Labour productivity in services - an essential factor in regional development

Purpose - The objective of the paper is to identify the role that labour productivity, especially labour productivity in the services sector, plays in the process of Romanian regional economic development. Methodology/approach - In order to highlight the empirical relationships between labour productivity and economic development, at regional and county level, we applied the correlation coefficients and regression analysis. Findings - The results of our study show that the disparities in the level of development at regional and county level in Romania can be explained by the disparities in labour productivity. Research limitations/implications - The analysis of the relationship between labour productivity and economic development in the Romanian economy, has been carried out only for 2009, because more recent statistical data are not available. Practical implications - Through our study we aim to emphasise the necessity of taking some measures to increase labour productivity in order to reduce the existent gaps between the development regions within Romania. Originality/value - The originality of our paper consists in the economic-statistical analysis of the relationship between labour productivity and economic development, at the level of the eight development regions in Romania, as well as at county level.