Household Consumption in Albania: A Study of the factors affecting Household Consumption in Albania

Abstract

The aim of this paper is to identify the main factors affecting household consumption during last years in Albania. Some researchers compared Albanian household consumptions with some other countries in our region which showed that mostly we consume food and drinks and then clothes. To define the specified results of this research, variables as adjusted net national per capita, household final consumption expenditure and GDP per capita for countries as Albania, Kosovo and Macedonia are analyzed. These three are the main inputs and sometimes factors which determine the consumption level in a developing country. According to the data published by INSTAT, Albanian consumption in 2016 recorded an annual growth of 1.65%, far from expanding by 3.1% in the same period last year. Furthermore, will see the relationship that these factors have with each other and not only. Also how these factors will affect in household consumption. The source for the data was from World Bank and the data were processed with IBM SPSS Statistics 20. In addition, we will describe products and services which are classified as household consumption. The regression will indicate the test of statistical significance, overall test of significance of the regression parameters and granger causality. On the other hand, the Durbin Watson test states that there is a negative autocorrelation between the time series data. In the end we will process in analyzing data by using regression analyses and after all we will conclude on required result.