The Impact of Import and Export to GDP Growth – The Case of Albania

Abstract

The purpose of this paper is to study the impact of imports, exports and the gross formation of fixed capital on the growth of GDP (gross domestic product) for Albania. The data are for the period 2000-2020 and the source of statistical data is INSTAT. The calculation of GDP with the expenditure method is based on the equation GDP = C + I + G + NX. From a theoretical point of view, if the net export volume will have a positive value, then we have larger exports than imports. This means that it positively affects the growth of a country's GDP. All the variables taken into consideration are annual growth with the prices of the previous year. For Albania, the volume of net exports measured in millions of ALL with the prices of the previous year for the entire period under study has negative values. So in Albania, imports are higher than exports.