CONCESSIONS IN THE HYDROPOWER SECTOR IN ALBANIA – CHALLENGES AND OPPORTUNITIES

Durim Kraja

Studies in Business and Economics, 2014, vol. 9, issue 1, 73-80

Abstract: Coming out of a centralized system, faced with a small market which would not be able to create economies of scale, much competition from the other Western Balkan states, political challenges on strategies for attracting foreign investments, poor government budget, informal economy, Albania was in a desperate need to find its niche in the market. Albania is a market of 3.5 million people, with a yearly low-medium income averaging 4000 USD yearly/PP. As the emigrated population grew more and more distant from the home country, settling and integrating within their new resident countries, and the phenomena happening before the start of the world financial crises, Albania could no longer rely on remittances to boost its economy. The country had to take economic measures to attract new foreign capital. The enormous increase in FDI flows across countries is one of the clearest signs of the globalization of the world economy over the past 20 years (UNCTAD, 2006). Also, Chakrabarti (2001) concludes that “the relation between FDI and many of the controversial variables (namely, tax, wages, openness, exchange rate,tariffs, growth and trade balance) are highly sensitive to small alterations in the conditioning information set”.

Keywords: energy; hydropower; loan; concession; bank (search for similar items in EconPapers)
Date: 2014
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