Romanian immigrants and the inflows of foreign direct investment towards Romania

Open access


The answer to the following question summarizes the research presented in this manuscript: “Are Romanian immigrants in the EU countries enhancing the foreign direct investment (FDI) inflows towards Romania?”, and as a consequence it makes the results of the paper a useful tool for all Romanian authorities dealing with one of the two topics: migration and foreign investments. To our knowledge, the paper provides the initial evidence supporting the hypothesis that Romanian immigrants in the EU countries can be regarded as “ambassadors” of the Romanian economy in attracting FDI (to Romania) from their adoption countries. The methodological approach relies on econometric modelling which reveals a positive and statistically significant relationship between the stock of immigrants and the number of FDI firms located in Romania and sourced from 15 EU economies, when controlling for several variables. The results could be useful both for companies and for Romanian policymakers that should target as source for potential foreign capital the economies which attract important flows of Romanian immigrants.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Al-Sadig A. (2009) ‘The effects of corruption on FDI inflows’ 2009 The Cato Journal Vol. 29 267.

  • Andren D. and Roman M. (2016) ‘Should I stay or should I go? Romanian migrants during transition and enlargements.’ In Migration and the Great Recession: Adjustments in the Labour Market of an Enlarged European Community edited by Kahanec Martin and Klaus F. Zimmermann pp. 247-269. Berlin: Springer Verlag.

  • Anghel R. G. Botezat A. Coșciug A. Manafi I. and Roman M. (2016) International Migration Return Migration and their Effects: A Comprehensive Review on the Romanian Case. IZA Discussion Paper No. 10445.

  • Asiedu E. (2002) ‘On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?’ World Development Vol. 30 pp. 107-119.

  • Asiedu E. (2006) ‘Foreign direct investment in Africa: The role of natural resources market size government policy institutions and political instability’ World Economy Vol. 29 No. 1 pp. 63-77.

  • Aziz A. T. and Uddin S. Al-H. (2009) ‘Immigration and International Trade: Cross Country Evidence’ Available at SSRN:

  • Bhattacharya U. and Groznik P. (2008) ‘Melting Pot or Salad Bowl: Some Evidence from U.S. Investments Abroad’ Journal of Financial Markets Vol. 11 No. 3 pp. 228-258.

  • Buch C. Kleinert J. and Farid T. (2006) Where Enterprises Lead People Follow? Links between Migration and German FDI European Economic Review Vol. 50 No. 8 pp. 2017-2036.

  • Cheung Y-W.; Qian X. (2009) ‘Empirics of China’s outward direct investment Pacific Economic Review’ 14 (3) pp. 312-341.

  • Cleeve E. (2008) ‘How effective are fiscal incentives to attract FDI to Sub-Saharan Africa?’ The Journal of Developing Areas Vol. 42 No. 1 pp. 135-153.

  • Danciu A. R. Strat V. A. (2015) ‘Labor Force–Main Determinant of the Foreign Direct Investments Located in Romania’ Romanian Statistical Review Vol. 63 No. 1 pp. 3-21.

  • Deichmann J.I. Eshghi A. Haughton D.M. Sayek S. Teebagy N.C. (2003) Foreign direct investment in the Eurasian transition states Eastern European Economics Vol. 41 No. 1 pp. 5-34.

  • Dunning J. H. (2001) ‘The eclectic (OLI) paradigm of international production: Past present and future’ International Journal of the Economics of Business 8.

  • Garas A. Lapatinas A. and Poulios K. (2016) ‘The relation between migration and FDI in the OECD from a complex network perspective’ Advances in Complex Systems 19.06n07: 1650009.

  • Gao T. (2003) ‘Ethnic Chinese Networks and International Investment: Evidnece from Inward FDI in China’ Journal of Asian Economics Vol. 14 No. pp. 611-629.

  • Gould D. M. (1994) ‘Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows’ Review of Economics and Statistics Vol. 76 pp. 302-16.

  • Head K. and Ries J. (1998) ‘Immigration and Trade Creation: Econometric Evidence from Canada’ Canadian Journal of Economics Vol. 31 No. 1 pp. 47-62.

  • Holland D. Fic T. Paluchowski P. Rincon-Aznar A. & Stokes L. (2011) ‘Labour mobility within the EU’ NIESR Discussion Paper No 379.

  • Isaic-Maniu A. Mitrut C. Voineagu V. (2003) ‘Statistica’ Editura. Universitara Bucharest.

  • Khadaroo J. & Seetanah B. (2009) ‘The Role of Transport Infrastructure in FDI: Evidence from Africa using GMM Estimates’ Journal of Transport Economics and Policy (JTEP) Vol. 43 pp. 365-365.

  • Kugler M. and Rapoport H. (2007) ‘International Labor and Capital Flows: Complements or Substitutes?’ Economics Letters Vol. 92 No. 2 pp. 155-162.

  • Mohamed S.E; Sidiropoulos M.G. (2010) ‘Another look at the determinants of foreign direct investment in MENA countries: an empirical investigation’ Journal of Economic Development Vol. 35 No. 2 pp. 75-95.

  • Navaretti G. B. De Simone G. & Sembenelli A. (2007) ‘Migration and Foreign Direct Investment A review of the literature’ Migrazione e mobilità di impresa: determinanti e ricadute sul territorio research project carried out by Centro Studi Luca d’Agliano within the framework of the Fondazione CRT/Progetto Alfieri project May.

  • Narula R. & Dunning J. H. (2000) ‘Industrial Development Globalization and Multinational Enterprises: New Realities for Developing Countries’ Oxford Development Studies Vol. 28 pp. 141-167.

  • Nikolova M. Roman M. & Zimmermann K. F. (2017) ‘Left behind but doing good? Civic engagement in two post-socialist countries’ Journal of Comparative Economics Vol. 45 No. 3 pp. 658-684.

  • Roman M. D. Jaba E Roman M. (2009) ‘Economic development and political cycles in Romania’ in7th WSEAS International Conference on Environment Ecosystems and Development Dec 14 pp. 190-195.

  • Roman M. (2013) ‘Financial effects of the international migration in Europe: Modelling the decision to remit’ Panoeconomicus Vol. 60 No. 4 pp. 541-555.

  • Schneider F. Frey B. S. (1985) ‘Economic and political determinants of foreign direct investment’ World Development Vol. 13 No. 2 pp. 161-175.

  • Tong S. Y. (2005) ‘Ethnic Networks in FDI and the Impact of Institutional Development’ Review of Development Economics Vol. 9 No. 4 pp. 563-580.

  • Vijayakumar N. P. Sridharan P. Rao K.C.S. (2010) ‘Determinants of FDI in BRICS countries: A panel analysis’ International Journal of Business Science and Applied Management Vol. 5 No. 3 pp. 1-13.

  • Wheeler D. Mody A. (1992) ‘International investment location decisions’ Journal of International Economics Vol. 33 pp. 57-76.

  • Xu X. & Sylwester K. (2016) The effects of foreign direct investment on emigration: The roles of FDI source country education and gender. Economic Modelling Vol. 55 pp. 401-409.

Journal information
Impact Factor

CiteScore 2018: 0.70

SCImago Journal Rank (SJR) 2018: 0.203
Source Normalized Impact per Paper (SNIP) 2018: 0.351

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 184 184 4
PDF Downloads 134 134 3