The factors affecting the trend of FDI-s in Albania during the last 5 years

Blerta Dragusha, Erjola Barbullushi 
University of Shkodra “Luigj Gurakuqi”, Shkoder, Albania
DOI: https://doi.org/10.31410/eraz.2018.866

4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia, ISBN 978-86-80194-12-7

Abstract

Foreign Direct investments are considered very important for a country’s economic growth. Foreign direct investments in Albania have had their trend over the last 25 years. Over recent years, a high priority has been given to foreign investments and potential investors through the liberalization of investment absorption policies. In line with these policies, a series of reforms and laws have been implemented, guaranteeing and supporting foreign investments. With a liberal legislation where foreign and domestic investors have the same obligations and rights, the Albanian Government has given particular priority to sectors with high potential to develop such as: Renewable Energy, Mining Industry, Tourism, Industry Processing, Agriculture, Transportation and Logistics, as well as the Information and Communication Technology sector.
Foreign Direct Investments inflows increased by 15.7% in 2017 compared to the previous year. But S & P warns that this growth is coming as a result of major projects, and then will fall to 10% of GDP in 2019-2020.
Albania offers great investment opportunities in sectors with sustainable economic growth such as: Energy & Miner Industries; Transport & Logistics; Tourism; Agriculture; Manufacturing.
In this paper, through the data provided by Albanian and foreign institutions we will make a description of the trend of Foreign Investments in Albania over the last 5 years, focusing on the type of investments, country of origin and industries where they are concentrated.
Then we will analyze the main factors that have affected the actual level of Foreign Investments in Albania over the last 5 years