Merita Zulfiu Alili - Academia.edu (original) (raw)

Papers by Merita Zulfiu Alili

Eastern European Economics

Albania and North Macedonia, as many countries in South-Eastern Europe, struggle with youth unemp... more Albania and North Macedonia, as many countries in South-Eastern Europe, struggle with youth unemployment which is persistent, acute and unresponsive to the education of young people in both countries. High school graduates often decide to continue university education for better job perspectives and advancement. High education is often perceived as a guarantee for employment. But statistics show that youth employment faces many challenges and has higher rates compared to other categories of the population. Therefore it is the aim of this study to address a general panorama of the graduated youth employment and unemployment through two case studies: Luigj Gurakuqi (LG) the University of Shkodra in Albania and South-East European (SEE) University in North Macedonia. A framework of comparative analysis with focus investigation of the employability of youth in Albania and North Macedonia is presented. Special attention is given to the economics cohorts of students graduated in the last ...

The level of educational attainment and skills of young people have a strong influence on economi... more The level of educational attainment and skills of young people have a strong influence on economic activity and consequently on their employment rates. Grade point averages (GPA) of undergraduate studies keep on being a relevant selection tool in the employment process. GPA metric is believed to be an index of mental ability related later to job performance and successful outcomes. Youth employment in Albania and North Macedonia is low and unresponsive to the education of young people. This study offers an overview of youth unemployment rates in the Western Balkan countries. It uses survey analyses of tertiary graduates of economics programs at Luigj Gurakuqi University in Albania and South-East European University in North Macedonia. A comparative analysis focusing on the determinants of the employability of economics graduates in the last decade is realized using qualitative and quantitative analyses for each university. Logistic regression results indicate that the GPA of the bac...

CIRIEC Studies Series, 2021

Private sector leads the production and distribution process in many countries. However, Public O... more Private sector leads the production and distribution process in many countries. However, Public Owned Enterprises (POEs) are also an important element of many developing and developed economies in this context. This analysis examines the main legal organisation forms of public owned enterprises and their financial performance. It also briefly analyses the national legislation and regulation on corruption prevention mechanisms and policy measures and anticorruption practices in public owned enterprises. Almost half of public owned enterprises in North Macedonia are working with losses and have the highest maturity and unpaid liabilities in the last five years. Public owned enterprises can either contribute or obstruct the competitiveness of the economy depending on their efficiency and productivity. This sector needs to be transparent to provide competing enterprises with a fair overview of the fundamental market conditions.

Migration Letters, 2022

Using unique survey data collected from respondents attending university in North Macedonia (N=42... more Using unique survey data collected from respondents attending university in North Macedonia (N=423), this paper investigates students’ decisions on intended emigration. The study is set within the regional context of high youth migration from the Western Balkans and involves comparisons with an earlier, similar study on Albania. Results for North Macedonia indicate that those more likely to leave the country are undergraduate (as opposed to postgraduate) students, those who are not planning to continue further studies and students with a family history of migration. The concluding discussion makes policy recommendations for reforming the labour market to dissuade young graduates from leaving and attract the return of those already abroad.

South East European Journal of Economics and Business, 2021

This paper investigates how typical macroeconomic indicators affect the economic growth of Wester... more This paper investigates how typical macroeconomic indicators affect the economic growth of Western Balkans countries. A static panel empirical investigation for the period 2010 to 2019 has been conducted using GDP growth rate as the dependent variable, while independent variables in focus include foreign direct investments, remittances, unemployment rate, population growth rate, and control of corruption. The most interesting finding is that a rising share of remittances positively affects economic growth. This might indicate that even when remittances are used for non-investment purposes, they might increase domestic production of consumption and intermediate goods. There is also evidence of a non-linear relationship between FDI and economic growth, which may be a consequence of undeveloped capacities to use the positive side of FDI. To foster economic growth policy-makers should focus on reforms that target sectors that show sharp declines in FDI and remittances inflows, including...

