Browsing by Author "Dalloshi, Pranvera"

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Analyzing business environment- Power outages as an obstacle for firms
(AAB College, 2025-07-16) Dalloshi, Pranvera; Misini, Shkumbin; Hoti, Arta
An efficient firm infrastructure is considered as one of the key factors of the firm performance considering its impact on time and cost savings. The positive impact of the quality of infrastructure on firm performance is very cognitive, but the lack of adequate infrastructure remains an important obstacle especially on transition economies. Thus, primary objective of this paper is to provide information regarding the power outages as an obstacle to firm’s performance. This paper focuses on the cross-country comparison with the intention to show the progress done by governments in improving this obstacle to the private sector using survey data provided by World Bank in partnership with EBRD. This is the Business Environment and Enterprise Performance Survey (BEEPS) database which offers a wide range of topics of business environment. The results show that Kosovo leads regarding the average hours without electricity, number of power outages in a typical month and the percentage of sales loses due to electricity insufficiency. The panel data techniques, respectively the fixed effect model, show a negative and significant impact of the average number of power outages on the sales growth.
Bridging Awareness and Action: Understanding Consumer Profile for a Circular Economy in Kosovo
(AAB College, 2025-07-16) Dalloshi, Pranvera
The transition towards a circular economy (CE) is essential even for emerging countries. Kosovo, as an emerging country, has demonstrated its commitment in this way. However, significant gaps remain in raising consumer awareness and building the infrastructure needed to support sustainable practices fully. This study investigates the impact of consumers on the adoption of circular economy (CE) practices in Kosovo. Through a structured survey of 387 respondents, we examine how key variables such as CE awareness, behavior, perceptions of government actions needed, and socio-economic factors, influence consumers’ willingness to change purchasing habits for a more sustainable economy. Results show that while higher awareness positively correlates with CE adoption, it is not a standalone predictor of behaviour change. Significant predictors include government actions, infrastructure support and prior sustainable behaviours. Demographic factors, such as income and education levels, also impact willingness to adopt sustainable practices, with lower-income groups facing financial barriers that hinder eco-friendly purchasing decisions. The findings underscore the awareness behaviour gap, emphasising that awareness must reach a critical level, supported by incentives and adequate infrastructure, to drive meaningful change. Recommendations highlight the need for targeted policies, such as infrastructure development, subsidies, and public awareness campaigns, to foster an inclusive and accessible circular economy transition in Kosovo.
Digital Readiness in Emerging Markets: The Role of Digital Skills and Connectivity in Driving Digital Economy
(AAB College, 2025-07-16) Dalloshi, Pranvera
This study examines the impact of digital skills and internet access on the participation of citizens in the Republic of Kosovo in the digital economy. Data were collected using structured questionnaires from 326 respondents across various regions of Kosovo. Given the data structure, the study employed logistic regression analysis to investigate the relationship between digital skills, internet access and engagement in digital economic activities. The results indicate a significant positive relationship between internet access and digital skills with engagement in the digital economy. Specifically, individuals with higher digital skills and better internet access demonstrate higher levels of participation in digital economic activities. Furthermore, the study identifies demographic factors such as age and profession that significantly influence digital engagement, highlighting the need for targeted policy interventions to close the digital gap. These findings suggest that improving digital infrastructure and developing skills, especially to elders and rural living are crucial for enhancing engagement in digital economic activities. These insights provide a valuable overview of the current situation and reveal that even in emerging countries, access to the internet might be high. Moreover, can serve as guidance for policymakers aiming to foster a robust digital economy in Kosovo.
