Comparative Economic Development: Albania-Western Balkan

The purpose of this paper is to make an economic comparison, both theoretical and empirical, for different development aspects of Albania aside Western Balkan countries. The theoretical development of the subject gives an overview of recent macroeconomic and structural developments in the countries of the Western Balkan region by dissecting the various contributors of growth. Another important point, that is developed includes the trends of economic, political and institutional development of the Western Balkan countries with relation to two major factors shaping the region’s context, the international economic and financial crisis and the process of European integration reflected in the fiscal and structural reforms undertaken in the respective countries. The descriptive statistics illustrates the relationship between economic growth and selected macroeconomic indicators by the explaining of the econometric model built and studied.