The impact of foreign direct investments on economic growth and employment in Albania

• Main Authors: Lorena Çakërri, Filloreta Madani
• 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/2018/06/148-156.pdf

Albania has experienced a growing performance of FDI inflows after the 1990s. This has been due to the fact that Albania has managed to create a liberal regime for foreign investment. This positive attitude towards these financial flows derives from the prospect of benefiting from them. These positive effects driven by foreign investors are diverse in terms of economic growth, the spread of technologies, the improvement of deficits, employment, technology, and so on. The purpose of our paper is to investigate some of the effects of foreign direct investment. We will analyze the impact of FDI on economic growth, technology transfer, gross capital formation, budget deficit financing through a descriptive analysis of data published by various institutions such as World Bank, UNCTAD and Ministry of Finance etc. The impact of FDI inflows into employment levels will be investigated through an econometric analysis based on secondary data.