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Academic Research paper and Study of the Economy of Romania and Romanian Business

In Romania, the first year after revolution started – like in most other Central and Eastern European Countries – directly with a sharp decline in output (Figure 3.1, chapter, which was not just due to a correction of sugarcoated statistics during the communist era (as sometimes argued, e.g. partly by Maniu et. al. 2002: 77) but real (as demonstrated e.g. by Dulleck 2006). Nevertheless, employment and migration towards the cities (plus 5%, Ianoș;2006: 609) was on the rise. Dăianu (2000: 10) even reports an unaffordable rise of real wages by 11 % for this year. However, a foundation for deep changes in Romania was laid. A first round of price liberalization took place, labor mobility controls were abolished, private sector activities and private banks were allowed. Additionally, a privatization law was introduced while commercial and central banking services were separated (cf. Demekas & Khan 1991: 47).