Foreign direct investment vs domestic investment across the European Union. Case study: Romania
Foreign direct investment vs domestic investment across the European Union. Case study: Romania

Summary/Abstract: The paper deals with the idea that investment process is important not only for the economicgrowth, but for the global integration. There is a powerful connection between FDI and domestic investments.As a result, the analysis is focused on FDI flows in EU28 and Euro area. The comparative analysis isfollowed by regression, in order to point out the disparities between Member States and their trend. Theaverage value of inward and outward FDI flows is analysed using FDI intensity. A distinct part of the paper isfocused on domestic investment process and analyses total investment, investment in construction andinvestment in equipment. The analysis is supported by the latest official statistical data, pertinent diagramsand tables. The main conclusion of the paper is that the economic crisis in Europe led to a decrease in FDIand domestic investment flows.

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