IDEAS home Printed from https://ideas.repec.org/a/ine/journl/v2y2011i42p21-58.html
   My bibliography  Save this article

Some challenging (macro)economic aspects of FDI in Romania

Author

Listed:
  • Gheorghe ZAMAN

    (Institute of National Economy, Romanian Academy)

  • Valentina VASILE

    (Institute of National Economy, Romanian Academy)

  • Mirela MATEI

    (Petroleum and Gas University from Ploiesti)

  • Carmen CROITORU
  • George ENESCU

    (Petroleum and Gas University from Ploiesti)

Abstract

The research intends to analyse a series of FDI effects on Romania from the viewpoint of structure, volume and dynamics by types, sectors and branches, development regions and origin countries, as well as the impact on the expatriated and reinvested earnings, trade balance, and profitability of economic agents with FDI, transfer prices, and competitiveness of exports.The outcome of the research highlights the overall negative trade balance of enterprises with FDI between the years 2007-2010, the relation between reinvested and expatriated profit, and the unfavourable impact of some energy traders on competitiveness. The importance of foreign investments in industry is highlighted, especially in the manufacturing industry and the unsatisfactory structure of FDI, which in Romania aims at the medium- and low-tech level branches.

Suggested Citation

  • Gheorghe ZAMAN & Valentina VASILE & Mirela MATEI & Carmen CROITORU & George ENESCU, 2011. "Some challenging (macro)economic aspects of FDI in Romania," Romanian Journal of Economics, Institute of National Economy, vol. 33(2(42)), pages 21-58, December.
    • Handle: RePEc:ine:journl:v:2:y:2011:i:42:p:21-58
    as

