Economicus

Journal Archive

Fiscal stamps’ concession – between high costs and absent economic logic
By, Prof. Assoc. Dr. Elvin MEKA

Abstract

The fiscal stamps’ concession for excise -taxed and pharmaceutical products is part of a long list of many PPPs and other concessions, granted and approved by Albanian governments, over the years, whose purpose is to free the government and state entities from providing services and investments in different sectors of the economy. Beyond being a normal practice in many European countries and also in the region, this concession, approved since 2011, is almost unique and unusual, in terms of printing and selling prices for fiscal stamps by SICPA, the concessionary company, where practically these prices are up to 7-10 times more expensive than the respective ones applied in other European countries and in the region, even by the same concessionary company. Despite this, such a concession applies a primitive technology for the production and printing of (domestic and imported) beer tax stamps, which does not justify the price of the stamp, furthermore, is senselessly burdening the cost of producers and importers, as well as the final consumer, in the domestic market. This concession remains unprecedented, as it imposes a fiscal stamp on beer as well, a practice not implemented in Europe, by burdening, without an economic logic, all the operators who produce and trade beer, as well as the final consumer in the domestic market. Given the fact of the lack of a deep analysis on the benefits and successes of the fight against fiscal evasion from the trade of excise-taxed goods and, moreover, of the lack of a clear comparative analysis between the advantages and essential improvements, such a concession brought to the national economy, public finances and the consumer of the Albanian producer, but also through the analysis made with regard to the economic & financial indicators and the costs of the Albanian producers and consumer, the paper comes to the conclusion that this concession, in its closing stage, should be deeply revised, probably being temporarily offered by the government and then negotiated with more favorable terms and prices than the current ones and comparable to other countries in the region and Europe. Also, the government should be attentive to the concerns of beer producers and importers and the unjustifiable costs to the final consumer. Moreover, it must clarify and specify, from a legal point of view, the possible consequences, or “gaps” of the concession contract with SICPA company, related to its international arbitration proceedings. How to cite: Meka, E. (2022). Fiscal stamps’ concession – between high costs and absent economic logic. Economicus, 21(2), 144–159.

https://doi.org/10.58944/imff4165
The impact of microfinance on economic development and the standard of life of individuals during the years 2018-2021. The case of Albania
By: Dr. Sokol NDOKA & Arjol SAKO, MSc

Abstract

The goal of each country today is to have the highest and continuous economic growth. But the sustainability of economic growth is very important. This is achieved only by making the right policies and providing the country with high income. Microfinance is not a new development. Its origins date back to 1976 when Muhammad Yunus founded the Grameen Bank as an experiment on the outskirts of the Chittagong University campus in the village of Jobra, Bangladesh. Since then, several microfinance institutions emerged and succeeded in helping the poor and over time created new strategies to fulfill their vision. This paper is about microfinance and its impact on people from different layers of society, with the main focus on the impact on the poor layer of the population in Albania during the years 2018-2021. The aim of this study is to show how microfinance works and how it affects the standard of living (income, savings, etc.) of poor people in Albania. How to cite: Ndoka, S., & Sako, A. (2022). “The impact of microfinance on economic development and the standard of life of individuals during the years 2018-2021. The case of Albania.” Economicus, 21(2), 127–143.

https://doi.org/10.58944/vrik4161
The impact of trade agreements. Case of Albania
By: Ledion FERATAJ & Emirgena NIKOLLI PhD (c)

Abstract

This paper aims to explain the impact of the CEFTA trade agreement on the macroeconomic terms of Albania in terms of GDP and trade balance. The main is the development of the states and the components taken in the study provide a clear overview for this purpose. In the realization of this paper, the quantitative research method was used. There are mainly used government publications and scientific articles of various academics. Analysis of the findings is done with descriptive analysis and simple analysis, the explanation between variables. Regarding the work method, dependent variables such as GDP and imports were used and exports of our country and independent variables in the first analysis changed imports and exports to see how Albania’s GDP changes when variables change such as democracy index, free business index to get a better picture formed of the study. They are used as dummy variables that take the variables from 0-1. For help, the calculator on the web (distance calculator) and e-viewer was used for ease of calculations. By using the gravity equation, we show that CEFTA has had an important impact in the distribution of Albania to CEFTA partners. CEFTA has increased Albania’s exports by 34%. The results show that Albania’s imports have been affected significantly and are good for remittances. Another important relationship it is determined between the import and export of Albania. The increase in Albanian exports appears that it has a positive impact on Albanian imports. It is clear that the relationship between GDP, exports and foreign direct investments is a positive relationship, with growing exports and foreign direct investment, GDP is bound to grow to visible way. How to cite: Ferataj, L., & Nikolli, E. (2022). The impact of trade agreements. case of Albania. Economicus, 21(2), 114–126.

https://doi.org/10.58944/kixd1411
Retirement Planning Attitude in a Financial Behavior Perspective. Case of Albania
By: Dr. Elona SHEHU & Blerta MOLISHTI

Abstract

Nowadays, an issue that is becoming more and more prominent and is receiving attention from everyone is retirement planning. Retirement planning behavior is defined as the behavior of individuals toward the design of planning schemes, which has emerged in recent years from research in behavioral economics (financial behavior). Studies carried out time ago have shown that the realization of planning has brought impacts both on saving behavior and on portfolio selection. Also, it is emphasized by the researchers in this field that there are some very relevant factors, which help retirement planning behaviour. The main purpose of this paper is to get acquainted with the behavioral theory, then research and determine the factors that influence planning behavior and readiness for retirement, seeing and analyzing this whole “phenomenon” in the basis of the division of different age groups for individuals employed in our country. The factors highlighted by the research are financial literacy, saving attitude, and future orientation. The methodological research approach of data generation is the combination of quantitative and qualitative methods, which was realized by developing a structured questionnaire. The questionnaire is divided into two sections respectively and is completed by 164 respondents with a variety of professional backgrounds. From the empirical data collected and the analysis carried out, it is concluded that the middle age group (36-50 years old) shows a greater approach in the planning behavior of savings for retirement readiness. As well as from the review of the literature, it is concluded that there is a positive correlation between the planning behavior of individuals and the aforementioned factors. How to cite: Shehu, E., & Molishti, B. (2022). Retirement planning attitude in a financial behavior perspective. Case of Albania. Economicus, 21(2), 101–113.

https://doi.org/10.58944/nrte1597
A synthesis of the current situation of University-Industry cooperation in Albania following the Triple Helix Model
By: Dr. Ketrina ÇABIRI MIJO & Prof. Dr. Ermira QOSJA

Abstract

Albanian universities face a variety of challenges which reflect the national and international factors in the political, social, and economic sphere. On one hand Universities should establish high teaching standards which equip students with the necessary competencies requested by the labour market and on the other hand they should play an important role in boosting innovation within industries through scientific research, to impact the economic development of the county. The goal of this research is to analyse the existing collaboration among universities and the industry in Albania, from the perspective of universities and companies. This research uses a qualitative methodology, based on the questionnaires of work on page 1 of the KALCEA project. In total, the sample consists of 43 respondents, 16 of which are university senior management staff and 27 leaders/administrators and senior managers of large Albanian companies. The findings of the paper indicate that cooperation between Universities and industry do exist and is claimed as important by both parties. However, it still lacks strategic planning and structural approaches which establish, inter alia, the necessary culture of synergy and common innovative products. How to cite: Çabiri, K., & Qosja, E. (2022). A synthesis of the current situation of university-industry cooperation in Albania following the Triple Helix Model. Economicus, 21(2), 83–100.

https://doi.org/10.58944/krhx8923
Social Enterprises in Albania – Reporting and Impact on the Economy
By: Dr. Sokol NDOKA & Alma UKU, MSc

Abstract

A social business is a new form of business that can be considered as a bridge between the community of profit-maximizing organizations and the community of non-profit organizations. The business model concept is currently attracting a lot of attention from researchers and seems useful in providing guidance on how to create social businesses. The purpose of this study was to investigate social enterprises, their reporting, and impact on the economy, specifically stopping in the Albanian case and gathering perceptions and knowledge about this new phenomenon. The study, as a by-product, also aimed to understand the dynamics and potential of market development, but also of policies that may facilitate or even further hinder its development. The methodology used in this paper combines primary with secondary data. Two instruments (questionnaire) were used to collect the primary data in the study, to identify the concept of social business directed at the population, as well as those responsible or employees of certain businesses in Albania. The study concludes that both businesses and individuals were proactive, in terms of developing this form of business in Albania. Although there were still difficulties in understanding the theoretical component or the legal component when it comes to social business, the respondents were positive against this new form of business. While individuals expressed a desire to work in such businesses, their businesses in most cases expressed a desire to introduce more social components in their own businesses. Results also highlighted the lack of regulatory framework, which in most cases becomes a constraint on the development of these businesses and their full development potential. It is noted that social businesses in Albania should strive to blend multiple institutional, legal, and regulatory logic, by combining social and commercial missions in their business model, so that they have more market and a higher spread in Albania. The business has a high potential for economic development at the country level. How to cite: Ndoka, S., & Uku, A. (2022). Social Enterprises in Albania – Reporting and impact on the economy. Economicus, 21(2), 65–82.

https://doi.org/10.58944/oche9028
The insurance market in Albania, the degree of concentration, and consequences on the economy
By: Elisa KORSITA, MSc & Prof. Assoc. Dr. Elvin MEKA

Abstract

The purpose of this study is to critically analyze the insurance market in Albania, and its level of concentration, and somehow to answer the question of whether it impacts the country’s economy. The study analyzed how the insurance system in Albania has evolved, and more specifically, how the situation and progress of the insurance market in Albania is presented in the last 5 years (2016-2021), and how the degree of concentration of the insurance market in Albania is presented and what contribution it makes to the national economy of Albania. The study hypothesized that, in the insurance market in Albania, we still cannot say that we have optimal competition, as we still have a high degree of concentration, and that this factor has also influenced the weight of the insurance market in the economy of Albania. Throughout the study, the qualitative methodology was used, through the case study, from where, statistical processing and the comparative method were used as a method. The study concluded that within the insurance market in Albania, we still cannot say that we have fair competition, as we still have a high degree of concentration, and that this factor has begun to affect the weight of the insurance market in the economy in Albania. It is recommended that the AMF work more towards stabilizing competition and the degree of concentration of the insurance market in Albania, stabilizing the price level. How to cite: Korsita, E., & Meka, E. (2022). The insurance market in Albania, the degree of concentration, and consequences on the economy. Economicus, 21(2), 43–64.

https://doi.org/10.58944/wbfs2351
Challenges of agricultural insurance development in Albania
By: Grisejda MYSLIMI, PhD(c) & Emirgena NIKOLLI, PhD(c) & Joana SHIMA, Msc.

Abstract

Agricultural production is exposed to natural risks that cannot be prevented and lead not only to production losses but also to a decrease in farmers’ income. As a result of these risks, farmers often do not have the opportunity to pay their loans. Against risky borrowers, credit institutions refuse to give loans. Under these conditions, the government must intervene in risk management, trying to reduce these negative effects. The provision of agricultural products as one of the most important instruments for the financial support of this sector will be the focus of this paper. Agricultural insurance provides compensation for economic losses resulting from unfavorable natural phenomena, contributing to the reduction of poverty. Without adequate insurance, lenders would not provide farmers with insurance policies. Agricultural insurance is a tool that helps farmers to predict the future, to protect the business from unforeseen events, supply and demand fluctuations or various operational challenges. In the case of developing countries such as Albania, these markets are not developed. A main problem in the development of these markets is the lack of demand due to unaffordable prices for farmers. One of the biggest challenges of the agricultural insurance industry is not only providing the right insurance product, but also helping agricultural sector in improving risk management practices to increase production. As Hazell (2009) puts it, many agricultural risks cannot be insured on a financially sound basis, but there is scope for increased insurance of farm assets, of the life and health of rural people, and of some specific perils that affect crop and livestock yields. Such insurance could be efficiently provided by the private sector if governments were to remove some of the important constraints impinging on commercial insurers. The greatest challenge is to find ways of insuring low-income rural households against natural hazards on a financially sound basis. How to cite: Myslimi, G., Nikolli, E., & Shima, J. (2022). Challenges of Agricultural Insurance Development in Albania. Economicus, 21(2), 31–42.

https://doi.org/10.58944/qocp5468
Evaluating the Customer Retention and Satisfaction in the Albanian Auto Insurance
By: Eleni KALEMAJ Phd (c)

Abstract

Customers are the reason why businesses exist, prosper, and expand. Customer acquisition is the main goal for sales teams because more clients mean more money. The pandemic constrained people to reconsider how they utilize their time and what companies they do business with, including their insurance options. The insurance industry has the highest customer acquisition costs of any industry. Customer acquisition in insurance costs are nine times higher than customer retention, so ‘’Happy clients” is no longer a nice to have, but a must in the insurance industry. In order to be profitable in insurance, the industry should focus in customer experience service by improving important indicators like loyalty and retention. In this study, I seek to understand the factors that may cause an insurance services firm to lose some of its customers who have auto insurance. The findings of this empirical research utilized NPS for measuring customer loyalty in the auto insurance market in Albania. To be successful in both customer acquisition and customer retention, Albanian insurance companies must focus on the factors identified in this research in order to influence customer loyalty and adjust their marketing strategies accordingly. The importance of the study consists on the lack of any similar research that looks at customer satisfaction, retention, and reasons for customer loss in the Albanian insurance sector. These variables have not been studied together previously. As a result, the findings of this study may serve as a starting point for other studies in the Albanian insurance sector. How to cite: Kalemaj, E. (2022). Evaluating the customer retention and satisfaction in the Albanian Auto Insurance. Economicus, 21(2), 7–30.


https://doi.org/10.58944/hwau2300
Necessity for a Grand Strategy
By, Dr. Blendi LAMI & Prof. Dr. Kristaq XHARO

Abstract

Articulations of notions such as “infringement of sovereignty”, “national union”, “national strategy” or “power capacities” should be done with great prudence by Albanian policymakers. Declarations of Albanian actors have also a direct impact on the behavior of international factors. Declarations of this nature must be filtered first in the “laboratory” of a national – or even grand strategy. Albanian national power determines the behavior of states such as Albania and Kosova. National power is the most popular “currency” for communication in International Relations. Each state uses its power to secure its interests in the international arena. The nature of this struggle for power can only be examined through an analysis of power competition with other nations. No nation can punch above its weight in international relations first and foremost without considering alliances. In this context, this article aims to shed light on the weight of a small state in the international arena, which can be determined by a national strategy. This article concludes that the Albanian geopolitical space need a Grand Strategy and small countries like Albania and Kosova must harmonize their foreign policy with its strategic allies. How to cite: Lami, B., & Xharo, K. (2022). Necessity for a grand strategy. Economicus, 21(2), 160–171.

https://doi.org/10.58944/bvvv9511
Interest Articulation and Lobbying in Unregulated Legal Contexts: The Case of Albania
by, Dr. Gerti Sqapi

