Uncovering the Attractiveness of the Romanian Market: A Data-Driven Approach

Daniel Lipara () and Marian Ionel ()
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Daniel Lipara: “Ovidius” University of Constanta, Faculty of Economic Sciences, Romania
Marian Ionel: “Ovidius” University of Constanta, Faculty of Economic Sciences, Romania

Ovidius University Annals, Economic Sciences Series, 2023, vol. XXIII, issue 2, 267-276

Abstract: The purpose of this study is to examine the elements that strengthened market attractiveness in Romania, between 2000 and 2022. To fulfil this, we considered a selection of variables upon which we carried out a Principal Component Analysis that allowed to underline the factors associated with Romanian market attractiveness. After exploring the correlation between Foreign Direct Investment, Gross Domestic Product, Labor Force Participation Rate, Logistics Performance Index and Political Stability, the PCA unveiled five components, with the first two accounting for 83.01% of the total variance in the data. Formulated on the initial variables' loadings on these components, FDI, GDP, LFPR, LPI, and POLSTABILITY appear to be significant factors that promoted market attractiveness in Romania. Still, a more in-depth analysis and interpretation of the data is required to fully comprehend the factors that make attractive the Romanian market.

Keywords: principal components; economic growth; investment; employment; market structure (search for similar items in EconPapers)
JEL-codes: C38 E22 E24 L11 O47 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xxiii:y:2023:i:2:p:267-276

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