FACTORS AND MECHANISMS OF ECONOMIC GROWTH IN TRANSITION ECONOMIES OF DIFFERENT TYPES (CASE OF ROMANIA)
The paper analyzes the dynamics and structure of GDP in Romania during the transition period. Two simulation scenarios are proposed on the basis of a standard production function. The first simulation uses an augmented production function with FDI and exports, while the second simulation uses a standard Cobb Douglas production function. In order to realize the simulation, an estimation of the capital stock is proposed, underlining in these scenarios that foreign investments are expected to play a major role in the economic growth during the simulation period.
Key words: forecasting, production function, economic growth.
JEL Classification: C53, E23, E25, O4