Some FDI Disparities within the EU Region
Internal Auditing & Risk Management, Anul VIII, Nr. 2(30), June 2013
378 Pages Posted: 19 Feb 2014
Date Written: June 30, 2013
It means at least performance and competitiveness taking part to a global activity for which political, economic and technological borders vanish as quickly. The foreign direct investments (FDI) define an economic strategy type that belongs to an entity either investing in a new plant or establishment, or purchasing an already existing assets lot that belong to another enterprise, i.e. non resident one. This entity does complete or replace its foreign trade activity by producing (often producing plus selling) goods and services in another country (called the host country) than the home one. It is neither financing, nor consumption facilities brought in by FDI, but productivity growth, technological modernization, the creation of an export capacity indispensable for a healthy growth potential and the creation of new jobs; furthermore, non-debt generating FDI is a key factor in improving the country’s external balance of payments (EBP). Last, but not least, FDI is equally accused of being chronically unequal all over, so completing a kind of ‘capitalist inequality’ for the today world. This is nonetheless for the today Europe, as well.
Keywords: foreign direct investments (FDI), economic growth
JEL Classification: E22, F23, O11
Suggested Citation: Suggested Citation