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Recent trends in foreign direct investments in Romania

Author

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  • Bianca Maria LUDOSEAN (STOICIU)

    (West University of Timisoara)

Abstract

In the context of globalization, the issue of Foreign Direct Investments, as well as their influence on the modernization of economies in transition, still falls into the category of key issues of economic theory. The need to attract and the efficient use of FDI is related to the mere essence of the investment process, a process, which ensures to a large extent, the social, the political and the economic prosperity of each country. In other words, the spatial-temporal processes of change engendered by globalization transform inter-human relationships, by linking and expanding economic activities across regions and continents. In this context, the Romanian economy is determined by decisions made by large multinational firms, which have an impact on their integration in the international production system. Trans-border flows of foreign direct investments contribute to technology transfer, to the increase of productivity for a better use of the capital, to the export growth and the quality of life. Direct foreign investments in Romania have contributed to the improvement of the country’s rating and its economic performances. Technology transfers made by multinational firms generated positive externalities (spillovers) through the reduction of the productivity gap, the technical assistance and the training of qualified personnel and managers.

Suggested Citation

  • Bianca Maria LUDOSEAN (STOICIU), 2012. "Recent trends in foreign direct investments in Romania," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(14), pages 131-142, December.
  • Handle: RePEc:aio:fpvfcf:v:1:y:2012:i:14:p:131-142
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    More about this item

    Keywords

    foreign direct investments; globalization; productivity;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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