Managing investment conditions: The case of Macedonia

Foreign Direct Investments (FDI) are one of the fundamentals that enables and accelerates economic development of a national economy. Therefore, each national economy must layout preconditions that will enable attracting of foreign capital. Among other things, an adequate legislation considering the FDI’s is a prerequisite. Hence, the governmental role and policies towards FDI issues may have significant influence on improving the investment climate. The purpose of this paper is to present the manner and scope to which the governmental policies approach this crucial issue. For this purpose, the first goal is to look upon legislative aspects for attracting FDI in Macedonia. The second one is to explore the institutional mechanisms that present coordinates and determinants of the framework for doing business. Simultaneously, the research subject is legislative that regulate this area, as well as some other legal aspects, as: the laws related to the foreign trade, fiscal sector, institutional frame, foreign exchange operations, the area of labor relations, etc. The research results lead to conclusion that the legislation framework, as significant factor of national business environment, provides opportunities for FDI enhancement in Macedonia. Although significant results have been achieved so far, particularly in the last decade, still, there is a need for further improvement of current legislation. Keywords: Foreign direct investments; Foreign capital; Legislation; Business; Macedonia. JEL Classification: G28