ifkad articles

Understanding Socio-Economic Perceptions Complexity in Romania and Moldova: Implications for the Business Environment

Profiroiu Constantin Marius, Profiroiu Alina Georgiana, Constantin Daniela-Luminița, Cibu Bianca Raluca, Delcea Camelia

This paper investigates how people’s perceptions of socio-economic indicators in Romania and the Republic of Moldova influence the development of the business environment at local and regional level, in the context of growing challenges to economic and social resilience. Based on a questionnaire applied to a sample of 3228 respondents, the study analyzes eight key indicators, grouped into two composite indices: “Economic and social policies” (I1) and ” Access to basic services/resources (critical infrastructures) services” (I2). These two indices were then combined into a third, entitled ” Overall socio-economic perceptions” (I3), to provide an integrated picture of the well-being of the population. During the course of the work the K-means clustering algorithm and the Silhouette indicator were applied to validate the optimal number of clusters, using the RStudio software the research identified different relevant county-level clusters. In the case of the I1 index, Romanian counties clustered in a distinct cluster from those in the Republic of Moldova, suggesting significant differences in income satisfaction, job security and access to public services. In contrast, for I2, the analysis revealed five clusters, reflecting greater variation in perceptions of access to utilities, energy, education and health. Thus, even though the majority of counties in Romania received high scores, there were also a few counties that scored lower, for which some improvements should be made. The results provide a useful tool for policy makers and business actors, suggesting areas with different needs and varying investment potential. The study highlights the importance of understanding local perceptions in formulating development and intervention policies.

IN: Proceedings IFKAD 2025: Knowledge Futures: AI, Technology, and the New Business Paradigm
PP: 498-506