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Transformative Dynamics of the Economy of Kosovo: A Perspective on History and Development of Foreign Direct Investment

Author

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  • Zogjani Jeton

    (MSc Economics, Faculty of Economics, University of Prishtina, Prishtina, Kosovo)

  • Kovaci-Uruci Fife

    (MSc Economics, Faculty of Economics, University of Prishtina, Prishtina, Kosovo)

  • Zogjani Agon

    (BA Management and Informatics, Faculty of Economics, University of Prishtina, Prishtina, Kosovo)

Abstract

This paper presents an in-depth overview of foreign direct investments (FDI) in Kosovo's economy over more than twenty years. FDI has played a central role, proving indispensable to the development of Kosovo's economy. Thus, FDI is primarily directed towards economic activities like real estate, finance, manufacturing, construction, etc. In terms of the legal framework, Kosovo has approved a range of regulations and laws with the primary goal of protecting, attracting and encouraging foreign investors to invest. However, obstacles such as political instability, energy insecurity, delayed EU integration, and regional political tensions are recognized as the main barriers affecting FDI in Kosovo. Finally, Kosovo should develop suitable policies to boost its investment competitiveness, attract multinational enterprises for investment opportunities, and prioritize less attractive economic sectors for investment of FDI.

Suggested Citation

  • Zogjani Jeton & Kovaci-Uruci Fife & Zogjani Agon, 2024. "Transformative Dynamics of the Economy of Kosovo: A Perspective on History and Development of Foreign Direct Investment," Naše gospodarstvo/Our economy, Sciendo, vol. 70(3), pages 37-47.
    • Handle: RePEc:vrs:ngooec:v:70:y:2024:i:3:p:37-47:n:1003
    DOI: 10.2478/ngoe-2024-0015
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    More about this item

    Keywords

    Business climate; FDI inflow; Foreign investors; Growth; Kosovo;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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