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Foreign Direct Investments – Determinant of Economic Growth for the New Member States

Author

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  • Dârzan Mihaela

    (Romanian – American University)

Abstract

Global economy is strongly influenced by the capital flows between states, impacting on their development Even if the motivation of international investment is the wish of investors to obtain higher income and profits in the host country than in the origin country, these earnings are positive for both sides, generating benefits for host country also, by: capital and technologies transfer, implementing a performing management, higher productivity and higher wages. The countries receiving FDI feel, after a longer period, the effects of these capital intakes, through higher GDP and labor productivity.

Suggested Citation

  • Dârzan Mihaela, 2012. "Foreign Direct Investments – Determinant of Economic Growth for the New Member States," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 175-179, May.
  • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:12:p:175-179
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    More about this item

    Keywords

    globalization; foreign direct investments; exports; trasnational companies.;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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