Abstract

The main argument of this paper is that the legal regulation of lobbying is an important factor for disciplining/curbing the undue (illicit) influence of different interest groups on the political-making process, especially in countries with post-communist and nonconsolidated democracies such as Albania. In three decades of political and economic transition from a one-party communist system to a democratic one and towards a market economy, the democratization of Albania has faced various problems, which have often led to a loss of public confidence in the political class and apathy of citizens towards the political system. In many cases, this has come as a result of the perception or even the disclosure by the media and the public of corruption scandals, political clientelism, or undue influences in the decision-making processes in Albania. Surely, it can be said that political scandals of trading or exercising illicit influences on public officials can affect, as numerous cases have shown, every democratic political system in the world. However, they are more likely to occur in new democracies (post-communist) countries that face weak state structures and a legal environment that is not yet well consolidated and where a culture of informality exists alongside written rules and laws. For this purpose, that of disciplining and controlling the influences that specific interests exert on the decision-making process of governments, legislatures, or other regulatory agencies, a good part of European countries have considered undertaking legal regulatory initiatives for lobbying activity in their environments. Key words: Lobbying, Lobbyist, Interest Articulation, Interest Groups, Trading in Influence, Public Policy, Political Clientelism, Corruption. How to cite: Sqapi, G. (2022). Interest articulation and lobbying in unregulated legal contexts: The case of Albania. Economicus, 21(2), 172–183.

https://doi.org/10.58944/uckf7388
Public policy at times of pandemic
By, Dr. Anjeza Xhaferaj & Kreshik Bello

Abstract

The paper is an attempt to analyse the benefits that remote work could bring in the development of the country. It is organized in three parts. In the first part it engages with the concept of public policy, how it is shaped and should be done to make visible problems that need to be addressed. The second part analysis the benefits of teleworking and potential models for city organization and population distribution to support country development. The last part analyses the case of Albania to discover that remote work, demography, and country development are concepts not yet analysed in connection for exploring the benefits they could bring. The paper concludes that government should invest in developing human resources in the field of digitalisation, so that the number of employees who could telework and companies that could use that expertise is increased. In this way, companies and staff do not necessarily need to locate in the capital or big cities but could locate in medium size cities and periphery. This would contribute to the development of currently neglected areas and decrease living expenses in big cities, making thus more affordable the life for the low-income workers. In doing so, not only the living conditions will improve but the gap between centre and periphery will narrow down and lead to a better distribution of economic benefits across country. How to cite: Xhaferaj, A., & Bello, K. (2022). Public policy at times of pandemic. Economicus, 21(1), 7–20.

https://doi.org/10.58944/lqdw4699
Consequences of Covid 19 – Behavioral approaches on the financial well-being, theoretical concepts
By, Phd. Irini Goga & Mikel Qafa,

Abstract

With many businesses unable to operate normally due to widespread governmentimposed lockdowns, people confront a reshape of their financial behavior. In this article we review literature to analyze the theoretical foundations of financial well-being. The ongoing current worldwide recession worries about inadequate savings, consumerism and debt accumulation are all contributing to the increase in financial stress. We follow a qualitative-descriptive method based on a broad literature review and chronological analysis. This study will contribute to favor of establishing a theory of financial well-being to define, measure, and analyze it comprehensively. The creativity of this work lies in describing and contrasting several theoretical foundations together instead of addressing them separately. Our results are of interest to those involved in research about financial well-being, subjective well-being, and the economics of happiness. Key words: financial well-being, Covid 19 – subject of well-being, economics of happiness, prospect theory, financial knowledges. How to cite: Goga, I., & Qafa, M. (2022). Consequences of covid 19 – behavioral approaches on the financial well-being, theoretical concepts. Economicus, 21(1), 21–35.

https://doi.org/10.58944/lteq8360
Use of financial technology in Albania
By, Dr. Ismet Voka & Prof. Ass. Dr. Filipos Ruxho,

Abstract

The main purpose of this study is to conduct an analysis on the use of financial technology in Albania. Fintech is a term dedicated to financial technology in the digital age. The diversity of this technological solution brings with it the promise of faster, cheaper, more secure and transparent financial transactions through the internet. Fintech business model is the specific application of Fintech in economics and financial fields. This enables users to perform financial transactions remotely, which improves the efficiency of banking transactions and saves customers time. The constant shifts towards e-commerce, digital payments, instant payments, cash substitutes have increased significantly nowadays. The document describes the policy implications regarding the promotion of relevant institutional policies in relation to increasing the use of Fintech in the country. How to cite: Voka, I., & Ruxho, F. (2022). Use of financial technology in Albania. Economicus, 21(1), 36–45.

https://doi.org/10.58944/btun9628
Implementation of new technologies as part of the fiscalization process in Albanian enterprises
by, Enida Koni, MSc. & Joana Shima, MSc.

Abstract:

Albania like no other country in the region and the EU has experimented many times in a very short time regarding legal changes related to fiscalization systems. In our country, some fiscalization processes have been done, but so far what is claimed has not been achieved, causing the state budget revenues not to increase, due to informality. This paper brings a review of the problems that the fiscalization of our country’s economy is facing and the impact that it is claimed that it will have on the Albanian economy. The purpose of this paper consists in understanding, identifying and analyzing the problems and obstacles that Albanian businesses have encountered in the fiscalization of their entity. In recent years, the fight against aggressive tax planning has become one of the top priorities internationally. International rules are examples of key measures aimed at imposing new standards of tax transparency. Setting up transparency, with companies operating in some countries must be transparent to tax collectors. It is now necessary to prove that the tax paid corresponds to the rate applied in the country in which the company operates. As a result, these new standards pose major challenges for companies’ finance departments, which then have to communicate much more accurate and consolidated tax data to the administration in much larger volumes. Too often, however, the technical means available are insufficient to provide such an amount of information at such a detailed level. Indeed, in-company data processing is neither automated nor centralized, forcing accountants and tax specialists to manually record a significant number of tax rules. How to cite: Koni, E., & Shima, J. (2022). Implementation of new technologies as part of the fiscalization process in Albanian enterprises. Economicus, 21(1), 46–62.

https://doi.org/10.58944/hogk7959
Analysis on the tourist offer of the Vlora Region, from the viewpoint of tourism stakeholders
By, Prof. Dr. Ermira Qosja & Dr. Brunilda Liçaj & Ani Mbrica & Aurela Braholli

Abstract

The tourism industry is one of the vital sectors of the Albanian economy, an important contributor to the country’s GDP, investments and employment. During the last 10 years, through the investments, marketing and services provided, this sector has tried to offer tourism products which have significantly increased the number of visitors, both Albanians and foreigners, but still reflects many issues hindering its competitiveness in the region and the increase in profits. Given the problems that accompany this sector in relation to seasonality and the small number of days of stay of tourists, as well as concerning the objectives of the National Strategy for Sustainable Tourism Development 2019-2023 , this paper aims to analyse the tourist offer of the Vlora Region from the point of view of tourism stakeholders. The qualitative method is used to analyse the tourist offer of the Vlora Region, based on a questionnaire in the form of a semi-structured interview with private operators, public operators, donors and NGOs related to the sector, and training and educational institutions. The findings of the paper highlight not only the weaknesses and strengths of the offer, but also the opportunities and threats that need to be considered. In particular, they emphasize the need for cooperation and accountability in line with roles played in the sector. How to cite: Qosja, E., Liçaj, B., Mbrica, A., & Braholli, A. (2022). Analysis on the tourist offer of the Vlora region, from the viewpoint of tourism stakeholders. Economicus, 21(1), 63–77.

https://doi.org/10.58944/gqwi6891
Behavior finance – The impact of financial behavior on economic decision-making of individuals in Albania
by, Aurora Molishti, MSc. & Dr. Sokol Ndoka

Abstract

For years the field of behavioral finance tries to explain economic actions and decisions in financial markets based on financial, psychological, and emotional factors, which affect the behavior of investing individuals. Various studies show that males are more tolerant of risk and make more risky decisions than females. The fact that men trade more than women in financial markets is attributed to the overconfidence they have. Men in addition to trading more, also own larger financial portfolios than women, but less diverse than they are. The purpose of this paper is to investigate whether gender can really influence financial decisions through risk aversion, gender, and overconfidence. The data in this paper were collected through a very close population survey, explicitly students at European University of Tirana and an Albanian individual with financial knowledge. To measure statistical differences between the gender the Chi2 statistical test was used. Through empirical findings and analysis of data obtained from the statistical test was concluded conclusions from this study. It was found that there is a tendency among females to have a higher level of resistance to risk than males. This means that Albanian women will undertake a lower risk when managing an investment portfolio. Albanian men, meanwhile, have more confidence in their financial decisions. How to cite: Molishti, A., & Ndoka, S. (2022). Behavior finance – the impact of financial behavior on economic decision-making of individuals in Albania. Economicus, 21(1), 78–90.

https://doi.org/10.58944/dxiz2762
Service Quality in the Banking System
by, Dr. Ketrina Çabiri Mijo & Xhorxhina Salaj, Msc. & Hysen Muceku

Abstract

The work environment is constantly changing thus it is a prerequisite for businesses to effectively adapt themselves to increase productivity. Various performance reports have shown that the approach how a bank operates drives its path toward growth or degradation. The purpose of this research is to provide insights on the role of service quality in the banking system, with a case study on Tirana Bank. Using financial statements as key indicators, we have provided basic information on the growth and development of Tirana Bank in Albania. Young people in Albania are the generation that understand the positive consequences of practicing emotional intelligence, shifting greater emphasis on how to achieve a worthy presentation between the equally sensitive and uncompromising “client service”. Therefore, we have collected responses of a questionnaire submitted by clients of Tirana Bank, gathering as such the necessary information to conduct a study on the importance of service quality in the banking system. Methodologically speaking, this paper uses a simple regression analysis and Cronbach’s alpha model, based on 18 questions posed to 350 clients at different ages over a period of 1 month. Through this analysis, it argues that there is a strong positive relationship between service quality and other influential variables, reliability, security, loyalty, sensitivity, vulnerability and responsibility. This means that an increase of the above factors leads to the enhancement of service quality, therefore results show that to increase the bank’s reputation, bring effectiveness to the institution and create increased competition, managers must upgrade it to the most optimal level possible. How to cite: Çabiri-Mijo, K., Salaj, X., & Muceku, H. (2022). Service quality in the banking system. Economicus, 21(1), 91–99.

https://doi.org/10.58944/hymp6890
Relationship between education and economic growth
by, Emirgena Nikolli, PhD(c) & Dr. Elona Shehu

Abstract

The purpose of this research is to examine the relationship between educational attainment and economic growth in Albania. This research analyses how educational opportunities contribute to Albania’s economic growth via the use of empirical data. Additionally, it examines the relationship between education and economic development in Albania. Using general economic theory as a starting point, this study analyses some of the potential implications for Albanian economic and educational policy. By stimulating technological innovation and boosting capital and labor productivity, education expenditure increases the economy’s revenue. Using statistical analysis, empirical research attempts to ascertain the true causal effect of educational and training quality on individual salaries, firm profitability, and the economy as a whole. The results suggest that education may be a critical factor in Albania’s long-term economic growth, making it a critical component of the country’s economic strategy. According to the study’s results, the government and private sector should collaborate to improve education quality via public-private partnerships. The impact of education on economic development and its relationship is portrayed in this study since it should be a primary goal of policymakers. How to cite: Nikolli, E., & Shehu, E. (2022). Relationship between education and economic growth. Economicus, 21(1), 100–115.

https://doi.org/10.58944/uqli8167
Neoliberalism and the global financial crisis of 2008
by, Xhesi Shkreta, MSc. & Krisdela Kaçani, Phd(c)

Abstract

This paper tends to analyze the link between the global financial crisis of 2008 and neoliberalism ideology. This crisis was, in all aspects, a multidimensional global crisis. Initially it began with the crisis of banks, credit and stock exchange, to end up in the economic recession and the disbelief of the free market models adopted in that period. It all started to emerge during 2007 as a financial crisis, which originated from bad loans in the US real estate market. Immediately, the crisis had global impact in Europe and other parts of the world. The great impact and development of such a crisis raised great questions about the ways financial markets and stock exchanges were built and operate, even doubting neoliberal practices, if they were indeed the best model of economic development that countries could adapt. This paper argues this relation, if whether neoliberalism was the main cause of the crisis, taking into consideration the arguments of neoliberals and other specialists in economic and financial field. Through inductive method used in the argument, it is concluded that global crisis of 2008 did not have a single cause, responsible for its birth and deepening, much less that it was the implication of neoliberal ideas in the economic field. It was a series of factors that inevitably led to its birth and deepening. Finally, based on the conclusions drawn, some recommendations are given, which should be implemented to avoid such crises and phenome’s in the future. The paper concludes with an appeal for companies for a higher corporate responsibility in protecting social groups affected by these crises. How to cite: Shkreta, X., & Kaçani, K. (2022). Neoliberalism and the global financial crisis of 2008. Economicus, 21(1), 116–132.

https://doi.org/10.58944/pzno4243
Structural changes of the agriculture in Korça region, aiming the sustainable development
by, Dr. Adrian Maho & Ferdinant Maho, MSc.

Abstract

Korça region is characterized by advantageous essential factors such as large areas of the fertile soil, a fresh clime, high possibilities for watering, excellent tradition of the distinguished farmers, intellectual resources etc. Agriculture – The economic sector that contributes over 24% of the GDP; • 50% of the employees work in this sector; • 52% of the population lives in rural areas. The aim of this paper is to analyze the current situation of the agriculture sector in Korça region. What are some of the structural changes of the agriculture after the privatization and the transformations of the social system. The structural changes for the agriculture in Korça region have occurred based on the analysis of the economic indicators. The farmers, in fact, are the protagonist of a transition, i.e the transformation from a conventional agriculture and productive to a sustainable and eco-compatible agriculture. The necessary elements for the development of a sustainable agriculture are not only biological or technical, but also social, economic and political and they explain the adequate needs for establishing a sustainable society. How to cite: Maho, A., & Maho, F. (2022). Structural changes of the agriculture in Korça Region, aiming the sustainable development. Economicus, 21(1), 133–140.

https://doi.org/10.58944/vgws6701
Albania: The impact of economic and fiscal policy in the agricultural sector
by, Eduart GJOKUTAJ, MSc.

