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Explaining the Regional Economic Growth in Romania. Does Foreign Capital Play a Role?

Author

Listed:
  • Goschin Zizi

    (Bucharest Academy of Economic Studies Department of Statistics and Econometrics)

  • Danciu Aniela

    (Bucharest Academy of Economic Studies Department of Statistics and Econometrics)

Abstract

The foreign investment acts as a supplement to domestic savings and provides access to newer and improved technology, thus increasing the growth prospects of the receiving economy. This study addresses the understudied issue of regional effects of FDI location in Romania. From the econometric perspective the novelty to earlier research consists in the use of a panel data model instead of the usual cross-sectional or time-series approaches. This technique allowed us to control for region-specific differences in the factors of influence included in the economic growth model.

Suggested Citation

  • Goschin Zizi & Danciu Aniela, 2012. "Explaining the Regional Economic Growth in Romania. Does Foreign Capital Play a Role?," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 508-514, May.
    • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:12:p:508-514
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    More about this item

    Keywords

    foreign direct investment; panel data model; region; Romania.;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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