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Tfp And Endogenous Growth In South East European Countries With Special Focus On Albania

  • Elida Liko

    (Department of Economics, University of Tirana, Albania)

  • Tonin Kola


    (Department of Economics, University of Tirana, Albania)

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    The main objective of this paper is to determine the forces that have driven the economic growth in Albania relative to Southeast and Central European countries from the beginning of transition period year 1993 until 2008, before the global crises was spread in developing countries. We are based in Growth –Accounting approach in order to specify the role of total factor productivity (TPF) as growth enhancing factor in different phases of their economic development and an econometric analyze of major growth factors based on endogenous growth theory. The main findings of this paper are: (1) TFP and capital accumulation has been playing an important role for all countries under survey, the impact of labor as growth enhancing factor has been limited (2) macroeconomic stability,trade openness, and investment in infrastructure matters to growth. Therefore we support the idea that Albania government should give priority of scare government resources towards these sectors.

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    Article provided by Romanian-American University in its journal Romanian Economic and Business Review.

    Volume (Year): 6 (2011)
    Issue (Month): 2 (June)
    Pages: 69-79

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    Handle: RePEc:rau:journl:v:6:y:2011:i:2:p:69-79
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