Bogdanovska Gj., Andrijana

Recommended reference: Bogdanovska Gj., Andrijana, FDI Impact on the Economic Growth in the Developing Countries (2000-2010) (July 10, 2011). Available at SSRN:


Foreign Direct Investments (FDIs) are a valuable tool for internationalisation of businesses in the global economy. They are seen as an instrument for technological development, knowledge transfer, economic growth and productivity enrichment.

The aim of the study is to analyse the impact of inward FDIs onto the economic growth in developing countries for the past decade. The research methodology used is based on the deductive research approach, based on quantitative data generated from secondary sources and a time-series analysis on a sample of developing nations. 

The results provide an updated analysis on the impact of FDI on the economic growth through the application of several control factors. Findings indicate that inward FDIs were attracted to the developing nations with higher availability of educated labour, higher government spending and more efficient quality of governance. In the process, the level of education although significant, was not recognised as a factor with strong effect, implying that the level of education (secondary education) is losing its overall value and is becoming a cost for the developing nations.

The findings and conclusions of the study are valuable for designing future policies and procedures and are especially beneficial for international organisations and governments, management of MNEs and the private sector. 

Bogdanovska Gj., Andrijana

Publication: Економски развој (Economic development) [1-2/2010]

Recommended reference: Bogdanovska Gj., Andrijana, Joint Ventures (JVC) vs. wholly Owned Enterprises (WHOES) Review of Current Trends. Available at CEEOL:



The increasing globalization of business, the opening of traditionally closed markets, and the emergence of innovative organizational forms have heightened concerns over issues relating to international entry strategies. While the process of internationalization raises a number of issues for a company, such as the choice of product market, the form of governance and the partnering strategy, the provided analysis in this review will focus on the influence that the relaxation of restrictions on foreign ownership had on the entry strategy of companies across many industries. Specifically, the analysis is made on the preferences of companies regarding the entry mode in international markets: a wholly-owned enterprise (WHOEs) vs. an international Joint Venture (JVCs).

The analysis is focused on countries like India and China, due to the fact that these countries attract the highest amount of FDIs, are seen as the most attractive foreign markets for the future, have been marked by heavily regulated FDI market in the past and have introduced extensive changes in the requirements regarding ownership structure of foreign direct investments (UNCTAD 2009a).

The purpose is to provide a comprehensive analysis of the reasons that have led to the change in preferences in the market entry strategies of companies and to critically discuss the relative advantages and disadvantages of JVCs versus the WHOEs as an entry mode.


Bogdanovska Gj., Andrijana

Publication: Економски развој (Economic development) [3/2008]

Recommended reference: Bogdanovska Gj., Andrijana, FDI and Human Capital Formation In South-Eastern Europe Focusing on Republic of Macedonia. Available at CEEOL:



Republic of Macedonia practiced, and continues to practice a passive FDI dependent strategy. An Investment Promotion Agency (IPA) has been recently established, but there are no specific FDI coordinated activities for the country’s promotion, and no clear strategic positioning compared to neighbours. Republic of Macedonia is a small market and although it has FTAs (free trade agreements) with most of the countries in the region, is not attractive for foreign investors, which find Romania and Bulgaria to be more suitable destinations due to their EU accession in 2007, their larger markets and the allocation of the EU structural funds. These developments determine the position of the country on the external playground, with limited short-term possibilities for change (next 2-3 years). In this situation, a solid knowledge of all available in-country resources is significant for developing and implementing a more assertive FDI dependent strategy.

The aim of this study is to analyse the importance of Human capital for attraction of FDIs and the further opportunities arising from FDIs in developing the HC of the country. Research methodology applied is explanatory quantitative research covering a survey of employees in MNEs and follow up interviews with MNEs managers.

At the moment MNEs influence human capital formation in Republic of Macedonia at two levels:

(1) MNEs tend to transfer technology and knowledge onto their subsidiaries and provide many training opportunities for its employees than before. The offered trainings are in work related and job securing skills, and they tend to under invest in development activities. 
(2) MNEs influence the local business community and transfer technology and knowledge through imposing higher standards on quality and after care activities. As a result of MNEs entry on the local market, local companies – vertical link, invested in new technology, human capital and employed new labour. In the sectors where MNEs have local competition, they caused technology and knowledge transfer onto horizontal links by pressing local competitors in improving its physical and human capacities for producing more competitive products/services.

Bogdanovska Gj., Andrijana

Publication: Економски развој (Economic development) [2/2008]

Recommended reference: Bogdanovska Gj, Andrijana, Influence of Multinational Enterprises in the Human Capital Formation in the Republic of Macedonia. Available at CEEOL:



The study on the influence of Multinational Enterprises on Human Capital Formation in R.Macedonia consists of a research on two important factors influencing country's economy and determining its future growth. 

It builds on literature findings that indicate the importance of two types of activities through which MNEs contribute to the development of the Human Capital in the host economy. They are:

  1. Direct spillovers - increase in the rate of employment of the host-country and technology and knowledge transfer from MNEs to its local subsidiaries;
  2. Indirect spillovers - technology and knowledge transfer through vertical and horizontal linkages, and other forms of support of the wider community.

Research methodology applied is qualitative field research covering semi-structured interviews with managers of MNEs and local companies - part of MNEs horizontal and vertical linkages.

The research findings confirm that MNEs have an influence on Human Capital formation in Republic of Macedonia, although this influence is very limited and covers technology and knowledge transfer onto MNEs subsidiaries – direct spillovers. In the indirect spillovers, MNEs influence on human capital development is insignificant, because MNEs do not use many local companies as suppliers in the country. In the industries where MNEs use local suppliers and/or have local competition, these companies influence the local business community and transfer technology and knowledge through imposing higher standards on quality and after care activities.