Microeconomic Fundaments Of Foreign Direct Investments Contagion Effects: Romania And European Union Case

The economic systems dynamics d oes not work "on emptiness", but in the context of real and financial transactions it makes on external environment. Under the context of financial globalization, foreign direct investments form special categories of externalities which depend and influenc e a complex set of variables which are characteristics for reception economy. The general objective of this study is a double one. Thus, on the one side it analyzes some of the critical determinants of foreign direct investment and, on the other side, it s hows some of the effects they have in case of an emergent economy, like Romania's, respectively at European Union level. The main result of this study is that foreign direct investments are modulated by the intrinsic characteristics of receptor economies and they matter for the nature and particularities of these features. Also, an analysis of the causes and effects of foreign direct investments which does not take into consideration the structure, functional, institutional and cultural-compartmental characteristics of reference economy are equal to a reference to „ Hamlet without the Prince of Denmark”.