Abstract:

Regional development has become a necessity and thus a particular interest to policy makers in national and international institutions. In Romania, regional development has experienced various sizes due to the development of each region, thereby creating regional disparities. Attempts to reduce these disparities have existed since the communist period, but their outcome was one with serious consequences, the investments made in urban centers causing destabilizing migration of rural population balance. Regional disparities appearance represents one of the key issues found by the European Union Agenda 2020, amplifying concerns that aims to reduce disparities between regions regarding social exclusion or even the welfare of society. This paper presents the need for regional development phenomenon in Romania at the economic and social level compared to the effects they have on its regional disparities. Negative externalities are presented as a case study to highlight the process of reducing disparities between development regions.