ANALYZING THE ROMANIAN RESIDENTIAL MARKET UNDER THE GLOBAL ECONOMIC CRISIS EFFECT

As the financial crisis effects continue to spread around the world, Romania is no exception to the global economic climate, as the country continues its attempts to better integrate into the European Union. To what extent is the Romanian residential market affected by the United State financial crisis? What are the causes and effects of the Romanian crisis? How has the crisis evolved so far and our prognostics regarding it? These are some of the questions to which we answer in the present article. We will take into consideration factors such as the residential market of both new and old products, comparing their evolution up until March 2009 and studying their prices, units sold, and latest projects focused on our nation’s capital. Our prognostics estimates that the residential market will start the process of revitalization by Q4 2009 – Q2 2010, when the great demand will be sustained by good bank credit loans.mortgage subprime loans, the contagion effect, the cumulative causality effect, the herd effect, reference interest rate, credits, fiscal facilitation, developer financing, real estate transactions, constructions, sales prices, demand, offer, BREI-N, BREI-V, speculative investments

What Determines the Attractiveness of the European Union to the Location R&D Multinational Firms?

We analyse 446 location decisions of foreign affiliates in the R&D sector incorporated in the European Union over 1999-2006. Our results suggest that on average, the location probability increases with the size of demand, agglomeration economies, low production cost, technological development, flexibility of labour markets, access to skilled labour and information technology infrastructure. Our evidence suggests that after controlling for the R&D intensity of regions, European Union's regional policy and country level tax differences have had no significant effects in fostering the attractiveness of regions to R&D foreign investment. We find evidence of geographical structures relevant for the location choice of R&D multinational firms across the European Union. Further, we find that European investors have responded differently to location characteristics in comparison to North American investors.Foreign direct investment; Internationalisation of R&D; Location choice; Conditional logit; Nested logit; European Union