The Correlation and Linear Regression Analysis between annual GDP Growth Rate and Money Laundering in Albania during the period 2007-2011

  • Abstract:

    This study is the first attempt to investigate the relationship between the annual GDP growth rate and money laundering in the Republic of Albania during the period 2007-2011. The main result of the study: there is a negative correlation between money laundering process and economic growth rate in Albania during the specified period; there is a negative correlation between money laundering and import, but there is a positive correlation between money laundering and the government expenditure, as well a positive correlation between money laundering and export.
    More concretely:
    1. The coefficient of correlation between cases referred in the prosecutor`s office for money laundering(X) and the annual GDP growth rate (Y) is r= – 0.74.The equation of the linear regression is y= 7.2827 – 0.0585x.
    2. The coefficient of correlation between cases reported in the police for money laundering(X) and the annual GDP growth rate (Y) is r= – 0.81, while the equation of the linear regression is y = 7.27-0.024x
    3. The coefficient of correlation between reported CAA (Cases for Alleged Activity) for money laundering(X) and the annual GDP growth rate (Y) is r = – 0.49, while the equation of the linear regression is y = 7.1411-0.0107x
    4. The coefficient of correlation between government expenditures and the cases referred in the prosecutor’s office for money laundering is r = 0.72
    5. The coefficient of correlation between government expenditures and the cases reported in the police for money laundering is r = 0.79
    6. The coefficient of correlation between net export and the cases referred in the prosecutor’s office for money laundering is r = 0.89
    7. The coefficient of correlation between the cases referred in the prosecutor’s office for money laundering and unemployment rate is r = 0.64
    8. The coefficient of correlation between the cases reported in the police for money laundering and unemployment rate is r = 0.60
    9. The coefficient of correlation between the cases referred in the prosecutor’s office for money laundering and inflation rate is r = 0.22
    10. The coefficient of correlation between the cases reported in the police for money laundering and inflation rate is r = 0.136
    11. The coefficient of correlation between the cases referred in the prosecutor’s office for money laundering and the investments in Albania is r = -0.979
    12. The coefficient of correlation between the cases reported in the police for money laundering and inflation rate is r = -0.9736
    13. The coefficient of correlation between the cases referred in the prosecutor’s office for money laundering and the foreign direct investments in Albania is r = 0.95
    14. The coefficient of correlation between the cases reported in the police for money laundering and the foreign direct investments in Albania is r = 0.8941