Digital skills as an impetus for the acceleration of economic digitalization: EU perspective
(AAB College, 2025-07-16) Dalloshi, Pranvera
Digitalization, which gained momentum peculiarly after the invention of the Internet, has had a profound impact on the shape of the economy. It has changed the way of doing business and the labor market structure (Peetz, 2019). This change has brought the rise of automatized business processes and public services which aim to eliminate human manual work but at the same time cannot be realized without humans as a main component of information and communication technology (ICT). In order to fully leverage the positive effects of human capital in digitization, individuals must possess essential digital skills. This paper highlights the importance of citizens‘ ICT skills for the acceleration of the digital economy, therefore the empirical analysis conducted examines the impact of different levels of digital skills on the digitalization of the economy. Additionally, the paper investigates whether the way individuals acquire digital skills differs between highly digitalized European Union (EU) economies and other parts of the Union. In this paper, secondary data sourced from Eurostat was used. To address the research questions, the pooled ordinary least squares (OLS) and least-square dummy variable (LSDV) models were utilized as well as the t-test. The findings of the study reveal a positive impact of digital skills on the digitalization of the economy. Furthermore, significant differences in the ways citizens acquire digital skills in most digitalized economies of the EU are uncovered.
Does Performance Audit Recognise Improvements in Procurement Activities Leading to Enhanced Value for Money?
(AAB College, 2025-07-16) Dalloshi, Pranvera
Purpose: This paper analyses the impact that performance audit has on improving procurement activities which lead to enhanced value for money. Therefore, the goal was to establish whether or not procurement-focused performance audits generally had an impact on undertaking positive actions/changes within the audited institutions in Kosovo. Methodology: OLM model is used to test the hypothesis raised that what kind of impact did performance audits have on changes undertaken within the entity that would enhance the value for money in the procurement process. The data was obtained through a questionnaire administered with 86 officials within institutions which were subject to performance audits carried out by the KNAO. Findings: We have managed to illustrate which were the changes undertaken by the audited entities after the audit and also determine that auditees’ perceptions are generally positive concerning the role of the Kosovo National Audit Office (KNAO) as a factor in improving performance and undertaking changes within entities. As well, the model results shows a positive and significant relationship between performance audit and changes undertaken by auditee institutions, confirming once again the positive role of the Kosovo NAO. Originality/Value: The main contribution of our research is to draw attention to the impact of performance audit in countries with high levels of corruption and irregularities, such as Kosovo. In addition, this research reveals audit entities key persons’ perceptions, on the factors that influence
Empirical assessment of the impact of banking sector development on firm external financing, using the MELR model
(AAB College, 2025-07-16) Dalloshi, Pranvera
By combining microeconomic and macroeconomic factors, this paper aims to present a new approach of assessing the impact of the banking sector development on the financing of businesses with loans in some SEE countries. The firm’s probability to have a loan with a commercial bank is assessed taking into consideration it’s characteristics as well as banking sector development indicators, thus considering the supply and demand side, this because according to some studies, the banking sector is not always willing to provide loans to all types of businesses or even certain sectors. In order to reach reasonable conclusions we utilized The Mixed effect logistic regression (MELR), which is appropriate for hierarchically structured data. Econometric results show a positive relationship between banking sector development and the financing of businesses with loans, this tested in several models.
FINANCIAL DEVELOPMENT MEASUREMENT: COMPARISON OF THE HIGH- AND LOW-INCOME COUNTRIES
(AAB College, 2025-07-16) Dalloshi, Pranvera
The literature that treats financial sector development and its impact on various economic phenomena does not recognise a single indicator of financial development measurement, nor do the various regulators of the financial sector have a single indicator to measure its development. Divergencies in financial development proxies used have prompted the International Monetary Fund (IMF) staff to create an indicator that includes all aspects of financial sector development (Čihák, Demirgüç-Kunt, Feyen, & Levine, 2012). The purpose of this paper is to show the main indicators of the financial development measurement and the gap between high- and low-income countries’ financial systems using the financial development index (FD index) developed by the IMF. This paper introduces the financial development indicator and uses it to compare different income group countries. The results show differences in the levels of financial development across countries. We also notice an improvement of the overall financial system in all of the groups of countries, showing an increasing trend in the last 10 years compared to the previous 10 years, but the desperate fact is that low-income countries have a long way to go to reach the level of financial development of high-income countries.
