Tag: O15

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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DOES ZAKAT MATTER FOR HUMAN DEVELOPMENT? AN EMPIRICAL EVIDENCE FROM INDONESIA

I.K. Balyanda AKMAL

Postgraduate Student in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

balyanda@gmail.com

M. Shabri Abd. MAJID

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

Corresponding author

mshabri@unsyiah.ac.id

Eddy GUNAWAN

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

egunawan@unsyiah.ac.id

Abstract

This study aims to empirically measure and analyze the contribution zakat to human development and, consequently towards the achievement of the Sustainability Development Goals (SDGs) program in Indonesia. Specifically, this study intends to measure the differences in the Human Development Index (HDI) of zakat recipients before and after receiving zakat and measure the effect of zakat on the HDI and its components. The response to these issues, the study estimates the value of the Human Development Index (HDI) at a minor level; the individual and household levels. 100 recipients of zakat (mustahik) from the three programs of zakat distribution by the zakat institution of Aceh Province, Indonesia (Baitul Mal Aceh – BMA) were selected as the sample of the study using a combination of purposive and proportionate stratified random samplings. These zakat programs include zakat for cancer and thalassemia patients, zakat for one family one undergraduate scholarship, and zakat for buying working capital for the poor families. The paired t-test is adopted to assess the differences in HDI of zakat recipients before and after receiving zakat, while the multiple linear regression is used to measure the effect of zakat on the HDI and its components. The study found that, after receiving zakat, the HDI of zakat recipients is higher than before. Zakat is also recorded to have a significant positive effect on the HDI, while the family size affected negatively the HDI and the types of zakat and profession of zakat recipients have an insignificant effect on the HDI. These findings suggest the positive role of zakat in improving human development and it could be used as one of the instruments to accelerate the achievement of the SDGs agenda in Indonesia.

Keywords: Education, Health, Human Development, Welfare, Zakat

JEL classification: D64, O15, Q01, I15, I25, I38

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HUMAN CAPITAL AND HIGHER EDUCATION AS DRIVERS OF ECONOMY IN ALBANIA

Etleva BAJRAMI

Prof. Assoc. Dr., Pedagogue in Finance Department, Faculty of Economy, University of Tirana

etlevabajrami@feut.edu.al

Brikena LEKA

Prof. Assoc. Dr., Pedagogue in Finance Department, Faculty of Economy, University of Tirana

brikenaleka@feut.edu.al

Abstract

Education is a strong pillar for the qualitative growth and improvement of human capital. Appropriate and necessary education of people will enable business employees to have the necessary knowledge for the activity. The growth of businesses will have its impact on the growth of the country’s economy. People are turning to higher education more and more as a way to enhance their personal wellbeing. Higher education is seen by people as the best way to enable the employment and higher salary in the future. For this reason the focus of this paper is education. The main objective is to understand the impact of higher education in economic growth. This paper analyzes the impact of education through several variables on economic growth in Albania, focusing more on the impact of higher education. The independent variables considered in this paper as representatives of education are mean years of schooling, enrollment in primary education, enrollment in secondary education, enrollment in higher education, while as a representative of growth is used dependent variable Gross Domestic Product (GDP) per capita. From the model we found the variables mean years of schooling and enrollment in higher education are significant and positively related with GDP per capita. The analysis is based on model building with secondary data using the method of least squares.

Keywords: human capital, higher education, school enrollment, GDP per capita

JEL classification: I23, O15, H52

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