Analysis of the Factors of Urban Evolution in the Economic and Social Development of Romania

Certain market forces play a decisive role in stimulating urban development and growth: economies of scale and agglomeration; factor mobility and migration; and transport and specialization costs. There is a fundamental, common idea for all decision-makers who are trying to promote solid and sustainable growth: cities are not state constructions but the result of dynamic markets. In this sense, the most effective policies do not seek to change the existing economic structure of cities, but to support, allowing local economies to do what they know best and to take advantage of the savings generated by agglomerations. Indeed, the data suggest that as economies face the transition from agriculture to industry and subsequently to service-based services, the concept of density, distance and division is of greater importance in supporting economic growth. It should not be deduced from this that governments have no role in urban planning and management. On the contrary, planners and decision-makers have a leverage to support development by understanding market forces by accepting them and accelerating their impact. However, in many cases, policies are designed to actively oppose market dynamics and overturn; such attempts are usually doomed to failure and generate a huge waste of resources. Classification-JEL: F63, J08, O18.