Fiscal policy and foreign trade as a determinant of economic development: A Case of Kosovo

The purpose of this paper is to identify the role of fiscal policy in Kosovo, comparing with the Western Balkan countries, in the trends of economic development, which are related to the international market, and how to achieve the objectives of the economy of Kosovo, penetrating the foreign market of local companies, using fiscal policy instruments. Data processing is performed using deductive-analytical methods, describing and comparing research findings by commercial companies, extracting data and comparing official reports of national and international institutions on the role of policies analysis in the Western Balkan countries and in Kosovo, and the results of the research are based on these analyzes. Each sovereign state has its own fiscal policy operating within the fiscal system of that country, which also influences the development trends of international trade, the same applies to Kosovo and the Western Balkan countries, where this policy includes customs tax, VAT, tax in personal income, etc. The government of the country, through fiscal policy instruments creates conditions for companies to be as present in the foreign market as possible with their products, which impacts on the overall economic development of the country. achieved. The paper provides insights into the state of the fiscal system in Kosovo, how fiscal policy affects the creation of conditions for foreign trade development, where is Kosovo's economy is in relation to the Western Balkan countries and what are the steps needed to improve it. The paper provides real data on the state of the fiscal system in Kosovo and its full role in the development of foreign trade in relation to the Western Balkan countries.