Challenges and Problems in the Kosovo Reality Related to Foreign Direct Investment
Economic development is a goal aspired by many countries of the world, Kosovo included. In attaining such goals, many countries face numerous difficulties. Amongst the most often taken paths by various countries is the attraction of foreign direct investments to the country.
The term investment includes a wide range of human activities in engaging financial means into one of the areas: immoveable property, bonds and shares, manufacturing and service projects, scientific research, technological development, personnel education, etc.
Different from internal investment which is engaged by domestic investors in their own territories, Foreign Direct Investment, the topic of our study, is a form of investment which generates revenues by a company in the country and an affiliate branch outside the investor’s seat. Foreign Direct Investments generate relations through the local company and its branches outside the country. Foreign Direct Investments (FDIs) are considered to be a strength giving life to economic development of a country, and especially the developing countries.
They have an important role to play in a long-term development of a country, and not only as a capital source, but also in increasing competitive abilities of the domestic economy, by technological transfers, strengthening infrastructure, increased productivity and generation of new employment opportunities.
Abrashi, A., and Kavaja, B., (2000), Kosovo’s natural resources in the function of economic and social development (“Resurset natyrore të Kosovës në funksion të zhvillimit ekonomiko-shoqëror”), UESH, Prishtina.
World Bank, (2010), A Country Economic Memorandum (“Raporti i Bankës Botërore për Kosovën”), Report no. 53185-XK.
Central Bank of Kosovo, (2012), Annual Report 2013, Prishtina.
Central Bank of Kosovo, (2012), Annual Report 2012, Prishtina.
Central Bank of Kosovo, (2012), Monthly Statistical Bulletin, Prishtina.
Central Bank of Kosovo, (2012), Financial Stability Report (“Raporti i Stabilitetit Financiar”), no. 103, Prishtinë.
Central Bank of Kosovo, (2012), Financial Stability Report (“Raporti i Stabilitetit Financiar”), no. 106, Prishtina.
Badivuku-Pantina M., (2008), “The importance of Foreign Direct Investments on Economic Development of Kosova”, International
Review “Lex et Scientia”, No. XV Vol.2/2008, Bucharest.
Dornbusch, R., dhe Fischer,S., (2000), Macroeconomics (“Makroeconomia”), Dituria, Tirana.
RIINVEST Institute, (2004), Foreign Direct Investment in Kosovo (“Investimet e jashtme direkte në Kosovë”), Prishtina.
Constitution of the Republic of Kosovo, Chapter IX, Article 119, Prishtina.
Ministry of Trade and Industry, “Investment Kosovo - Food Processing Industry”, Prishtina.
OSCE, (2006), Best-Practice Guide for a Positive Business and Investment Climate, Organization for Security and Cooperation in Europe (OSCE).
Transparancy International, (2012), “Corruption perceptions index 2012”, Berlin.
UNDP, (2012), Fiscal Evasion (“Evazioni fiskal”).
Copyright (c) 2016 M.Sc. Nexhat Shkodra, M.Sc. Nermin Xhemili, Dr.Sc. Myrvete Badivuku-Pantina
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (SeeThe Effect of Open Access).