Theoretical and Applied Economics
No. 10 / 2012 (575)
A VAR analysis of the connection between FDI and economic growth in Romania
West University of Timișoara
Abstract. The impact of FDI on economic growth is neither homogeneous, nor completely clarified. Due to the accumulation of capital in the host economy, FDI is expected to encourage the incorporation of new inputs and technologies in the process of production. However, the impact of FDIon economic growth is not so shaped up in empirical studies. Accordingly, while some studies remarked a positive impact of FDI on economic growth, others showed a negative relationship between the two variables. In this article, we carried out an analysis of vector autoregressive type (VAR), so as to identify the relationship between FDI and economic growth in Romania between1991-2009. The main conclusion of our study is that the FDI volume does not initiate growth; and that economic growth is an important factor in terms of attracting FDI in Romania.
Contents
Use of fixed income products within a company's portfolio
An empiric approach of the FDI-taxation relationship in Romania
Public-private partnership role in increasing the quality of the health insurance services
The economic integration: concept and end of process
The long run relationship between foreign direct investments, exports, and gross domestic product: panel data implications
Spending Power and match attendance: is Romanian football a normal or an inferior good?
The readiness of employees for the future society. Case study
Transition to a green economy – a challenge and a solution for the world economy in multiple crisis context
A VAR analysis of the connection between FDI and economic growth in Romania
EU budget reform in the context of the current economic crisis
Technological innovation as a mean to increase economic competitiveness