Abstract

Much has been made of the importance of emerging markets and transition economies as the future of the software industry. This paper sets out to explain the main reasons why these markets are proving attractive to Foreign Direct Investment in Romania by examining theories of internationalisation and drawing on key FDI data. Contrasts are also made with other important markets, as well as transition economies, including China and India. The paper then goes on to examine industry-specific variables. The article then considers some alternative historical and cultural factors that may also have a role in explaining the success of this particular industry and location, and assesses whether government should continue to support this industry as part of the development process.