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Impact Of The Foreign Direct Investment From The Manufacturing Sector On The Romanian Imports Of Intermediate Goods And Of Raw Materials

Author

Listed:
  • Ramona Dumitriu

    (“Dunarea de Jos” University of Galati, Romania)

  • Răzvan Ştefănescu

    (“Dunarea de Jos” University of Galati, Romania)

  • Costel Nistor

    (“Dunarea de Jos” University of Galati, Romania)

Abstract

Increasing exports by stimulating the foreign direct investment could be a solution to the problem of the persistent trade balance deficit of Romania. However, in such an attempt there have to be taken into consideration the potential effects of the foreign direct investment on some categories of imports. This paper explores the dynamic relation between the foreign direct investment from the manufacturing sector and the Romanian imports of intermediate goods and raw materials. We found causality linkages between the foreign direct investment and the imports of intermediate goods, meaning that Romanian branches of the multinational companies prefer to import such goods instead of producing or buying from the domestic markets. Instead, we failed to identify any causality between the foreign direct investment and the imports of raw materials.

Suggested Citation

  • Ramona Dumitriu & Răzvan Ştefănescu & Costel Nistor, 2010. "Impact Of The Foreign Direct Investment From The Manufacturing Sector On The Romanian Imports Of Intermediate Goods And Of Raw Materials," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 10(4), pages 87-96.
    • Handle: RePEc:pet:annals:v:10:y:2010:i:4:p:87-96
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    References listed on IDEAS

    as
    1. Penélope Pacheco‐López, 2005. "Foreign Direct Investment, Exports and Imports in Mexico," The World Economy, Wiley Blackwell, vol. 28(8), pages 1157-1172, August.
    2. repec:ecr:col031:4876 is not listed on IDEAS
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    More about this item

    Keywords

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    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

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