Foreign Direct Investments in Romania
FOREIGN DIRECT INVESTMENT (FDI)
IN ROMANIA
- Definitions, theories, benefits.
Characteristics of econometric modeling
PhD. Senior Lecturer Gheorghe SĂVOIU
PhD Candidate Lecturer Suzana POPA
University of Pitesti
Abstract
This paper analyzes some characteristics of economic and econometric literature in the field of FDI after 1990, in Romania, as well as some specific issues in the process of practical modelling. A more detailed presentation of
John Harry Dunning’s eclectic theory and a simple presentation of the theory of de-investment complete the general theoretical presentation of FDI. A first problem after the definition, life cycle, similarities and differences between portfolio and direct foreign investment, after the benefits of FDI, is given by the outstanding dynamics and structure of FDI. Some characteristic features of the value oscillation and structural dynamics of gross capital formation
(GCF), gross capital fixed capital formation (GFCF) and gross domestic savings (GDS) in GDP are relevant for the specificity of the phenomenon of
FDI in Romania after 1990.
Key words: foreign direct investments (FDI), econometric model, foreign portfolio investments (FPI), matrix of correlations.
***
In the new century, which he have recently entered, the signification of FDI has grown steadily and rapidly as global importance (according to The
Economist, 2001, “FDI is globalisation in its most potent form”), on a par with an increase in the value and weight of that phenomenon, which has come to represent currently over 20% of the world GDP.
An international investment implies the existence of at least two economic agents, an issuing agent and a receiving agent, located in different national economic spaces, as well as an investment flow from the issuer to the recipient. The investment flows can be directed towards a receiving economy, or destination (inflow), conceptually representing investments, or can be generated by an issuing economy or
IN ROMANIA
- Definitions, theories, benefits.
Characteristics of econometric modeling
PhD. Senior Lecturer Gheorghe SĂVOIU
PhD Candidate Lecturer Suzana POPA
University of Pitesti
Abstract
This paper analyzes some characteristics of economic and econometric literature in the field of FDI after 1990, in Romania, as well as some specific issues in the process of practical modelling. A more detailed presentation of
John Harry Dunning’s eclectic theory and a simple presentation of the theory of de-investment complete the general theoretical presentation of FDI. A first problem after the definition, life cycle, similarities and differences between portfolio and direct foreign investment, after the benefits of FDI, is given by the outstanding dynamics and structure of FDI. Some characteristic features of the value oscillation and structural dynamics of gross capital formation
(GCF), gross capital fixed capital formation (GFCF) and gross domestic savings (GDS) in GDP are relevant for the specificity of the phenomenon of
FDI in Romania after 1990.
Key words: foreign direct investments (FDI), econometric model, foreign portfolio investments (FPI), matrix of correlations.
***
In the new century, which he have recently entered, the signification of FDI has grown steadily and rapidly as global importance (according to The
Economist, 2001, “FDI is globalisation in its most potent form”), on a par with an increase in the value and weight of that phenomenon, which has come to represent currently over 20% of the world GDP.
An international investment implies the existence of at least two economic agents, an issuing agent and a receiving agent, located in different national economic spaces, as well as an investment flow from the issuer to the recipient. The investment flows can be directed towards a receiving economy, or destination (inflow), conceptually representing investments, or can be generated by an issuing economy or