Field: Finances and financial capital

Subfield: Financial capital

Details:

How do we prioritize the allocation of capital at a given time? Obviously, there are competing claims to capital. Because, by force of things, capital is limited, how it is allocated shows very clearly the priorities of a local or national community. Countries that want to take advantage of their natural resources, process these resources and increase added value pay attention to investment in general, especially investment in productive sectors (what the specialists call gross capital formation). Two indicators are very important for a country: the capital stock (capital brings together all components of a production process) and the percentage of this stock directed towards productive investment.

In Romania, gross capital formation (investment in productive sectors) has gone through important structural changes: we invest more in the construction sector and less in the industrial sector; in the total investment, agriculture occupies an increasingly marginal position (77.5 million euro in 2015, compared to 17.562 million euro in construction and 16.032 million euro in industry in 2015). Romania has been recovering slowly after the crisis: in 2015 Romania did not reach the capital stock invested in 2007 (40 billion euro in 2015, compared to 55 billion euro in 2007).