scholarly journals Do foreign direct investments accelerate economic growth? The case of the Republic of Macedonia

2016 ◽  
Vol 1 (1) ◽  
pp. 71 ◽  
Author(s):  
Selma Kurtishi Kastrati ◽  
Veland Ramadani ◽  
Léo Paul Dana ◽  
Vanessa Ratten
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investments ◽  
Republic Of Macedonia ◽  
The Republic

scholarly journals FOREIGN INVESTMENTS AS DEVELOPMENT FACTOR FOR OVERCOMING ECONOMIC STAGNATION IN THE REPUBLIC OF MACEDONIA

2013 ◽  
Vol 6 (2) ◽  
Author(s):  
Nada Petrusheva ◽  
Aleksandar Nikolovski
Keyword(s):  
Economic Growth ◽  
Foreign Capital ◽  
Added Value ◽  
Living Standard ◽  
Foreign Direct Investments ◽  
Western Balkans ◽  
Republic Of Macedonia ◽  
Economic Stagnation ◽  
The Republic

Amongst economists there is a broad consensus that in order to overcome economic stagnation the economic growth model should be more directed towards increasing investments and export and less reliant on consumption. The stable commitment towards improving the business ambient, the implementation of structural reforms in the field of competitiveness, the export sector as well as investments in infrastructure and education are the fundamental prerequisites to be realized for the opening of perspectives in the overall social development of the countries in the Western Balkans, including the Republic of Macedonia. The dominant driving force of economic growth – investments (foreign and domestic) have not been sufficiently implemented so that structural economic problems such as the low GDP growth rate, unsatisfactory export, unfavourable industrial structure have been present during the entire periodsince the independence of the Republic of Macedonia. Unlike other countries in Middle and Eastern Europe such as Poland, the Czech Republic and Slovakia in which foreign capital was steered towards manufacturing higher added value products, in the Republic of Macedonia investment entered mainly the trade and the banking industry, and quite less in manufacturing.Lacking own significant capacities for considerable increase of the gross-investment rate, assets sources for investments must be found in foreign accumulation, particularly via foreign direct investments so as not to increase the degree indebting the country. The global economic and financial crisis which spread over Europe in the last years has motivated the countries in the Western Balkans, including the Republic of Macedonia, to engage into a more active and more aggressive attraction of foreign capital. Foreign direct investments are considered the highest economic priority for long-term development, whereas the benefits to the national economy are multiple and influence the reduction of unemployment, increase of export, inflow of new technology, knowledge and skills, as well as improvement of the population’s living standard. However, despite the commitment, reforms and activities undertaken to attract FDI, the countries of the Western Balkans are facing remarks from investors for having an insufficiently reformed judicial system, bureaucratic issues, inefficient public administration and corruption. Therefore, it is essential to work continually on improving the macroeconomic environment and implement a long-term strategy to attract FDI through active policies.

scholarly journals THE IMPACT AND THE ROLE OF THE SMALL AND MEDIUM ENTERPRISES ON THE EMPLOYMENT IN THE REPUBLIC OF MACEDONIA

2018 ◽  
Vol 28 (1) ◽  
pp. 105-110
Author(s):  
Snezana Bardarova ◽  
Marija Magdincheva-Shopova ◽  
Monika Markovska ◽  
Bozhidar Milenkovski
Keyword(s):  
Economic Growth ◽  
Small And Medium Enterprises ◽  
High Rate ◽  
Small Enterprise ◽  
Small Enterprises ◽  
Republic Of Macedonia ◽  
Area Of Interest ◽  
The Republic ◽  
Medium Enterprises ◽  
The Impact

