THE RELATIONSHIP BETWEEN EXTERNAL DEBT AND ENVIRONMENTAL QUALITY IN TÜRKIYE: A FRACTIONAL FREQUENCY FOURIER ARDL BOUNDS TEST APPROACH

As efforts to achieve global sustainability goals intensify, it is increasingly important to understand the environmental consequences of countries’ economic policies, particularly the impact of macroeconomic variables such as external debt. This study analyses the impact of Türkiye’s external debt on environmental sustainability for 1970–2023 using the Fractional Frequency Fourier Autoregressive Distributed Lag (FFF-ARDL) method. Moreover, the variables of economic growth, renewable energy consumption (REN), and non-renewable energy (NREN) consumption were included in the model, and the Environmental Kuznets Curve (EKC) hypothesis was tested. Carbon dioxide (CO2) emissions were used as a proxy for environmental sustainability. The long-run coefficient findings indicate that increases in external debt reduce CO2 emissions, while economic growth initially increases emissions but then declines after a certain income threshold, confirming the EKC hypothesis. Moreover, REN energy consumption decreases CO2 emissions, whereas NREN energy consumption increases them. The Fourier Toda-Yamamoto test results indicate unidirectional causality running from CO2 emissions, REN, and external debt to NREN consumption. There is also unidirectional causality running from economic growth, REN, and NREN consumption to external debt. These findings suggest that Türkiye’s external debt management and the transition toward REN sources are crucial for reducing CO2 emissions

THE IMPACT OF FINANCIAL DEVELOPMENT AND FINANCIAL INCLUSION ON INCOME INEQUALITY: EVIDENCE FROM OECD COUNTRIES

This study examines the relationships between financial sector development, financial inclusion, and income inequality in OECD countries by utilizing panel data from 38 countries for the period 2010-2022. The impact of financial sector development and financial inclusion on Gini coefficient is examined, while applying fixed effects, random effects and GMM modeling. The results suggest that financial inclusion is associated with lower income inequality, while the effect of financial development, proxied by private sector credit, is positive but not statistically robust. We find that financial development, measured by private‑sector credit, is associated with higher income inequality — a pattern consistent with credit concentration in favor of higher‑income groups — whereas financial inclusion is associated with lower inequality, through channels of broadened access to savings, credit, and risk‑management. This study adds value to the existing literature by providing new empirical evidence on the dynamic interplay between financial and real sectors

TOP TEAM MANAGEMENT HETEROGENEITY: DOES IT IMPROVE LARGE COMPANIES’ FINANCIAL PERFORMANCE?

The most crucial question in strategic management is the role of the top management team (TMT) in a company’s overall success. Empirical studies support the thesis that the TMT plays an important role in defining companies’ outputs, thereby focusing on TMT structure. The research question of this paper is as follows: What is the impact of TMT heterogeneity on large companies’ performance in Croatia? The authors employed a secondary quantitative approach. A panel analysis was conducted from 2015–2020. The research included 62 large companies that met the requirements. The results indicated a positive impact of gender and cultural heterogeneity on companies’ performance, as measured by return on assets (ROA). In the return on sale (ROS) model, a positive impact of TMT heterogeneity is not indicated. This paper contributes by identifying the TMT structure from heterogeneous aspects in Croatia and analysing the impact of heterogeneity on companies’ performance in line with the recommendations for defining the TMT structure

ARE ALBANIAN HOUSEHOLDS FINANCIALLY FRAGILE?

