The Analysis of the Situation of Foreign Direct Investments in Romania

Foreign direct investments represent one of the ways of financing any economy. But like any source of financing, foreign direct investments have advantages and disadvantages. This article aims to analyze and present the developments in foreign direct investments in Romania, the fields and areas where they have been made, the structure of these capital flows, as well as the origin of these inflows of foreign direct investments. Also, the author intends to analyze the effects of FDI inflows on the Romanian economy in terms of foreign trade. The conclusions of the article will show to what extent foreign direct investments have contributed positively to the development of the Romanian economy. The research methods used consist in comparative analysis in time, qualitative and quantitative evaluations, interpretations, correlations, as well as in addressing the issue from different perspectives. The analysis shows that in Romania, foreign direct investments have not had many positive effects, having been channeled mainly towards activities with medium processing level and medium technological level and towards speculative services. Another result highlights that the activities of foreign direct investments companies depend to a large extent on imports, so they do not support Romania’s economic development.