Besnik A Krasniqi | Universiteti I Prishtines (original) (raw)
Papers by Besnik A Krasniqi
Stock exchanges are constantly prone to instability caused by asset bubbles. Risk level within th... more Stock exchanges are constantly prone to instability caused by asset bubbles. Risk level within the stock exchanges stands as the main concern for the financial investors. Stock prices are influenced by the choices completed on the domestic and international environment. The study intends to measure the risk level of the Prague Stock Exchange (PSE) from the internal risk perspectives. Portfolio diversification formula has been implemented to obtain the risk level of the PSE from 2000 till 2017. Stock prices and the trade volume of the listed companies in the PSE were collected from the Thomson Reuters Eikon database. PSE has been considered as a portfolio based on the number of listed companies on the respective years. The results confirm that financial investors in the PSE would be compensated for the risk exposure. Diversification risk and weighted average returns from 2000 till 2017 were almost moving identically. The results indicate that PSE was influenced from the last financia...
The aim of this study is to critically review the existing initiatives of start-up support servic... more The aim of this study is to critically review the existing initiatives of start-up support services for entrepreneurship growth in Kosovo. In the light of an increasing government and donor activities to support start-ups in Kosovo, there is a need for evaluation of these policy interventions to guide future entrepreneurship policy. Building on the political economy of small firm intervention literature and using mapping method the study identifies and critically evaluates the technical, financial and other support services to start-ups. The study uses secondary resources to explore the initiatives and understand the entrepreneurship growth ecosystem. The findings suggest that although there is an increased trend of business support services the entrepreneurship ecosystem has not gone beyond the traditional policy measures and in many areas remains in its infancy phase of development. Challenges remain in the area of provision of alternative forms of financing, incubation space and ...
Ekonomska Misao i Praksa, 2017
The paper aims to analyse the feasibility of the vegetable crop production in Kosovo by developin... more The paper aims to analyse the feasibility of the vegetable crop production in Kosovo by developing a model used to measure the impact of agricultural intervention programs. For this purpose, we have used combination of direct costing (DC) and activity based costing (ABC) to assess the production costs EKON. MISAO I PRAKSA DBK. GOD XXVI. (2017.) BR. 2. (561-592) S. Lajqi et al.: IMPACT OF AGRICULTURAL... 562 schemes comparing the two crop modalities extended in the two different regions using different cultivars and different production technologies. This study uses a DC and ABC approach in calculating costs in the pepper and tomatoes’ production sectors and in the related agro-processing industries based on five case studies. The results derived from the adopted DC and ABC model in the vegetable sector provide more details and precise cost information that assist various managerial decisions, but are primarily used here to evaluate the impact of agricultural programmes on employment...
Purpose This study aims to compare the diversification risk of the crypto portfolio with those of... more Purpose This study aims to compare the diversification risk of the crypto portfolio with those of equity portfolios. For this purpose, the hypothetical index was constructed with 20 cryptocurrencies that hold the highest market capitalization in the Coin Market Cap database, named as the Crypto-Index 20. Design/methodology/approach The portfolio diversification techniques were used to identify risk linked with the six largest European equity indexes and compared with the Crypto-Index 20. Indexes were considered as an independent portfolio while analysis was completed separately for each of them. Data concerning stock prices and their trade volume were collected from the Thomson Reuters Eikon database while crypto prices and their trade volume from the Coin Market Cap database. The diversification risk of the stock indexes was measured separately for each portfolio with the same risk techniques and the same methodological process. Findings Research results indicate that Crypto-Index ...
This paper examines perceived Critical Success Factors (CSFs) affecting the success of small firm... more This paper examines perceived Critical Success Factors (CSFs) affecting the success of small firms and their relationship with firm and managerial characteristics. The paper also seeks to investigate the interdependence relationship among the perceived CSFs themselves using data reduction techniques. The study tests the number of CSFs on small firm success using primary data that were collected through a questionnaire survey with 256 business start-ups randomly selected from business register kept at Kosovo Business Registration Agency. Principal component analysis (PCA) with Equamax rotation was used to reduce the data and categorize success factors into groups. The findings identified four groups of perceived CSFs affecting the success of business start-ups: (1) Characteristics of individual, social connections and reputation, (2) Management skills, social support and quality of product, (3) Market support, and (4) political involvement. Findings show that factors that are under c...
