Foreign Direct Investment in the FYR Macedonia: An Overview of Motives, Incentives, and Barriers

Abstract

The issue of foreign direct investment (FDI) has increasingly triggered the interest of academicians and practitioners worldwide over the past decades. Besides the academic challenge of capturing the “rules of the game” of this lively, changing phenomenon, it is the tremendous impact that FDI exerts, both on the economic development of the host countries and on the competitive positioning of the multinational enterprise (MNE) in the fierce global rivalry, which explains the magnitude of the attention FDI has received. The emergence of the new independent states that followed the dissolution of the former socialist federations and alliances, and their subsequent orientation towards becoming market economies, has emphasized the openness of these countries to foreign investment and has led to a completely new field of FDI research.