The Effect of FDI in the Albania Economy

Abstract

FDI has been a major development of the last decades helping world economic development. It is known that the growth in FDI (Foreign Direct Investment) is increasing at the global scenario. We see this increase in the last decade, especially in the developing countries like Albania. They are important for developing countries, in transition and developed countries. This paper will investigate the effect of the economic indicators on the FDI (Foreign Direct Investment) in Albania. For the research Methodology the data’s of FDI, GDP Growth, Inflation from 1992 – 2012 have been use for the purpose of studies. To check the normalcy of the data’s various statistical tools are used as: Mean, Standard Derivation, Variance and Kurtosis. Regression and Correlation analysis have been used to study the relationship dependency of these variables. The findings show that there is a visible effect of the economic indicators of Albania on the FDI (Foreign Direct Investment). The results of the correlation and regression analysis will be illustrated by graphs where they show the significant impact of the economic indicators of the FDI. This study investigates the impact of the economic indicators of Albania on the FDI with the use of the current statistics. DOI: 10.5901/ajis.2014.v3n3p421