Evaluation of Impact of the Foreign Direct Investment on the sectors’ added value in Romania
Evaluation of Impact of the Foreign Direct Investment on the sectors’ added value in Romania
Author(s): Mirel-Daniel SimionescuSubject(s): Economy, National Economy, Financial Markets
Published by: Univerzitni servis s.r.o.
Keywords: FDI; added value; sector;panel data
Summary/Abstract: Considering the unequal effects of FDI (foreign direct investment) on the gross added value of various sectors, the aim of this paper is to evaluate the contribution of the FDI to the Romanian sectors output in the period 2008-2016 that includes the economic recession generated by world economic crisis. A panel data approach for Romanian main sectors that attracted FDI was used. The main results of the fixed-effect models suggested a negative impact of FDI on the added value of the sectors in the period 2008-2016. This tendency might be explained by the massive profits repatriation of the multinational companies in the period of economic recession.
Journal: International Economics Letters
- Issue Year: 6/2017
- Issue No: 1
- Page Range: 26-43
- Page Count: 17
- Language: English
