Volume 3, ISSUE1/2012 - Review of Applied Socio-Economic ...

ISSN: 2247-6172
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 3, Issue 1/ 2012 ), pp. 52
URL: http://www.reaser.eu
e-mail: editors@reaser.eu
The coefficient b0 = 9.143 shows that the estimated average level for the dependent variable
(unemployment rate) is 9.143 % when the volume of FDI is equal to 0.
The coefficient b1 = -0.500 corresponds to a reverse, negative relationship between the parameters
considered. An increase in FDI volume with 1 million euro causes a decrease in the unemployment rate in
the average by 0.500 % in Romania. The significance of the test student for each variable is Sig t < α = 0.05,
that leads to the decision of rejecting the null hypothesis with a 95 % probability and of confirming the fact
that the model parameters are significantly different from the 0, which means that the independent variable
FDI has a strong influence on the unemployment rate.
The value of the statistic F = 10.793 in the ANOVA table shows that the independent variable – FDI
explains the variation of the dependent variable – unemployment rate, because sig = 0.004 < α = 0.05,
proving that the unemployment level in Romania is significantly influenced by the volume of attracted FDI.
With a probability of 95 % the null hypothesis is rejected and guarantees that the linear regression model is
statistically significant in explaining the dependency among variables.
The determination coefficient Rsquare = 0.375 highlights the fact that 37.5 % of the unemployment
variation is explained by the variation of the independent variable, foreign direct investment.
5. Conclusions
FDI flows are recognized for the benefits they generate on host country economic growth and on the
evolution of national macroeconomic indicators. The analysis performed on CEECs reflects the impact
exerted by the worldwide economic crisis on beneficiary country characteristics, emphasized through the