Foreign Direct Investment and Economic Growth in Albania

Open access


Since the 1980s, foreign direct investment inflow (FDI) has grown significantly in most developing countries while pertaining Alania, foreign direct investment has started after the 1990s. A lot of developing countries have made policies aimed at reducing FDI barriers. Foreign capital globalization, particularly FDI inflow is increased significantly in developing countries, due to the fact that FDI is the most stable and prevalent component of foreign capital inflows (Adams, 2009) Foreign direct investments are a very important factor for the development of a country and Albania has still much to be done to encourage such investments, especially in the legislative framework. The authors are trying to give the answer to the question that how does foreign direct investment in the Albania affect the nation’s economy? The authors identify that foreign direct investment improves technology and has positive impact on economic growth. Because the overall theory is that FDI inflow enhances and sustains economic growth in the host country.

Adams, S. (2009). Foreign Direct investment, domestic investment, and economic growth in Sub-Saharan Africa. Journal of Policy Modeling, 31, 939-949.

Asiedu, E. (2006). Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability. World Economy, 29, 63-77.

Ball, D., McCulloch, W., Frantz, P., Geringer, M. & Minor, M. (2002). International business: The challenge of global competition. Boston: McGraw-Hill.

De Jager, J. (2004). Exogenous and Endogenous Growth. University of Pretoria ETD.

De Mello, J. (1997). Foreign direct investment in developing countries and growth: A selective survey. Journal of Development Studies, 34, 1-34.

Denisia, V. (2010). Foreign Direct Investment Theories: An Overview of the Main FDI Theories. European Journal of Interdisciplinary Studies, 2, 104-110.

Flavianus, M. M. (2014). Determinants of Foreign Direct Investment in East Africa Countries of Tanzania and Kenya: The case study of Tanzania and Kenya. Retrived November, 11, 2015, from

IMF. (2007). World Economic Outlook. Autor.

Kraja Boriçi, Y. & Osmani, E. (2014). The role of the Government Policy for support the SME-s. Academic Journal of Interdisciplinary Studies, 3, 391-396.

Kraja Boriçi, Y. & Osmani, E. (2015). Importance of external and internal environment in creation of competitive advantage to SMEs. (Case of SMEs, in the Northern Region of Albania). European Scientific Journal, 11, 120-130.

Li, S. & Filer, L. (2007). The effects of the governance environment on the choice of investment mode and the strategic implications. Journal of World Business, 42, 80-98.

Moosa, I.A. & Cardak, B.A (2002). The determinants of Foreign Direct Investment in MENA countries: An extreme bounds analysis. Journal of Multinational Financial Management, 16, 199-211. (2015). Remitanca dhe IHD. Retrived November, 14, 2015, from

Quazi, R., Vemuri, V. & Soliman, M., (2014). Impact of Corruption on Foreign Direct Investment in Africa. International Business Research, 7, 1-10.

Senkuku, A. M., Gharleghi, B. (2015). Factors Influencing Foreign Direct Investment Inflow in Tanzania. International Journal of Business and Management, 10, 48-56.

Shaari, M. S. B., Hong, T. H. & Shukeri, S.N. (2012). Foreign Direct Investment and Economic Growth: Evidence from Malaysia. International Business Research, 5, 100-106.

Velnampy, T., Achchuthan, S. & Kajananthan, R. (2014). Foreign Direct Investment and Economic Growth: Evidence from Sri Lanka. International Journal of Business and Management, 9, 140-148.

Wu, L., Li, S. & Selover, D. D. (2012). Foreign Direct Investment vs -Foreign Portfolio Investment The Effect of the Governance Environment. Management International Review, 52, 643-670.


Innovative and Economic Research Journal

Journal Information


All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 442 284 10
PDF Downloads 336 258 17