The Business Environment and the Impact of Foreign Direct Investments on Economic Growth in Kosovo

The environment for doing business and attracting investments is important for every economy of different countries, especially for countries in transition such as Kosovo. Therefore, the purpose of this study is to examine the environment of doing business in Kosovo and the main factors influencing the attraction of Foreign Direct Investments (FDI). This study will further identify what is the current position of doing business in Kosovo in relation to previous years, will analyze the favorable factors that influence the attraction of investments and will examine what practices Kosovo should adapt to improve the business environment and investment attraction. In order to support the hypotheses and to test whether foreign direct investments affect economic development, several methods have been applied in this study such as: empirical, statistical and comparative methods. The findings of this study show that the Institutions of Kosovo have dynamically undertaken institutional reform initiatives to improve the business environment, but there are still a number of challenges that Kosovo must overcome. The findings of the study also show that foreign direct investments have an important role in economic growth