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Evalution of FDI in CE, SEE and Kosovo in Relation to Growth Rates and Other Indicators

In: Emerging Trends in Banking and Finance

Author

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  • Nakije Kida

    (AAB College)

Abstract

Foreign Direct Investment, and related to it, economic growth are among the main indicators in all countries that are looking for their growth. The challenge is for developing and transition countries such as SEE and Kosovo. The high level of FDI globally (2007) has not yet been repeated. In economic literature, it is considered as a “need” for the analysis of the factors that influenced the chronic level of FDI over a decade. Facing the theoretical criteria, the model Borensztein, et al. (1998), FE and RE technique through macro Panel Stata, judged in its entirety, it is concluded that the improvement of FDI requires money also to improve the specific factors in each country, as we conclude that the FDI determinants in CE, SEE and Kosovo are economic growth, domestic (local) investments, and government spending. Despite the importance of foreign capital flows, the paper emphasizes the importance of cooperation between domestic and foreign firms and the idea that the expectations of foreign investors and the benefits of the local economy are realized on the basis of improving their long-term profits.

Suggested Citation

  • Nakije Kida, 2018. "Evalution of FDI in CE, SEE and Kosovo in Relation to Growth Rates and Other Indicators," Springer Proceedings in Business and Economics, in: Nesrin Ozatac & Korhan K. Gökmenoglu (ed.), Emerging Trends in Banking and Finance, pages 79-114, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-01784-2_6
    DOI: 10.1007/978-3-030-01784-2_6
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