EFFECTS OF THE MULTINATIONAL COMPANIES ON THE INCREASE OF LABOR PRODUCTIVITY OF LOCAL COMPANIES IN ROMANIA

PIRLOGEANU Dan, Alexandru Ioan Cuza University of Iasi

Abstract:
Foreign direct investment boosts economic growth in Romania, through capital injected into the local economy and the creation new jobs. With the presence of multinational companies, managerial knowledge and technologies are transferred to the host country. Another important aspect is the competition that they make to local businesses, motivating them to align with the new standards to stay attractive. Innovations, organizational knowledge, processes of research and development of new products and services, as well as new technologies of production, management, communication or transfer of information brought by foreign companies to Romanian territory contribute to the increase of the productivity of local companies due to the established interactions.

Keywords: labor productivity, impact of fdi, wages, productivty in foreign companies, productivity in local companies

JEL Classification:

Volume: 70, Issue: 1

Pages: 104 - 113

Publication date: August, 2018

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/70108pirlogeanu.pdf

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