The Determinants of Foreign Direct Investment Inflows in Romania

FDI is a key element of a country’s economy, a high level of FDI (foreign direct investment) being seen both as an extremely important determinant of economic growth and as a sign of successfully implemented economic policies. Therefore, the determinants of foreign direct investment itself are of great importance to any country that wishes to attract investors and boost its economy. The aim of this paper is to research and analyse many different determinants of foreign direct investment and then compare the findings to the determinants that currently influence the investors’ decisions in Romania. The different determinants were used in order to create an overall picture of the global situation regarding investors’ expectations. We then further analysed the current situation in Romania and checked for differences in the context of the world’s rising geopolitical tensions, fast pace of the technological transformation, and the movement towards sustainability.