scholarly journals Challenges and Problems in the Kosovo Reality Related to Foreign Direct Investment

2015 ◽  
Vol 5 (1) ◽  
pp. 81
Author(s):  
MSc. Nexhat Shkodra ◽  
MSc. Nermin Xhemili ◽  
Dr.Sc. Myrvete Badivuku-Pantina
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Technological Development ◽  
Foreign Direct Investments ◽  
Wide Range ◽  
Service Projects ◽  
Local Company ◽  
A Company

Economic development is a goal aspired by many countries of the world, Kosovo included. In attaining such goals, many countries face numerous difficulties. Amongst the most often taken paths by various countries is the attraction of foreign direct investments to the country.The term investment includes a wide range of human activities in engaging financial means into one of the areas: immoveable property, bonds and shares, manufacturing and service projects, scientific research, technological development, personnel education, etc.Different from internal investment which is engaged by domestic investors in their own territories, Foreign Direct Investment, the topic of our study, is a form of investment which generates revenues by a company in the country and an affiliate branch outside the investor’s seat. Foreign Direct Investments generate relations through the local company and its branches outside the country. Foreign Direct Investments (FDIs) are considered to be a strength giving life to economic development of a country, and especially the developing countries.They have an important role to play in a long-term development of a country, and not only as a capital source, but also in increasing competitive abilities of the domestic economy, by technological transfers, strengthening infrastructure, increased productivity and generation of new employment opportunities.

scholarly journals The Importance Of Foreign Direct Investments On Economic Development In Transitional Countries: A Case Study Of Kosovo

2016 ◽  
Vol 12 (7) ◽  
pp. 288 ◽  
Author(s):  
Halil Kukaj ◽  
Faruk B. Ahmeti
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Business Community ◽  
Foreign Direct Investments ◽  
Domestic Investment ◽  
Quarter Century ◽  
Domestic Capital ◽  
Wide Range

The role of investment, in particularly foreign direct investment (FDI), is regarded as one of the most important contributors of economic growth. The past quarter century has witnessed remarkable growth in FDIs flow all over the world. This is due to the fact that many countries, especially developing countries, see FDI as an important element in their overall strategy for economic development. This paper provides a review of the economic impact of FDI, with specific focus on developing countries particularly Kosovo and ex-Yugoslavian countries in the Balkan Peninsula. FDIs contribute to the economic development of host country in two main ways. They include the augmentation of domestic capital and the enhancement of efficiency through the transfer of new technology, marketing and managerial skills, innovation, and best practices. Secondly, FDI has both benefits and costs, and its impact is determined by the country’s specific conditions in general and the policy environment in particular. This is in terms of the ability to diversify, the level of absorption capacity, targeting of FDI, and the various opportunities for linkages between FDI and domestic investment. The paper aims to clarify the main causes of failure of foreign direct investments in Kosovo and reviles the importance of indicators that majorly has an institutional nature. Neither the amount nor the effects of foreign direct investment were satisfactory. Therefore, the paper reviles that in this aspect, a wide range of actions needs to be made, which is specifically related to government institutions and the business community.

scholarly journals Foreign Direct Investment Led Growth Hypothesis and Economic Development in Nigeria

2021 ◽  
Vol 2 (4) ◽  
pp. 376-393
Author(s):  
Ubong Edem Effiong ◽  
Nora Francis Inyang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Unit Root Test ◽  
Secondary Data ◽  
Short Term ◽  
Causality Test ◽  
Bounds Test ◽  
Growth Hypothesis

This study was an inquiry into the nexus of the foreign-direct investment (FDI) led growth hypothesis, and how it translates into the development of the Nigerian economy as of 1970 – 2018. The study utilized secondary data from the ‘World Development Indicators’ which were analysed using the Bounds test for cointegration and the ‘autoregressive distributed lag (ARDL) approach to divulge both the short-term cum the long-term influence of foreign direct investment net inflow on ‘economic development’ of Nigeria. The Bounds test was conducted after the unit root test revealed that the variables were stationary at mixed order of level and first difference. The outcome of the ARDL Bounds test supported confirmation of long-term association among the variables. The ARDL short-run error correction showed that 14.62% of the instability in the model was corrected yearly. In the short-term, it was discovered that FDI wielded a deleterious and substantial weight on ‘economic development of Nigeria. Meanwhile, the long-term estimates indicated that FDI influenced economic development positively, though not in a significant manner. The Granger causality test supported the fact that FDI causes ‘economic development’ in Nigeria. Given this potential of FDI exerting a positive effect on ‘economic development’, the paper recommended that bottlenecks inherent in FDI influxes in the country should be removed so as to reap the fullest benefits of such inflows in Nigeria.