Current developments in the global and national economics point to a number of problems faced by real entities in the real sector, and as a special area of interest for the scientific public there is a need to provide conditions for the smooth running of the reproduction processes in the enterprise and the realization the positive results of the operation. Enterprises are drivers of inclusive economic growth in the Republic of Macedonia and in creating productive and sustainable jobs.The new conception of the small enterprise as a carrier and engine of economic development is quite persuasive with its economic logic and reaffirms the small enterprise as a significant economic sector. The activities within the small enterprises are aimed at intensifying the results of the work by achieving a balance between objective possibilities and good working principles. The monitoring of the small enterprise, through the prism of its influence on economic growth and development, rejects the traditional view for small enterprises as security guards.The SME sector is a driver of inclusive economic growth in Macedonia and the creation of sustainable jobs increasing productivity. It also does not agree with the notion that small enterprises are economically inefficient organisms.With the third technological revolution in the countries with a developed market economy, the domination of the so-called. small economy, that is, the sector of small and medium enterprises. Today, small enterprises have a growing number of supporters who believe that small enterprises are carriers of innovation and entrepreneurship and are able to react quickly to changes in the environment. For years, the Republic of Macedonia has faced a high rate (29%, June 2013) of general unemployment, which remains a key challenge for stabilizing the economic and social development of the country. The subject of research in this paper is focused on conducting analysis of the active enterprises in the Republic of Macedonia by size, by sector and by number of employees, as well as analysis of the activity of the population and employment by sectors and by type of ownership of the enterprise in the period from 2013-2017.

scholarly journals Wages Inequality in the Republic of Macedonia in a Post Crisis Period

ECONOMICS ◽  
2015 ◽  
Vol 3 (2) ◽  
pp. 19-26
Author(s):  
Predrag Trpeski
Keyword(s):  
Economic Growth ◽  
Economic Crisis ◽  
Gini Index ◽  
Eu Member States ◽  
Republic Of Macedonia ◽  
Eu Membership ◽  
World Economic ◽  
The Republic ◽  
The Lorenz Curve ◽  
World Economic Crisis

Abstract The aim of this paper is to show the distribution of net wages in the Republic of Macedonia and whether the great world economic crisis of 2008 has had an impact on the inequality in the distribution of wages. In this paper it is analyzed the level of inequality in the distribution of wages in Macedonia in 2008 as a year when the economic crisis started in the last quarter, in 2012 as the year in which GDP still has had a negative rate of economic growth and in 2014, when the economy maintained positive economic growth. In the three selected years the analysis is based on examination of the inequality in the distribution of the paid net wages. In the paper, the analysis of inequality in the distribution of net wages is based on determining the distribution of frequencies, constructing the Lorenz curve and the Gini index calculation. The results show that there is a quite expressed inequality in the distribution of net wages in Macedonia, whereas the estimated Gini index is 27.98 in 2008, 26.76 in 2012 and 25.88 in 2014. Thus, it should be kept in mind that the inequality in the distribution of total income is higher and in the analyzed period the Gini index is greater than 40. This points the fact that Macedonia has the highest inequality in the distribution of income compared to all EU member states and candidate countries for EU membership.

scholarly journals An Empirical Analysis of Stock Market Development and Economic Growth: The Case of Macedonia

2016 ◽  
Vol 11 (2) ◽  
pp. 71-81 ◽  
Author(s):  
Darko Lazarov ◽  
Emilija Miteva-Kacarski ◽  
Krume Nikoloski
Keyword(s):  
Economic Growth ◽  
Comparative Analysis ◽  
Stock Market ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Market Development ◽  
Stock Market Development ◽  
Republic Of Macedonia ◽  
The Republic

Abstract This paper has two goals. The first goal is to investigate the influence of stock market development on economic growth for a group of 14 transition economies from the Central and South-East European (CSEE) region in the period 2002-2012, while the second is to analyze the main characteristics and specificities of the stock market in the Republic of Macedonia. To fulfil the first goal, we apply panel regression models (fixed and random effects) and a dynamic panel model (Generalized Method of Moments – GMM), while we use a single country approach and comparative analysis to examine the main characteristics of the Macedonian stock market. The estimated results indicate that stock market development is positive and significantly correlated with economic growth. Additionally, the comparative analysis of the stock market in the Republic of Macedonia suggests that the Macedonian stock market is still underdeveloped and faces a number of challenges before it can enter a new phase of development after the negative impact of the global financial crisis. Those challenges include capital market regional integration and the harmonization of legal and institutional frameworks such as bankruptcy procedures, accounting and reporting standards, public sector regulatory bodies, corporate governance and a liberalized trade regime.

scholarly journals EXPORTS, FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH IN THE REPUBLIC OF CROATIA // IZVOZ, INOZEMNA IZRAVNA ULAGANJA I EKONOMSKI RAST U REPUBLICI HRVATSKOJ

2017 ◽  
Vol 14 (2) ◽  
Author(s):  
Sanja Franc
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Growth And Development ◽  
Direct Investment ◽  
Recipient Country ◽  
Free Movement ◽  
Foreign Direct Investments ◽  
The Republic ◽  
Free Movement Of Capital