South East European Journal of Economics and Business
The purpose of this paper is to investigate the impact of different forms of innovation on firm g... more The purpose of this paper is to investigate the impact of different forms of innovation on firm growth, in terms of sales. A total of 278 samples were collected from SMEs in the manufacturing, service and trade industries throughout Kosovo. The data were analysed using a logistic regression analysis. The findings confirm the hypotheses that marketing innovation is positively associated with firm growth, while new to the firm products is negatively associated with firm growth. Other innovation attributes have resulted with non-significance value. The findings in this study can be useful for theoretical discussion, as well as for policy formulation related to introduction of innovation and SMEs development considering that innovation is critical factor in today’s market and competition. Further studies should look into how SMEs could investigate over time from the initial stage to the full development of innovation.
Purpose This paper aims to reveal the effects of birth order in decision-making style, conflict h... more Purpose This paper aims to reveal the effects of birth order in decision-making style, conflict handling style and propensity for participative decision-making. The intention is to open the perspective of birth order research in organizational studies, as an important individual difference of managers. Design/methodology/approach A survey was conducted with 230 managers from different industries in Kosovo. Self-report measures were used for decision-making style, conflict handling style and participatory decision-making constructs. Findings Results indicate that only children are more avoidant and spontaneous decision-makers. Firstborns are rational in decision-making and prefer problem-solving in conflict handling. Middleborns are intuitive decision-makers and use compromising in conflict handling. Lastborns make decisions rationally and use both compromising and problem-solving in conflicting situations. In addition, lastborns appeared to have a more positive attitude toward participative decision-making, followed by middleborns, firstborns and only children. Research limitations/implications Birth order affects managers’ behaviors in decision-making and conflict situations. Relationship dynamics in sibships are reflected in organizational settings, affecting how people behave in decision-making and conflict handling. Originality/value To the best of the authors’ knowledge, this is the first study to attest how birth order influences the ways managers make decisions, handle conflicts and involve others in decision-making. As birth order cannot be changed, such knowledge is critical.
Comparative Economic Research. Central and Eastern Europe
Portfolio optimization is the main concern for portfolio managers. Financial securities are place... more Portfolio optimization is the main concern for portfolio managers. Financial securities are placed within the portfolio based on the investor’s risk tolerance. The study measures the risk-reward relationship when the number of stocks in the portfolio increases. Six diverse portfolios have been created with a different number of stocks, such as portfolios with 47 stocks, 95 stocks, 142 stocks, 190 stocks, 239 stocks, and 287 stocks. Stock prices and trading volume were collected on a weekly basis from the six largest European stock exchanges (FTSE100, CAC40, FTSE MIB, IBEX35, DAX, and MDAX). Markowitz’s (1952) diversification formula has been used to measure the risk level of the individual portfolios. The results of the study show that the diversification risk constantly decreases when we move from the portfolios with 47 stocks to the portfolios with 287 stocks. The weighted average returns increase on the portfolios with a higher number of stocks, which is contrary to the standard ...
International Journal of Entrepreneurship and Innovation Management
This study aims to investigate the institutional impact on innovation of firms across 30 transiti... more This study aims to investigate the institutional impact on innovation of firms across 30 transition economies in Central Asia and Eastern Europe. Building on the institutional theory literature, we hypothesise on the direct influence of formal and informal institutions on innovation, also taking into consideration the interaction effects between them, where the latter plays the role of moderator variable, and third, we examine the European Union (EU) membership as control variable. The study uses structural equation modelling (SEM) and data from Business Environment and Enterprise Performance Surveys (BEEPSs) conducted by the World Bank/European Bank for Reconstruction and Development (EBRD) in 2012-2014 to understand the impact of institutional factors on innovation of SMEs in transition economies. Findings suggest that the perceived institutional obstacles to innovation are overcome by the use of bribery to compensate for government ineffectiveness, bureaucracy and inflexible legislation that inhibits smooth economic activities.