Abstract

The development of the agricultural and rural sector is and has been throughout the history of the Albanian governments of importance for the economy, employment, but also wellbeing for Albania, given that this large sector currently contributes 18.4% of the country’s Gross Domestic Product and in the labor, market has a share of 36.1% of total employees. Investments in technology and innovative cultivation methods have significantly improved productivity rates over the 30-year period, as well as added value per worker. Growing exports, mainly to the European Union market are constantly increasing and new trade opportunities are emerging for the organized units of the sector. This could make the sector even more attractive for foreign investment. Given the problems that have accompanied the economic model and doing business in the agricultural sector, one of the major challenges for quality development remains the reform of the real estate regime, including agricultural land. This reform process, starting from law 20/2020, which aims to consolidate the property rights over agricultural land, is foreseen to be finalized at the end of 2028. Tax policy affects agricultural competitiveness through its impact on the levels and variability of farm incomes, agricultural workers, land investments and technology, on labor value and other activities related to the sector. Taxes on income, property and land, and capital transfers may affect structural changes, while differential tax rates on specific activities, resources, or use of inputs may affect sustainability. In this regard, in addition to tax policy, regulatory policies have a parallel impact, related to the adoption of farm regulatory practices. Given the great impact it has agriculture on the economy and the sustainability of the rural population, central government and local government stay focused in encouraging agricultural production through interventions towards higher levels of productivity and quality, as well as regulatory and tax policies. How to cite: Gjokutaj, E. (2021). Albania: The impact of economic and fiscal policy in the agricultural sector. Economicus, 20(1), 7–27.

https://doi.org/10.58944/lqik6104
The Smart Village Approach, a Solid Approach for the Development of the Albanian Agriculture
by, Prof. Dr. Petraq Papajorgji

Abstract

This paper focuses on the issues facing Albania as a country aiming the membership to the European family. First, European policies for rural areas revitalization are presented and then, the challenges Albania has to overcome to become a EU member and second, to revitalize the rural areas. Small holding size is a major concern as it does not stimulate cooperation amongst farmers. Land legal issues is another problem that needs to be addressed. The revitalization of Albanian rural areas demands investments in ICT and a collaboration between the public and the private sectors. How to cite: Papajorgji, P. (2021). The Smart Village Approach, a solid approach for the development of the Albanian agriculture. Economicus, 20(1), 28–34.

https://doi.org/10.58944/fwvt9789
Challenges facing by Micro-Insurance, as a new and unknown concept in the insurance market Case of Albania
by, Lorena Gosemi, MSc.  & Prof.Asoc.Dr. Elvin Meka

Abstract

Micro-insurance is a form of insurance, not being separated from traditional insurance, but which is mainly aimed at low-income individuals. This form of insurance applies to developing countries, where the level of population income is below the average level and where the low-income individuals occupy the highest percentage. The importance of micro-insurance in these countries applies to the fact that it includes in its packages, individuals who are excluded from traditional insurance schemes. Albania is also one of the developing countries, with low economic levels, where micro-insurance development is very important. This is also the focus of this work, highlighting the main factors that hinder the development of micro-insurance and the readiness of insurance companies or other interest parties in the application of micro-insurance. The analysis will be done through the drafting of a detailed questionnaire, addressed to 12 insurance companies operating in the country. Currently, there is no micro-insurance product in the insurance market and as such the need arises for a market analysis to study factors influencing and at the same time training and practices for insurance companies to get to know more about the term. AFSA, the entity regulatory has the main role in this process, which must undertake the strategy and practice to promote interest parties in the development of micro-insurance and the protection of low-income individuals. The results achieved in this paper support the hypothesis raised, where the factors that hinder the development of micro-insurance in the country are: high premium costs, the non-existence of a group of experts in the design of its products and the non-favourable level of technology and innovation. How to cite: Gosemi, L., & Meka, E. (2021). Challenges facing by micro-insurance, as a new and unknown concept in the insurance market case of Albania. Economicus, 20(1), 33–48.

https://doi.org/10.58944/rbva9249
Capital structure in Albanian manufacturing corporations- The main factors which determine it
by, Xhesi Shkreta, MSc.  Prof.Asoc.Dr. Elvin Meka

Abstract

For every company, decisions made on achieving an optimal capital structure are important for its life cycle and economic profitability. Properly funded investments contribute to the creation of new wealth, which reflects a high added value in the market. A number of theories have been developed by specialists, in the field of finance and economics about the capital structure and its optimal level. In general, these theories came up to conflicting conclusions. One of these theories, developed by Myers and Majluf in 1984, is the “Pecking Order Theory”, which states that companies choose to finance their activity in a certain hierarchical order, preferring domestic financing at first and if it is not possible, they will prefer to be financed through debt, and ultimately through new equity. This paper tends to analyze in which extent this theory of capital structure is applied in the Albanian reality of large manufacturing corporations. Through empirical analysis of the sample, it is analyzed to what extent manufacturing corporations taken in the study, choose to apply this preferential order in decision making between different financing alternatives. Through the inductive method used in the argument, it is concluded that “Pecking Order Theory” is widely applicable to large manufacturing corporations operating in Albania. They prefer domestic and debt financing rather than new equity. Based on the results, in the end are given some recommendations for large corporations, in order to see as an effective way of financing the issuance of new equity, or even debt securities, such as corporate bonds. How to cite: Shkreta, X., & Meka, E. (2021). Capital structure in Albanian manufacturing corporations- the main factors which determine it. Economicus, 20(1), 49–63.

https://doi.org/10.58944/wadl5916
The impact of social media on local government transparency and citizen engagement: The case of Tirana Municipality
by, Kristi Bego, MSc.  Prof. Asoc. Dr.Arlinda Ymeraj

Abstract

Over the last few decades, a decline on the trust of the citizens towards their government has been documented, leading to a fundamental concern in public administration (Denhardt & Denhardt, 2014). The perception of transparency has been identified as an important source of trust in government (Curtin & Meijer, 2006). Various authors have highlighted the potential contribution of social media in transforming the public administration towards a new and open format characterized by a) growth of the opportunity of citizens to participate in decision-making; b) improvement of public services; as well as c) promoting new forms of responsibilities. Taking advantage of the opportunities offered by social media, is not limited to the central government. Literature suggests that local governments can achieve many advantages by using social media in the communications with their citizens, and in participatory engagement strategies (Cohen, 2016; Belle, 2013; Tucker, 2011). Although local governments currently use social media to communicate, studies on how they use their platform are missing. In this context, this thesis aims to analyze the communication strategies of local governments through social media usage, and the effectiveness of these strategy in relation to transparency and citizen engagement. More specifically, this thesis examines the impact of Facebook on local government transparency and citizen engagement, focusing on the Tirana Municipality. The field of study addresses two types of different data; one consisting of an analysis of all the Facebook content posts made by Tirana Municipality for a period between June 2020-May 2021, and the other one consists of a qualitative analysis, from semi-structured interviews of the responses of Directorate of Digital Communication employees in Tirana Municipality. Finally, the conclusions of this thesis contribute towards the debate on local government transparency and citizen engagement, and provide important direction in developing suitable strategies and policies of social media activities. How to cite: Bego, K., & Ymeraj, A. (2021). The impact of social media on local government transparency and Citizen Engagement: The case of tirana municipality. Economicus, 20(1), 64–82.

https://doi.org/10.58944/jkcz1065
New territorial reform and its effects on the administration and management of local taxes in the Tirana Municipality
by, Xhensila Meçollari & Prof. Assoc. Dr. Arlinda Ymeraj

Abstract

Local government has an enormous role in a country’s economy. They practice functions and competencies through which they regulate and administer their proper functioning in accordance with law, national and regional politics. In Albania have been a lot of reforms and administrative-territorial divisions, which have failed to make a real decentralization of service delivery to citizens. The new territorial reform approved by law 115/2014 “For the administrative-territorial division of local units in the Republic of Albania” aimed to increase the managerial skills of local government units, to increase capacity for a qualified staff, to increase local revenues and to provide better services to citizens and coverage of necessary services. Reforms needs time and involve a process that cant be carried out without the consultation and consensus of all parties included. In the Albanian context, territorial reform is an advantage because through good organization and management, increase the opportunities to integrate into the European Union. This study aims to analyze the effects brought by the new territorial reform in the administration and management of Local Taxes, and Fees in the Municipality of Tirana, the way how unification of data in a single tax system influenced the fulfillment of this goal and the role of human resources in the process of reform implementation. The methodology of this study is based of data collected from semi-structured interviews with the directors of Human Resources and IT department in Directorate of Local Taxes and Fees in the Municipality of Tirana and also focus groups with employees of two departments. How to cite: Gosemi, L., & Meka, E. (2021). Challenges facing by micro-insurance, as a new and unknown concept in the insurance market case of Albania. Economicus, 20(1), 33–48.

https://doi.org/10.58944/smvh3937
Measuring the Effect of Covid-19 on Bank Lending: Empirical Evidence from Albania
by, Monika Kolleshi & Prof. Dr. Anilda Bozdo

Abstract

This study aims to empirically contribute to the identification and evaluation of microeconomic and macroeconomic indicators at the level of lending in Albania. It identifies a number of important factors, such as the level of gross domestic product, return on assets, unemployment rate, inflation rate, non-performing loans rate, capital adequacy, liabilities and regulatory capital to assets risk weighted. Quantitative analysis and econometric models will study the quantitative impact of each of these factors on both the level of net credit stock and the level of new credit. The creation of these 2 econometric models will serve us to measure and evaluate the changes encountered in the dependent variable over a given period of time, as a result of shocks from other variables. Also, a current and important contribution to this thesis relates to the impact assessment of COVID-19. In order to maintain the simplicity and usefulness of the model, some realistic features of the current economy have been left out, such as the level of loan repayment etc. The study period is from the first quarter of 2009 to the fourth quarter of 2020. The data used were obtained from the Bank of Albania and the Albanian Association of Banks, which were presented in the form of a time series. Despite the limited number of data considered regarding the impact of COVID-19 as well as their temporal distribution, this study with the work it performs, serves as a good starting point for further studies in this field. How to cite: Kolleshi, M., & Bozdo, A. (2021). Measuring the effect of covid-19 on bank lending: Empirical evidence from Albania. Economicus, 20(1), 101–120.

https://doi.org/10.58944/tegl4439
The impact of remittances on Albania’s GDP
by, Valentin Çela, MSc

Abstract

The article will discuss the impact of remittances on Albania’s GDP it is organized in four sections. The positive and negative theories of remittances, their distribution methods, kinds, and their theoretical link to GDP will be discussed in the first section. The second section will discuss the results of the VAR model’s investigation of the influence of remittances on GDP, as well as a summary of their conclusions. The other segment will look at the micro impact of remittances, by conducting a survey of remittance’s recipients and summarizing their findings. The last part will discuss the study’s findings, as well as pertinent references. Official statistics is expected to record more remittances, even though the real number of remittances may drop, because digital transfers are better documented than cash remittances, especially those made by hand or transferred through other informal channels. Between 1992, when the first emigrant inflows began, until the end of 2019, some USD 29 billion in migrant inflows have entered the Albanian economy. During the last ten years, the average yearly inflow has been around 10% of GDP. They have provided revenue for 13% of the family’s budget. The money was split half and half between food and education and other programs. As banks have curtailed services for migrants to 10 years, the current wave of migration has recovered the growth in remittances. What is the economic impact of remittances? How to cite: Çela, V. (2021). The impact of remittances on Albania’s GDP. Economicus, 20(1), 121–142.

https://doi.org/10.58944/opsl4329
Reviving Albania’s economic growth through Roma inclusion
by, Prof. Assoc. Dr. Selami Xhepa

Abstract

The purpose of this policy paper is to review the economic conditions related to economic growth after the pandemic of COVID 19 in Albania and policies that could improve such prospects through inclusive policies and better integration of Roma communities. The numerous negative shocks that happened since the global financial crisis of 2008, have caused major changes in the fundamentals of growth and development. Fiscal imbalances, labor market and demographic trends have worsened, posing major challenges to a return of the economy at growth rates needed for achieving convergence with developed economies. How to cite: Xhepa, S. (2020). Reviving Albania’s economic growth through Roma Inclusion. Economicus, 19(1), 5–35.

https://doi.org/10.58944/ysod3136
“LEGAFORMALESTY” – a different approach for a new amnesty in Albania
by, Prof. Asoc. Dr. Elvin MEKA

Abstract

Governments have periodically turned to tax amnesties, as a mechanism used in the frame of their fiscal programs, or partly to activate more capital in the national economy and establishing the fiscal rule to a new higher level. As a non-traditional instrument, it can be used to smooth out inconsistencies, arising from the existence of a tight tax regulatory framework, in an economic environment that experiences highly dynamic changes, within a short period of time. The implementation of the fiscal amnesty is not mainly related more to a country’s stage of economic development, or to the level and professional competence of the bodies collecting fiscal obligations, than to the practical objective that is required to be achieved. In Albania, various governments have made several efforts, back in 2011 and 2017, to implement the fiscal amnesty but, unfortunately, they were partial and failed to meet their initial goals and objectives. This is because they were not comprehensive and, above, all did not contain the key element, that of legal amnesty and secrecy. For an amnesty to be successful in Albania, it is proposed that, along standard elements of tax amnesty, it must also consider the legalization of all real assets built without permission, or illegal ones, as well as the formalization of various business activities, combined with the legal amnesty. Combining these elements would create an advantageous synergy, in terms of maximizing the expected economic effect, thus using amnesty not just as a classic instrument of collecting some more budget revenues and increasing fiscal discipline in the future, but as a lever that produces an efficient moment for the country’s economic development. How to cite: Meka, E. (2020). “LEGAFORMALESTY” – a different approach for a new amnesty in Albania. Economicus, 19(1), 36–47.

https://doi.org/10.58944/woev2291
Audited financial statements increase the certainty and efficiency of decisions made by organizations
by, Prof. Assoc. Dr. Hysen MUCEKU & Msc. Geralda MUCEKU & Msc. Krisdela KAÇANI

Abstract

The quality and accuracy of financial information is very important in making the right decisions by the parties that use this information during their activities. To conduct an audit, the information must be in a verifiable form and have certain standards / criteria by which the auditor can evaluate the information. Managers of various levels within the organization, shareholders, investors, creditors, government, are all interested in the quality and accuracy of the information contained in the financial statements. In the exercise of their activities, financial auditors in Albania face problems that affect the quality of the services they provide, especially problems related to the environment where they operate and professional ethics, as the economic environment presents problems that create  difficulties in practicing the profession according to standards and professional ethics. Also, an important challenge is educating business leaders on the long-term benefits of accurate financial reporting that leads to increased business value, as well as raising their awareness of the importance of establishing efficient internal control systems over financial reporting. How to cite: Muceku, H., Muceku, G., & Kaçani, K. (2020). Audited financial statements increase the certainty and efficiency of decisions made by organizations. Economicus, 19(1), 48–55.

https://doi.org/10.58944/niuz2417
Trade secret, a perpetual monopoly asset of the businesses
by, Prof. Assoc. Dr. Kreshnik Bello

Abstract

Intellectual Property (IP) is the commercial application of imaginative thought to solving a technical or artistic challenge. It is not the product itself, but the special idea behind it, the way the idea is expressed, and the distinctive way it is named and described. A trade secret (which is a component of IP, and sometimes either equated with, or a subset of „confidential information“) is secret, non-public information concerning the commercial practices or proprietary knowledge of a business, public disclosure of which may sometimes be illegal. Trade secrets (protection) management is seen as one of the most important issues in the strategic management of the business organisations. Under this general framework, it is important for us to understand the level of importance of the trade secrets and their management (as expressed by the activities pertaining to the management of the trade secrets), in Albanian businesses. Many companies in Albania see the trade secrets as important assets, so the conduction of a research with the focus on trade secrets, in some companies of this country, adds value to their management strategies. The aim of this research is to investigate the level of importance of the trade secrets in business organizations in Albania. The methodology used for the research is unfolded with its own dimensions as: specification of the research subjects, tools used for the research, sampling, implementation plan, ethical issues and presentation of the research findings. The research is based on primary and secondary data collection. The research is based on the testing of the main Hypothesis, H0, and some other SubHypotheses, and the results of the analysis indicate that hypothesis H0: “Trade secrets are not important assets for the business organizations in Albania”, is invalidated. Some important conclusions are given at the end of this paper. How to cite: Bello, K. (2020). Trade secret, a perpetual monopoly asset of the businesses. Economicus, 19(1), 56–69.

