Browsing by Author "Rexha, Donat"

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Empirical Analysis of the Impact of Education on Economic Growth
(AAB College, 2025-07-16) Ziberi, Besime; Rexha, Donat; Ibraimi, Xhemazie
Education is a crucial factor for sustainable economic growth. Therefore, public expenditures on education are of great interest to both researchers and policy makers. The channels through which education affects economic growth differ according to the level of development of the country. This study aims to measure the impact of public expenditure on education for economic growth in North Macedonia. The data used are secondary data derived from the World Bank Indicators for the period 1917–2020. The econometric model employed in this study is an Instrumental Variable Two-Stage Least Square. The dependent variable in the model is Gross Domestic Product and the independent variables in the model are public expenditures on education, labor force participation rate, gross capital formation, unemployment, industry, wages, employment, information, and communication technology, and the instrumented variable is tertiary enrolment. This study suggests that a one-point increase in public expenditures on education will positively affect economic growth in the North Macedonia. The study also shows that a one-point increase in unemployment will increase economic growth and a one-point decrease in employment will increase economic growth in North Macedonia. These two results, which contradict the theoretical and empirical approaches, prove the mismatch between the supply and demand of real occupations in the labor market in North Macedonia.
Empirical Approach of the Nexus between Public Expenditures and Economic Growth: Case of Republic of Kosovo
(AAB College, 2025-07-18) Rexha, Donat
The main objective of this paper is to investigate the impact of public expenditures on economic growth in the case of Republic of Kosovo, by addressing its significant nexus for the last decade and such results for further recommendation for future fiscal policies. Further, the paper analysis whether public expenditures have positive impact on economic growth in Republic of Kosovo, by investigating the impact of the types of public expenditures on growth. In addition, for determining the stationarity of the time series 2006m1 – 2016m9, Augmented Dickey Fuller test was employed, while VAR model was used to determine the long-run relationship between types of public expenditures and economic growth in Kosovo. The results of the empirical analysis reveal that the data are stationary in their level, while VAR results suggest positive and significant effects of transfers on real GDP, based on the positive coefficient and significance value p = 0.009, while negative and significant effects from municipal expenditures, based on the value of p = 0.066 in this model. Further, expenditures on wages, capital and subsidies have a positive but no significant effect on growth, while expenditures for goods have negative but no significant effect on economic growth in the case of the Republic of Kosovo. Finally, the paper can present a contribution on the existing literature regarding the nexus between public expenditures and economic growth, and for improvement of efficiency utilization of public expenditures in regarding their productivity.
IMPACT OF THE GOVERNMENT SIZE ON ECONOMIC GROWTH IN THE WESTERN BALKAN COUNTRIES
(AAB College, 2025-07-17) Bajrami, Roberta; Gashi, Adelina; Ukshini, Kosovare; Rexha, Donat
The Keynesian theory states that economic growth is positively affected by government spending, while Classical theory states that economic growth is negatively affected by government spending, as is stated by neoclassical public choice theorists (Nyasha & Odhiambo, 2019). Based on these theories, many authors have carried out research on the impact of economic freedom on economic growth by analyzing various empirical cases. Bergh and Karlsson (2010) with the findings from his paper confirmed that the countries with the highest government size have an elevated growth in the globalization index of KOF and the Fraser Institute’s economic freedom index. The main aim of this paper is to analyze the government size impact on the growth of the economy in the Western Balkan in the time period 2000–2017 according to Fraser Institute’s data, incorporating the following econometric models: fixed and random effects, pooled ordinary least squares (OLS), and Hausman-Taylor IV. With these models, this paper analyzes a government size and its components: government enterprises and investment, government consumption, transfers, and subsidies. The results illustrate a relationship between the size of the government and the growth of the economy in the Western Balkans that is positive. 1% increase in government size affects 0.29% gross domestic product (GDP) growth per capita. According to the Hausman-Taylor instrumental variable, 1% growth of government consumption is affected by 0.69% the decline in GDP per capita. The growth rate of transfers and subsidies affects 0.17% of GDP growth per capita and 1% of government enterprises and investment affects 0.54% GDP growth per capita.
