanen, Timo, 2013. "Modeling Cumulative Effects of Nutrient Surpluses in Agriculture: A Dynamic Approach to Material Balance Accounting," Ecological Economics, Elsevier, vol. 90(C), pages 159-167.
    8. Pirgmaier, Elke, 2017. "The Neoclassical Trojan Horse of Steady-State Economics," Ecological Economics, Elsevier, vol. 133(C), pages 52-61.
    9. Saunders, Harry D., 2014. "Toward a neoclassical theory of sustainable consumption: Eight golden age propositions," Ecological Economics, Elsevier, vol. 105(C), pages 220-232.
    10. Gonçalves, Jorge & Costa, Manuel Luís, 2022. "The political influence of ecological economics in the European Union applied to the cap-and-trade policy11This research did not receive any specific grant from funding agencies in the public, commerc," Ecological Economics, Elsevier, vol. 195(C).
    11. Fix, Blair, 2020. "How the Rich Are Different: Hierarchical Power as the Basis of Income Size and Class," SocArXiv t8muy_v1, Center for Open Science.
    12. Rodrigues, João & Domingos, Tiago & Conceição, Pedro & Belbute, José, 2005. "Constraints on dematerialisation and allocation of natural capital along a sustainable growth path," Ecological Economics, Elsevier, vol. 54(4), pages 382-396, September.
    13. Mazouch, P. & Krejčí, I., 2016. "The Analysis of the Age Structure of Regional Fixed Capital in the Agriculture," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(2), pages 1-13, June.
    14. H. Georg Schulze, 2010. "Ein Modell der Ekonomie als System von neuronalen Netzwerken - Ein Umriss [Connectionist Economics - An Outline]," Post-Print hal-01492977, HAL.
    15. Blair Fix, 2019. "The Aggregation Problem: Implications for Ecological and Biophysical Economics," Biophysical Economics and Resource Quality, Springer, vol. 4(1), pages 1-15, March.
    16. Roma, Antonio & Pirino, Davide, 2009. "The extraction of natural resources: The role of thermodynamic efficiency," Ecological Economics, Elsevier, vol. 68(10), pages 2594-2606, August.
    17. Bergquist, Ann-Kristin & Cole, Shawn A. & Ehrenfeld, John & King, Andrew A. & Schendler, Auden, 2019. "Understanding and Overcoming Roadblocks to Environmental Sustainability: Past Roads and Future Prospects," Business History Review, Cambridge University Press, vol. 93(1), pages 127-148, April.
    18. Sousa, Tania & Domingos, Tiago, 2006. "Is neoclassical microeconomics formally valid? An approach based on an analogy with equilibrium thermodynamics," Ecological Economics, Elsevier, vol. 58(1), pages 160-169, June.
    19. Couix, Quentin, 2020. "Georgescu-Roegen's Flow-Fund Theory of Production in Retrospect," Ecological Economics, Elsevier, vol. 176(C).
    20. Matthew K. Heun & João Santos & Paul E. Brockway & Randall Pruim & Tiago Domingos & Marco Sakai, 2017. "From Theory to Econometrics to Energy Policy: Cautionary Tales for Policymaking Using Aggregate Production Functions," Energies, MDPI, vol. 10(2), pages 1-44, February.

    More about this item

    Keywords

    Production Function; Labor Productivity; Fixed Capital Efficiency; Technical Progress; Romania; Greece;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xv:y:2012:i:2:p:33-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.