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Foreign Direct Investments in Albanian Market as part of Global Market and Globalization.

Kodhelaj, Mimoza and Molla, Jonida (2010): Foreign Direct Investments in Albanian Market as part of Global Market and Globalization. Published in: Financial Management Association International (FMA) No. Finance, Markets, Investments, and Risk Management St. John's University New York, New York (20 May 2011)

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“People are worried about the unknown. They are worried about things that they are unwilling to invest some time in and learn about. I don't think most of these people are going to be automated out of existence1.” Michael Bloomberg Mayor of New York City

Taking inspiration from the above quotation, through this paper we will present the changes occurring in Albania’s transitive economy which aims to become more prominent in the regional and even global economy. As two young researchers, we are aware of our limited abilities to change the actual economic situation in Albania. However, our research is an indicator not only of our motivation towards understanding and promoting economic development in our country, but also of the overall potential Albania has to realize in order to fully integrate in the global markets. This paper will attempt to provide answers to the following issues:

- Effects of globalization on Albanian economy

- Foreign investments in an emerging market such as that of Albania and reasons why foreign investors should invest in Albania

- Constraints with a negative impact on investment in Albania

- Macroeconomic factors determining FDI in Albania

- Benchmarks of Albanian economy and FDI on a regional level

- Competitive approaches of Albanian Market

The methodology that we will use in the content of this paper will include qualitative economic analyses, comparative analyses and quantitative data. We will attempt to build up an econometric model identifying the main macroeconomic factors that determine FDI in Albania. At the end, we will present our main findings, conclusions, and recommendations.

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