Abstract

Abstract Foreign direct investment (FDI) represents a significant impetus for sustainable economic growth and development. From the context of the importance that FDI carries as the transfer of knowledge, experience, employment growth and development of human capital, its attraction definitely requires a proper legal basis, namely, the implementation of the law and the proper functioning of judiciary. The main aim of this study is to elaborate the legislation on foreign direct investment in Kosovo and to analyse FDI in Kosovo over the years. This study is based on local literature, specifically the interpretation of the current law on FDI in Kosovo and international literature to examine the effects of legislation on a business climate. This study is descriptive, comparative and analytical, based mainly on secondary data provided by the World Bank indicators on FDI in Kosovo over the years. Kosovo as a young, post-war state has drafted a number of reforms in the economic field and in the field of law enforcement and judiciary, but undoubtedly the current law governing strategic investments has room for improvement, thus, must be enforced in order for investors to feel safe while operating in Kosovo. This study also concludes that Kosovo is attractive for foreign investors due to the increasing rate of GDP, labour market conditions, high rate of degree holders complying with labour market requirements. The study goes further with recommendations on supplementing the current law versus the European FDI legislation. The major implication of the study is the comparative analysis of Kosovo’s law in regard to the EU Law on FDI.

Highlights

  • Foreign direct investment (FDI) is a catalyst for economic growth of any country, whether it is an economically developed or developing country

  • The tendency to attract foreign direct investment is evident in almost every country, regardless of the economic development of the country, for the sake of the positive effects that FDI has on the economies of the host countries

  • Kosovo has implemented a number of international agreements for trade liberalisation and the creation of economic zones in order to increase the attractiveness of the economy for foreign investors

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Summary

Introduction

Foreign direct investment (FDI) is a catalyst for economic growth of any country, whether it is an economically developed or developing country. The tendency to attract foreign direct investment is evident in almost every country, regardless of the economic development of the country, for the sake of the positive effects that FDI has on the economies of the host countries. When it comes to developing countries, as Kosovo is among other Western Balkan countries, the role of FDI in the economy becomes. Kosovo is a new state, but it has implemented a number of reforms in almost every field, starting with the economic, legal and other

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