Investment Activity in Small Open Economies
Abstract
The paper gives a brief elaboration of the basic macroeconomic aspects of investments with emphasis
on the specificities of small open economies in the process, theoretically elaborates the
need for openness of small economies (especially the economies that need the acceleration of
their development), then highlights the risks and opportunities arising from the investment activity
both on the micro and macro level. Further distinguishes between investments in financial instruments
and in real investment projects, emphasize the need for creation of an optimal diversified
portfolio. Finally, the paper underlines the need for various forms of foreign direct investment
for all economies, particularly the opportunities and threats arising in small open economies,
to complete the wholeness with empirical data of the previously elaborated matters on the example
of the Republic of Macedonia as a small open economy.
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- Business and Economics [102]