FOREIGN DIRECT INVESTMENTS IN ROMANIA

Foreign direct investment is defined as an investment involving a relationship on long term and reflects the interest and long-term control of a resident entity in an economy on an economic entity residing in another economy. Regarding the obvious advantages brought by the Foreign Direct Investments, such as economic development, technological transfer, new jobs creations, etc, it is important to analyze the Foreign Direct Investments flow in our country. The evidence is showing that the net flow of the FDI has reached his peak of the last six years. Considering the main types of FDI, it was registered that, like greenfield and mergers and acquisitions, tend to be low. But, the flow of FDI for business development has registered high figures and became the most important component. The main sectors that were able to attract the FDI flow were trading, financial sectors, industry of manufacturing goods, petrochemical sector, machinery and equipment, electronics and IT sector. Also, the income generated by the FDI flow registered changes but not so important.