Factors influencing foreign direct investments in Romania: The case of Danish FDI in Romania

Abstract

This thesis is about Danish foreign direct investments (FDI) in Romania. Its purpose is to study the key factors influencing Danish FDI in Romania. To discover the factors that hinder or enhance the Danish foreign investments in Romania a macro and micro economical approach are discussed. For a more comprehensive image over the economic situation of Romania and Denmark a macro and micro perspective of their business climate is presented. The institutional based theory and the transaction cost theory are used to provide an adequate theoretical basis for this research. After the theoretical part is debated, analytical frameworks based on six main factors that influence the way of doing business in Romania are explained. Consequently four hypotheses are formed that link the FDI with the main factors that influence its flow. For reaching valuable and accurate results, an empirical research was done. The empirical research is built from interviews conducted with Danish investors in Romania.