Foreign Direct Investment (FDI), Trade, Corporate Governance, Economic Growth in Albania and Some OECD Countries

Abstract

Foreign Direct Investment statistics are compiled in compliance with the international standards, IMF and Eurostat requirements for the compilation of the Balance of Payments and International Investment Position. Foreign Direct statistics specify direct investment abroad by resident investors and investments in the domestic economy by non-residents. The balance of payments statistics present transactions related to direct investment for a certain period of time. Meanwhile, the International Investment Position shows the direct investment situation at the end of a reference period. Theoretical studies strongly support the positive effects of Foreign Direct Investment (FDI) in the Gross Domestic Product (GDP) of the host country through technology transfer, human capital formation, etc. Trade and Foreign Direct Investment has been treated as crucial factors underlying the relative growth rates experienced by the Albanian Economy, especially during the late years, thus, boosting economic growth in the country and improving the degree of integration of Albanian economy into the World markets. The paper outlines policy implications with respect to promoting relevant institutional policies for the enhancement of trade and FDI activities, which potentially could enhance economic growth. Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.

Keywords:Albania, OECD countries, FDI, Trade, Growth, etc.

DOI: 10.7176/RJFA/14-10-02

Publication date:May 31^st 2023