THE GOVERNMENTAL POLICIES THAT ENCOURAGE THE POSITIVE CONTRIBUTIONS OF THE FOREIGN DIRECT INVESTMENTS INFLOWS

Mihail Vincentiu Ivan and Viorela Iacovoiu
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Mihail Vincentiu Ivan: Oil and Gas University, Ploiesti
Viorela Iacovoiu: Oil and Gas University, Ploiesti

Theoretical and Applied Economics, 2008, vol. 11(528)(supplement), issue 11(528)(supplement), 115-123

Abstract: The maximization of the positive effects and the diminution of the costs associated to foreign direct investments depend mainly on the host country existing conditions and the applied government policies that may encourage the manifestation of some FDI contribution, simultaneously influencing the quality and quantity of the foreign capital inflows. As for the European integration, considering the positive evolutions recorded during the last years, we appreciate that in Romania as well, similar to other Central and Eastern European countries, the massive foreign capital input oriented towards activities incorporating a large number of local resources, mainly technology and knowledge, may encourage the improvement of the existing production factors quality and creation of some specialized production factors. In this respect, the long term development strategy must rely on the improvement of the human and technological capabilities, by making use of intelligent foreign direct investments, applying adequate promotion policies to efficiently instrument the accomplishment of the aimed objectives.

Keywords: foreign direct investments; governmental policies; development strategy; positive contributions; and European integration. (search for similar items in EconPapers)
Date: 2008
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