Foreing direct investments in Albania

• Author: Ermira Korra - Faik Gjolena - Ana Muça
• Position: Assistant Lecturer at Economics Department, Faculty of Economy, Elbasan, Albania - Head of Finance at 'Elite Travel DMC', Elbasan, Albania
• Pages: 296-305

Vol. 2 No. 2

July 2016

Academic Journal of Business, Administration, Law and Social Sciences

IIPCCL Publishing, Tirana-Albania

ISSN 2410-3918

Acces online at www.iipccl.org

296

Foreing direct investments in Albania

Ermira Korra

Assistant Lecturer at Economics Department,

Faculty of Economy, Elbasan, Albania

Faik Gjolena

Ana Muça

HeadofFinanceatEliteTravelDMCElbasan, Albania

Abstract

Foreign Direct Investments are a very important segment in the economic activity of a country,

duetotheeectstheybringwithThisismainlybecauseofthetradeliberalizationaswell

as other advantages such as higher returns on investments, potential resource seeking, new

market seeking, or cheap labor force.

The issue of Foreign Direct Investment is very broad, but in concrete terms, the main goal of

this article is the theoretical analysis and its impact in related policies in Albania. Another

objectiveis closelyconnected with thehelp of governmentauthorities tobeerunderstand

thepotentialandeectiveimpactofFDIintheAlbanianeconomyandusethisinformationin

their decision-making.

Keywords: ForeignDirectInvestmentsFDIinowoutowdomesticinvestmentseconom-

ic growth.

Introduction

Foreing Direct Investment is a new ecomic concept, and had a rapid increasing

development in the last years. Driven by technological change, global competition and

market liberalization, foreign direct investment can play a key role in the process of

globaleconomicintegrationTheycreateeectsinthehostcountriesaswellasinthe

investingeconomiesEectsonhostcountriesareimportantforthediversityandthe

economicpoliticalandsocialimportancethattheygenerateThebenetoftheseeects

doesnotcomeautomaticallybutisaectedby theimplementationof somespecic

conditions. FDI bring the necessary capital; increase the productivity of the economy

through the transfer of knowledge and technology. They increase the competitiveness

oftheeconomyreducetheimpactonthecurrentaccountdecitincreaseemployment

andaboveallaectthewelfareofthepopulationTheincreaseofFDIisakeyobjective

for the economic development of a country and the strategic priorities of governments.

FDI in theoretical perspective

Foreign Direct Investment (FDI) is a key element in the international economic

integration. They create direct links between economies, and allow economies to