Journal of Knowledge Management, Economics and Information Technology

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, 2,677 hits)

In discussions about the efficacy of monetary policy instruments, attention is often focused on analyzing the money supply process. Monetarists, in general, argue that the monetary authorities can exercise effective control over the stock of money; others, especially those who share the new view of monetary theory argue that the determination of the stock of money is part of the economy. In this view, the stock of money is the outgrowth of the behavior of the public, the financial sector (banks), the finance ministry, and the rest of the world as well as of the actions of the central bank. The paper investigated the co-integrating property and stability of the supply of money function in Iran. The paper employed the ARDL approach together with CUSUM and CUSUMSQ tests. The results show that M1 and M2 is co- integrated with net claims on the government, net foreign assets, and rate of profit on bank deposit (interest rate and a major implication of using interest rate elasticity estimates from M2 function is that money is endogenous.

  How Much Control Dose Central Bank of Iran over Money Supply? (899.1 KiB, 3,638 hits)