Journal of Knowledge Management, Economics and Information Technology

After 1990, the Central and Eastern European (CEE) countries lowered the barriers to FDIs. Of course, many other developments were taking place at the same time: increasing openness to trade, privatization of previously government-owned production, and many other changes as these countries moved in various degrees from socialist to market economies and democratic governments. They privatized many state-owned enterprises, signed foreign trade agreements with other countries in the region, and have generally achieved a significant level of macroeconomic stability with improved growth rates. They also experienced a significant increase in FDI. As a consequence, the ratio of inward FDI to the CEE countries studied here in total world FDI inflows increased more than three-fold. Over the same period, these countries also achieved a substantial increase in their exports, especially towards Western Europe. We present in this paper the relation between the FDIs and exports in the CEE countries during 1990-2010 using statistic data analysis and literature review and underline the factors that determined an increase of exports in these countries. Despite other CEE countries that succeeded to attract many export-oriented FDIs, Romanian case is different because of many local specific factors such as an insufficient local production and a tight fiscal policy.

  The Impact of FDIs on Exports, and Export Competitiveness in Central and Eastern European Countries (1.1 MiB, 4,424 hits)

The present article aims to bring into discussion the process of globalization – as central phenomenon of the 21st century. The areas of intervention where globalization is being noticed are various, from early history to the present day, in economics, marketing, IT, the educational system, politics, business, etc. The main idea that we want to set forth is the way globalization occurs in the economy, in general, and in some countries of the world (such as Bulgaria) and in Romania, especially, as well as the manner through which they succeed or not to take advantage of the effects of globalization. More or less, we depend on globalization, and the process of globalization and its impact in our times can be more or less controlled.

  Globalization – Miracle or Mirage for the Economy and Business Environment (729.0 KiB, 3,773 hits)

The deep global recession has focused attention on the need for counter- cyclical macroeconomic policies. The scope for monetary policy was hampered by the credit freeze in the financial system, which was constrained by the accumulation of toxic assets awaiting a resolution to restore confidence and efficient intermediation. While a heated debate has emerged on the specifics, the need for fiscal intervention to support demand proved to be larger and of longer duration than initially envisaged. Further, there is a need to consider lags governing the fiscal policy transmission to decide on the speed of fiscal withdrawal without jeopardizing the recovery efforts. The aim of this paper is to establish some important factors for fiscal policy effectiveness and their role in attracting FDIs in the EU countries for sustaining economic recovery here based on literature review and the EU countries’ experience. Even if the tax regime is not the only factor that determines decisions for foreign investments, reducing tax rates in some new Member States has increased the attractiveness of these countries for foreign investors.

  The Efficiency of the Fiscal Policy in the EU and Its Role in the Economic Recovery by Attracting FDIs (699.3 KiB, 2,921 hits)