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How Does The Democracy Affects The Multinational Corporations Presence? The Case Of Fdi In Romania


  • Laura Brancu

    (Assistant Professor of Comparative Management at the Universitatea de Vest in Timi┼čoara)


The foreign direct investment (FDI) towards the Central and Eastern European Countries (CEECs) opens us, in the current context of the globalization, a particularly rich field of research. Closed before 1990 for the foreign capital entries, the CEECs now attracts important volumes of FDI. Many governments from these countries offer important incentives to attract more FDI, motivated by the positive effects expected to rise on the local economy. This paper will concentrate on the Romanian case. There is large body of the literature who emphasize that institutional factors, like democracy, the political stability, the rule of law and the lack of corruption are important elements for foreign investors. By exploiting the results of our survey on the French firms installed in Romania, this paper try to analyze the role of these institutional factors for attracting the foreign firms in Romania.

Suggested Citation

  • Laura Brancu, 2009. "How Does The Democracy Affects The Multinational Corporations Presence? The Case Of Fdi In Romania," Romanian Economic Business Review, Romanian-American University, vol. 4(4), pages 141-156, Winter.
  • Handle: RePEc:rau:journl:v:4:y:2009:i:4:p:141-156

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