Current account balance in Albania and the influence of different factors on it
by Eleni Vangjeli; Suela Gerdhe; Marinela Teneqexhi
International Journal of Trade and Global Markets (IJTGM), Vol. 5, No. 3/4, 2012

Abstract: Economic, political and social changes that characterised Albania during the transition period have affected its current account balance and other macroeconomic indicators. The fact that current deficit has been present for a decade from now and going upward after 1998, points out that current deficit financing must be at the hub of economic policies. In this research paper we would like to highlight the links between the main macroeconomic variables and the influence of different factors on current account balance using the regression procedure. We draw the conclusion that there exists a significant and negative relation between the current account balance and GDP per capita, Foreign Direct Investments (FDI) and change in exchange rate.

Online publication date: Wed, 31-Dec-2014

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