Remittances Review
The aim of this paper is to examine the interdependence between the decision to invest in entrepr... more The aim of this paper is to examine the interdependence between the decision to invest in entrepreneurship and the receipt of remittances. Firstly, a conceptual framework is developed within the household utility-maximisation model, wherein households are seen to make decisions on entrepreneurship and remittances simultaneously. Guided by this, the model is specified and estimated, employing the seemingly unrelated bivariate probit model upon a random sample stemming from the Kosovo population census. The findings suggest broad support for the household approach. As expected, the two decisions are simultaneously determined and, while remittances have a positive impact on entrepreneurship, no evidence is found for the statistical importance of migration. Household entrepreneurial behaviour is determined by demographic characteristics, income, relative wealth, education, and type of area.
ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA, 2020
This article evaluates the impact of starting-up unregistered and operating informally on small f... more This article evaluates the impact of starting-up unregistered and operating informally on small firm growth in Kosovo, the country with the highest levels of informality in Western Balkans. The study uses mixed research methods as an inquiry to combining both qualitative and quantitative forms. Reporting data from 487 business owners extracted from a 2017 nationally representative survey of 8,533 households in Kosovo, 47.7 percent had started-up unregistered and were operating informally at the time of the survey. Using an instrumental variable (IV) estimation with a binary endogenous regressor to estimate the impact of informality (a treatment group) on small firm growth (control group), while controlling for other entrepreneur and firm determinants, a strong positive effect of the informality on firm growth is identified. Entrepreneurs operating informally had an 11.6 percentage points higher probability of achieving their firm growth objectives compared with entrepreneurs operati...
International Journal of Technological Learning, Innovation and Development
Entrepreneurship in Former Yugoslavia
Kosovo is the newest country in Europe located in the central Balkan Peninsula. Kosovo is a lower... more Kosovo is the newest country in Europe located in the central Balkan Peninsula. Kosovo is a lower-middle-income economy and has experienced solid economic growth over the last decade. It has experienced growth every year since the onset of the global financial crisis in 2008. The most economic development has taken place in the trade, services, retail, and construction sectors. Kosovo is highly dependent on remittances from the Diaspora, FDI, and other capital inflows. The country provides opportunities for growth in tourism, manufacturing and high value-added services being most promising for growth.
International Journal of Entrepreneurial Behavior & Research
Journal of Small Business & Entrepreneurship
South East European Journal of Economics and Business
Guided by managerial theory and behavioural economics, as well as the literature on exporting, th... more Guided by managerial theory and behavioural economics, as well as the literature on exporting, this study combines the upper echelons perspective with the Melitz model to analyse the export behaviour of firms. Hence, it controls for the influence of managerial characteristics, neglected thus far in the literature on firms’ export choice and volume in transition countries. The empirical analysis is based on a random sample of 500 Kosovan SMEs. The results support the key hypothesis that both subjective and objective managerial characteristics are crucial for export decisions. In line with the strategic choice paradigm and behavioural economics, the findings provide support regarding the influence of the habituation and rational expectations effect, as well as the manager’s education and international exposure concerning export performance. Further, the Kosovan firms are self-selective in their export behaviour in terms of productivity supporting the Melitz model. No evidence, however...
Ekonomski pregled
This article tests the validity of Gibrat’s Law and Jovanovic’s learning theory for growing small... more This article tests the validity of Gibrat’s Law and Jovanovic’s learning theory for growing small and medium-sized firms (SMEs) in post-conflict economy of Kosovo. Despite evolving body of evidence suggesting that Gibrat’s Law does not hold, there is a lack of empirical evidence from transitional and post-conflict economies. This study provides econometric analysis of the relationship of age, size and growth of SMEs. The article is based on pooled SME surveys conducted by Riinvest Institute (2004- 2006). Econometric findings show that Gibrat’s Law does not hold in all model specifications while support the conventional Jovanovic’s learning theory based on growth-size age model suggesting important policy implications for promotion of small firms in Kosovo.
