SWOT Analysis of Albania for Foreign Direct Investment

Abstract

Foreign direct investment plays an important role in economic development of the country. For this reasons, governments use
incentive policies to attract more foreign investors. Albania has attracted a remarkable amount of FDI inflows in recent years. In key
sectors like mining, banking and telecoms, the Albanian economy is dominated by foreign investors. That suggests that there is more
possibility for increased FDI in the country. It is important that the types of FDI Albania attracts are those with the potential to benefit the
economy. The high share of FDI in certain industries of the country is partly a sign of weaknesses in the domestically-owned part of
these industries. The objective of this study is to perform a SWOT analysis of Albania for FDI after covering the determinants and host
economy effects of FDI.