Determinants of Foreign Direct Investment in Romania: a Quantitative Approach
This study aims to examine the dynamic relationship between foreign direct investments (FDI) and economic growth, using the Structural Vector Autoregressive model, in the period 2007-2014. The results of the econometric model show that the trajectory of FDI has its own origins, with reduced influenc...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2017-02-01
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| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | http://www.amfiteatrueconomic.ro/temp/Article_2608.pdf |
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| Summary: | This study aims to examine the dynamic relationship between foreign direct investments (FDI) and economic growth, using the Structural Vector Autoregressive model, in the period 2007-2014. The results of the econometric model show that the trajectory of FDI has its own origins, with reduced influences from economic growth. Another important conclusion is that there is a unidirectional causal relationship from the economic growth towards FDI, more precisely the influence of FDI on economic growth does not have a systematic, anticipatory nature. These results were achieved in the condition that, in the analyzed period, the net inflows of FDI were influenced by the lack of certainty on the sustainable re-launching of the economic growth both domestically and internationally, the segmentation of the financial market, the domestic structural reforms. |
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| ISSN: | 1582-9146 2247-9104 |