The Analysis of the Effects of the Direct Foreign Investments upon the Restructuring of the Romanian Economy

Direct foreign investments play a major role in the process of economic restructuring of the host country both directly through the introduction of new technologies or the modernization of the existing ones, the development of new activities, the encouragement of the local suppliers for their vertical integration in the corporatist system and indirectly through the intensification of the competition between the autochthon and foreign companies. The restructuring cannot be exclusively supported by the foreign companies; it requires substantial efforts from the part of the local companies which rely upon government support in order to develop their capabilities, to compete on the foreign markets and to develop their own marketing and distribution channels. Direct foreign investments can have significant effects at the microeconomic level reflected in the productivity, efficiency and competitiveness of the activities benefiting from a higher input of foreign capital.