The paper aims to assess the evolution of the development disparities (output, employment, overall and by sectors) in the regions and counties of Romania. Using classic and spatial shift-share analysis tools, we investigate the extent to which the existing interregional and, especially, intra-regional and inter-county inequalities can be attributed to different factors, such as industry mix, regional specific factors, and interregional interactions. The results reveal a diverse milieu and offer useful insights both for general and specifically targeted policies in the area of regional development.