Create a new account

It's simple, and free.

FOREIGN INVESTMENT IN CONTEMPORARY ROMANIA Introd

FOREIGN INVESTMENT IN CONTEMPORARY ROMANIA

This research examines the effects on foreign investment and economic growth and development in contemporary Romania of selected economic factors. The economic factors of interest are price inflation within the Romanian economy, wage rates within the Romanian economy, and currency controls affecting the outward flow of hard currencies from Romania.

Romania Since the Socialist Collapse

When dictator Nicolai Ceausescu was overthrown in December 1989, the country was impoverished, Romanians generally were xenophobic, and the productive base of the Romanian economy had been eroded (Keay, 1990, pp. 52-54). Five years later, the Romanian economy continues to suffer from over-centralization, a dearth of middle-management expertise, a general ignorance of market-economy business methods, and an absence of initiative and responsibility among a majority of the country's populace (McPherson, 1994, pp. 59-69).

The state of the Romanian economy at the time of the socialist collapse, together with the absence of substantial political and economic reform since that time, has caused many potential foreign investors to have second thoughts about participation in the contemporary Romanian economy (Romania looks, 1994, p. 4). While the relatively low wage rates within the Romanian economy are attractive to many foreign investors, both the rate of domestic price inflation and currency controls that affect the outward flow of hard currencies from Romania (thus effectively prohibiting the repatriation of any profits earned from investments within the Romanian economy) act to deter foreign investment. The issues addressed in this research, thus, are as follows:

1. What is the effect on foreign investment within the Romanian economy of the economic and political developments that have occurred since December 1989 (with special attention paid to wage rates, inflation, and foreign currency controls)...

Page 1 of 10 Next >

More on FOREIGN INVESTMENT IN CONTEMPORARY ROMANIA Introd...

Loading...
APA     MLA     Chicago
FOREIGN INVESTMENT IN CONTEMPORARY ROMANIA Introd. (1969, December 31). In LotsofEssays.com. Retrieved 06:04, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1708557.html