IMPORTANCE AND IMPACT OF FOREIGN DIRECT INVESTMENT IN KOSOVO
IMPORTANCE AND IMPACT OF FOREIGN DIRECT INVESTMENT IN KOSOVO

Summary/Abstract: Foreign Direct Investment (FDI) is a key element in international economic integration. They create direct, stable and long-term links between economies, and allow economies to promote their products in international markets. FDI is also an additional source of investment funding, which with the help of appropriate policies can be an important tool for development. Foreign Direct Investment (FDI) according to the OECD (2008) is defined as a category of cross-border investments made by a resident of an economy (direct investor) with the aim of establishing a fixed interest enterprise (direct investment enterprise) that is located in an economy other than that of the direct investor. The direct investor motivation is a long-term strategic relationship with the direct investment enterprise to ensure a significant degree of influence from the direct investor in the management of the direct investment enterprise. "Stable interest" is established when the direct investor owns at least 10% of the voting power of the direct investment enterprise. Direct investment can allow the direct investor to gain access to the enterprise economy direct investment that he would not otherwise be able to make. The objectives of direct investment are different from those of portfolio investment, where investors generally do not expect to have an impact on the management of the enterprise.

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