Studim empirik: Roli i shpenzimeve qeveritare në rritjen ekonomike (Rasti i Shqipërisë)
Empirical study: The role of government spending in economic growth (The case of Albania)

Summary/Abstract: The objective of this study is to apply the productive and unproductive government expenditures theory to an empirical model. During the last several years, Albania has experienced a considerable economic slowdown, as well as a below-potential economic growth. The high level of public debt has forced the government to undertake consolidating fiscal policies. As fiscal policies are changed and reformed, it is probable that the structure of government spending will change. Our predicament now becomes the fact that such changes, if not properly and closely analyzed, could have a detriment effect on the economy. Thus, the purpose of this study is to present an overview of the role of total and sector-based government expenditures on economic growth. The linear regression presented here aims to explain the variance of economic growth through the variance of government expenditures. A descriptive analysis will then interpret the results considering the size and yield of the expenditures.

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