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An Empirical Study in Albania of Foreign Direct Investments and Economic Growth Relationship

Author

Listed:
  • Lorena Cakerri

    (Faculty of Economy, University of Vlora, Albania,)

  • Oltiana Muharremi

    (Meehan School of Business, Stonehill College, North Easton, MA, USA.)

  • Filloreta Madani

    (Faculty of Economy, University of Vlora, Albania,)

Abstract

Albania has managed to attract increasing foreign direct investments (FDI) inflows as a result of achieving political and macroeconomic stability, improving the business climate and legislation. FDI is an essential source of sustained economic growth for Albania, bringing in capital investment, advanced technology, and highly qualified management. FDIs have helped the country finance existing account deficits, further develop the financial sector, and increase employment possibilities. This paper aims to study the empirical relationship between FDI and economic growth in Albania from 2002 to 2017 using time series data. This research will assess whether the inflow from foreign direct investors into Albania has created a positive cointegration relationship on economic growth.

Suggested Citation

  • Lorena Cakerri & Oltiana Muharremi & Filloreta Madani, 2020. "An Empirical Study in Albania of Foreign Direct Investments and Economic Growth Relationship," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 193-202.
    • Handle: RePEc:eco:journ1:2020-02-21
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    References listed on IDEAS

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    Cited by:

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    3. Iulia Cristina Iuga & Anastasia Mihalciuc, 2020. "Major Crises of the XXIst Century and Impact on Economic Growth," Sustainability, MDPI, vol. 12(22), pages 1-20, November.

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    More about this item

    Keywords

    Foreign Direct Investment; economic growth; development; cointegration; VECM.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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