DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN ROMANIA: A QUANTITATIVE APPROACH
DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN ROMANIA: A QUANTITATIVE APPROACH
Author(s): Calcedonia Enache, Fernando MerinoSubject(s): Economy
Published by: EDITURA ASE
Keywords: foreign direct investment; economic growth; vector autoregressive model; Sims-Bernanke decomposition; Granger causality test
Summary/Abstract: 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.
Journal: Amfiteatru Economic
- Issue Year: 19/2017
- Issue No: 44
- Page Range: 275-287
- Page Count: 13
- Language: English, Romanian