The Effect of FDI on the GDP of Macedonia

Foreign direct investment (FDI) is one of the most important international factors in relation with money movements. For this reason it has a major effect on the country's financial development and employment increase. Various studies in the world and mainly on European developing countries show that FDI plays an important role in creating new employment positions in host countries. A lot of research has been going on regarding FDI on a world scale which issue is already documented, however further information is needed in order to have a better understanding about FDI in the Balkan Region and particularly in Macedonia. In the last two decades, Macedonia has been one of the main receivers of FDI, compared to other countries from Central and Eastern Europe. The main purpose of this study is to analyze the effect of FDI on the level of GDP in Macedonia. To conduct the study, data are gathered from World Bank, International Monetary Fund, and State Statistical Office of Macedonia, for the country over a period of seventeen years from 1998-2014