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THE EXPORT EFFICIENCY DYNAMICS OF ROMANIAN OWNED CAPITAL COMPANIES. LIMITS AND CHALLENGES IN A GLOBALISED WORLD

Valentina Vasile () and Elena Banica

Annals of Faculty of Economics, 2018, vol. 1, issue 1, 25-37

Abstract: Globalization process and the creation of single regional markets, i.e. the EU, play an important role in the dynamics of the integrated national economies and increase the degree of interdependence, generating both positive and negative externalities. The importance of foreign capital is very high for an emerging economy, in terms of increasing performance - productivity, international competitiveness, new job (highly skilled) creation, new technologies and knowledge transfer in the host country, modern management systems promotion, etc. The foreign trade activity analysis, especially on export as an economic growth factor, from the viewpoint of the companies’ capital ownership, points out competitiveness and performance’s aspects. In the same time, it allows the identification of those sectors where the commercial policy can support Romanian companies to develop efficient and productive businesses. High-tech products do not represent an attribute for big companies only; technological progress has created an inversely proportionate relationship between company size and technological level. Nowadays however, large companies still dominate the market due to the competitive advantage of RDI departments developed within the company. The comparative analysis of labour productivity reveals the higher contribution of the export of goods to the financial and economic results of FDI companies than those with domestic capital. The low(er) competiveness of the Romanian companies is diminishing the openness potential to the foreign markets. The dependence of national exports on foreign-owned companies produces positive effects in the Romanian economy on the medium and longer term. To ensure the protection of the national interests and to allow an efficient development of industries would imply a strategy and implementation policy. The policy might consider the geographical location of industrial areas (resource efficiency and cost reduction), environmental conditions (the need to protect it), the specificity of the regional population (level of education, traditions) and the opportunities for professional development. Although the number of Romanian companies is increasing, their contribution to national exports decreases. Their reduced size, a high degree of capital fragmentation, the lack of both tradition on a competitive market and a national strategic orientation for export activity, as well as the shortage in brakes on the import of goods that can be produced in Romania, lead to the restraint of Romanian entrepreneurship.

Keywords: export; Romanian capital; foreign capital; high-tech; productivity (search for similar items in EconPapers)
JEL-codes: F10 F15 F16 F23 (search for similar items in EconPapers)
Date: 2018
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