Tag Archive | "Albania"

The Impact of Informal Economy in the Pension System, Empirical Analysis. The Albanian Case

By using a simple model, it will be analyzed the impact that informality has in the amount of consumption of the workers during their life cycle. This paper deals with the interconnections of underreported earnings, savings and old-age pension. The workers sampled for this analysis have been divided into three groups:
1. Low income employees,
2. Higher income employees who declare all incomes,
3. Employees who underreport their incomes.
In this paper the analysis is based on two pension models: the model that calculates pension in conformity with the incomes and the basic model, whose objective is poverty reduction for the “third age”. The major result is as follows:
Given the fact that the basic pension system favors employees that underreport their incomes and the fact that the impact of informality is greater in the basic system than in the proportional pension system, the application of basic pension system in the Albanian might be problematic.

  The Impact of Informal Economy in the Pension System, Empirical Analysis. The Albanian Case (1.4 MiB, 1,977 hits)

Posted in Economics, Information Technology, Volume V, Issue no. 1

The Role of FDI Inflow on the Post – Communist Albania’s Economic Growth

In this study we assess the role of FDI inflow on the post-communist Albania’s economic growth. The country has experienced a satisfactory growth rate during the transition period to market economy that followed the collapse of communism in the early 1990s. The opening of the country to the foreign world has been accompanied by a significant inflow of FDI that are found to have played a growth promoting role. The analysis is performed using annual data series from 1992 to 2012 obtained from the WDI. The ARDL bounds testing results indicate a significant long-term relationship between the country’s economic growth and the inflow of FDI. More specifically, a 10% increase in the FDI inflow is accompanied by a 1.41% increase of its economic growth rate. This finding implies that the country’s policymakers should try to create a favourable climate for FDI inflow to accelerate its economic growth.

  The Role of FDI Inflow on the Post - Communist Albania’s Economic Growth (337.5 KiB, 2,181 hits)

Posted in Economics, Knowledge Management, Volume IV, Issue no. 2

An Assessment of Demand for Imports through the VECM Model

This chapter analyses the factors that affect the demand for imports in Albania during the period 1999-2011. This paper use an error correction model to measure the elasticity of import flows of goods in Albania, related to real demand, developments in trade liberalization, and transfers from abroad and fluctuations in the value of currency; as well as shed light on economic policies in restricting trade deficits. Econometric analysis of this study includes a set of variables part of demand for imports.

Based on theoretical principles and research experience, the analysis in this paper consists in treating imports as a function not only of GDP (economic activity), effective exchange rate, but also as a function of remittances and the level of liberalization of the trade regime, represented by the average import tariff (trend which clearly shows the progress of trade liberalization). The assessment of the impact of these factors is achieved using the vector error correction model (VECM = vector error correction model). At first, the analysis begins by specifying tests theoretical hypotheses and analytical equations, which describes the theoretical relationship.

The following step consists on the selection of econometric model, which in our case was chosen to be the VECM model. The following section consists on a deeper analysis in econometric model specification, and the steps to follow to calculate its parameters.

  An Assessment of Demand for Imports through the VECM Model (768.6 KiB, 4,836 hits)

Posted in Economics, Volume III, Issue no. 6