Value chain analysis in the Republic of Macedonia

Abstract

The fragmentation of production processes and the international dispersion of tasks and activities within them have led to the emergence of borderless production systems, that create complex networks and which may be global, regional or span only between two countries. These systems are commonly referred to as global value chains (GVCs) and they are typically coordinated by transnational corporations (TNCs). Since Macedonia does not have official statistics about participation into the global value chains, this paper aims to analyze the opportunities and results of the inclusion into global value chains for the Macedonian economy though the policy of attraction of foreign direct investments. Some specifics are given for the inclusion of Macedonia into global value chains through regional cooperation of the Western Balkans countries.