Foreign Direct Investments – An Essential Factor for Economic Growth in Transition Economies
Foreign Direct Investments – An Essential Factor for Economic Growth in Transition Economies
Author(s): Carmen BogheanSubject(s): National Economy, International relations/trade, Economic development, Financial Markets
Published by: Fundatia Română pentru Inteligenta Afacerii
Keywords: Foreign direct investments; Economic growth; Financial system; Transition economies;
Summary/Abstract: The purpose of this analysis is to analyse the connection between foreign direct investments and economic growth in transition economies during a period of increased integration of financial systems in the global financial system. The research focuses on the relationship between foreign direct investments and economic growth during 1970-2013, by means of methods such as the graphic, the regression and the correlation ones. The research findings show that there is a direct and strong connection between the inward financial flows of foreign direct investments and the GDP during the period under analysis in transition economies. In transition economies, a high inward flow of foreign direct investments leads to an increase of the Gross Domestic Product per capita, while a positive development of the standard of living will attract new inward FDI flows, since transition economies are seen as attractive recipients/hosts for foreign direct investments.
Journal: SEA – Practical Application of Science
- Issue Year: III/2015
- Issue No: 08
- Page Range: 141-147
- Page Count: 7
- Language: English