Abstract
Abstract Following the propositions of firm internationalization theories including the Melit’z dynamic model of export participation, this paper investigates the effects of human capital on the export decisions of Kosovo’s firms. Using a unique dataset of around 500 Small and Medium Enterprises, econometric estimates show mixed indications regarding the relationship between the propensity to export and longevity in export markets and human capital variables, measured by the education of the workforce, and investment in training. While education generally has a negative effect on exporting decisions, the latter shows a consistent positive effect. In the context of Kosovo, this dichotomy may reflect in part the effect of the underperforming education system in Kosovo, which does not produce the right level and/or mix of skills required by the private sector; this, in turn, forces SMEs to invest in increasing workforce capacities. Another Petrit Gashi Faculty of Economics, University of Prishtina, Kosovopetrit.gashi@uni-pr.eduCroEconSurVol. 16No. 2December 2014pp. 91-120Received: September 11, 2014Accepted: November 13, 2014Research Articledoi:10.15179/ces.16.2.4
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