Analysis of Kosovo-Turkey trade relations after the independence of Kosovo (2008-2020)

The Balkans are among the regions that have hosted many civilizations in every period of history. The fact that the region is on the transit trade route from Asia to Europe allows the importance of the Balkans to increase. This situation is closely related to Turkey's geostrategic position. This helped to develop a common history, culture and economic relations in the region and made Turkey one of the most important trade partners of the region. Türkiye-Kosovo relations continue to develop increasingly in recent years. The beginning of relations between the two countries dates back to Turkey being one of the first countries to recognize the independence of Kosovo. The developments experienced allowed the formation of strong and friendly relations between Turkey and Kosovo. Especially in recent years, the progress of the economic relations between the two countries has ensured the vitality of the commercial relations and made it possible for Turkey to be among the most important trade partners of Kosovo. The developments also enabled many Turkish companies in Turkey to make direct investments in Kosovo, making it an important field of activity for Turkish companies, especially for the economy of Kosovo. In this way, it is aimed to create stronger economic relations in the international arena by increasing the economic growth potential between the two countries. This study examines the effect of foreign trade relations between Turkey and Kosovo, of foreign direct investment on economic growth, using ADF Unit Root Test, ARDL Bounds Test and Toda Yamamoto Causality Test analysis methods between 2008-2020. Within the scope of the study, the absence of foreign investment data for Turkey for the periods 2008:1-2009:4 and Kosovo's foreign direct investment data in Turkey caused the scope of the study to narrow. As a result, it was concluded that the foreign trade relations between the two countries do not have a causal relationship between foreign direct investment and economic growth. As a result of the current research, it was concluded that the trade relations between the two countries are still not at the desired level and that the existing economic relations should be further developed.