Posted on 15 October 2015.
The economic growth is the most important indicator in determining the welfare of a country, thus affecting the growth of income level. The economic growth is one of the indicators most used by economists, governments and international economic organizations and is also considered as synonymous with development.
Economic growth is an indicator of the performance of the management of economic resources of the period by identifying the economy of a country.
Given the great importance that has the economic growth for a country, the study makes an analysis of the process of economic growth in Albania after 1990 and until our days, by determining which the main sources that have provided growth were. But, despite the problems arising in this regard, the study currently is trying to show which should be the new model that will provide long-term economic growth of the country.
The Factors that Affect the Economic Growth in Albania (827.8 KiB, 583 hits)
Posted in Economics, Information Technology, Knowledge Management, Volume V / 2015, Volume V, Issue no. 5
Posted on 15 April 2014.
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, 1,186 hits)
Posted in Economics, Knowledge Management, Volume IV, Issue no. 2
Posted on 15 April 2013.
The role of FDI inflows and outflows to host countries and from the source countries emerged in the 1980s as the major vehicle technology transfer that accelerated the globalization or international integration of 25 leading OECD economies over a period of 25 years (1983-2007). Although neoclassical and endogenous growth theories provide unequivocal support for FDI flows because they generate positive externalities or spillover effects through channels of GDP growth, capital formation and R&D, the empirical evidence in support of these claims are mixed. The panel data econometrics performed using a new multiplicatively complete index of total factor productivity provide fresh insights on the cross-border FDI generated through technology transfer and other channels. The empirical findings for the OECD countries are markedly different from the spillover effects on developing countries that are plagued by technology absorptive capacity effects due to the operation of threshold effects of underdeveloped human capital resources. The empirics on cross-border FDI flows and the spillover effects that they generate in OECD countries will provide much needed information to design and implement policies to harness the net benefits from cross-border FDI flows and shed light on the design of policies to reconcile the conflicting policies of austerity and growth that are required to prevent the sovereign debt racked euro-zone countries from imploding the single currency union based on the euro.
Perspectives on Total Factor Productivity and Foreign Direct Investment in OECD Countries based on Panel Data Econometrics (707.4 KiB, 1,326 hits)
Posted in Economics, Volume III, Issue no. 2
Posted on 15 December 2011.
Introduction to market economy brought the need to attract FDI in Albanian economy. Governments of different countries often used several incentives to attract foreign investors. In this aspect, Albania has attempted to attract FDI by applying several measures in order to create a favorable environment to foreign investments. This study considers the relation between demanders of financial aspects taking into account thus the incentive packages, the business sector where these packages are applied, tax levels and the opportunity for foreign investments in the coming years. In order to provide thorough information, the study will be focused on analyzing the conclusions of the interviews made to foreign investors who have their activity on Albania. The study will include also the results of a statistical analysis. It is used to verify if there exist a relation between incentives and FDI level. The contingency test is χ2.
Financial Incentives and their Impact for Attracting FDI Survey with Foreign Investitures in Albania (657.8 KiB, 2,695 hits)
Posted in Economics, Issue no. 7