Fig 2 - uploaded by Filloreta Madani
Content may be subject to copyright.
Employment by sector of the economy in Albania  

Employment by sector of the economy in Albania  

Source publication
Article
Full-text available
Today citizens of the modern world are living in an economy that is increasingly based on services. The service sector is not anymore a minor part of the overall economy, but a major sector adding lots of value to the economy. The service industry represents the fastest growing economic sector. The objective of the paper is to analyze the service s...

Similar publications

Conference Paper
Full-text available
The latest political, economic and military events across the SouthEastern EU's borders put in a new light the importance of the Balkans region in supporting the European values and achieving real socioeconomic development. The paper deals to the idea that this region would become a growth pole even that the present regional development disparities...

Citations

... 7 Even though there is a growing importance of the service sector to the Albanian economy, there are only few studies which estimate the impact of the services sector on the economic growth in Albania. Muharremi, Madani, and Pelari (2013) showed that services are vital as the Albanian economy transitions from an agricultural economy to a service-oriented economy. On the one hand, Illeris (1996) and Qin (2006) argued that in order to develop an economy, the country should evolve into a service-oriented economy. ...
Article
Using annual data for the period 2000-2018, the study employed an autoregressive distributed lag (ARDL) methodology to examine the long-run cointegrating relations between service subsectors and economic growth in Albania. Results are presented both for the short run and long run. Findings indicate that the transport sector, communication and financial services have a positive impact on economic growth. However, the manufacturing sector has a negative impact. This confirms Baumol's theory on cost disease but does not corroborate Kaldor's theory. Furthermore, agriculture and industry stimulate the Albanian economy whilst expenditure on health have a limited impact. In addition, the Granger causality test indicates a bidirectional causality from transport, communication and financial services to GDP per capita. Lastly, our models are robust to all the conventional battery of tests.
... 7 Even though there is a growing importance of the service sector to the Albanian economy, there are only few studies which estimate the impact of the services sector on the economic growth in Albania. Muharremi, Madani, and Pelari (2013) showed that services are vital as the Albanian economy transitions from an agricultural economy to a service-oriented economy. On the one hand, Illeris (1996) and Qin (2006) argued that in order to develop an economy, the country should evolve into a service-oriented economy. ...
Article
Full-text available
Using annual data for the period 2000–2018, the study employed an autoregressive distributed lag (ARDL) methodology to examine the long-run cointegrating relations between service sub-sectors and economic growth in Albania. Results are presented both for the short run and long run. Findings indicate that the transport sector, communication and financial services have a positive impact on economic growth. However, the manufacturing sector has a negative impact. This confirms Baumol’s theory on cost disease but does not corroborate Kaldor’s theory. Furthermore, agriculture and industry stimulate the Albanian economy whilst expenditure on health have a limited impact. In addition, the Granger causality test indicates a bidirectional causality from transport, communication and financial services to GDP per capita. Lastly, our models are robust to all the conventional battery of tests.
Thesis
Full-text available
High-skilled workforce migration has become a dominant pattern of international migration and a contemporary challenge for many developing economies. Considering that outward mobility of skilled workers' effects on migrant-sending countries is still unexplored in the literature, studies on economic implications from an origin country perspective are limited. Therefore, this research paper aims to explore the leading causes of high-skilled migration in Albania and its potential economic implications for the country's development in the long run. Our study is based on a qualitative research method and provides a comprehensive country-level analysis of education and labor market conditions, the role of skills/occupational mismatch, and youth unemployment trends, which altogether add to the outmigration of the young workforce. In the first part, the study results suggest that labor underutilization (caused by existing occupational and skills mismatch) and low wages are the main driving forces of high-skilled migration. Based on the migration-development theoretical models used in this paper and the poor economic performance of Albania observed for the last three decades, our findings suggest that the skilled labor shortages due to huge emigration flows represent a significant loss to the Albanian labor market and can negatively affect the socioeconomic development and productivity level of the country.