Davcev, Ljupco and Hourvouliades, Nikolas (2014) The structure of GDP as an indicator for economic development: a note on the economy of FYROM. International Journal of Research in Business Management, 2 (2). pp. 33-42. ISSN 2347-4572
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Abstract
The global economy crisis confirmed the need for development of the production sector in FYROM as a key
element for decreasing the trade deficit. The effects of the crisis show that FYROM does not have economic structure
capable for development without inflow of foreign capital. The question whether FYROM economic structure is
compatible to current level of development and whether the country has sustainable economic development in the last ten
to fifteen years should be answered negatively.
In fact, the last economic crisis confirmed that the development model that FYROM applied is not sustainable.
Although the privatization process finished, the private ownership and liberalization do not show the expected effects.
The companies are not competitive in the international markets, and did not start to create new productive jobs in
manufacturing and export oriented sectors. On a macro level, there has been a 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.
FYROM needs radical change of the economic policy, with fast restructuring of the economy and new economic
and legal conditions for investments in manufacturing and other export-oriented economy sectors. All these should be done
parallel to 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 the 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: | 23 Jun 2014 10:06 |
| Last Modified: | 23 Jun 2014 10:06 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/10158 |
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