Acta Universitatis Danubius. Œconomica, Vol. 10, No. 3


  • Collective Authors


The purpose of this paper is to examine the role of Foreign Direct Investment (FDI) in
economic development through the development of the country that has the potential sectors. The
effect of technology in these sectors had risen sector and area that until then had remained neglected.
The paper investigates the impact of foreign direct investment (FDI) in economic growth using
detailed sectoral FDI in Kosovo during the period 2000-2013. Sectors considered are: Agribusiness,
Tourism, forestry, services, manufacturing, mining, energy, construction, wholesale and retail trade,
hotels and restaurants, transport, telecommunications and other sectors. The negative effect of
extractive industries in creating income and environmental pollution in Kosovo is not surprising. FDI
in manufacturing industries by stimulating exports generate more income. FDI are likely to repatriate
their profits but are likely to increase employment. To ensure legal protection for foreign investors,
have signed an agreement with the Agency Multilateral Investment Guarantee (MIGA), the avoidance
of double taxation, taxes are the lowest in Europe. Investment Promotion Agency of Kosovo (IPAK),
the level of government makes the promotion of Kosovo. As a developing country taking the time
information is more difficult but efforts in this direction are great.


Abdul, Khaliq & Ilan, Noy (2007). Foreign Direct Investment and Economic Growth. Empirical
Evidence from Sectoral Data in Indonesia, pp. 11-37.
Agosin, M. R. & Mayer, R. (2000). Foreign investment in developing countries: Does it crowd in
domestic investment? UNCTAD Discussion Paper 146, Geneva.
Alfaro, L., Chanda, A., Kalemli-Ozcan, S. & Sayek, S. (2004). FDI and Economic Growth: The Role
of Local Financial Markets. Journal of International Economics 64(1), pp. 89-112.
Borensztein, E, DE Gregorio, J & Lee, J-W (1998). How does foreign direct investment affect
economic growth? Journal of International Economics, 45, pp. 115–135.
Balasubramanyam, V., Salisu, M. & Sapsford, D. (1996). FDI and Growth in EP and IS Countries.
The Economic Journal 106(434), pp. 92-105.
BQK/CBK (2014). Vlerësimi Tremujor i Ekonomisë/Quarterly Assessment of Economy No 5,
Tremujori/ Quarter IV, pp. 3-19.
Balasubramanyam, V., Salisu, M. & Sapsford, D. (1996). FDI and Growth in EP and IS Countries.
The Economic Journal 106 (434), pp. 92-105.
Borensztein, E., de Gregorio, J., & Lee, J-W (1998). How does foreign direct investment affect
economic growth? Journal of international Economics, 45, pp. 115-135.
Chakraborty, Chandana & Nunnenkamp, Peter (2006). Economic Reforms, Foreign Direct Investment
and its Economic Effects in India. Kiel Working Paper No. 1272.
Firebough, G. (1992). Growth Effects of Foreign and Domestic Investment. American Journal of
Sociology 98 (I), pp. 105-130.
Investment Promotion Agency of Kosovo (IPAK).
International Monetary Fund, IMF Country Report No.12/180, July 2012.
Javorcik, Beata Smarzynska (2004). Does Foreign Direct Investment Increase the Productivity of
Domestic Firms? In Search of Spillovers through Backward Linkages. American Economic Review
94(3), pp. 605-627.
***(2009). MTI, strategjia e industris së Kosovës, 2009-2013, dhjetor 2009/Strategy of industry of
Kosovo, 2009-2013, December.
Narula, R, (1995). Multinational Investment and Economic Structure Globalization and
Competitiveness. Taylor and Francis.
***(2012). UNCTAD, Raporti mbi investimet e huaja direkte në Shqipëri, 2011, maj/UNCTAD,
Report on Foreign Direct Investments in Albania, 2011, May.
Wilton Park Conference WP881 (2007). Title: Report on Willton Park Conference 881. China’s
Rapid Economic Growth: Internal ImpactT, External Implications, pp. 2-11.
Online Sources




How to Cite

Collective Authors. (2021). Acta Universitatis Danubius. Œconomica, Vol. 10, No. 3: Array. Acta Universitatis Danubius. Œconomica, 10(3). Retrieved from