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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GROSS JOB – CREATION AND GROSS JOB – DESTRUCTION DETERMINANTS: EMPIRICAL ANALYSE AT MICRO FIRMS DATA LEVEL

Tadeu LEONARDO

Faculty of Economy – Univercity Jos´e Eduardo dos Santos UJES-Angola

tad.eufeca@hotmail.com

Francisco DINIZ

Centre for Transdisciplinary Development Studies (CETRAD); Quinta dos Prados, 5000-801 Vila Real, Portugal, http://www.cetrad.info/

fdiniz@utad.pt

Abstract

This study analyses gross job-creation and gross job-destruction determinants at the firm level for a panel of Portuguese micro firms across four industry sectors, using the Ordinary Leat Square and Fixed Effect econometrics model to analyse a database consisting on 15.686 micro firms, for time period going from 2010 to 2017. It was found that laggard gross job-creation, assets tangibility, financial leverage, profits and the fact firms belong to the construction sector determines gross job-creation. Regarding gross job-destruction,  its was found that this variable is determined by its laggard variable, firm’s size, worker’s tenure and the fact the firm belongs to the hotels and restaurants sector. Finally, findings suggest that a resource-based approach explains gross job-creation and gross job-creation for micro firms by using microdata. This study contributes to the state of the art on the determinants of employment and firing at micro firms’ level as it investigates the importance of the independent variables in explaining micro firm’s labour demand in Portugal.

Keywords: Gross job-creation, gross job-destruction, micro firms, Portugal

JEL classification: M10, O14, O18, O44

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FACTORS INFLUENCING ON PARTICIPATION TO AGRICULTURAL COOPERATIVES IN ARMENIA

Lilit GYULGYULYAN

Assistant Professor, Chair of Management, Armenian State University of Economics, Yerevan, Armenia

lilit.gyulgyulyan@gmail.com

(corresponding author)

Ihtiyor BOBOJONOV

Dr., Research Associate, Department of Agricultural Markets, Marketing and World Agricultural Trade, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), Germany

bobojonov@iamo.de

Abstract

The creation of agricultural cooperatives has become one of the major priorities in the sector of agriculture in Armenia. Being a post-Soviet country, Armenia greatly depends on agriculture. According to the data of National Statistical Service of Armenia 20.5 percent of Armenian GDP (Gross Domestic Product) is generated from the agricultural sector of the economy, and hence it is one of the priorities of development of Armenian economy (Armstat, 2016). Nowadays people leaving in rural municipalities of Armenia do not have necessary funding to acquire consumer services, such as housing, education, social benefits, telecommunication, credit, and other financial services (Movsisyan, 2013). In this context, agricultural cooperatives, as a major component of the food and agriculture industry, can help them to market their products and enable them to supply at competitive price levels. The continuous creation of agricultural cooperatives in rural communities is distinguished among priorities of the government. So, one of the main goals of government in this sector must be the enhancing of participation of households to agricultural cooperatives. This paper examines the main factors that influence participation of households to cooperatives. It finds out that there is a need to enhance people’s awareness about the benefits of agricultural cooperatives. The paper also examines the impact of agricultural cooperatives on household’s income and welfare.

Keywords: agricultural cooperative, cooperative movement, voluntary association, cooperative participation, cooperative identity

JEL classification: M10, O20, Q13, P32
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