https://doi.org/10.58944/wsga9870
Exemption of civil dilectual responsibility
by, Prof. Dr. Agim Nuhiu

Abstract

Causing damage is also related to objective law. Violation of subjective right is a violation of the concrete material legal norm. Whenever the subjective right is violated or violated, its holder is guaranteed the right to protection by a certain legal norm, respectively to avoid the consequences that have come from illegal actions. The person who, illegally and culpably, causes damage to another person or his property, is obliged to compensate the damage caused. The person who caused the damage does not respond when he proves he is not at fault. Damage is considered illegal when it is the result of a violation or violation of the interests and rights of another, which are protected by the legal order or good customs. The damage must be a direct and immediate consequence of the action or omission of the person. Failure to prevent an event by the person who has the legal obligation to avoid it, charges him with liability for the damage caused. How to cite: Nuhiu, A. (2020). Exemption of civil dilectual responsibility. Economicus, 19(1), 70–78.

https://doi.org/10.58944/fykq9863
A Model to Analyze the Financial Decision-Making of a Corporation Case Study KESH SHA
by, MSc. Arjola SAKO

Abstract

In order for corporations to operate effectively, it is necessary to emphasize the importance of financial decision-making in the stability of corporate governance. This paper is based on addressing two main issues. First, focusing on the key decisions of financial executives whose work should focus on maximizing corporate value or minimizing the cost of capital. Second, deepening the impact of the auditor’s characteristics on the performance of the corporate governance so that the audit creates added value for the entity. It aims to give a fresh perspective of the treatment of financial decision-making in corporations, arguing every step through the empirical analysis of the DuPont model where we rely to compare the performance over the years under review of the KESH sh.a (Albanian Electro-Energetic Corporation). The difference between the ordinary and the extraordinary is made by practice and financial decision-making is a topic that is both beautiful to deal with and difficult to analyze in information. We are all witnesses of the economic situation of our country. On the one hand we have a transition economy that is growing at a normal pace and on the other hand we have a community whose business is already trying to move to a consolidated stage becoming more competitive. Only in this way can corporations in Albania survive the demanding conditions of the global economy. How to cite: Sako, A. (2020). A model to analyze the financial decision-making of a corporation case study Kesh Sha. Economicus, 19(1), 79–97.

https://doi.org/10.58944/wgot3088
The value of virtual project management in the Albanian market
by, Prof. Asoc. Dr. Arlinda YMERAJ & Greta MULLA

Abstract

The growth of the internet and the development of collaborative software have introduced a new dimension of project management. This paper explores the literature evaluating virtual project management and virtual teams to determine the extent of new technologies affecting projects with members in distributed locations. It has been found the new communication channels offer opportunities for participation, but it is even more difficult to manage a virtual team than a team on site. The ever-increasing importance of projects in the market is leaving businesses looking for better integration techniques to virtualize their project environments. Through virtualization, organizations can have positive impacts on communities across geographic boundaries and resource constraints. Virtual project management is a discipline that embodies the potential of connection when talented are geographically dispersed to achieve shared project success. Available research confirms that this is a challenging goal. Factors like time difference, different cultures, or lack of face presence results in added complexity to managing virtual teams. However, if one is able to overcome these obstacles, the results are promising. Empirical research emphasizes that the demand for VPM is constantly increasing, and it even seems clear that there is no going back. How to cite: Ymeraj, A., & Mulla, G. (2020). The value of virtual project management in the Albanian market. Economicus, 19(1), 98–114.

https://doi.org/10.58944/ghvr6809
What can the Albanian government do to effectively combat youth unemployment?
by, Dr. Arlinda Ymeraj

Abstract

Youth unemployment in Albania continues to be critical, despite improvements during the last years. According to INSTAT (INSTAT, 2021) youth unemployment in December 2020 was 21.7%, 0.3 % higher than a years ago. Young graduates are the ones who suffer the highest levels of unemployment. The same report, while analyzing the unemployment rate by educational level, showed that about 14.4% of young people with secondary education and 12.3% of young people with higher education, are unemployed. The more progress advances, the more its contradictions are identified. Economic growth produces wealth, but it fails to secure jobs to everyone. By far, free market economy enhances a variety of unlimited opportunities, but it leads to hardships and inequalities, as well. The unfinished debate on “globalization” and its impact on markets, seems to hide the changes that have occurred on social relations sphere, which affect the people’s social welfare. The generation of 21st Century is challenged by a new social conflict. Whilst in the yesterday’s era, the conflict was between those below and above the threshold of income, in the present society, the conflict is “from outside to inside”, in other words, the conflict between inclusion and exclusion. In the today society, especially after Covid, youth unemployment appears a global challenge. Access to jobs can bolster self-esteem and produce benefits for societies beyond incomes. Programs that support employment for at-risk populations, including youth, can consider the ways in which jobs affect peoples’ attitudes, values, and behaviors and contribute to improved relations between groups. Arguably, in countries with high youth unemployment, like Albania, targeted training programs as well as empowerment of entrepreneurship through financial incentives, have the potential to be designed to strengthen self-esteem, which can lead to greater community involvement and reduced inequality and exclusion. The paper “ What can the Albanian government do to effectively combat youth unemployment” advances the argument of effectiveness of employment policies, which must support initiatives that originate from young people themselves. The best entrepreneurship practices from Shkodra and Vlora, two important regions of Albania are elaborated in depth to provide necessary evidence, thanks to a research, supported by OSCE mission in Albania, Extra Budgetary project “Promoting regional intermunicipal co-operation and dialogue for self-employment of women and youth”. How to cite: Ymeraj, A. (2020). What can the Albanian Government do to effectively combat youth unemployment? Economicus, 19(1), 115–132.

https://doi.org/10.58944/nkfk1256
The Efficiency of Fiscal System from the Albanian Taxpayers’ Viewpoint
by, Prof. Asoc. Dr. Elvin MEKA & Prof. Asoc. Dr. Hysen MUCEKU

Abstract

In order to build an efficient fiscal system, it is important to analyze not only the government’s activity in the design and implementation of fiscal policy and fiscal system administration, but also how such activity is perceived by taxpayers, as one of key stakeholders of this system. Fiscal policies implemented by governments over the years are largely focused on the objective of realizing budget revenues, rather than building an efficient fiscal system that produces consistent results. This paper addresses the efficiency of the fiscal system, in the perspective of Albanian taxpayers’ viewpoint, by focusing on three main directions: Fiscal burden. What is the fiscal burden and a general information on the fiscal burden in Albania compared to the region countries and the EU, and how the current fiscal burden is perceived by Albanian taxpayers. Fairness (Justice) of the fiscal system. Deals with horizontal justice and vertical justice, the principles of well-functioning of a fiscal system and their implementation in Albania, as well as the perception of Albanian taxpayers on the justice system of the fiscal system. The goods and public services received by the taxpayer in comparison with their contributions. Good public governance offers good and low-cost services and with the right standards. It also looks at how efficient the Albanian governments were in providing public goods and services, and how the taxpayers perceived the benefits they received compared to their contributions. The paper concludes with the main conclusions of the functioning of the current fiscal system and recommendations for improving the system based on the perception of taxpayers. How to cite: Meka, E., & Muceku, H. (2019). The efficiency of fiscal system from the Albanian taxpayers’ viewpoint. Economicus, 18(1), 5–13.

https://doi.org/10.58944/ifll3574
Evaluating Entrepreneurship Thorough The Lens of Institutional Quality and Social Capital Theory
by, Prof. Dr. Ermira QOSJA & MSc. Ina KEÇI

Abstract

This paper investigates how the structural domain of social  capital and institutional quality explains the current and expected entrepreneurial behavior. Based on the literature of social capital and institutional theory this article aims to examine the strength of the relationship between the degree of trust, norms, networks, and associations within a society with governance quality. By using a quantitative methodology, the data collected through the Global Competitiveness Index for 72 businesses in Albania are processed by conducting descriptive statistics and correlation analysis. The study intention is to explain the impact of perceived assessment for country institutions at entrepreneurial action in order to create a social relationship in society based on trust, norms, and networks. The results showed the significance of perceived trust and quality at public and private institutions as important predictors of entrepreneurship behaviors toward market or network orientations. How to cite: Qosja, E., & Keçi, I. (2019). Evaluating entrepreneurship thorough the lens of institutional quality and social capital theory. Economicus, 18(1), 14–40.

https://doi.org/10.58944/maza6546
Trends and problems of business decision-making
by, PhD. Irina CANCO

Abstract

In the face of competition, business managers should focus on the quality of decisionmaking. This paper provides an assessment of decision-making methods by discussing the current trends of managers referring to decision-making methods. The paper is an analysis of the attitudes of managers towards decision-making methods. This paper is conducted through questionnaires. It also discusses the impact of decision-making methods on business financial performance. Eventually, some conclusions will be drawn. How to cite: Canco, I. (2019). Trends and problems of business decision-making. Economicus, 18(1), 41–47.

https://doi.org/10.58944/slvq2883
The genesis of the Sharing Economy in Albania: The Mobike platform in Tirana
by, Manjola HËNKOJA

Abstract

The “sharing economy” has attracted a great deal of attention in recent years. This paradigm offers transformative potential for the facilitation of the exchange of goods and services online. Although widely discussed phenomenon, sharing economy is a concept almost unknown in Albania, mainly due to the absence of Uber, BlaBlaCar, Airbnb and other platforms which have catalyzed its rise. However, it’s only a matter of time until we see their launch even in Albania. For instance, thanks to the rise of tourism industry, Booking.com operator has already extended its business model in the Albanian real estate market. While a large share of the debate tends to focus on how sharing economy affects different sectors (transportation, accommodation, food, finance, etc.) and legislation (labor, competition, data protection etc.), sharing economy brings also various benefits both for consumers and businesses. Therefore, the purpose of this paper is to explore the rise of sharing concept and its related regulatory challenges. In addition, an empirical methodology has been adopted. Firstly, I carried out a questionnaire on sharing economy awareness in Albania, aiming, on the one hand, to offer a chance of the current users’ knowledge of sharing economy and, on the other hand, hoping that my statistics data may play a significant role on the future market decisions of platforms’ providers who wish to invest and expand in Albania; further, this paper offers the opportunity to introduce Albanian’s academics into the (unexplored) world of platform economy and the chance for the government of Albanian to be prepared in case of future required regulation; and, secondly, I decided (mainly due to the absence of other sharing platforms in Albania) to have Mobike – a bike mobility sharing platform – as a case study for this paper. Finally, I drew up my conclusion on the impact that sharing economy will have in the Albanian economy. How to cite: Hënkoja, M. (2019). The genesis of the sharing economy in Albania: The Mobike platform in Tirana. Economicus, 18(1), 48–69.

https://doi.org/10.58944/juhk5746
Russia in the Western Balkans: Montenegro, Macedonia and Serbia
by, Erlis HOXHA & Resina PLLAHA

Abstract

The eurozone crisis has produced an increasing influence of Eastern countries in the Balkan region. Indeed, the Western Balkans has been subject to growing Russian attention, particularly in the economic dimension. The present paper assessed Russian impact in Montenegro, Macedonia and Serbia. Considering the data from these three countries the strongest economic influence has been found for Serbia, a country which has close proximity to Russia not only in economic terms but also political stance, religion etc. Conversely the Russian influence in Macedonia and Montenegro has been mainly economic, while the latest has more recently taken a few steps back from Russia towards a pro-European approach. It might be claimed that the lack of vision and the uncertainty of European Union decisions in relation to the Balkans, would promote a pro-Eastern influence not only from Russia but also other countries such as Turkey and China. Nonetheless at the moment such influence seems to be mainly economic and less political. How to cite: Hoxha, E., & Pllaha, R. (2019). Russia in the Western Balkans: Montenegro, Macedonia and Serbia. Economicus, 18(1), 70–78.

https://doi.org/10.58944/sxoo7340
A general overview of business information systems, in the function of market recognition.
by, Ukshin GASHI

Abstract

Today we witness the reality of a world that is changing with the rhythm and very high dynamics, in particular in the field of information and communication technology, which has made it possible for the market and the competition in every field of human activity, to develop globally. At the same time, we are aware that technology development provides a chance and opportunity for all, regardless of their location or group affiliation. Thanks to this development of information and communication technology, it has become possible to realize sophisticated Information Systems, which have created opportunities for mass use in almost every sphere of human activity. In this regard, in this paper we have chosen the topic of: A General Overview of Business Information Systems, applied in the function of market recognition. These enables companies to store, create, transform and distribute information and conducting in-depth and complex business data analysis, in order to recognize the market in general, and decision making support to the managers and developers of business planning and marketing strategies! How to cite: Gashi, U. (2019). A general overview of business information systems, in the function of market recognition. Economicus, 18(1), 79–103.

https://doi.org/10.58944/hkmr1940
Tourism, gambling and sustainability: Myths and paradoxes of accountability
by, Maria-Gabriella BADARELLI

Abstract

In the transition from weak to strong sustainability (more…)
Reflections on 20 years of Albania development
by, Adriana Galvani

Abstract

Albania is one of the countries which most had experienced massive (more…)
In-line water safety systems based in wireless sensor networks
by, Mimoza DURRESI

Abstract

Living in the modern times is becoming more challenging every day. (more…)
The main factors affected the insurance market in albania and their impact on increasing voluntary insurance premiums
by, Dr. Ermela Kripa, Dr. Orkida Ilollari

Abstract

This paper analyses the insurance market in Albania, including its (more…)
The issues of FDI-s in Albania during transition
by, Holta Kora, Prof. Dr. Anilda Bozdo, Dr. Anila Fureraj

Abstract

The topic selected was oriented from the current issues in the field (more…)
Impact of credit risk and exchange rate risk on the performance of commercial banks in Albania during the period 2005-2015
by, Sokol Ndoka, Krisdela Kacani

Abstract

This study analyzes the impact of credit risk and exchange (more…)
Student perception comparison on learning methods based on thinking styles
by, Ariel Ora, Roland Sahatcija, Anxhela Ferhataj

Abstract

Universities are always seeking new teaching methods. (more…)
The causal relationship between government revenue and expenditure: evidence from Albania
by, Tatjana MOCKA

Abstract

A sound fiscal policy is important to promote price stability and sustain (more…)
Economic freedom and growth: exploring statistical significance of the relationship in the balkan economies
by, Prof. Dr. Selami Xhepa

Abstract

Enhancing economic freedom remains a key policy objective (more…)
Impact of fiscal decentralization on local economic development
by, Fatlum Nurja

Abstract

Many reforms have been undertaken in local governance after the (more…)
Evaluation method and privatization of public property in the field of hidrocarbons in Albania: An analysis of influencing factors
by, Petrit Perhati

Abstract

Most of scholars focusing on privatization view the property appraisal (more…)
War against poverty target group focused policies
by, Anila Nanaj

Abstract

Over the last two decades Albania has been undergoing radical (more…)
An alternative method to evaluate the teaching’s standards
by, Prof. Dr. Engjell Pere, Arjan Tushaj

Abstract

The article applied the DOE approach to evaluate the (more…)
A theorical model of mandatory use of e-government system adoption: factors afecting digital notarial system
by, Dr. Agim Kasaj, Dr. Hysen Binjaku

