Growth drivers of middle-income transitional countries: The case of the Republic of Macedonia

Abstract

As the world is moving ahead, all national economies need to find their own development path. The economic growth should be continually high enough to provide for a normal and growing standard of living for the citizens and, at the same time, provide opportunities for introducing and engaging the new, incoming generations in the world of business. The countries differ not only by the levels of attained development standard, but also by the possible methods which might be used for accelerating growth.The paper discusses growth factors which could help Macedonia find its way to catch up with the developed world in the long run -if this is possible. Obviously, the importance of institutions understood as the "rules of the game" and underpinning them is one of the most important issues related to development that should be seen as a conditio sine qua non and a basic prerequisite of a "developmental wave".