Liria Ekonomike si faktor përcaktues i flukseve hyrëse të IHD – Rasti i Shqipërisë
Economic Freedom as a determining factor for DFI influxes – Albanian case

Summary/Abstract: In the present framework of globalisation, the economic growth depends on two main factors: Direct Foreign Investments (DFI) and the development of small and medium companies (SMC). While DFI are the main source of foreign financing, they could also increase the fix capital and help in achieving and preserving positive values in the payment balance. DFI have the potential for generating employment, increase of productive capacity, transferring capacity and new technology as well as increase of exports. The range of factors to determine DFI influxes into a country is very broad. Some are related to the internal factors of the investing company (foreign investor); while a lot of others are directly related to special factors of the country, where the investment will take place. (OLI and Dunning Theory) (Dunning 1993). The Economic Freedom, which is defined as “material independence of the individual over his/her property and work from the state and other organised groups”, consists of a number of complex factors which are directly related to the specific factors of the country where the investment will be made, or in other words, to the business environment in a certain country. In case of a weak investment climate due to taxes, tariffs, fines, corruption and need for extra services, the investing transaction costs get increased with investments directed elsewhere. The same thing could be said about the cases when costs of working force, transport and energy are not competitive in that country

• Details
• Contents