CHALLENGES OF FDI BEARIND R&D IN ALBANIA

Ermir I. Hajdini

Economy & Business Journal, 2014, vol. 8, issue 1, 627-632

Abstract: MultiNational Coparations (MNC) are playing a major role in research and development, not through their activity in origin countries but also in host countries through theirinvestments, therefore FDI’s. Globalization of R&D is not a new phenomenon what is new is their accelerated rhythm now days. However, the geografic display of R&D realised by MNC affiliates is not homogeneus and only few economic comunities have received the major part of those R&D. It is clear that the ability of the countries to attract and exploit the economic potential and the benefitial technological know-how depend on political, economical, legal, fisical and human infrastructure national culture along with the economical objectives and political economy pursued by the host country. A growing number of states have adobted friendly policies toward FDI bearing R&D, considering this as a way to improuve their inner reseouces and know-how competitivity. Even though, the ability to attract FDI’s and their help in “blossoming”of such FDI’s corelates on how the national policies of the host country cooresponds with the determing factors of R&D activities of MNC’s, the last being the major players in this globalized economy. The total flux of Foreing Direct Investment in Albania has significantlly risen from 258 mil euro in 2006 tomore than a bilion in 2012. Foreing Direct Investment notebly are in a positive trajectory despite the global or regional economic and financial crisis (Report of Foreing Invesment, METE 2012). However the Republic of Albania scores 25-th from 141 economies regarding the FDI performance, despite the potential to reach the 20-th position egsist. This paper intends toestablish a framework for exploring the major obstacles in attracting FDI’s bearing R&D’s and try to explain the reasons for Albanias limited sucsess.

Keywords: foreing direct investments; reseach and development proces; barierrs to trade; economic globalization (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:isp:journl:v:8:y:2014:i:1:p:627-632

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