The Impact of the Information Network on the Annual Growth of Foreign Direct Investments in Kosovo: Econometric Approach

Abstract

Companies increase their interest to invest in foreign countries when they are saturated with positive information in social networks, newspapers, magazines, friends and trusted partners.

The purpose of the study/ is to analyze the impact and connection of the information network (Conferences and seminars CO, Media resources MR, Electronic resources ER, Personal visit to Kosovo PVK, Personal resources PR,) in the annual growth of Foreign Direct Investments (FDI). in Kosovo. The methodology of the study / a quantitative approach was used with the collection of primary data through a structured questionnaire, one of 148 non-randomly selected companies. The method of analysis of multiple Linear Regression and OLS Model is suitable for empirical evaluation of enlightened hypotheses. For the validity of the data, tests were used, the Alpha Cronbach reliability test (a), Pearson Correlation Test, Chi-Square Test Statistics, Leven's Test and Tests of Between-Subjects Effects. Study findings/ Hypothesis H1 results in 4 out of 6 variables with positive coefficients (Personal resources 1.508; Media resources .450; electronic resources 1.784) and with not all significant p-values (Personal resources p-value = .009; Media sources p-value = .531; electronic sources p-value = .001). While the last two variables have negative coefficients (Personal visit to Kosovo -1.479; Conferences and seminars -2.046) and statistically significant (p=value = .004 and p value =.007). In the second Hypothesis, the relationship between the variables results in a low correlation. The research encourages further research to identify other variables of the information network. Practical Implications/ Policymakers can use these findings to support the implementation of policies aimed at increasing spending on the information network infrastructure of foreign governments for Kosovo. Originality/ To the author's knowledge, there has not been any in-depth academic study that focuses on the country promotion information network for sustainable FDI in Kosovo.