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Foreign Direct Investment and Sustainable Development. A Regional Approach for Romania

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  • Mihaela Simionescu

    (Institute for Economic Forecasting of the Romanian Academy.)

Abstract

In this paper, the relationship between foreign direct investment (FDI) in Romania and economic and social development as part of sustainable development is analyzed. The research is based on a regional approach, some panel vector-autoregressive models being proposed for evaluating the influence of FDI on economic growth and on relative poverty rate in the Romanian regions during 2005-2014. Two types of analyses were proposed: one that includes all the 8 regions and one that excludes Bucuresti-Ilfov region from study, because it is an outlier with respect to FDI weight in total FDI and to economic growth. Indeed, if the Bucuresti-Ilfov region is included, FDI generated economic growth in Romania, but if this region is excluded, in the rest of the country, FDI had a negative impact on economic growth. In the seven regions of Romania, excepting Bucuresti-Ilfov one, FDI did not diminish the poverty rate.

Suggested Citation

  • Mihaela Simionescu, 2016. "Foreign Direct Investment and Sustainable Development. A Regional Approach for Romania," Working Papers of Macroeconomic Modelling Seminar 162702, Institute for Economic Forecasting.
    • Handle: RePEc:rjr:wpmems:162702
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    File URL: http://www.ipe.ro/RePEc/WorkingPapers/cs27_2.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dorin JULA & Nicolae-Marius JULA, 2017. "Foreign Direct Investments and Employment. Structural Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 29-44, June.

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    More about this item

    Keywords

    sustainable development; FDI; economic growth; poverty rate;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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