Global Financial Crises: the Impact on Albanian Economic Growth

Abstract

This study presents the main causes and characteristics of the 2008 world financial crises, focusing on its impact on Albania`s economic growth; by examining the channels through which the global crises affected it. The methodology used to measure the impact of the crises is regression analysis and Johansen co-integration test, for exports and remittances as two important influencing components of GDP. The data is taken by INSTAT and World Bank on a quarterly basis, for 2004-2013 interval. The analysis showed that the crisis had a negative impact to a range of indicators causing a decline in emigrants’ remittances, exports, FDI, affecting so GDP and the entire economic growth of Albania.