Socio-economic development: Domestic vs. Foreign Investments in the Republic of Macedonia: Policies for their support and their effects

This analysis will specifically focus on the issue of unequal treatment of  foreign and domestic investors, or in other words, the discrimination of domestic investors by favoring inward-FDI through incentives. This issue has, in addition to the issue of measuring of the effects of FDI, been one of the most highlighted in the public debate.

This analysis’s specific interest is the extent and the specific dimensions of the argument that domestic investors are subject to unequal treatment by the government’s FDI promotion incentives. The argument has been articulated by business representative organizations and it has been taken on by independent or opposition-oriented media, the expert community, and last but not the least, the political parties.

The text will try to explore the specific dimensions of the argument, and how strong this sentiment is in the business community in Macedonia. The analysis will try to explore the additional matter of how typical is this issue to the Macedonian FDI promotion experience. Have other countries with FDI incentives experienced this and in what way? If so, what have been the effects of thedebate on the issue or the opposition to the FDI incentives, in particular on the FDI promotion policy?

Read the analysis here