UDC 330.15:332.142.6 DOI: 10.31548/forest/1.2024.109 Suggested Citation: Rexhepi, B.R., Rexhepi, F.G., Sadiku, M.K., & Dauti, B. (2024). Ecosystem services of forests and their economic valuation: Prospects for sustainable development. Ukrainian Journal of Forest and Wood Science, 14(4), 109-125. doi: 10.31548/forest/1.2024.109. * Corresponding author Ecosystem services of forests and their economic valuation: Prospects for sustainable development Burhan Reshat Rexhepi * Doctor of Economics, Professor UBT College 10000, 56 Rexhep Krasniqi Str., Pristina, Republic of Kosovo https://orcid.org/0000-0001-7703-491X Flutura Gagica Rexhepi Doctor of Pedagogy, Professor UBT College 10000, 56 Rexhep Krasniqi Str., Pristina, Republic of Kosovo https://orcid.org/0009-0000-6307-1154 Mejreme Krasniqi Sadiku Doctor of Economics, Professor KAF Institute 10000, 15 Nazim Gafurri Str., Pristina, Republic of Kosovo https://orcid.org/0009-0007-9663-4823 Bardhyl Dauti Doctor of Economics, Professor University of Tetova 1220, 1200 Ilinden Str., Tetova, Republic of North Macedonia https://orcid.org/0000-0001-8372-9443 Received: 10.10.2023; Revised: 31.01.2024; Accepted: 28.02.2024 Copyright © The Author(s)� This is an open access article distributed under the terms of the Creative Commons Attribution License 4�0 (https://creativecommons�org/licenses/by/4�0/) UKRAINIAN JOURNAL OF FOREST AND WOOD SCIENCE Journal homepage: https://forestscience.com.ua/en Ukrainian Journal of Forest and Wood Science, 15(1) Abstract. The relevance of the topic is justified by the diversity of unique natural ecosystem objects in the territories of Kosovo and North Macedonia, where forestry activities are traditional. The aim of the study is to analyse the current state of ecosystem services provided by forests in Kosovo and North Macedonia in the context of their assessment and development prospects. Several general scientific empirical and theoretical research methods were employed, including comparison, generalization, analysis, synthesis, and abstract-logical methods. The article characterizes the current state of forest resource utilization in Kosovo and North Macedonia, highlighting key issues in the management of forest lands, including those hindering the development of ecosystem