Increase of Production Capacities and Investments in Enterprises Depending on the Perspective of Regional Development

Through this study, regional producing potential was identified based on investments and increase of capacities in order to determine their impact on increase in employment, mainly qualified and university graduate employees. A few questions that arise along the study are: Does the production capacity affect the number of employees? Does the investment amount affect the number of employees? Does the increase of production capacity affect the increase of incomes? Does the increase of incomes affect the employment levels? In conducting the study, we used secondary data published by INSTAT, the Regional Tax Office, municipalities in the Korca region, and primary data obtained through questionnaires filled out by regional enterprises. Data processing revealed that 33% of respondents’ businesses invested in the last 5 years in expanding their activities. As results of the investments made in 40% of businesses, the number of employees has increased by over 20. Despite the internal sources and credit, 30% of businesses chose the government subsidies as an investment method. Due to investments, business incomes increased by 20%. About 33% of businesses plan to increase their investments in the future. The production capacity, investment amount, and increase of income have statistically affected the employment levels greatly. Increase of production capacities has a statistically important effect on incomes. This study will open the doors to other processes in the area. The results achieved will serve as data for the regional institutions, the university, etc.