DECISIONS AND INFLUENCES – THE PREMISES OF RESTRICTIVE ECONOMIC AND BANKING POLICIES IN THE CURRENT ECONOMIC AND SOCIAL CONTEXT

Year 2023, , 144 - 148, 01.02.2023

Mircea Mihaiela Joly Schiop Roxana-dalıana

https://doi.org/10.17261/Pressacademia.2023.1679

Abstract

Purpose- This scientific approach aims to review the decisions taken by the European Union regarding the sanctions applied to Russia and analyze the impact they have in the economies of the European Union countries and on companies in Romania in particular. The regional development policy, which has as its main objective the achievement of an inter- and intra-regional distribution within the activities and their results as efficient and equitable as possible, is one of the most important and complex policies of the European Union. The steps taken so far, regarding the removal of the economies of the European states from the economic crisis they are in, have the role of helping the various sectors of activity to overcome the difficulties they are going through and to relaunch the areas of activity that are at a standstill due to the restrictions in regarding the export and import of raw materials, materials and goods. Thus, the study wants to highlight the needs that the European economies and implicitly the sectors of the Romanian economy have at this moment.
Methodology- In this study, the research methodology was carried out using the random effects model, analyzing the data series from the panel. The descriptive analysis provided an assessment of the main characteristics of the data series: average, standard deviation, minimum and maximum values. The generated results highlight a good distribution of resources, thus determining a better financial performance, measured by the composite index, ROA, ROE and EPS. The practical implications are relevant for the proper functioning of the entire economic system of societies and for the continuity of the activity itself.
Findings- From an econometric point of view, economic variables have been studied in terms of the influences they have exerted on other economic variables and the influences that other variables have exerted on them. The links that were identified between the variables were established both in terms of causality and by the intensity established between them. In addition to the specific stages of the regression analysis, it was also important to determine the intensity of the connection between the variables included in the econometric model. Thus, the determination of the intensity of the connection is the object of the analysis.
Conclusion- The research is intended to be an X-ray of the existing situation in the economy of the European Union and Romania, Therefore, it becomes a useful tool for the Romanian business environment in terms of short-term adaptation to current market conditions and long-term decision making.

Keywords

Economic indicators, instability, crisis, sanctions and restrictions, economic policies

References

• Arellano, M. (2003) Panel data econometrics, Oxford University Press, Oxford.
• Baltagi, B. H., Song, S. H., Koh, W. (2003) Testing panel data regression models with spatial error correlation. Journal of Econometrics, 117(1), 123-150.
• Baltagi, B. H. (2005) Econometric analysis of panel data, 2nd ed., Chichester, Wiley.
• Bond, S. R. (2002) Dynamic panel data models: a guide to micro data methods and practice. Portuguese Economic Journal, 1(2), 141-162.
• Braşoveanu, I.V., Obreja Braşoveanu, L., 2008 (a), “Correlations between fiscal policy and macroeconomic indicators in Romania”, Theoretical and Applied Economics, serie nouă, număr special dedicat conferinţei internaţionale a Facultăţii de Finanţe, Asigurări, Bănci şi Burse de Valori.
• Brueckner, J.K. (2003) Strategic interaction among local governments: an overview of empirical studies. International Regional Science Review, 26(2), 175-188.
• Bruno, G. S. (2005) Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models. Economics Letters, 87(3), 361-366.
• Campbell, J. Y., Lo, A. W. & MacKinlay, A. C. (1997) The econometrics of financial markets, NJ. Princeton University Press, Princeto.
• Elsayed, K și Paton, D., ( 2005). The impact of environmental performance on firm performance:static and dynamic panel data evidence. Structural Change and Economic Dynamics, 16(3), 395–412.
• https://www.refinitiv.com/content/dam/marketing/en_us/documents/methodology/refinitiv-esg-scores-methodology.pdf
• https://www.refinitiv.com/en/learning-centre/learning-catalogue?q=&lc_language=English&facet=Refinitiv%20Eikon&page=1
• https://ec.europa.eu/
• Iwata, H. și Okada, K., (2010). How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms. In possession of MPRA, no. 27721.
• Klassen, R. D. și McLaughlin, C. P. (1996). The ımpact of environmental management on firm performance. Management Science, 42(8), 1199–1214.
• Moon, J. J. (2007). In good companies? a critical evaluation of the corporate social performance - Corporate Financial Performance Link.
• Onofrei, M. (2007). Management financiar, Ed. C.H.Beck, Bucureşti.
• Organizaţiei pentru Cooperarea şi Dezvoltarea Economică (OCDE, 2004), “OECD principles of corporate governance‘, Accessed on 01 noiembrie 2022.
• Nerlove, M. (2002). Essays in panel data econometrics, Cambridge University Press, Cambridge.
• Porter, M. E. (1996). What is strategy? Harvard Business Review, 74(6), 61–78.
• Rainey D. (2006). Sustainable business development. Cambridge University Press, New York.
• Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data. MITPress, Cambridge, Massachusetts London, England.
• World Commission on Environment and Development, W (ed.) (1987, Our Common Future,Oxford University Press, Oxford.
• Zaharia, C., Tudorescu, N., & Aharia, I. (2010). How bad governance practices inflicted systemic risks on the global economy. Economics, Management and Financial Markets, 5(1), 23-31.