CORRELATIVE ANALYSIS BETWEEN FDI AND GDP IN THE REPUBLIC OF MACEDONIA [ ]


The entry of FDI in the country brings with it a number of effects on the host countries, starting from the local workforce through increased employment opportunities, higher wages by foreign companies; the effect of the transfer of resources, where foreign firms can contribute by providing capital, technology and management; effects on trade and balance of payments, where the balance of payments benefits from any capital inflow and FDI increases competition in the country forcing domestic companies to bring better quality products and services as well as technology and more efficient administration.