Albania economy toward official euroisation
Albania economy toward official euroisation

Summary/Abstract: The euroisation issue in European Integration context, is a continuous process of discussionsbetween different researchers and regulatory institutions. Nowadays, different aspects of collaboration andintegration processes between countries in the region, are extended in all politics, economic and securitydimensions. In this study, we are going to treat one of the aspects of this process integration for Albania: thepossibility of substituting the Albanian Lek with Euro, beginning with the explanation of the concept ofeuroisation. Also we are going to identify the actual non-official replacement level of lek and how it isexpected to be realized in the future. Albania like other developing countries is lack of a currency with whichpeople can buy abroad and which can be used in short-run and long-run credit contracts. On the other hand,the exchange rate represents an important risk, especially for the business which realizes transactions inforeign currency. Here in we are focused on the measurement of the money replacement level in Albaniathrough three main methods. For this purpose is used the regression analysis in order to test the hypothesisunder evaluation in two directions: endogenous and exogenous potential factors affecting this replacement.Through the factor analysis identifying the pro and cons of the euroisation phenomenon, we will give thepotential alternative in our county economy conditions. Finally, the replacement rate cannot be assessedwithout being related to the degree of money in circulation replacement and

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