Regional disparities in Romania – an analysis on the foreign direct investments efficiency

  • Voicilas Dan Marius, PhD Romanian Academy – Institute of Agricultural Economics, Associate professor URSA
  • Ljubiša Todorović, MSc University for business studies Banja Luka, Faculty for business and finance Bijeljina
  • Radovan Damnjanović, MSc Odsek za planiranje, programiranje, budžetiranje i izvršenje u Generalštabu Vojske Srbije, Beograd

Abstract

By this study, we intend to analyze the evolution of the Romanian regions during transition under the influence of the foreign direct investment (FDI) inflows, using the efficiency calculations of the macroeconomic indicators. The methodology developed by Romanu & Vasilescu (1993) was chosen because it reflects, in a direct way, the contribution of the investments on the evolution of the macroeconomic indicators and in which way the FDI influenced their evolution. The ratio between the variation of the indicators of effort and effects shows us the efficiency and the progress of an effect indicator for every additional value of effort. We consider as effort indicator the FDI level and effect indicators the gross domestic product (GDP), gross value added (GVA) and fixed gross capital formation (FGCF).


If we have in view these premises, the evolution of the Romanian economic development regions is characterized by huge disparities. The most obvious is between Bucharest and the rest of the regions. In the same time, FDI had strong positive influences on the macroeconomic indicators and the activity was efficient only after 2000.

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References

1. Romanu, I. and Vasilescu, I, 1993, Efcienta economica a investitiilor si a capitalului fx, Ed, Didactica si Pedagigica, Bucuresti, Romania, 203 pp;
2. Voicilas, D.M., 2005. Special study, Foreign direct investment in South-East Europe – overview on Romania and Bulgaria. In: Chojna, J. (Supervisor), Foreign Investments in Poland – Annual Report. ISSN 1231-1111, Foreign Trade Research Institute, Warsaw, Poland, 208-229;
3. Voicilas, D.M., 2006. FDI' Concentration - a territorial and sectoral analysis in Romania. In: Chojna, J. (Supervisor), Foreign Investments in Poland – Annual Report. Foreign Trade Research Institute, Warsaw, Poland, in press;
Published
2010-12-03
How to Cite
DAN MARIUS, Voicilas; TODOROVIĆ, Ljubiša; DAMNJANOVIĆ, Radovan. Regional disparities in Romania – an analysis on the foreign direct investments efficiency. Economics of Agriculture, [S.l.], v. 57, n. Spec.num.2, p. 356-365, dec. 2010. ISSN 2334-8453. Available at: <http://ea.bg.ac.rs/index.php/EA/article/view/1013>. Date accessed: 24 sep. 2020.