The Regional Disparities Of The Fdi In Romania
Following the collapse of communism, the countries of Central and Eastern Europe, have been forging strategies to attract foreign capital as a way of achieving sustained economic growth (Martin and Velăzquez, 2000). Foreign direct investment by multinational corporations plays an important role in the transformation of former centrally planned economies into vibrant market systems, since it provides an inflow of capital, management skills, and jobs, alongside increasing exports and transfer of technology. It is also perceived as one of the conditions paving the way for improving the competitiveness of the economy and enhancing the provision of goods and services for the domestic market. With the implementation of global and regional strategies by multinational corporations, the choice of location is becoming increasingly important, hence requiring a better understanding of the internationalization process and of the factors influencing the spatial distribution of FDI. There are substantial differences in economic performance across regions in virtually every nation. This suggests that many of the essential determinants of economic performance are to be found at the regional level (Porter, 2003, p.550). In this paper we shall make an analysis of regional disparities of the FDI in Romania using the data provided by the National Trade Register Office of Romania for the period 1991-2008 and National Institute of Statistics.
Volume (Year): 5 (2010)
Issue (Month): 4 (december)
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