DETERMINANTS OF FOREIGN DIRECT INVESTMENTS: THE CASE OF THE REPUBLIC OF NORTH MACEDONIA

Abstract

The occurrence of foreign direct investment (FDI) in various countries is essential for economic stability and development. This research paper aims to analyze and identify the factors that most strongly influence the determination of FDI in the Republic of North Macedonia. For this research, regression analysis is used as a methodology to analyze the empirical data. This analysis includes various potential factors that are proposed to influence FDI, such as gross domestic production, the average annual inflation rate, the number of employed persons, the index of economic freedom and the index of perception of corruption.

The results of this research present empirical evidence on the impact of each of these factors on attracting FDI. This evidence can help countries and the business sector to find more effective ways to stimulate and attract FDI, which can have significant consequences for economic growth and development. This research not only contributes to clarifying the determinants of FDI, but also provides practical guidelines for making political and business decisions that will increase investments and improve the conditions for economic growth and stability.