The External Indebtedness of the Republic of Macedonia

Abstract

This paper is an attempt to shed some light to the
abovementioned questions and dilemmas related to one of the aspects
of the general indebtedness, namely the external indebtedness. Having
this objective in mind, first, we will consider the theoretical arguments
in favor of external indebtedness of developing countries. Then, we
will present the empirical evidence for the relationship between
external indebtedness and economic growth, and the implications of
using foreign savings in the early phases of economic development. In
the third part, we will state and discuss the actual external
indebtedness of RM, and its evolution. The fourth section is devoted
to the assessment of the external debt of RM and its sustainability. At
the end, the final considerations and conclusions are presented.