Why is the social accounting matrix important for the Republic of Macedonia

Abstract

Economic planning has a key role in achieving sustainable economic development and needs proper tool for relevant quantitative analysis. Social accounting matrix (SAM) is such a tool that supports quantitative and qualitative policy-analysis. Hence, development planning methodology is of highest importance for the organization of efficient development planning system in the Republic of Macedonia. As a result, the social accounting matrix (SAM) for Macedonia (non-existent at the moment) will be a tool that provides solid support to scientifically based economic analysis and assessment of the current situation and future development. As such, it organizes the information on the economic, social and environmental structure of an economy in a certain period of time; provides schematic presentation of incomes and outlays in the economic system; and forms statistical foundations for macroeconomic models building.