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THE IMPACT OF CURRENT CRISIS ON FOREIGN DIRECT INVESTMENT. EVIDENCE FROM ROMANIA

Adina Dornean, Vasile Isan and Dumitru-Cristian Oanea

Revista Economica, 2012, vol. Supplement, issue 1, 266-273

Abstract: Few studies have investigated the relationship between the current global financial crisis and FDI flows. This paper aims to analyze such a relationship for Romania`s case even if in Romania the impact of the financial crisis on the economy, although major, it had mainly manifested itself indirectly. In order to highlight this we use a regression model. We found that economic growth has a significant influence over the level of FDI, and moreover a positive influence. A very interesting result is that the financial crisis does not affect directly the level of FDI, but the link between financial crisis and GDP growth had a powerful influence on FDI.

Date: 2012
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