Role Of Local Governments In Attracting Foreign Direct Investments: Case Study On Romania

Foreign direct investment plays a critical role in Romania's economic development and integration into EU value chains. However, attracting FDI at the county level remains a challenge due to infrastructure gaps, regulatory instability, and inconsistent investment support. This study examines how Romanian local governments facilitate FDI, identifying key incentives, barriers, and strategic alignment with EU priorities such as the Green Transition and Digitalization. Using a descriptive-qualitative approach, the research involved responses from 17 local administrations, highlighting regional disparities in FDI attraction strategies. Findings suggest that counties struggle with bureaucratic inefficiencies, labor shortages, and inadequate transport infrastructure, deterring potential investors. While local governments seek to enhance investment conditions through fiscal incentives, improved public services, and industrial park development, their efforts are often hindered by limited coordination with central authorities. The study underscores the need for a comprehensive "Made in Romania" strategy, stronger public-private collaboration, and targeted public investments to enhance competitiveness. It calls for further multi-stakeholder research to assess local FDI policies, streamline administrative processes, and align regional development strategies with EU industrial and economic policies. These findings provide insights for policymakers aiming to strengthen Romania s position within the European investment landscape.