FOREIGN DIRECT INVESTMENT AND THEIR IMPACT ON MACEDONIAN ECONOMY - International Scientific Journal Monte (ISJM)

KAJDAFE ADEMI¹, MUHAMED ADEMI²

Authors country of origin: North Macedonia^1/2
Institutional affiliation: ¹Public University of Tetovo, Economic Faculty, ²Freelancer

Abstract

Foreign Direct Investments are a very crucial factor in the economic development of a given developing country. Recently, according to the data issued by OECD, there is a down turning point in this indicator at the global level. In the case of Macedonia are taken several major investing countries and their investments are compared starting from 2010 to recently, the data are quarterly. Some countries have the so-called divestment procedure done more than others.

The paper attempts to answer the question of why this is the case. Like all of the other countries, Macedonia’s GDP is more dependent on consumption. The gross investments are the last component with a smaller proportion of the total GDP. Imports and exports co-integrate but they are not co-integrated with a coefficient close to one. Even though the main growth theory suggests that economic growth is dependent more on capital, human and soil recourses there is also proof that productivity is the main component. FDI are not well managed and surely the mother countries of these investments do not behave with full responsibility on implementing them. The methods used here are statistical and comparative.

Keywords: divestment, economic growth, FDI, Macedonian economy, co-integration

Volume 1.No.1(2018): April

ISSN 2661-2666 (Online) International Scientific Journal Monte (ISJM)
ISSN 2661-264X (Print)

DOI : 10.33807/monte.1.201904235

DOI URL: https://doi.org/10.33807/monte.1.201904235