Evolution and Impact FDI in Romania, in the Context of Past and the Present Macroeconomic

• Author: Cornelia Elena Tureac - Luminita Maria Filip - Bogdan Constantin Andronic
• Position: Associate Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania - Assistant Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania - Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania
• Pages: 619-625

Performance and Risks in the European Economy

619

Evolution and Impact FDI in Romania,

in the Context of Past and the Present Macroeconomic



Cornelia Elena Tureac

1

, Luminita-Maria Filip

2

, Bogdan Constantin Andronic

3

Abstract: In the article we want to emphasiz e the evolution of FDI in Romania during 2008 – 2010. Through

the achieved foreign direct investments, the companies are following to obtain the largest possible gain from

the capitalization of the own “advantages”. As a result, these internalize the external markets, generating

internal flows (within their organizational structures) of goods, services, knowledge, etc. So, the companies

make FDI when they have “benefits” that can be used with greater profitability outside the national borders,

which implies, that it was reached a certain level of economic development of the source countries. The

research methodology is found in using the literature of specialty, statistical data and graphs. The decision to

invest in a particular country is based on a thorough analysis of the local factors (advantages of the host

country), correlated with the necess ities of profitability of the economic agents and the size (intensity) of risk

associated with the operation in a foreign environment. In conclusion the FDI, in the first then moths of 2010,

totaled 2.145 billion euros, in decrease with 26% compared to the similar period of the last year when there

was registered a level of 2.9 billion euros.

Keywords: investment; evolution; economy; profit; flow

JEL Classification: E6; H3; O1

1. Introduction

Through the foreign direct investments made, the companies aim to obtain the largest possible gain

from the capitalization of the own: advantages. As a result, they internalize the external markets,

generating internal flows (within their organizational structures) of goods, services, knowledge, etc.

So, the companies make FDI when they have “advantages” that can be capitalized with the greater

profitability outside the national borders, which implies, that it was reached a certain level of

economic development of the sources countries. The foreign investments are the component of

international flows which reflect the purpose of an entity (individual or legal person) resident in a

country, to obtain an interest (on short or long term) in a resident company in other country. Unlike the

foreign portfolio investment, the foreign direct investment assumes the transfer by the issuing agent of

control and decision on the receptor’s activity.

A possible definition would be that the foreign direct investment is a category of t he international

investments that reflects the purpose of a resident entity in a country (direct investor) to obtain a

lasting interest in a resident company in another country (direct investment). (Bal & Dumitrescu,

2006)

1

Associate Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd,

Galati, Romania, tel: +40372 361 102, fax: +40372 361 290, e-mail: tureaccornelia@univ-danubius.ro.

2

Assistant Professor, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd,

Galati, Romania, tel: +40372 361 102, fax: +40372 361 290, Corresponding author: mariacraciun@univ-danubius.ro.

3

Professor, PhD, Danubius University of Galati, Faculty of Economic Sc iences, Romania, Address: 3 Galati Bl vd, Galati,

Romania, tel: +40372 361 102, fax: +40372 361 290, e-mail: bogdanandronic@univ-danubius.ro.