Foreign direct investment in Romania: Evolutions during the 2020–2023 multiple global shocks

This study examines the foreign direct investment (FDI) dynamics in Romania during the challenging 2020–2023 period characterized by multiple global shocks– the COVID-19 pandemic, disruptions of supply chains, and geopolitical instability. Despite these adverse conditions, Romania demonstrated remarkable resilience in attracting and retaining foreign capital, with FDI flows reaching record levels in 2022. The research combines macroeconomic analysis of national FDI trends with a comparative case study of two prominent multinational companies in the fast-moving consumer goods sector: Procter & Gamble and Unilever Romania. Through examination of financial performance indicators and strategic positioning, this study reveals how these companies have navigated market volatility while maintaining substantial contributions to Romania’s economy. The findings highlight three critical factors that influence Romania’s FDI landscape: institutional quality and regulatory stability, strategic government policies beyond tax incentives, and the competitive advantages stemming from European Union (EU) membership and geographical positioning. This research contributes to the understanding of FDI resilience during economic turbulence and provides insights for policymakers seeking to enhance Romania’s investment attractiveness in an increasingly competitive global environment. The study concludes that Romania’s ability to sustain FDI growth will depend on addressing structural challenges while leveraging its strategic advantages through coordinated, forward-looking policies.