Abstract

Even though all government around the world are investing (more…)
A theoretical and empirical approach in the restaurant sector
by, Elvira Tabaku

Abstract

This study is based on the literature review of the tourism industry in (more…)
Strategies for handling supply chain disruptions. A cross comparative case study approach
by, Denisa Mamillo

Abstract

Interest in supply chain disruptions increased after 2001, (more…)
The impact of individual factors in ethical determining of pharmaceutical marketing
by, Dr. teuta Xhindi, Ines Abdyli

Abstract

This study provides the impact of individual characteristics, (more…)
BGP: A protocol for the“inter domain”routing
by, Ledina Karteri

Abstract

Border Gateway Protocol (BGP) is the current protocol inter-domain (more…)
Social media and brand management (literature review)
by, Elvira Tabaku

Abstract

Social media use has expanded greatly in the last years in Albania. (more…)
Valuation of factors that affect employment in the albania banking system: An analysis based on design of experiment (DoE) method
by, Prof. Dr. Engjell Pere, Prof. Dr. Elvin Meka

Abstract

Design of Experiments (DOE) is a statistical method (more…)
Charting as a powerful technique for analyzing financial markets
by, Dr. Kreshnik Bello, Dr. Orkida Ilollari, Edlira Margilaj

Abstract

A chart is the traditional tool of the market analysis. (more…)
Albanian banking system under international supervisions standards, Basel III emprirical evaluation of macroeconomic effects
by, Jehona Gjermizi

Abstract

The aim of this article is to measure the positive and negative effects (more…)
Auditing as a way to increase cyber security
by, Dr. Orkida Ilollari, Manjola Islami

Abstract

Nowadays, businesses are building bottomless real-time connections (more…)
Determinants of bank credit to the private sector – a case study from CESEE countries
by, Rilind Ademi

Abstract

The banking sector constitutes almost all of the financial sector in the CESEE (more…)
Contigent valuation of environmental assets: literature review
by, Dr. Oltjana Zoto

Abstract

Background Decision-making with respect to the management of (more…)
Italian financial expansion to National Bank of Albania and SVEA (1925 1939)
by, Lavdosh Ahmetaj

Abstract

Political and economic interest of Italy towards Albania, (more…)
Trade barriers: Theory and applications
by, besarta Vladi, Ornela Vladi

Abstract

Globalization’s acceleration since the mid-1980s was (more…)
Principal-Agent problem: a theoretical view of administrative behaviour
by, Dr. Ketrina Cabiri

Abstract

Politics consist of the shifting interplay of actors with (more…)
Analysis of the implementation process of SAPARD and IPARD programme in Slovenia and Macedonia
by, Ani Mbrica

Abstract

The Special Accession Programme for Agriculture and Rural Development (more…)
Corruption in Albania and its economic impact
by, Sali Shehu

Abstract

Corruption is one of the most problematic concerns for all the countries (more…)
A Macroprudential Policy Framework for Albania
by, Ela Golemi

Abstract

This paper discusses a framework for macroprudential policy (more…)
Financial Crisis and the Role of Auditing Services in its Management
by, Dr. Hysen Muceku

Abstract

Sustainability and efficiency of financial and operational systems (more…)
Corruption in Albania Quantitative Analysis of the Impact on Economic Growth
by, Giacomo Morabito

Abstract

Corruption is usually considered a strong constraint on economic growth (more…)
Private Capital Funds and their Role in Albanian Financial Market
by, Prof. Dr. Elvin Meka

Abstract

The prolonged stagnation bank credit expansion, especially after (more…)
From Cash to Electronic Money: Albania as Case Study
by, Arbi Agalliu, Megi Kurushi

Abstract

Albania is classified among countries with middle income by the World Bank (more…)
Utilizing Monetary & Fiscal Policy
by, Mandi Tabaku

Abstract

Monetary and fiscal policy has been around for decades, (more…)
The Risk of Exhange Rate and its Connection with the Performance of the Banking Sector in Albania.
by, Sokol Ndoka, Ermela Kripa

Abstract

The exchange rate is a highly debated issue among economists (more…)
A Literature Review on the Determinants and Measures of Competition in Banking Sector
by, Zerina bruci, Dr. Anilda Bozdo

Abstract

The level of competition in the banking sector is important to the performance (more…)
Informality and Challenges of Fason Sector’ Businesses
by, Grisilda Miftari

Abstract

The paper aims to study informality, as one of the current (more…)
How Secure is the Integrity of Your Data?
by, Manjola Islami, Irena Kreci

Abstract

Nowadays, businesses are building bottomless real-time (more…)
Is Savings a Determinant of Economic Growth in Developing Countries? (The Case of the Albanian Economy)
by, Oltjana Zoto, Zerina Bruci

Abstract

The question of whether a savings-led economic development (more…)
The Development of SMEs in Albania􀀀 Case Study of The Vlora City
by, Krisdela Kacani, Grisejda Myslimi

Abstract

Various studies assert that there is a positive correlation between SME (more…)
The Travelling Salesman Problem, Applications and Solvers
by, Luarik Helshani, Ervin Ramollari

Abstract

The travelling salesman problem (TSP) has puzzled mathematicians (more…)
Mainstreaming ICTs for Smart Growth: Dynamics of Research, Development and Innovation in Albania
by, Erjon Curraj

Abstract

In the context of a knowledge-driven economy, knowledge, (more…)
Human Capital and Economic Growth in Albania
by, Tatjana Mocka

Abstract

Human resource development is one of the necessary conditions (more…)
Paniku bankar dhe ndikimi i tij në likuiditetin e sistemit bankar
by, Oltjana ZOTO, Iris KRUJA, Enkeleda XHAKONI

Abstrakti

Qëllimi i këtij kërkimi është vënia e theksit në rolin e madh (more…)
Politikë monetare – një analizë deskriptive mbi lehtësimin sasior
by, Ilda Malile

Abstrakt

Qëllimi i këtij artikulli është të ofrojë një analizë deskriptive (more…)
Koncepti i politikave makro-prudenciale dhe zbatimi i tyre nën optikë e Bazel III
by, Orkida Ilollari

Abstrakti

Termi “politikë makroprudenciale” është përdorur përgjithësisht (more…)
Ndikimi i teknologjisë në sistemin bankar
by, Kristal Hykaj

Abstrakt

Ekonomia e vendit tonë, gjatë njëzet viteve të fundit, (more…)
Rajonalizimi i shoqërive të ujësjellës-kanalizimeve: eksperienca ndërkombëtare dhe rasti i Shqipërisë
by, Evis Gjebrea

Abstrakt

Decentralizimi i ofrimit të shërbimit të furnizimit me ujë dhe (more…)
Planifikimi dhe buxhetimi gjinor i shërbimeve sociale në Bashkinë e Tiranës
by, Dr. Teuta Xhindi

Abstrakti

Buxhetimi gjinor është një koncept relativisht i ri jo vetëm (more…)
Tregu i lirë si sistem efecient Prevalenca e Shkollës Austriake Ekonomike
by, Nevila Mullaj

Abstrakt

Shkolla Austriake Ekonomike ka kontribuar në ekonominë moderne, (more…)
Të ardhurat nga remitancat dhe rritja ekonomike në Shqipëri (1992– 2013)
by, Dr. Engjell Pere

Abstrakt

Remitancat nga emigrantët shqiptarë kanë luajtur (more…)
Një platformë mbi politikat industriale në Shqipëri
by, Prof. Dr. Selami Xhepa.

Abstrakt

Shumë pak është folur për politikat e zhvillimit industrial që (more…)
Menaxhimi i inovacionit në kompanitë e mëdha në Shqipëri dhe faktorët kushtëzues
by, Besarta Vladi Abstrakt Inovacioni është kthyer tashmë në faktor kyç për çdo ekonomi (more…)
Propozime të reja fiskale
by, Mateo Spaho

Abstrakt

Një nga argumentet që më shumë i interesojnë komunitetit (more…)
Menaxhimi i Rrezikut: Analizë statistikore mbi ecurinë e kredive të këqija në Shqipëri
by, Dr. Ermela Kripa, Prof. Asoc. Dr, Arbi Agalliu

Abstrakt

Shqipëria si një vend në tranzicion, ka pësuar ndryshime (more…)
Fuqizimi i artizanatit përmes lidhjes së tij me turizmin (Rajoni Shkodër)
by, Dr. Ermira Qosja, Vasilika Zeka

Abstrakt

Kultura është një nga pasuritë më të mëdha të çdo vendi, (more…)
Studim empirik: Roli i shpenzimeve qeveritare në rritjen ekonomike (Rasti i Shqipërisë)
by, Sara Hafizi

Abstrakti

Objektivi i këtij punimi është që, nëpërmjet një modeli empirik, (more…)
Lehtësirat e klimës së biznesit Fason (rasti i Krujës)
by, Florinda Hasani

Abstrakti

Shqipëria vlerësohet si një vend me potenciale të larta zhvillimi, (more…)
SmartGrid- Një vizion i ri për Rrjetin elektro-energjetik shqiptar
by, Anni DASHO SHARKO, Genci SHARKO

Abstrakt

Kërkesa dhe miratimi i një modeli të ri të liberalizuar, (more…)
Analiza e dispersionit kromatik në linjën optike backbone
by, Besim LIMANI, Mimoza DURRËSI, Arben SYLEJMANI

Abstract

In my country the continuing growth in the transmission (more…)
Vështrim i përgjithshëm mbi Data Mining, lidhja e saj me teknologjitë Machine Learning, DBMS, statistikat
by, Esmeralda HOXHA, Llambrini SOTA

Abstrakt

Të dhënat dhe informacionet luajnë një rol të rëndësishëm në aktivitetet (more…)
Dogana në periudhat e integrimit, që nga fillesat e saj gjer në vitin 1991
by, Arjan Hoxha

Abstrakt

Ky punim ekzaminon arkitekturën e sistemit doganor, (more…)
Rrjetet sociale – Mundësi marketimi për kompanitë shqiptare
by, Manuela Mece, Barana Tahiraj

Abstrakt

A vlejnë Mediat Sociale për të komunikuar me klientët tuaj? (more…)
Raporti papunësi-inflacion në Kosovë: një vlerësim ekonometrik për periudhën 2003-2014
by, Fisnik MORINA, Kestrim AVDIMETAJ

Abstrakt

Evidencat empirike mbi inflacionin dhe papunësinë sugjerojnë, (more…)
Procesi i privatizimit në Republikën e Kosovës
by, Bajram FEJZULLAHU

Abstrakt

Ndër ngjarjet më të rëndësishme të shekullit të kaluar, (more…)
Cilën strategji zhvillimi duhet të privilegjojmë?
by, Adrian Civici

Abstrakt

Cilat janë politikat dhe strategjitë më të mira dhe më të përshtatshme (more…)
Diversifikimi i burimeve energjetike si domosdoshmëri për sigurinë energjetike në vend, mundësitë dhe dilemat për energjinë bërthamore
by, Arbër QYSRI, Përparim FUGA

Abstrakt

Sot, prodhimi i energjisë (primare dhe sekondare), përbën një çështje (more…)
Roli i termocentraleve në prodhimin e energjisë elektrike në Shqipëri
by, Aleks Palnikaj

Abstrakt

Ndërtimi i termocentraleve për prodhimin e energjisë elektrike në (more…)
Zhvillimi i bashkëpunimit rajonal në kuadër të integrimit evropian, një parapërgatitje menaxheriale drejt globalizimit
by, Teuta Nunaj

Abstrakt

Në këto kohë zhvillimesh ku shtetet e Ballkanit Perëndimor, po punojnë individualisht (more…)
Menaxhimi i njohurisë si praktikë e re në organizatat e biznesit në Shqipëri
by, Edlira MARGILAJ, Kreshnik BELLO

Abstrakt

Hapat e shpejtë të globalizmit dhe progresit teknologjik kanë (more…)
Praktikat e menaxhimit të dijes në institucionet financiare në Kosovë
by, Gentrit Berisha

Abstrakt

Synimi i këtij artikulli është të kuptuarit nëse dhe në çfarë (more…)
Financat dhe Partitë Politike – “Më thuaj si financohesh, të të them se ç’parti je”
by, Anjeza Xhaferaj

Abstrakt

Punimi ka marrë në shqyrtim rolin që luajnë donacionet (more…)
Radikalizmi në shpjegimin e konflikteve shtetërore
by, Lavdosh Ahmetaj

Abstrakt

Radikalët argumentojnë se imperializmi sjell rivalitet midis shteteve në zhvillim, (more…)
Transferimi i kapitaleve jashtë Shqipërisë dhe tregu i munguar i kapitaleve
by, Elvin Meka

Abstrakt

Transferimi i kapitaleve jashtë Shqipërisë po fillon të tërheqë (more…)
Evidencë empirike mbi rolin e autonomisë fiskale në rritjen ekonomike rajonale
be, Eniel Ninka

Abstrakt

Nevoja për të patur një ekonomi më efikase dhe rritje ekonomike (more…)
Integrimi i informacionit të Indeksit Global të Konkurrueshmerisë në një model statistikor graviteti për Shqipërinë
by, Dorina Cumani

Abstrakt

Literatura dhe studimet e kohëve të fundit kanë zgjeruar fokusin (more…)
Roli i shtetit në tregjet financiare
by, Teuta Ismaili MUHARREMI

Abstrakt

Ky punim ekzaminon arkitekturën e tregjeve financiare duke (more…)
Lufta kundër evazionit fiskal
by, Amarilda Xhaferri

Abstrakt

Krimet financiare përbëjnë veprime të kundërligjshme që cenojnë (more…)
Arsyet për të investuar në Shqipëri dhe Kosovë
by, Nakije Kida

Abstrakt

Kujdesi për çështjen e Investimeve të Huaja Direkte (IHD) (more…)
Përdorimi i mediave sociale për qëllime marketingu në institucionet e arsimit të lartë në Kosovë
by, Gonxhe Beqiri

Abstrakt

Mediat sociale paraqesin një ndër metodat më efikase për të promovuar (more…)
Një studim mbi sjelljen e konsumatorëve të telefonisë mobile në Shqipëri
by, Elvira Tabaku, Dr. Shpetim Cerri

Abstrakt

Qëllimi i këtij punimi është që të hetojë marrëdhëniet shkakësore që (more…)
Inkotermat si një shprehje e praktikave tregtare në kontratën e shitjes së mallrave
by, Irena Lavdari

Abstrakt

Kontratat e shitjes paraqesin sot një inters të veçantë në lidhje me (more…)
Komputime bayesian, përafruese për procese me memorie të gjatë
by, Ejona Kodra

Abstrakt

Metoda “Approximate Bayesian Computation” ose metoda likelihood (more…)
Ndërmarrjet e vogla dhe të mesme 2.0, një kërkim i bazuar në raste studimore
by, Erind Hoti

Abstrakt

Termi “Ndërmarrja 2.0” është një term i ri dhe në rritje që propozon (more…)
Roli i lidershipit në zhvillimin e ndërmarrjeve publike. Posta dhe telekomi i Kosovës (PTK. sha)
by, Ilir Bytyci

