Fiscal Policies Applied in Kosovo and Their Impact in the Competitiveness in Kosovar Businesses

Skender Hasani


Fiscal policies play an important role in the economic development of a country. Finding more favourable fiscal policies allows not only raising the necessary monetary funds for the functioning of the state but also the distribution of budget revenues in different development projects which will have an important role in economic development and the development of conditions for operation of private businesses as a condition for a sustainable economical growth. While in the after war period in 1999 the goal of fiscal policy has been meeting the immediate needs for normal functioning of life in Kosovo today fiscal policies should be in place for a sustainable economic development which will be a guarantee for state operation thus creating a healthy climate not only for businesses but also for our population. Changes in the world and globalization have had an impact in having a strong competition between different economies, including the economies of most developed countries of the world. As all the economies of other countries so the Kosovo economy as a whole and businesses in particular are not immune to this competition but they daily face these competitiveness issues not only form the competition of regional and European countries, but also from businesses from all continents. The Kosovo economy and the one of all countries in transition faced many difficulties which have affected the development of local businesses and the competitiveness of those businesses compared to businesses in the region and beyond. Through this paper we analyzed fiscal policies that are applied in Kosovo from 1999 to 2014 and we measured the impact of these fiscal policies in the overall development of Kosovo businesses. Particular emphasis in this paper was put on the steps to be taken by the government and substantial reforms to be made in order to establish fiscal and commercial facilities which will affect the growth of local businesses, increase their competitiveness and with it the increase of employment and social welfare of the citizens as a strategic goal for Kosovo and its economy.

DOI: 10.5901/ajis.2015.v4n1s2p245

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Academic Journal of Interdisciplinary Studies ISSN 2281 3993(Print) ISSN 2281-4612(Online)

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