Theoretical and Applied Economics
No. 3 / 2026 (648), Autumn
Capitalization of Romanian companies and macroeconomic variables: friends or foes?
Bucharest University of Economic Studies, Romania
Leonard-Dan UZUM
Bucharest University of Economic Studies, Romania
Abstract. Adequate capitalization of non-financial companies represents one of the main vulnerabilities of the Romanian economy. Estimating its impact on macroeconomic variables could give hints about how transmission mechanisms of fiscal and monetary policies as well as financial stability could be strengthened. Using empirical evidence for Romania, in the period 2009-2024, the paper investigates the relationship between capitalization needs, economic growth and budget deficit and shows that by reducing undercapitalization, budget deficit could decrease by around 0.3-0.4 percentage points – non-ESA2010/consolidation effects, operating directly through higher taxes of undercapitalized companies and indirectly through second-round effects of more buoyant economic growth. Moreover, it is proved that adequately capitalized firms are more resilient, less dependent on external financing, and better able to sustain investment and absorb shocks. Strengthening corporate capital buffers may therefore support policy effectiveness, macroeconomic resilience, and sustainable economic growth.
Contents
Comparing portfolios built from intrinsic-value-based stock picks versus market-cap-weighted indices
The impact of shifting elasticity of substitution on international firm location: global macroeconomic implications
Social security contributions and growth constraints in Greece: breaking the fiscal rigidity trap
Predicting customer churn using Machine Learning: models and core approaches
Have we truly transitioned from industrial to service-based economies? An analysis of the economic sectoral distribution
Monetary-fiscal policy regimes and economic growth in Algeria: a Markov-switching analysis (1990Q2–2025Q4)
Does foreign aid reach the poorest? A multidimensional poverty analysis for Pakistan
Mathematical modeling of nearshoring and reshoring in the reconfiguration of trade flows
Analyzing the impact of agricultural growth on inclusive growth in Côte d'Ivoire: key challenges and opportunities
Credibility erosion and exchange rate pass-through in Türkiye
The aggregate banking-sector footprint of financial education mandates: cohort exposure, community bank margins, and an arithmetic of detection
The relationship between exchange rates, trade and economic growth in the Philippine context
Social sector expenditure, economic growth, and multidimensional poverty in India: evidence from panel data analysis
Capitalization of Romanian companies and macroeconomic variables: friends or foes?
The role of investment and trade in promoting economic growth in Ghana
Beyond generational decay: a psychosocial account of Generation Z’s changing relationship with achievement, education and work
Financial inclusion and sustainable development in Algeria: an empirical analysis using the ARDL Model (2004-2022)
The Impact of Fiscal Policy on Inflation in Romania
Comparing regional and global spillovers to the GCC equity markets
Tax pressure and governance in a spatially interdependent world: international evidence and Morocco’s positioning
Management and performance of territorial police structures: a conceptual framework based on indicators