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Analysis Of The Relationship Between Foreign Direct Investments And Economic Growth – Case Of Romania

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  • Lenuta CARP

    (Alexandru Ioan Cuza” University of Iasi, Faculty of Economics and)

Abstract

FDI are appreciated as an important catalyst in the host country economy due to their positive externalities they generate through fixed capital accumulation, stimulating the development of organizations, technological transfer and exerting a strong impact on equilibration of the balance of payments. The aim of the paper is to study the dynamic of the foreign flows in Romania and to examine the relationship between FDI flows and economic growth using SPSS. The results of the analysis emphasize the positive, direct and strong correlation between the variables. Further analysis can be developed by including other variables in the econometric study like trade, human capital or by expanding it to a time series analysis using other techniques.

Suggested Citation

  • Lenuta CARP, 2012. "Analysis Of The Relationship Between Foreign Direct Investments And Economic Growth – Case Of Romania," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 9, pages 175-188, June.
    • Handle: RePEc:aic:revebs:y:2012:i:9:carpl
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic growth; FDI; GDP; correlation;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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