What is the attractiveness of Albania for Foreign Direct Investment (FDI) flows?

Table of Contents

1 INTRODUCTION

1.1 Chapter Overview

1.2 Academic Beckground

1.3 Context

1.4 Research Question and Associated Objectives

1.5 Structure of the Dissertation

2 FDI DEFINITION, THEORY AND EVIDENCE

2.1 Chapter Overview

2.2 Defining FDI

2.3 Flows of FDI

2.4 Types of FDI

2.5 FDI Theory

3 REVIEW OF LITERATURE ON HOST COUNTRIES ATTRACTIVENESS ON FDI

3.1 Chapter Overview

3.2 Host Country Determinants: Their Role and Importance

3.2.1 Political and Legal System

3.2.1.1 Political stability and Government effectiveness

3.2.1.2 Corruption and Bureaucracy

3.2.1.3 Rule of law

3.2.1.4 Taxation, Privatization and Trade policies

3.2.1.5 Investment incentives

3.2.2 General Macroeconomic Conditions

3.2.2.1 Market Size

3.2.2.1.1 GDP

3.2.2.1.2 Market growth

3.2.2.2 Economic stability

3.2.2.3 Economic openness

3.2.3 Resources

3.2.3.1 Natural resources

3.2.3.2 Infrastructure

3.2.3.2.1 Quality of transportation

3.2.3.2.2 Energy availability and costs

3.2.3.2.3 ICT infrastructure

3.2.3.3 Human capital and costs

3.3 Concluding Remarks

4 METHODOLOGY

4.1 Chapter Overview

4.2 Research Philosophy

4.3 Research Approach

4.4 Research Strategy

4.5 Time Horizons

4.6 Research Method

4.7 Quality of Research

4.8 Research Ethics

4.9 Research Limitations

5 ANALYSIS AND EVALUATION OF ALBANIA’s ATTRACTIVENESS TO FDI FLOWS

5.1 Chapter Overview

5.2 Albania: Country Profile

5.2.1 Albania’s Key Economic Indicators

5.3 Stylised Facts on Albania’s FDI

5.4 The Application of the Framework

5.4.1 Political and Legal System

5.4.1.1 Political Stability and Government Effectiveness

5.4.1.2 Corruption and Bureaucracy

5.4.1.3 Rule of Law

5.4.1.4 Taxation, Privatization and Trade Policies

5.4.1.5 Investment Incentives

5.4.2 General Macroeconomic Conditions

5.4.2.1 Market Size

5.4.2.1.1 GDP

5.4.2.1.2 Market Growth

5.4.2.2 Economic Stability

5.4.2.3 Economic Openness

5.4.3 Resources

5.4.3.1 Natural Resources

5.4.3.2 Infrastructure

5.4.3.2.1 Quality of Transportation

5.4.3.2.2 Energy Availability and Costs

5.4.3.2.3 ICT Infrastructure

5.4.3.3 Human Capital and Costs

5.4 Concluding Remarks

6 CONCLUSIONS

6.1 Chapter Overview

6.2 Summary of Findings

6.3 Policy Implications

6.4 Limitations and Profitable Avenues for Future Research

Research Objectives and Themes

This dissertation aims to assess and evaluate the attractiveness of Albania for Foreign Direct Investment (FDI) inflows. By examining existing theoretical frameworks and host country determinants, the research seeks to identify key factors influencing investment decisions in the Albanian context and to derive actionable policy implications to enhance future FDI inflows.

• Theoretical foundation of FDI and global investment trends
• Critical analysis of host country determinants including political, legal, and macroeconomic variables
• Evaluation of Albania’s current investment climate and economic performance
• Identification of barriers and opportunities for foreign investors in Albania
• Formulation of policy recommendations to boost inward investment

Excerpt from the Book

Summary of Chapters

1 INTRODUCTION: This chapter introduces the topic of FDI, sets the context for the Albanian case, and defines the research question, objectives, and structure of the dissertation.

2 FDI DEFINITION, THEORY AND EVIDENCE: This chapter reviews theoretical and empirical literature regarding FDI, defines the concept, examines global trends, and explores various motivations and theories behind international production.

3 REVIEW OF LITERATURE ON HOST COUNTRIES ATTRACTIVENESS ON FDI: This chapter provides a critical literature review on potential factors influencing investor decision-making, leading to the development of a framework of host-country determinants.

4 METHODOLOGY: This chapter describes the research process, philosophical approach (positivism), and data collection methods used to conduct the study.

5 ANALYSIS AND EVALUATION OF ALBANIA’s ATTRACTIVENESS TO FDI FLOWS: This chapter applies the developed framework to analyze Albania's economic profile, its historical FDI trends, and evaluates specific determinants like political stability, economic openness, and infrastructure.

6 CONCLUSIONS: This chapter summarizes the findings of the study, provides policy recommendations to enhance Albania’s investment climate, and suggests avenues for future research.

Keywords

Foreign Direct Investment, FDI, Albania, Host Country Determinants, Economic Growth, Privatization, Investment Incentives, Macroeconomic Stability, Market Size, Infrastructure, Human Capital, Regulatory Environment, Political Stability, Trade Policy, Globalization

Frequently Asked Questions

What is the core subject of this dissertation?

The research focuses on analyzing the attractiveness of Albania as a host country for Foreign Direct Investment (FDI) inflows and identifying the specific factors that influence these investment decisions.

What are the central thematic areas of the research?

The study centers on three main pillars: political and legal systems, general macroeconomic conditions, and the availability of resources (infrastructure and human capital).

What is the primary objective of this work?

The primary goal is to evaluate Albania's attractiveness to FDI by utilizing a host-country determinants framework and to propose policy recommendations to increase future inward investment.

Which scientific methodology is applied?

The author adopts a positivistic research philosophy using a deductive approach and a case study strategy to systematically analyze secondary data and theoretical frameworks.

What is covered in the main body of the work?

The main body includes a critical review of FDI theories, an investigation into host country determinants, a detailed country profile of Albania, and an application of a synthesized analytical framework to the Albanian economy.

Which keywords best describe the work?

Key terms include Foreign Direct Investment (FDI), Albania, host country determinants, economic development, privatization, investment incentives, and macroeconomic stability.

How does the author view the influence of the global financial crisis on Albania?

The author observes that while Albania was relatively resilient during the crisis compared to other countries, the recession did lead to increased economic uncertainty and challenges for continued FDI growth in 2010.

What specific role does privatization play in the Albanian economy according to the text?

Privatization is highlighted as a critical tool for modernizing state infrastructure, attracting foreign interest in key sectors like banking and energy, and facilitating the transition to a market economy.