Impact of global crisis on FDI in transition economies: with special reference to Ksovo

Abstract

Global crisis has negative effects on economies in transition. The crisis stemmed from a combination of 
unsustainable global macroeconomic imbalances, loose monetary policy and structural weaknesses in the 
financial system. The crisis originated in developed countries (specifically in the US subprime mortgage market) 
and then has spread to developing countries through a range of channels. In many transition countries the crisis 
has manifested itself terms of trade and investment links, including a drop in exports, remittances and foreign 
direct investments. Thus, this paper aims to reveal the issues of FDI and remittances and its impact on the 
transition economies, with special hint on economy of Kosovo.