Once regional funds have been estimated, it is necessary to hypothesise how expenditure will be
distributed among sectors.
The first step was to distribute national funds among sectors. Towards this aim, a criterion
proposed by Vincze (2004) was applied. This criterion treats rural development policies and cohesion
funds in the same way but distinguishes those policies from structural funds. With regard to rural
development policies and cohesion funds, sector distribution of funds is essentially founded on both
past experience in pre-accession instruments (such as SAPARD and ISPA) and local knowledge. With
reference to structural funds, distribution is made using a methodology suggested in Morillas et al.
(2000), readapted to the specific characteristics and needs of Romania. Funds are first redistributed
into 8 axes on the basis of Romanian national priorities and measures: 45% to Infrastructure, 15% to
Education and Research, 15% to Aids to primary sector enterprises, 5% to office-supply material
computer equipment and precision equipment, 5% to other industrial equipment, 5% to construction,
5% to studies, advice and communication, 5% to aids to enterprises (except for primary sector). Then,
vectors of fixed percentages, each one corresponding to a different axis, are applied to funds assigned
to each axis to estimate distribution among sectors.
The second step was to allocate national sector funds to regional sectors. For every sector,
regional funds were estimated applying regional and national output ratio to national sector funds.
However, in so doing, it happened that the sum of regional funds over all sectors of each region did
not correspond to the overall amount of funds allocated to the region on the basis of the development
index. Therefore, sector funds were reconciled by constraining the matrix of regional and sector funds
to the vector of national sector funds (row vector) and to the vector of overall amount of regional
funds allocated (column vector) using a RAS-type technique. Tab. 6 shows actual allocation of funds
among regions and sectors.
Table 6. Financial Allocation to regions by sector, Romania, 2007-09 (million euro; 2000 prices).
|
Sector |
NER |
SER |
SR |
SWR |
WR |
NWR |
CR |
BR |
Romania |
|
Agriculture |
190 |
98 |
143 |
101 |
72 |
87 |
69 |
3 |
763 |
|
Mining |
35 |
21 |
43 |
45 |
26 |
24 |
18 |
4 |
217 |
|
Manufacturing |
492 |
292 |
374 |
214 |
116 |
251 |
283 |
94 |
2,116 |
|
Energy, gas and water |
104 |
69 |
73 |
87 |
32 |
45 |
45 |
22 |
477 |
|
Construction |
178 |
146 |
142 |
117 |
89 |
97 |
90 |
54 |
913 |
|
Trade |
53 |
36 |
35 |
22 |
23 |
28 |
28 |
25 |
249 |
|
Hotels and restaurants |
36 |
32 |
27 |
26 |
24 |
24 |
23 |
12 |
204 |
|
Transports |
213 |
148 |
181 |
119 |
121 |
146 |
112 |
54 |
1,094 |
|
Communication |
106 |
69 |
74 |
50 |
54 |
66 |
56 |
80 |
555 |
|
Finance, banking and insurance |
6 |
4 |
5 |
5 |
3 |
4 |
3 |
4 |
32 |
|
Real estate and other services |
43 |
34 |
36 |
22 |
30 |
33 |
22 |
17 |
237 |
|
Public administration |
61 |
30 |
44 |
28 |
20 |
28 |
22 |
7 |
241 |
|
Other services |
143 |
65 |
90 |
70 |
52 |
82 |
58 |
24 |
584 |
|
TOTAL |
1,659 |
1,045 |
1,268 |
907 |
661 |
914 |
830 |
399 |
7,683 |
Source: Author’s elaboration
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