Session

Management, Business and Economics

Description

In digital and artificial intelligence intensification era where up to 2/3 of Gross Domestic Product (GDP) is generated from the service sector, nearly ¾ of household budget is spent by the Kosovo families in food and accomodation. This is a larger and greater share than in the neighboring countries to which Kosovo approximately has the same level of incomes per capita. At the same time, for some years in a row, spending for education until the recent available data has not exceded 1%, showing another difference with the neighbring countries in volume as well as in total share of household budget expenditures. Using the secondary data from the Statistical Office of Kosovo on household survey of family economies, this paper finds that the ongoing high share of income spending in food and accomodation at the expense of other sectors becomes a source of innefficiency in social and state organization, plunges the households into unnafordable debts, and may even give rise to corruptive behvior. In addition, the paper goes beoynd numerical economic indicators by interpreting the mentality of the families and the population in large scale, which consider much of their life mission only through available incomes for food and housing (contruction of houses and buildings) as a wealth. Furthermore, this mentality of perceived wealth is often used as a comparative indicator of pride while ridiculing the others who are not at a similar level with them, regardless that the latter may have a different view of their own life style and mission. Another specific of this paper making it different from the buld of studies in this respect (on household budget surveys) is that, while the rest of the studies usually address economic recommendations to the government, the recommedantions from the findings of this study address recommendations to the population, because the government, state and public institutions are a product of this people whose primary life objective is in buildings and consumption on individual, family and clanish bases.

Keywords:

Kosovo, household budget survey, housing, consumption, education

Session Chair

Naim Preniqi

Session Co-Chair

Muhamet Gërvalla

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

First Page

173

Last Page

184

Location

Lipjan, Kosovo

Start Date

31-10-2020 10:45 AM

End Date

31-10-2020 12:15 PM

DOI

10.33107/ubt-ic.2020.281

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Oct 31st, 10:45 AM Oct 31st, 12:15 PM

A Nation’s Mission Of Housing and Consumption: An Analysis of Household Budget Survey Expenditures in Kosovo

Lipjan, Kosovo

In digital and artificial intelligence intensification era where up to 2/3 of Gross Domestic Product (GDP) is generated from the service sector, nearly ¾ of household budget is spent by the Kosovo families in food and accomodation. This is a larger and greater share than in the neighboring countries to which Kosovo approximately has the same level of incomes per capita. At the same time, for some years in a row, spending for education until the recent available data has not exceded 1%, showing another difference with the neighbring countries in volume as well as in total share of household budget expenditures. Using the secondary data from the Statistical Office of Kosovo on household survey of family economies, this paper finds that the ongoing high share of income spending in food and accomodation at the expense of other sectors becomes a source of innefficiency in social and state organization, plunges the households into unnafordable debts, and may even give rise to corruptive behvior. In addition, the paper goes beoynd numerical economic indicators by interpreting the mentality of the families and the population in large scale, which consider much of their life mission only through available incomes for food and housing (contruction of houses and buildings) as a wealth. Furthermore, this mentality of perceived wealth is often used as a comparative indicator of pride while ridiculing the others who are not at a similar level with them, regardless that the latter may have a different view of their own life style and mission. Another specific of this paper making it different from the buld of studies in this respect (on household budget surveys) is that, while the rest of the studies usually address economic recommendations to the government, the recommedantions from the findings of this study address recommendations to the population, because the government, state and public institutions are a product of this people whose primary life objective is in buildings and consumption on individual, family and clanish bases.