Econometric analysis of the relationship between foreign direct investment, economic growth and employment: The case of Kosovo

Kosovo is a newly independent country that has been struggling with economic problems for years. The country has tried many ways to overcome its economic problems. After independence in 2008, Kosovo became a member of international organizations such as the World Bank (WB), Central European Free Trade Agreement (CEFTA) and the International Monetary Fund (IMF) in order to meet its need for economic assistance and to be active in the international market. Although Kosovo has made significant economic progress in recent years, there are still problems such as unemployment and trade deficit that need to be corrected. In this study, firstly, the general situation and geopolitical position of Kosovo are discussed. In the second part, the general situation of Kosovo's pre-independence and post-independence economy, the real economy over the years, unemployment rates and economic relations between countries are discussed. In the third part, the positive or negative aspects of foreign direct investments to economic factors, growth, employment, technology status in the country, competition are stated. In the fourth and final section, the effect of capital investments on economic growth and employment is analyzed by using econometric model.