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Outward FDI and the Investment Development Path in Romania

Author

Listed:
  • SIMONA GABRIELA MASCA

    (“Babes-Bolyai” University, Faculty of Economics and Business Administration, Finance Department)

  • VIORELA LIGIA VAIDEAN

    (“Babes-Bolyai” University, Faculty of Economics and Business Administration, Finance Department)

Abstract

Our study characterizes the outward FDI phenomenon in Romania in the light of Dunning’s Investment Development Path theory, based on the relationship between a country’s development level and its net international investment position, that has previously been applied to most CEE countries except for ours. A series of indicators are used, concluding that, nowadays, Romania is situated in the second stage of IDP. More, we found that the IDP paradigm is generally applicable to Romania; the specific feature consists in bigger growth rates of FDI inflows than of GDP in the first stages of IDP. Some policy implications are drawn.

Suggested Citation

  • Simona Gabriela Masca & Viorela Ligia Vaidean, 2010. "Outward FDI and the Investment Development Path in Romania," Romanian Journal of Economics, Institute of National Economy, vol. 31(2(40)), pages 49-64, December.
    • Handle: RePEc:ine:journl:v:2:y:2010:i:40:p:49-64
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    References listed on IDEAS

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    1. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
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    Cited by:

    1. Yanfeng Liu & Xue Li & Xiaonan Zhu & Min-Kyu Lee & Po-Lin Lai, 2023. "The theoretical systems of OFDI location determinants in global north and global south economies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    2. Andreff, Wladimir & Andreff, Madeleine, 2017. "Multinational companies from transition economies and their outward foreign direct investment," Russian Journal of Economics, Elsevier, vol. 3(4), pages 445-474.
    3. Damijan, Jože & Kostevc, Crt & Rojec, Matija, 2014. "Outward FDI and company performance in CEECs," Working Paper Series in Economics and Institutions of Innovation 381, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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    More about this item

    Keywords

    multinationals; outward FDI; international investment position; IDP theory; descriptive analyses;
    All these keywords.

    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
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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