IDEAS home Printed from https://ideas.repec.org/a/rjr/romjef/v4y2007i1p57-64.html
   My bibliography  Save this article

Unit Labor Cost In Romania

Author

Listed:
  • Ghizdeanu, Ion

    (National Commission of Prognosis, Bucharest)

  • Tudorescu, Veronica

    (National Commission of Prognosis)

Abstract

The paper is meant to lead the way in the field of economic analysis in Romania, trying to evaluate by data the capacity of the Romanian economy to face the competition pressures from the Single European Market. Within the paper, the unit labor cost is approached as an indicator reflecting especially the competitiveness rather than measuring it. The methodological and calculation issues differentiate between the unit labor cost in nominal and real terms, emphasizing the conclusion that exceeding the compensation per employee (including the employer's social contribution) beyond labor productivity, in real terms leads to an increase in the unit labor cost and, finally, to a loss of competitiveness. In addition, the paper includes the forecast of the unit labor cost in Romania, which has been developed for the first time since 2005. Subsequently, the estimates have been updated for each stage of forecasting. In this way, having in view the expected trends for the indicators involved in the estimate, the final conclusion of the paper is to maintain competitiveness and the current account within sustainable limits, despite the disinflation process under way. The finding is all the more eloquent, as the EC autumn forecast underlines this issue.

Suggested Citation

  • Ghizdeanu, Ion & Tudorescu, Veronica, 2007. "Unit Labor Cost In Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(1), pages 57-64, March.
    • Handle: RePEc:rjr:romjef:v:4:y:2007:i:1:p:57-64
    as

    Download full text from publisher

    File URL: http://www.ipe.ro/rjef/rjef1_07/rjef1_07_4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dobrescu, Emilian, 2002. "Macromodel Estimation for the Romanian "Pre-Accession Economic Programme"," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(5), pages 5-38, December.
    2. Ark, Bart van & Stuivenwold, Edwin & Ypma, Gerard, 2005. "Unit labour costs, productivity and international competitiveness," GGDC Research Memorandum 200580, Groningen Growth and Development Centre, University of Groningen.
    3. Nicolas Carnot & Vincent Koen & Bruno Tissot, 2005. "Economic Forecasting," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-00581-5.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nae Tatiana-Roxana, 2009. "Competitiveness And Unit Labour Costs In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(1), pages 444-450, May.

    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. Bespalova, Olga, 2018. "Forecast Evaluation in Macroeconomics and International Finance. Ph.D. thesis, George Washington University, Washington, DC, USA," MPRA Paper 117706, University Library of Munich, Germany.
    2. Martina Novotná & Tomáš Volek, 2013. "The Development of Real Unit Labour Costs in the Context of Cyclical Fluctuations in the Economy," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 16(1), pages 101-109.
    3. Dobrescu, Emilian, 2004. "Economia Romaniei in perioada 2003-2010: Estimari de macromodel [Romanian economy during 2003-2010: Macromodel estimations]," MPRA Paper 35768, University Library of Munich, Germany.
    4. Comanescu , Anton, 2012. "Central Bank Transparency and Monetary Policy Effectiveness," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 6(4), pages 61-88, July.
    5. Charles-Henri Dimaria & Chiara Peroni, 2012. "Unit labor cost and productivity recovery under non neutral technical change," Working Papers halshs-00826351, HAL.
    6. Charles-Henri DI MARIA & Chiara PERONI, 2012. "A new unit labour cost changes decomposition Four pillars of cost competitiveness recovery," LEO Working Papers / DR LEO 179, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    7. repec:dgr:rugggd:200796 is not listed on IDEAS
    8. Ackon, Kwabena Meneabe, 2020. "Fiscal Policy Innovations In Advanced Economies," MPRA Paper 100737, University Library of Munich, Germany.
    9. Emilian Dobrescu, 2006. "Integration of Macroeconomic Behavioural Relationships and the Input-output Block (Romanian Modelling Experience)," EcoMod2006 272100018, EcoMod.
    10. Brunner, Hans-Peter & Cali, Massimiliano, 2006. "The dynamics of manufacturing competitiveness in South Asia: An analysis through export data," Journal of Asian Economics, Elsevier, vol. 17(4), pages 557-582, October.
    11. Christian Gayer & Alessandro Girardi & Andreas Reuter, 2016. "Replacing Judgment by Statistics: Constructing Consumer Confidence Indicators on the basis of Data-driven Techniques. The Case of the Euro Area," Working Papers LuissLab 16125, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    12. ALBU Lucian-Liviu, 2011. "Changes In Economy Or Changes In Economics?," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 55(2), pages 28-31.
    13. Goce Petreski & Olivera Kostoska, 2009. "Modeling the determinants of exports and imports: assessment of the Macedonian competitive performances," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 36-58, November.
    14. Knetsch, Thomas A., 2010. "Trend and cycle features in German residential investment before and after reunification," Discussion Paper Series 1: Economic Studies 2010,10, Deutsche Bundesbank.
    15. Sebastian Nielen & Alexander Schiersch, 2014. "Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(3), pages 365-393, July.
    16. Charles-Henri DI MARIA, 2012. "Cannon was right but Incomplete: Frankel was a Neglected Early Contribution to Growth Theory," LEO Working Papers / DR LEO 291, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    17. Igor LEBRUN, 2009. "S3BE: A small supply-side model for the Belgian economy," EcoMod2009 21500057, EcoMod.
    18. Kang, Lili & Fei, Peng, 2013. "Cost Competitiveness Comparisons and Convergence in China," National Institute Economic Review, National Institute of Economic and Social Research, vol. 223, pages 49-60, February.
    19. Albu, Lucian Liviu, 2006. "Trends in the Interest Rate - Investment - GDP Growth Relationship," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 3(3), pages 5-13, September.
    20. Albu, Lucian Liviu & Gorun, Adrian, 2010. "Examples of New Macroeconomic Modelling and Simulation Techniques: How They Could Improve Decisions and Public Perception," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(5), pages 7-16.
    21. Gabor Bekes & Balazs Murakozy & Zsuzsa Munkacsi & Gabor Oblath, 2013. "Unit Values, Unit Labor Costs and Trade Performance in Four Central European Countries," CERS-IE WORKING PAPERS 1329, Institute of Economics, Centre for Economic and Regional Studies.

    More about this item

    Keywords

    labor productivity; compensation of employees; employment; GDP; unit labor cost;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

    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:rjr:romjef:v:4:y:2007:i:1:p:57-64. 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: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/ipacaro.html .

    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.