INNOVATIONS AND ENTERPRISES PERFORMANCE IN TRANSITION COUNTRIES, WITH SPECIAL EMPHASIS ON KOSOVO: CDM MODEL APPROACH
(AAB College, 2025-07-15) Rexha, Donat; Ziberi, Besime
The main aim of this study is to analyze the impact of innovation and enterprise performance in the transition countries with special emphasis in the case of Kosovo. The innovations play a crucial impact on firm development, especially for small and medium-sized enterprises in countries in transition. This study uses primary data with a specific sample thus the enterprises that operate in Kosovo in order to analyze the relationship between innovations and firm performance. This study was conducted within a six-month period, specifically January 2022 – June 2022. The research sample consists of 400 Kosovar enterprises. These enterprises are from different economic sectors, such as production, services, and in terms of size, 80% of them are SMEs. The study used the CDM (Crépon, Duguet and Mairesse) model which includes the fourth phase. The first phase of this model is about the tendencies of enterprises to carry out innovative activities, the second phase is about the enterprises that invested in research and development, the third stage of the model, the conversion of inputs into outputs is analyzed. In the end, the impact of innovation outputs on the performance of the analyzed enterprises is investigated. The study concludes that enterprises that export to the EU and the Western Balkans region are significant, so this positively affects the tendencies of these enterprises for innovative activities, whereas enterprises that are oriented only to the local market, do not present significance and even have a negative relationship with the enterprises' tendencies for innovations. A large part of the enterprises think that innovations have high costs and are even unaffordable therefore this represents a big obstacle for the development of innovations. The lack of qualified personnel and the lack of knowledge about markets and technology represent a big obstacle to the development of innovations, and it even negatively affects the decisions of these enterprises about innovations.
Skills mismatch in the labor market: The future of work from the viewpoint of enterprises in case of Kosovo
(AAB College, 2025-07-16) Ziberi, Besime; Rexha, Donat; Ukshini, Kosovare
The transition path from education to employment is a key determinant of sustainable economic growth and development. A poorly trained workforce penalizes companies when they try to grow (Cojocaru, 2017, p. 25). It is generally accepted that university graduates as workforce are the key driver of economic growth and development. The main aim of this study is to identify the difficulties faced by enterprises in the Republic of Kosovo to provide the necessary profiles with adequate skills. Employers say students don’t have the ability to think critically, innovate, solve complex problems and work well in a team (Alsop, 2015) In order to analyze the problems that companies face during the selection process, the necessary training, and also the projections for new employments for the coming years, this study uses the primary data provided by the face-to-face questionnaire. The program used for data analysis in SPSS. We came to the conclusion that enterprises find it difficult to ensure the right skills they require, the university graduates lack practice experience and soft skills. The right person with the right skills in the right workplace is the driving force behind the well-functioning of the labor market. The study comes up with further recommendations for the well-functioning of the triangle higher education institutions, policymakers, and enterprises.
THE APPLICATION OF THE INTERNATIONAL AND DOMESTIC ARBITRATION LAW IN SETTLEMENT OF LEGAL DISPUTES: A COMPARATIVE STUDY
(AAB College, 2025-07-17) Lecaj, Mentor; Curri, Granit; Rexha, Donat
This paper aims to analyze the credibility and perception of business entities on arbitration with domestic and international elements, which operate particularly in the Republic of Kosovo and the Republic of North Macedonia, in resolving economic and civil disputes. The main advantages that arbitration has in resolving disputes are the speed of resolution and the lowest cost of expenses (Larson, 2018). In the article, comparative, interpretative, and analysis methods are used to reach the final goal of this paper. In this paper, it is found that business entities, which are registered in the Republic of Kosovo and in the Republic of North Macedonia, prefer arbitration as an alternative method of resolving disputes, but their experience regarding the domestic arbitration response is not at the gratification level. These findings are important to quote and avoid obstacles to the promotion of arbitration, and the perception, and credibility of business entities, which may be parties in legal economic, and civil legal disputes with a domestic or international element. From this data, we create a general puzzle on the probability of promotion and use of arbitration in the future in this region.
