The effect of foreign trade on economic growth: The case of Kosovo

Thesis Type: Postgraduate

Institution Of The Thesis: Uludağ Üniversitesi, Turkey

Approval Date: 2017

Thesis Language: Turkish




The relationship between foreign trade and economic growth dates back to the birth of the Science of Economic, although they are among the most important issues that are still being debated. The increasing production capacity along with excess supply that could occur in a globalizing world need for the establishment of market has led to the emergence of the relationship between foreign trade and economic growth. Kosovo, which declared its independence in 2008, faced a negative trade balance due to the 1999 war and the continuation of political instability is seen as another reason. The country's economy has recently recovered, though it still has not reached the desired level. In this study we have carried out firstly the general outline of the Kosovo economy proceeded by trends in the foreign trade of Kosovo, through various statistical data published by relevant institutions, trend of development in export and import and trade balance of the country, barriers to foreign trade activities and especially the problems experienced in the export of goods and services have been examined. The second phase of the study includes economic growth in Kosovo, sources of growth, obstacles to growth and forecasts growth of the country's economy. In the last article, which is the main objective of the study, is analyzed within the econometric model whether the components of foreign trade which is exports and imports have an effect on economic growth or not.