Transformations  in
Business & Economics

DOES REGIONAL OPENNESS STIMULATE VOCATIONAL TRAINING IN ROMANIA?
Alina Irina Popescu, Paulo Reis Mourao

ABSTRACT. This article examines the formation of human capital by exploring the role of increasing trade openness through the case of Romanian administrative regions, i.e. counties. Regions have particular needs in terms of human capital accumulation that generate emerging demands for skills and qualifications which are met in ways suited to their requirements. In the research, the authors consider the output of continuing vocational training courses as best reflecting the genuine demand at regional level for skills and qualifications adapted to local economy conditions. Using panel data estimations, the authors argue that the degree of trade openness in each Romanian county significantly influenced the number of continuing vocational training graduates. The authors' estimates were controlled with covariates suggested by the extant literature, namely, real GDP per capita, school enrolment and the industrial production index .

KEYWORDS:  human capital, trade openness, Romania, regional economy, Vocational Education and Training (VET), Continuing Vocational Training (CVT).

JEL classification:  J24, R11.