THE INTERACTION BETWEEN FOREIGN INVESTORS AND NATIONAL ENTERPRISES IN THE ROMANIAN SERVICE SECTOR

Georgeta Ilie ()
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Georgeta Ilie: Institute for World Economy, Romanian Academy 13, Calea 13 Septembrie, 6th sector, Bucharest ROMANIA

Global Economic Observer, 2025, vol. 13, issue 2, 87-102

Abstract: Over the last three decades, the attractiveness of the Romanian business environment, bolstered by favourable national policies, has generated substantial inflows of foreign direct investment (FDI), which in turn have contributed to Romania's economic transformation. As an important destination for FDI, the service sector has come to contribute significantly to the value added in Romania’s GDP, employment, and foreign trade The main objective of this paper is to highlight the service sector as a beneficiary of the relationship between foreign investors and national enterprises, taking into account the different forms of business partnership, in accordance with the characteristics and dynamics of the Romanian service market. The research results are deployed in a quantitative dimension focused on the macroeconomic perspective related to service developments indicators, where FDI has had a considerable direct and indirect contribution, especially to the trade in services of Romania, as well as a qualitative approach of the most relevant forms of collaboration between foreign investors and national companies along the transformational processes in the Romanian economy depending on and in accordance with the particularities of the service domains. The statistical approach is based on data of national and international institutions, covering the period between 2015 and 2024, while the analysis of foreign-local collaborations and interactions is built on various studies and reports developed over time by institutions and companies, related to foreign projects and partnerships within the service markets in Romania. The concluding remarks in the last part of this paper emphasize that as a recipient of FDI, the service sector has been considerably transformed, with transfers of capital, technology, and know-how being multiplied by the spillover effects generated by interactions between foreign investors and domestic enterprises, contributing to Romania's specialization, especially in information and communications technology services.

Keywords: foreign direct investment; services; trade in services; Romania; spillover effects; economic development (search for similar items in EconPapers)
JEL-codes: F21 F23 F43 L8 O14 (search for similar items in EconPapers)
Date: 2025-12
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