2014•SSRN Electronic JournalOpen access

The Role and the Importance of Foreign Direct Investments in Kosovo's Economic Development

Hamdi Hoti, Bekim Berisha

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Abstract

The foreign direct investments have an important role in the economic development of countries in general and especially in transition countries such as Kosovo. These investments are the most effective way for the creation of new work places to create economic growth in the future. Kosovo, generally it has a new economy and pretty dynamic, where its economy base is transformed from the centralized and orchestrated economy to an open market economy, where the biggest transformation has experienced after the 1999 with the liberation of the country from the invader. Kosovo is making constant effort to establish development policies and other important measures to create a better environment for businesses and a suitable investment climatic by the foreign direct investment since it possesses great potential to become the favorite location for attracting capital and continuous investment information. Also other factors have an important role such as: economic growth and other liberal investment rules where some of these factors affect the growth of foreign direct investment. Looking at the role and importance of investment to the country’s economy, most of different countries try in various ways to create attractive and friendly environment for attracting the investment, to eliminate or reduce the gaps in this direction in general. Therefore, there must be taken all the necessary measures to provide conditions for continual investment to the economy of our country.

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The foreign direct investments have an important role in the economic development of countries in general and especially in transition countries such as Kosovo. These investments are the most effective way for the creation of new work places to create economic growth in the future. Kosovo, generally it has a new economy and pretty dynamic, where its economy base is transformed from the centralized and orchestrated economy to an open market economy, where the biggest transformation has experienced after the 1999 with the liberation of the country from the invader. Kosovo is making constant effort to establish development policies and other important measures to create a better environment for businesses and a suitable investment climatic by the foreign direct investment since it possesses great potential to become the favorite location for attracting capital and continuous investment information. Also other factors have an important role such as: economic growth and other liberal investment rules where some of these factors affect the growth of foreign direct investment. Looking at the role and importance of investment to the country’s economy, most of different countries try in various ways to create attractive and friendly environment for attracting the investment, to eliminate or reduce the gaps in this direction in general. Therefore, there must be taken all the necessary measures to provide conditions for continual investment to the economy of our country.

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Available abstract

The foreign direct investments have an important role in the economic development of countries in general and especially in transition countries such as Kosovo. These investments are the most effective way for the creation of new work places to create economic growth in the future. Kosovo, generally it has a new economy and pretty dynamic, where its economy base is transformed from the centralized and orchestrated economy to an open market economy, where the biggest transformation has experienced after the 1999 with the liberation of the country from the invader. Kosovo is making constant effort to establish development policies and other important measures to create a better environment for businesses and a suitable investment climatic by the foreign direct investment since it possesses great potential to become the favorite location for attracting capital and continuous investment information. Also other factors have an important role such as: economic growth and other liberal investment rules where some of these factors affect the growth of foreign direct investment. Looking at the role and importance of investment to the country’s economy, most of different countries try in various ways to create attractive and friendly environment for attracting the investment, to eliminate or reduce the gaps in this direction in general. Therefore, there must be taken all the necessary measures to provide conditions for continual investment to the economy of our country.

Key concepts: Foreign direct investment, Investment (military), Business, Market economy, Capital (architecture), Economic system, Work (physics), Economics

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