Albanian Economic Policies on Foreign Direct Investments during 1990-2009

Ilirjana Zyberi, Klodian Muço, Lindita Rova

Abstract


Attracting FDI is top priority to Albania not only to finance its budgets, but moreover to improve the economic development and standard of living. High inflow of FDI can increase efficiency of the production and introduce new products on the markets. Experience has shown that foreign direct investment has had a major impact on the economic growth of a country. Some of these benefits are: a) increase in competitive potential between domestic production enterprises. b) the entrance of advanced technology c) progress in knowledge of various fields of production resulting from contacts with foreign customers d) possibilities for the optimal utilization of human resources and help to increase their professional skills etc. In this paper we will analyze FDI on a national introducing three models: the first model is going to analyse the monetary policies, then fiscal policies and in the end we are going to take into consideration all the figures on a national scale taking into account the corruption, as well. We will confirm the important role of the monetary and fiscal policy to attract foreign investments in Albania aiming to serve the economic growth. Based on economic results, we easily observe the dependency of foreign investments on profit tax, on immigrants’ shares, on interest norm and on the monetary aggregate M3. The most unexpected result is that no important index exists between FDI and corruption.

DOI: 10.5901/mjss.2015.v6n3p289


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This work is licensed under Creative Commons Attribution 3.0 License.

Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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