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The Role Of The Foreign Capital In The Integration Process Of Republic Of Macedonia

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  • M. Sc. Diana Boskovska

    ()
    (Institute of Economics, Skopje)

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    Abstract

    Foreign capital has significant role for every national economy, regardless of its level of development. For the developed countries it is necessary to support sustainable development. For the developing countries, it’s used to increase accumulation and rate of investments to create conditions for more intensive economic growth. For the transition countries, it’s useful to carry out the reforms and cross to open economy, to cross the past long term problems and to create conditions for stable and continuous growth of GDP, as well as integration in world economy. In accordance with low level of accumulation and rate of development, Macedonia as a transition country has a very big need for foreign capital. When we talk about the foreign capital and its need and significance for the Macedonian economy, on the first place we have in mind the foreign direct investments, that result by the great number of externalizes produced by FDI for the national economy. But, also credit and loan as traditional form of transfer of capital in international economic relations, it will be useful for the growth only if it is at the reasonable level (in regard of the national external debt) from one side, and if its use in the development of a certain economy is efficient, from other side.

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    Bibliographic Info

    Article provided by Academy of Economic Studies - Bucharest, Romania in its journal The AMFITEATRU ECONOMIC journal.

    Volume (Year): 8 (2006)
    Issue (Month): 19 (February)
    Pages: 114-121

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    Handle: RePEc:aes:amfeco:v:8:y:2006:i:19:p:114-121

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    Keywords: Development of the national economy; Foreign capital; Credits and loans; Foreign direct investments.;

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