Uncovering the Attractiveness of the Romanian Market: A Data-Driven Approach

The purpose of this study is to examine the elements that strengthened market attractiveness in Romania, between 2000 and 2022. To fulfil this, we considered a selection of variables upon which we carried out a Principal Component Analysis that allowed to underline the factors associated with Romani...

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Bibliographic Details
Published in:"Ovidius" University Annals. Economic Sciences Series (Online) 2024-02, Vol.XXIII (2), p.267-276
Main Authors: Daniel Lipara, Marian Ionel
Format: Article
Language:English
Subjects:
economic growth
employment
investment
market structure
principal components
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Summary:The purpose of this study is to examine the elements that strengthened market attractiveness in Romania, between 2000 and 2022. To fulfil this, we considered a selection of variables upon which we carried out a Principal Component Analysis that allowed to underline the factors associated with Romanian market attractiveness. After exploring the correlation between Foreign Direct Investment, Gross Domestic Product, Labor Force Participation Rate, Logistics Performance Index and Political Stability, the PCA unveiled five components, with the first two accounting for 83.01% of the total variance in the data. Formulated on the initial variables' loadings on these components, FDI, GDP, LFPR, LPI, and POLSTABILITY appear to be significant factors that promoted market attractiveness in Romania. Still, a more in-depth analysis and interpretation of the data is required to fully comprehend the factors that make attractive the Romanian market.
ISSN:2393-3127