Corruption and Economic Development in Albania

Abstract

As a post-communist country Albania has faced lots of difficulties in the way of constructing and implementing new system through democracy. In order to provide peace, stabilized development, integration and economic growth Albania must design a road path of “Corruption fight”. The aim of this paper is to present a clear view of effects over economic development and stabilization, all these figured out by Albania example. The model is designed by interacting the corruption index’s effects on economic growth of Albania. The empirical study is conducted through econometric model (Multiple Regression) having data from 1980-2010. The study is combined of two regression analysis; the first one is to perceive the relationship between corruption index, population growth, Per capita income, unemployment rate and HDI. The second regression is derived to see the unite point of these component effecting the real economic growth rate of one country more precisely illustrated by Albania case. The last part represents the conclusion and possible recommendations indicating the prospective of Albanian Economy under such influences of corruption and other indexes.