INVESTMENTS AND TURNOVER: POOL DATA ANALYSIS FOR THE ROMANIAN HOTEL AND RESTAURANT SECTOR

Investments represent a powerful tool for an enterprise to stimulate economic performance, productivity, and competitiveness in the medium and long term. This paper analyses the relationship between investment and the turnover of active enterprises operating in the hotel and restaurant sector through the construction of a pool data equation created for the eight development regions in Romania (North-East, South-East, South-Muntenia, South-West Oltenia, North-West, West, Centre, Bucharest-Ilfov, for the period 1999 2007. The Romanian tourism sector is still perceived as fragile, even after 20 years of turning into a market economy, as incomplete transition affects the development of various economic sectors and thus also of tourism. The important question is how strongly investment in the hotel and restaurant sector impacts regional development.