The Effect of Digitalization on the Quality of Service and Customer Loyalty
(AAB College, 2025-07-16) Shabani, Lulzim; Behluli, Arbëresha; Qerimi, Fidan; Pula. Fellanze; Dalloshi, Pranvera
This research aims to measure the effect of digitalization on service quality through the SERVQUAL model (tangibility, reliability, responsiveness, assurance, and empathy) and customer loyalty. Also, we analyze the relationship between customer loyalty and their demographics. A quantitative method was used to achieve the objectives through a structured questionnaire, where part of the research sample was 400 clients of Kosovo banks. Results show that digitalization positively affects service quality and customer loyalty based on the OLS model. According to the T-test, there was no significant difference in customer loyalty between the genders. There has been a significant difference in loyalty between clients’ ages following the one-way ANOVA test. According to the Kruskal Wallis test, it also resulted in a significant difference between levels of education. This study will provide banks with feedback on the importance of digitalization and its correlation with their customers’ quality of service and loyalty. In this form, they decide to make even greater investments in digitalization by satisfying customer demands and creating loyal customers.
The Nexus between Bank Sources and Firms Capital Expenditures in SEE Countries
(AAB College, 2025-07-16) Dalloshi, Pranvera
Considering that financial sources and investment opportunities are the starting point of the business decision to invest, this research focuses on answering whether a country's financial system contributes to the growth of firm investment, with regard to the endogenous economic growth theory based on which the financial system affects economic growth through capital accumulation. To test the impact of external funds on the value of capital expenditures, the linear regression model is used, and the results support the hypothesis that bank loans have a positive impact on the value of new fixed assets. For robustness check, the logistic regression is utilized. In this model the dependent variable is dichotomous, considering the fact if the business in the respective year had purchased fixed assets or not, while as an explanatory variable, among others, are bank loans representing the fact if the business in the same period had a credit or not with any commercial bank. The results show a positive and significant connection between the bank loans and the newly purchased fixed assets. These findings imply that firm investments in SEE countries are not financially constrained from banks.
The Transformative Impact of EU Product Requirements on Costs and Revenues in the Manufacturing Sector in a Developing Economy
(AAB College, 2025-07-16) Dalloshi, Pranvera; Borovci, Mentor; Rexha, Donat
As international trade continues to expand, non-tariff barriers (NTBs): such as technical regulations, standards, and conformity assessments are gaining prominence. These measures, often referred to as technical barriers to trade (TBTs), pose significant challenges for businesses, particularly those in less developed countries aiming to access markets like the European Union (EU). While these requirements aim to ensure the safety and quality of products for EU customers, they often present substantial challenges for firms from countries like Kosovo. This study explores the potential escalation in costs as well as the economies of scale stemming from enhanced EU product requirements compliance. Based on a comprehensive survey of Kosovar manufacturing firms and logistic regression analysis, the findings indicate that operational adjustments required for compliance with EU product standards significantly increase the likelihood of firms experiencing difficulties in this process. Additionally, the study reveals the potential for achieving economies of scale, highlighting both the challenges and potential opportunities this process entails. Understanding this duality is essential for businesses navigating the complexities of exporting to the EU, ultimately fostering informed decision-making and strategic actions. To the best of our knowledge, this is the first study that makes a substantial contribution to the field, by providing empirical analysis of the financial implications of EU product compliance for manufacturing businesses in Kosovo. Kosovo’s economy is import-dependent, and its manufacturing exports are limited and often concentrated in low-complexity products, while manufacturing sector is dominated by Small and Medium-Sized Enterprises (SMEs), faces limited institutional support for compliance infrastructure and constrained access to international markets.
Transfer Pricing: Is the Comparable Uncontrolled Price Method the Best Method in all Cases?
(AAB College, 2025-07-16) Dalloshi, Pranvera
The transfer price scope is becoming a very important issue for all companies that comprise from different departments or have a network of branches. These companies are obliged to present the way of price determination for transactions that they have with their branches or other relevant members of their network. The establishment of the multinational companies that develop their activities in various countries is being increased. It has increased the need to supervise their transactions and approval of laws and administrative orders that do not leave space for misuses. The paper is focused in the response to the question if the Comparable Uncontrolled Price Method is the best method to be used in all cases. It is presented through a concrete example that shows how the price of a product determined through the Comparable Uncontrolled Price Method or market price has an impact to the profit of the mother company and other subsidiaries.