Abstract
In this study analyzed 20 different countries that are the origin state of foreign investors, which have invested in Albania (this sample represents 95% of FDI (Foreign Direct Investments) stocks, 2007 - 2014). The analysis technic used is the gravity model of FDI stocks in Albania. The main independent variables in this analysis are GDP, the level of business taxes, the difference of GDP per capita, the similarity economies, etc. The result of this study: The level of FDI stocks in Albania is lower than its potential compare with FDI stock average in the States of the Balkan Region.
Highlights
Globalization development in the world, nowadays continuous to arise clearly and emphasizes the importance of FDI (Foreign Direct Investments) in different economies
FDIs are an economic instrument with high efficiency for financing the foreign trade deficit, national current account in the host country
The average value of FDI has a statistically significant impact on economic growth but the relationship is heterogeneous across countries
Summary
Globalization development in the world, nowadays continuous to arise clearly and emphasizes the importance of FDI (Foreign Direct Investments) in different economies. FDIs are an economic instrument with high efficiency for financing the foreign trade deficit, national current account in the host country (when this deficit has a high level and it is very problematic in Albania). Base on all these arguments above, in this study we will develop one research on main factors that cause developing of FDIs. Our focus is the evaluation of potential growth of FDIs in Albania and their marginal growth. In this study are analyzed 20 economic partner countries with Albania These origin countries have invested about 95% of FDI stocks in Albania. The essential questions in our study are: How much are FDIs in Albania developed? How far is the fact of FDIs in Albania form potential level (compare with FDI stocks in the states of the Balkan Region)? If FDIs are under potential, how much is this gap? etc
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