Impact of the Foreign Direct Investment From the Manufacturing Sector on the Romanian Imports of Intermediate Goods and of Raw Materials

Annals of the University of Petroşani, Economics, 10(4), 2010, 87-96

10 Pages Posted: 14 Feb 2018

See all articles by Ramona Dumitriu

Ramona Dumitriu

University Dunarea De Jos Galati

Razvan Stefanescu

University Dunarea De Jos Galati

Costel Nistor

University Dunarea de Jos Galati

Date Written: October 28, 2010

Abstract

Increasing exports by stimulating the foreign direct investment could be a solution to the problem of the persistent trade balance deficit of Romania. However, in such an attempt there have to be taken into consideration the potential effects of the foreign direct investment on some categories of imports. This paper explores the dynamic relation between the foreign direct investment from the manufacturing sector and the Romanian imports of intermediate goods and raw materials. We found causality linkages between the foreign direct investment and the imports of intermediate goods, meaning that Romanian branches of the multinational companies prefer to import such goods instead of producing or buying from the domestic markets. Instead, we failed to identify any causality between the foreign direct investment and the imports of raw materials.

Keywords: Foreign Direct Investment, Imports, Causality, Cointegration, Romania

JEL Classification: F21, F23

Suggested Citation

Dumitriu, Ramona and Stefanescu, Razvan and Nistor, Costel, Impact of the Foreign Direct Investment From the Manufacturing Sector on the Romanian Imports of Intermediate Goods and of Raw Materials (October 28, 2010). Annals of the University of Petroşani, Economics, 10(4), 2010, 87-96. Available at SSRN: https://ssrn.com/abstract=3113686

Ramona Dumitriu (Contact Author)

University Dunarea De Jos Galati ( email )

Romania

Razvan Stefanescu

University Dunarea De Jos Galati ( email )

Str. Domnească, nr. 47
Galati, 800008
Romania

Costel Nistor

University Dunarea de Jos Galati ( email )

Galati, 800001
Romania

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