Faculty of Economics
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Item type:Publication, Digital Transformation in Terms of Improving the Performance of Companies in North Macedonia(Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, 2025-12)Antikj, Bojana - Some of the metrics are blocked by yourconsent settings
Item type:Publication, The Impact of Political Institutions on Economic Growth in Post-Transition Europe(Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, 2025-12); ; Bojadjieva, Daniela - Some of the metrics are blocked by yourconsent settings
Item type:Publication, The Impact of Remittances on Domestic Investment and Consumption Expenditures: The Case of North Macedonia(Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, 2025-12) - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Quantifying FDI’s Effects on GDP and Unemployment: Evidence from North Macedonia(Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, 2025-12); ; This paper examines the impact of foreign direct investment (FDI) on economic growth and unemployment in North Macedonia over the period 2014–2023. North Macedonia, a small post-transition economy with historically high unemployment, has actively pursued FDI as a development strategy. Using annual data and econometric analysis (stationarity tests, Pearson correlations, and OLS regressions in SPSS), we test four hypotheses about FDI’s relationship with GDP growth and unemployment. The results indicate a strong positive association between FDI inflows and real GDP growth and a significant negative association between FDI and the unemployment rate. In particular, higher FDI is correlated with faster GDP growth and lower unemployment, supporting the view that FDI can be a catalyst for economic development. Regression analysis further suggests that FDI has a statistically significant positive effect on GDP growth and a negative effect on unemployment, even when accounting for the growth-employment link. These findings confirm the optimistic hypothesis that FDI inflows drive macroeconomic improvements in North Macedonia. However, complementary factors (institutional quality, human capital) are crucial for maximizing FDI benefits. The paper concludes with policy implications, emphasizing the need to attract quality FDI and strengthen domestic absorptive capacities to ensure sustainable growth and job creation. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, The Role of Institutions in the Economic Growth of OECD Countries(2024-12); ; ; This paper analyses the role of institutional quality in determining the economic growth in the OECD countries from 1995 to 2021 concerning the institutional economics framework developed by North (1990) and further advanced by Rodrik (2000) and Acemoglu et al. (2005). Institutions are viewed as the formal and informal structures that regulate economic, political, and social activities and are considered the key to influencing economic performance through the minimisation of transaction costs, encouragement of innovation, and human capital development. The theoretical framework assumes that inclusive institutions foster sustained economic growth while extractive institutions stifle development by consolidating power and assets. This paper hypothesises that institutional quality positively influences economic growth in OECD countries. Using panel regression models and Employing the Fraser Institute’s Economic Freedom Index and the Heritage Foundation’s Index of Economic Freedom as measures of institutional quality, it examines how government size, property rights, regulation, and trade freedom affect growth. The findings reveal that institutional quality has a positive but varying impact on economic growth. In particular, small government, low taxes, and good monetary policy are positively related to higher growth rates. However, factors such as property rights and trade freedom have either weak or negative coefficients of correlation with growth. The results suggest that fiscal prudency and sound money supply policies are conducive to growth, but other institutional factors are not as straightforward in their influence on growth. This study is useful for policymakers who wish to improve economic growth through institutional change. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Fiscal decentralization and economic growth: Empirical evidence from European countries(Ss. Cyril and Methodius University in Skopje, Faculty of Economics-Skopje, 2024-05); <jats:p>In this paper we empirically investigate the relationship between fiscal decentralization and economic growth in the European countries, using panel dataset for 31 European countries, over the period 1972-2012. Our empirical results indicate that fiscal decentralization, quantitatively measured as the ratio of local government expenditures and revenues in general government expenditures and revenues has a favorable impact on economic growth in the European countries and also that revenue decentralization is shown to be more effective than expenditure decentralization in terms of stimulating economic growth. Further, our empirical results also suggest that the relationship between decentralization and economic growth is nonlinear, i.e. there is a certain optimal level of fiscal decentralization in terms of economic growth. This means that fiscal decentralization is expected to have a more pronounced positive impact on growth in less decentralized countries, while in more decentralized countries, a further increase in decentralization starts to hinder economic growth. In addition, the growth-enhancing effect of fiscal decentralization is even strongly confirmed in our subsample of advanced European countries, when long termed effect of decentralization was examined. Therefore, compared with our previous findings on the impact of fiscal decentralization on growth in Central and Eastern European countries, we find that fiscal decentralization has a different impact on economic growth in advanced European countries vis-à-vis Central and Eastern European countries, i.e., while it enhances growth in the former, it hindered growth in the latter.