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January 21, 2026Studies in Business and Economics0 citationsOpen Access

Two-Speed Romania: An Analysis of Regional Competitiveness Patterns

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GTGeorge TudoseIRIoana Alexandra RADUAHAlexandra Horobet

Key Points

  • The research aims to analyze regional competitiveness in Romania using the EU Regional Competitiveness Index.
  • Examined NUTS 2 regions in Romania from 2016 to 2022
  • Utilized the EU Regional Competitiveness Index (RCI) 2.0 for benchmarking
  • Employed a K-means clustering algorithm to identify competitiveness patterns
  • București-Ilfov reached efficiency levels comparable to Western Europe, but still faces structural imbalances
  • Other Romanian regions are in a low-competitiveness cluster with high volatility
  • Main barriers to competitiveness are linked to education and physical connectivity, not market size

Abstract

Abstract This study examines the regional competitiveness of Romanian NUTS 2 regions from 2016 to 2022, employing the EU Regional Competitiveness Index (RCI) 2.0. The research identifies a polarized “two-speed” developmental model by benchmarking these regions against relevant EU peers and utilizing a K-means clustering algorithm. The findings indicate that although the capital, București-Ilfov, has reached “Efficiency” levels similar to those of Western European regions, it continues to show structural imbalances caused by weaknesses in institutions and infrastructure. The other seven development regions of Romania are situated within a low-competitiveness cluster, which shows considerable volatility and reduced resilience relative to their Central European peers. The findings reveal that the primary barrier to convergence is not market size, but major obstacles in fundamental areas such as education and physical connectivity. The study concludes that existing “one-size-fits-all” cohesion policies are inadequate, recommending a distinctive strategy that emphasizes absorptive capacity for underdeveloped regions and enhancements in quality of life for the capital region.

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Cite This Study

Tudose et al. (2025) studied this question.

synapsesocial.com/papers/69706ce9b6488063ad5c1a9ahttps://doi.org/10.2478/sbe-2025-0056
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