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3.3.8 Region Bucharest-Ilfov

Image 3.23:

Romania’s Development Bucharest – Ilfov
Regiunea București-Ilfov

Regiunea București-Ilfov - The Development Region Bucharest-Ilfov in Romania

Source: ro.wikipedia.org/wiki/Imagine:Ilfov.png

This Development Region of Romania consists of the Municipality Bucharest and the surrounding county Ilfov. About 2.2 millions of inhabitants (10.2 % of the total population) live here on some 0.008 % of the total Romanian territory and generated in 2005 about 21.71 % of the country’s total GDP. Regional GDP in Bucharest and Ilfov per capita amounted to 9,040 € in 2006 and might increase up to 16,041.3 € by 2010, according to CNP forecasts (CNP 2008 a: 14). The region is dominated by Bucharest, the country’s (and even South-Eastern Europe’s) biggest market for business and services. Agriculture accounts to less than a neglectable 1 % of regional GDP and is to be found only beyond the borders of the Capital. Some 20 % are contributed by the diversified industry, further 10 % are generated by the construction sector and nearly 70 % are created by the services sector (INS, 2008; own calculations for 2005).  Over 5 % are contributed by financial services and 19.17 % by the real estate sector. The local GDP per capita of Ilfov was 55 % higher than the Romanian average in 2005; the local GDP of Bucharest nearly amounted to 249 % compared to the national average (100 %).


On the other hand, the high GDP per capita was not reflected by average salaries, which were just some 24 % higher than the national average in 2006. About a third of the Romanian universities are to be found in Bucharest (cf. Miroiu and Florian 2006: 576), nonetheless they hardly manage to supply the grasping demand for qualified labor as unemployment rates might indicate. Unemployment is low and ranged in 2007 from 1.5 % in Ilfov to 1.8 % in Bucharest (INS 2008) where only unqualified labor might be affected.

The high productivity is accompanied by a sturdy demand for imports (88.2 % of regional GDP) and contributed according to NewsIn some 74 % to Romania’s trade deficit. Not surprisingly exports represented just 27 % of the regional GDP for Bucharest and Ilfov and 21 % of total Romanian exports. Nearly 65 % (22.205 billion of Euros, 10,004 € per capita) of total FDI-inflows were destinated to this region (ADRC 2008). Most of the top rated firms by NewsIn (2008: 124) are settled in the Capital. Just four of the 30 top rated enterprises from this region are located in Ilfov. These are: Carrefour, Metro, Phillip Morris and Porsche.

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

The infrastructural development in Bucharest and Ilfov is relatively good. The region is the intersection of important high- and railways and further backed by two international airports. Most parts of the road network are modernized, though it is usually overcharged by an immense and daily traffic.

The public administration got worst ranked by the NewsIn monitoring 2008, achieving an overall score of just 8 points from 20 possible. On the other hand, the aggregate value contains considerable 16 points for Romania’s Capital Bucharest and 0 points for Buftea (county Ilfov). The NewsIn scores for the public administration will be used in subsequent chapters (cf. chapter 4.2) to further examine the connection between economic performance and the quality of institutions in Romania.