Title: Ecosystem factors and economic policy in the Western Balkans: analysing the impact of COVID-19

Authors: Yllka Poteri Avdiu

Addresses: Faculty of Business and Economics, South East European University, Tetovo, 1200, North Macedonia

Abstract: This paper examines the impact of fiscal policy measures on unemployment before, during, and after the COVID-19 pandemic, utilising a unique dataset of economic indicators for six Western Balkan countries spanning from 2000 to 2022. An empirical econometric model is employed to analyse the relationship between fiscal stimulus and unemployment during the pandemic. The study uses various econometric methods, including ordinary least squares (OLS), robust OLS, fixed and random effects models, and the Hausman-Taylor test with instrumental variables. The findings reveal that increased consumption, government spending, and economic growth were linked to higher unemployment during the pandemic, while taxes appeared to play a role in reducing unemployment rates. This research provides valuable insights into the complex dynamics of fiscal policy and unemployment in the Western Balkans, offering practical implications for policymakers and central banks in managing future crises.

Keywords: ecosystem factors; economic policy; fiscal policy; Western Balkans; unemployment dynamics; COVID-19 pandemic; econometric modelling; ordinary least squares; government spending; pandemic impact.

DOI: 10.1504/IJCLM.2025.144699

International Journal of Complexity in Leadership and Management, 2025 Vol.4 No.1, pp.55 - 64

Received: 18 Oct 2024
Accepted: 08 Jan 2025
Published online: 27 Feb 2025 *

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