FDI Inflows and Employment Dynamics in the Western Balkans

Authors

  • Era Memeti South East European University, North Macedonia
  • Hyrije Abazi Alili South East European University, North Macedonia
  • Selbije Memeti Karemani University of Tetova, North Macedoni

DOI:

https://doi.org/10.54820/entrenova-2025-0067

Keywords:

Foreign Direct Investment (FDI), Unemployment, Western Balkans Economies, System GMM

Abstract

The aim of this paper is to empirically examine the impact of foreign direct investment (FDI) inflows (% of GDP) on unemployment in the Western Balkan economies. Specifically, this research aims to enhance the understanding of the quality of FDI in the Western Balkans and its connection to labour market outcomes. Using annual panel data and employing fixed effects and system GMM estimators, the study addresses potential endogeneity between FDI and unemployment while controlling for macroeconomic conditions. The goal is to assess the extent to which FDI contributes to job creation in small, transition economies, while considering differences between labour-intensive and capital-intensive investment structures. By exploring these dynamics, the study offers insights for policymakers seeking to align investment attraction strategies with inclusive employment objectives and economic stability in the region.

Author Biographies

  • Era Memeti, South East European University, North Macedonia

    Era Memeti is PhD Candidate in Faculty of Business and Economics, South East European University, Tetovo, North Macedonia. She holds a Master’s degree in Finance, Banking, and Insurance from the University of Tetova, where she also works as a Teaching Assistant at the Faculty of Economics. Her research focuses on key areas of economics, including monetary policy, exchange rate dynamics, macroeconomic stability, and economic forecasting, with a strong emphasis on data analysis, machine learning, and artificial intelligence. Era is involved in academic research and contributes to ongoing discussions in the fields of economic forecasting. The author can be contacted at email: eramemetiii5@gmail.com

  • Hyrije Abazi Alili, South East European University, North Macedonia

    Hyrije Abazi Alili (PhD in Economics, Staffordshire University, UK) is an Professor at South-East European University, Republic of North Macedonia. She teaches undergraduate, postgraduate, and doctoral courses in economics and econometrics. She was Affiliate Fellow at CERGE-EI, Prague for the period 2014-2020. Her research interests include economics of innovation, ICT, entrepreneurship, labour market, gender, social issues, etc., with advanced application of econometrical models. She authored dozen research articles in highly ranked journals, several international conferences and book chapters (international publisher). She was also engaged as senior expert in several international projects: EU Projects, IPA, UNDP, RRPP, etc. She was chair of ISCBE 2019-2025. The author can be contacted at h.abazi@seeu.edu.mk

  • Selbije Memeti Karemani, University of Tetova, North Macedoni

    Selbije Memeti Karemani is an Associate Professor at the University of Tetova, where she lectures in Marketing Management, Business Ethics, and Management. She earned her PhD in Economic Sciences from the "Ss. Cyril and Methodius" University – Faculty of Economics in Skopje and holds a master’s degree in management and marketing from the University of Pristina. Her academic and research interests lie in strategic management, ethical leadership, and marketing practices. Professor Memeti Karemani has made significant contributions to higher education through her teaching, scholarly publications, and active engagement in academic development and institutional advancement. The author can be contacted at: sulbijememeti@live.com

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Published

2026-02-22

Issue

Vol. 11 No. 1 (2025)

Section

International Economics

License

Copyright (c) 2025 Era Memeti, Hyrije Abazi Alili, Selbije Memeti Karemani

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

FDI Inflows and Employment Dynamics in the Western Balkans. (2026). ENTRENOVA - ENTerprise REsearch InNOVAtion Journal, 11(1). https://doi.org/10.54820/entrenova-2025-0067