FOREIGN DIRECT INVESTMENTS AND THE NATIONAL ABSORPTION CAPACITY

Steliana Sandu

Romanian Journal of Economics, 2005, vol. 21, issue 2(30), 168-175

Abstract: Positive externalities that might appear as a result of foreign direct investments cannot be internalised by national companies in the absence of a critical mass of the absorption capacity at company level, and at the level of the national economy. The present study makes reference to four categories of multiplication effects that FDI might have on companies from the host country, the achievement of which is conditioned by their absorption capacity.

Keywords: FDI; R&D potential; externalities; technological capacity (search for similar items in EconPapers)
JEL-codes: F21 F23 O31 O33 O38 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ine:journl:tome:21:y:2005(xv):i:2(30):p:168-175

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