“Comparison of the old and the new policy on supporting investment in the Republic of North Macedonia”

Abstract

In 2017 the authors of this paper created a Vector Error Correction Model to measure the impact of the Technological Development Industrial Zones (TDIZ) on attracting FDI in the country. TDIZ, as an exemption of the regular customs territory, enjoyed preferential treatment for foreign investors. The model confirmed the positive effect that TDIZ had upon the balance of payments; however the expected effect upon diminishing the high unemployment rate in the country was lacking. This paper is going to compare the latest revision of the policy on investment support in the country with the previous one.