Foreign Direct Investment and Competitiveness. Evidences from Romanian Economy

The activity of companies with foreign capital is more often in the center attention public opinion, researchers and authorities considering positive effects but also negative externalities that it generates on economies host countries. With liberalization movements, FDI was consider panacea could solve all economic, environmental social problems less developed countries, reality much complex. In order to test if direct investment (FDI) caused by competitiveness case Romania, we considered inflows for national economy, net (% GDP) Competitiveness index time period 2007-2018. econometric methodology used model Index Granger Causality. results study suggest there a unidirectional causality, flowing from investment. Thus, represents result competitiveness, does not influence index.