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The increase of the foreign direct investments’ volume intercepted by a country determines the increase of the trade balance deficit, due to the imports of technology and of know-how realized by the multinationals’ subsidiaries in the host countries, to which are added important profits repatriated proceeded from the exploitation of the economical objectives. The paper proposes to study the effects that the foreign direct investments have upon the imports and the exports of the host countries, concretized in analyses of correlation and regression basing on the data regarding Romania

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  • Liliana Bratu

    (University “Stefan cel Mare” Faculty of Economical Science and Public Admininstration Suceava, România)

Abstract

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Suggested Citation

  • Liliana Bratu, 2007. "The increase of the foreign direct investments’ volume intercepted by a country determines the increase of the trade balance deficit, due to the imports of technology and of know-how realized by the m," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(9), pages 155-164, November.
  • Handle: RePEc:aio:rteyej:v:1:y:2007:i:9:p:155-164
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    File URL: http://feaa.ucv.ro/RTE/009-19.pdf
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    References listed on IDEAS

    as
    1. Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 589-630, September.
    2. Claire MAINGUY, 2004. "L'Impact Des Investissements Directs Étrangers Sur Les Économies En Développement," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 20, pages 65-89.
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    More about this item

    Keywords

    foreign direct investment; foreign trade; exports; imports; trade balance;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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