Innovation, Foreing Direct Investment And Challenges For Government Reform
Emir I.Hajdini, Hajdini
Keywords: Foreing Direct Investments, research and development, transition economies
ABSTRACT Multi-national Corporations (MNC) are being playing a major role on research and development, not only through activities in their home country but also in host countries through investments. The globalization of R&D is not a new phenomena, the novel element lays in the accelerated steps these last year. However the geographic disperse of R&D, realized through their branches, is not homogenous and only a few economic communities have taken the major part. It is obvious that the abilities host economies posses to attract FDI’s are subject to political, economical legal national culture and off course to physical and human infrastructure in line with economical objectives and economic national economies. An ever growing number of countries have developed a positive stance toward FDI’s that bears R&D, considering this a way to scale up their competitiveness. The total flux of FDI in Albania is significantly risen, from 258 mil $ in 2006 in 705 mil$ in 2009 në 1.190 bill. $ in 2011. The foreign direct investments have been in positive trends despite the global and regional financial and economical crisis, evidently reflecting a continuing rise through 2012. (Report of Foreign Investments 2011). However, the Republic of Albania scores in the 25th position, this number can be advance to 20.This article aims at establishing a framework for the exploration of the obstacles to attract R&D relating FDI’s and present the reasons for this moderate success on behalf of Albania. First off, the factors that impacts globalization are presented, followed by major reasons why a certain country has been chosen. The main obstacles on attracting these investment are been analyzed. Finally the findings are presented.
. Prasad, E., R. Rajan, and A. Subramanian, 2007, “Foreign Capital and Economic Growth, “Brookings Papers on Economic Activity.
. Prasad, E., K. Rogoff, S. Wei, and M.A. Kose, 2003, Effects of Financial Globalization on Developing Countries: Some Empirical Evidence, IMF Occasional Paper 220 (Washington: International Monetary Fund).
. Alfaro, L., A. Chanda, S. Kalemli-Ozcan, and S. Sayek, 2004, “FDI and economic growth: the role of local financial markets,” Journal of International Economics, 64, pp. 89–112.
. Kose, A., E. Prasad, K. Rogoff, and S. Wie, 2006, “Financial Globalization: A Reappraisal”, IMF Working Paper WP/06/189.
. Lee Chen and Ahn, 2001, “Informational Quality of Financial Systems and Economic Development: An indicators Approach” Working Paper, Asia Development Bank Institute, Tokyo, June 2001.
. Kokko, A., Productivity Spillovers from Competition between Local Firms and Foreign, NBER Working Paper Series 9489, Cambridge, MA 2003.