ASSESSMENT OF FOREIGN DIRECT INVESTMENTS IN WESTERN BALKAN COUNTRIES, THE CASE OF MACEDONIA

Aleksandar Kostadinov

Aleksandar Kostadinov University of Bologna

Abstract

The paper assesses FDI in Western Balkan countries and attractiveness of Macedonian clusters. The first part is consisted of macroeconomic data on FDI in Western Balkan countries, expected FDI in the region based onforecast function. The second part shows competitiveness of two Macedonian clusters.Â According to the Macedonian Investment Agency, automotive and food processing industry are considered as a high competitive on a regional level and industries with high potential to attract Foreign Direct Investments (FDI). For this purpose,I have build a match-making matrix of this two clusters, based on an article and methodology proposed by: S. Young, N. Hood and A. Wilson in "Targeting Policy as a competitive strategy for European Inward InvestmentAgencies"- European Urban & Regional Studies-1994

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