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Three International Statistical Indicators And Their Factorial Impact On The Modelling Of Foreign Investments In Romania

Author

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  • Gheorghe Savoiu

    (Pitesti University)

  • Simina Brostescu

    (Craiova University)

Abstract

The article provides a creative investigation into FDI, based on three major international statistical indicators of major signaling nature. Among the indicators of the country risk rating, Euromoney (ECR) was selected after successive evaluations. The second relevant statistical indicator, which was selected and validated, was the Corruption Perceptions Index (CPI) created by Transparency International, and the last one was the Economic Freedom Index (EFI), conducted by the Heritage Foundation. The article identifies the factorial impact of those three international statistical indicators in modelling the FDI volume, referring to these specific issues in the concrete case of Romania. The introduction presents the concept of investment alongside a series of international investment typologies. A section devoted to specialized literature lists the international investment theories and a number of derived modelling factors. In a necessary and succinct methodological section, the databases are also presented that were used as sources in the paper, and the discussion and analysis of the results, starting from a matrix of correlation of the development of FDI, facilitates the realization of a small number of more or less performing models and solutions. Finally, it was found that there is at least one model capable of providing a realistic FDI prognosis, starting from three international statistical indicators that give a sufficiently clear outline of a national economy, and parameterization temporally validates the predictive quality of the specific ISD model.

Suggested Citation

  • Gheorghe Savoiu & Simina Brostescu, 2017. "Three International Statistical Indicators And Their Factorial Impact On The Modelling Of Foreign Investments In Romania," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(8), pages 174-188, August.
    • Handle: RePEc:rsr:supplm:v:65:y:2017:i:8:p:174-188
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    References listed on IDEAS

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    More about this item

    Keywords

    statistical indicator; factorial impact; correlation matrix; modelling; foreign direct investment (FDI);
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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