INCREASING FUNDING FOR THE REGIONAL INDUSTRY OF KOSOVO AND THE IMPACT ON ECONOMIC GROWTH

Filipos RUXHO

Prof. Ass. Dr., Vice President for Innovation and External Relations, Universum College, Kosovo

filip.ruxho@universum-ks.org

Christos Ap. LADIAS

Professor, Regional Science Inquiry  Journal, Hellenic Association of Regional Scientists

ladias@rsijournal.eu

Abstract

All research so far, related to financing the needs of SMEs in Kosovo, show that financing remains among the main problems for starting the growth and development of the country’s economy, especially for regional small and medium-sized manufacturing enterprises. This phenomenon has created negative consequences in the growth and development of businesses in general, as well as the growth of investment activities in particular. Despite the fact that SMEs affect the generation of new jobs, poverty reduction and economic growth, SMEs in Kosovo still face various and serious challenges in business development. Among other difficulties, there is access to finance, as well as the possibility of investing from external sources, as internal sources of funding are always insufficient. Due to the strategic importance of the manufacturing industry sector in the economy of a country and knowing that for each job contributes 2.3 new jobs in the total economy, we have selected this research which also corresponds to objective 9 of sustainable development and specifically target 9.3 that promotes increased access of small industrial enterprises and other enterprises, especially in developing countries, to financial services, including affordable loans, and their integration into value chains and markets. Referring to this importance, we conducted research in 103 Kosovo regional manufacturing companies in various sectors. The survey was structured with 16 questions which will be presented in detail in this research and which confirm that the increase of financing in the productive sector contributes to the sustainable economic development of Kosovo and to the reduction of unemployment.

Keywords: Financing, Sustainable Development, SMEs, Regional Industry, target

JEL classification: A10, E43, F65, F66, H60, L60, M10, R10

 pp. 117-126

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DETECTION OF FIRMS´ CLUSTERING BY LOCAL SCALING

Ilona BERKOVÁ

University of South Bohemia in České Budějovice, Faculty of Economics

berkova@ef.jcu.cz

Tomáš MRKVIČKA

University of South Bohemia in České Budějovice, Faculty of Economics

mrkvicka@ef.jcu.cz

Renata KLUFOVÁ

University of South Bohemia in České Budějovice, Faculty of Economics

klufova@ef.jcu.cz

Radim REMEŠ

University of South Bohemia in České Budějovice, Faculty of Economics

remes@ef.jcu.cz

Abstract

The paper analyses locations of headquarters of companies and their interactions by inhomogeneous point process, especially local scaling principles, because companies choose their locations according to the number of the local population. Relationships of the companies within economic sectors are studied using the analysis of locally scaled L function. The inhomogeneity was modelled using the local population, then the company’s size was included. Lastly the level of clustering in each sector was computed. The companies are located in three regions in the Czech Republic. It was found out that the companies tend to cluster when the population or the companies’ size is taken into account.

Keywords: Inhomogeneous point process, L-function, Global envelope test, Spatial clusters, Agglomeration

JEL classification: C21, L60, O18, R12

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