Field: Governance and social capital

Subfield: Government performance

Details:

This indicator refers to foreign direct investment (net inflows) that establishes a durable interest (by creating deposits, production capacities or permanent organizations) with a view to obtaining control or significant influence over the management of an enterprise based in another country. The threshold for a foreign direct investment is 10%. Foreign direct investment can take the form of greenfield investment (where the investor begins a new venture in a foreign country by constructing new operational facilities), joint venture (where the investor enters a partnership with a company abroad, for the purpose of establishing a new venture) or mergers and acquisitions (where the investor purchases a venture abroad). Foreign direct investment is significant because it shows the interest of the business environment in investing in the Romanian economy (which interest depends on a series of elements, such as political and macro-economic stability).

In 2017, Romania totalled a net inflow of foreign direct investment of 4.95 billion dollars, three times more than Bulgaria (1.66 billion dollars), but less than Poland (6.26 billion dollars).