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A Literature Review on the Relationship Between Foreign Direct Investment and Economic Growth in Balkan Countries

Author

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  • Armira Lazaj

    (Polytechnic University of Tirana, Tirana Albania)

Abstract

The process of globalisation has made the world a single global village. This process is now irreversible; it was primarily caused by trade and investment across economies resulting in strong worldwide market for goods, services and capital. Foreign Direct Investment is one of the important outcomes of globalisation. The world is full of development opportunities, covering the entire range from countries that have just begun to modernise to the richest countries. FDI help countries secure financing for their economic growth. These investments promote economic growth in both the host country and the country of origin. The host country benefits from FDI by financing projects planned, developing new technologies and generating new jobs. Investing companies benefit from the expansion of markets and, consequently, the growth of their shares in international markets. This paper targets and discusses the main theoretical aspects of existing literature pertaining to FDI. It starts with some definitions given by different institutions or authors regarding FDI, continuing with a history of foreign direct investments from ancient times to the present.

Suggested Citation

  • Armira Lazaj, 2022. "A Literature Review on the Relationship Between Foreign Direct Investment and Economic Growth in Balkan Countries," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 20(1), pages 67-80.
    • Handle: RePEc:seb:journl:v:20:y:2022:i:1:p:67-80
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    File URL: http://www.asecu.gr/Seeje/issue38/issue38-lazaj.pdf
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    References listed on IDEAS

    as
    1. Miao Wang, 2009. "Manufacturing FDI and economic growth: evidence from Asian economies," Applied Economics, Taylor & Francis Journals, vol. 41(8), pages 991-1002.
    2. Kojima, Kiyoshi, 1973. "A Macroeconomic Approach to Foreign Direct Investment," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 14(1), pages 1-21, June.
    3. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    4. Noorbakhsh, Farhad & Paloni, Alberto & Youssef, Ali, 2001. "Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence," World Development, Elsevier, vol. 29(9), pages 1593-1610, September.
    5. Easterly, William, 2001. "The Lost Decades: Developing Countries' Stagnation in Spite of Policy Reform 1980-1998," Journal of Economic Growth, Springer, vol. 6(2), pages 135-157, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    (FDI) Foreign Direct Investment; Economic Development/Growth; Balkan Countries International Trade;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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