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.

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.

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.

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From the beginning of 2020, the whole world has been shaken by a contagious disease called Covid-19, its actual name being SARS-CoV-2. It first appeared in China, in Wuhan, Hubei Province, in December 2019, and the World Health Organization (WHO) was informed about it on the 31st of December 2019. On the 11th of March, 2020, WHO declared the Covid-19 outbreak a pandemic, and no country has been able to contain this coronavirus.  This medical or health crisis evolved into a pandemic and led to a global economic crisis.  This study investigates the wealth effect of the coronavirus pandemic announcement on the Information Technology Industry companies in Europe. We apply the classical event study methodology. Our sample contained 87 companies. The results show a strong negative reaction of information technology companies upon this announcement. The European investors perceived this announcement as a negative signal that will disturb the lives of everyone and will create economic instabilities and havoc in all sectors of an economy. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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