Factors impacting the public social insurance scheme: The developing market study

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Abstract

This research deals with the performance and factors of the social insurance system in Albania, which is of great importance for the economy to analyze, and the pension system that is subject to Albania’s government policies that can change over time. The purpose of this research is to analyze the relationship between social entrepreneurship and the social environment by analyzing public revenue, expenditure, fiscal policy, and the changes in minimum and maximum wages of public social contributions in Albania for the period 1999–2020. The authors find that public pension system variables such as income, expenditure, and minimum/maximum wage follow a normal distribution and their respective p-values are greater than 0.05, and income has an impact on public pension expenditure. For this study, the linear model is used, and the statistical tests used to obtain the required results are Kolmogorov–Smirnov and Shapiro–Wilk, and the correlation coefficient (r = 0.986) indicates that there is a strong positive relationship between them. The results are useful for Albanian politicians to manage the public welfare system geared towards social entrepreneurship and encourage the authors to proceed with the analysis of other financial instruments related to this system.

Keywords: Public Social Scheme, Social Entrepreneurship, Fiscal Policy

Authors’ individual contribution: Conceptualization — A.D.; Methodology — A.D. and D.L.; Formal Analysis — I.S., D.L., and F.D.; Writing — Original Draft — S.X., I.S., and A.D.; Writing — Review & Editing — I.S., A.D., and F.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: E20, E62, F66, G38, G52

Received: 31.05.2023
Accepted: 26.01.2024
Published online: 31.01.2024

How to cite this paper: Xhaferri, S., Sotirofski, I., Demi, A., Lika, D., & Domi, F. (2024). Factors impacting the public social insurance scheme: The developing market study. Corporate & Business Strategy Review, 5(1), 161–174. https://doi.org/10.22495/cbsrv5i1art16