Economic growth, export and foreign direct investment have been an important research subject for many years. The argument about the role of export as one of the main deterministic factors of economic growth has its roots in classical trade theories. Furthermore, according to the neoclassical theory, long-term economic growth is the consequence of an increase in exogenous factors such as increased labor force or technological progress. The export-led growth strategy of a country aims to provide incentives for the export of goods through various economic policy measures. Its goal is to increase the production of goods and services that can compete in the global market, use advanced technology and provide foreign exchange revenue needed to import capital goods. The emergence of new theoretical models that emphasize the importance of endogenous factors for economic growth has enabled the inclusion of foreign direct investment into analysis as one of growth determinants. Free movement of capital in the past was recorded only in a few countries and several sectors, and usually the capital flows followed the trade flows. Today there is a noticeable global trend of proliferation of free movement of capital. What is more, foreign direct investments have gained importance as desirable source of capital, especially in developing countries among which a strong competition for attracting such investments has developed. Foreign direct investments represent a specific form of capital because they imply a long-term interest as well as a certain share of ownership that ensures voting rights and participation in the management of the company. There is a vast literature dealing with the effects of foreign direct investment on the recipient country. It is generally accepted that these effects positively contribute to economic growth and development due to the inflow of fresh capital and spillover effects that depend on the absorption capacity of the recipient country. In conclusion, it is to be expected that liberalization of international trade and export performance, as well as the liberalization of capital movements and the inflow of foreign direct investment have a positive impact on the economic growth of a country. The aim of this paper is to examine the correlation between export, foreign direct investments and economic growth on the example of the Republic of Croatia. The conclusions of the research are of use in adopting appropriate policies and strategies for the growth and development of small open economies such as the Republic of Croatia.

EMPIRICAL ANALYSIS OF THE EFFECTS OF FDI ON THE ECONOMIC GROWTH CASE OF THE REPUBLIC OF MACEDONIA

2018 ◽  
Vol 28 (1) ◽  
pp. 111-116
Author(s):  
Liza Alili Sulejmani
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Causal Relationship ◽  
Unit Root ◽  
Series Data ◽  
Republic Of Macedonia ◽  
Long Run ◽  
Short Run ◽  
The Republic ◽  
The Impact

The importance of FDI on the economic growth of a country is widely accepted fact among the scholars and policymakers, beside of the existing debate regarding the strength of its impact and the level of the development of a country.In this regard, the main objective of this paper is to empirically determine the effects of FDI on the Macedonian economy, through the co-integration and VECM methodology. In addition, this study analyzes the impact of FDI in the short-run and long-run period in the Republic of Macedonia, utilizing quarterly time series data for the period 1998 – 2017. Moreover, time series are tested for unit root by employing the Augmented Dickey Fuller test, demonstrating that variables contain unit root in their level, while are stationary in their first difference.Secondly, Granger causality test is used in order to investigate the causal relationship among FDI and real GDP growth rate in Republic of Macedonia for 1998q1-2017q2, by suggesting unidirectional causal relationship among these variables.Last but not least, this study investigates the existence of significant relationship between FDI and economic growth in the context of the Macedonian economy, in both long – run and short – run time period.

Impact Of Insurance On Economic Growth: The Case Of Republic Of Macedonia

2012 ◽  
Vol 4 ◽  
Author(s):  
Jordan Kjosevski
Keyword(s):  
Economic Growth ◽  
Life Insurance ◽  
Insurance Sector ◽  
Republic Of Macedonia ◽  
Insurance Penetration ◽  
The Republic ◽  
And Control ◽  
The Impact ◽  
Determinants Of Economic Growth ◽  
Insurance Development

The purpose of this paper is to examine the impact of insurance and economic growth, with empirical analysis for the Republic of Macedonia. We apply multiple regression and control for other relevant determinants of economic growth. The analysis used data for the period 1995 - 2010. In order to solve the model in the analysis will use the technique of least squares, followed by analysis of variability in order to identify the effects of each variable. Insurance development is measured by insurance penetration (insurance premiums in percentage of GDP). We used three different insurance variables - life insurance, non-life insurance and total insurance penetration. According to our findings, insurance sector development positively and significantly affects economic growth. The results are confirmed in terms of non-life insurance, and, total insurance, while the results show that life insurance negatively affect economic growth.

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