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Foreign Direct Investment based on Country Risk and other Macroconomic Factors. Econometric Models for Romanian Economy

Author

Listed:
  • Savoiu, Gheorghe

    (University of Pitesti, Pitesti)

  • Dinu, Vasile

    (Academy of Economic Studies, Bucharest)

  • Ciuca, Suzana

    (University of Pitesti, Pitesti)

Abstract

The paper identifies several econometric models of Foreign Direct Investment focused on the country risk, which can also signal other macroeconomic indicators in Romania after 1996, according to World Bank and major rating agencies. The introduction presents the oscillation between micro- and macro-economic significance in conceptual interpretation, followed by a review of the literature. A methodology and database section provides the statistical support. The results consist in econometric models, parameterized in EViews. The modelling focused on Euromoney and Standard&Poor’s country risk has proved to be competitive. The findings and conclusions amplify the importance of Foreign Direct Investment models, as a development factor even in times of recession, highlighting the increasing importance of the country risk signal.

Suggested Citation

  • Savoiu, Gheorghe & Dinu, Vasile & Ciuca, Suzana, 2013. "Foreign Direct Investment based on Country Risk and other Macroconomic Factors. Econometric Models for Romanian Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 39-61, March.
    • Handle: RePEc:rjr:romjef:v::y:2013:i:1:p:39-61
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    References listed on IDEAS

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    Cited by:

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    2. Sebastian Madalin Munteanu & Irina-Eugenia Iamandi & Eugeniu Tudor, 2015. "Evaluation Model of the Entrepreneurial Character in EU Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 1-76, February.
    3. Maria Chiara Di Guardo & Emanuela Marrocu & Raffaele Paci, 2016. "The Concurrent Impact of Cultural, Political, and Spatial Distances on International Mergers and Acquisitions," The World Economy, Wiley Blackwell, vol. 39(6), pages 824-852, June.
    4. Nino Kokashvili & Irakli Barbakadze, 2020. "Does Polarized Political Environment Hamper Foreign Investors? The Evidence from Parliamentary Democracies," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(1), pages 45-73, March.
    5. Balaban, Suzana & Živkov, Dejan & Milenković, Ivan, 2019. "Impact of an unexplained component of real exchange rate volatility on FDI: Evidence from transition countries," Economic Systems, Elsevier, vol. 43(3).
    6. Bojnec, Štefan & Ferto, Imre, 2014. "Outward Foreign Direct Iinvestments and Merchandise Exports: The European OECD Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 87-99, June.
    7. Gheorghe Savoiu & Simina Brostescu, 2017. "Three International Statistical Indicators And Their Factorial Impact On The Modelling Of Foreign Investments In Romania," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(8), pages 174-188, August.
    8. Adrian Grosanu & Cristina Bota-Avram & Paula Ramona Rachisan & Roumen Vesselinov, 2015. "The Influence of Country-Level Governance on Business Environment and Entrepreneurship: a Global Perspective," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 1-60, February.

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    More about this item

    Keywords

    Foreign Direct Investment; country risk rating agency; econometric model; testing and validation;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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