Online ISSN 2286-0266
Print ISSN 1223-0685
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Œconomica by SOREC
 
Robert GRECU
Academia de Studii Economice din Bucureşti
The main objective of this paper is to highlight the most important factors that lead to the growth of foreign direct investments received by a country. In this regard, in the econometric model there were included both fiscal, budgetary and labour market dynamics factors. This approach aims at illustrating both the main determinants and the most suitable economic policies that could be taken in order to improve the flow of foreign investments. The econometric results show that the fiscal policy, materialized in the dynamics of the capital tax rate, tends to be the element for which foreign direct investments have the highest level of sensitivity. In the second part of this study, the impact of the dynamics of direct investments on the level of economic development was analysed, emphasizing a relation that tends to be directly proportional. As a result, the final recommendation is to use the tools of fiscal policy in order to increase the level of competitiveness of a country in international markets in terms of investment and, implicitly, to increase its potential of economic development.

ŒCONOMICA no. 4/2019
Keywords: foreign direct investment, fiscal policy, budgetary policy, data panel, international competitiveness
JEL: H32
The Impact of Budgetary, Fiscal and Labour Market Policies on the Level of Foreign Direct Investment