EMPIRICAL STUDY REGARDING THE FACTORS THAT INFLUENCE FOREIGN PARTICIPATION IN THE SHARE CAPITAL OF COMPANIES FROM NORTH-WEST REGION OF ROMANIA

Mariana Sehleanu ()
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Mariana Sehleanu: Universitatea din Oradea

Annals of Faculty of Economics, 2017, vol. 1, issue 2, 143-152

Abstract: Investment flows represent a very important issue when we are talking about economic development at regional level. The existing stock of the value of subscribed capital in companies with foreign participation in the share capital from North-West region of Romania recorded a slight growth untill 2008 and then the values increased in a greater extent, reaching 2.506.631,9 thousands of euro at 31 december 2016 (ONRC, 2017). The number of firms registred from 1991 and existing on the market in North-West region of Romania increased annually, recording 8.226 in 2001 and 25.548 in 2016, as shown by Romanian National Trade Register Office statistics. The purpose of this study is to analyze the influence of some factors on the value of subscribed capital in companies with foreign participation in the share capital from North-West region of Romania, during 2001-2015. The results obtained in this empirical study, realized using simple regression models, show that factors such as number of graduates, gross domestic product (GDP) and research&development expenditure have an important influence on the value of subscribed capital in companies with foreign participation in the share capital from North-West region of Romania, while labour cost have a moderate influence. Between the value of subscribed capital in companies with foreign participation in the share capital in North-West region of Romania and the variables research&development, number of graduates, respectively gross domestic product, there is a direct and linear correlation and between the value of subscribed capital in companies with foreign participation in the share capital in North-West region of Romania and labour cost there is an inverse linear correlation. Our study suggests that, in order to attract more foreign investments, regional policy makers should support all businesses and institutions that can contribute to improving the level of the variables included in this research. Knowing the regional factors that attract foreign investments represent an important information that can contribute to outline economic policies at the level of the region.

Keywords: foreign subscribed capital; companies; North-West region; Romania (search for similar items in EconPapers)
JEL-codes: F21 (search for similar items in EconPapers)
Date: 2017
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