Abstract
The present study aims to analyse the factors that determine the economic efficiency and optimal models of forestry financing in the context of the current legal framework. The article discusses the critical importance of forestry for global environmental sustainability and economic development. It is determined that economic efficiency in this area is to achieve the maximum economic result while minimizing costs and making optimal use of resources. The main indicators of economic efficiency are the productivity of forest resources, which depends on the ability to maintain and restore forest plantations, as well as on cost optimization, including operating costs and investments in modern technologies. Economic efficiency is also determined by financial results, including revenues from the sale of forest products and profitability of enterprises. An important aspect was the consideration of environmental and social aspects, such as the impact of forestry on ecosystems and employment. The article emphasized the role of innovative technologies, such as geographic information systems and remote sensing, in improving the efficiency of forest management. The article analyses the impact of access to financial resources, level of technological development, management approaches, legislative framework, environmental sustainability and market conditions on the economic efficiency of forestry in Kosovo. As a result, recommendations were made to improve the economic efficiency of forestry, including increasing financial support, attracting international investment, improving the legal framework and developing international cooperation. Implementation of these measures will contribute to the conservation and efficient use of forest resources, ensuring economic stability and environmental safety of the country