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A Framework for Short- vs. Long-Term Risk Indicators for Outsourcing Potential for Enterprises Participating in Global Value Chains: Evidence from Western Balkan Countries

Author

Listed:
  • Jolta Kacani

    (Department of Accounting, Faculty of Economy, University of Tirana, 1001 Tirana, Albania)

  • Lindita Mukli

    (Department of Mathematics, Aleksander Moisiu University, 2001 Durres, Albania)

  • Eglantina Hysa

    (Department of Economics, Epoka University, 1032 Tirana, Albania)

Abstract

This paper aims to present a benchmarking framework for short- and long-term risk of enterprises in emerging markets that seek integration in global value chains. The benchmark instrument aims in particular to assess short- and long-term risk based on accounting data and estimations of key financial ratios for enterprises located in the Western Balkan region and operating in the materials, industrials, and customer-discretionary industries. In total, the paper considers 310 enterprises. Given the geographical proximity of the region, the benchmark instrument for short- and long-term risks serves to assess the outsourcing potential these enterprises have toward foreign enterprises dominating larger markets such as the European value chain. The framework is applicable to a large-scale annual data series collected on subindustry level in order to obtain a more granular analysis of a particular industry and its respective value chain. The benchmarking instrument indicates that those subindustries performing better both at short- and long-term risk display a higher outsourcing potential and more opportunities for integration in global value chains.

Suggested Citation

  • Jolta Kacani & Lindita Mukli & Eglantina Hysa, 2022. "A Framework for Short- vs. Long-Term Risk Indicators for Outsourcing Potential for Enterprises Participating in Global Value Chains: Evidence from Western Balkan Countries," JRFM, MDPI, vol. 15(9), pages 1-14, September.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:9:p:401-:d:911173
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    References listed on IDEAS

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    1. Otilia Manta & Mirela Panait & Eglantina Hysa & Elena Rusu & Maria Cojocaru, 2022. "Public Procurement, a Tool for Achieving the Goals of Sustainable Development," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 861-861, August.
    2. Katarina Valaskova & Tomas Kliestik & Lucia Svabova & Peter Adamko, 2018. "Financial Risk Measurement and Prediction Modelling for Sustainable Development of Business Entities Using Regression Analysis," Sustainability, MDPI, vol. 10(7), pages 1-15, June.
    3. Fatbardha Morina & Eglantina Hysa & Uğur Ergün & Mirela Panait & Marian Catalin Voica, 2020. "The Effect of Exchange Rate Volatility on Economic Growth: Case of the CEE Countries," JRFM, MDPI, vol. 13(8), pages 1-13, August.
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