Promotion, encouragement and legal protection of foreign investments in the developing country

Abstract

The purpose of this research is to analyze and reveal the main issue of foreign direct investment (FDI) in theory and practice and the case of Kosovo. In this analysis, we used the case study research method. The results of the research show that different definitions have been given from different aspects of foreign investment, especially in financial theory. Investment promotion schemes have been successful in luring particular categories of investors, and they appear to have a statistically significant impact on foreign investment flows (Wells & Wint, 1990). The fact that developing countries, like Kosovo, may provide investors with a variety of “built-in” assets is one of the reasons why they are becoming more and more desirable investment locations (Mallampally & Sauvant, 1999). The use of the appropriate methodology to produce the required indicators necessitates that the relationship between the variables be examined in order to empirically validate and ascertain their impact on investments and investors, and the significance of investments. Despite the successes, this paper identifies a number of flaws that must be fixed if Kosovo is to boost transparency and draw more foreign investment. We conclude that this can be accomplished by the qualified bodies working more diligently in this regard.