The Role of the Diaspora in Economic Development: The Impact of Remittances and Foreign Direct Investments in Kosovo

Purpose: The paper deals with issues related to remittances and foreign direct investments, including the analysis of their economic effect in Kosovo. The main purpose of this paper is to analyze direct investments and remittances in Kosovo and the effect of remittances on the economy in recent years in the Republic of Kosovo. Design/methodology/approach: This article provides a theoretical overview of remittances and direct investments and their impact on the economy. To finalize the work, the material used includes scientific literature, as well as reports and publications from the Central Bank of Kosovo, the Ministry of Finance. To achieve the main objective of the article, various data sources such as analysis methods, comparative methods, econometric analysis are used, which are analyzed and analyzed in a correlative manner. Findings: Within the framework of the work we have done regarding the analysis of remittances and direct investments and their impact on the economy of Kosovo, the results have shown that: remittances and direct investments have an impact on economic processes and economic activities. Practical implementations: Through the study, we consider that the results and recommendations should be taken into account by interested parties and certain sectors in Kosovo. Originality value: Direct investments and remittances remain one of the important factors for the economy in Kosovo. Given that Kosovo has a low level of domestic production and economic growth, as well as a high rate of unemployment, in this context the importance and effect of direct investments and remittances has been and remains of particular importance for family economies and the economy in generally.