Foreign direct investment in developing countries: The case of Albania.

Abstract

Foreign investments are considered to have played a very important role in rebuilding the economies of the 
countries of Eastern Europe and Central Europe during their transition from centrally planned economies to 
market economies. Of long was recognized that FDI brings benefits for these countries, FDIs are important 
because they include bringing new technologies and knowledge to domestic firms, increased competition, and 
further increasing access for exports abroad. 
The distribution of FDI among developing countries is irregular: some of them have more difficulties to attract 
foreign investment than others. This study analyzes the development and distribution of foreign direct investment 
in the region, focusing on the case of Albania.  
This paper analyzes the opportunities and weaknesses of Albania in the context of their impact on the current 
situation of incoming foreign investment and aims to recommend strategies for improvement of this situation.