Albanian Business Outsourcing
Posted by franksupa on May 30, 2007
Snapshot of Business Environment — Albania
The tables below provide a snapshot of the business climate in Albania by identifying specific regulations and policies that encourage or discourage investment, productivity, and growth. Key indicators are used to help measure the ease or difficulty of operating a business: starting a business, hiring and firing workers, registering property, getting credit, protecting investors, enforcing contracts, and closing a business. To compare the business climate of Albania with that of other economies, click on the topic name. Regional and high-income OECD averages are provided in each topic for comparison.
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Variable |
Albania |
Regional |
OECD |
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Region |
Europe & Central Asia |
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Income category |
Lower middle income |
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GNI per capita (US$) |
1,740 |
3,047 |
25,773 |
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Informal economy (% GNI, 2003) |
34.1 |
37.7 |
16.8 |
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Population (millions) |
3.2 |
n.a. |
n.a. |
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Starting a Business (2004) |
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The challenges of launching a business in Albania are shown below through four measures: procedures required to establish a business, the associated time and cost, and the minimum capital requirement. Entrepreneurs can expect to go through 11 steps to launch a business over 47 days on average, at a cost equal to 32.2% of gross national income (GNI) per capita. They must deposit at least 41.3% of GNI per capita in a bank to obtain a business registration number, compared with the regional average of 51.8% of GNI and the OECD average of 44.1% of GNI.Albanian Outsourcing |
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Indicator |
Albania |
Regional |
OECD |
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Number of procedures |
11 |
9 |
6 |
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Time (days) |
47 |
42 |
25 |
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Cost (% of income per capita) |
32.2 |
15.5 |
8.0 |
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Min. Capital (% of income per capita) |
41.3 |
51.8 |
44.1 |
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Hiring and Firing Workers (2004) |
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The difficulties that employers in Albania face in hiring and firing workers are shown below. Three indices measure how difficult it is to hire a new worker, how rigid the regulations are on working hours, and how difficult it is to dismiss a redundant worker. Conditions covered by the indices include: availability of part-time and fixed-term contracts, working time requirements, minimum wage laws, and minimum conditions of employment. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The overall Rigidity of Employment Index is an average of the three indices. For Albania, the overall index is 30, compared with the regional average of 41.8 and OECD average of 34.4. Firing costs are calculated on the basis of the number of weeks worth of salary in severance, notification and penalties that must be paid to dismiss a worker. |
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Indicator |
Albania |
Regional |
OECD |
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Difficulty of Hiring Index |
11 |
31.3 |
26.2 |
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Rigidity of Hours Index |
60 |
51.5 |
50.0 |
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Difficulty of Firing Index |
20 |
42.3 |
26.8 |
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Rigidity of Employment Index |
30 |
41.8 |
34.4 |
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Firing Costs (weeks of wages) |
55 |
38.3 |
40.4 |
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Registering Property (2004) |
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The ease with which businesses can secure rights to property is measured below using the following indicators: the number of procedures necessary to transfer a property title from the seller to the buyer, and the time and the costs as a percentage of the property value. In Albania, it takes 47 days to register property, compared with the regional average of 133 and the OECD average of Albanian Outsourcing.
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