Scholarly record

FOREIGN DIRECT INVESTMENT IN THE BORDER AREA. SOME CONSIDERATIONS ABOUT THE WESTERN BORDER OF ROMANIA

Fl. M. Bocoi, I. Horga

Abstract

Foreign direct investments (FDIs) are a very important part of our society. They create links and facilitate the transfer of technology and know-how between economies. However, the influences and effects of foreign direct investments on the recipient country are difficult to predict, depending on the characteristics of FDI flows and the concrete economic, social and political conditions in the host country. FDIs in the border area, in this case western border of Romania, have some particular features because of the role of border in attracting this type of investment. As a report of the Council of Foreign Investors and the Bucharest Academy of Economic Studies (May 2017) shows, government policies of decision-makers such as the implementation of active measures and guidance of foreign direct investments, but also actions to modernize infrastructure, to increase the level of training of the workforce and the improvement of technological capabilities are vital. According to the National Bank of Romania (NBR), as at 31 December 2018, 63% of the balance of foreign direct investment is made in greenfield enterprises, which indicates the long-term impact of this type of investment on the economy. According to the NBR Reports on FDIs in Romania in 2007 and in 2016, the West region had at the end of 2007 a FDI value of 2.35 billion euros and at the end of 2016 a value of 5.6 billion euros; thus, at the end of 2016, it ranks third in terms of the presence of foreign investors, with a percentage of 8% in total FDIs. The North-West region had a FDI value of 1.9 billion euros at the end of 2007, while at the end of 2016 it had a value of 4.1 billion euros.

Publication details

Back to publication list