The Legal Aspect and the Economic Perspective of the Foreign Direct Investment

The Case of Kosovo

Abstract

Foreign Direct Investment (hereinafter referred to as FDI) are an important segment of economic-financial activity in the national economy. Being so important they deserve special attention from the politicians as well as an analytical review in scientific terms. Foreign Direct Investment are one of the key factors for promoting the country's sustainable economic development. They have economic and financial impact but their legal aspect is also very important. This paper elaborates the concept of foreign direct investment, their impact on the national economy and the legal basis of foreign direct investment. As an analytical case is used the Republic of Kosovo, whose institutions are creating policies and are adopting laws for an appropriate environment that affects the attraction of foreign investors and investments. The focus of this paper is the analysis of the concept of FDI, the legal infrastructure, the factors that impact the attraction of investments, and their role in the economic development of the country. The purpose of this paper is to analyse the role and importance of foreign direct investment for national economic development as well as the legal security of investments in the Republic of Kosovo. In the elaboration of the paper was used the literature of foreign authors, statistical reports of local and international institutions as well as local legislation dealing with the regulation of this issue. The main methods used are: descriptive methods, methods of analysis and synthesis, statistical methods, legal methods and comparative methods.