Macroeconomic Determinants of FDI Inflows in Macedonia: A Breakpoint Analysis

Ivana Vuchkova, Sarfaraz Ali Shah Syed, Hélène Syed Zwick


This article investigates the impact of macroeconomic variables on FDI inflow in Macedonia using quarterly data for 2000-2016. The structural breakpoint method is used to disclose the non-linear effects in a context of structural shocks. The results indicate a significant impact of our macroeconomic variables on FDI inflows and reveal temporal heterogeneity of the slopes reflecting a non-linear impact of real GDP, interest rate, real effective exchange rate and trade openness on FDI inflows.

Keywords: FDI, Structural Breaks, Breakpoint analysis, Macedonia.

JEL codes: C20, F43, O11

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