Increase of Exports as a Potential Factor for Sustainable Economic Development of Kosovo

• Main Authors: Dr.Sc. Myrvete Badivuku - Pantina, Dr.Sc. Skender Ahmeti, MSc. Nexhat Shkodra
• Format: Article
• Language: English
• Published: Felix-Verlag 2013-12-01
• Series: ILIRIA International Review
• Subjects: export; economic development; balance of payments; domestic production
• Online Access: http://iliriapublications.org/index.php/iir/article/view/114

Kosovo as the newest state in the region, in the economic aspect represents an economic complex with considerable potential of human, economic and demographic resources, having an open economy and entirely Euro integrated, with the central position in Balkan Peninsula. As a new state Kosovo is going through a transition phase and is found in an unsatisfactory position, therefore a serious professional intervention by the competent mechanisms is necessary towards finding an adequate solution which enables a speedier economic, social and cultural development, thus accessing into economic and political integrations in the region and in Europe. Kosovo economy during 2012 was characterised by a positive norm of growth. The real norm of economic growth in the country reached the figure of 2.9 per cent. The slowest developments in the regional and European markets during this year appeared as a challenge for the general economic activity in the country. In 2012, a decrease was marked from several important sources of financing in the country, especially the foreign direct investments. A reduction was also characterised in export of goods, but, growth of export of the services neutralised the effect of decrease of goods export. Kosovo suffers from the negative trade balance, implying that Kosovo depends on imports, whereas its opportunities to export local products into foreign market are very low. With intention of improving the competitive position of Kosovar enterprises, and for increasing export into world market, the existing economic policies need to be amended and supplemented and the institutional functioning needs to be improved as well. The aim of this study is to provide a realistic overview of the economic situation of Kosovo through an overall analysis and to also give recommendations with intention of improving the trade balance in favour of increase of Kosovar export in the future.