Theoretical and Applied Economics
No. 4 / 2014 (593)
VAR analysis on Foreign Direct Investment in Romania
“Spiru Haret University” of Bucharest, Romania
Abstract. A research analysis of the impact of FDI on GDP, exports and imports in Romania, on the basis of econometric models, provides us with an opportunity to examine how they have established in the transition period a number of interdependencies, more or less intense, among the variables mentioned above. In a way, the analysis which we performed gives us an opportunity to see not only the rigid positions of explained and explanatory variables, but also a change in the causality among these, which can be identified, both by different sizes of elasticity coefficients and by applying Vector Autoregresive model (VAR). The purpose of such a quantitative analysis based on patterns of foreign direct investment, was to identify the two-way relationship, with different intensities from one period to another, of the FDI and their determinants as well as among the indicators of performance of the Romanian economy and foreign direct investment, as a major factor of influence. We apply the VAR technique to quantify the parameters of elasticity between FDI, as an explained and/or explanatory variable and other factors in the cause-effect relationship. The VAR analysis was based on data obtained from NOTR (National Office of Trade Registrar), NBR (National Bank of Romania) and NIS (National Institute of Statistics) for FDI, GDP indicators, export and import indicators for the period 1997-2011.
Keywords: foreign direct investment, the method of auto-regressive vectors, gross domestic product, export, import, heteroskedasticity, homoskedasticity, co-integration, auto-correlation.
Contents
- Banking relationship management – A new paradigm?
Vasile DEDU
Dan Costin NIȚESCU
- The analysis of time intervals for establishing types of users
Ion IVAN
Alin ZAMFIROIU
Bogdan VINTILĂ
- VAR analysis on Foreign Direct Investment in Romania
Marinela GEAMĂNU
- Using the regression model for the portfolios analysis
and management
Constantin ANGHELACHE
Mădălina Gabriela ANGHEL
- The role of small and medium enterprises
and poverty in Pakistan: An empirical analysis
Sharafat ALI
Humayun RASHID
Muhammad Aamir KHAN
- Dimensions of the destination’s sensory profile. Case study: Muntenia
Aurelia-Felicia STĂNCIOIU
Mihail-Cristian DIŢOIU
Nicolae TEODORESCU
Lucian-Florin ONIŞOR
- Study on the competitiveness of Small and Mediumsized Enterprises (SMEs) in Vâlcea County
Daniel Sorin MANOLE
Elena NISIPEANU
Răzvan DECUSEARĂ
- Relation between monetary announcement
and Phillips Curve?
An empirical study from Malaysia
Abey P. PHILIP
- Management priorities to increase labor force flexibility
in the Romanian organizations
Ionuţ CĂŞUNEANU
- Behavioral finance: new research trends, socionomics
and investor emotions
Adrian MITROI
Alexandru OPROIU