Using a panel dataset of bilateral flows of foreign direct investment (FDI), we study the determi... more Using a panel dataset of bilateral flows of foreign direct investment (FDI), we study the determinants of FDI in transition economies, with particular reference to Macedonia?s performance. As many transition countries, Macedonia has a low FDI potential and performance. The empirical work confirms the expectation of the positive feedback effect of past FDI onto current FDI. We do not have

Procedia Economics and Finance, 2015

It has been argued that the effects of inward FDI on skill upgrading and wage inequality depend o... more It has been argued that the effects of inward FDI on skill upgrading and wage inequality depend on the outcome of specialisation according to comparative advantages. However, predicting the overall impact of FDI on wage inequality is complex depending on country specific effects, namely how large are differences in skilled and unskilled wages and the skill intensity of employment in foreign-owned firms compared to domestic ones, as well as the relative size of employment in domestic and foreign-owned firms (Zulfiu-Alili, 2014). Hence, the effect of foreign ownership on relative wages and skill intensity will vary between sectors, across countries and over time. The effect of FDI on the skill intensity of employment in transition economies is analysed using the Business Environment and Enterprise Performance Survey (BEEPS) undertaken in three waves 2002, 2005 and 2009. The question to be addressed is whether foreign-owned firms employ a more educated and skilled workforce in comparison to domestic-owned firms. Results suggest that foreign-owned firms have a better educated labour force but have a lower share of skilled and unskilled employees compared to domestic firms.

Eastern European Economics, 2014

Abstract: That foreign direct investment is an engine of growth in developing countries is a domi... more Abstract: That foreign direct investment is an engine of growth in developing countries is a dominant view in the literature (De Mello 1997). However, the impact of FDI on inequality not only remains controversial, but has not received the same attention, particularly from scholars of transition economies (Vijaya and Kaltani 2007; Zulfiu-Alili 2014). Foreign-owned firms are increasingly important employers of labor in transition economies and pay higher wages than their domestic counterparts, all else being constant. Even though Macedonia has introduced extensive fiscal and business-sector reforms, it has lagged behind in attracting foreign investment, with thus far only a limited impact on employment. Using data from the People-Centred Analyses (PCA) survey for 2008, this article examines the question of whether foreign-owned firms pay higher wages than domestically owned firms in Macedonia, and whether this effect is associated with workers’ characteristics such as education, age, and gender distribution, ethnicity, region, type of contract, and occupation. This relationship is examined first by estimating an earnings equation and by decomposing overall wage inequality into inequality within groups and between groups, where the groups are defined by type of ownership, type of contract, level of education, occupation, age, gender, ethnicity, and region. The empirical results suggest that foreign-owned firms pay higher wages than their domestic counterparts, all else being equal. In addition, a decomposition analysis indicates that wage inequality is higher within foreign-owned firms than in domestically owned firms.

Academicus International Scientific Journal, 2014

Transition countries have, in general, experienced an increase in labour market inequality during... more Transition countries have, in general, experienced an increase in labour market inequality during and after the initial transition period. Theory and empirical studies analysing the causes and mechanisms of increasing inequality in transition economies identify globalisation, skilled-biased technological change, differences in access to schooling, the pattern and level of unemployment and institutions as important factors. Foreign direct investment (FDI) has increased significantly in transition economies during the transition period and has been considered to be an important channel for the diffusion of new technology, managerial skills and new knowledge. As a result of technological and management expertise FDI may raise the level of wages in the host economies, improve working conditions and increase employment, though little previous research has focused on these effects in transition economies. Using the GINI coefficient as the measure of wage inequality a simulation analysis i...

Review of Development Economics, 2021

An initial assessment of the impact of COVID-19 on the North Macedonian labour market is widely a... more An initial assessment of the impact of COVID-19 on the North Macedonian labour market is widely anticipated that will be severe, pushing thousands of people into unemployment, underemployment and working poverty. This paper aims to assess the impact of the COVID19 outbreak on labour market by analysing the most affected sectors and government measured aimed to prevent job losses. Many small and medium businesses have already closed their operations or decreased the number of employees. The most affected industries due to the outbreak of the COVID-19 are the tourism industry and export-oriented industries, including the textile sector. To mitigate the consequences of COVID-19 the Government of North Macedonia has adopted measures for support of the firms which aim to keep jobs, maintain social stability, and help the citizens affected by the crisis. Specific local labour market characteristics should be considered when specifying eligibility criteria and undertaking crisis response m...