    Download full text from publisher

    File URL: http://www.revecon.ro/articles/2011-2/2011-2-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    2. Gheorghe ZAMAN, 2006. "Some Macroaspects Of Fdi In Romania," Romanian Journal of Economics, Institute of National Economy, vol. 22(1(31)), pages 9-27, June.
    3. Gheorghe Zaman, 2006. "Aspecte ale eficientei macroeconomice a investitiilor straine directe in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 4(4(499)(su), pages 65-88, June.
    4. Pelinescu, Elena & Radulescu, Magdalena, 2009. "The Impact of Foreign Direct Investment on the Economic Growth and Countries’ Export Potential," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 153-169, December.
    5. Robert E. Lipsey, 2002. "Home and Host Country Effects of FDI," NBER Working Papers 9293, National Bureau of Economic Research, Inc.
    6. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Multinational Corporations and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 8, pages 101-133, Palgrave Macmillan.
    7. Durham, J.B.J. Benson, 2004. "Absorptive capacity and the effects of foreign direct investment and equity foreign portfolio investment on economic growth," European Economic Review, Elsevier, vol. 48(2), pages 285-306, April.
    8. Blomstrom, Magnus & Kokko, Ari, 1998. "Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 247-277, July.
    9. Ali M Kutan & Goran Vukšić, 2007. "Foreign Direct Investment and Export Performance: Empirical Evidence," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(3), pages 430-445, September.
    10. Pauna, Carmen Beatrice, 2005. "The Influence Of Regional Disparities Of Romania On Attracting Foreign Direct Investments," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 2(1), pages 35-47.
    11. Jagdish Bhagwati, 1958. "Immiserizing Growth: A Geometrical Note," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(3), pages 201-205.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vasile Alecsandru STRAT, 2015. "The relationship between the education system and the inflows of FDI for the Central and East European EU new member states," Romanian Journal of Economics, Institute of National Economy, vol. 41(2(50)), pages 76-92, december.
    2. Podasca Raluca, 2017. "Econometric Study Of The Correlation Between Foreign Direct Investments And Gross Domestic Product In Romania," Management Strategies Journal, Constantin Brancoveanu University, vol. 35(1), pages 261-268.
    3. Radulescu Magdalena & Cirstea Cornelia Gabriela & Belascu Lucian Aron, 2020. "FDIs and Commercial Balance in CEE Countries - Special Focus on the Manufacturing Economic Sectors. A VAR Analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 13(2), pages 7-18, September.
    4. Marius Daniel STANESCU & Daniel GUÇE, 2019. "Trends In The Evolution Of Foreign Direct Investment – Romanian Case," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 18(3), pages 91-100.
    5. Lucia P. BLĂJUȚ, 2014. "Multinational Companies And Foreign Direct Investment," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 5, pages 143-148, November.
    6. Patricia-Sabina Macelaru, 2013. "Transfer Pricing and FDI," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(4), pages 355-366, August.
    7. Valentina Vasile & Mirela Panait & Paolo Piciocchi & Maria Antonella Ferri & Maria Palazzo, 2022. "Performance management and sustainable development: an exploration of non-financial performance of companies with foreign capital in Romania," Italian Journal of Marketing, Springer, vol. 2022(3), pages 371-400, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zaman Gheorghe & Vasile Valentina & Cristea Anca, 2012. "Sustainable Development Challenges And Fdi Impact In Host Countries," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 444-460, July.
    2. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    3. Beugelsdijk, Sjoerd & Smeets, Roger & Zwinkels, Remco, 2008. "The impact of horizontal and vertical FDI on host's country economic growth," International Business Review, Elsevier, vol. 17(4), pages 452-472, August.
    4. Laura Alfaro & Areendam Chanda & Sebnem Kalemli-Ozcan & Selin Sayek, 2006. "How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages," DEGIT Conference Papers c011_023, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. Laura Alfaro & Andrew Charlton, 2007. "Growth and the Quality of Foreign Direct Investment: Is All FDI Equal?," CEP Discussion Papers dp0830, Centre for Economic Performance, LSE.
    6. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    7. Ausloos, Marcel & Eskandary, Ali & Kaur, Parmjit & Dhesi, Gurjeet, 2019. "Evidence for Gross Domestic Product growth time delay dependence over Foreign Direct Investment. A time-lag dependent correlation study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 527(C).
    8. Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    9. Eckhardt Bode & Peter Nunnenkamp, 2011. "Does foreign direct investment promote regional development in developed countries? A Markov chain approach for US states," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 351-383, June.
    10. Dirk Clercq & Jolanda Hessels & André Stel, 2008. "Knowledge spillovers and new ventures’ export orientation," Small Business Economics, Springer, vol. 31(3), pages 283-303, October.
    11. Oscar Bajo-Rubio & Carmen Diaz-Mora & Carmen Diaz-Roldan, 2010. "Foreign Direct Investment and Regional Growth: An Analysis of the Spanish Case," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 373-382.
    12. Andreas Waldkirch, 2010. "The Effects of Foreign Direct Investment in Mexico since NAFTA," The World Economy, Wiley Blackwell, vol. 33(5), pages 710-745, May.
    13. Khaled Elmawazini & Gamal Atallah & Sonny Nwankwo & Yazid Dissou, 2013. "US Foreign Affiliates, Technology Diffusion and Host Country Human Development: Human Development Index versus Human Capital," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 69-91, January.
    14. Shima’a Hanafy & Marcus Marktanner, 2019. "Sectoral FDI, absorptive capacity and economic growth – empirical evidence from Egyptian governorates," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(1), pages 57-81, January.
    15. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2010. "Does foreign direct investment promote growth? Exploring the role of financial markets on linkages," Journal of Development Economics, Elsevier, vol. 91(2), pages 242-256, March.
    16. Natasha Agarwal & Chris Milner & Alejandro Riaño, 2011. "Credit Constraints and FDI Spillovers in China," Discussion Papers 11/21, University of Nottingham, GEP.
    17. Laura Alfaro & Andrés Rodriguez-Clare, 2004. "Multinationals and Linkages: An Empirical Investigation," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 113-169, January.
    18. Ashraf Mishrif & Yousuf Al Balushi, 2017. "Effect Of Foreign Direct Investment On Domestic Enterprises In The Gulf Countries," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 11(3), pages 39-54.
    19. Christer Ljungwall & Junjie Li, 2007. "Financial Sector Development, FDI and Economic Growth in China," Finance Working Papers 22026, East Asian Bureau of Economic Research.
    20. Della Temenggung, 2007. "Productivity Spillovers from Foreign Direct Investment: Indonesian Manufacturing Industry’s Experience 1975-2000," DEGIT Conference Papers c012_048, DEGIT, Dynamics, Economic Growth, and International Trade.

    More about this item

    Keywords

    FDI; repatriated earnings; trade balance; state-owned transnational corporations; transfer prices;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:2:y:2011:i:42:p:21-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentina Vasile (email available below). General contact details of provider: https://edirc.repec.org/data/inacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.