Doing Business in Africa and African Business Opportunities

2014 ◽  
pp. 119-166
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
African Countries ◽  
Performance Levels ◽  
Doing Business ◽  
Business Opportunities ◽  
And Performance

This is a key chapter in this book. It is central to the book’s message and explains fully the concept “doing business in Africa.” The chapter further classifies African business opportunities into enabling and specific opportunities. Specific opportunities are precise areas of Foreign Direct investments. The enabling opportunities are resources and institutions that make investing and doing business in Africa possible and easier. These resources and institutions include USA, European, Chinese, Brazilian, and Indian strategies to promote investment and “doing business in Africa.” These strategies further include linkages and several USA, European, Indian, Brazilian, and Chinese institutions focusing on promoting African trade and business. Moreover, the various perspectives of Foreign Direct Investment in Africa are elucidated and African countries are classified according to their economic development and performance levels.

scholarly journals Foreign Direct Investments In Bangladesh: Some Recent Trends And Implications

2016 ◽  
Vol 15 (1) ◽  
pp. 21-32
Author(s):  
Sonia H. Manzoor ◽  
Manzoor E. Chowdhury
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Functional Relationship ◽  
Secondary Data ◽  
Physical Capital ◽  
Developing Nations ◽  
Foreign Direct Investments ◽  
Recent Trends

For many developing nations, Foreign Direct Investment (FDI) has been viewed as a powerful instrument for economic development.  In particular, FDI has become a major source of capital formation and an instrument for facilitating knowledge transfer.  Expansion of FDI has led countries to build physical capital, increase employment, trade, and gross domestic product, and consequently helped to eradicate poverty.  Using secondary data for Bangladesh, this paper investigates the effect of FDI on some major economic indicators of growth and examines the functional relationship between FDI and indicators.

scholarly journals Optimization of the Activities of Institutions Promoting Investment in the sustainable Economic Growth of Russia

2021 ◽  
Vol 25 (4) ◽  
pp. 110-120
Author(s):  
E. A. Zvonova ◽  
V. Ya. Pishchik ◽  
P. V. Alekseevc
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
The State ◽  
Russian Economy ◽  
Socio Economic Development ◽  
Development Institutions ◽  
Investment Process

The article examines and assesses the problem of the investment deficit in the Russian economy, which has acquired particular relevance due to the coronavirus crisis caused by the pandemic. The study aims to develop practical recommendations for Russian state bodies to stimulate the investment process in the Russian economy and improve the efficiency of measures taken by the state to ensure the country’s socio-economic development. The objectives of this paper are to analyze the directions of optimization and prioritization of investment of resources during the economic recession caused by the coronavirus crisis using investment lending and project financing instruments, as well as to analyze and assess the ongoing reform of development institutions based on the state corporation “VEB.RF”. The research methodology includes an analysis of the regulatory legal framework, statistical information, official reports of state bodies, development institutions, scientific monographs and publications of Russian scientists, periodicals. The authors analyzed the trends and problems of the investment process in the Russian economy, including in the field of attracting foreign direct investment. Attention is paid to the ongoing reform of development institutions aimed at enhancing the role of the state development corporation “VEB.RF” in stimulating investment. The authors conclude that it is necessary to take a set of functional, instrumental, and institutional measures aimed at stimulating investment and ensuring sustainable socio-economic development of Russia. In particular, in the context of a shortage of domestic sources of financing for long-term investments, it is important to provide regulatory macroeconomic support for the inflow of foreign direct investment into the Russian economy. In this regard, the authors propose to change the monetary policy strategy to increase the stimulating role of refinancing of credit institutions and the projected exchange rate in attracting domestic and foreign long-term investments and ensuring sustainable development of the Russian economy. The authors also propose to increase the role of foreign exchange regulation and foreign exchange control in stimulating investment and ensuring sustainable socio-economic development of Russia.