Journal of Entrepreneurship in Emerging Economies
Purpose The quality of institutions matters for firm growth. Yet, there is a research gap in cont... more Purpose The quality of institutions matters for firm growth. Yet, there is a research gap in controlling for moderating effect of size on institutions and firm growth in transitional context and especially in post-conflict economies. Building on institutional theory, this research aims to explore the influence of different types of institutional variables (taxes, corruption, administrative, finance and other barriers) on the growth of firms in Kosovo, while controlling for the firm size moderating effect. Design/methodology/approach The research uses linear regression analysis based on a survey with 451 owner-managers of growing small firms in the post-conflict economy of Kosovo. Findings Corruption and administrative burden are crucial factors that influence firm growth. Corruption is found to have a negative effect, and when moderated by the size of the firm, it becomes positive, suggesting that larger firms make use of informal institutions and create links with public officials ...
This chapter examines the influence of institutional conditions—formal and informal—as well as fi... more This chapter examines the influence of institutional conditions—formal and informal—as well as firm age, firm size, and other characteristics on country-level export performance in 26 transition economies. A two-step empirical strategy first identifies clusters of explanatory variables and, second, applies GLS panel estimations to test for the influence of explanatory and control variables on export performance. Results show that quality of formal institutions does not directly influence export performance, but that problematic informal institutions actually improve export performance. This could be because unfavorable home country conditions could motivate firms to seek outside markets. Surprisingly, findings also show average firm size does not explain export performance. Finally, overall younger firm age is found to improve exports but to a threshold, after which export performance suffers as average firm age rises.
The aim of this paper is to evaluate the individual- and country-level variations in unregistered... more The aim of this paper is to evaluate the individual- and country-level variations in unregistered employment. To analyse whether it is marginalised groups who are more likely to engage in unregistered employment and explain the country-level variations, a 2010 Life in Transition Survey (LiTS) involving 38,864 interviews in 35 Eurasian countries is reported. Multilevel logistic regression analysis reveals that younger age groups, the divorced, and those with fewer years in education, are more likely to be unregistered employed. On a country- level, meanwhile, the prevalence of unregistered employment is strongly associated with tax morale; the greater the asymmetry between informal and formal institutions, the greater is the prevalence of unregistered employment. It is also higher when GDP per capita as well as social distribution and state intervention (subsidies and transfers, social contribution expenditure, health expenditure) are lower. The paper concludes by discussing the theo...
Stock exchanges are constantly prone to instability caused by asset bubbles. Risk level within th... more Stock exchanges are constantly prone to instability caused by asset bubbles. Risk level within the stock exchanges stands as the main concern for the financial investors. Stock prices are influenced by the choices completed on the domestic and international environment. The study intends to measure the risk level of the Prague Stock Exchange (PSE) from the internal risk perspectives. Portfolio diversification formula has been implemented to obtain the risk level of the PSE from 2000 till 2017. Stock prices and the trade volume of the listed companies in the PSE were collected from the Thomson Reuters Eikon database. PSE has been considered as a portfolio based on the number of listed companies on the respective years. The results confirm that financial investors in the PSE would be compensated for the risk exposure. Diversification risk and weighted average returns from 2000 till 2017 were almost moving identically. The results indicate that PSE was influenced from the last financia...
The aim of this study is to critically review the existing initiatives of start-up support servic... more The aim of this study is to critically review the existing initiatives of start-up support services for entrepreneurship growth in Kosovo. In the light of an increasing government and donor activities to support start-ups in Kosovo, there is a need for evaluation of these policy interventions to guide future entrepreneurship policy. Building on the political economy of small firm intervention literature and using mapping method the study identifies and critically evaluates the technical, financial and other support services to start-ups. The study uses secondary resources to explore the initiatives and understand the entrepreneurship growth ecosystem. The findings suggest that although there is an increased trend of business support services the entrepreneurship ecosystem has not gone beyond the traditional policy measures and in many areas remains in its infancy phase of development. Challenges remain in the area of provision of alternative forms of financing, incubation space and ...
