The importance of sectoral distribution of foreign direct investment - The situation in Albania

• Main Author: Lorena Çakërri
• Format: Article
• Language: English
• Published: International Institute for Private Commercial and Competition Law 2018-06-01
• Series: European Journal of Economics, Law and Social Sciences
• Online Access: http://iipccl.org/wp-content/uploads/2018/06/167-177.pdf

Over the last few years there has been an increase in the importance of the share of foreign direct investment in developing countries. This increase, theoretically, is also due to the many positive effects that these investments bring to the host countries. But many empirical studies show that this effect is not always positive. These different effects come as a result of the fact that these studies are based on aggregated data on FDI. Distribution by foreign direct investment sectors would be a more accurate way to understand the importance of foreign direct investment. In the world, the largest share of foreign direct investment is oriented towards the service sector. The purpose of this paper is to explain the importance of the sectoral distribution of foreign direct investment and to explain how foreign direct investments in Albania have been distributed by sectors and the effects brought in the Albanian economy, through a comparative analysis based on secondary data published by various institutions such as the Bank World Bank, Unctad, Bank of Albania, Institute of Statistics, etc.