Analysis of the Volume and Provenance of Direct Foreign Investments in the West Region for Development in Romania, with a Focus on German Direct Investments

Abstract

Abstract This article is a multicriterial analysis of foreign direct investments in the West Region of Development of Romania, with a focus on German direct investments, taking into account the 4 component counties of Western Development Region: Arad, Caras-Severin, Hunedoara and Timis. The analysis investigates 2 reference years, 2010 and 2016, with statistical data retrieved from the National Trade Register Office, the National Commission for Strategy and Prognosis and www.listafirme.ro, to which are added the author’s own calculations. Conclusions are drawn for each of the considered criteria. For the German industry, Romania has affirmed itself in the last few years as being a direct investment market with a high strategic growth potential. Germany has become, both in exports and imports, one of Romania’s most important business partners. The business relationships between the companies which play an important role in the economic system of the two countries represent a useful tool for the developments of the Romanian-German trade flows. In the case of direct foreign investments, the enterprises show a consolidated presence in several regions of Romania. German investors have shown an increased interest for Romania especially since the end of the 90s of the last millenium. Internationally renowned companies from Germany, such as: Continental, Bosch, Daimler, INA Schaeffler and Kaufland have extended their production activity areas in Romania. The West Region of Development of Romania progressed in a special manner because it is a region with a great desire to collaborate with Germany both geographically, as well as cultural-historically.