Romania: comparative advantage in foreign trade and the achievement of a solid catchingup growth in the future

The systemic transformation from centrally planned system to market economy in Romania began 16 years ago. The market–oriented reforms involved a radical change of economic policies. The list of these changes is extremely large but the proposed prescription of systemic transformation has established at least six key policy measures: macroeconomic stabilization; internal liberalization; removal of restrictions on trade and foreign direct investment-the so called external liberalization; privatization of state owned enterprises; development of a new private sector; establishment of a market supportive legal framework. The outcome of Romania’s economic performance during transition remains until now somewhat puzzling.