Two-Speed Romania: An Analysis of Regional Competitiveness Patterns

Abstract This study examines the regional competitiveness of Romanian NUTS 2 regions from 2016 to 2022, employing the EU Regional Competitiveness Index (RCI) 2.0. The research identifies a polarized “two-speed” developmental model by benchmarking these regions against relevant EU peers and utilizing a K-means clustering algorithm. The findings indicate that although the capital, București-Ilfov, has reached “Efficiency” levels similar to those of Western European regions, it continues to show structural imbalances caused by weaknesses in institutions and infrastructure. The other seven development regions of Romania are situated within a low-competitiveness cluster, which shows considerable volatility and reduced resilience relative to their Central European peers. The findings reveal that the primary barrier to convergence is not market size, but major obstacles in fundamental areas such as education and physical connectivity. The study concludes that existing “one-size-fits-all” cohesion policies are inadequate, recommending a distinctive strategy that emphasizes absorptive capacity for underdeveloped regions and enhancements in quality of life for the capital region.