Abstrakt

Lidershipi është aftësia për të krijuar vizion, kurajo dhe koncepte të reja. (more…)
Posedimi dhe përdorimi i planeve të biznesit me vështrim të veçantë në bizneset e Komunës së Istogut
by, Zymer Tafaji, Gentiana Tolaj

Abstrakt

Ky punim shtjellon temën e posedimit dhe përdorimit të planeve të biznesit (more…)
Elemente dhe tendenca të mirëqeverisjës në zhvillimin social dhe ekonomik të Shqipërisë
by, Shkendije Demaliaj Ukaj

Abstract

Reforma në Administratën Publike është tendencë globale. (more…)
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Exploration of marketing tools for the promotion of protected areas (Albania)
by. Ana KEKEZI

Abstract

Promotion and marketing are identified as main pillars to tourism sector in Albanian Government strategy 2017 – 2021. Protected Areas as a tourism destination is a new notion to Albanian citizens and stakeholders given isolation of these areas during communism regime and the decade after. This study will aim to bring light on how new tools of marketing may influence and impacts the promotion of PAs in Albania as tourism destinations and how stakeholders are engaged, accept and perceive these new marketing and communication approaches and the use of modern and digital promoting tactics. This study responses the call of researchers for further studies in developing countries for a deeper exploration in tourism industry. How to cite: Kekezi, A. (2019). Exploration of marketing tools for the promotion of Protected Areas (Albania). Economicus, 18(2), 5–31.

https://doi.org/10.58944/ckxi1920
The Italian Archaeological Mission in Albania before and during World War II
by. Lida MIRAJ

Introduction

In 1924 Albania was in a very chaotic political state. After the elections of January, when Ahmet bej Zogu (1895-1961), a former Austro-Hungarian officer, educated in Military school in Constantinople (1903-August 1912), took power, there was a coup attempt against him on February 23, and the government changed in March. Ahmet bej Zogu left Albania in early June and, from June 16 Father Fan S. Noli, head of the Democratic Revolution and Albanian Prime Minister, led the government. Zogu was back in Tirana on December 24 and assumed power again. On the January 31, 1925 Ahmet bej Zogu was both President and the head of the Government.\ How to cite: Miraj, L. (2019). The Italian archaeological mission in Albania before and during World War II. Economicus, 18(2), 32–45.

https://doi.org/10.58944/uqpp6218
In-line water safety systems based in wireless sensor networks
by. Mimoza DURRËSI

Abstract

Living in the modern times is becoming more challenging every day. Industrial wastes, pesticides, toxins used from the humans are becoming a real threat for their health. In all this closed cycle the most important is to secure the air and water purity. All the wastes go in the water that we drink and this happens every minute and every hour. Public health threats are major incentives encouraging the development of new technologies for in-line monitoring systems that can optimize operation of the large scale supply networks, prolong service life, evaluate performance and improve the security of water supply to customers. The purpose of this paper is to contribute toward improving the water purity, testing and monitoring the resources where we get the water or in other words the in-line monitoring and control of the water systems. In this paper we study, design and test a new protocol of communication between toxin detecting sensors. This system is going to help with monitoring of water sources in order to signal any change in the toxicity threshold. The protocol makes possible the communications between sensors covering a wide area ensuring the quick and efficient communications with the monitoring centers and updating their respective databases. On the other hand the database entries over a threshold value will cause an alarm for stopping filling water from the respective spot, until the parameters become normal as a result of automated systems interventions.In this protocol only few nodes will held the communication within a mini cluster of sensors, giving the possibility for good quality and low cost communications. Those mini clusters can be fixed or moving depending from the kind of the water source. How to cite: Durrësi, M. (2019). In-line water safety systems based in wireless sensor networks. Economicus, 18(2), 46–56.

https://doi.org/10.58944/xszd8835
The Stability of Money Supply in the View of Monetary Unification
by. Phd C. Altin Zefi

Abstract

This study is focused on the effect of the money unification process of Albania and mainly in the effect of this process into the money supply. During the recent discussions about integrating our country into the European Monetary Union, a money illusion was conceived without taking into the consideration the rational effects of this process into the savers of the economy. Beyond this illusion— after analyzing the advantages and disadvantages of the unification process— this paper aims to look up into the main obstacles this process bears; for instance this article carefully observes the misalignment issue of inflation and exchange rate after the possible currency conversion in Albania. The main indicators on which our analysis is based are: money supply, interest rates, targeted inflation, GDP and velocity of money velocity. Further this paper aims to examine the relationship between money supply, GDP and targeted inflation. Based on this study we drive these following issues to a solution on the reference of Fisher’s Quantitative Theory of Money. Based on an empirical analysis, we expect to find a controversial behavior of money supply after the currency substitution. This research paper opens a new lieu of discussion in terms of academic and decision making debates. How to cite: Zefi, A. (2019). The stability of money supply in the view of monetary unification. Economicus, 18(2), 57–75.

https://doi.org/10.58944/frem6678
Technological Innovation of Small and Medium Enterprises in Kosovo: Challenges and Barriers
by. Valon KASTRATI

Abstract

The ability to innovate, is the main challenge in the fast changing global markets, to maintain a stable economic development in the long term. The ICT can carry strategic incentives to adjust the economic structure and to modify the economic model of a country. This process can build a resource-saving and a environmentally friendly society. The technological innovation can improve the international competitiveness of the economy and the overall employment rate of young generations. The rapid development of SMEs has become a major force to support economic growth of Kosovo. However, small and medium enterprises in transitional economies are not always trusting technological innovation. Several businesses due to multiple internal and external environmental factors, show a low level of confidence over technological innovation. In fact, from an internal point of view, the management can be afraid of security issues, like leak of strategic information, or moreover company secrets. The typical example can be the reluctance to adopt cloud technology platforms to improve the management tasks and operations. Meanwhile the external threat can be an overturn of the management style that threatens positions and hierarchy within the organization. This paper aims to analyze some key factors that prevent the spread of technological enhancement in small and medium enterprises in Kosovo. Some typical case studies will be analyzed and further policy recommendations will be suggested. How to cite: Kastrati, V. (2019). Technological innovation of small and medium enterprises in Kosovo: Challenges and barriers. Economicus, 18(2), 76–82.

https://doi.org/10.58944/ocgn9446
The impact of new media in the promotion of protected areas as tourism destination (Albania)
by. Ana KEKEZI

Abstract

The tourism sector has lately become a key sector for the Albanian economy. Promotion and marketing are identified as the main pillars of the tourism sector. Protected Areas as a tourism destination is a new concept to Albanian citizens and stakeholders, given the isolation of these areas during communist regime. On the other hand the promotion of PAs to enhance tourism is also a new practice followed by government and stakeholders, during the last decade only. A crucial phenomenon of the present decade reshaping the world, is the worldwide accessibility to the internet. New media is increasing its usage immensely and is gaining significant ground each year toward traditional media. This study will bring light on how new media influence and impacts the promotion of PAs in Albania as tourism destinations, as researchers have called for further studies in developing countries on this field of study. How to cite: Kekezi, A. (2020). The impact of new media in the promotion of Protected Areas as a tourism destination (Albania). Economicus, 19(2), 5–31.

https://doi.org/10.58944/ogdp7306
Development of successful entrepreneurial education initiatives enabled by EU funded projects – The case of FH JOANNEUM
by. Bojan JOVANOVSKI, Rupert BEINHAUER, Elizabeta VALENTIC, Doris KIENDL.

Abstract

This paper presents the lessons learned from different formal and non-formal entrepreneurial education initiatives at the University of Applied Sciences FH JOANNEUM in Graz, Austria, conducted in the period 2016-2019. Four projects funded through the European Commission provided the opportunity to explore a variety of teaching and learning methods to develop the “sense of initiative and entrepreneurship” as one of the key competencies for life-long learning set by the European Union. While the target groups were different and the objectives were manifold, all of these projects aimed at fostering this key competence for students to effectively develop and implement creative and market-oriented ideas. Different entrepreneurial education methodologies have been developed and customised for the requirements of the target group and setting. This paper analyses them using the “Learning by sharing model” by Thijssen & Gijselaers. The analysed teaching methods and approaches have different efficiency for alternative target groups or objectives. The Business Case Challenge allows to involve intercultural student groups in intensive casework with real live cases. A blended approach which combines a MOOC, face-to-face teaching, presentations and mentoring by a role model has proven to successfully provide entrepreneurial competencies to athletes. A moderated MOOC for entrepreneurship, including interactive teamwork and professional moderation to keep participants to be consciously active, resulting in high completion rate on an offline level. Finally, action learning sets and the development of business models for case studies through e-communication are presented as alternative learning model for international teams. Based on the in-depth analysis of these cases, the authors have proposed four factors which may serve as a frame for the development of successful entrepreneurial education initiatives in various education and training environments. The frame offers an additional fifth factor, student career development, which is specifically significant for formal education institutions. How to cite: Jovanovski, B., Beinhauer , R., Valentic, E., & Kiendl, D. (2020). Development of successful entrepreneurial education initiatives enabled by EU-funded projects – the case of FH Joanneum. Economicus, 19(2), 32–48.

https://doi.org/10.58944/sget2362
Trademark, the marketing name of the business
by. Kreshnik BELLO & Orkida ILOLLARI & Sokol NDOKA

Abstract

Any sign which is „capable of distinguishing“ the products or services of one business from the products or services of another business is capable of constituting a trademark. As the essential function of a trademark is to exclusively identify the commercial origin of products or services, any sign which fulfils this purpose may be registrable as a trademark. The symbol (™) is a symbol to indicate that the preceding mark is a trademark. It is usually used for unregistered trademarks, as opposed to the registered trademark symbol (®) which is reserved for trademarks registered with the appropriate government agency. Trademarks and the rights they grant are seen as one of the most important issues in the strategic mangement of the business organizations. Under this general framework, it is important for us to understand the role of mark in the marketing of product/service the level of importance of the trademarks and their rights management, in business organizations in Albania. So, the purpose of this research is to investigate the role of mark in the marketing of product/servicein business organizations in Albania, as well as to find out if a relationship between role of mark in the marketing of product/service and other specified managerial issues, is present in such organizations. The research is based on the testing of the main Hypothesis, expressed as: H0. Trademark does not play an important role in the marketing of product/service in the business organizations in Albania; and on the testing of six other Sub-Hypotheses, trying to find out if a relationship between the role of mark in the marketing of product/service and the other specified variables, is present in such organizations. The research is based on primary and secondary data collection. Some conclusions are also specified at the end of this paper. How to cite: Bello, K., Ilollari, O., & Ndoka, S. (2020). Trademark, the marketing name of the business. Economicus, 19(2), 49–61.

https://doi.org/10.58944/cfyz8625
Network management as a success factor (a comprehensive literature review)
by. Dr. Besarta VLADI & MSc. Enida BROCA

Abstract

The economy and the focus of organizations are heading more as it goes towards human resources. The challenge of global companies is to create recognitions and to being coherent with individuals of similar fields or successful people. The main task of such organizations is to manage the relationships with the latter. As founder of Moz, Rand Fishkin said: “Don’t build links, build relationships”. The research question which this paper attempts to answer is: How does the network management affect the success of an organization? Our hypothesis laid ahead suggests that the focus of companies in network management, guarantees the long-term success of the organization. According to the review studies of this paper, Silicon Valley is the best example to understand the importance of network management especially in innovation. “Shared creativity” suggests that best problem solving is retained through sharing, diversity skills collaboration and experiences, targeting the achievement of a common goal. Leaders and the companies, including Albania, which are focused on this area have achieved excellent results in total revenues as well as knowledge. In this paper, we aim to design a framework for a successful implementation of the network-oriented business strategy, key ingredients of which, are human resources strategy, network competence and innovation success. How to cite: Vladi, B., & Broca, E. (2020). Network management as a success factor (a comprehensive literature review). Economicus, 19(2), 62–75.

https://doi.org/10.58944/oiyh9352
Evaluating entrepreneurship framework through perceived institutional quality
by. Prof. Dr. Ermira QOSJA & MSc. Ina KECI & Edna PIRANI

Abstract

The aim of this paper is to emphasize the crucial role of the perceived institutional quality at entrepreneurial intention. Relying on literature review of institutional theory, competitiveness theory, and referring to the first pillar of Global Competitiveness Index (GCI) this study brings an assessment of public and private institutional framework, as an incentive to entrepreneurship action and behavior. The paper investigates the institutional perceived framework from a sample of 72 business in several cities in which are concentrated business and entrepreneurship activities in Albania. By using a quantitative methodology the data collected through the survey of GCI, are processed by conducting descriptive statistics analysis in order to evaluate the institutional quality related with country competitiveness. The findings are in accordance with the literature description for efficient driven economies, and they contribute for policymakers which must take into account all the instruments in improving the institutional quality for its essential role in promoting entrepreneurship. How to cite: Qosja, E., Keci, I., & Pirani, E. (2020). Evaluating Entrepreneurship Framework through perceived institutional quality. Economicus, 19(2), 76–95.

https://doi.org/10.58944/qxda6807
Foreign Exchange Risk in Albania
by, Besion KOLLI

Abstract

Foreign exchange risk is the potential for loss due to an adverse change in foreign exchange rates, and applies to all exchange rate–related products whose positions are valued in a currency that differs from the bank’s reporting currency. Eventual movements in the exchange rate are a risk for investors and businesses with international operations. Therefore, they adopt strategies to minimize the impact of eventual adverse movements. This is known as hedging, and it involves using financial instruments to increase protection against currency fluctuations. Hedging makes transactions, cash flows and cost structures more stable and predictable. There are different strategies which are designed to manage foreign exchange risk. Each of them, however, is constructed under specific assumptions, for a specific risk profile. The question arises as to which strategy would be expected to yield the best results in a given scenario. The first part of the current study describes how do banks measure and hedge the foreign exchange risk by using a set of simulated foreign exchange cash flows to compare the profits resulting from the use of different foreign exchange risk management strategies. The key risk metrics to measure the foreign exchange risk considered for this study are: Value at Risk and Stress Testing. The risk management strategies considered to hedge foreign exchange risk for the study are: forward currency contracts, currency options, and currency swaps. The study analyses and evaluates these foreign exchange risk management strategies to find out which of the strategies is appropriate in particular situations for banks and for non-financial corporates. The second part gives some statistics about the open foreign currency position and the risk appetite in the Albanian banking market, and how non-financial firms could use financial derivatives to hedge the foreign exchange risk. How to cite: Kolli, B. (2020). Foreign Exchange Risk in Albania. Economicus, 19(2), 96–104.

