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The Role Of The Market And The State In The Management Of Limited Resources: Theoretical Foundations, Empirical Evidence And Policy Implications – The Case Of North Macedonia

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  • Trenovski, Borce

Abstract

This paper examines the enduring debate on the optimal balance between market mechanisms and state intervention in the allocation of limited resources, with a particular focus on North Macedonia as a small, open economy with a fixed exchange rate. Rather than offering a comprehensive theoretical survey, the paper synthesises findings from a series of the author's empirical studies covering macroeconomic policy effectiveness, public spending efficiency, fiscal transparency, inequality, local government finance, and monetary policy communication. The findings consistently suggest that neither pure market fundamentalism nor maximalist state intervention provides an adequate response to the structural challenges of a transition economy. What is required is an intelligent, evidence-based coordination of policies calibrated to the specific institutional context.

Suggested Citation

  • Trenovski, Borce, 2026. "The Role Of The Market And The State In The Management Of Limited Resources: Theoretical Foundations, Empirical Evidence And Policy Implications – The Case Of North Macedonia," MPRA Paper 129157, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:129157
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    References listed on IDEAS

    as
    1. Anita Ciunova-Shuleska & Nikolina Palamidovska-Sterjadovska & Tanja Jakimova & Borce Trenovski, 2025. "Understanding Monetary Policy Communication in a Small and Open Economy Under an Exchange Rate Anchor: The Case of North Macedonia," Eastern European Economics, Taylor & Francis Journals, vol. 63(2), pages 204-236, March.
    2. Ivana Velkovska & Borce Trenovski, 2023. "Economic growth or social expenditure: what is more effective in decreasing poverty and income inequality in the EU - a panel VAR approach," Public Sector Economics, Institute of Public Finance, vol. 47(1), pages 111-142.
    3. Biljana Tashevska & Borce Trenovski & Marija Trpkova - Nestorovska, 2020. "The Government Revenue–Expenditure Nexus in Southeast Europe: A Bootstrap Panel Granger-Causality Approach," Eastern European Economics, Taylor & Francis Journals, vol. 58(4), pages 309-326, July.
    4. Vladimir Filipovski & Taki Fiti & Borce Trenovski, 2016. "Efficiency of the Fiscal Policy and the Fiscal Multipliers – The Case of the Republic of Macedonia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 3-23.
    5. Goran Petrevski & Borce Trenovski & Biljana Tashevska, 2019. "The effectiveness of fiscal and monetary policies in a small open economy – the case of Macedonia," Post-Communist Economies, Taylor & Francis Journals, vol. 31(6), pages 805-821, November.
    6. Borce Trenovski & Biljana Tashevska, 2015. "Fiscal or monetary dominance in a small, open economy with fixed exchange rate – the case of the Republic of Macedonia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 33(1), pages 125-145.
    7. Biljana Tashevska & Borce Trenovski & Marija Trpkova - Nestorovska, 2020. "The Government Revenue–Expenditure Nexus in Southeast Europe: A Bootstrap Panel Granger-Causality Approach," Eastern European Economics, Taylor & Francis Journals, vol. 58(4), pages 309-326, July.
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    Keywords

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    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • H1 - Public Economics - - Structure and Scope of Government
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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