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
Recommended Citation
Muja, Armend; Dedaj, Zef; and Bunjaku, Kaltrina, "How does market size affect Kosovo economic competitiveness?" (2018). UBT International Conference. 294.
https://knowledgecenter.ubt-uni.net/conference/2018/all-events/294
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.