Effects of European Economic Integration on Foreign Direct Investment: The Case of Romania

• Autorzy: Mihaela Simionescu
• Języki publikacji: EN

Abstrakty

EN

In the context of recent debates about the real benefits of European economic integration, the aim of this paper is to assess the impact of the EU membership on FDI in Romania (bilateral FDI and FDI inflows). The Heckman selection models estimated for the period 2005-2016 show that Romania attracted more FDI and grew bilateral FDI in this period due to the EU membership. The separate models for 2005-2006 show that Romania did not attract more FDI from the EU countries as compared to non-EU countries. Since 2007, the EU membership had a strong and positive impact on FDI in Romania. However, countries with more exports are more likely to invest in Romania suggesting that foreign companies with lower productivity chose Romania as a destination country. However, other economists might argue that this result should be mostly due to the balance of trade (exports constitute external financing). (original abstract)

Słowa kluczowe

EN

Foreign investment; Direct investments; Gross domestic product (GDP); Export; Heckman model (heckit model)

PL

Inwestycje zagraniczne; Inwestycje bezpośrednie; Produkt krajowy brutto (PKB); Eksport; Model Heckmana

• Czasopismo: Economics & Sociology
• Rocznik: 2018
• Tom: 11
• Numer: nr 4
• Strony: 96--105

