Tag: human capital

YOUTH EMIGRATION AND SME PERFORMANCE IN ALBANIA: FIRM-LEVEL EVIDENCE

Alketa VANGJELI

Associate Professor, University of Elbasan, Albania.

alketa.vangjeli@uniel.edu.al

Abstract

Youth emigration has become a persistent structural challenge for the Albanian economy, raising concerns about labor availability, productivity, and the sustainability of small and medium-sized enterprises (SMEs). While the macroeconomic consequences of emigration have been widely examined, limited attention has been paid to its firm-level effects, particularly in transition economies. This study investigates the impact of youth emigration on Albanian SMEs, focusing on labor shortages, skills availability, productivity perceptions, innovation capacity, and growth expectations. Using cross-sectional survey data collected from SMEs operating across key economic sectors in Albania, the analysis employs regression techniques to examine the relationship between youth emigration intensity and firm performance indicators, controlling for firm size, age, sector, and location. The results indicate that higher levels of youth emigration are significantly associated with increased labor shortages and reduced access to skilled workers. SMEs exposed to stronger emigration pressures also report lower productivity growth and diminished innovation activity, suggesting that youth outmigration constrains firms’ adaptive capacity. Although some firms attempt to mitigate these effects through wage adjustments or organizational restructuring, such responses appear insufficient to offset the broader human capital depletion. The findings contribute to the literature on migration and firm performance by providing micro-level evidence from a small transition economy and highlighting the asymmetric vulnerability of SMEs to demographic shocks. From a policy perspective, the results underscore the need for integrated youth retention, skills development, and SME support strategies to sustain enterprise competitiveness and long-term economic growth.

Keywords: Labor shortages, Human capital, Firm productivity, Innovation

JEL classification: F22, J24, L26, O15, R23

pp. 135-145

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THE IMPACT OF FINANCIAL EXPOSURE ON STUDENTS’ FINANCIAL LITERACY: EVIDENCE FROM THE UNIVERSITY OF GJIROKASTRA

Dorjana NANO

Ph.D. Doc. York University, School of Continuing Studies, Toronto, Canada

nano.dori0810@gmail.com

Antoneta POLO

Assoc.Prof.,”Eqrem Çabej” University, Gjirokastra, Albania

neta_polo@yahoo.com

Enkela CACA

Assoc. Prof.,”Eqrem Çabej” University, Gjirokastra, Albania

ebabaramo@yahoo.com

Ilirjana ZYBERI

Assoc. Prof.,”Eqrem Çabej” University, Gjirokastra, Albania

izyberi@yahoo.com

Christos AP. LADIAS

Professor, Regional Science Inquiry Journal, Greece

Ladias@rsijournal.eu

Abstract

Financial literacy shapes how individuals manage money and respond to economic challenges. Research has shown that students with greater financial exposure tend to make better financial decisions. This study examines the impact of financial exposure on financial literacy using survey data from 100 students at the University of Gjirokastra, Albania. A Financial Exposure Index (FEI) was constructed to measure engagement with financial environments, including income, work experience, and sources of financial learning. Linear and logistic regression analyses were conducted. Results show that financial exposure has a strong impact on financial literacy. The linear model explains nearly half of the variation in literacy scores, while logistic regression indicates that higher exposure significantly increases the likelihood of achieving adequate literacy (≥70%). Gender and regional background also influence outcomes, though age and marital status are less significant. These findings underscore the importance of practical financial experiences and local context in shaping financial literacy.

Keywords: Financial Literacy, Financial Exposure, University Students, Logistic Regression, Human Capital

JEL classification: A22, G53, D14, I22, C83

pp. 57-62

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HUMAN CAPITAL FORMATION AND ECONOMIC GROWTH RELATIONSHIPS: PANEL DATA INSIGHTS FOR THE INDIAN STATES

Imran HUSSAIN

Department of Economics, Vidyasagar University, Midnapore, India

 imranhussaingrp@gmail.com

Ramesh CHANDRA DAS

Department of Economics, Vidyasagar University, Midnapore, India

ramesh051073@gmail.com

(corresponding)

Abstract

The various endogenous growth theories as well as empirical studies have proved that human capital works as an important factor for economy’s growth. The role of income on human capital formation cannot be overlooked so far as the essences of the endogenous growth theories are concerned. Considering this interconnection among the human capital and income of the economy, the present study provides quantitative evidence to show the associations amongst human capital formation as quantified by the governments’ health and education expenditures and income of the economy measured by states’ gross domestic products for the panel of states and union territories of India during the period from 1998-99 to 2018-19. The technique of panel cointegration is used to show the long run relationships among human capital investment and income of the economy, and then the Wald test is used to examine the direction of short-run causality. The empirical results demonstrate that human capital and state incomes have a long-term relationship. The Wald test reveals a short-run linkage between human capital and income of the state economies, with the causality running from human capital investment to output of the economy. i.e., human capital has an immediate influence on the progress of the economy. It is consequently suggested that the governments of the states and union territories make additional investments in sectors such as education and health in order to secure long-term economic prosperity.

Keywords: Human capital, education, health, growth, panel cointegration, Indian states

JEL classification: I1, I2, O3, C32, C33

pp. 57-71

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