Abstract
This chapter surveys the empirical literature on foreign direct investment (FDI) in Kosovo and then examines the inflows, origins, sectoral composition, and geographic distribution of FDI. Kosovo’s relative location, demographics, and investment laws provide positive conditions for attracting FDI. Many industries are available for investors under Kosovo's privatization program, and several economic zones (EZs) have been established to further attract the attention of MNEs. FDI in sectors such as energy, agriculture, tourism, and telecommunications have particularly favorable implications for Kosovo's development prospects through job creation and technology transfer. Nevertheless, inflows of capital have been disappointing thus far due to poor infrastructure, corruption, and unreliable institutions. The political situation remains unclear and variability remains in the enforcement of contracts and the protection of property. Prospects for FDI remain uncertain due to domestic and international political challenges and the economic consequences of the COVID-19 pandemic, which has hit many of Kosovo's leading FDI origin countries particularly hard.
Portions of this chapter were presented by Kyle Conahan at the Transatlantic Students’ Conference Addressing Diplomatic, Economic, and Migration Challenges in Southeastern Europe, Florence, South Carolina, USA 23–27 April 2018.
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Abbreviations
- AKP:
-
Privatization Agency of Kosovo
- BiH:
-
Bosnia & Herzegovina
- BRI:
-
Belt and Road Initiative
- CEE:
-
Central and Eastern Europe
- EU:
-
European Union
- EZ:
-
Economic Zone
- FDI:
-
Foreign Direct Investment
- GCI:
-
Global Competitiveness Index
- GDP:
-
Gross Domestic Product
- GFC:
-
Global Financial Crisis
- GOK:
-
Government of Kosovo
- IOM:
-
International Organization for Migration
- KFOR:
-
Kosovo Force (NATO Mission in Kosovo)
- KIESA:
-
Kosovo Investment and Enterprise Support Agency
- MIGA:
-
Multilateral Investment Guarantee Agency
- MNE:
-
Multinational Enterprise
- NATO:
-
North Atlantic Treaty Organization
- OLI:
-
Origins-Location-Internalization
- SAA:
-
Stabilization and Association Agreement
- SFRY:
-
Socialist Federal Republic of Yugoslavia
- SME:
-
Small and Medium-Sized Enterprise
- SOE:
-
State-Owned Enterprise
- UNMIK:
-
United Nations Mission in Kosovo
- UK:
-
United Kingdom
- US:
-
United States
- WB:
-
Western Balkans
- WBREA:
-
Western Balkan Regional Economic Area
- WIIW:
-
Vienna Institute for International Economic Studies
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Conahan, K., Deichmann, J.I., Krasniqi, B.A., Peci, F. (2021). FDI in Kosovo. In: Deichmann, J.I. (eds) Foreign Direct Investment in the Successor States of Yugoslavia. Economic Geography. Springer, Cham. https://doi.org/10.1007/978-3-030-55739-3_8
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