36. Research Regarding the Effects of Foreign Direct Investments on the Main Economic Activities in Romania

Over time, foreign direct investment has been the determining factor in the pace of economic development. At the macroeconomic level, foreign direct investment influences economic growth by creating jobs, developing production capacity, and increasing contributions to the state budget, and access to modern and efficient technologies. Foreign direct investment has an essential contribution to technology transfer, stimulation and growth, competitiveness, and development of the innovation process. At present, Romania is going through a difficult economic context, but investments are a good opportunity for economic growth. In Romania, foreign enterprises have played a significant role in boosting economic growth in the key economic sectors. Over time, foreign direct investments have been discovered to generate several externalities in the Romanian economy in the form of technology transfer advantages. The goal of this study was to look into the role of foreign direct investments in economic growth in Romania, with an emphasis on the period 2017–2019. The motivation is given by the fact that foreign direct investment is a relevant means of technology and knowledge transfers, and innovation development which drive the growth of the economy.