Ekonomska Misao i Praksa, 2017
The paper aims to analyse the feasibility of the vegetable crop production in Kosovo by developin... more The paper aims to analyse the feasibility of the vegetable crop production in Kosovo by developing a model used to measure the impact of agricultural intervention programs. For this purpose, we have used combination of direct costing (DC) and activity based costing (ABC) to assess the production costs EKON. MISAO I PRAKSA DBK. GOD XXVI. (2017.) BR. 2. (561-592) S. Lajqi et al.: IMPACT OF AGRICULTURAL... 562 schemes comparing the two crop modalities extended in the two different regions using different cultivars and different production technologies. This study uses a DC and ABC approach in calculating costs in the pepper and tomatoes’ production sectors and in the related agro-processing industries based on five case studies. The results derived from the adopted DC and ABC model in the vegetable sector provide more details and precise cost information that assist various managerial decisions, but are primarily used here to evaluate the impact of agricultural programmes on employment...
Purpose This study aims to compare the diversification risk of the crypto portfolio with those of... more Purpose This study aims to compare the diversification risk of the crypto portfolio with those of equity portfolios. For this purpose, the hypothetical index was constructed with 20 cryptocurrencies that hold the highest market capitalization in the Coin Market Cap database, named as the Crypto-Index 20. Design/methodology/approach The portfolio diversification techniques were used to identify risk linked with the six largest European equity indexes and compared with the Crypto-Index 20. Indexes were considered as an independent portfolio while analysis was completed separately for each of them. Data concerning stock prices and their trade volume were collected from the Thomson Reuters Eikon database while crypto prices and their trade volume from the Coin Market Cap database. The diversification risk of the stock indexes was measured separately for each portfolio with the same risk techniques and the same methodological process. Findings Research results indicate that Crypto-Index ...
This paper examines perceived Critical Success Factors (CSFs) affecting the success of small firm... more This paper examines perceived Critical Success Factors (CSFs) affecting the success of small firms and their relationship with firm and managerial characteristics. The paper also seeks to investigate the interdependence relationship among the perceived CSFs themselves using data reduction techniques. The study tests the number of CSFs on small firm success using primary data that were collected through a questionnaire survey with 256 business start-ups randomly selected from business register kept at Kosovo Business Registration Agency. Principal component analysis (PCA) with Equamax rotation was used to reduce the data and categorize success factors into groups. The findings identified four groups of perceived CSFs affecting the success of business start-ups: (1) Characteristics of individual, social connections and reputation, (2) Management skills, social support and quality of product, (3) Market support, and (4) political involvement. Findings show that factors that are under c...
South East European Journal of Economics and Business
The purpose of this paper is to investigate the impact of different forms of innovation on firm g... more The purpose of this paper is to investigate the impact of different forms of innovation on firm growth, in terms of sales. A total of 278 samples were collected from SMEs in the manufacturing, service and trade industries throughout Kosovo. The data were analysed using a logistic regression analysis. The findings confirm the hypotheses that marketing innovation is positively associated with firm growth, while new to the firm products is negatively associated with firm growth. Other innovation attributes have resulted with non-significance value. The findings in this study can be useful for theoretical discussion, as well as for policy formulation related to introduction of innovation and SMEs development considering that innovation is critical factor in today’s market and competition. Further studies should look into how SMEs could investigate over time from the initial stage to the full development of innovation.
Purpose This paper aims to reveal the effects of birth order in decision-making style, conflict h... more Purpose This paper aims to reveal the effects of birth order in decision-making style, conflict handling style and propensity for participative decision-making. The intention is to open the perspective of birth order research in organizational studies, as an important individual difference of managers. Design/methodology/approach A survey was conducted with 230 managers from different industries in Kosovo. Self-report measures were used for decision-making style, conflict handling style and participatory decision-making constructs. Findings Results indicate that only children are more avoidant and spontaneous decision-makers. Firstborns are rational in decision-making and prefer problem-solving in conflict handling. Middleborns are intuitive decision-makers and use compromising in conflict handling. Lastborns make decisions rationally and use both compromising and problem-solving in conflicting situations. In addition, lastborns appeared to have a more positive attitude toward participative decision-making, followed by middleborns, firstborns and only children. Research limitations/implications Birth order affects managers’ behaviors in decision-making and conflict situations. Relationship dynamics in sibships are reflected in organizational settings, affecting how people behave in decision-making and conflict handling. Originality/value To the best of the authors’ knowledge, this is the first study to attest how birth order influences the ways managers make decisions, handle conflicts and involve others in decision-making. As birth order cannot be changed, such knowledge is critical.
