Transformations  in
Business & Economics

EXPORT EXPANSION POLICIES. AN ANALYSIS OF ROMANIAN EXPORTS BETWEEN 2005-2020 USING THE PRINCIPAL COMPONENT ANALYSIS METHOD AND SHORT RECOMMANDATIONS FOR INCREASING THIS ACTIVITY
Diane Paula Corina Vancea, Kamer Ainur Aivaz, Luciana Simion, Diana Vanghele

ABSTRACT. Starting from the main trends recorded worldwide in the 2005-2020 period, a period which covers a series of events with a major impact on international trade flows, the article aims to identify a set of policies to support Romanian exports, emphasizing those generated in the financial sphere, without excluding an inventory of the general public policies that can help Romania find again the necessary balance, especially in terms of the balance of payments. In order to identify the factors that influence the variation of exports, so as to formulate a set of recommendations that can be transformed into public policies for Romania to pursue for increasing the volume of exports, we used the Principal Component Analysis (PCA) as research methodology. This method allowed us to create a control panel in which we introduced the indicators we considered relevant, identifying the type and level of influence these indicators exert on exports.

KEYWORDS:  export expansion, policies, Principal Component Analysis, Romania.

JEL classification:  B17, C38, E44.