The Impact of Fiscal Policy to the Kosovo Economical Development

The aim of this study is definition and finding of fiscal politics in the function of thedevelopment of our economy in this transition phase as well as identification of fiscal measures tooverpass the existing difficulties within future development framework of the country. The papercontains very important data regarding the level of economic charges with taxes, comparison of fiscalcharge of some important economies of Europe and world with fiscal charges of our economy.General conclusion from this paper results on that the fiscal system constructed to our country and theleaded fiscal politics should be based on the market economy and to implement modern concepts oftaxation which have to be in the full compliance with the rules of European Union and best advancedinternational standards

The status of Kosova debated: the 1967–1974 internal constitutional and political debates in Kosova

The 1968-74 period is a very important time in the history of the former Yugoslavia. In addition to ground-breaking political, social, economic and cultural changes, legal, ethnic and constitutional changes were at the forefront of developments in the federation. This thesis examines the currents of political debate among intellectuals, workers, party activists and politicians in Kosova, an autonomous province of Yugoslavia, prior and during this period. It is important to consider such debates, which in many instances penetrated deep into the ideology and political thought of the system and the party, sometimes even questioning the existing system. Only by considering such developments can one understand why Yugoslavia was perceived as the most liberal society amongst the countries of the communist block, and why such intense debate was allowed in Kosova, a small and not especially important unit of the federation. This thesis emphasises the role of these debates in the internal and external political perception of Kosova and the Albanian population regarding their constitutional place in the body politic of Yugoslavia; it also explores the impact of these debates on the constitutional change that marked this period. Using interviews, original archive material of new states that emerged from Yugoslavia, documents and other primary sources, this thesis suggests that Yugoslav communism, despite its internal problems, fostered a relatively free society. Based on the authoritarian regime of Tito, its sole and powerful leader, Yugoslav communism underwent changes in response to an ideological rift with the Soviet Union and a loose association with the Western world, which viewed Yugoslavia as a potential ally against the challenge from the formidable Eastern Block. The thesis also suggests that political changes from the 1968-74 period, although not satisfying everyone and especially ethnic-based political demands, worked as a temporary measure that unlocked further political potential. However, it is argued that such changes could have not worked in the long term in view of the substantial number of problems that the communist state never truly resolved

Competition policy in the Western Balkan countries

Purpose: In this paper, we lay out the analysis and provide an overview of the functions carried out by the national competition authorities in the Western Balkan countries and demonstrate their compliance with EU rules. We deal with the level of implementation of competition rules on prohibited agreements, abuse of dominant position, notification of concentration and state aid. Design/Methodology/Approach: We provide an overview of the stage these countries have arrived at in fulfilling their obligation on competition issues based on the Stabilisation and Association Agreement, which is a step forward for EU integration. We do this by carrying out a comparative analysis of the data collected from both primary and secondary sources, in order to demonstrate the current situation on competition in the Western Balkan countries and determine the most appropriate means to build strong and efficient National Competition Authorities. Findings: Findings show that competition in Balkan countries is still in a phase of development and more needs to be done in order to create an adequate competition regime. Practical Implications: We propose measures in order to ensure the effective implementation of the law on the protection of competition and the market economy. Originality/Value: When going through a phase of transformation, political change and integration, it is important to refer to other experiences, especially when trying to form part of the EU integration.peer-reviewe

Property tax and local finance of Kosovo - an overview

Purpose: In this article, we lay out the results of an analysis of the role of property tax regime in the local finance of Kosovo and highlight the current advantages and weaknesses. Design/Methodology/Approach: We do this by carrying out an analysis of the legislation in force, which regulates financial issues at the central and local levels, the functioning of property tax, and other financial implications for municipalities. In doing this we review the level of dependence of municipalities on central government, grants and their share, as well as other issues which have an impact on fiscal decentralization. We also analyse tax system and its evolution, the participation of tax categories and municipality tax in central and local budgets and give specific accentuation to property taxation, role in the taxation system and local finances. Moreover, we present the institutional structures and their competencies, relationship between central and local institutions. Findings: The current situation and system in place leaves much to be desired and property taxes may have more potential as a revenue source for municipalities. Practical Implications: This article shows the importance for municipalities to find a means to self-finance through their own sources. Originality/Value: We define needs for strengthening the Own Source Revenues (OSR), taking strong and coordinated steps to improve the management and collection of OSRs in general and property tax in particular.peer-reviewe

