IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vxviiy2025i1p135-142.html
   My bibliography  Save this article

Foreign Direct Investment In Real Estate In Albania And Its Impact On Gdp

Author

Listed:
  • Antoneta POLO

    (Assoc.Prof.,"Eqrem Çabej" University, Gjirokastra, Albania)

  • Enkela CACA

    (Assoc. Prof.,"Eqrem Çabej" University, Gjirokastra, Albania)

  • Ilirjana ZYBERI

    (Assoc. Prof.,"Eqrem Çabej" University, Gjirokastra, Albania)

  • Christos Ap. LADIAS

    (Professor, Regional Science Inquiry Journal, Greece)

  • Filipos RUXHO

    (Faculty of Agribusiness, University of Haxhi Zeka, Peja, Kosovo,)

Abstract

Foreign Direct Investment (FDI) in real estate has played an increasingly significant role in Albania’s economic development, particularly over the past decade. This paper examines the relationship between real estate FDI and Gross Domestic Product (GDP) in Albania over a five-year period, analyzing whether foreign investment in the real estate sector has acted as a driver of economic growth or merely reflected broader macroeconomic trends. Our empirical findings suggest that FDI in real estate (RE) has had a positive contribution to GDP growth, particularly through increased urban development and rising property values in key economic centers like Tirana and coastal cities. This study provides valuable insights for policymakers, emphasizing the need for strategic reforms to enhance the benefits of real estate FDI while mitigating risks associated with speculative activities. This study, also, contributes to the literature on FDI and economic growth, offering a case-specific analysis of Albania and providing policy recommendations for optimizing the benefits of foreign investments in real estate.

