ANALYSIS OF THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH – CASE OF ROMANIA
ANALYSIS OF THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH – CASE OF ROMANIA

Summary/Abstract: FDI are appreciated as an important catalyst in the host country economy due to their positive externalities they generate through fixed capital accumulation, stimulating the development of organizations, technological transfer and exerting a strong impact on equilibration of the balance of payments. The aim of the paper is to study the dynamic of the foreign flows in Romania and to examine the relationship between FDI flows and economic growth using SPSS. The results of the analysis emphasize the positive, direct and strong correlation between the variables. Further analysis can be developed by including other variables in the econometric study like trade, human capital or by expanding it to a time series analysis using other techniques.

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