Comparative Economic Research. Central and Eastern Europe
Portfolio optimization is the main concern for portfolio managers. Financial securities are place... more Portfolio optimization is the main concern for portfolio managers. Financial securities are placed within the portfolio based on the investor’s risk tolerance. The study measures the risk-reward relationship when the number of stocks in the portfolio increases. Six diverse portfolios have been created with a different number of stocks, such as portfolios with 47 stocks, 95 stocks, 142 stocks, 190 stocks, 239 stocks, and 287 stocks. Stock prices and trading volume were collected on a weekly basis from the six largest European stock exchanges (FTSE100, CAC40, FTSE MIB, IBEX35, DAX, and MDAX). Markowitz’s (1952) diversification formula has been used to measure the risk level of the individual portfolios. The results of the study show that the diversification risk constantly decreases when we move from the portfolios with 47 stocks to the portfolios with 287 stocks. The weighted average returns increase on the portfolios with a higher number of stocks, which is contrary to the standard ...
International Journal of Entrepreneurship and Innovation Management
This study aims to investigate the institutional impact on innovation of firms across 30 transiti... more This study aims to investigate the institutional impact on innovation of firms across 30 transition economies in Central Asia and Eastern Europe. Building on the institutional theory literature, we hypothesise on the direct influence of formal and informal institutions on innovation, also taking into consideration the interaction effects between them, where the latter plays the role of moderator variable, and third, we examine the European Union (EU) membership as control variable. The study uses structural equation modelling (SEM) and data from Business Environment and Enterprise Performance Surveys (BEEPSs) conducted by the World Bank/European Bank for Reconstruction and Development (EBRD) in 2012-2014 to understand the impact of institutional factors on innovation of SMEs in transition economies. Findings suggest that the perceived institutional obstacles to innovation are overcome by the use of bribery to compensate for government ineffectiveness, bureaucracy and inflexible legislation that inhibits smooth economic activities.
Remittances Review
The aim of this paper is to examine the interdependence between the decision to invest in entrepr... more The aim of this paper is to examine the interdependence between the decision to invest in entrepreneurship and the receipt of remittances. Firstly, a conceptual framework is developed within the household utility-maximisation model, wherein households are seen to make decisions on entrepreneurship and remittances simultaneously. Guided by this, the model is specified and estimated, employing the seemingly unrelated bivariate probit model upon a random sample stemming from the Kosovo population census. The findings suggest broad support for the household approach. As expected, the two decisions are simultaneously determined and, while remittances have a positive impact on entrepreneurship, no evidence is found for the statistical importance of migration. Household entrepreneurial behaviour is determined by demographic characteristics, income, relative wealth, education, and type of area.
ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA, 2020
This article evaluates the impact of starting-up unregistered and operating informally on small f... more This article evaluates the impact of starting-up unregistered and operating informally on small firm growth in Kosovo, the country with the highest levels of informality in Western Balkans. The study uses mixed research methods as an inquiry to combining both qualitative and quantitative forms. Reporting data from 487 business owners extracted from a 2017 nationally representative survey of 8,533 households in Kosovo, 47.7 percent had started-up unregistered and were operating informally at the time of the survey. Using an instrumental variable (IV) estimation with a binary endogenous regressor to estimate the impact of informality (a treatment group) on small firm growth (control group), while controlling for other entrepreneur and firm determinants, a strong positive effect of the informality on firm growth is identified. Entrepreneurs operating informally had an 11.6 percentage points higher probability of achieving their firm growth objectives compared with entrepreneurs operati...
International Journal of Technological Learning, Innovation and Development
Entrepreneurship in Former Yugoslavia
Kosovo is the newest country in Europe located in the central Balkan Peninsula. Kosovo is a lower... more Kosovo is the newest country in Europe located in the central Balkan Peninsula. Kosovo is a lower-middle-income economy and has experienced solid economic growth over the last decade. It has experienced growth every year since the onset of the global financial crisis in 2008. The most economic development has taken place in the trade, services, retail, and construction sectors. Kosovo is highly dependent on remittances from the Diaspora, FDI, and other capital inflows. The country provides opportunities for growth in tourism, manufacturing and high value-added services being most promising for growth.
