Capitalism and capitalists without capital in Romania (2022) - full text

 At this page we disseminate the scientific research conducted in the book Capitalism and capitalists without capital in Romania (Florin Georgescu, 2022), printed by the Publishing House of the Romanian Academy.

Capitalism and capitalists without capital in Romania

Volume 1 can be accessed  Here.



Chapter 1. Where did we start from and where are we now? 

1.1.Changes in the volume and breakdown of economic activity in Romania since 1990 

1.2.Negative foreign currency flows with the rest of the world depressed the Romanians’ gross national income (GNI) and fuelled the GDP distributed to nonresidents 

1.3.Pre- and post-1989 property breakdown in correlation with Romania’s total debt 

1.4.Worsening of the employees/pensioners ratio 

1.5.Weakening of labour factor – low employment and small share of compensation of employees in GDP 

1.6.Comparative analysis of the standard of living and sharply rising inequity among citizens starting 1990 

1.7.Concluding remarks 

Chapter 2. Real sector capital in Romania

2.1.Capital – the centrepiece of market economy

2.2.Very pronounced polarisation of real sector capital

2.3.The economic growth and the tax incentives granted to entrepreneurs between 2017 and 2019 failed to improve their faulty behaviour 

2.4.The firms’ low bankability 

2.5.Breakdown of the companies owned by Top 100 Romanian entrepreneurs

2.6.Romania’s stock exchange – weak activity and companies with vulnerabilities

2.7.Foreign direct investment – insufficient by volume and inefficiently structured

2.8.Concluding remarks 

Volume 2 can be accessed  Here.


Chapter 3. The correlation between Romanian financing  pattern of firms and fixed capital formation in the  real sector

3.1. Firms’ financing structure and the level of production

3.2.Economy-wide capital stock and the current state of
firms’ financing in Romania

3.3. Analysis of the correlation between the firms’ economic performance, investment rate and indebtedness

3.4. Hidden economy and its impact on capital formation

3.5. Concluding remarks


Chapter 4 . Fiscal and income incentives trigger imbalances in a partly functional market economy

4.1. Supply-side and demand-side theories supportive of growth and employment

4.2. Fiscal policy decisions implemented in the period 2013-2019

4.3. Decisions on wage and pension policies

4.4. Effects of tax incentives targeting entrepreneurs on their firms’ activity

4.5. Concluding remarks


Chapter 5. Weak redistribution dampens economic growth and causes strong social tensions

5.1. Functions of public finance

5.2. The redistribution function of public finance

5.3. Progressive taxation and redistribution

5.4. Quantifying the action of the redistribution function

5.5. Redistribution function in Romania. Comparative analysis with other European countries

5.6. Concluding remarks


Chapter 6 . The theory of forms without substance. Romania – country project

6.1. The theory of forms without substance

6.2. Psychology of the Romanian people

6.3. Romania’s country project