# Acta Universitatis Danubius. Œconomica, Vol 13, No 6 (2017)

**Statistical
Analysis of the Evolution FDI Comparative with Growth Rate of Labour
Productivity per Employed Person and Growth Rate of GDP per Capita**

**Rodica
Pripoaie**^{1}

**Abstract:
**This
paper aims at making a comparative analysis of
the evolution FDI rate influence in Romania vs growth rate of labour
productivity per employed person and growth rate of GDP per capita.
The
starting point of this analysis is the position of FDI occupies in
Romania, because the competition
between firms and countries is getting is getting bigger due to
globalisation. The
comparative analysis of the evolution FDI comparative with growth
rate of labour productivity per employed person and growth rate of
GDP per capita in period 2003 - 2015 with adjusted data based
seasonally used the average and the function AVEDEV, DEVSQ as well as
the coefficient of variation and graphics.

**Keywords:
**FDI
(Foreign direct investment); GDP; growth rate of labour productivity
per employed person; growth rate of GDP per capita**
**

**JEL
Classification: **E27

**1.
Introduction**

The Foreign direct investment FDI, growth rate of labour productivity per employed person and growth rate of GDP per capita are annual statistical data of Romanian National Institute of Statistics.

**Foreign
direct investment (FDI)**
is defined by Eurostat as:
“the
category of international investment made by a resident entity
(direct investor) to acquire a lasting interest in an entity
operating in an economy other than that of the investor (direct
investment enterprise); the lasting interest is deemed to exist if
the investor acquires at least 10 % of the equity capital of the
enterprise; FDI stocks are the value of FDI assets (for outward FDI
stocks) and of FDI liabilities (for inward FDI stocks) at the end of
the reference period.”
http://ec.europa.eu/eurostat/web/products-datasets/-/tec00095.

**Growth rate
of labour productivity per employed person****
**is
defined by International Labour Organisation as “the
growth rate of output per unit of labour input”. The output is
considered as added value.
http://www.ilo.org/empelm/units/employment-trends/lang--en/index.htm.

**Growth rate
of GDP per capita (annual %) **is
defined by Word bank as “annual percentage growth rate of GDP
per capita based on constant local currency. GDP per capita is gross
domestic product divided by midyear population. GDP at purchaser’s
prices is the sum of gross value added by all resident producers in
the economy plus any product taxes and minus any subsidies not
included in the value of the products. It is calculated without
making deductions for depreciation of fabricated assets or for
depletion and degradation of natural resources.”^{2}

**2.
Statistical Data**

**The Evolution of FDI in Period
2003 - 2015 with Adjusted Data Based Seasonally Statistical Data**

According to the data provided by the www.insse.ro the evolution of FDI in Romania for the period 2003 - 2015 with adjusted data based seasonally, synthesised in the following tables.

**Table
1. Foreign Direct Investment in Romania**

*Sources:
http://www.insse.ro/cms/files/Web_IDD_BD_ro/index.htm*

Analyse of Statistical Data

Analyse of
statistical data for the evolution FDI comparative with growth rate
of labour productivity per employed person and growth rate of GDP per
capita**
**in
period 2003 - 2015 with adjusted data based seasonally use the
average and the function AVEDEV, as well as the coefficient of
variation and graphics, centralised as well as:

Table-2

Function |
Average |
AVEDEV |
Coeff. variation |

FDI (millions Euro) |
43774.69 |
14616.07 |
0,33 |

Growth rate of labour productivity per employed person (annual %) |
4.44 |
2.97 |
0,67 |

Growth rate of GDP per capita (annual %) |
4.26 |
3.38 |
0,79 |

*Sources:
own calculations*

The comparative analysis by Growth rate of labour productivity per employed person (annual %) and Growth rate of GDP per capita (annual %) shows a perfect correlation, per total.

*Graphical Evolution*

The graphical evolution of FDI in Romania of 2003 – 2015, the forecast linear trend line and R-squared value is the following:

**Graphic
1**

*Sources:
own calculations*

**Graphic
2**

*Sources:
Own calculations*

**Graphic
3**

**Graphic
4**

As can be seen by using the smallest square method, both the series growth rate of labour productivity per employed person and growth rate of GDP per capita, can be estimated using the moving average trend line method, relative to FDI that are approximated by a linear regression equation. Thus, we consider that between FDI and the other two series is not a direct and strong correlation, the only correlated being growth rate of labour productivity per employed person and growth rate of GDP per capita.

**3.
Conclusions**

This work trying to discover the correlation between FDI, growth rate of labour productivity per employed person and growth rate of GDP per capita. After analyzing the series we can say as decision to invest in a particular country through foreign direct investment depends by the level of taxation in that country, but also depends on the cost of the workforce and its level of qualification. The comparative analysis of the FDI, Growth rate of labour productivity per employed person (annual %) and Growth rate of GDP per capita (annual %) in period 2003-2015, shows a perfect correlation between Growth rate of labour productivity per employed person (annual %) and Growth rate of GDP per capita (annual %) per total, with adjusted data based seasonally used the average and the function AVEDEV, as well as the coefficient of variation, graphics and with moving average trend line method.

**4.
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http://www.insse.ro/cms/files/Web_IDD_BD_ro/index.htm.**
**

http://ec.europa.eu/eurostat/web/products-datasets/-/tec00095.

http://www.ilo.org/empelm/units/employment-trends/lang--en/index.htm.

https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG.

1 Associate Professor, PhD, Dunărea de Jos University of Galati, Romania, Address: 47 Domnească Str., Galati 800008, Romania, Tel.:(+40) 336 130 108; (+40) 336 130 109, Corresponding author: rodica.pripoaie@ugal.ro.

**AUDŒ,
Vol. 13, no. 6, pp. 240-245**

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