Title: Current account balance in Albania and the influence of different factors on it

Authors: Eleni Vangjeli; Suela Gerdhe; Marinela Teneqexhi

Addresses: Department of Finance, University Fan S.Noli Korce, Albania, Boulevard Rilindasit, Korce 7001, Albania ' Department of Finance, University Fan S.Noli Korce, Albania, Boulevard Rilindasit, Korce 7001, Albania ' Department of Finance, University Fan S.Noli Korce, Albania, Boulevard Rilindasit, Korce 7001, Albania

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.

Keywords: current account balance; current deficit; international trade; economic policies; macroeconomic indicators; FDI; foreign direct investment; exchange rate; Albania; GDP per capita; exchange rates.

DOI: 10.1504/IJTGM.2012.049987

International Journal of Trade and Global Markets, 2012 Vol.5 No.3/4, pp.235 - 253

Published online: 31 Dec 2014 *

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