Event Title

How does market size affect Kosovo economic competitiveness?

Session

Management, Business and Economics

Description

The size of the market affects productivity because large markets allow firms to exploit economies of scale. Traditionally, the markets available to firms have been constrained by national borders. In the era of globalization, international markets have become a substitute for domestic markets, especially for small countries. There is a vast empirical evidence that shows that trade openness is positively associated with more foreign direct investment and economic growth. Some recent research has cast doubt on the robustness of this relationship. A general sense among small countries is that trade and free regional markets have a positive effect on growth. Exports can be thought of as substitute for domestic demand in determining the size of the market for the firms of a country. By including both domestic and regional markets in the market, firms in small countries have been able to boost their attractiveness and competitiveness. The purpose of this paper is to analyse the relationship between market size, investments and growth in Kosovo. The study employs both quantitative and qualitative methods and is based on competitiveness conceptual framework.

Keywords:

Market size, economic competitiveness, firms, investments. Growth

Session Chair

Ylber Limani

Session Co-Chair

Arta Mulliqi

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-69-1

Location

Pristina, Kosovo

Start Date

27-10-2018 10:45 AM

End Date

27-10-2018 12:15 PM

DOI

10.33107/ubt-ic.2018.294

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Oct 27th, 10:45 AM Oct 27th, 12:15 PM

How does market size affect Kosovo economic competitiveness?

Pristina, Kosovo

The size of the market affects productivity because large markets allow firms to exploit economies of scale. Traditionally, the markets available to firms have been constrained by national borders. In the era of globalization, international markets have become a substitute for domestic markets, especially for small countries. There is a vast empirical evidence that shows that trade openness is positively associated with more foreign direct investment and economic growth. Some recent research has cast doubt on the robustness of this relationship. A general sense among small countries is that trade and free regional markets have a positive effect on growth. Exports can be thought of as substitute for domestic demand in determining the size of the market for the firms of a country. By including both domestic and regional markets in the market, firms in small countries have been able to boost their attractiveness and competitiveness. The purpose of this paper is to analyse the relationship between market size, investments and growth in Kosovo. The study employs both quantitative and qualitative methods and is based on competitiveness conceptual framework.