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Impact Of Foreign Investments On The Balance Of Payments, Trade Deficit And Exchange Rate Evolution In Romania

Author

Listed:
  • PIRLOGEANU Dan

    (Alexandru Ioan Cuza University of Iasi, Iasi, Romania)

  • Vlad BULAU

    (Alexandru Ioan Cuza University of Iasi, Iasi, Romania)

Abstract

Foreign investment inflows can both positively and negatively affect a country's balance of payments. The balance of payments reflects economic and financial transactions, which relate to goods, services, income, transfers and receivables, and financial obligations with external partners. Vertical foreign investments speculated on the production of part of the final product will impose exports, and horizontal ones, in which the business model of the home market is imitated, will increase imports.

Suggested Citation

  • PIRLOGEANU Dan & Vlad BULAU, 2018. "Impact Of Foreign Investments On The Balance Of Payments, Trade Deficit And Exchange Rate Evolution In Romania," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 70(2), pages 120-126, August.
    • Handle: RePEc:blg:reveco:v:70:y:2018:i:2:p:120-126
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