Suggested Citation

  • Antoneta POLO & Enkela CACA & Ilirjana ZYBERI & Christos Ap. LADIAS & Filipos RUXHO, 2025. "Foreign Direct Investment In Real Estate In Albania And Its Impact On Gdp," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 135-142, June.
    • Handle: RePEc:hrs:journl:v:xvii:y:2025:i:1:p:135-142
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/June_2025/07.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alket Kullolli, 2014. "The Effect of FDI in the Albania Economy," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 3, June.
    2. Glaeser, Edward L. & Gyourko, Joseph & Saiz, Albert, 2008. "Housing supply and housing bubbles," Journal of Urban Economics, Elsevier, vol. 64(2), pages 198-217, September.
    3. Filipos RUXHO & Christos Ap. LADIAS, 2022. "Increasing Funding For The Regional Industry Of Kosovo And The Impact On Economic Growth," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 117-126, June.
    4. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
    5. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    6. Eglantina Hysa & Livia Hodo, 2016. "Foreign direct investment and economic growth in Albania: a co-integration analysis," International Economics, University of Lodz, Faculty of Economics and Sociology, issue 15, pages 234-244, September.
    7. Ashish Gupta & Graeme Newell & Deepak Bajaj & Satya Mandal, 2020. "Determinants of foreign and domestic non-listed real estate fund flows in India," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 38(6), pages 503-524, July.
    8. Dimitrios Tsiotas & Serafeim Polyzos, 2018. "The Complexity in the Study of Spatial Networks: an Epistemological Approach," Networks and Spatial Economics, Springer, vol. 18(1), pages 1-32, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Serafeim Polyzos & Dimitrios Tsiotas, 2025. "The Viable Business Practice of Optimizing the Occupational Accidents Cost: A Microeconomic Approach," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(1), pages 32-43, June.
    2. Susana Soares Pinheiro Pescada & Fernando Jose Calado e Silva Nunes Teixeira & Weska Glacielly Resende Pereira, 2025. "Organisational Culture at Public Hospital of Algarve: Internal Medicine Staff Perception," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(1), pages 11-21, June.
    3. Dimitris Kallioras & Spyros Niavis, 2025. "Regional Inequalities: Knowledge Frontiers and Debates," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(1), pages 66-79, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    2. Ying Xu, 2009. "How does financial system efficiency affect the growth impact of FDI in China?," Asia Pacific Economic Papers 383, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    3. Guariglia, Alessandra & Poncet, Sandra, 2008. "Could financial distortions be no impediment to economic growth after all? Evidence from China," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 633-657, December.
    4. Delgado, Michael S. & McCloud, Nadine & Kumbhakar, Subal C., 2014. "A generalized empirical model of corruption, foreign direct investment, and growth," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 298-316.
    5. Philipp Harms & Pierre-Guillaume Méon, 2013. "The Growth Effects of Greenfield Investment and Mergers and Acquisitions: Econometric Investigation and Implication for MENA Countries," Working Papers 794, Economic Research Forum, revised Nov 2013.
    6. Shaukat, Badiea & Zhu, Qigui & Khan, M. Ijaz, 2019. "Real interest rate and economic growth: A statistical exploration for transitory economies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 534(C).
    7. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    8. Philippe Aghion & Diego Comin & Peter Howitt & Isabel Tecu, 2016. "When Does Domestic Savings Matter for Economic Growth?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(3), pages 381-407, August.
    9. Mollick, André Varella & Cabral, René & Carneiro, Francisco G., 2011. "Does inflation targeting matter for output growth? Evidence from industrial and emerging economies," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 537-551, July.
    10. Laura Alfaro & Areendam Chanda & Sebnem Kalemli-Ozcan & Selin Sayek, 2006. "How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages," NBER Working Papers 12522, National Bureau of Economic Research, Inc.
    11. Ying Xu, 2012. "How does financial system efficiency affect the growth impact of FDI in China?: Evidence from provincial data 1999-2006," China Finance Review International, Emerald Group Publishing, vol. 2(2), pages 406-428, August.
    12. David Mayer‐Foulkes & Peter Nunnenkamp, 2009. "Do Multinational Enterprises Contribute to Convergence or Divergence? A Disaggregated Analysis of US FDI," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 304-318, May.
    13. Philipp Harms & Pierre†Guillaume Méon, 2018. "Good and useless FDI: The growth effects of greenfield investment and mergers and acquisitions," Review of International Economics, Wiley Blackwell, vol. 26(1), pages 37-59, February.
    14. Nasim, Asma & Ullah, Subhan & Kim, Ja Ryong & Hameed, Affan, 2023. "Energy shocks and bank efficiency in emerging economies," Energy Economics, Elsevier, vol. 126(C).
    15. Santos, Eleonora, 2017. "Externalities from FDI on domestic firms’ Productivity: A Literature Review for Developed Countries," MPRA Paper 88958, University Library of Munich, Germany.
    16. Teixeira, Aurora A.C. & Fortuna, Natércia, 2010. "Human capital, R&D, trade, and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," Research Policy, Elsevier, vol. 39(3), pages 335-350, April.
    17. Silberberger, Magdalene & Königer, Jens, 2016. "Regulation, trade and economic growth," Economic Systems, Elsevier, vol. 40(2), pages 308-322.
    18. Quichun He & Meng Sun & Heng-Fu Zou, 2013. "Financial deregulation, absorptive capability, technology diffusion and growth: Evidence from Chinese panel data," Journal of Applied Economics, Universidad del CEMA, vol. 16, pages 275-302, November.
    19. Gomes Neto, Delfim & Veiga, Francisco José, 2013. "Financial globalization, convergence and growth: The role of foreign direct investment," Journal of International Money and Finance, Elsevier, vol. 37(C), pages 161-186.
    20. Hasanov, Fakhri J. & Aliyev, Ruslan & Taskin, Dilvin & Suleymanov, Elchin, 2023. "Oil rents and non-oil economic growth in CIS oil exporters. The role of financial development," Resources Policy, Elsevier, vol. 82(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:xvii:y:2025:i:1:p:135-142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dimitrios K. Kouzas (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.