Administrative Reform as an Essential Instrument for Socioeconomic Stability in Albania

Administrative reforms constitute essential instruments for both economic development and effective state governance. While a positive relationship exists between the implementation of administrative reforms and economic growth, this relationship is neither automatic nor direct. The mere adoption of reforms does not guarantee economic development; rather, reforms must be implemented in a coordinated manner, aligned with political conditions and supported by a broad set of economic parameters. Albania represents a characteristic case where recurrent political transitions and institutional restructuring have made administrative reform a continuous and indispensable process. The findings reveal several important conclusions. Political stability is found to have a negative effect on real economic growth, highlighting the complex and non-linear nature of political–economic interactions. Public debt exhibits a dual role, exerting a positive impact in the long run while generating negative effects in the short term. Moreover, the year 2012 emerges as a structural breakpoint in the Albanian economy, indicating a shift in the growth regime.