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Foreign Direct Investment and Regional Development in Romania

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  • Corduneanu, Carmen
  • Iovu, Laura Raisa

Abstract

The regional integration of the Romanian economy implies the continuation of modernizing existent structures, expanding the new entrepreneurial culture and foster the individual competences for corresponding to the European model. Foreign direct investments represent the link between financial and productive systems, integrating them at a regional and global level. Beside the imported capital flows, they have a direct impact upon the management of the productive entities, assure a transfer of modern technologies, increase the level of occupation and the household available income, modifying the consumers culture. The regional development policy must ensure the reduction of disparities between the different levels of development of the Romanian regions through encouraging foreign direct investment capable of completing the little dimension of the local capital. Taking into consideration the movement of disparities to East and the fact that the increase of economical development disparity after the last two European Union enlargements did not involve a higher level of allocated funds, foreign direct investments remain an alternative for the disparity elimination and accelerating the restructuring marked by the globalization

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12926.

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Date of creation: 01 Oct 2007
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Handle: RePEc:pra:mprapa:12926

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Related research

Keywords: regional development; socio-economical disparities; foreign direct investments;

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References

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  1. Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996. "Foreign Direct Investment and Growth in EP and IS Countries," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(434), pages 92-105, January.
  2. Blomström, Magnus & Konan, Denise & Lipsey, Robert E., 2000. "FDI in the Restructuring of the Japanese Economy," Working Paper Series in Economics and Finance 371, Stockholm School of Economics.
  3. Blomstrom, Magnus, 1986. "Foreign Investment and Productive Efficiency: The Case of Mexico," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 35(1), pages 97-110, September.
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Cited by:
  1. Corduneanu, Carmen & Iovu, Laura Raisa, 2008. "The multinational companies - an institutional response to the changes in the technological market," MPRA Paper 12972, University Library of Munich, Germany.

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