Over the past two decades, the European Union (EU) has been holding its position in the world mar... more Over the past two decades, the European Union (EU) has been holding its position in the world market competing with the USA and Japan, as well as with new rivals such as China and India. However, even before the crisis, the growth in productivity had been slowing down and the internal and external balance was endangered by the different economic structures of the member states. The EU faced the serious challenges of losing world market positions due to a loss of competitiveness. This chapter aims to point out the risks of reducing EU competitiveness by analyzing the indicators of price and cost competitiveness, as well as the structural and technological aspects of competitiveness. Focus is placed on the influence of the world crisis on the competitiveness and export performances of the EU in order to show to what extent the global downturn may have aggravated previously existing needs for the readjustment of the functioning of the Union. Not only has the crisis demonstrated that th...
The admission to the EU will considerably reduce the transaction costs of the Macedonian companie... more The admission to the EU will considerably reduce the transaction costs of the Macedonian companies, because of the elimination of the current obstacles and the required adjustment of most of the administrative and business procedures to those applied to the EU. The market of placing their products will increase to over 500 million people. Such market will induce development of the so-called economy of scale of the domestic companies, the need for specialization of their products and introduction of innovations in their businesses. The admission to the EU will provide a significant opportunity for the RM to become a part of the "Euroland", which will further encourage positive developments in the domestic economy. As an EU member state, the RM willimprove its international relations, particularly with the IMF, the World Bank, the UN, the World Trade Organization, etc. As a result, its international rating will be higher, opening the doors for more intensive cooperation with...
The aim of the paper is to examine the level of interdependence between developing and developed ... more The aim of the paper is to examine the level of interdependence between developing and developed stock markets. The correlation of the Macedonian (MBI10) stock exchange index with the Belgrade (BELEX15), the Six Swiss (SLI) and the Euronext Paris (CAC40) stock exchanges from November 2005 to October 2018 was studied. In order to assess the impact of the crisis on the interrelations between these equity markets, the analyzed period was we subdivided into three segments (pre-crisis, during crisis and post-crisis) and the data sets were subjected to linear regression analysis. The research results indicate an increased correlation of the Macedonian with Belgrade and Euronext Paris Stock Exchanges and decreased correlation with Six Swiss during the time of financial distress comparing to pre and post crisis periods. The findings of this study contribute to the overall picture of the relationship between stock markets in the time of Financial Crisis. Moreover, by investigating the interr...
Strategic goal of Republic of Macedonia (RM) is membership in EU. That road is apparently long. T... more Strategic goal of Republic of Macedonia (RM) is membership in EU. That road is apparently long. There are lots of reasons. Among them is the need for adjustment of particular instruments of the macroeconomic policy of RM. The main instruments of macroeconomic policy in every country are fiscal and monetary policy. For the fiscal policy in RM can be said that in big portion is adjusted to Maastricht criteria. But we can’t say the same for the monetary policy. Sixteen years in row in RM is implementing monetary strategy of fixed exchange rate. That kind of strategy contributes for sustaining macroeconomic stability. From the other side, rates of economic growth were low or with negative values. External trade deficit have permanently upward trend. Unemployment rate is pretty high. Those results impose the question about adequacy and sustainability of existing monetary strategy or it should be changed with targeting inflation.
Before the beginning of the world economic crisis, countries from Eastern and Central Europe (CEE... more Before the beginning of the world economic crisis, countries from Eastern and Central Europe (CEE) had tremendously high rates of economic growth. Their growth was stimulated mostly with foreign investments and huge amounts of loans that came from the Western countries. However, as a result of the current economic crisis, global liquidity is sharply decreasing. Access to foreign capital gets more dificult. Inflow of foreign currencies from export of goods and services is being reduced. That caused an abrupupt decrease of the inflow of foreign currencies and pressure on the exchange rates of the domestic currency. Countries with fluctuating exchange rate experienced depreciation of their currencies. Countries with fixed exchange rate faced the need of significant reduction in their foreign reserves in order to prevent the depreciation of their currencies. The second scenario happened in Republic of Macedonia (RM). That raised the question whether the devaluation of the Macedonian den...
The aim of this paper is to examine the impact of the accession of Macedonia in the EU on the ban... more The aim of this paper is to examine the impact of the accession of Macedonia in the EU on the banking system. EU enlargement is a complex process with enormous impact on the economy of the new member countries. The financial system of the new member country, and the banking system as part of it, faces the challenge of integration in the EU financial system. The best evidence of the EU accession impact on the banking system is the analysis of the basic characteristics of banking systems of the countries that have become members in the last 20 years. The future banking development in the new EU member countries will very likely follow some main patterns known from the old EU members. In a way, banks from candidate countries can see their own future by observing the current developments in the Western European banking. The process of restructuring in the banking system through consolidation which has led to increased concentration has been one of the main drivers of changes. The existe...
