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Explaining the Regional Economic Growth in Romania. Does Foreign Capital Play a Role?

Zizi Goschin () and Danciu Aniela ()
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Danciu Aniela: Bucharest Academy of Economic Studies Department of Statistics and Econometrics

Ovidius University Annals, Economic Sciences Series, 2012, vol. XII, issue 1, 508-514

Abstract: The foreign investment acts as a supplement to domestic savings and provides access to newer and improved technology, thus increasing the growth prospects of the receiving economy. This study addresses the understudied issue of regional effects of FDI location in Romania. From the econometric perspective the novelty to earlier research consists in the use of a panel data model instead of the usual cross-sectional or time-series approaches. This technique allowed us to control for region-specific differences in the factors of influence included in the economic growth model.

Keywords: foreign direct investment; panel data model; region; Romania. (search for similar items in EconPapers)
JEL-codes: J21 J64 (search for similar items in EconPapers)
Date: 2012
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Handle: RePEc:ovi:oviste:v:xii:y:2012:i:12:p:508-514