Licensed under Creative Common PUBLIC INVESTMENT MANAGEMENT IN ALBANIA-THE EFFECTIVENESS ACCORDING TO KEYNESIAN MULTIPLIER

Dorjan Teliti, Adriatik Kotorri, Asoc
2017 International Journal of Economics, Commerce and Management United Kingdom   unpublished
Since the change of the economic system in Albania and the beginning of the transition in 1992, the key word for the rise and development of the devastated Albanian economy has been investments. Under the conditions of a non-existent private sector and an ineffective public sector, the only option was the attraction of foreign investments. Up to 2002, the Albanian Government failed to finance its current public spending with its revenues. Until this year, part of the public debt went to finance
more » ... current spending and only one part for financing public investment. After this year, public investments had a quantitative change, and the focus changed from the funds finding to the quality of public investment management. While the level of public investment management has often been subject to political debate, it has almost never been the subject of a dispute about its economic impact. Mostly, debates about the social strata and areas that affected investment by shadowing its impact on the economy as a whole. From most than 10 years, the Albanian economy is failing to grow at high rates, because of low levels of public investment. Restriction of investment in infrastructure and change in the process of nature of investment has maintained the level of GDP growth in the range of 1-2.5%. In this paper will be explore the impact that has in the economy the level of public investment and the quality of their management. Given that public investment produces incentive for private consumption and investment, it will be analyzed how much the additional public sector investment will influence on economic growth.
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