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Foreign Direct Investment (Fdi) In Romania. Empirical Evidence Using Restricted And Unrestricted Ecm Models

Author

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  • Dalina Maria ANDREI

    (Institute of Economic Forecasting, Romanian Academy)

Abstract

This article examines the FDI in Romania using the autoregressive distributed lag model (ARDL) compared with conventional (error correction model) ECM. The results based on the bounds testing procedure implemented by Pesaran in 2001, confirm that a stable, long-run relationship exists between FDI and GDP, trade and labour in Romania. Our results also reveal that after applying the ARDL model we obtain the same results of long run association as in applying the conventional ECM models.

Suggested Citation

  • Dalina Maria ANDREI, 2014. "Foreign Direct Investment (Fdi) In Romania. Empirical Evidence Using Restricted And Unrestricted Ecm Models," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 34(1), pages 7-18, June.
    • Handle: RePEc:ath:journl:v:34:y:2014:i:1:p:7-18
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    Cited by:

    1. Liviu C. Andrei & Dalina M. Andrei, 2020. "Foreign Direct Investments The International Directly Invested Capital Divided Into Cooperation Capital And Long-Way Flows," Management Strategies Journal, Constantin Brancoveanu University, vol. 50(4), pages 16-23.

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    Keywords

    FDI; ECM model; ARDL model;
    All these keywords.

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