Revista de Economie Mondiala/ Journal of Global Economics

1-25

Authors: Agnes Ghibuțiu

Growth in FDI flows to and from the BRICS countries accelerated markedly since the 2000s. While surge in inward FDI reflects the growing attractiveness of all five countries to foreign investors, the notable outward FDI growth signals the grouping’s emergence as a global player. However, the recent slowdown in BRICS countries’ growth patterns raises concerns over their medium-term growth prospects, and, hence, their ability to maintain the current course in terms of capital flows and investment. This paper addresses the main trends shaping the BRICS countries’ inward and outward FDI over the last decade and a half, with a view to highlight their growing role in the global investment landscape and disentangle their longer term prospects. It examines the dynamics and patterns of BRICS countries’ involvement in global investment and reveals the reasons behind their outstanding performance in attracting and generating FDI worldwide. It than goes on assessing the prospects for BRICS both as host and home economies in the light of their weakening growth and the associated challenges arising from the new domestic and external environment.

48-68

Authors: Răzvan Voinescu, Cristian Moisoiu

The prospects of Turkey’s integration within European Union are complicated by the tough geopolitical context in the region. Ambiguous trends and options for the EU’s institutional reform, integration versus fragmentation, have brought additional uncertainties for Eastern enlargement. The ongoing war in Syria and Iraq has determined Turkey to be confronted with an over increasing number of refugees and dislocated population. Moreover, the unsolved issues with Cyprus and internal risks of insecurity, especially determined by the intensification of the Kurdish conflict, have added even more pressure. This paper presents three exploratory scenarios about possible developments of the EU – Turkey relationship, which describe three distinct visions for the 2025 horizon, as it follows: the pessimistic scenario of divergence, competition and conflict; the optimistic scenario of cooperation, convergence and integration and the neutral scenario, reflecting a limited cooperation relationship.

86-99

Authors: Ionela Bălțătescu, Alexandra Rusu

The present article summarizes arguments, but also historical and statistical data supporting the following theses: (a) in the mid-twentieth century Sweden has become one of the most prosperous and fast-growing economies in the world promoting free-market, free trade and a favorable business environment; (b) the establishment of the welfare state and the enforcement of radical welfare reforms in Sweden resulted in only two decades in economic downturn: unsustainable financial situation of the public finances (by increasing government spending and public debt), inflation and macroeconomic policies that generated a boom bust business cycle and economic crisis; (c) the economic principles of the Swedish model (folkhemmet) and the radical vision of welfare policies were generally abandoned or weakened in the post-crisis period in Sweden. Economic policies and reforms enforced after 1990 reflects this new approach: lower government expenditures, lower taxes and the liberalization or the reform of certain markets that were traditionally under state monopoly; (d) Swedish model is one of the best examples of how economic freedom fosters economic growth and development, whereas radical welfare policies and reforms destroys the very foundations of wealth creation: private property and free market.

146-155

Authors: Ecaterina Stănculescu

This article highlights the most important issues concerning the cooperation between the EU and the US in science and technology. The author analyzes the latest available data concerning both partners, the main areas in which the technical and scientific cooperation between EU and US is developing and will further develop, the common approach of the main global challenges and the possible benefits resulting from this cooperation. The paper emphasizes that both the EU, through its main RD program, Horizon 2020 and Euratom, and the US, whose concerns in scientific and technical research are the best reflected in The Strategy of American Innovation, launched in 2009, are willing to enlarge the range of issues tackeled in their cooperation framework. Romania, as an EU member state, could benefit from the existing cooperation framework between the two parties, but this remains, for now, a simple aspiration.

165-186

Authors: Iulia Monica Oehler Șincai

In the present paper, the main objective is to analyze to what extent the Chinese economy has been rebalancing towards a higher contribution of domestic consumption to the GDP, by taking into account both temporary and structural determinants and public policies. Our research includes two case studies, considered relevant from the standpoint of this topic: (1) urbanization, increasing the living standards and changing consumption patterns and the correlations between these changes and savings and consumption; (2) measures adopted or announced by the Chinese government in order to stimulate the internal consumption (“reform dividend”) taking into account the Chinese economic slowdown and a global gross product recording growth rates lower than 4% until 2020. Our investigations underline that beyond the direct objective assumed by the Chinese government, to spur the domestic consumption, it targets a more inclusive and sustainable economic growth, oriented towards innovation, high-tech industries and services. As the Chinese GDP structure is changing, and the main role is played by labour intensive services, not by the capital intensive manufacturing, the GDP becomes more and more labour intensive itself, which sustains the labour market and implicitly domestic consumption. Moreover, the universal access to the social security system represents a priority of the government, which determines the diminishing of the precautionary saving and automatically stimulates the domestic consumption.