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Eyes on Romania: what to look when investing here?

Author

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  • Tatomir, Cristina F.
  • Popovici, Oana

Abstract

In this paper we identify a framework of the main macroeconomic indicators an investor must look when investing in a country, depending on his activity business sector. Using a qualitative method of research on the Romanian case in period of 2000-2010, we establish that a series of leading indicators, as Gross Domestic Product (GDP) growth rate, inflation rate and industrial production, are appropriate to get a brief snapshot of the economic outlook of a country. The following period, since 2011 to 2014, confirm our results. Beside the traditional indicators, we set as significant the degree of business cycles synchronization with the European Union (EU) in order to predict the next path of the Romanian economy. We use a structural divergence index for assessing the similarity of economic structure between Romania and EU. The results of this study confirm that Romania lags behind EU, offering the possibility to decide the next step of an investor’s business strategy.

Suggested Citation

  • Tatomir, Cristina F. & Popovici, Oana, 2011. "Eyes on Romania: what to look when investing here?," MPRA Paper 36140, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36140
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    File URL: https://mpra.ub.uni-muenchen.de/36140/1/MPRA_paper_36140.pdf
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    References listed on IDEAS

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    Cited by:

    1. Daniel Lipara & Marian Ionel, 2023. "Uncovering the Attractiveness of the Romanian Market: A Data-Driven Approach," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 267-276, December.

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    More about this item

    Keywords

    foreign direct investment; leading indicators; business cycles synchronization;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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