IT Industry and its Role in the Economic Development of Romania

Author:Dumitru Daniel Leon, Neculai Tabara
Pages:211-217
SUMMARY

The IT industry is currently one of the main engines of the Romanian economy, being undoubtedly the most attractive sector in terms of wages and other benefits. The Romanian IT industry is attractive to the world's major IT corporations due to the low cost of the workforce, and the high professional qualifications of employees, but also due to tax benefits offered by the Romanian state. It is... (see full summary)

 
FREE EXCERPT
ISSN: 2067 9211 Performance and Risks in the European Economy
211
IT Industry and its Role in the
Economic Development of Romania
Dumitru Daniel Leon1, Neculai Tabără2
Abstract: The IT industry is currently one of the main engines of the Romanian economy, being undoubtedly
the most attractive sector in terms of wages and other benefits. The Romanian IT industry is attractive to the
world's major IT corporations due to the low cost of the workforce, and the high professional qualifications of
employees, but also due to tax benefits offered by the Romanian state. It is very important that this sector of
activity is not only developing in our country but also in other countries of the world. This study aims at an
analysis of the IT industry in our country through which the author intends to better understand the factors
that have led to its development. To achieve this goal, we will conduct various analyzes of the financial
performance and position of enterprises in the IT industry, as well as the role in the development of the
Romanian economy. The usefulness of the current study becomes more important as we look at the possible
future measures that will lead to the development of this sector, but we will also try to present the risks that
are likely to occur.
Keywords: Turnover; Net profit; Development; IT industry
JEL Classification: A10; L25; L86; M41
1. Introduction
This study aims to analyze the main factors that have led to the growth of t his sector of activity to
determine, on the basis of the main indicators, the financial performance and the position of
enterprises in the IT industry. At the same time, we will determine what are the main opportunities for
developing this sector of activity but also what are the main threats that are worthy of note. For this
analysis, we took into account a sample of 65 companies, whose code of Classification of Activities in
the National Economy (CAEN) is 6201 Custom Software Execution Activities (Customer-oriented
Software) companies operating in all the historical regions of the country. The representative cities in
which most companies operate are Bucharest, Cluj, Iasi and Timisoara. The IT industry in Romania
has been the star of economic growth in recent years, currently accounting for about 5% of the Gross
Domestic Product, which shows that of the total of 190 billion dollars as Romania's GDP, close to 20
billion dollars are given by the IT industry.
1 PhD, Alexandru Ioan Cuza University of Iasi, Romania, Addres s: Blvd. Carol I, no. 22, Iasi, Romania, Tel.: +40232201102,
int. 2377, Fax: +40232217000 , Cor responding author:
2 Associate Professor, PhD, Alexandru Ioan Cuza University of Iasi, Romania, Address: Blvd. Carol I, no. 22, Iasi, Romania,
Tel.: +40232201102, int. 2377, Fax: +40232217000, E-mail:

To continue reading

REQUEST YOUR TRIAL