FDI and Regional Disparities Growth in Romania

Abstract

Because of the multiple benefits they have on the receiving economy, FDI causes a true global competition. In the current economic climate, the foreign direct investments are a good alternative source for financing the Romanian economy. This paper analyse the FDI stock, inequality and growth in Romanian economy by regions. By analysing the evolution of FDI stock and GDP per capita in Romania during 2003-2011, the present paper try to highlight some aspects related to the regional development and FDI relation from the viewpoint of the sustainable development in Romania's economy. The paper provides a new perspective on the issue of why FDI are attracted or not by Romanian regions. The study is based on the hypothesis that FDI inflows can influence the regional development and economic-social welfare in Romania. In this perspective, the final objective of the paper is the answer to the following question: “are FDI a factor of regional disparities growth or one of diminution?”.