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 ECONOMIC PERFORMANCES OF MOROCCAN REGIONS: A TOPSIS AND SPATIAL AUTOCORRELATION METHODS

Hamdi EL ASLI

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

hamdielasli@gmail.com

Mohamed AZEROUAL

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

m.azeroual@usms.ma

Alae MOHAMMED MOURAI

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

alae.mourai@gmail.com

Mounya CHAHBOUNE

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

c.mounya@gmail.com

Abdelhak OULALA

Laboratory of Economy & Management, Polydisciplinary Faculty of Khouribga (25000), Sultan Moulay Slimane University of Beni Mellal (23000), Morocco

oulala1981@gmail.com

Abstract

This paper investigates the economic performance of Morocco’s twelve regions from 2015 to 2022, combining a temporal and spatial analysis methods, and focusing on five key regional macroeconomic indicators: GDP per capita, HFCE per capita, contribution to national growth, start-ups created, and the activity rate. While previous studies have examined regional disparities using MCDM or spatial statistics, none have combined TOPSIS with spatial autocorrelation to evaluate regional economic-entrepreneurial performance in Morocco under its new administrative division, which enables ranking of regional competitiveness and detection of clustering patterns. Findings show that Casablanca-Settat consistently ranks in the top twelve, solidifying its position as the country’s economic capital, followed alternately by the northern Tanger-Tétouan-Al Hoceima and the emergent Rabat-Salé-Kénitra regions, while the southern regions remain at the bottom. Marrakech-Safi was severely affected by the disruption of tourist cash flows under the Covid-19 crisis, before it gradually recovered post-2020. Similarly, Béni Mellal-Khénifra progressed significantly, largely due to its phosphate exports, agro-oil industry, and remittances’ inflows, until 2020, when it retrograded remarkably. Spatial analysis reveals that Moroccan regions exhibit high autocorrelation, with both, top and low ranked regions identified by the TOPSIS method clustering together. Results can inform region-specific development strategies, equitable resource allocation, entrepreneurship promotion, and spatial regional planning. However, limitations such as the restricted set of indicators, short interval, and methodological constraints suggest future research directions that integrate broader social, environmental, and innovation variables, extend the sample interval, and apply advanced comparative and econometric approaches.

Keywords: Morocco, regions, economy, TOPSIS, spatial autocorrelation

JEL classification: C38, L26, R11, R12

pp. 93-114

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HOW AND HOW MUCH DIGITALIZATION AFFECTED ENTERPRISE PERFORMANCE DURING COVID-19 PANDEMIC

Ermira KALAJ

University “Luigj Gurakuqi”, Shkoder, Albania

ermira.kalaj@unishk.edu.al

ORCID: 0000-0003-4692-6055

Erjola BARBULLUSHI

University “Luigj Gurakuqi”, Shkoder, Albania

erjola.barbullushi@unishk.edu.al

Abstract

This paper focuses on the analyses of digitalization of enterprises and its performance impact in Albania. Using World Bank Enterprise Survey of 2019 merged with the ES follow-up on Covid-19 for Albania we investigate on the overall performance of enterprises during Covid-19 pandemic and the role of digitalization. The objective of the survey is to better understand the firm’s experience in the private sector. Collected data are based on firms’ experiences and perception of the environment in which they operate.

The paper uses these specific questions to study digitalization prior to and during Covid-19 pandemic. ES questionnaires focus on the following questions: (1) Does the establishment have its own website? (2) Started or increased business activity online? (3) Started or increased remote work arrangement for its workforce? The dependent variable is performance of the enterprises measured in terms of sales growth, employment growth, closure, and production adjustment. While the vector of independent variables is composed by enterprise characteristics such as firm size, ownership structure, legal status, region, etc. Moreover, dummy variables are used to capture access to formal banking service, and gender ownership.

Keywords: Firm Performance, Entrepreneurship, Digitalization, General Regional Economics

JEL classification: L25, L26, L86, R15

pp. 97-108

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