SEEU Review

Education (good teachers and good schools) is crucial for the successful integration of vulnerabl... more Education (good teachers and good schools) is crucial for the successful integration of vulnerable groups in the society. Multicultural diversity presents an opportunity to make schools more inclusive, creative and open-minded. Although there are different projects and activities for Roma inclusion in schools, the number of Roma children attending formal education is still very low. Without having attended formal education, the chances for social exclusion are high and minimal for leading a self-defined life. To increase the rate of school registration and the rate for completion, long-term policy interventions and financial support from international donations are needed. This paper aims to analyze the general situation of Roma children and youth the age of pre-school education, primary and secondary education, as well as the engagement of youth in volunteering activities as a significant role in the inclusion of Roma children in schools. Engagement in volunteering activities can h...

European Journal of Sustainable Development

Transition economies compete for FDI since it is expected to have net benefits for the host econo... more Transition economies compete for FDI since it is expected to have net benefits for the host economy in terms of employment by creating jobs, paying higher wages, offering more training compared to the local firms, as well as benefits for the balance of payments, technology, growth and the alleviation of poverty. This paper examines if foreign-owned firms are more likely to provide formal training to their employees after controlling for other firm characteristics. This empirical analysis uses firm level data from the Business Environment and Enterprise Performance Survey (BEEPS) 2002-2009. To investigate the impact of foreign ownership on the provision of training this paper is using the Probit, Tobit and Craggit models. The empirical evidence presented in this paper indicates that foreign ownership has a positive and significant impact upon the incidence and intensity of training for both non-production and production workers using pooled cross-section data.

Migration Letters

Return migration may be associated with the addition of new human capital, entrepreneurial skills... more Return migration may be associated with the addition of new human capital, entrepreneurial skills and investment funds in the country of origin. The size of these stimuli will likely depend upon the characteristics of the return migrants and the motivation for their return. This paper presents an analysis of the determinants of the probability of Albanian return migrants being in employment. This study examines the role of the socio-demographic characteristics of returning migrants; their experience while abroad and the motivations for their return. The results suggest that being male, holding a university degree, being unemployed before returning and receiving training while abroad increase the probability of finding a job after return. The higher probability of returnees being in employment or self-employment indicates that the overall benefits to the economy of return migrants may be much larger than previously thought. Facilitating or accelerating the social integration and empl...

International Journal of Social Economics

Purpose The last two decades have been characterised by a rise in income and wage inequality in a... more Purpose The last two decades have been characterised by a rise in income and wage inequality in a wide range of countries, including European transition countries. The rise in globalisation is one major factor explaining this increasing wage inequality. International trade and FDI have increased significantly since the beginning of transition and the purpose of this paper is to focus on whether FDI plays an important role in explaining the pattern of wage inequality in selected transition countries. Design/methodology/approach A cross-country empirical investigation has been conducted using two alternative measures of wage inequality: the Gini coefficient and the Theil index. Several model specifications and estimation strategies have been employed to obtain consistent estimates and to check for the robustness of the results. Findings The results indicate that a rising share of inward FDI in gross domestic product (GDP) increased wage inequality in transition economies, though its o...

Return migration has many benefits for countries of origin. Working abroad allows migrants to in... more Return migration has many benefits for countries of origin. Working abroad allows migrants to increase their income, accumulate savings and acquire new skills. When return migrants invest in business projects and transfer human capital gained abroad benefits materialize in the home country. However, the home country needs to have the right policies to encourage investments, transfer of skills and labour market reintegration by providing information on investment opportunities and establishing a favourable macroeconomic environment for investment.