DETERMINATS OF UNEMPLOYMENT RATE IN ROMANIAN COUNTIES. A PANEL VAR APPROACH
In this study a panel vector autoregressive model (panel VAR) was built in order to explain the determinants of regional unemployment rate in Romania. Data refers to the 42 Romanian counties, including Bucharest, over 2000 2013. Most of the variation in unemployment rate modification in the current period compared to previous period is due to changes in social protection expenses for unemployed people. A causal relationship was identified between the two variables in Granger terms.