This study investigates financial fragility among Albanian households, measured by their ability to cover unexpected expenses, while analysing the impact of socio-economic factors and asset portfolios. Using data from Albania’s first Household Wealth Survey, we find that 59 % of households lack sufficient liquidity to withstand financial shocks, classifying them as financially fragile. Our multinomial regression analysis reveals three key findings: first, households with more educated heads show significantly lower fragility; second, access to formal financial services enhances resilience; and third, family support networks serve as an important buffer against financial vulnerability. These results demonstrate that both formal financial inclusion and informal family ties play crucial roles in household financial stability. These findings suggest that promoting financial education, expanding access to financial services, and supporting remittance channels can help reduce household vulnerability in Albania

ASYMMETRIC EFFECTS OF ISCED4 GRADUATES ON TOTAL AND YOUTH UNEMPLOYMENT IN ROMANIA: EVIDENCE FROM A NARDL FRAMEWORK

The aim of this article is to analyse how changes in the number of post-secondary non-tertiary education (ISCED4) graduates influence the total unemployment rate and the youth unemployment rate in Romania over the period 1991-2023. Using a nonlinear autoregressive distributed lag (NARDL) framework, we decompose lnISCED4 into positive and negative partial sums to test for potential short-run and long-run asymmetries while controlling for EU accession and the global financial crisis. The NARDL results for total unemployment suggest a long-run relationship and significant short- and long-run asymmetry. However, with controls included, the long-run coefficients on lnISCED4+ and lnISCED4– are imprecise, implying that asymmetry mainly reflects short-run adjustment. A benchmark linear ARDL model provides stronger evidence of cointegration and points to a modest negative long-run association between lnISCED4 and total unemployment. For youth unemployment, the NARDL estimates show robust short-run asymmetry. Increases in ISCED4 graduates are followed by short-run increases in youth unemployment, whereas decreases are also associated with subsequent short-run increases, while long-run education-related coefficients remain statistically insignificant. Robustness checks using labour force normalised ISCED4 intensity measures indicate that long-run asymmetry and levels relationships are sensitive to scaling and a shorter 1996-2023 window. These findings underline that expansions in intermediate vocational supply may generate temporary youth labour market pressures when absorption and matching mechanisms are weak and may support policy-makers in designing complementary measures to improve school-to-work transitions

HORIZONTAL MISMATCH AND LABOR MARKET OUTCOMES: EVIDENCE FROM KOSOVO

Horizontal mismatch, the misalignment between workers’ fields of study and their current occupations, is a structural issue in Kosovo’s labor market. Evidence on its consequences remains scarce and primarily descriptive. This study analyzes its impact on hourly wages, working hours, quit intentions, and short-term contracts using data from the Kosovo Labor Force Survey (LFS) for 2012–2023. While descriptive statistics and OLS estimates indicate lower wages and slightly higher working hours among mismatched workers, mismatch status may be non-random and subject to endogeneity concerns. To address selection on observables, kernel propensity score matching (PSM) is implemented as the primary estimator. The findings, consistent with existing literature, suggest that mismatched workers earn €0.163 less per hour (6 percent relative to the mean hourly wage) and work 0.374 additional hours per week (0.9 percent relative to the mean weekly hours) compared to adequately matched workers. The estimated effects on short-term contracts (−0.1 percentage points) and quit intentions (+0.3 percentage points) are small and statistically insignificant. Overall, the results suggest that the primary economic cost of horizontal mismatch in Kosovo operates through earnings penalties rather than contractual instability or pronounced dissatisfaction

MODELLING OF STRUCTURAL EQUATIONS BASED ON THE RELATIONSHIP BETWEEN FINANCIAL OVERDEBT, JOB RISK, DECREASED QUALITY OF LIFE, AND PROACTIVE BEHAVIOR IN THE MEANING OF FINDING AN ADDITIONAL JOB

