Economic Growth and Firm Size Dynamics: Evidence from Romania’s Development Regions

Daniel Badulescu; Alina Badulescu; Ramona Simut; Dragos Dianu

doi:10.18096/TMP.2024.02.05

Authors

Daniel Badulescu University of Oradea https://orcid.org/0000-0001-8653-0149
Alina Badulescu University of Oradea, Department of Economics and Business https://orcid.org/0000-0002-0090-9340
Ramona Simut University of Oradea, Department of Economics and Business https://orcid.org/0000-0003-1673-3586
Dragos Dianu University of Oradea

DOI:

https://doi.org/10.18096/TMP.2024.02.05

Keywords:

economic growth, firms’ size class, GDP, Romanian regions

Abstract

The relationship between firms and economic growth is an intensely debated topic in the literature, emphasizing the impact of the large businesses or small and medium-sized enterprises (SMEs) in ensuring growth, innovation and employment, the role of support measures or social benefits. Although the importance of each category in growth and development is far from a consensus, there is a tacit recognition that each size-class of firms has a series of specific characteristics that can better influence certain aspects of development. A better knowing of them could help adapting and calibrating measures and policies according to specific objectives, stages or geographical areas. In this paper, we propose an econometric approach to the relationship between economic growth (by GDP evolution) and the dynamics of the firms’ sector, by size class, at the level of the development regions of Romania. We found that the effect of the number of enterprises in each size class similarly influences the GDP, regardless of the region, with a more pronounced positively impact in the case of micro- and small enterprises and ambiguous in the case of medium-sized enterprises.

Author Biographies

Daniel Badulescu, University of Oradea

Department of Economics and Business, Oradea, Universitatii st 1, Romania

Alina Badulescu, University of Oradea, Department of Economics and Business

Alina Badulescu is Professor of Economics and doctoral supervisor at the Faculty of Economics and Doctoral School in Economics within the University of Oradea, Romania.
She graduated Bucharest University of Economic Studies and she has authored and co-authored numerous journal articles and books in the area of Tourism, Entrepreneurship,Microeconomics.

Ramona Simut, University of Oradea, Department of Economics and Business

Ramona Simut is Associate Professor at Faculty of Economic Sciences, University of Oradea. She graduated the same University, and her research interest area includes Entrepreneurship, Business Development and Economic Modelling.

Dragos Dianu, University of Oradea

Dragos Dianu graduated from the Bucharest University of Economic Studies and holds a PhD in Economics from the University of Oradea. His doctoral research is focused on entrepreneurship and
regional development.

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