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, is found for the significance of institutional factors, even after performing factor analysis.
The aim of this paper is to conceptualise the migration duration decision within the expected utility maximisation framework, and from that to derive and estimate an empirical proposition. For this purpose, the conceptual framework in Kotorri (2015) is extended where households decide to return to the home country conditional on their migration duration. In the empirical analysis, the Cox proportional hazards model is employed. This analysis is the first to investigate migration duration based on a random sample stemming from the Kosovo census of population conducted in 2011. The findings suggest rather mixed support for the household approach. The hazard to return decreases with income but not nonlinearly. The results indicate that household return migration behaviour is influenced by demographic characteristics, psychic income, and political factors.
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.
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