The structure of GDP-indicator for economic model for development of Macedonian economy

Davcev, Ljupco and Ljubotenska, Ana (2012) The structure of GDP-indicator for economic model for development of Macedonian economy. ICEIRD 2012 Proceedings. pp. 186-194. ISSN 978-954-07-3346-3


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The global economy crisis confirmed the need for development of the production sector in Macedonia as key element for decreasing the trade deficit. The effects of the crisis show that Macedonia does not have economic structure capable for development without inflow of foreign capital. The question does Macedonian economic structure is compatible to current level of development and does Macedonia have sustainable economic development in the last ten to fifteen years can be answered negatively. In fact, the last economic crises confirmed that the development model that Macedonia has is not sustainable. Although the privatization process finished, the private ownership and liberalization do not show the expected effects. The companies are not competitive on international markets, and did not start to create new productive jobs in production and export oriented sectors. On macro level, we have development model based on fixed exchange rate of the domestic currency and weak economy, chronic trade deficit and reliance on the foreign capital inflow. Obviously, the economic model should be changed. Macedonia needs radical change of the economic policy, with fast restructuring of the economy and new economic and legal conditions for investments in production and other export oriented economy sectors. All these should be done parallel with general development of infrastructure and human resources. In order to start the investment cycle, which will invoke faster economic development, there is a need for change in the economic structure, which can be analyzed by the structure of GDP, as main macroeconomic aggregate in the economy.

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Economics
Depositing User: Ljupco Davcev
Date Deposited: 11 Aug 2014 08:34
Last Modified: 11 Aug 2014 08:34

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