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The budget is the most important part in the economy of a country, where through the process of preparation of budget proposal, budget control, budget approval and budget execution, the public can have clear overview of how the state budget is approved in line with the requirements and priority needs of the society. As the budget of any country worldwide was burdened with specific expenditures during the COVID-19 pandemic period, the aim of this paper is to address the budget process in North Macedonia, during the period of COVID-19 pandemic, capturing the years of 2019, 2020, 2021, making comparisons between years, and see how the budget has progressed during the observed crisis period. In this regard, the purpose of this paper is to understand more clearly the budgeting process in North Macedonia through research, analysis and comparison. The topic of the research is treated from the theoretical aspect by using the normative method and analytical method, graphic images and comparisons between budgeting data between years of 2019, 2020, 2021. The study concludes that budgeting as a tool of state responsibility, a management tool and an instrument of economic policy, throughout fiscal policy framework, has three main functions: shows the direction of the economy and expresses the intention for the use of economic resources, serves as a tool for reducing inequalities and as a tool for achieving and maintaining the sustainability of macroeconomic stability. [ABSTRACT FROM AUTHOR]

The paper employs a gravity model augmented with institutional related factors to study the determinants of bilateral FDI flows between South East European Countries (SEE-5) and Central East European Countries (CEE-10) on one hand, and European Union Countries (EU-14) on the other hand, on a yearly time span 1994-2010. The study applies different linear estimation technique like GLS and nonlinear estimation techniques, like Random Effect Tobit and Poisson-Pseudo Maximum Likelihood. The findings of the paper suggest that the bilateral flow of FDI between countries is determined by market size factors of both host and source countries and transaction cost factors between countries, as well as by the institutional performance of host countries. [ABSTRACT FROM AUTHOR]

This paper tests the institutional determinants of Foreign Direct Investment flows to 5 South East European Countries (SEEC-5) and the 10 New Member States of the European Union countries (EU-NMS-10) by using panel data set for a time span 1994-2018. The study employs an augmented Gravity Model with country specific institutional factors which determine foreign investors' decisions from 14 core European Union countries to invest into SEE-5 and EUNMS- 10 countries. From the results of the study we found that FDI flows are significantly influenced by both gravity factors (distance, GDP) and non-gravity, mainly efficiency seeking factors (bilateral exports, schooling), as well as institutional factors like: WTO membership, transition progress and governance indicators of rule of law, regulatory quality and political risk. [ABSTRACT FROM AUTHOR]

The paper examines real and nominal convergence of North Macedonia toward European Union (EU) and European Monetary Union (EMU), with regard to real and external sector developments as well as fiscal and monetary developments in the country, in line with the Copenhagen and Maastricht criteria. Hence, the North Macedonia's economic developments in prices, fiscal balances and debt ratio, exchange rates and long-term interest rates are reviewed from a backward - looking perspective, focusing mainly on the last 10 years. The results of the paper suggest that the country is on a good shape, with respect to transition developments, as well as real sector and external sector developments, thus enhancing the advancement of the country's EU approximation path and is far away from monetary integration. [ABSTRACT FROM AUTHOR]

The objective of this research is to provide an empirical assessment on the nature of FDI in selected transition countries, using bilateral country level data on FDI flows and export flows, between 5 South East European Countries (SEE-5), 10-New EU member states (EN-NMS- 10) and 20 countries from the Organization of Economic Cooperation and Development (OECD-20 countries), at a yearly time period from 1994 to 2010. For estimation purpose, we use Random Effect Tobit estimates. The study finds country characteristics, like differences in GDP and GDP per capita, as well as differences in factor endowments between countries at labor and capital base and trade cost are significantly related to export flows between countries. With regard to the relationship between exports and FDI the findings of the study support vertical nature of FDI in the SEE-5 and EU-NMS-10 countries, whereas, based on country characteristics findings the study supports horizontal nature of FDI. [ABSTRACT FROM AUTHOR]

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