Companies with foreign direct investments (FDI) account on average for 70 pct of Romania’s exports and 60 pct of the country’s imports, respectively, shows a joint survey by the Bucharest Academy of Economic Studies and the Foreign Investors Council (FIC).
“Exports and imports of FDI companies have been rising steadily since 2009 in nominal value, except for 2012. Whereas in 2008 FDI companies were responsible for about 50 pct of the trade deficit, by 2015 their contribution reduced substantially to around 20 pct of the trade balance deficit. In 2015, imports by FDI companies further outran exports by approximately 1.8 billion euro. FDI companies make a considerable contribution to Romania’s exports, which is not surprising given that these businesses are generally larger and benefit from more extensive know-how than local companies,” the authors of the survey said.
In terms of net average wage, the wages paid by foreign companies are higher than the national average, but lower than those in fully state-owned companies.
FDI companies employ a third of the Romanian labor force, specifically about 1.2 million people, have a labor productivity twice as high as those with Romanian capital and invest twice as much in each employee.
The survey also shows that despite a perception that the FDI is actually higher, Romania’s FDI per capita is the lowest in the region (3,103 euro per inhabitant).
The cited source also mentions that 60 pct of the foreign investments are in the Bucharest-Ilfov region.
The document also states that half of the total FDI has been directed to the industry, which means that there have been significant, long term investments, and the gross value added for multinational companies exceeds 60 pct in industries such as auto and IT & C, according to Eurostat data (foreign affiliates statistics) .
The main countries to have invested in Romania are the Netherlands (25 pct of the total FDI stocks), Austria (14 pct), Germany (12 pct), followed by Cyprus (7 pct), France (7 pct) and Italy (5 pct), while all the other countries account each for less than 5 pct; the top six countries in the ranking hold an aggregate 70 pct of the total FDI stocks.