Foreign Direct Investment in Romania: Impact on the Agro-Food Sector

Abstract

https://doi.org/10.35219/jards.2024.1.01

The research proposes an analysis of foreign direct investment in Romania, with a focus on its impact on the agro-food sector. The bibliographic study was conducted using open access publications from online scientific platforms. National Institute of Statistics, EUROSTAT, and FAOSTAT were used for the applied research. The collected information was processed using statistical methods. The modeling of experimental data was carried out with the help of tools provided by Artificial Intelligence. The results were graphically represented and interpreted. Political stability and fiscal predictability are essential for foreign investors. The strategic geographical position, rich natural resources, lower salaries relative to the European average, and free access to the European market made the Romanian agro-food sector attractive for FDI, in the global context of the demand for agro-food products, amid concerns about climate change and food insecurity. FDI inflows in Romania primarily come from the EU, while domestic outflows are insignificant. Services remain unattractive to foreign investors. The impact of FDI varies, reflecting the characteristics of each economic sector. Similar to East Asian countries, in the short term, FDI in agriculture has a negative impact on AWU or Agriculture Value Added. Additional analyses using Big Data, applied to a complex set of economic indicators in agriculture, are necessary for complex research. Monitoring and directing foreign investments towards high value-added services and production are needed for sustainable development. National strategies should focus on developing infrastructure, workforce education, population health, and research & technology transfer in agro-food production.