Economic Resilience and Sustainable Finance Path to Development and Convergence in Romanian Counties

Abstract

Economic resilience and sustainable finance are two interlinked and crucial issues for development and convergence in Romania’s counties increasing cohesion. These issues can contribute to sustainable and balanced growth of local and regional economies and to the reduction of inequalities in regional development. Economic resilience in counties refers to their capacity to adapt and survive in the face of unforeseen economic shocks or challenges, and sustainable finance refers to ensuring responsible management of financial resources to support long-term development and protect the environment. Identifying and understanding the significant variations in economic resilience and sustainable financing between counties is essential for the formulation of regional development policies and strategies. These variations provide valuable information about the vulnerabilities and opportunities of individual counties and guide resource allocation and investment decisions. The research provides new data and relevant information on the significant variations among counties in economic resilience and sustainable financing, using a Markov transition probability matrix and exploratory–visual method. This study on Romanian counties aims to provide valuable information for the formulation of public policies to support balanced economic development across the country. The results showed that economic diversification is essential to increase the resilience of the economy to shocks and fluctuations. Counties that have a diversified economic structure, with multiple sources of income and economic activities, are less vulnerable to the negative impact of economic or natural events. Governance and political stability are key factors in creating a favorable environment for investment and economic development. Well-managed government policies can help maintain macroeconomic stability and increase the resilience of the economy to external fluctuations.

Digital Revolution, Sustainability, and Government Revenues: A Transversal Analysis of How Digital Transformation and Sustainable Practices Impact Sustainable Government Revenues

“…There is a substantial body of literature supporting the theory that digitization and sustainable practices have a significant impact on government revenues [55][56][57]. This theory is grounded in research from various fields and empirical evidence that demonstrates how the interaction between digitization and sustainability can positively or negatively influence government revenues in various contexts [8,11,12,23,24,[55][56][57]. The three hypotheses proposed in this study focus on the relationships between digital transformation, measured by the DESI index, sustainability measured by the SDG index, and government revenues evaluated using the Eurostat TGGR indicator.…”

“…The abrupt shift to remote work, online education, telehealth, and ecommerce underscored the critical role of digital technologies in maintaining economic and social continuity during crises. A growing body of literature elucidates how the pandemic has expedited digitalization in both the public and private sectors [7][8][9][10].…”

“…COVID-19 has forcefully underscored the vital role of digitalization in addressing the socio-economic and governmental challenges posed by the crisis. Lockdowns, remote work, online commerce, telemedicine, and digital education, among others, have accentuated the pivotal role of digital technologies [7][8][9][10]. Governments across the EU have been compelled to expedite the implementation of digital solutions to adapt to rapidly changing circumstances, reinforcing the importance of the digital transformation aspect in government practices [51][52][53][54][55][56][57].…”

Measurement and Influencing Factors of Economic Resilience over a Long Duration of COVID-19: A Case Study of the Yangtze River Delta, China

“…Economic structure [15][16][17], industrial diversity [5,[18][19][20][21], and technological innovation are often considered key factors in regional economic resilience [22][23][24][25]. Some scholars have also discussed financial factors [26,27], economic openness [28,29], government policies, and others [30,31]. There is some consensus that diversified industrial structure and higher innovation ability often have positive effects on economic resilience [5,18].…”

Sustainable Development in Gansu Province: Theil Index and Cluster Analysis

“…Furthermore, the sustainable development of the county economy also influences the formulation and execution of economic resilience and sustainable financial policies [36]. Economic development within and among regions should strive for common growth and diminish inequality [37,38]. At the same time, finances also affect the development of the county and enhance competitiveness.…”