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Foreign Direct Investments And The National Absorption Capacity

Author

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  • Steliana SANDU

    () (Institute of National Economy)

Abstract

Positive externalities that might appear as a result of foreign direct investments cannot be internalised by national companies in the absence of a critical mass of the absorption capacity at company level, and at the level of the national economy. The present study makes reference to four categories of multiplication effects that FDI might have on companies from the host country, the achievement of which is conditioned by their absorption capacity.

Suggested Citation

  • Steliana SANDU, 2005. "Foreign Direct Investments And The National Absorption Capacity," Romanian Journal of Economics, Institute of National Economy, vol. 21(2(30)), pages 168-175, December.
  • Handle: RePEc:ine:journl:tome:21:y:2005(xv):i:2(30):p:168-175
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    More about this item

    Keywords

    FDI; R&D potential; externalities; technological capacity;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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