Foreign Direct Investments, a key resource for the future
, 25th of May, 2017
The Bucharest University of Economic Studies (ASE) and the Foreign Investors Council (FIC) launched today a study entitled Foreign Direct Investments: their evolution and importance for Romania. This is the first step in a larger joint cooperation endeavour of FIC and ASE. The Romanian economy is growing again following the economic crisis and, in this context, access to sources of financing for the economy becomes a competitive advantage. This is why we have undertaken this effort to analyse the evolution of foreign direct investments (FDIs) in Romania and their impact on the economy. Good future policies regarding investments need to be backed up by solid data.
This study presents the evolution of FDIs in Romania, how attractive the country is in this respect from a regional perspective and a short analysis of the FDIs’ impact on the Romanian economy. The study opens a series of future reports that will look in detail in other areas of public interest.
The main conclusion of the study is that FDIs played a decisive role in the past 20 years and have helped the Romanian economy in its transition to functioning free markets. Considering the large investment needs of Romania, it is likely that foreign investors will continue to play a significant role in the future. Foreign companies have contributed significantly to modernizing the Romanian economy and integrating it in international production chains as a results of capital infusions and transfers of know-how and technology.
Some conclusions of the study that are worth pointing out:
- Foreign companies employ a third of the work force in the private sector in Romania;
- Foreign companies are responsible for 70% of Romanian exports;
- Romania has the lowest stock of FDI/capita in the region
- A lot of the FDI in Romania came as equity
- Almost half of the Romanian FDI Stock has flowed in industry
- Foreign investors contributed significantly to increasing the productivity of the Romanian economy
This study has a solid scientific basis and can only underline that FDI had a significant and undeniable contribution to the Romanian economy. Going forward Romania has to continue to attract FDI by increasing the absorption capacity of the economy, by developing long-term strategies and through a discourse that takes into account the realities of the Romanian and European economies.
The study and the report can be downloaded from the FIC website (www.fic.ro).