Foreign Direct Investments in Transylvania

Abstract

Economists state that from the revolution Romania is in a continuous crisis both in economic and political terms. In the years past, the stop-go type economic policy shocked the economy again and again, the reforms remained slow or even unrealized. Contrary to all expectation the new government came to power in 1996 and was unable to accelerate the transformation.

The amount of the foreign investments to Romania is still one of the lowest in the region. However by the means of a consistent and reliable environment it is possible to attract the foreign investors who can promote the economic development.

In my lecture I will show the pattern of the investments from the European Union in Central-Eastern Europe, what were the causes of the success and the weaknesses of the different countries.

Finally, I will show a portfolio model, to determine the optimal portfolio for a potential investor in Romania, if he or she would concentrate on the region of Transylvania.

The new capital is really important not only because it would create jobs and encourage economic growth but also it would support the integration policy into the EU.