Kosova is a developing country which has a huge trade imbalance. In order to decrease the trade imbalance of Kosova, the Ministry of Trade and Industry has decided to establish free economic zones in the cities of Gjakova, Mitrovica and later Prizren. These economic zones were established under the Law Nr. 04/L-159 – on economic zones. This project will be specifically focused on the free economic zone of Gjakova.
Gjakova is a city in south-west of Kosovo with a very rich history in industrialization in the times of ex-Yugoslavia. Its previous industrialization and its geographical position have made it possible for Gjakova to be one of the free economic zones in Kosova. The purpose of this zone is to increase the number of foreign investments in Kosova, decrease the trade imbalance of Kosova by increasing exports, increase the number of jobs and income, concentrate businesses in one place only, and increase the competition in domestic and foreign markets.
According to research the previous potential in industrialization of Gjakova will not affect the developments in the present day free economic zone. The giant socially owned enterprises that used to exist in Gjakova will not be able to be revitalized because their facilities have suffered a lot of damages and their machines are stolen or completely damaged. An alternative to develop the free economic zone is to use the property of these enterprises for other business activities. This is where the role of the central government and municipal government are intertwined. The municipality of Gjakova does not own any of these enterprises, therefore if any business is interested in using these facilities they should buy them from the Kosovo Privatization Agency or request a long-term lease.
Polloshka, Bleta, "Fostering Economic Growth: The Establishment of the Free Economic Zone in Gjakova" (2015). Thesis. Rochester Institute of Technology. Accessed from
RIT/A.U.K - formerly American University in Kosovo