Applying the Solow-Swan-Romer Framework to European Funds and NGEU: A Literature Review with a Focus on Romania

Authors: Cătălin Marian Costache

Abstract

This paper reviews the application of the Solow-Swan and Romer growth models in order to analyze the impact of European Union Cohesion Policy, European Funds and NextGenerationEU on economic convergence, with a focus on Romania. Building on previous work on the topic, it examines studies on capital accumulation, technological progress, and efficiency factors — particularly transport infrastructure, accessibility, governance, water/waste/urban/health/educational infrastructure, quality of health/educational services, demographics, and urban agglomeration — in the European Union and Romania. The review identifies gaps in region-specific analyses, population evolution, and agglomeration effects, justifying a tailored model for Romania’s growth dynamics. It emphasizes NextGenerationEU’s reform-driven approach as complementary to Cohesion Policy, enhancing efficiency in neoclassical models.