The Econometric Approach of the Impact of Public Investment in the Road- Infrastructure in the Economic Growth of Kosovo

Authors

Abstract

Economic growth and public investments are considered the most challenging problems faced by most countries around the world, including Kosovo. Various assumptions have been made that better and higher-quality transport is essential for the country's economic development. This study aims to analyze the relationship and the impact of public investments in road infrastructure on Kosovo's economic growth taking into analysis also other macroeconomics aggregates such as Consumption, Investment, Exports, and Imports. Two important aspects have been addressed within the extensive literature review, namely theoretical analysis of different studies elaborating on elements regarding infrastructure in general,  such as social and economic infrastructure, and road infrastructure in particular. To analyze the impact of public investments in road infrastructure and other macroeconomics aggregates over Kosovo's economic growth, the econometric multiple regression model Ordinary Least Squares (OLS), the Pearson Correlation, and the Test for heteroskedasticity have been applied. The data used is secondary data obtain from the World Bank Indicators, Kosovo Agency of Statistics, and the Official Gazette of the Republic of Kosovo. All these models are tested with the STATA software program. Based on regression analysis, we can conclude that public investments in road infrastructure for Kosovo's economic growth are non-significant as their effect is manifested in the long run, but all the other independent variables from the OLS model are significant and impact the GDP growth of Kosovo. The study comes with some other conclusions, suggestions and opens paths for future researchers.

Author Biography

Besime Fekri ZIBERI, Teaching Professor Faculty of Economics AAB University Kosovo

Besime Ziberi, is teaching professor at Faculty of Economics, AAB College, Kosovo. She completed her Bachelor’s degree in 2009 with honors degree in Business Administration and postgraduate studies in the field of Finance and Accounting at Faculty of Business and Economics, South East European University, Tetovo, Republic of North Macedonia. In 2016 she has completed her Doctoral studies in Economics from the Faculty of Business and Economics, at the South East European University (SEEU) in Republic of North Macedonia. From 2009-2017 she has worked in Faculty of Business and Economics as Student academic advisor. From 2017 till present she is Professor Assistant Doctor in Faculty of Economics AAB College Kosovo. She is teaching in bachelor and master studies. The subject she covers in bachelor are Macroeconomics, Advanced Macroeconomics, Public Finance, Financial Market and Institutions and in Master studies she cover the subject Research Methodology and Research Methods both in Faculty of Economics and Faculty of Computer Sciences at AAB College, Kosovo. She also has had under her supervision more than 30 master students that graduated and ten more in process. She also serve as consultant for a local project.

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Published

2021-03-23

How to Cite

ZIBERI, B. F., MIFTARI, F., & OMAJ, L. (2021). The Econometric Approach of the Impact of Public Investment in the Road- Infrastructure in the Economic Growth of Kosovo. Management Dynamics in the Knowledge Economy, 9(1), 5–16. Retrieved from https://www.managementdynamics.ro/index.php/journal/article/view/410

Issue

Vol. 9 No. 1 (2021): Issue 31

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Articles

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