Modern lifestyles often put at risk careless and reckless financial management, which can lead to over-indebtedness, default and bankruptcy. The inability of individuals to manage their finances is accompanied by numerous negative business, social and family implications that manifest themselves through financial stress, limited spending opportunities, which are directly related to the quality of life, and increasing inequality. In the paper, the authors investigate the phenomenon of excessive borrowing in Croatia to improve the quality of life and artificially raise the standard of living, which limits the plans of the inhabitants of Croatia. Quality of life, within the framework of this research, encompasses the dimensions of financial stability, health, social inclusion and general satisfaction with life, analysing how an individual’s economic circumstances shape their personal and social well-being. Furthermore, the paper analyses (i) the characteristics of individuals in financial difficulties, their attitudes towards debt reduction planning and financial recovery strategies, and (ii) differences in proactive behaviour among individuals, particularly in the context of willingness to take on additional work and the benefits of living standards in response to the current deterioration of their financial situation. The research results indicate that the key to achieving an economy of well-being is finding a balance between the benefits of credit and a sustainable level of indebtedness adjusted to the individual’s financial capabilities. In this context, the research was conducted on a purposive sample of 782 respondents who experienced a loss of economic autonomy and sovereignty in making financial decisions, which influenced their proactive behaviour. Conclusion: The research results confirm that the key to achieving economic well-being is establishing a balance between the benefits of credit and a sustainable level of indebtedness that does not threaten the financial stability of the individual. The research was conducted on a purposive sample of 782 respondents who experienced a loss of economic autonomy, which had a direct impact on the quality of life. The research results suggest that economic factors, such as low income and increased indebtedness, have a more pronounced negative effect on quality of life, while job riskiness may be a reason for finding additional work

INVESTIGATING YOUTH HAPPINESS: THE INTERPLAY OF FINANCIAL SELF-EFFICACY, BEHAVIOR, AND SATISFACTION

This study examines the interplay of financial self-efficacy, financial behavior, financial satisfaction, and life satisfaction of young individuals using Psychological Capital Theory (PCT). Analyzing data from 970 high school and university students in Croatia using structural equation modeling, we find that higher financial self-efficacy positively influences financial behavior. Additionally, responsible financial behavior significantly enhances financial satisfaction, which in turn boosts life satisfaction. Our results indicate a partial mediation effect of financial satisfaction between financial self-efficacy and life satisfaction. The study suggests incorporating behavioral interventions in financial education programs to increase self-efficacy and financial capability perceptions among youth. These interventions have the potential to improve financial behavior and overall happiness among young individuals. These insights are valuable for educational policymakers, financial advisors, planners, psychologists, and behavioral researchers. Effective financial education programs can thus contribute to enhancing youth satisfaction by focusing on increasing financial self-efficacy and responsible financial behavior

The THE DOUBLE-EDGED SWORD OF SALES GROWTH: IMPLICATIONS FOR SMES INSOLVENCY RISK

Research on SME insolvency is one of the most important areas in economy because it is crucial for economic growth which would not be possible without growing firms. These two phenomena - insolvency and growth are typically studied independently. This study brings them together by examining the interaction between sales growth and insolvency among small and medium enterprises (SMEs). On the dataset of financial ratios for Croatian SMEs by applying logistic regression with interaction effects, it is investigated how sales growth, leverage and liquidity affect the probability of insolvency. The results showed that sales growth decreases the risk of insolvency, but that it depends on the level of indebtedness of SMEs. The least risky are those SMEs whose sales growth is supported by an adequate level of capital. SMEs with high sales decline have the highest probability of insolvency even when leverage and liquidity are suitable

THE IMPACT OF GREEN SKILLS MISMATCHES ON GREEN JOB CREATION: EVIDENCE FROM NORTH MACEDONIA

The green transition and the adoption of new green technologies impact all workers, necessitating upskilling and reskilling to remain relevant to the changing labour market. The dynamics of the green transition is determined by many factors including the required green skills and related skills mismatches. Hence, the aim of this paper is to assess the impact of green skills mismatches on green job creation in North Macedonia. The empirical analysis is based on a survey of a representative sample of 530 companies, randomly selected from all regions, economic activities and company sizes. The green job creation is assessed by estimating fractional logit regression. Besides the standard control variables, particular attention has been paid to the underskilling, overskilling, skills deficits, skills obsolescence and horizontal skills mismatches. The results reveal that the green jobs creation is considerably limited by the presence of underskilling and skills obsolescence, while horizontal skills mismatches are emphasized as a problem that weakens the short run planning of green jobs. Accordingly, we suggest policy measures in the fields of education and business cooperation aiming to overcome skill mismatches and accelerate the green transition