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The foreign direct investments in Romania – contradictories trends

Author

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  • Ana POPA

    (University of Craiova)

Abstract

Romania attracted large inflows of foreign direct investments (FDI), thanks to an improved business environment and still-low labor costs. Romania offers to the foreign investors many major reasons to invest in Romania: great market potential, strategic location, significant natural resources, high skilled labor force, high potential for economic growth, new EU member, infrastructure growing steadily, friendly business environment, access to European funds, competitive taxation. But still there are possible many contradictories evolutions generated both by Romanian government decisions and by the influence of the external factors. Virtually, the size on the above potential shows the countries with low FDI potential but strong FDI performance. The same time, the United Nations Conference on Trade and Development (UNCTAD) matrix considers that Romanian economy has less advantages than the Romanian Agency for Foreign Investment (ARIS) offers. Therefore, Romania is below potential wanted by foreign investors. Therefore many challenges must be addressed to enhance competitiveness and to attract additional FDI. The Foreign Investors Council (the FIC) from Romania believes that Romania must still improve the enforcement of new laws and regulations; tackle major social reforms, including reform of the labor market; increase its competitiveness and improve its infrastructure.

Suggested Citation

  • Ana POPA, 2008. "The foreign direct investments in Romania – contradictories trends," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(36), pages 612-619, may.
  • Handle: RePEc:aio:aucsse:v:2:y:2008:i:11:p:612-619
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    File URL: http://feaa.ucv.ro/AUCSSE/0036v2-012.pdf
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    References listed on IDEAS

    as
    1. Laura Giurca Vasilescu, 2007. "Foreign Direct Investment In Romania - Recent Trends," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(9S), pages 27-34, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    foreign direct investments; trends; contradictions; South-East Europe; Romania.;

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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