HOW AND HOW MUCH DIGITALIZATION AFFECTED ENTERPRISE PERFORMANCE DURING COVID-19 PANDEMIC

Ermira KALAJ

University “Luigj Gurakuqi”, Shkoder, Albania

ermira.kalaj@unishk.edu.al

ORCID: 0000-0003-4692-6055

Erjola BARBULLUSHI

University “Luigj Gurakuqi”, Shkoder, Albania

erjola.barbullushi@unishk.edu.al

Abstract

This paper focuses on the analyses of digitalization of enterprises and its performance impact in Albania. Using World Bank Enterprise Survey of 2019 merged with the ES follow-up on Covid-19 for Albania we investigate on the overall performance of enterprises during Covid-19 pandemic and the role of digitalization. The objective of the survey is to better understand the firm’s experience in the private sector. Collected data are based on firms’ experiences and perception of the environment in which they operate.

The paper uses these specific questions to study digitalization prior to and during Covid-19 pandemic. ES questionnaires focus on the following questions: (1) Does the establishment have its own website? (2) Started or increased business activity online? (3) Started or increased remote work arrangement for its workforce? The dependent variable is performance of the enterprises measured in terms of sales growth, employment growth, closure, and production adjustment. While the vector of independent variables is composed by enterprise characteristics such as firm size, ownership structure, legal status, region, etc. Moreover, dummy variables are used to capture access to formal banking service, and gender ownership.

Keywords: Firm Performance, Entrepreneurship, Digitalization, General Regional Economics

JEL classification: L25, L26, L86, R15

pp. 97-108

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A NETWORK-BASED ALGORITHM FOR COMPUTING KEYNESIAN INCOME MULTIPLIERS IN MULTIREGIONAL SYSTEMS

Dimitrios TSIOTAS

Assistant Professor, Department of Regional and Economic Development, School of Applied Economic and Social Sciences, Agricultural University of Athens, Amfissa 33100, Greece

tsiotas@aua.gr

Abstract

In the context of the Keynesian “multiplier effect” approach, regional economic growth and development are conceived as the result of changes in demand stimulating an iterative process of returns of income. Aiming to revisit this established regional economic model, promote multidisciplinary thinking, enjoy better supervision of computations and intuitive interpretation of the results, broaden the applicability of the model, and serve educational purposes in regional economics and development, this paper proposes an algorithm for computing Keynesian income multipliers in multiregional systems. Building on network connectivity, estimations of the regional shares of imports, marginal propensity to consume, and changes in demand, the proposed algorithm provides a framework for standardizing computations of the multiplier effect in multiregional systems. The algorithm is implemented in two theoretical scenarios, contributing to a deeper conceptualization of the computation of the Keynesian income multipliers, and an empirical case of the land interregional commuting network in Greece, providing insights into the developmental dynamics of the labor market (demand for employment) in Greece. Overall, the analysis highlights the symbiotic relationship between the multiplier effect and network structure in regional markets, promotes multidisciplinary thinking in regional science and economics, and provides a code of this network-based algorithm to motivate further research.

Keywords: regional markets, multiplier effect; export-base model; demand for employment; interregional commuting

JEL classification: R11, R15, R23, R41

 pp. 25-46

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THE CONTRIBUTION OF COHESION POLICY TO THE DEVELOPMENT AND CONVERGENCE OF THE REGIONS OF THE EUROPEAN UNION

Panagiotis KOUDOUMAKIS

Dr. Civil Engineer

Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

pkoudoum@civil.duth.gr

George BOTZORIS

Associate Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

gbotzori@civil.duth.gr

Angelos PROTOPAPAS

Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

aproto@civil.duth.gr

Abstract

The Cohesion Policy’s (CP) contribution to the development and convergence of EU regions is examined by utilizing the most complete historical data about CP payments regionally. Through the implementation of the neoclassical econometric model, the positive contribution, with a room of improvement, of CP to development and convergence of EU regions is substantiated. Moreover, the contribution of the secondary sector is emerging as the most critical. It is argued that the provision of reliable data of the implementation of CP contributes decisively towards reducing the complexity and heterogeneity of results. Also increases their potential to be utilized in assessment and design programs.

Keywords: Cohesion Policy of the European Union, Regional development and convergence, Econometric model, Data reliability and representativeness, Secondary sector

JEL classification: R11, R58, R15

 pp. 277-290

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