BUDGET DEFICIT - ITS IMPACT ON THE ALBANIAN REGIONAL ECONOMY AND SOME FACTORS THAT HAS INFLUENCE

A budget deficit is a financial situation where the government's expenditures exceed its revenues for a specified period, usually a fiscal year. Albania recorded a Government Budget deficit equal to 1.40 percent of the country's Gross Domestic Product in 2023. Government Budget in Albania averaged -5.58 percent of GDP from 1993 until 2023, reaching an all time high of -1.40 percent of GDP in 2023 and a record low of - 12.60 percent of GDP in 1997. This deficit must be financed from other sources, often through borrowing. The budget deficit is a common phenomenon in modern economies, but when it is persistent and high, it can create major challenges for a country 's economy. The study of the budget deficit is essential to understand the fiscal health of an economy and to assess its effects on various macroeconomic variables, such as economic growth, inflation, and unemployment. In particular, persistent deficits can lead to a sustainable public debt that can limit a country's ability to finance public services and invest in long-term development. The purpose of this topic is to analyze in depth the budget deficit, the causes that lead to its creation, and the impact it has on a country's economy. This includes an examination of the factors that influence the budget deficit and the strategies that can be used to manage and reduce it. Through case studies, concrete examples from different countries will be examined to illustrate the impacts and possible solutions. In conclusion, this paper aims to provide practical recommendations for policy makers and researchers to improve fiscal management and reduce the negative impacts of the budget deficit. in economics.

Ismet VOKA - Professor Assistatn, Departament of Economics, University Business College, Tirana, Albania. is-voka@hotmail.com

Rezart DIBRA - Professor Assistant, Departament of Economics, University Business College, Tirana, Albania. rezartdibra@yahoo.com

E60, F10, G10, R10

PUBLIC DEBT AS A DETERMINANT OF THE ECONOMIC GROWTH IN KOSOVO

This article investigates the impact of public debt on economic growth in Kosovo. By analyzing secondary data, we aim to determine whether increasing public debt levels have stimulated or hindered economic growth. The study employs an econometric model to quantify this relationship, providing valuable insights for policymakers and economists. The findings suggest a nuanced impact of public debt on economic growth, with implications for fiscal policy and sustainable development strategies in Kosovo. Empirical results suggest negative relationship between public debt and economic growth controlling for other determinants of growth trade openness, total investment, current account balance and primary balance. The results also confirmed the existence of a “U inverted” relationship between public debt and economic growth.

Filipos RUXHO - Professor Assistant, Faculty of Agribusiness, Haxhi Zeka University, Peja, Republic of Kosovo. filipos.ruxho@unhz.eu

Dimitrios P. PETROPOULOS - Professor, Dean of the School of Agriculture and Food University of Peloponnese, Greece. d.petropoulos@uop.gr

Dimas Angga NEGORO - Profesor Assistant Esa Unggul University, Indonesia. dimas.angga@esaunggul.ac.id

H63, E60, O10, O40

THE INSTITUTIONAL IMPACT ON TOURISTIC INDUSTRY IN SOUTHERN EUROPEAN UNION COUNTRIES

The tourism industry in Southern European Union (EU) countries is a critical economic sector, significantly contributing to GDP and employment. This paper investigates the role of institutional factors in shaping the tourism industry in these regions, examining how governance, regulatory frameworks, and policy measures influence tourism development. The study focuses on evaluating the institutional impact on tourism through qualitative and quantitative analyses. The findings underscore the importance of effective governance and robust institutional frameworks in fostering a resilient and competitive tourism sector. This research explores the impact of institutional quality on tourism development in a panel of southern countries within the European Union over the period. Tourism development is evaluated using the number of tourist arrivals, with control variables such as GDP growth rate, inflation, higher education, quality of the environment, and trade, representing key determinants of tourism. Institutional quality is gauged using indicators of government effectiveness, political stability, regulatory quality, rule of law, and voice and accountability. The study utilizes the Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimators to assess the influence of these determinants on tourism development. The findings demonstrate a positive correlation between institutional quality and tourism, providing valuable insights into the role of institutions in tourism management and their impact on the sector.

Fejzulla BEHA - Professor Assistant, Departament of Business and Management, Universum International College, Pristina, Kosovo. fejzulla.beha@universum-ks.org

Antoneta POLO - Associate Professor, Faculty of Economics, University “Eqrem Çabej”, Gjirokastra, Albania. neta_polo@yahoo.com

Carolina PALMA - Professor Assistant, Instituto Politécnico de Beja, Portugal. carolinapalma6f@hotmail.com. (Corresponding Author)

E60, O40