</jats:p> - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Corruption, Government Spending and Economic Growth: The Case of Central and Eastern Europe(Faculty of Economics-Skopje, Ss. Cyril and Methodius University in Skopje, 2023-12-15); ; - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Public Debt and Economic Growth – The Case of the Republic of North Macedonia(Faculty of Economics in East Sarajevo, 2021-06-15); ; ; Establishing and maintaining macroeconomic stability and fiscal discipline on the one hand, and stimulating economic activity, by enhancing the quality of public finances, increasing capital expenditures, and enhancing competitiveness in the Macedonian economy, on the other hand, are two opposing objectives that should be pursued by policymakers. Government borrowing, especially foreign borrowing, is an important source of fixed assets to cover public expenditure. However, the sustainability of public debt depends not only on the level of public debt, but also on the structure and successful implementation of policies to boost economic growth. Borrowing for a country with low economic potential and a constant shortage of capital is inevitable, especially external borrowing. However, the structure, purpose of the assets and their multiplier effect on the overall economy are the main criteria for assessing the impact of public debt on the economy. This paper attempts to apply the econometric VAR analysis to examine the correlation and causal relationship between public debt and economic growth rate of the case of the Republic of North Macedonia for the period 2002 - 2017. The variables to be analyzed are: GDP growth per capita, Public debt as a proportion of GDP, Gross Domestic Investment, Interest Rate and Government Spending. For the purpose of this analysis, a Granger causality test has been conducted. The test results indicate that the impact of public debt growth in North Macedonia does not have a significant impact on GDP growth per capita. The other test that is being conducted is a Vector Error Correction Model which shows that public debt is negatively correlated with short run and long run economic growth. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, E-COMMERCE IMPACT ON ECONOMIC GROWTH(Faculty of Economics - Skopje, Ss Cyril and Methodius University, 2020-11-14) - Some of the metrics are blocked by yourconsent settings
Item type:Publication, THE IMPACT OF HUMAN FREEDOMS ON ECONOMIC GROWTH(Faculty of Economics - Skopje, Ss Cyril and Methodius University, 2020-11-14); The impact of formal institutions, including rule of law, human rights, and civil liberties on economic growth has been in the focus of the latest research agenda of the new institutional economics due to the current pandemic of the Corona-19 virus. Some limitations are necessary to be imposed to address a pandemic, but this is a real risk of lasting deterioration in basic human freedoms. Increased surveillance, restrictions on free expression and information, and limits on public participation are becoming increasingly common. The present fear is that the authorities worldwide are using the current situation to repress human rights for political purposes. This paper aims to explore the effect of the overall institutional environment, understood as the concept of human freedom, on economic prosperity in different jurisdictions around the world. Human freedom is a general term for personal, civil, and economic freedom and therefore the interconnection with economic growth can be seen in both directions. In our analysis, we use the Human Freedom Index published by the Fraser Institute as a proxy for human freedom. Here, human freedom is understood as the absence of coercive constraint. The index is calculated based on 79 distinct indicators representing different aspects of personal and economic freedom. This analysis seeks to answer several questions. First, we are interested in examining whether there is empirical evidence about the causality between human freedoms and economic growth. Second, we are interested in whether human freedom has a positive impact on growth rates. And third, we are interested in examining the influence of other determinants on economic growth. To test the causality between human freedom and economic growth, we have conducted a Granger causality analysis. The empirical strategy for identification of the possible influence of human freedom to growth rates includes the development of ordinary least squares (OLS) panel regression models for selected economies of the world, or around 174 cross-section units (countries) in the period between 2008 and 2017.