Foreign Direct Investments – Determinant of Economic Growth for the New Member States

Dârzan Mihaela ()
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Dârzan Mihaela: Romanian – American University

Ovidius University Annals, Economic Sciences Series, 2012, vol. XII, issue 1, 175-179

Abstract: Global economy is strongly influenced by the capital flows between states, impacting on their development Even if the motivation of international investment is the wish of investors to obtain higher income and profits in the host country than in the origin country, these earnings are positive for both sides, generating benefits for host country also, by: capital and technologies transfer, implementing a performing management, higher productivity and higher wages. The countries receiving FDI feel, after a longer period, the effects of these capital intakes, through higher GDP and labor productivity.

Keywords: globalization; foreign direct investments; exports; trasnational companies. (search for similar items in EconPapers)
JEL-codes: E22 O11 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xii:y:2012:i:12:p:175-179

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