https://doi.org/10.58944/cprp6511
Rebus approach in training professionals for digital economics through educational information technologies
by. D. KAZNACHEEV & B. KRUK & E. METELEVA & S. PLAKIDINA Abstract The development of the digital economy raises issues of harmonization of students’ knowledge, skills and competencies with actual social challenges. In this regard, educational institutions around the world actively investigate innovative approaches to teach disciplines of higher and additional professional education. The approach of European educational Erasmus+ REBUS project represents one such approach, in the frames of which a course “Digital Entrepreneurship” is taught at SibSUTIS. Experience in teaching the course showed that student training in the learning environment Mahara with the use of such tools as Moodle and LEVEL5, allows students to acquire additional education of European quality by developing new competencies in a quicker and more effective way. Moreover, REBUS approach allows to develop, implement and teach new courses for students of telecommunication and infocommunication profiles. In the light of global trends in the development of digital technologies, and also in order to logically continue the trend of cooperation between SibSUTIS and universities of the European Union, it is necessary to consolidate and develop the competencies achieved by students through the design on further educational programs and commercially successful cases of Russian and European IT companies in the field of e-commerce, Internet of Things and Artificial Intelligence. The relevance of the study of commerce in the digital economy is due to the fact that information and communication technologies (ICT) are becoming increasingly important for businesses, consumers and governments in all sectors of the economy and around the world. The Internet of Things Entrepreneurship program allows to improve an ability to develop business plans, and manage projects on computer networks of devices. The Artificial Intelligence Entrepreneurship program aims to improve an ability to develop business plans, manage projects on creation of networks that can correctly interpret external data, learn from these data and use the results to achieve specific goals and objectives through flexible adaptation. How to cite: Kaznacheev, D., Kruk, B., Meteleva, E., & Plakidina, S. (2020). Rebus approach in training professionals for digital economics through Educational Information Technologies. Economicus, 19(2), 105–117.

https://doi.org/10.58944/emat7996
Assessing export challenges faced by Albanian SMEs
by. Dr. Filip RUXHO & Dr. Ismet VOKA

Abstract

Nowadays, small and medium-sized enterprises (SMEs) are increasingly being recognized as a vital part of a country’s economy. Albania is a country in transition and, after the communist era, has been on a difficult path to overcome many social, political and economic difficulties. The purpose of this paper is to analyze and investigate the SMEs in Albania and the levels of exportation as an important element for EU integration. This study is mainly of investigative and explorative nature, aiming to conclude which industry sector exports the most and to highlight the main partners (in terms of nations) and also to identify or flag the perceived barriers that Albanian companies classify as impediments to exporting goods. The instrument used was a questionnaire of 50 items and the participants were Albanian organizations (N = 163) from different sectors of the economy. Data were analysed using IBM SPSS Statistics 20. The results indicate that the main three barriers that impede them from exporting are: the lack of planning about exportation, the difficulty of finding new clients in EU and the high levels of the accompanying risk. For 30% of the tradable sector, the difficulty of finding new clients in the European market was considered as one of the most challenging, anyway, it should be noted that only 36% of this sector plans to export in the next 1-3 years. Despite their perception towards barriers, most of the organizations were planning to export in the future. How to cite: Ruxho, F., & Voka, I. (2020). Assessing export challenges faced by Albanian Smes. Economicus, 19(2), 118–128.

https://doi.org/10.58944/nxee8864
Challenges and Opportunities presented to the Albanian Economy and Labor Market during the Pandemic
by. Aurela BRAHOLLI, Dr.

Abstract

The Covid-19 pandemic highlighted many problems in the structure of the economy and hence in the employment sector as a very delicate sector for the Albanian economy. This unpredictable factor that has affected the world economy is giving its blows every quarter to the Albanian economy. The unemployment rate has a downward trend making unemployment a major problem for the economy. The main purpose of this study is to argue and analyse the impact of the pandemic factor on the economy, specifically the employment and unemployment rate in Albania during the economic year 2020. The period of the past year has shown how government subsidy has affected or not the reduction of unemployment as a consequence of business closures. It is worth mentioning that in this paper we will try to create a comparison of two exhaustive analyses of the reports published by INSTAT and interpretations of the data of the financial year 2020. Based on these data, we will create an overview of the unemployment situation and employment in general Albania during the pandemic period. How much impact has the pandemic and the health crisis had on the economy, and what is the consequence of the pandemic in the labour market expected to continue? In conclusion, we will suggest the formulation of a group of political policies by engaging experts in various fields. These policies will not only be crucial to confront the imminent issues caused by Covid-19, but they will also be very important to overcome the general crisis created by it. How to cite: Braholli, A. (2021). Challenges and opportunities presented to the Albanian economy and labor market during the pandemic. Economicus, 20(2), 5–19.

https://doi.org/10.58944/qjev3863
Is it worth to pay health insurance?
by. Arlinda YMERAJ, (Assoc. Prof. Dr.) Abstract This paper addresses the efficiency of the health care system in Albania vis-à-vis citizens’ social solidarity demonstrated through financial contributions to respond to the dilemma of Health Care reform in Albania, namely “financing the right mix of public-private provision of health care through more public funds, ensured either by the state or by the society-contribution”. The evidence-based analysis of budgets allocated to health care system is used to formulate findings regarding “health care system efficiency” and draw conclusions vis-à-vis the relevance of social solidarity. There is a belief that “social solidarity” should raise awareness about people’s right and boost investments into health care services. However, the evidence argues that such a belief is not justified. The public health care services do not provide equality neither of utilization nor of access in a time when private provision does not offer a solution to the problem. Therefore, the burden is returned on Public Health Care policies which should make the effective use of “social solidarity” and guarantee that it pays off for the best of citizens. The paper is composed of four sections. Section 1 provides rationale for discussion focused at “Social Solidarity” as the key argument. Section 2 explain methods of research. Section 3 provides an overview of health care system in Albania, addressing some critical concerns that deny the right to health care for certain groups of society. Section 4 advances arguments regarding the way in which “social solidarity” is misused in Albania, leading us to key findings, whilst the last section formulates some conclusions, responding to the addressed questions as well as tackling the role of civic and social education of citizens in addition to law enforcement to guarantee that social solidarity pays off. How to cite: Ymeraj, A. (2021). Is it worth to pay health insurance? Economicus, 20(2), 20–40.

https://doi.org/10.58944/khrf1900
Developing a Strategy to facilitate Knowledge Transfer across Muli-Generation Workforce
by. Dr. Edlira MARGILAJ

Abstract

Demographic changes have influenced companies around of the world to have an increasingly diverse workforce. This is in terms of experience, culture, age groups (generations), level of knowledge etc. Differences between the generations of the workforce and the ageing of the workforce carry the risk of losing the knowledge that experts or knowledge workers possess when they leave the organization (retirement or voluntary dismissals). The transfer of knowledge from knowledge workers or experts to new or less experienced employees is an important issue for organizations, particularly with regard to the transfer of hidden knowledge. Despite the importance of the issue, few articles examine how to use knowledge management to transfer knowledge in today’s multi-generational workforce. Recognizing the differences between the generations of the workforce will help the managers of the organizations to determine strategies and methods for transferring knowledge across this multi-generational workforce. The purpose of the paper is to draw attention to the necessity of the creation and maintenance of organization memory across transferring knowledge and to provide guidelines for organization management to transfer knowledge across a multigenerational workforce. To recognize the characteristics between the generations of the workforce as one of the success factors for the transfer of knowledge, the field literature has been explored. Thereafter statistical data have served to support the imperative importance of transferring knowledge from older (holders) to younger (needy). Mentoring has been introduced as the most used method for incorporating knowledge within the organization. How to cite: Margilaj, E. (2021). Developing a strategy to facilitate knowledge transfer across the Multi-generation workforce. Economicus, 20(2), 41–51.

https://doi.org/10.58944/rgbl3030
The Impact of Covid-19 pandemic on Inbound Tourism Development. Case of Shkodra Region
by. Elida BOSHNJAKU

Abstract

Since COVID-19 spread, tourism has been hit particularly hard globally, also in Albania, in particular, inbound tourism with a drastic drop in tourist arrivals out from the country because of travel restrictions, airport closures, nationwide lockdowns, health risks etc. There is evidence that incoming tourism agencies in the tourism sector have registered lots of cancellations, a decline in the visits and spending of tourists. To give a deep and practical insight related to what is mentioned above, this paper introduces a study on the impact of the Covid-19 pandemic situation to the development of inbound tourism in Albania in general, and in specific in the region of Shkodra. The focus of the research was to analyse the challenges faced and changes made in the activity of some incoming tourist agencies in Albania which organize tourist visits in the Shkodra region. For this paper was raised the hypothesis “Covid-19 changed the way of offering tourism”. The methodology used was primary research based on a survey completed by a sample of 25 incoming tourist agencies operating in Tirana and Shkodra city, which organize tourist visits to the Shkodra region, as well as the secondary research based on an analysis of books, journal articles, academic papers, web posts etc. Based on the findings of the study it resulted that incoming tourist agencies, negatively impacted because of the pandemic spread, were changing their tourist offer, rearranging their offer by taking measures to be safely adapted considering the Covid-19 situation, by making new planning of tourist group size, types of adequate segments, destinations to visit, promotional and price strategies etc. With the progression of vaccination of people, and improvement of the situation, the forecast for future inbound tourism assumes a start and gradual recovery, albeit slow at first, during the summer and autumn of 2021 with visits to friends and relatives; holiday visits, and business trips. How to cite: Boshnjaku, E. (2021). The impact of covid-19 pandemic on inbound tourism development. Case of Shkodra region. Economicus, 20(2), 52–70.

https://doi.org/10.58944/crnv4321
The use of debt as a tax avoidance form in Albania
by. Prof. Assoc. Dr. Elvin MEKA & Ilva ISA, PhD(c) & Krisela NGJELA

ABSTRACT

Under Albanian law, entrepreneurship may be organized in any of the following forms: the sole entrepreneur, general partnerships, Limited Liability Companies (Shpk), Joint Stock Companies (SH.A). Limited Liability Companies, otherwise known in Albanian law as “sh.p.k”, are companies founded by natural or legal persons whose liability for obligations undertaken by the company are limited to their contribution and the share is divided in proportion of the contribution. The basic capital of a “sh.p.k” (or LLC) is fixed to ALL 100 and cannot offer its shares in public. Our research interest will be focused on Limited Liability Companies and their financing activities. These activities include financing in forms of debts or loans and owner’s contribution. Otherwise, the owner may grant funds to the business, the loan is formal with a contract including interest; interest on the loan is taxable to the owner personally when it is repaid. The repayment of the principal is not taxable, since one has already paid the taxes on it and this is the first reason why we often find “Owners Liabilities/loans” in the liability section of the balance sheet. As this item, found in the balance sheet can be included, funds are withdrawn by the owner for “an illegal” purpose, such as bribery. Many companies face bribery and other non-declared transactions. There appears to be no unified definitions of bribery that specifically states what is considered bribery. However, it is globally recognized as giving a reward or ‘knockback’ to a person, in an attempt to sway opinions or behaviors for personal advantages. In this paper, we look through a descriptive and comparative analysis at how companies use debt to avoid tax, actions and policies government is expected to take and what is the current approach to combating this form of tax avoidance, and what more needs to be done. The focus of this paper is to consider debt as a deductible cost, but many of the same issues arise for other deductible costs, such as management fees, insurance contracts or intellectual property fees. The aim will be to have a look at how companies account for bribes paid to third parties in their financial statements and what should be done to detect and prevent this phenomenon. How to cite: Meka, E., Isa, I., & Ngjela, K. (2021). The use of debt as a tax avoidance form in Albania. Economicus, 20(2), 71–80.

https://doi.org/10.58944/pvzj6511
Venture Capital Funds in Albania – Is it the Right Time to Show Up?
by. Dr. Eugen MUSTA & Prof. Asoc. Dr. Elvin MEKA

Abstract

In the age of innovation and technology, there is a lot of attention put into start-up business ideas. This is no surprise considering the great and unbelievable changes that happened in the last 50 years, because of companies like: Microsoft, Apple, Google, Amazon, Facebook (just to mention a few), all of which started as “garage” start-ups. What made it possible for these start-ups to make it though was not because they started small out of garages, but because they were able to find financing from Venture Capital and Private Equity funds. Private Equity capital and especially Venture Capital funds are a crucial part of the start-up ecosystem as they specialise in providing financing to start-up companies and small businesses that are believed to have long-term growth potential and thus their presence in the economy promotes entrepreneurship, improves borrowing and also can strengthen the capital market. Even though there have been some PE initiatives in Albania, for the time being, there are no established PE or VC funds. However, with recent years’ attempts to establish a functional capital market and with the prospective changes made to the legal framework, regarding the regulation and support for innovative start-ups, etc. may be the time is right for us to witness the birth of Private Equity/Venture Capital Funds. How to cite: Musta, E., & Meka, E. (2021). Venture Capital Funds in Albania – is it the right time to show up? Economicus, 20(2), 81–93.

https://doi.org/10.58944/ihnf2766
Comparisons of stakeholders’ perception towards the developing of cheese tourism. Case study – Gjirokastra region
by. Irina CANCO, PhD & Prof.Dr. Drita KRUJA

Abstract

The rapid development of tourism in recent years opens study perspectives of various dimensions. One of these dimensions is culinary tourism. This paper is an attempt to present, find and discuss from a theoretical and practical point of view some of the problems of culinary tourism, focused on treating the Cheese Road as a specific direction of culinary tourism. The paper offers new knowledge on the cheese road referred to a certain area, specifically in the district of Gjirokastra, which has outstanding tourist values. The analysis proved that cooking is a direction with significant priorities for the development of tourism. Empirical data collected from terrain through the questionnaire were processed using descriptive statistics. The analysis of the data evidenced the interest of the inhabitants of the area for the cheese road. The paper will also bring real obstacles to the development of the cheese route. How to cite: Canco, I., & Kruja, D. (2021a). Comparisons of stakeholders’ perception towards the developing of cheese tourism. Case study – Gjirokastra region. Economicus, 20(2), 94–106.

https://doi.org/10.58944/ztwk1839
Assessing the Technology and Innovation Used for Business Development by Albanian SME
by. Dr. Ismet VOKA & Prof. Assoc. Dr. Filip RUXHO

Abstract

The purpose of this paper is to analyze the technology and innovation used for business development by Albanian SMEs. This paper investigates if Albanian companies use innovation or integrate technology components into their daily activities with the purpose of developing their business. The instrument used was a questionnaire of 50 items and the participants were Albanian organizations (N = 163) from different sectors of the economy. Data were analyzed using IBM SPSS Statistics 20. Findings show that the sales team of these companies use computer systems on the ground to manage customer-related business activities such as sales and billing, at a rate of 25.5% at a time when 74.5% of them do not use it for purpose. The trade sector uses these systems the most (45.8%), followed by the Manufacturing sector (40%). Other data show that 95.1% of businesses think they have improved their products/services satisfactorily over the past 12 months, while only 4.9% of them do not think so. As far as product design/services are concerned, 40.5% choose to apply international standards, 37.4% of them think and create their own, while 19% of them use a mix of both methods. How to cite: Voka, I., & Ruxho, F. (2021). Assessing the technology and innovation used for business development by Albanian SMEs. Economicus, 20(2), 107–115.

https://doi.org/10.58944/aioi1542
©, the protector of the original intellectual works
by. Prof. Assoc. Dr. Kreshnik BELLO & MSc. Bledi SELAJ