International Journal of Entrepreneurial Behavior & Research
Journal of Small Business & Entrepreneurship
South East European Journal of Economics and Business
Guided by managerial theory and behavioural economics, as well as the literature on exporting, th... more Guided by managerial theory and behavioural economics, as well as the literature on exporting, this study combines the upper echelons perspective with the Melitz model to analyse the export behaviour of firms. Hence, it controls for the influence of managerial characteristics, neglected thus far in the literature on firms’ export choice and volume in transition countries. The empirical analysis is based on a random sample of 500 Kosovan SMEs. The results support the key hypothesis that both subjective and objective managerial characteristics are crucial for export decisions. In line with the strategic choice paradigm and behavioural economics, the findings provide support regarding the influence of the habituation and rational expectations effect, as well as the manager’s education and international exposure concerning export performance. Further, the Kosovan firms are self-selective in their export behaviour in terms of productivity supporting the Melitz model. No evidence, however...
Ekonomski pregled
This article tests the validity of Gibrat’s Law and Jovanovic’s learning theory for growing small... more This article tests the validity of Gibrat’s Law and Jovanovic’s learning theory for growing small and medium-sized firms (SMEs) in post-conflict economy of Kosovo. Despite evolving body of evidence suggesting that Gibrat’s Law does not hold, there is a lack of empirical evidence from transitional and post-conflict economies. This study provides econometric analysis of the relationship of age, size and growth of SMEs. The article is based on pooled SME surveys conducted by Riinvest Institute (2004- 2006). Econometric findings show that Gibrat’s Law does not hold in all model specifications while support the conventional Jovanovic’s learning theory based on growth-size age model suggesting important policy implications for promotion of small firms in Kosovo.
Journal of Entrepreneurship in Emerging Economies
Purpose The quality of institutions matters for firm growth. Yet, there is a research gap in cont... more Purpose The quality of institutions matters for firm growth. Yet, there is a research gap in controlling for moderating effect of size on institutions and firm growth in transitional context and especially in post-conflict economies. Building on institutional theory, this research aims to explore the influence of different types of institutional variables (taxes, corruption, administrative, finance and other barriers) on the growth of firms in Kosovo, while controlling for the firm size moderating effect. Design/methodology/approach The research uses linear regression analysis based on a survey with 451 owner-managers of growing small firms in the post-conflict economy of Kosovo. Findings Corruption and administrative burden are crucial factors that influence firm growth. Corruption is found to have a negative effect, and when moderated by the size of the firm, it becomes positive, suggesting that larger firms make use of informal institutions and create links with public officials ...
This chapter examines the influence of institutional conditions—formal and informal—as well as fi... more This chapter examines the influence of institutional conditions—formal and informal—as well as firm age, firm size, and other characteristics on country-level export performance in 26 transition economies. A two-step empirical strategy first identifies clusters of explanatory variables and, second, applies GLS panel estimations to test for the influence of explanatory and control variables on export performance. Results show that quality of formal institutions does not directly influence export performance, but that problematic informal institutions actually improve export performance. This could be because unfavorable home country conditions could motivate firms to seek outside markets. Surprisingly, findings also show average firm size does not explain export performance. Finally, overall younger firm age is found to improve exports but to a threshold, after which export performance suffers as average firm age rises.
The aim of this paper is to evaluate the individual- and country-level variations in unregistered... more The aim of this paper is to evaluate the individual- and country-level variations in unregistered employment. To analyse whether it is marginalised groups who are more likely to engage in unregistered employment and explain the country-level variations, a 2010 Life in Transition Survey (LiTS) involving 38,864 interviews in 35 Eurasian countries is reported. Multilevel logistic regression analysis reveals that younger age groups, the divorced, and those with fewer years in education, are more likely to be unregistered employed. On a country- level, meanwhile, the prevalence of unregistered employment is strongly associated with tax morale; the greater the asymmetry between informal and formal institutions, the greater is the prevalence of unregistered employment. It is also higher when GDP per capita as well as social distribution and state intervention (subsidies and transfers, social contribution expenditure, health expenditure) are lower. The paper concludes by discussing the theo...