An assessment of foreign direct investments effects in Albania

Abstract

In a country like Albania, Foreign Direct Investments (FDIs) are the main priority for economic growth and especially where they focus. Many developing countries (including our country) view these investments as unique opportunities to develop faster and increase the competition and the level of exports. We try to find in this work a link between FDIs and economic growth in Albania. We estimate in this framework some quantitative models, with some economic indicators as independent variables and with the level of foreign direct investment in Albania as a dependent variable. In this context, FDIs are dependent on many factors which can be classified as quantitative variables, like economic growth, average wages, foreign trade, GDP per capita, taxes, etc., and qualitative variables, like Index of Economic Freedom, infrastructure, secure internet servers, etc.