EXTERNAL COMPETITIVENESS OF THE ROMANIAN ECONOMY: STRUCTURAL CHALLENGES AND PROSPECTS FOR RECOVERY

Abstract

External competitiveness has become a critical indicator for assessing Romania's economic performance in international markets, given the pressures imposed by globalization and European economic integration. Although exports, GDP growth and the attraction of foreign direct investment have increased in recent years, Romania's external competitiveness is affected by a number of persistent structural problems. The aim of this paper is to examine the main factors influencing the external competitiveness of the Romanian economy, focusing on structural imbalances in the real economy, weak performance in global value chains, current account deficit and vulnerability to external shocks. We also aim to conduct a critical analysis of competitiveness factors (unit labor costs, productivity, sectoral structure, innovation, infrastructure and human capital) and to identify possible solutions to strengthen Romania's external position. In terms of these, the priorities are as follows: improving economic governance, promoting innovation and applied research, reforms in education and labor force training, and strategic reorientation towards high value-added exports.