THE AUKUS INTERNATIONAL LEGAL AGREEMENT AND ITS IMPACT ON INTERNATIONAL INSTITUTIONS AND SECURITY
(AAB College, 2025-07-17) Lecaj, Mentor; Rexha, Donat
This paper focuses on the research of indicators in chronological order, which calls for the conclusion of the AUKUS international legal agreement signed between Australia, Great Britain, and the United States and its impact on international developments. In this article, descriptive, comparative, and analysis methods have been used to examine the scientific thoughts of different scholars, related to various scenarios of the issue being researched. Based on this research, we found out that Brexit, US withdrawal from Afghanistan, especially the AUKUS deal, consider being the dividing line between the old unipolar order and the new multipolar one (Vej, 2019; Wheatley, 2021). We have concluded that in the changing world order, US–European relations have fluctuated profoundly and their adjustment is almost impossible as they have been before. The article raises critical questions on the dynamics in the international system and their impact on security and international institutions. The scientific approach to the study topic is built by arguing the pros and cons of the opinions of various authors, who emphasize that the world order change and malfunction of international institutions are ongoing dynamics and irreversible (Mearsheimer, 2001).
The contribution of several Nobel Laureates in the development of the Theory of general economic equilibrium
(AAB College, 2025-07-18) Rexha, Donat
Nobel Laureates with their contributions to the development of the theory of general equilibrium have enabled this theory to be one of the most important for theoretical and practical analysis of the overall economy and the efficient use of economic resources. Results of the research showing that contributions of Nobel Laureates in the economy belong to two main frameworks of development of the general equilibrium theory: one was the mathematical model of general equilibrium developed by John R. Hicks (1939), Kenneth J.Arrow (1951) and Gerard Debreu (1954) and second frames of general equilibrium belongs to Paul A. Samuelson (1958). To highlight the contributions of these Nobel laureates in the development of the theory of general equilibrium have been selected and are presented in the paper some views, estimates and assumptions that have contributed not only in solving concrete problems, but also to the development of economic science in general. Their works represent a synthesis of theoretical and practical aspects of treatment of general equilibrium which are the starting point for further research in this field.
The Current Status and Challenges of the Human Resource Developments in Kosovo
(AAB College, 2025-07-16) Ismajli, Naim; Rexha, Donat; Qerimi, Fidan
The purpose of this article is to explore the status and challenges of human resources and development in Kosovo. Literature review suggested that government intervention, vocational and technical education, social network, and organizational structures are the key factors that influence human resources and development practices in the country. Beyond that the paper aims to compare the evaluation of performance in other sectors of well and then through comparison has a purpose to promote value-added production and skilled workforce in the organizations via developing various national labor enhancement policies, strategies and regulations and providing a set of training subsidies for employee in all sectors. Human resource development has become an essential component the development process. This is due to the fact that any development process is driven by the human factor. It is further urge, that policy formulation is a journey with challenges. The strength of the policy implementation lies in identifying such challenges, and finding ways of overcoming them. Lastly, the discussion reveals that human resource development is closely linked to other human resource factors that pertain at a given period, such as recruitment policies, labor market patterns, the age and experience of staff etc. Human resource development policies therefore must be reviewed from time to time to keep in step with the changing environment. It also highlights the key challenges faced, the lessons learnt and the way forward in enhancing sustainable human resource development in the country.
THE IMPACT OF ACTIVE LABOUR POLICIES ON ECONOMIC GROWTH
(AAB College, 2025-07-16) Rexha, Donat; Ziberi, Besime
This study aims to analyze the mechanisms of active labour market policy in the case of Kosovo and the impact on reducing the unemployment rate and increasing employment. This research is descriptive, analytic, and exploratory. The data used are secondary data in the quarter for the period 2016–2020, which are provided by the Kosovo Agency of Statistics. The study uses the OLS (ordinary least square) econometric model and Pearson correlation in order to assess the impact of unemployment and employment rate on Kosovo’s GDP (gross domestic product). The paper concludes that Kosovo has approved a large number of programs for the activation of the unemployed, mainly young people, but generally young university graduates are in a higher structure and rate in the composition of the unemployment rate. It is generally accepted that university graduates as workforce are the key driver of economic growth and development (Ziberi, Rexha, & Ukshini, 2021). This allows us to come up with further recommendations, such as the active policies in labour market in the case of Kosovo to be designed in the future based on a cost-benefit perspective and in order to measure their effectiveness.
