Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) May 2015 Vol. 4(5), pp 186-189

Copyright © 2015 Global Advanced Research Journals   

 

Review

Public Debt and Economic Growth, Case of Albania

Dr. Fatbardha Kadiu

University of “Aleksander Moisiu” Durres, Department of Public Administration

Email: fatbardhakadiu@yahoo.com

Accepted 27 March 2015
 

Abstract 

After many debates in the recent days about the considerable increase of public debt in Albania, mainly after the change in law where as borrowing from third parties won’t be necessary to pass through the parliament, there exist many comments if the debt caused positive or negative effects on the economic development of our country. The purpose of this paper is to determine if there exist a correlation between economic growth, where the economic growth will be considered as the increase in GDP, and the public debt. Through this paper I will tend to define an economic model which can effect positively on the economic growth of our country. The results of the linear correlation model of GDP for a period of time 1991 – 2012 as a dependent variable and the public debt as an independent variable on the same period of time.  

Keywords: Public debt, Economic growth, Gross Domestic Product  

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