THE RELATIONSHIP BETWEEN INSTITUTIONAL QUALITY AND KOSOVAR CUSTOMERS' ATTITUDES TOWARD LOCAL GOODS.

Kosovo is working toward meeting the requirements to align politically and economically with the EU. The strengthening of institutional quality is a requirement for fostering economic activity, advancing general development, and harmonizing Kosovo's governmental policies with those of the European Union. Through the quality of the services they provide, state institutions increase their credibility in front of citizens. This research analyzes the correlation between the perception of Kosovar consumers regarding the credibility of the services of state institutions (mandated to control the quality of local products) and the reflection of this perception in the attitude of consumers towards the purchase of local products. The research's findings are based on a survey-based analysis of students' opinions. The findings show that the trustworthiness of Kosovo consumers in the work of institutions is quite low, and as a result, their preferences to buy relatively few local products are influenced by this perception. The research suggests that current government policies to boost the production activity of local companies should be focused not only on offering fiscal, financial and administrative incentives, but also to be accompanied by genuine reformation of state agencies, primarily those covering the quality infrastructure area. This is because quality institutional services contribute to increasing consumers' confidence in the quality of local products. [ABSTRACT FROM AUTHOR]