Abstract

Imagination feeds progress in the arts as well as science. Music, painting, sculpture, architecture, novels and other works of art are created by individuals who are not content with the old and instead see and express ideas and emotions in new ways. Copyright protects original works of authorship fixed in a tangible medium of expression. It protects literature (e.g. poetry, musical lyrics, writings, software, etc.), drama, music and choreographic works, pictorial, graphic and sculptural works (e.g. drawings, photos, blueprints, computer screen displays associated with software, buildings, etc.), and many other intellectual works. Original works are protected upon fixation. Notice, e.g. „© Name, Year, All Rights Reserved“, is not required but is recommended. It bars innocent infringement defenses and may deter some copying. The copyrighted work may also be registered at the Copyright Office. Registration is generally required for filing an infringement action and provides enhanced remedies. Copyright registration is therefore recommended for works having commercial significance. Copyright management (protection) is seen as an important issue in the management of firms and institutions whose key products include written or audio and video materials. Those firms use copyright actively for protection. Under this general framework, it is important for us to understand (research) if the Copyright/s is/are important, for those entities. The methodology used in this paper is unfolded with its own dimensions as: specification of the research subjects, tools used for the research, sampling, implementation plan, ethical issues and presentation of the research findings. The research is based on primary and secondary data collection and on the testing of the main Hypothesis. Some important conclusions are given at the end of the paper. How to cite: Bello, K., & Selaj, B. (2021). ©, the protector of the original intellectual works. Economicus, 20(2), 116–128.

https://doi.org/10.58944/nqee1699
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The newly proposed tax & criminal amnesty in Albania – A bumpy and dangerous ride! EDITORIAL
By, Prof. Asoc. Dr. Elvin MEKA

EDITORIAL

Last year, the Albanian Government revisited the idea of undertaking and implemented a tax amnesty, following the previous partial amnesties, conducted during the last decade, but with a significant difference: this time the proposed amnesty is projected to be a comprehensive one, that is a tax & criminal amnesty. This is the first time, since Albania joined the market economy, that such type of amnesty is being proposed and aimed for implementation within the national economy. Notwithstanding the comprehensive nature, the newly proposed amnesty seems to have positioned the government in front of a solid wall of opposition and disapproval from all other stakeholders, from the business community, civil society and international and supranational institutions, like IMF, World Bank and EU delegation. Such disapproval is not accidental, and there is no coordination among “opponents” in this regard. The opposition is built around the most debated issue: the risk of implementing an institutionalized and comprehensive money laundering scheme. Basically, the newly proposed amnesty is shaped as a very complex and strange undertaking and rather poorly designed in legal terms, and in this way, it will be practically impossible to reach a broad consensus for approval from the entire political spectrum, which would make it even more serious, reliable and easily applicable. The most awkward point is surely the vast conflict it is positioned with basic organic laws, like: the Criminal Code and Civil Code, and also the respective legal framework, regulating the prevention and money laundering and the financing of terrorism. On the other hand, it seems that the proposed draft law on amnesty does not comply with the constitutional principles and concepts of guaranteeing the rule of law and fair competition, along with being a serious moral hazard for the entire fiscal discipline. Conclusively, it should be emphasized that the undertaking of a tax and criminal amnesty should not be considered a taboo in itself, but it must be drafted in full compliance with the existing legal and regulatory framework and also designed as a powerful mechanism that supports the long-term economic development, along with its traditional short-term objective of increasing tax income for the government.
The new tax and investigation (criminal) amnesty in Albania – Some legal and economic considerations in comparison with the Italian case
By, Prof. Asoc. Dr. Elvin MEKA, Enida BOZHEKU, PhD, A.L.

Abstract

The Albanian Government intends to undertake a comprehensive tax and criminal amnesty, which is totally different from the two previous ones, which were not only partial and not truly tax amnesties but lacked the criminal component. This paper tries to shed light on key economic, financial and legal inconsistencies and pitfalls such draft law contains in the proposed form. Notwithstanding its good intentions, going down to practical and legal grounds, the amnesty that is being proposed constitutes in itself a very complex and difficult decision, for the very twilight landscape it depicts. Also, as the legal analysis shows, the proposed fiscal and criminal amnesty creates open conflicts with other organic laws (Criminal Code and Civil Code) and the respective legal framework that regulates the aspects of prevention of money laundering and the financing of terrorism. Furthermore, using a comparative analysis with the Italian fiscal and penal amnesty, it results that in the case of the Albanian draft law on the (fiscal & criminal) amnesty, the inconsistency between the entities to which the voluntary declaration can be applied, the general exemption from criminal liability in case of declaration of assets, regardless of the source of their creation, leaves clear space for abuse and leaves a path for this procedure to return to fertile territory for money laundering. We conclude that, despite the fact that undertaking of a fiscal and criminal amnesty should not be considered a taboo in itself, a successful fiscal and criminal amnesty should be based on an in-depth analysis of the market’s needs, it must avoid conflicts with the existing legal framework in Albania, and respect the constitutional principles and the concepts of guaranteeing the rule of law and the fight for the prevention of crime and forms of laundering the products of criminal activity. Keywords: tax & investigation amnesty, moral hazard, fiscal policy, fiscal discipline. How to cite: Meka, E., & Bozheku, E. (2023). The New Tax and Investigation (criminal) amnesty in Albania – some legal and economic considerations in comparison with the Italian case. Economicus, 22(1), 7–29.

https://doi.org/10.58944/bpnn7768
Tax Amnesty – The choice between fiscal discipline and economic development. The case of Albania
By, Xhemalie KAMANI, Dr. Elona SHEHU, Prof.Dr. Hysen MUCEKU

Abstract

Nowadays, the various problems in the economy are directly affecting the economic development of the countries considering tax abuse as a serious issue in the economy, in overall. The conflict arising in nowadays society seems to be between the demand to increase welfare and consequently the refusal to face tax obligations. Hence, a country’s economy cannot upgrade itself without the efficiency of fiscal policies. The scope of this article is to analyze the relationship between fiscal discipline and economic development in Albania. The objectives of this research are to review the literature on tax amnesty program and describe the factors related to tax amnesty, such as: implementations, costs and benefits, participation and the effects of the program and lessons learned from countries around the world to show the connection that exists between tax amnesty and economic development in Albania. For all possible standards in the country, it is very important that the state budget is reimbursed in a timely manner. Undoubtedly, the question that arises on behalf of this paper is whether the tax amnesty would serve as an aid for the reimbursement of the state budget. Keywords: economic development, taxes, avoiding paying taxes, tax amnesty, reimbursement, state budget, cost, benefits. How to cite: Meka, E., & Bozheku, E. (2023). The New Tax and Investigation (criminal) amnesty in Albania – some legal and economic considerations in comparison with the Italian case. Economicus, 22(1), 7–29.

https://doi.org/10.58944/jhqk2823
Quality of institutions, foreign direct investments and economic growth: empirical evidence from Balkan economies
By, Kevin TOPI, MSc, Prof. Asoc. Dr. Selami XHEPA

Abstract

This paper analyzes the relationship between institutions, foreign direct investment (FDI) and economic growth in the Western Balkans region. We use a difference-indifference method to evaluate the impact of institutions on attracting FDI and promoting economic growth and we find evidence, which support that quality of institutions is an important policy variable. The research shows that institutions play a key role in determining economic growth and attracting foreign investment. This highlights the importance of creating and maintaining inclusive institutions that promote the rule of law, control of corruption, and regulatory quality, which can lead to increased economic development and investment. Keywords: Institutions, Foreign Direct Investment, Economic Growth, Western Balkans, European Union. How to cite: Topi, K., & Xhepa, S. (2023). Quality of institutions, Foreign Direct Investments and economic growth: Empirical evidence from Balkan economies. Economicus, 22(1), 43–52.

https://doi.org/10.58944/suvu3944
A Literature Review on Entrepreneurial University policies: Definitions, Factors and Theories
By, Dr. Ketrina ÇABIRI MIJO,  Prof. Dr. Ermira QOSJA

Abstract

The entrepreneurial university model has gained popularity in recent years, as universities seek to increase their impact on the economy and society by promoting innovation and entrepreneurship. Many universities now see entrepreneurship as an important part of their mission and are working to create an entrepreneurial culture that encourages and supports innovation and commercialization of scientific research. This paper is based on the literature review methodology and highlights the essential points about the entrepreneurial university discourse, provides the formal and informal factors that make possible the transformation of a university into an entrepreneurial one, as well as the theoretical models of entrepreneurial approaches. Being new to the entrepreneurial concept, Albanian universities face a variety of challenges. The current status of universities into the modern society requires them to play a dual role in setting high teaching standards and students’ competence oriented learning and, on the other hand, play a boosting role in innovation and economic development of the country. This paper is of interest to Albanian universities that would like to establish and formalize entrepreneurial policies and overcome implementation obstacles. Keywords: entrepreneurial university; policies, university–industry collaboration, formal and informal factors, theoretical models. How to cite: Çabiri, K., & Qosja, E. (2023). A literature review on Entrepreneurial University policies: Definitions, factors and theories. Economicus, 22(1), 53–71.

https://doi.org/10.58944/lekf6449
“Fear” of the free exchange rate – The case of Albania
By, MSc. Krista KOZMAI

Abstract

The consumer society of nowdays would have struggled to exist in the last century; money, which today carries no intrinsic value (legal tender), used to hold value by being linked with precious metals. The exchange rates of each country’s currency were determined by the quantity of precious metals each country possessed in tis central bank’s coffers. After the collapse of the fixed-rate system, the determinants of exchange rates have been hard to find. Given that the continuous widening of the Albanian trade deficit, as well as the continuous strengthening of ALL against Euro, this study aims to investigate whether fundamental factors affect the ALL-EUR exchange rate, at all. In addition, this study examines whether this exchange rate has been influenced by the Bank of Albania’s interventions in the (domestic) foreign exchange market. The study is based on a quantitative analysis, with secondary data obtained from INSTAT and the Bank of Albania. The data are quarterly and have been collected for a period of 14 and a half years, from the first quarter of 2008 to the second quarter of 2022. The graphical analysis and regression results showed that fundamental factors significantly affect the ALL-EUR exchange rate and that the interventions by the Bank of Albania, in the foreign exchange market, have not had a statistically significant impact on the (domestic) exchange rate. Keywords: Money, exchange rate, fundamental factors, trade deficit, interventions in the foreign exchange market. How to cite: Kozmai, K. (2023). “fear” of the free exchange rate – the case of Albania. Economicus, 22(1), 72–94.

https://doi.org/10.58944/yzxz4050
Projects’ success and respective factors that produce it – The case of Higher Education Institutions in Albania
By, Jola OSMËNAJ, MSc

Abstract

Organizations and institutions are in a continuous change. What remains unchanged is their need for new and continuous participation in international and national projects, as an incentive to adapt to innovations and to develop cooperation. In order to realize all the set objectives and fulfil initial goals, it goes without saying that a project should be based on a framework of criterions, considered as crucial for a successful implementation and realization of projects. The paper addresses such framework, criteria and the related issues with a special focus on HEIs in Albania. Through the review of a rich literature, we have worked on the definition of a project, the development phases, as well as some projects undertaken by HEIs. The methodology used consists in utilizing the semi-structured interviews, and the survey analysis will be done in the QDA Miner Lite program, thus drawing final conclusions, thereon. The study shows that, generally HEIs in Albania have taken solid steps towards developing sustainable and successful projects, being aware of the necessary criteria that drive success and the monitoring of projects during all project stages. Keywords: Project management, project success, project failure, higher education institutions (HEI), mobility, capacity building. How to cite: Osmënaj, J. (2023). Projects’ success and respective factors that produce it – the case of higher education institutions in Albania. Economicus, 22(1), 95–114.

https://doi.org/10.58944/fjjy1989
The tourism of business and conferences – Opening a convention bureau (CVB) in Albania
By, Dr. Aurela BRAHOLLI, Msc. Enea KASHARIQI

Abstract

The tourism of business, conferences and exhibitions is classified as the oldest form of tourism in the history of humanity and an aspect of the tourism industry which has seen a significant increase in recent years. The main purpose of this article is to study the impact of opening a Convention Bureau, in terms of development of tourism of business and congress. To achieve this goal, a survey analysis was conducted, which involved 50 tourist organizations in 3 cities, Tirana, Durrës and Elbasan, with the key objective to highlight the importance of opening a Convention Bureau to develop tourism of business and congress, as well as how to study and obtain results on its impact regarding increasing the productivity of tourism sector services. Consequently, the improvement of communication, coordination of information, development of best marketing and PR practices, also increases the need for investment in more specialized human resources, who must know the functioning processes of the Convention Bureau structures, in function of the development of this tourism sector. At the end of this study it was concluded that opening of a Convention Bureau causes a greater development of the tourism of business and conferences, and this is confirmed by obtaining data on how this cooperation may produce successful outcomes in this regard. Keywords: Convention Bureau, business and congress tourism, information, promotion, tourism subject. How to cite: Braholli, A., & Kashariqi, E. (2023). The Tourism of Business and conferences – opening A convention bureau (CVB) in Albania. Economicus, 22(1), 115–124.

https://doi.org/10.58944/bypx2567
Digital Marketing In Albania And It’s Impact On Consumer Behavior
By, Dr. Aurela BRAHOLLI, Msc. Mikel QAFA, Dr. Irini GOGA, Prof.Dr. Kreshnik BELLO

Abstract

Purpose: In this research we focus on the role digital marketing (more…)

https://doi.org/10.58944/misk1763
Institutional tradition of the commune of Shkodra between the Slavic – Byzantine area and Western Adriatic (during the XIV Century)
By, Prof. Asoc. Dr. Çlirim DURO, Prof. Asoc. Dr. Ermal BAZE

Abstract

Purpose: The article identifies and analyzes the political (more…)

https://doi.org/10.58944/fpaq6387
Natural Monopolies In Albania: Problems And Regulation. The Case Of The Water Supply & Sewerage
By, DR. Denis VELIU, Iskra HAXHIHYSENI

Abstract

Purpose: This paper examines the problems of the water supply & sewerage (more…)

https://doi.org/10.58944/euaz5833
Network Characteristics Of Advertising Portals: Fostering Web Marketing Development In Albania
By, Dr. Denis VELIU, Dr. Roland SUBASHI, MSc. Erilda AHMETAJ

Abstract

Purpose: The main purpose of this study is to identify the peculiarities (more…)

https://doi.org/10.58944/zqte8735
The Impact of Technological Advancements on Society: Examining the Possibility of a Brave New World
By, Dr. Evelina LUSHA

Abstract

Purpose: This research paper aims to explore the impact of technology (more…)

https://doi.org/10.58944/iblr9210
Banking System on the Albanian Path to European Union Integration
By, Gregora LUFTA, Prof. Asoc. Dr. Elvin MEKA

Abstract

Purpose: This article aims to assess the contribution of the Albanian (more…)

https://doi.org/10.58944/lluj7488
Foreign trade and integration in the European Union – Ex-post evaluations of MSA effects
By, MSc. Julian STEPA, Prof. Asoc. Dr. Selami XHEPA

Abstract

Purpose: This paper addresses the importance of the “Free trade’ in case of Albania, (more…)

https://doi.org/10.58944/hjsm6634
Could fiscal amnesty reduce informality? The case of Albania
By, Dr. Teuta ÇERPJA, Prof. Dr. Anilda BOZDO, Klea YMERAJ

Abstract

Purpose: Fiscal amnesty is a policy tool that has been used in various (more…)

https://doi.org/10.58944/eins4397
Going Digital – A do-or-die choice for businesses! EDITORIAL
BY, Prof. Asoc. Dr. Elvin MEKA

EDITORIAL

The term “digital” is now ubiquitous and one of the most used and cited (more…)

https://doi.org/10.58944/yatj5055