Arif Hoti


Kosovo is a young country with many acute problems from a political, economic, and social perspective. Its economy represents one of its many current struggles. Kosovo’s unemployment rate is extremely high (“Assessment of the Employment Strategy: the need for a concrete strategy,” 2013) and its trade deficit is enormous (“External Trade Statistis 2011,” 2012). Accordingly, most of the money in Kosovo leaves the country for imported goods from other countries. Therefore, the country’s economy is unable to benefit from the multiplier effect and thus loses the opportunity of creating new jobs within the country’s borders. Consequently, if the country shall make faster economic progress, then Kosovo must find a way to keep the money within its borders. By doing so, Kosovo’s economy will be able to benefit from the aforementioned multiplier effect and thus support the creation and development of domestic industries, which in turn will increase employment. However, how can Kosovo increase its exports and as a result of that improve its current tremendous trade deficit? After a thorough review of material regarding Kosovo’s economic sectors that may have a significant export and growth potential, it is worthwhile to note that the following three sectors have been mentioned repeatedly: natural resources (minerals and metals), land, and labor (USAID, 2013). However, continuous research suggests that out of these three vital sectors, it is Kosovo’s natural resources like coal and lead-zinc which appear to be the most promising sectors for exports. Therefore, this paper will search for the economic potential of Kosovo’s natural resource sectors and attempt to estimate their potential in monetary terms as well. As mentioned before, in addition to assessing the monetary value of the resources, this paper will also aim to analyze the export prospects of the particular endowments by actively searching for demand factors in countries and industries that might become important purchasers of such industrial goods.

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Senior Project

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Alicia English


AUK Honors Society


American University in Kosovo