Impact of Foreign Direct Investment on the Development of Agricultural Economy in the Area of Korça

Abstract

Korca district is among the biggest districts in the Republic of Albania. With a total of 365 000 inhabitants, it is recognized as an area with developed agriculture and livestock, but as much as rich in tourist resources full of values. We will identify new unused resources mainly in agricultural products, which with their potential for increasing the income of rural residents, can directly affect the growth and development of Korca district. Real reflection of the situation in: (Drithas, Libonik, Lozhan, Mollas, Cumulus, Pojan, Maliq, Vithkuq, Bulgarec). Knowing the value of Foreign Direct Investment (FDI) as a mean for encouraging investment, stresses the need for accurate measurements and detailed statistics of FDI for assessing their relationship with economic growth and its impact on various economic sectors, mainly in the agricultural sector. The main goal is to identify the impact and the factors of prevention, in terms of increasing the flow of FDI in Albania. An important aspect of the purpose of this paper is to identify and assess the impact and the influence of FDI in Albanian agriculture, trends and issues or major obstacles to FDI in this sector, focusing in the Korca area and municipalities. In korca the inflow of foreign direct investment has played a role and has a significant impact on increasing productivity and efficiency of production, employment and domestic exports. The objectives of this study deal with the analysis of FDI as an important factor for developing countries in terms of globalization of the world economy as well as the direct or indirect impact they have on the Albanian economy with the main focus on agriculture. The specific objective of this paper is to identify and evaluate the competitive advantages of the area in order to attract foreign investment, with a focus on agriculture. In this context, to define how these advantages can be used and what the area needs, so it can attract more foreign investors. DOI: 10.5901/ajis.2016.v5n2p45