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Are Foreign Direct Investments An Instrument Of Shifting The Moldavian Economy To A Superior Level Of International Specialisation?

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  • Dumitru MOLDOVANU

    ()
    (Moldavian Academy of Studies, Cisinau, Republic of Moldova)

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    Abstract

    It is a well known fact that a country or other becomes richer or poorer to a large extent depending on the character of the country’s international specialisation. For centuries, the world’s countries have permanently changed their specialisation type in order to obtain higher incomes and become more prosperous. From the theoretical viewpoint, currently, under the conditions of globalisation, the countries of the world may change their type of specialisation under the influence of foreign capital investments. It is indeed true, and yet, the opinion that FDI any time and anywhere, under any circumstances are beneficial to the host country is somewhat exaggerated. In the vast majority of cases, FDIs “pull” the host country towards progress, and in some cases, these still can change a formerly prosperous country into a simple exporter of raw materials. We expect that FDI shall make us richer, shall increase the economic development level of the country. We are still expecting it today, even if with less enthusiasm. Why?

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    Bibliographic Info

    Article provided by Institute of National Economy in its journal Romanian Journal of Economics.

    Volume (Year): 26 (2008(XVIII))
    Issue (Month): 1(35) (June)
    Pages: 121-132

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    Handle: RePEc:ine:journl:v:1:y:2008:i:26:p:121-132

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    Keywords: foreign direct investments; international specialisation;

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