Multi-dimensional Impact of Foreign Direct Investments on the Host-economy, Determinants and Effects, and their Contribution to Economic Growth in Romania

AbstractThere is a broad consensus in the specialised literature regarding the multi-dimensional impact of FDI on the economic growth in the host-country, this representing an efficient way of re-specialising the economy and increasing the export potential, and of stimulating economic growth and development and, finally, of improved welfare. The subsidiaries of transnational companies generate new production capacities and realised both consumer goods, but also high standard capital, thus being technological leaders on their market segments, and having a significant impact at occupational level. Moreover, they represent an important means of channelling technology transfer. We chose as period for our analysis the time between 1992 and 2012 as it provided for the opportunity to estimate an econometric equation by means of which we highlighted the weight of the foreign direct investment flow in GDP as one of the determinants of the economic growth rate, in accordance also with the opinion of other authors