Abstract
Foreign Direct Investment are among the mobilizing factors of the economic development of a country, alongside the domestic investments, being a basic support in the achievement of the development and modernization strategies. The study presents, briefly, the effects of intervening Foreign Direct Investment flows on the economy of a country, able, by the advanced experience brought, to generate a better capitalization of resources, a contribution to growth. The directions of manifesting the mechanisms of influence of Foreign Direct Investment, as well as the role that they hold for their impact, the economic environment of the host country and the policies practiced in relation to Foreign Direct Investment are taken into account. The purpose of the paper was to point out some aspects regarding the favourable impact that foreign investments could have on an economy, by the contribution to new technologies and the contribution to the productivity increase. The conclusions point to the potential of the impact of Foreign Direct Investment on development and the need for the host countries, to support some properly oriented policies, by maintaining a correlation between the volume of foreign investment flows and the development potential of a country. The research method used to carry out the study was the documentation from the foreign and domestic specialized literature, the synthesis and processing of the relevant ideas, by capturing the impact of Foreign Direct Investment in economic development.
Highlights
The beneficial contribution expected to be obtained on the basis of foreign direct investments motivates the interest of host countries' governments in attracting them, the stake being the advantages of the investment flow for the economic growth
The approach of foreign direct investments relates to economic growth and development, to prosperity
The impact of foreign direct investments on growth and development is determined by the type of Foreign Direct Investment, the particularities of the company, the economic conditions in the area whereat the investments and commercial policies are implemented (Trufin, 2016, Negrițoiu 1996)
Summary
The beneficial contribution expected to be obtained on the basis of foreign direct investments motivates the interest of host countries' governments in attracting them, the stake being the advantages of the investment flow for the economic growth. Considered as an important source of capital growth, especially, in the case of countries whose savings rates are modest, compared to the development needs of the economy, the prospects for appreciation of the role of foreign direct investments have changed over time. Opinions regarding the appreciation of Foreign Direct Investment, as an important factor of economic and social development have led to the worldwide competition increase, for Foreign Direct Investment, their practice being considered a success. There is the opinion that the excessive intervention of the multinationals may lead to the economic dependence of the host country, on the foreign capital and, to the danger of unbalancing the activity of the local companies, due to the competitive pressure exerted by the multinational companies (Horobeţ & Popovici O., Şerbu, 2007)
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