PUBLİC DEBT AND FACTORS İNFLUENCİNG THE REAL GDP GROWTH: CASE OF ALBANİA

Abstract

The aim of the current article is to examine the role of public debt on the economic growth of Albania. For this purpose, the current study uses secondary data from the Bank of Albania, the Ministry of Finance, and the International Monetary Fund (IMF). This study has extracted the data from above mentioned resource for the period, 1981 to 2019. The present article executes the error correction model (ECM) and Granger casualty test to examine the nexus among the variables.  Study findings show that the internal sources of public debt have a positive while external source of external debt have a negative association with economic growth. These results are helpful for regulators seeking to formulate, amend or implement laws, policies and regulations pertaining to public debt and economic growth.