The exchange rate is a key macroeconomic factor that affects international trade and the real economy of each country. The development of international trade creates conditions where volatility comes with the exchange rate. The purpose of this paper is to examine the effect of real effective exchange rate volatility on economic growth in the Central and Eastern European countries. Additionally, the effect, through three channels of influence on economic growth which vary on the measurement of exchange rate volatility, is examined. The study uses annual data for fourteen CEE countries for the period 2002–2018 to examine the nature and extends the impact of such movements on growth. The empirical findings using the fixed effects estimation for panel data reveal that the volatility of the exchange rate has a significant negative effect on real economic growth. The results appear robust with alternative measures of exchange rate volatility such as standard deviation and z-score. This paper suggests that policymakers should adopt different policies to keep the exchange rate stable in order to foster economic growth.

The purpose of this study is to identify the drivers of profitability for renewable energy companies in the European Union (EU) during the period of 2004–2018. Specifically, the study investigates the effect of firm-specific, country-specific, and macroeconomic factors on the profitability of the listed renewable energy companies that have their headquarters in the EU. The profitability is measured as return on assets (ROA) and Tobin’s q. Factors that affect profitability are divided into three groups such as firm-specific, country-specific, and macroeconomic factors, and to provide consistent and unbiased results, distinct methods are used. The ordinary least square (OLS) and random effect Generalized Least Squares (GLS) model are employed first. Also, the two-step system generalized method of moments estimation is used to validate the hypotheses. The empirical findings show that firm-specific factors are more dominant in explaining profitability rather than macroeconomic factors. The dynamic models show that profit persists over the years. Also, it is revealed that firm size has a positive effect on profitability in all models. The hypothesis that firms’ growth enhances profitability is evident in the short run, but in the long run, it is insignificant. The leverage has a positive effect on Tobin’s q. In addition, the study finds that tradable green certificate schemes enhance long-term profitability (Tobin’s q). The financial crises discourage the financial performance of renewable energy firms. The study has implications for managers and policymakers that should give importance to firm-specific factors and country-specific factors to promote the profitability of renewable energy companies in order to be sustainable by reducing energy import dependency and ensure energy for the future generation. Special attention should be given to support schemes toward renewable energy to be more effective and enhance firm profitability. The contribution of this paper is that it is the first study that examines the drivers of profitability for renewable energy companies by accounting for firm-specific, country-specific and macroeconomic factors. The study includes a long-time period by using advanced panel data techniques. To add robustness, alternative measures of profitability are used.

Purpose: Western Balkans countries (WBCs) have a great potential for growth and among the main focuses of entrepreneurial activity is small- and medium-sized enterprises (SME) sector. Moreover, SMEs are believed to contribute in the economy by stimulating employment, increasing production, transferring new technologies and so forth. Due to this crucial importance the purpose of this paper is to analyze the barriers that hinder labor productivity (LP) of SMEs in WBCs. Design/methodology/approach: The research method employed to discover solution to this research problem is quantitative analysis by using survey data of World Bank. Research methodology applied in this paper found it correctly to use cross-sectional data and conducts a factor analysis and ordinary least square (OLS) regression as the best procedure for this type of data. Findings: The results show variability for different countries access to finance, tax rates, tax administration, corruption, inadequately educated labor force, competition in informal sector and political instability appear to be some of the main obstacles that are negatively affecting LP of SMEs in WBC. Research limitations/implications: Although this study is the first to analyze all the possible obstacles for the six WBCs using factor analysis better results could be obtained with larger samples and panel data. Practical implications: The policy implications of this study suggest that in order to boost productivity of these firms there must be a reduction of the barriers and improvement of business environment. Although, this study is the first to analyze all the possible obstacles for the six WBCs using factor analysis and contributes as insight to policy makers, better results could be obtained with larger samples using panel data. Originality/value: Differently from previous studies this work uses explanatory factor analysis and method OLS to estimate regressions for all barriers in each country of Western Balkan region.

Purpose: This study aims to investigate the digital entrepreneurial intentions of Albanian youth, identify the obstacles they face in starting digital businesses and examine their preferences regarding the types of businesses they aspire to establish. The Theory of Planned Behavior (TPB) is used as a framework to analyze these factors. Design/methodology/approach: Primary data were collected via questionnaires distributed in public and private universities. In a sample of 325 students, Structural Equation Modeling with Confirmatory Factor Analysis, path analysis and machine learning-based text analysis were used. Findings: This study reveals significant impacts of innovativeness, attitude towards entrepreneurship, subjective norms, perceived behavioral control and self-efficacy on digital entrepreneurial intentions among Albanian students. Additionally, text mining highlights a strong preference for digital entrepreneurship. Research limitations/implications: The theoretical contributions of this study include applying Structural Equation Modeling to reveal insights into the impact of entrepreneurial factors and obstacles. The findings can inform policymakers and educators in designing targeted interventions to support student entrepreneurship. Meanwhile, the limitations of this study encompass a small sample size, lack of time series and panel data and the absence of an evaluation of the impact of education system practices, along with the need to investigate the effects of young population emigration from Albania to the EU. Originality/value: This research contributes to the understanding of digital entrepreneurial intentions and behavior by using TPB in the Albanian context, offering access to a diverse dataset from Albanian universities, testing the direct impact of innovativeness on entrepreneurial behavior and pioneering the use of machine learning techniques for text analysis. Thus, it provides novel insights into the entrepreneurial landscape in Albania. In addition, this work can drive initiatives to support student entrepreneurship and bridge the gap between academia and industry in Albania.

The circular economy (CE) represents a transformative approach to sustainability, emphasizing the reduction in waste and the continual use of resources. Higher education institutions (HEIs) play a crucial role in disseminating knowledge and fostering skills for CE. Nevertheless, little consideration has been given to how CE education is presented, advanced, or cultivated within transitional or resource-constrained systems. This study investigates the current state of integration of CE principles into teaching practices within HEIs in Albania, an emergent EU candidate, representing post-communist and developing contexts. Using a mixed-methods approach, it maps current pedagogical frameworks, identifies challenges, and offers strategic recommendations. The study included 252 students who studied in public and private HEIs in Albania, 27 academics teaching in these institutions, and 15 stakeholders grounded in the quadruple helix model. Findings reveal uneven incorporation of CE concepts across disciplines and limited institutional support, but also spotlight emerging innovations, especially in interdisciplinary approaches and student-led sustainability projects. Conceptual frameworks for mapping CE education, as well as for advancing it, are proposed, offering transferable tools for institutions in comparable systems. This research contributes to global efforts to mainstream CE in higher education by showcasing the specific pathways, gaps, and opportunities that characterize transitional contexts. The Albanian case offers insight into how low-resource higher education systems can position themselves as agents of circular transformation despite policy, capacity, and curricular constraints.