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Impact of Final Consumption, Domestic Investment, Exports, and Imports on Economic Growth in Albania

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  • Akermi, Najwa
  • Ben Yedder, Nadia
  • Bakari, Sayef

Abstract

The aim of this paper is to explore the impact of final consumption, domestic investment, exports and imports on economic growth in the case of Albania during the period 1996 – 2021. By using cointegration analysis, VECM model and WALD test, empirical analysis indicated that there is no causality relationship between final consumption, exports, domestic investment, imports and economic growth in the long run and in the short run. These findings present the critical economic situation of Albania, which stands in need of an entry of urgent economic reforms and strong strategies to boost economic growth.

Suggested Citation

  • Akermi, Najwa & Ben Yedder, Nadia & Bakari, Sayef, 2023. "Impact of Final Consumption, Domestic Investment, Exports, and Imports on Economic Growth in Albania," MPRA Paper 118308, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118308
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    References listed on IDEAS

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    Cited by:

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    2. Ben Yedder, Nadia & El Weriemmi, Malek & Bakari, Sayef, 2023. "Boosting Economic Growth in Angola: Unveiling the Dynamics of Domestic Investments and Exports," MPRA Paper 119480, University Library of Munich, Germany.
    3. Bakari, Sayef, 2024. "The Role of Digitalization, Natural Resources, and Trade Openness in Driving Economic Growth: Fresh Insights from East Asia-Pacific Countries," MPRA Paper 121643, University Library of Munich, Germany.
    4. El Weriemmi, Malek & Bakari, Sayef, 2024. "The Impact of Agricultural Exports on Economic Growth: New Evidence from Low Income Countries," MPRA Paper 121631, University Library of Munich, Germany.
    5. Bakari, Sayef, 2024. "Unlocking Prosperity: Fresh Insights into Economic Growth Through Financial Development, Domestic Investment, and Corruption Trends in LAC Countries," MPRA Paper 120411, University Library of Munich, Germany.
    6. Bakari, Sayef, 2024. "Causality between Domestic Investment and Economic Growth: New Evidence from Argentina," MPRA Paper 121799, University Library of Munich, Germany.

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    More about this item

    Keywords

    Final Consumption; Domestic Investment; Exports; Imports; Economic Growth; VECM; Albania.;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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