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Economic benefits and challenges from NATO membership [research]

Economic benefits and challenges from NATO membership [research]

 

The research “Economic benefits and challenges from NATO membership”, done by MA Ivana Velkovska, is aimed at determining the economic effects of joining NATO. For that purpose, a comparative analysis of Albania, Croatia, Montenegro, Bulgaria, Romania and Macedonia has been conducted for determining the budget implications, the effect on GDP and foreign direct investment (FDI) and indicators related to good governance.

According to the analysis of World Bank indicators and existing economic literature, good governance is increasing in the surveyed member states and this has a positive impact on the economy. In terms of the GDP, on the analyzed countries an average increase of 90% is noticeable over the five years after joining NATO, compared to the five years prior to joining NATO, and an average increase in FDI by as much as 292%. However, it cannot be claimed that these positive changes are a direct consequence of joining NATO, as all countries simultaneously go through the integration processes in the European Union and other enhanced processes of structural reforms. However, the existence of a correlation between these positive changes and NATO membership is encouraging for a potential Member State like Macedonia.

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This research is published in the framework of the project Civic Debate on NATO, which is financed by the Ministry of Defence of the Republic of Macedonia. The opinions set out in this publication are those of their author and do not necessarily reflect the views of the European Policy Institute - Skopje or the Ministry of Defence of the Republic of Macedonia.

Економски придобивки и предизвици од членството во НАТО [Граѓанска дебата за НАТО] [.pdf 2571KB]