New Institutional Economics and Economic Development of the Republic of Kosovo

The purpose of this study is the analysis of the new institutional economics according to \nparameters and criteria that affect the growth and economic development such as free movement of \ncapital, contract enforcement, information costs, risk transfer costs, free competition and their \napplication into practice. Institutional innovation, in terms of establishing more efficient and effective \ninstitutions, can only be done if there is support of the whole society, but given the limitations set \nforth in Kosovo, as possible change of the Constitution, some laws and other internal and external \nrestrictions, the achievement of this goal is difficult. Because of the very specific and serious past, \nand also very long delay in the process of transformation and transition, the economic development \nand new institutional economics in Kosovo, according to almost all development indicators has \nsignificantly stagnated in comparison with the countries of the European Union and Western Balkans. \nEconomic growth and development implies a very complex and multidimensional process, \ninfluencing many factors such as economic, technological, institutional, political, social and cultural. \nEconomic growth depends on political institutions and their capacity to define in a more clear and \nacceptable way its common goals. Given the political dimension of the capacity of the state, certainly \nshould be considered also the institutional approach of development i.e. political dimensions of the \ninstitutions that support economic development.