THE IMPACT OF COVID-19 ON THE CONSUMERS’ BEHAVIOUR: THE CASE OF REPUBLIC OF KOSOVO ECONOMY
(AAB College, 2025-07-16) Ziberi, Besime; Rexha, Donat; Gashi, Rrezarta
The main aim of this paper is to analyze the impact of the COVID-19 pandemic on personal consumption expenditures (PCE) in the case of Kosovo. Labor factor has been considered as the holder of the economic activity, however, manpower, namely its broader term population is at the same time the user of the product and the services, i.e., the result of the economic activity (Škuflić & Šokčević, 2010) Taking into consideration that COVID-19 is harming the labor market and in economic activity in general, we also consider that this situation is affecting the personal consumption expenditures in case of Kosovo, domestic demand, supported by low-interest rates and strong employment growth, will remain the main driver of growth (OECD, 2018). To analyze the importance of personal consumption expenditure in the case of Kosovo during the COVID-19 pandemic we used secondary data from World Bank documents and primary data collected via an online questionnaire that was randomly distributed using social media with a sample of 233 respondents. The data analysis concludes descriptive statistics, frequency tables and charts, Pearson correlation, Cronbach’s alpha, and Chi-square test. To conduct the results, the SPSS program is used. The study concludes that the COVID-19 pandemic has impacted personal consumption expenditures and shifted the consumption from luxury to essential products. The study also concludes that citizens will realize the pre-planned expenditures as soon as the anti-COVID-19 measures will be released.
THE IMPORTANCE OF INTERNAL AUDIT IN INCREASING PERFORMANCE OF MICROFINANCE INSTITUTIONS: THE CASE OF THE DEVELOPING COUNTRY
(AAB College, 2025-07-18) Rexha, Donat; Hashani, Medain
The study aims to explore the role and importance of internal audit in increasing performance in microfinance institutions in Kosovo. The operation of microfinance institutions in Kosovo is a necessity to meet the demands of the people, households, and small businesses, who do not have access to financial banking services (Kupina, 2018). The presence of an internal audit body in the organization is a need and necessity for good governance and performance of the organization. This study was conducted in five microfinance institutions in Kosovo. The study is based on data collected from the field through a questionnaire (N = 80) conducted face to face with respondents, with both genders represented in microfinance institutions in Kosovo. The data collected from the field were systematized and analyzed in the SPSS program. Of the total number of respondents, 64% were male and 36% were female. Most of the respondents were economists (88%), lawyers (4%), IT (6%), and other professions (2%). The results of the study (96.3%) show that an internal audit is necessary for the organization. Also, from the findings of the study, we learned that (66.3%) internal audit positively affects good governance and performance of the organization.
THE NEXUS BETWEEN FINANCIAL TRANSPARENCY AND THE FINANCIAL OBSTACLE LEVEL OF THE ENTERPRISES IN THE WESTERN BALKAN REGION
(AAB College, 2025-07-18) Iballi, Nazmi; Rexha, Donat
Access to finance plays a crucial role in the growth of small and medium enterprises (SMEs), thus affecting the development of the emerging countries. SMEs, which record their transactions under international accounting standards and use external auditors, finance their growth and working capital through formal external sources (Nizaeva & Coskun, 2018). In addition, the decision-making process of crediting depends particularly on the SMEs’ financial reporting, thus it requires complete transparency of their financial reports. Taking into consideration the important role that financial transparency plays in the access to finance as well as its impact on the SMEs’ growth, the main aim of this paper is to analyze the impact of the financial transparency on the financing obstacles of the SMEs operating in the Western Balkan countries, through the usage of the survey data collected from the 6th Business Environment and Enterprise Survey (BEEPS VI), enabled by European Bank for Research and Development (EBRD) and the World Bank, related to the survey time period 2018–2020. In this regard, probit and ordinary least squares (OLS) techniques have been employed, where the results reveal that financial transparency has a significant negative effect on the financing obstacles of the enterprises of the Western Balkan region. Besides financial transparency, firm-specific factors such as age and size have been included in the model and the findings show that crucial determinants of the financing obstacles these companies have in this region.
The Role of Management in Development of Human Resources in Kosovo
(AAB College, 2025-07-16) Qerimi, Fidan; Visoka Hasani, Vjollca; Rexha, Donat
In this paper we will discuss the role of management in development of Human resources in Kosovo. Which are the problems that are faced by management, which are resources that need management, how are the human resources treated and how it should be treated. How management affects the development of Human Resources, while in the second part of this paper will collect primary data about the current situation in Kosovo respectively in the company which will be used as a sample. We will analyze the data and come to conclusions, which will bring the recommendations, which should undertake the management of Human Resources in the future.
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.