EVOLUTION AND PERSPECTIVES OF FOREIGN DIRECT INVESTMENT IN ROMANIA

FDI is a key factor for economic modernization through changes in production patterns, technology transfer and greater competition pressures. In the latest years, Romania has benefited from important FDI flows, mainly due to the privatization process, but also due to the advantages of cheap labour force and a big internal market. The issue to be addressed further regards the possibility of improving its attractiveness as host country for FDI in sectors generating higher added value and this refers to assuring a functional business environment, qualified labour force and a modern infrastructure. Key words: foreign direct investment, competitivity, business environment, qualified labour force From the beginning of the transition period, Romania has engaged in a rapid opening-up process of its economy, which has resulted, among others, in attracting significant foreign direct investment (FDI). The presence of foreign firms has grown significantly, which is a sign of increasing economic integration. FDI is a key factor in the process of economic modernization, complementing domestic sources of funding and contributing to raising productivity growth through changes in the sectoral composition of production, technology transfer and greater competition pressures. Foreign investment, bringing technology and capital creates new jobs and contributes to improving the quality of work force. In order to attract FDI, it is necessary to address the challenge of supporting the competitivity as host country