The Recent Trend of Foreign Direct Investment and Its Significance for Albania's Economic Growth

Over the past few decades, numerous scholars have examined the connection between economic growth and foreign direct investment (FDI) in a variety of national situations. Despite the inclusion of multiple models and components, it has been observed that the results have not always been consistent. The purpose of this study is to determine whether foreign direct investment affects Albania's economic growth. The information was gathered from secondary sources, including the Bank of Albania, the World Bank, the International Monetary Fund (IMF), INSTAT, and the Ministry of Finance and Economy. This report examines FDI inflows during the last ten years in-depth, focusing on sectoral distribution, contributing factors, and significant changes. Albania has experienced a healthy and expanding FDI inflow over the last three decades, which has significantly impacted a few economic sectors. The findings demonstrated that FDI has significantly contributed to Albania's GDP development and economic reform. More foreign direct investment (FDI) than domestic investment contributes to Albania's economic growth.