Description: Albania - Sustaining Growth Beyond the Transition : A World Bank Country Economic Memorandum

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Albania - Sustaining Growth Beyond the Transition : A World Bank Country Economic Memorandum

While Albania 's performance has been impressive, there are concerns about the sustainability of high rates of economic growth in the future. The evidence from the growth accounting exercise indicates that total factor productivity growth from...

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Bibliographic Details
Main Author:	World Bank
Language:	English
Published:	Washington, DC 2013
Subjects:	AGED AGRICULTURAL PRODUCTION AGRICULTURE ALLOCATIVE EFFICIENCY ANNUAL REPORT BENCHMARK CITIES CLIMATE COMPETITIVENESS CORRUPTION DECENTRALIZATION DEVELOPMENT STRATEGY ECONOMIC ANALYSIS ECONOMIC DEPENDENCY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SECTORS EDUCATION EMIGRATION EMPLOYMENT EXCHANGE RATE EXCISE TAXES EXERCISES EXPENDITURES EXPORTS EXTERNAL COSTS FAMILIES FISCAL DECENTRALIZATION GDP GDP PER CAPITA GROWTH RATE HEALTH HUMAN CAPITAL HUMAN DEVELOPMENT IMPORTS INFLATION INFLATION RATE INNOVATION INTEREST RATES INTERNATIONAL TRADE LABOR FORCE LABOR PRODUCTIVITY MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MACROECONOMICS MIGRATION MINES MONETARY POLICY MONEY SUPPLY MULTILATERAL TRADE NATIONAL INCOME NEGOTIATIONS PARTNERSHIP POLLUTION POVERTY ALLEVIATION POVERTY LINE PRIVATE SECTOR PRODUCTIVITY GROWTH PUBLIC EXPENDITURE PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC SERVICES PUBLIC SPENDING REAL GDP REAL INTEREST RATE REHABILITATION RESOURCE ALLOCATION RESOURCE USE RISK FACTORS RURAL WATER RURAL WATER SECTOR SANITATION SANITATION SERVICES SAVINGS SCHOOLS SERVICE DELIVERY SERVICE PROVISION SERVICES SECTOR SOCIAL SERVICES SUSTAINABLE WATER TAX RATES TAX REFORMS TAX REVENUE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE BALANCE TRADE DEFICIT TRADE LIBERALIZATION TRANSITION ECONOMIES TRANSPARENCY UNEMPLOYMENT UNEMPLOYMENT RATES VALUE ADDED
Online Access:	http://documents.worldbank.org/curated/en/2004/12/5547762/albania-sustaining-growth-beyond-transition-world-bank-country-economic-memorandum http://hdl.handle.net/10986/14383

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Summary:	While Albania 's performance has been impressive, there are concerns about the sustainability of high rates of economic growth in the future. The evidence from the growth accounting exercise indicates that total factor productivity growth from post-transition reallocation is gradually coming to an end. At the same time, the contribution of capital accumulation has only picked up modestly. This suggests that in order to sustain high GDP growth going forward, Albania must seek to raise its investment and, secondary school enrollment rates, increase the degree of trade integration, and improve institutional quality (governance). Worryingly, total factor productivity growth has slowed significantly in recent years while the contribution of factor accumulation was negligible. Neither remittances nor earnings from illegal activities constitute a solid basis for long-term economic development. There are signs, already, of a decelerating trend in the level of remittances. Furthermore, there are concerns about the financing of the country's investment needs over the medium term. The likelihood that Albania's access to concessional financing sources will decline, as well as expectations for dwindling external support and inflows from abroad, presents major risk factors that must be mitigated with the help of the donor community.