FDI and Economic Growth, the Case of Romania

The importance and the effects of FDI attracted, rightly, the interest of all the states and resulted in a fierce competition for the foreign capital. The impact of FDI inflows on the host country can be traced to the macro and microeconomic level. The impact of FDI on host economies, is often positive, manifesting differently depending on the area and the region of the foreign investment. The impact of foreign investment on host countries depends largely on the quality and quantity of the inflows. In the Romanian economy, until 2000, the foreign direct investment level has been reduced. Apparently Romania attracted less FDI inflows than other emerging economies or EU economies. This paper aims to research if in the Romanian economy, there is a link between FDI inflows and GDP growth, more if the FDI have a positive impact on economic growth namely GDP growth.