INTERNATIONAL FINANCIAL POLICIES AND ECONOMIC DEVELOPMENT OF THE REPUBLIC OF NORTH MACEDONIA

Ljupco Stojcheski

Abstract


With the development of financial market and increased degree of international financial integration around the world, many countries especially developing countries are now trying to remove cross-border barrier and capital control, relaxing the policy on capital restrictions and deregulating domestic financial system. The international capital flow such as direct investment flows has huge contribution to influence the economic behavior of the countries positively. The development was associated with greatly increased interest by international asset holders in the emerging market economies to find trend toward the globalization of financial markets. The global financial markets can gradually create a virtuous circle in which developing and transitional economies strengthen the market discipline that enhances financial system soundness. Government interventions in the financial markets that promoted savings and the efficient allocation of capital are the central factor to the efficiency of financial markets. The Macedonian economy is in the process of growth as a result of the government policy for foreign direct investments. This policy and its system of functioning will be the subject of research in this article. Through the methods of analysis of primary and secondary data it will be shown the situation at the moment and recommendation for the future.


Keywords


economic growth, investments, financial flows, financial systems, capital

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References


Graham, J., Spaulding, R. (2011). Understanding Foreign Direct Investment (FDI). Retrieved from: http://www.orintonlawfirm.com/data/artikel/01-Understand%20FDI.pdf

Ministry of Finance. (2019). International Finance. Retrieved from: www.finance.gov.mk

National Bank of the North Macedonia. (2019). Foreign Direct Investments in the North Macedonia - country movements. Retrieved from: https://www.nbrm.mk/pocetna-en.nspx

Nefovski, S. (2007). Investment Policy - The Case of the North Macedonia. EURM: Skopje.

UNCTAD (2005). The World Investment Report 2005: R&D investments represent investment in development and research. Retrieved from: https://unctad.org/en/Docs/wir2005_en.pdf


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