The impact of public and private debt on economic growth

Scientific Study from the year 2020 in the subject Economics - Finance, grade: 12, , language: English, abstract: This work aims to study the impact of public and private debt on economic growth in Albania during the period 2014 to 2018, as well as the main determining factors for both indicators. The methodology used is based on econometric regression analysis. The results showed that public and private debt has a statistically significant impact on economic growth in Albania. The author aims to answer the question: Does private and public debt have an impact on economic growth in Albania? The purpose of this work is to analyze the effects of public debt and private debt on the country's macroeconomic indicators, especially the emphasis is on efficiency of public and private borrowing borrowing on GDP. The effects of public debt on GDP vary from one country to another, studying the factors that influence the emerging differences between these countries and made possible the comparison of private and public borrowing borrowing effect on the economy of any country. Following the goal, this work will focus on the necessity of state debt and how the state ensures that debt, the importance of private sector development and business role over private borrowing on the role of public debt and private borrowing growth economic situation of the country. Albania has managed to maintain positive economic growth and macroeconomic stability over the past decade, but its high level of public debt, with an upward trend over the last three years, has been seen as a concern by many domestic and foreign economists. When it comes to debt, both public and private debt must be taken into consideration. Private debt analysis takes on particular importance because private debt is associated with financing business projects and increasing consumer demand, which serve economic growth and improve the country's macroeconomic parameters.

Dr. Arjeta Hallunovi is a finance lecturer in the Department of Finance - Accounting at University Aleksander Moisiu Durres in Albania. She holds a PhD in Economics Sciences, Finance - Bank Profile. Mrs. Hallunovi is author of three books, four monographs and has more than 30 published papers, the major part with Impact Factor and Thomson Reuters in United Kingdom, Germany, Singapor, USA, Canada, Montenegro, Italy etc. In March and April 2019 she was part of the Teaching Mobility in Andrei Saguna University, Costanta, Romania and Kodolanyi Janos University, Budapest, Hungary. In June 2018 she successfully completed the Summer School 'Advanced Measurement of Quality of Working Life' in France, in which also presented a scientific paper. In May 2018 was part of the Teaching Mobility in Danubius University, in Galati, Romania with the Erasmus students. In 27 - 30 September 2018 was part of the World Youth Forum Right to Dialogue. Ethics of Complexity. XI Edition in Trieste, Italy. In 23 November 2018, she was as a Jury member in the essay competition "Students Problems" organised from the Forum "Studentët për Qeverisjen e Mirë". During the period 20-21 November 2018, Dr. Hallunovi was invited in the Training Program " Participatory Policy Making", organised from the Partners Albania for Change and Development in cooperation with Partnersfor Democratic Change Slovakia with the support of Slovak Aid-Official Development Assistance of the Slovak Republic. Durres, Albania. In 03-04 December 2018, she have participated in the 3rd UNWTO/UNESCO World Conference on Tourism and Culture, Istanbul, Turkey. In March 2019 was part of the Tools for Social Development-Volume III, Erasmus + Project, co-financed by the European Commission, Vrnjacka Banja, Serbia. Among other things, she is on the editorial board of The Educational Review-USA at the Hill Publishing Group, Journal of Finance and Accounting at the Science Publishing Group (USA), Journal of Applied Mathematics and Computation at Hill Publishing Group (USA), Academic Journal of Accounting and Finance at the International Association of Scientists and Researchers, as well as scientific collaborator at the Institute for Scientific Research and Development in Montenegro and she is member of UdEcoM Balkan. Mrs. Hallunovi is Member of the HISTEK project, Interreg IPA-CBC, titled "Senior Technical Specialists in Key Learning Technologies (KETs)" where the Faculty of Business is a partner.