Analysis of the impact of foreign investments on the economic growth of the Republic of Moldova

Abstract

Foreign direct investment (FDI) plays a key role in stimulating economic growth in the Republic of Moldova, contributing to infrastructure development, job creation, and increased economic competitiveness. It facilitates the transfer of modern technologies and managerial know-how, boosting the productivity and efficiency of local businesses. At the same time, FDI contributes to the expansion of exports by integrating Moldova into international value chains. However, the positive effect of foreign investment depends on political stability, an attractive legislative framework, and transparency in the business environment. In recent years, Moldova has seen moderate growth in investment flows, but these remain concentrated in sectors such as food, energy, and services. Regional disparities and excessive bureaucracy continue to limit the attraction of foreign capital. By improving economic policies and the investment climate, FDI can become a key driver of sustainable development. Overall, foreign investment contributes to the modernization of the economy and GDP growth, strengthening Moldova's position in the regional economy. The importance of studying this topic lies in understanding how foreign capital influences the country's economic development. Analysis of this phenomenon allows for the identification of economic sectors with the greatest potential for attracting investment and the evaluation of the effectiveness of government policies in this area. The research also provides valuable information for the formulation of sustainable development strategies and the creation of a favorable investment climate. The study helps to highlight the relationship between foreign investment, productivity, and employment, as well as to understand the risks associated with dependence on foreign capital. In the context of regional and global economic integration, the topic is particularly relevant for setting the economic policy priorities of the Republic of Moldova.