Abstract: The article aims to investigate the relationship between urbanization and economic growth in Albania, with a special focus on the elements of the labor market. The hypothesis is examined through the data panel from 2012 to 2022 acquired by the official institutions, such as Instat and Statista. The results of the regression model do not reveal any impact of urbanization on the economic growth of the country. The employment of the agricultural sector is an important factor. Pearson correlation between urbanization and economic growth estimated at 0.342 indicates a weak to moderate positive relationship. According to the results of the model and the problems that the active labor force in the country faces, the potential to be developed rapidly seems not yet present. In the future, the mutual influence of the two variables is poised between the Tirana and Durrës regions, leveraging the potential through investments in infrastructure.

Keywords: Economic Growth, Urbanization, Regional Development, Urban Population, Sectoral Employment, Rate of Employment, Age Employment

Pages: 341-352