UČINAK PROMJENA POREZA NA DODANU VRIJEDNOST NA FISKALNU STABILNOST KOSOVA

The main goal of this paper is to analyse the effect of the change in tax rates for VAT for certain categories of goods on the fiscal stability of Kosovo. In Kosovo, VAT has been applied since 2001 and is an indirect tax on consumption that is the principal source of revenue to the state budget. The importance of this research paper is its focus on whether the changes made to the VAT rates in September 2015 have had positive or negative effects on some product prices, increasing or decreasing the state budget and the impact on the development of economic indicators expressed through GDP. The methodology of the paper is based on the comparative analysis of the data using both primary and secondary sources. The econometric model includes two variables and their relationships, independent variables, such as VAT, and dependent variables, like GDP. Through the econometric model and linear regression analysis for the period 2013-2016, the hypotheses have been tested with STATA application/software to calculate the impact of changes in the tax rate for VAT on the budget, economic growth and economic development. The results of the analysis show that the VAT reduction from 16% to 8% for basic products and the increase in VAT from 16% to 18% on luxury products had a positive effect on budget revenues and growth of GDP of Kosovo.Glavni cilj ovog rada je analizirati učinak promjene stopa PDV-a za određene kategorije robe na fi skalnu stabilnost Kosova. PDV na Kosovu je u primjeni od 2001. godine i neizravni je porez na potrošnju koji donosi glavni prihod državnom proračunu. Važnost ovog istraživačkog rada usmjerena je na to jesu li promjene u stopama PDV-a u rujnu 2015. godine imale pozitivne ili negativne utjecaje na neke cijene proizvoda, povećavajući ili smanjujući prihode te kako je to utjecalo na kretanje ekonomskih pokazatelja iskazanih kroz BDP. Metodologija rada temelji se na usporednoj analizi podataka iz primarnih i sekundarnih izvora. Ekonometrijski model uključuje dvije varijable i njihove odnose, (nezavisna varijabla - PDV i zavisna varijabla – BDP). Kroz ekonometrijski model i linearnu regresijsku analizu za razdoblje 2013.-2016., hipoteze su testirane pomoću STATA kako bi se utvrdio utjecaj promjena stope PDV-a na proračun, gospodarski rast i ekonomski razvoj. Rezultati analize pokazuju da je smanjenje PDV-a sa 16% na 8% za osnovne proizvode i povećanje PDV-a sa 16% na 18% na luksuzne proizvode, imao pozitivan učinak na prihode i rast BDP-a Kosova

ECONOMIC AND DEVELOPMENT GROWTH-WESTERN BALKAN CASE

Economic development and growth were and they are still a topic for discussion among economists, creators and bearers of economic policies, experts and media. In this study paper are touched some of the basic matters of economic development and growth, their measurement, factors influencing in development and economic growth and their reflection in the life standard of different countries of the world. Furthermore a special emphasis have western Balkan countries which after 2000 have written down insufficient trends of economic growth, investment growth, consumption and in creation of new jobs. Certainly, in economic development and growth have impact many other factors such as: historical, geographical, demographic, social, cultural and many other factors, therefore national economies (dependently from their size) are very complex and heterogenic communities and by creators of the economic policies needs their adjustments and structuring in that way that the bearers of decision-makers to adopt adequate policies at the macro and micro- economic level

Level of Development and Pretection of Economic Competition in Kosovo-Case Study Gjilan Region

This paper investigates development and protection of economic competition in Kosovo focusing on the analysis of the level of competition in the Gjilan region. The paper deals with the legislative aspect of competition, the sensitive sectors (banks, insurance, gas stations and pharmacies) where the competitions is damaged and finally are presented the measures on improvement based on the EU practices. Like other economies in transition, the economy in Kosovo the activity for protection of competition is faced with many challenges. Moreover, these challenges result from the fact that Kosovo was the last country in South-eastern Europe to start implementing the principles of a free market economy after 1999. Through a case study, it is attempted to give a realistic picture of the level of competition development, where competition is undermined, general business knowledge about the functioning and enforcement of the law on competition protection, and concrete measures to be taken in order for competition to function based on the rules of the market economy

Financial integration, banking supervision and sustainability of the Western Balkan countries

Purpose: This paper examines the need of financial integration of Western Balkan countries as the main indicator of the region’s economic growth. Design/Methodology/Approach: We provide an overview in order to explain what the financial system in the region is. Primarily we concentrate in the banking sector and the nonperforming loans in the region. They require attention and standardization of regulatory classification. By establishing a regional platform it would be of additional value and would help overcome the limited visibility in some of the countries. Findings: Currently the challenges for financial stability in the Western Balkan area comprise non-performing loans, low capital adequacy and moderate growth of credit in the economy. The banking sector is reducing the debt due to required financial stability measures of the European banking authorities. As these countries integrate their financial institutions and markets into the European financial system, on the path towards harmonization of national and European legislation, cooperation between financial entities in the Western Balkans becomes very important. The Western Balkan countries are in a different stage of development of banking sustainability and supervision and because of that there is a need for more integration with the European Banks and the respective regulators to ensure an adequate banking regime. Practical Implications: The article highlights the fact that Western Balkan countries need to intensify their reforms to build banking sustainability in order to meet the criteria for EU membership. Originality/Value: With this article we show that the Western Balkan countries in their integration processes must first align their local and European legislation and requirements.peer-reviewe

Impact of Change in VAT in Kosovo and his Effect in Economic Development (2013-2016)

The paper tries to analyze the effect of the change of tax rates for VAT for certain categories of goods in budget revenues and economic development of Kosovo. VAT in Kosovo is applied since 2001 and is indirect tax on consumption that brings the main revenue to the state budget. Therefore, the research focuses on whether the changes made to the VAT rates in September 2015 have had its increasing effects or decreases in some products' prices, increasing or decreasing their budgets and with this impact on development economic indicators expressed through the GDP. Through the econometric model and regression analysis for the period 2013-2016, is evaluate the impact of VAT on economic growth and development