Abstract:

The financial crisis starting in 2007 is the most important in post-war economic history. After a long period of economic growth, the crisis hit Europe and, of course, Romania. A major consequence of the crisis is the decrease of the foreign direct investments. The theoretical aspect of the FDI and relation between the world financial crisis and the Romanian FDI is empirically analyzed below. Also this paper analyzed the evolution of the FDI inflows and FDI outflows in the world during 2005 and 2011. The paper stated that there is a direct relationship between FDI and economic development, local conditions, foreign policy. The FDI analysis on Romanian economy stated that the FDI are strongly influenced by greenfield investments, the new companies, and the distribution of FDI is linked by the development level of the Romanian regions.