scholarly journals IMPORTANCE OF FOREIGN DIRECT INVESTMENTS (FDI) IN KOSOVO AND CREATION OF FAVORABLE POLICIES IN ATTRACTING THEM

2019 ◽  
Vol 30 (6) ◽  
pp. 1607-1609
Author(s):  
Feim Brava
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developed Countries ◽  
Emerging Countries ◽  
Foreign Direct Investments ◽  
Fiscal Policies ◽  
Institutional Policies ◽  
Domestic Capital ◽  
Domestic Investments

Domestic investments are essential to develop of each country, but sometimes insufficient, in most countries that aim for sustainable and long-term growth. Hence, most countries, and Kosovo, have a continuing need for additional capital, which, with adequate institutional policies, can be provided through Foreign Direct Investment (FDI).While in developed countries there are debates about and against FDI (especially about the type of FDI when an investment can be made from domestic capital), in underdeveloped and developing countries there is a consensus on the need for FDI to meet the need for investments that can not be realized through local investment.Several emerging countries and Kosovo have made constant efforts to increase these investments but have faced significant problems in attracting foreign investors. Disadvantaged institutional policies, including monopoly policies and fiscal policies, have been one of the limiting factors.This paper aims at analyzing current policies related to attracting FDI and identifying and analyzing institutional policies that are facilitating FDI, but the main focus will be on current and potential policies that can will negatively impact on FDI withdrawal. At the end of the paper, some conclusions will be drawn based on research on the current situation as well as some recommendations on policies that may advance attracting Foreign Direct Investment (FDI).

scholarly journals Foreign Direct Investments Induced Innovation? A Case Study – Macedonia

2016 ◽  
Vol 19 (1) ◽  
pp. 5-24
Author(s):  
Mico Apostolov
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Knowledge Society ◽  
Transition Process ◽  
Industrial Society ◽  
Foreign Direct Investments ◽  
Southeast Europe ◽  
A Company ◽  
Triadic Relationship

This paper, while analysing innovation in Southeast Europe, and in particular the case study of Macedonia, focuses on the basic ties between foreign direct investments and innovation. Foreign direct investment is usually defined as dominant or controlling ownership of a company in one country (the host country), by an entity based in another country. The concept of industry-government-university relationships interprets the change from a dominating industry-government duo in the ‘industrial society’ to a growing triadic relationship between industry-government-university in the ‘knowledge society’.From the beginning of the transition process, foreign direct investments have been a priority, an essential pillar that moves the society forward towards a developed market economy. In addition, as the influx of capital increases it inevitably brings with it increased innovation. Hence we examine the possibility that these two indicators have a positive and upward ascent and facilitate the development of the economy.

scholarly journals FEATURES OF ESTIMATING THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT FLOWS WITHIN COUNTRY INVESTMENT POTENTIAL EVALUATION

2020 ◽  
pp. 6-11
Author(s):  
Oleksii Valentynovych Lyulyov ◽  
Bogdan Andriiovych Moskalenko
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Local Economic Development ◽  
Empirical Studies ◽  
Foreign Direct Investments ◽  
Economic Determinants ◽  
Investment Allocation ◽  
Socio Economic Development ◽  
Potential Evaluation

Urgency of the research. Theoretical and empirical studies show that investment allocation has a perceptible impact on local economic development. Target setting. Taking into consideration reasonably low quantity of high-quality investments, countries all over the world are eager to incentive foreign direct investments inflows. Therefore, realistic country investment potential evaluation is vitally important for respective government institutions within their policies getting done. Actual scientific researches and issues analysis. The major issues of country investment potential evaluation, and investment market in general, were made by the following scientists and technicians: O. Fedonin, I. Riepina, O. Oleksiuk, S. Lieonov, B. Chub, Ie. Lapin, J. Dunning, A. Thompson., D. Kaufmann, M. De Melo, K. Berden, S. Sarno, P. Buckley, A. Fukumi and others. Uninvestigated parts of general matters defining. At the same time, insufficient scientific works cover approaches to assessing investment potential of Ukraine, based on latest research results of foreign scientists within current topic. Current socio-economic determinants of foreign direct investment need to be studied. The research objective is to identify key determinants of foreign direct investment inflow in the economy of Ukraine. The statement of basic materials. The article have considered determinants of foreign direct investment inflows, which are related to country socio-economic development and state institutions indicators. Conclusions. Studies of statistics of groups in transition economies have shown that the simultaneous adoption indicators of socio-economic development and quality of public institutions into the model of country investment potential evaluation allows to evaluate the elasticity of foreign direct investment to changes in each of the determinants.

