The Role of the Foreign Capital in the Integration Process of Republic of Macedonia
Author:M.Sc. Diana Boskovska
JEL:
DOI:
Keywords:Development of the national
economy;
• Foreign capital;
• Credits and loans;
• Foreign direct investments.
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.