THE MAIN FEATURES OF THE FLOWS OF FOREIGN DIRECT INVESTMENTS IN ROMANIA

Elena Chirila - Donciu ()
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Elena Chirila - Donciu: Alexandru Ioan Cuza University of Iasi, Romania

CES Working Papers, 2012, vol. 4(3a), issue 3a, 493-501

Abstract: A distinctive characteristic of The Global Economy over the last few decades has been the rising rate and the impressive increase in the Foreign Direct Investment (FDI globally). Due to the potential role that foreign direct investments may play in accelerating the growth rate and re-shaping the economy, many developing countries are seeking such types of investments that can multiply the efforts being made towards the growth of their economy. The purpose of this research is to analyze the flows of foreign direct investments in Romania between 2003 and 2010. The results of the research highlight the negative balance between the trade balance and the enterprises with FDI in 2007-2010, due to the financial crisis, to the fragile budget balance, due to the low competitiveness of the imports, the low quality of the Romanian products and the macroeconomic risk determined by the rate of inflation, the unemployment and the instability in the exchange rate.

Keywords: foreign direct investment; growth economy; development Romania (search for similar items in EconPapers)
JEL-codes: E22 F14 F43 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:jes:wpaper:y:2012:v:4:i:3a:p:493-501

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