Tag: R23

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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REGIONAL EMPLOYEES PERCEPTIONS ON DECENT WORK AND ECONOMIC GROWTH: LABOUR MARKET OF ALBANIA AND KOSOVO

Filipos RUXHO

Professor Ass. Dr., Department of Business and Management, Universum College, Kosovo.

filip.ruxho@universum-ks.org

Christos Ap. LADIAS

Professor, Regional Science Inquiry Journal

ladias@rsijournal.eu

Ali TAFARSHIKU

Deputy Minister, Ministry of Regional Development of Kosovo.

ali.tafarshiku@rks-gov.net

Edib ABAZI

Professor Ass. Dr., Department of Law, Social and Political Studies, Universum College, Kosovo.

edib.abazi@universum-ks.org

Corresponding Author

Abstract

This research paper is a continuum of our previous research that aimed to identify key perceptions of targeted employees towards decent work and economic growth in labour market of Albania and Kosovo. The key components of SDG 8 – economic growth, basic living costs, equal treatment, safety and security at workplace, and integrity and wellbeing are measured. The questionnaire is used for the study purposes of the research.  The sample consists of 350 respondents. Findings reveal that there are alarming differences on perceptions of respondents in terms of decent work between two regional labour markets. The labour market in Albania suffers from weak treatment of employees at workplace; ensuring safe and secured working environment and low promotion of wellbeing and integrity of employees in workplace. The dimension of economic growth and basic living cost is of concern for both labour markets. Consequently, it is strongly recommended that both states address decent work in labour markets of Albania and Kosovo with priority. State instruments shall be enforced to closely cooperate with employee’s organizations and syndicates and work on elimination of core barriers that disable employees to feel equally treated at workplace, or safe and secured at workplace or having their integrity and wellbeing protected so that quality of working environment improves and involvement and productivity of employees grows.

Keywords: abour market, economic growth, decent work

JEL classification: J30, J40, R10, R11, R23, O10

 pp. 13-23

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A NETWORK-BASED ALGORITHM FOR COMPUTING KEYNESIAN INCOME MULTIPLIERS IN MULTIREGIONAL SYSTEMS

Dimitrios TSIOTAS

Assistant Professor, Department of Regional and Economic Development, School of Applied Economic and Social Sciences, Agricultural University of Athens, Amfissa 33100, Greece

tsiotas@aua.gr

Abstract

In the context of the Keynesian “multiplier effect” approach, regional economic growth and development are conceived as the result of changes in demand stimulating an iterative process of returns of income. Aiming to revisit this established regional economic model, promote multidisciplinary thinking, enjoy better supervision of computations and intuitive interpretation of the results, broaden the applicability of the model, and serve educational purposes in regional economics and development, this paper proposes an algorithm for computing Keynesian income multipliers in multiregional systems. Building on network connectivity, estimations of the regional shares of imports, marginal propensity to consume, and changes in demand, the proposed algorithm provides a framework for standardizing computations of the multiplier effect in multiregional systems. The algorithm is implemented in two theoretical scenarios, contributing to a deeper conceptualization of the computation of the Keynesian income multipliers, and an empirical case of the land interregional commuting network in Greece, providing insights into the developmental dynamics of the labor market (demand for employment) in Greece. Overall, the analysis highlights the symbiotic relationship between the multiplier effect and network structure in regional markets, promotes multidisciplinary thinking in regional science and economics, and provides a code of this network-based algorithm to motivate further research.

Keywords: regional markets, multiplier effect; export-base model; demand for employment; interregional commuting

JEL classification: R11, R15, R23, R41

 pp. 25-46

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