FOREIGN INVESTMENTS – A WAY OF JOB CREATION IN ROMANIA DURING THE CRISIS PERIOD
FOREIGN INVESTMENTS – A WAY OF JOB CREATION IN ROMANIA DURING THE CRISIS PERIOD

Summary/Abstract: One major challenge for European developing countries is to remain attractive for foreign direct investments (FDIs) during the crisis. They included tax relief in their economic stimulus packages. However, national efforts to maintain and attract foreign investments must not result in lower social and environmental standards or in offering unsustainable financial or fiscal advantages. Therefore, measures could also include new priorities in investments promotion with a stronger focus on investor aftercare and policy advocacy, accelerating a trend that could already be observed before the crisis. The aim of this paper is to focus on the benefits offered by the Romanian investment climate, but to present also the risks of Romania for investors and the impact that FDIs have on the development of the domestic labor market. In the current economic context, governmental incentives are not a strategy in the long-run nor for Romania or for other Central and Eastern European (CEE) countries. That is why Romania should focus mainly of the non-financial factors that impact on FDIs to improve its investment climate and to manage its risks properly.

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