scholarly journals THE EVALUATION OF FOREIGN DIRECT INVESTMENT INFLUENCE ON ECONOMIC DEVELOPMENT OF BALTIC COUNTRIES / TIESIOGINIŲ UŽSIENIO INVESTICIJŲ ĮTAKOS BALTIJOS ŠALIŲ EKONOMINEI RAIDAI VERTINIMAS

2016 ◽  
Vol 8 (2) ◽  
pp. 212-200 ◽  
Author(s):  
Greta Lukoševičiūtė ◽  
Raimonda Martinkutė-Kaulienė
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Statistical Data ◽  
Foreign Direct Investments ◽  
Theoretical Evaluation ◽  
Correlation And Regression Analysis ◽  
Baltic Countries ◽  
The Baltic

In order to ensure economic growth it is necessary to pay attention to the investments. The bigger amount of investments and their profitability grants the bigger scale of country‘s production and its growth. In the paper foreign direct investments (FDI) in the Baltic Countries were analysed. The theoretical evaluation of foreign direct investment on economic development of country was submitted. It was theoretically analysed the factors that attract foreign direct investment. Based on statistical data FDI and GDP dynamics in the Baltic countries was analysed. FDI flows and GDP connection using correlation and regression analysis was evaluated. Results of analysis was used to evaluate foreign direct investment influence on economic development of Baltic Countries. Stengiantis užtikrinti ekonominį augimą būtina atkreipti dėmesį į investicijas. Kuo didesnės investicijų apimtys ir jų pelningumas, tuo didesni šalies gamybos mastai ir aukštesni jos didėjimo tempai. Straipsnyje nagrinėjamos tiesioginės užsienio investicijos (TUI) Baltijos šalyse 2008–2014 metais. Pateikiamas teorinis tiesioginių užsienio investicijų daromos įtakos vertinimas šalies ekonominei raidai. Teoriškai analizuojami veiksniai, skatinantys tiesiogines užsienio investicijas. Remiantis statistiniais duomenimis, ištirta TUI srautų bei BVP dinamika Baltijos šalyse per 2008–2014 metus. Taikant koreliacinės regresinės analizės metodus tiriamas TUI ir BVP ryšys. Pagal tyrimo rezultatus įvertinama tiesioginių užsienio investicijų daroma įtaka Baltijos šalių ekonominei raidai.

Foreign Direct Investment, Technological Innovation, and Export Performance

2018 ◽  
pp. 1-24
Author(s):  
Arzu Tay Bayramoglu ◽  
Tezcan Abasız
Keyword(s):  
Foreign Direct Investment ◽  
United Arab Emirates ◽  
Direct Investment ◽  
Technological Development ◽  
Export Performance ◽  
Panel Cointegration ◽  
Foreign Direct Investments ◽  
Asian Countries ◽  
Patent Applications ◽  
The Impact

This chapter's objective is to explore the effects of foreign direct investment inflows and technological innovations on export performance in developing Asian countries (Hong Kong, China, Indonesia, Singapore, India, Turkey, Malaysia, Vietnam, United Arab Emirates, and Thailand) in the period of 1990-2015 by using the panel cointegration technique. The empirical results reveal that there is a cointegration among the variables, and cointegration regression shows that the foreign direct investments, per income and patent applications, have a positive and statistically significant impact on export performance in developing Asian countries. The results reveal that the impact of patent applications is greater than the foreign direct investments on exports. Then, technological development affects exports positively in all countries in the sample, except for India and the United Arab Emirates.

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