ISSN: 2222-6990
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This paper focuses on the role of Foreign Direct Investment inflows in the Mining Sector to Kosovo’s Economic Growth. Using the model from endogenous growth theories and using Ordinary Least Squares (OLS) as the methodical technique, the results suggest that FDI in mining has a positive and significant impact on GDP per capita which was used as a proxy for growth. This confirms the hypothesis that there is a positive relation between FDI in mining and growth. The coefficient for FDI in mining is positive but it is quite small suggesting a very minimal effect on GDP per capita, however it suggests that there is necessity to sustain and attract further FDI in order for the economy to benefit. Furthermore, the investment climate in the country is evaluated and policy measures are suggested in order to attain the goal of increasing FDI in the sector and increasing the benefits from FDI in mining to the rest of the economy. These suggestions include: introducing light screening mechanisms to FDI in the mining sector in order to regulate procedural technicalities and provide a more transparent reporting method; settling the status of existing mining sites that are under the Privatization Agency administration; create a “one-stop-shop” for all procedures related to establishing a new company, licensing and reporting in the Independent Commission on Mines and Minerals; and ,lowering export taxes for the mining companies that invest in processing plants in order to positively incentivize investment in processing plants that will localize FDI benefits.
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In-Text Citation: (Bucaj, 2018)
To Cite this Article: Bucaj, A. (2018). The Impact of FDI in Mining on Kosovo’s Economic Growth. International Journal of Academic Research in Business and Social Sciences, 8(1), 260–285.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
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