Abstract
This paper outlines the need for an analysis of the extent to which foreign direct investments
(FDIs) affects real convergence expressed using the following selected macroeconomic indicators:
Gross domestic product (GDP) per capita, the unemployment rate (UR), labour productivity (LP) per
person employed and the minimum wage (MW). The purpose of this paper is to analyze the impact of
foreign direct investment (FDI) on real convergence in Romania’s and Bulgaria’s economy during
2004-2014. The main results for both Romania and Bulgaria show that FDI can be considered important
sources of growth for real convergence that have contributed to economic growth, increased labour
productivity and increased the minimum wage except for the unemployment rate. The results confirmed
our expectations because logically, foreign firms bring their own technology, appropriate for the work
of the employees, in order for their employees to produce as much as possible and pay salaries relatively
higher compared to companies with local capital, but they demand instead higher productivity.
Citation
ID:
37911
Ref Key:
cocris2017foreignacta