This study examines the effect of FDI on economic growth and agriculture in Kosovo in the years 2010-2021. To quantify the effects of the explanatory variables on the explanatory variables, data was generated for the variables collected by the World Bank and the Kosovo Statistical Agency. The results of analysis (OLS robust) show is performed with two models.
Two models, OLSR1 and OLSR2, were developed to analyze the impact of independent variables on GDP and agriculture. OLSR1 found agriculture_land and government expenditure positively affect GDP, while OLSR2 found GDP positively affects agriculture_land, while inflation has a negative impact. The negative coefficients for FDI, interest rate, and government expenditure in OLSR2 suggest they negatively impact agriculture_land but are not significant. The results have important implications for policymakers in Kosovo, who aiming to attract more FDI and boost economic development.
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