Twórcy

autor

Mihaela Simionescu

• Romanian Academy, Romania

Bibliografia

• Altomonte, C. (2007). Regional economic integration and the location of multinational firms. Review of World Economics, 143(2), 277-305.
• Barrell, R., & Willem te Velde, D. (2002). European integration and manufactures import demand: an empirical investigation of ten European countries. German Economic Review, 3(3), 263-293.
• Barrell, R., FitzGerald, J., & Riley, R. (2007). EU Enlargement and Migration: Assessing the Macroeconomic Impacts, National Institute for Economic and Social Research Discussion Paper No. 292 (London).
• Bellak, C., & Narula, R. (2008). EU enlargement and consequences for FDI assisted industrial development (No. em-dp2008-69). Henley Business School, Reading University.
• Benito, G. R., Grøgaard, B., & Narula, R. (2003). Environmental influences on MNE subsidiary roles: economic integration and the Nordic countries. Journal of International Business Studies, 34(5), 443-456.
• Bevan, A. A., & Estrin, S. (2004). The determinants of foreign direct investment into European transition economies. Journal of comparative economics, 32(4), 775-787.
• Bitzenis, A., & Vlachos, V. A. (2013). Bulgaria's inward FDI and EU accession. Journal of East-West Business, 19(3), 222-236.
• Blomstrom, M., & Kokko, A. (1997). Regional integration and foreign direct investment (No. w6019). National Bureau of Economic Research.
• Brenton, P., Di Mauro, F., & Lücke, M. (1999). Economic integration and FDI: An empirical analysis of foreign investment in the EU and in Central and Eastern Europe. Empirica, 26(2), 95-121.
• Brenton, P., Di Mauro, F., & Lücke, M. (1999). Economic integration and FDI: An empirical analysis of foreign investment in the EU and in Central and Eastern Europe. Empirica, 26(2), 95-121.
• Bruno, R., Campos, N., Estrin, S., & Tian, M. (2016). Technical Appendix to 'The impact of Brexit on foreign investment in the UK'Gravitating towards Europe: an econometric analysis of the FDI effects of EU membership.
• Campos, N., & Coricelli, F. (2015). Some unpleasant Brexit econometrics. VoxEU. org.
• Chudnovsky, D., & López, A. (2001). La inversión extranjera directa en el MERCOSUR: un análisis comparativo. in Daniel Chudnovsky, ed., El Boom de Inversión Directa en el Mercosur (Madrid: Siglo XXI Editoria Iberoamericana), pp. 1-50.
• Clemens, M. A., & Williamson, J. G. (2004). Why did the tariff-growth correlation change after 1950?. Journal of Economic Growth, 9(1), 5-46.
• Delevic, U., & Heim, I. (2017). Institutions in transition: is the EU integration process relevant for inward FDI in transition European economies?. Eurasian Journal of Economics and Finance, 5(1), 16-32.
• Dunning, J. H. (1997). The European internal market programme and inbound foreign direct investment. JCMS: Journal of Common Market Studies, 35(2), 189-223.
• Feils, D. J., & Rahman, M. (2008). Regional economic integration and foreign direct investment: The case of NAFTA. Management International Review, 48(2), 147-163.
• Gao, T. (2005). Foreign direct investment and growth under economic integration. Journal of international economics, 67(1), 157-174.
• Gurbanov, R., Bilan, Y., & Strielkowski, W. (2015). Economic advantages and disadvantages of Turkish EU accession. Montenegrin Journal of Economics, 11(2), 7-30.
• Heckman, J. J. (1978, April). Simple statistical models for discrete panel data developed and applied to test the hypothesis of true state dependence against the hypothesis of spurious state dependence. In Annales de l'INSEE (pp. 227-269). Institut national de la statistique et des études économiques.
• Helpman, E., Melitz, M. J., & Yeaple, S. R. (2004). Export versus FDI with heterogeneous firms. American economic review, 94(1), 300-316.
• Levy-Yeyati, E. L., Stein, E., & Daude, C. (2003). Regional Integration and the Location of FDI. Inter-American Development Bank, mimeo.
• Pain, N. (1997). Continental drift: European integration and the location of UK foreign direct investment. The Manchester School, 65(S), 94-117.
• Pain, N., & Lansbury, M. (1997). Regional economic integration and foreign direct investment: the case of German investment in Europe. National Institute Economic Review, 160(1), 87-99.
• Rădulescu, M., & Jianu, E. (2011). FDIs in Spain after its EU accession. Spanish investments in Romania and how can be used Spanish experience for Romania's development. Annals of the University of Petrosani Economics, 11(2), 233-256.
• Simionescu, M. (2016). The impact of BREXIT on the foreign direct investment in the United Kingdom. Bulgarian Economic Papers, 7, 1-18.
• Simionescu, M. (2018). The impact of Brexit on the UK inwards FDI. Economics, Management and Sustainability, 3(1), 6-20. doi:10.14254/jems.2018.3-1.1
• Simionescu, M., Bilan, Y., Smrčka, L., & Vincúrová, Z. (2017). The effects of European economic integration and the impact of brexit on the UK immigrants from the CEE countries. E+ M Ekonomie a Management. 20(1), 29-47.
• Simionescu, M., Ciuiu, D., Bilan, Y., & Strielkowski, W. (2016). GDP and net migration in some eastern and south-eastern countries of Europe. A panel data and Bayesian approach. Montenegrin Journal of Economics, 12(2), 161-175
• Stošić, I., Nikolić, D., & Đukić, M. (2011). Attractiveness of Serbia for foreign direct investments: Tendencies, obstacles and perspectives, 47-60. Available online at: http://ebooks.ien.bg.ac.rs/219/1/is_2011_01.pdf .
• Straathof, B., Linders, G. J., Lejour, A., & Jan, M. Ã. (2008). The internal market and the Dutch economy: Implications for trade and economic growth (No. 168). CPB Netherlands Bureau for Economic Policy Analysis.
• Te Velde, D. W. (2017). Investment-related provisions in regional trade agreements. In Regional Integration and Poverty (pp. 103-164). Routledge.
• UNCTAD (2003). World Investment Report 2003: FDI Policies for Development: National and International Perspectives (New York and Geneva: United Nations).
• UNCTAD. (1996). World Investment Report 1996: Investment, Trade and International Policy Arrangements. Foreign Trade Review, 31(3), 85-109.

Identyfikatory

DOI

10.14254/2071789X.2018/11-4/6