FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN ALBANIA

Abstract

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.