Over the past two decades, the European Union (EU) has been holding its position in the world mar... more Over the past two decades, the European Union (EU) has been holding its position in the world market competing with the USA and Japan, as well as with new rivals such as China and India. However, even before the crisis, the growth in productivity had been slowing down and the internal and external balance was endangered by the different economic structures of the member states. The EU faced the serious challenges of losing world market positions due to a loss of competitiveness. This chapter aims to point out the risks of reducing EU competitiveness by analyzing the indicators of price and cost competitiveness, as well as the structural and technological aspects of competitiveness. Focus is placed on the influence of the world crisis on the competitiveness and export performances of the EU in order to show to what extent the global downturn may have aggravated previously existing needs for the readjustment of the functioning of the Union. Not only has the crisis demonstrated that th...
The admission to the EU will considerably reduce the transaction costs of the Macedonian companie... more The admission to the EU will considerably reduce the transaction costs of the Macedonian companies, because of the elimination of the current obstacles and the required adjustment of most of the administrative and business procedures to those applied to the EU. The market of placing their products will increase to over 500 million people. Such market will induce development of the so-called economy of scale of the domestic companies, the need for specialization of their products and introduction of innovations in their businesses. The admission to the EU will provide a significant opportunity for the RM to become a part of the "Euroland", which will further encourage positive developments in the domestic economy. As an EU member state, the RM willimprove its international relations, particularly with the IMF, the World Bank, the UN, the World Trade Organization, etc. As a result, its international rating will be higher, opening the doors for more intensive cooperation with...
The aim of the paper is to examine the level of interdependence between developing and developed ... more The aim of the paper is to examine the level of interdependence between developing and developed stock markets. The correlation of the Macedonian (MBI10) stock exchange index with the Belgrade (BELEX15), the Six Swiss (SLI) and the Euronext Paris (CAC40) stock exchanges from November 2005 to October 2018 was studied. In order to assess the impact of the crisis on the interrelations between these equity markets, the analyzed period was we subdivided into three segments (pre-crisis, during crisis and post-crisis) and the data sets were subjected to linear regression analysis. The research results indicate an increased correlation of the Macedonian with Belgrade and Euronext Paris Stock Exchanges and decreased correlation with Six Swiss during the time of financial distress comparing to pre and post crisis periods. The findings of this study contribute to the overall picture of the relationship between stock markets in the time of Financial Crisis. Moreover, by investigating the interr...
Strategic goal of Republic of Macedonia (RM) is membership in EU. That road is apparently long. T... more Strategic goal of Republic of Macedonia (RM) is membership in EU. That road is apparently long. There are lots of reasons. Among them is the need for adjustment of particular instruments of the macroeconomic policy of RM. The main instruments of macroeconomic policy in every country are fiscal and monetary policy. For the fiscal policy in RM can be said that in big portion is adjusted to Maastricht criteria. But we can’t say the same for the monetary policy. Sixteen years in row in RM is implementing monetary strategy of fixed exchange rate. That kind of strategy contributes for sustaining macroeconomic stability. From the other side, rates of economic growth were low or with negative values. External trade deficit have permanently upward trend. Unemployment rate is pretty high. Those results impose the question about adequacy and sustainability of existing monetary strategy or it should be changed with targeting inflation.
Before the beginning of the world economic crisis, countries from Eastern and Central Europe (CEE... more Before the beginning of the world economic crisis, countries from Eastern and Central Europe (CEE) had tremendously high rates of economic growth. Their growth was stimulated mostly with foreign investments and huge amounts of loans that came from the Western countries. However, as a result of the current economic crisis, global liquidity is sharply decreasing. Access to foreign capital gets more dificult. Inflow of foreign currencies from export of goods and services is being reduced. That caused an abrupupt decrease of the inflow of foreign currencies and pressure on the exchange rates of the domestic currency. Countries with fluctuating exchange rate experienced depreciation of their currencies. Countries with fixed exchange rate faced the need of significant reduction in their foreign reserves in order to prevent the depreciation of their currencies. The second scenario happened in Republic of Macedonia (RM). That raised the question whether the devaluation of the Macedonian den...
The aim of this paper is to examine the impact of the accession of Macedonia in the EU on the ban... more The aim of this paper is to examine the impact of the accession of Macedonia in the EU on the banking system. EU enlargement is a complex process with enormous impact on the economy of the new member countries. The financial system of the new member country, and the banking system as part of it, faces the challenge of integration in the EU financial system. The best evidence of the EU accession impact on the banking system is the analysis of the basic characteristics of banking systems of the countries that have become members in the last 20 years. The future banking development in the new EU member countries will very likely follow some main patterns known from the old EU members. In a way, banks from candidate countries can see their own future by observing the current developments in the Western European banking. The process of restructuring in the banking system through consolidation which has led to increased concentration has been one of the main drivers of changes. The existe...
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