Tax Competition regarding Foreign Direct Investment between Transition European Countries

This paper explores the fiscal measures adopted in the transition European countries in order to encourage the foreign direct investment. There were analysed six countries: Albania, Macedonia, Moldova, Russian Federation, Union of Serbia and Muntenegro, Ukraine, based on the four criteria: corporate and capital gains tax rates, withholding taxes, tax incentives, foreign tax relief and transfer pricing rules. Finally, the conclusion is that all the analysed countries offer favourable fiscal conditions for the foreign direct investment. Serbia, Muntenegro, Macedonia and Moldova have attractive fiscal regimes, showing that the authorities from these countries count on the foreign direct investment as a solution of solving the social and economic problems.foreign direct investment, business environment, tax competion, transition European countries

External debt management in Romania

This paper approaches the evolution of Romania’s foreign debt in three periods of time: during Nicolae Ceausescu regime, in the transition period and the one which followed the adhesion to European Union. For all three periods the external debt management had to deal with different circumstances: the sharp increase of real interest rates from the 1980s, the lack of credibility on international financial markets from the 1990s or the recent global crisis. We conclude that political regime, the efficiency of the allocation of the borrowed funds or the international context played major roles in the external debt management.

Shocks on the Romanian foreign exchange market before and after the global crisis

This paper explores some changes induced on the Romanian foreign exchange market by the global crisis. We study these changes from the perspective of number and intensity of the shocks occurred before and after the global crisis. We found some significant differences, explainable not only by the direct effects of the crisis, but also by the intervention of the National Bank of Romania.Romanian Foreign Exchange Market, Shocks, Global Crisis, Monetary Policy, National Bank of Romania

Turn - of - the - month effect on the Bucharest stock exchange

This paper explores the presence of the turn – of – the – month effect on Bucharest Stock Exchange. We employ daily values from 2002 to 2011 of the two important indices of the Romanian capital market: BET – C and RAQ – C, composed on the stock prices of some of the biggest Romanian companies and RAQ – C, which includes the stock prices of smaller firms. We find evidences of the turn – of – the – month effect only for the BET – C evolution.Calendar anomalies, Turn – of – the - month effect, Romanian capital markets, Seasonality, Efficient Market Hypothesis

Postadheration Strategies of the Romanian Companies

This paper explores the Romanian enterprises preparations for the adheration to the European Union. It is based on an investigation among twenty executives in which they describe their measures to deal with the changes induced by the adheration. We analyze their perception about the main opportunities and threats regarding the adheration and their preparation for the integration. We conclude that most of the strategies reflect a passive attitude of the executives and they were elaborated in a certain hurry.adheration, strategy, expectations and executives

Impact of the Global Crisis on the Financial Linkages between the Stock Market and the Foreign Exchange Market from Romania

This paper explores the financial linkages between the Romanian stock market and the exchange market in the context of the global crisis. We investigate such relations for two periods of time: one from January 2006 to February 2008, when the Romanian financial markets were quite tranquil and the other from March 2008 to September 2009, while the global crisis effects were considerable for Romania. For the first period of time we could not prove significant relations between the foreign exchange market and the stock market. Instead, for the second period of time we found a unidirectional causality from the exchange rates to the stock prices.Romanian financial markets, Vector Autoregression, GARCH, Granger causality, financial linkages

Decisions about the Future of the European Union: an Approach from a Romanian Perspective

The European Union reached a turning point when it has not only to fructify the opportunities of the new market opened by globalization, but also to face significant threats such as the ageing population, the competition from the Asian producers and the dependence on the energetic resources placed in politically unstable regions. This situation implies decisions about the reforms of the political institutions, the future enlargements and the elaboration of a common external policy. The experience from the past proved that, in making such decisions, it has to be taken into consideration the public opinion, which sometimes is not favorable to the radical changes. The position of Romania, with its representation in the European institutions, will certainly influence the strategic decisions regarding the future of the E.U. In this paper we will analyze this position, using both information from the Government strategies and the results of our investigations regarding the way some aspects of the integration are perceived.institutional reform; enlargement; foreign affairs

ANALYSIS OF THE ROMANIAN CURRENT ACCOUNT SUSTAINABILITY

This paper explores the sustainability of the Romanian current account. For this purpose we test the stationarity and cointegration of the monthly credit and debit transactions of the current account. It results these time series have unit roots for levelRomanian Current Account, Sustainability, Cointegration

TAX COMPETITION REGARDING FOREIGN DIRECT INVESTMENT BETWEEN TRANSITION EUROPEAN COUNTRIES

This paper explores the fiscal measures adopted in the transition European countries in order toencourage the foreign direct investment. There were analysed six countries: Albania, Macedonia,Moldova, Russian Federation, Union of Serbia and Muntenegro, Ukraine, based on the four criteria:corporate and capital gains tax rates, withholding taxes, tax incentives, foreign tax relief andtransfer pricing rules. Finally, the conclusion is that all the analysed countries offer favourable fiscalconditions for the foreign direct investment. Serbia, Muntenegro, Macedonia and Moldova haveattractive fiscal regimes, showing that the authorities from these countries count on the foreign directinvestment as a solution of solving the social and economic problems

Evolution of the Romanian exports and imports in the context of the European integration

The adhesion to the European Union in January 2007 induced significant changes in the Romania’s foreign trade. In the new circumstances, the Romanian firms have to face an increased competition, but they could also fructify the opportunities of the European single market. Other changes could occur in the next years, when Romania is expected to adhere to the Eurozone. This paper explores the Romanian exports and imports evolution, in relation with the changes generated by the European integration. Such an analysis is quite complex due to the relatively short period of time passed since the adhesion to the European Union. Moreover, the global crisis affected substantially both the exports and the imports. We search for the major structural transformation in the Romanian foreign trade by time series analysis.Romanian foreign trade, European integration, Structural breaks