IDEAS home Printed from https://ideas.repec.org/a/eur/ejesjr/156.html
   My bibliography  Save this article

The Impact of FDI on the Structure of the Kosovo Economy

Author

Listed:
  • Nakije Miftar Kida

    (College AAB, Pristina, Albania)

Abstract

This study has addressed the impact of domestic investment and FDI net flow from the services sector on economic growth for a period of 10 years. The data are taken from CBK, in annual periods, using the technique of Pearson correlation and multiple OLS regression, conducted with the statistical program SPSS 21.0. FDI attraction by the services sector is found to be greater than by the other sectors. This becomes more evident by findings from econometric analysis, where the services sector has a strong impact on economic growth in the country. Meanwhile, the "crowding out" effect has happened, indicating that local investment (local firms) has a modest level of technical and managerial changes, since increasing effect is estimated to be negative. According to this study, the economy of Kosovo has grown with an average rate of 4 percent for 16 years and the biggest contributor is the services sector with 56 percent of GDP, which includes financial services, insurance companies, construction, telecommunications, real estate, trade etc. This pace still continues to be a model of economic growth in Kosovo and continues to be supported by certain economic policies, while other sectors lag behind. This result clearly shows that, although the level of FDI inflows in Kosovo is low, the sector specification shows positive trend of incoming flows in the services sector. This is due to dominance in market of the financial sector and that of insurance with foreign capital as the only financing source of the local businesses.

Suggested Citation

  • Nakije Miftar Kida, 2017. "The Impact of FDI on the Structure of the Kosovo Economy," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 3, May - Aug.
    • Handle: RePEc:eur:ejesjr:156
    DOI: 10.26417/ejes.v8i1.p80-86
    as

    Download full text from publisher

    File URL: https://revistia.com/index.php/ejes/article/view/5354
    Download Restriction: no
    File URL: https://revistia.com/files/articles/ejes_v3_i2_17/Nakije2.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26417/ejes.v8i1.p80-86?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eur:ejesjr:156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Revistia Research and Publishing (email available below). General contact details of provider: https://revistia.com/index.php/ejes .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.