rossi, che cosa sa fare l ’ italia. la nostra economia dopo la grande crisi, laterza, bariroma, 2017. company size and type of governance are inter - related and here we can see another characteristic of our firms from an international point of view : they are family firms not only as regards ownership and top management but also as regards the second and third lines of command. 4 recent analyses show that between 2008 and 2015 this tendency increased. 5 small family - owned firms where there is a strong presence of family members in management are less productive, more poorly managed and less inclined to innovate – and there is plenty of empirical evidence to support this. 6 this is already sufficient to explain why this kind of firm tends to approach a bank when it needs external financing rather than issuing bonds to be traded on the market or selling its own shares privately to a fund or publicly on the stock exchange. i would like to quote a couple of recent research papers on the italian market, written by bank of italy economists, according to whom, in line with findings in the international literature, firms ’ recourse to the bond market essentially depends on three factors : the need to fund new investments ; the company ’ s reputation and transparency vis - avis investors ; and balanced financial and capital conditions. 7 for our companies to want and be able to obtain funds from non - bank financial institutions or directly on the market, they need to : increase the level of management transparency ; improve the quality of governance ; produce balanced and credible financial statements and industrial plans ; and undergo a profound cultural shift, including by acquiring new financial skills and a. giunta and s. rossi, op. cit. m. bugamelli and f. lotti, ‘ productivity growth in italy : a tale of a slow - motion change ’, forthcoming. m. bugamelli, l. cannari, f. lotti and s. g. magri, il gap innovativo del sistema produttivo italiano : radici e possibili rimedi ’, questioni di economia e finanza ( occasional papers ), 121, 2012. for an international comparison see n. bloom and j. van reenen, ‘ why do management practices differ across firms and countries? ’, journal of economic perspectives, vol. 24 ( 1 ), 203 - 224, 2010. m. accornero,

bucharest, alongside other important cities, as well as areas either in the proximity of the western border or in which industrial clusters appeared, did much better than other areas, particularly those in the north - east, which are lagging behind. the north - east of the country could constitute an attractive investment destination. as there are other regions where the gap between demand and supply of skilled labour is becoming more evident, firms have often encountered difficulties in overcoming the challenges posed by poor transport infrastructure – the one that makes us sigh. because of the lack of investments, administrative units do not have an economic core and people have little choice but to move to a larger city or to another country. this is perhaps the most important challenge romania is facing right now and i see only one way of overcoming this : continuing to increase our competitiveness and productivity in such a way as to preserve macroeconomic balances and reduce inequality. no country can obtain sustainable economic growth by boosting consumption and undermining contractual discipline, but by implementing structural reforms leading to productivity gains. as paul krugman said “ productivity isn ’ t everything, but in the long run it is almost everything. a country ’ s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker ”. eu membership brought about economic progress and positive changes in the romanian society. one example is student mobility, so that romanian young minds have the opportunity of studying at universities abroad, which – i guess – brings many of you here today. 3 / 4 bis central bankers'speeches your decision to study in a prestigious institution abroad is admirable, as moving away from your home country and studying in a language other than your own is definitely not the most convenient choice, yet it shows maturity, determination and long - term thinking. there was a time when leaving romania for a western country was a definitive, even dramatic choice : it literally meant cutting all bonds with your native country and with everything it implied – family, friends, way of life, in general. fortunately, times have changed : today ’ s globalised world allows you to shape an optimal professional path, so that there are always sufficient degrees of freedom. for instance, a young high - school graduate from the city of galati / piatra - neamt can choose to complete his or her education in galati, bucharest, london or anywhere else in the world. should he or she decide to study abroad, that does not necessarily mean leaving romania for