ROMANIAN NUTS-2 REGIONS: EU CONVERGENCE AND THE ROLE OF FDI

Daniela Grozea-Helmenstein, Günther Grohall and Christian Helmenstein
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Daniela Grozea-Helmenstein: Institute for Advanced Studies (IHS) in Vienna
Günther Grohall: Economica Institute for Economic Research in Vienna, Austria,
Christian Helmenstein: Federation of Austrian Industries in Vienna

Journal of Financial and Monetary Economics, 2016, vol. 3, issue 1, 245-253

Abstract: This paper shows the progress Romania‘s NUTS-2 regions achieved in reducing the gap to the average GDP per capita in the European Union and the role of FDI in this process. By using the elastic net methodology, the paper identifies the main factors driving foreign direct investment (FDI) in selected Central and Eastern European NUTS-2 regions. It finds that high GDP and GDP per capita in a region increase attractiveness for FDI. Large FDI stocks contribute, on the other hand, to rising regional GDP per capita. The paper identifies key fields that need support from policy makers in order to enhance FDI and foster convergence.

Keywords: NUTS-2; growth; GDP; elastic net (search for similar items in EconPapers)
JEL-codes: H70 O11 O18 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:vls:rojfme:v:3:y:2016:i:1:p:245-253

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