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Country risk evaluation impact on FDI flow. Medium run evidence from Romania

Author

Listed:
  • Emilia Ungureanu

    (University of Piteşti, Romania)

  • Felix-Constantin Burcea

    (Bucharest University of Economic Studies, Romania)

  • Oana Dragomir

    (Dacia Renault)

Abstract

During the last two decades, Romanian economy suffered numerous changes, with direct impact in the socio-economic and political life. This affected also the investment environment, the degree of attractiveness for investors and the flow of FDIs. As the economic system has a global dimension, the need of evaluating different countries from a risk perspective (that will serve as starting point for investor’s decision) has increased the role of rating agencies, especially in the economic crisis context. Therefore, by applying two econometric models, we will determine in which degree the risk rating (using the Euromoney index) is influencing the FDI flow in Romania, having as evidence the period 1996-2012.

Suggested Citation

  • Emilia Ungureanu & Felix-Constantin Burcea & Oana Dragomir, 2014. "Country risk evaluation impact on FDI flow. Medium run evidence from Romania," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 14(1), pages 317-328.
  • Handle: RePEc:pet:annals:v:14:y:2014:i:1:p:317-328
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    References listed on IDEAS

    as
    1. Anca DACHIN & Felix-Constantin BURCEA, 2013. "Structural changes and productivity in the crisis period in Romania. The industry case," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(6(583)), pages 139-148, June.
    2. repec:agr:journl:v:6(583):y:2013:i:6(583):p:139-148 is not listed on IDEAS
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    More about this item

    Keywords

    country risk; FDI; rating agencies;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications

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