Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity

To boost economic growth and foster sustained formal job creation in Kosovo, igniting firm productivity is crucial. Based on detailed micro-data, this note examines the characteristics and recent evolution of firms in Kosovo, with particular attent...

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Main Author:	World Bank
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2022
Subjects:	FIRM DYNAMICS FIRM PRODUCTIVITY LABOR PRODUCTIVITY ACCESS TO CREDIT
Online Access:	http://documents.worldbank.org/curated/undefined/099135201212235843/P17195107602a90bd086730a54423f6b077 http://hdl.handle.net/10986/36897

id	okr-10986-36897
recordtype	oai_dc
spelling	okr-10986-368972022-02-01T05:10:56Z Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity World Bank FIRM DYNAMICS FIRM PRODUCTIVITY LABOR PRODUCTIVITY ACCESS TO CREDIT To boost economic growth and foster sustained formal job creation in Kosovo, igniting firm productivity is crucial. Based on detailed micro-data, this note examines the characteristics and recent evolution of firms in Kosovo, with particular attention to firm productivity. For the last decade, the landscape of firms in Kosovo has been dominated by microenterprises with low productivity, employment, and survival rates. Firm creation and growth,small firm density, average size, and the likelihood of survival are all low, which implies that there are severe constraints on private sector development. Kosovo’s firms are only tenuously linked to global markets and the country is lagging in the share of female-run companies. Positive and rising net job creation in 2015-18 was driven by higher formalization of jobs and the increasing size of incumbent firms, especially young small and medium enterprises (SMEs). Kosovo needs a multidimensional policy strategy to foster growth in firm productivity. Based on the study findings and the results of other notes prepared for Kosovo’s country economic memorandum (CEM), this note presents a policy strategy that targets the three main sources of firm productivity growth: (1) firm productivity (the within component); (2) market reallocation (the between component); and (3) firm dynamics (entry and exit). Section one examines the characteristics and recent dynamics of Kosovar firms. Section two analyzes the drivers and evolution of productivity, with emphasis on the links between productivity and access to credit. It also assesses the main barriers to productivity growth. Section three sheds light on how Coronavirus disease 2019 (COVID-19) has affected Kosovar firms. Section four concludes by discussing tentative policy implications of the analysis. 2022-01-31T21:17:19Z 2022-01-31T21:17:19Z 2021-11 Report http://documents.worldbank.org/curated/undefined/099135201212235843/P17195107602a90bd086730a54423f6b077 http://hdl.handle.net/10986/36897 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Country Economic Memorandum Europe and Central Asia Kosovo
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FIRM DYNAMICS FIRM PRODUCTIVITY LABOR PRODUCTIVITY ACCESS TO CREDIT
spellingShingle	FIRM DYNAMICS FIRM PRODUCTIVITY LABOR PRODUCTIVITY ACCESS TO CREDIT World Bank Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity
geographic_facet	Europe and Central Asia Kosovo
description	To boost economic growth and foster sustained formal job creation in Kosovo, igniting firm productivity is crucial. Based on detailed micro-data, this note examines the characteristics and recent evolution of firms in Kosovo, with particular attention to firm productivity. For the last decade, the landscape of firms in Kosovo has been dominated by microenterprises with low productivity, employment, and survival rates. Firm creation and growth,small firm density, average size, and the likelihood of survival are all low, which implies that there are severe constraints on private sector development. Kosovo’s firms are only tenuously linked to global markets and the country is lagging in the share of female-run companies. Positive and rising net job creation in 2015-18 was driven by higher formalization of jobs and the increasing size of incumbent firms, especially young small and medium enterprises (SMEs). Kosovo needs a multidimensional policy strategy to foster growth in firm productivity. Based on the study findings and the results of other notes prepared for Kosovo’s country economic memorandum (CEM), this note presents a policy strategy that targets the three main sources of firm productivity growth: (1) firm productivity (the within component); (2) market reallocation (the between component); and (3) firm dynamics (entry and exit). Section one examines the characteristics and recent dynamics of Kosovar firms. Section two analyzes the drivers and evolution of productivity, with emphasis on the links between productivity and access to credit. It also assesses the main barriers to productivity growth. Section three sheds light on how Coronavirus disease 2019 (COVID-19) has affected Kosovar firms. Section four concludes by discussing tentative policy implications of the analysis.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity
title_short	Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity
title_full	Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity
title_fullStr	Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity
title_full_unstemmed	Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity
title_sort	kosovo country economic memorandum, november 2021 : raising firm productivity
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/undefined/099135201212235843/P17195107602a90bd086730a54423f6b077 http://hdl.handle.net/10986/36897
_version_	1764486107272052736

Kosovo Country Economic Memorandum, November 2021 : Raising Firm Productivity

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