Investment Obstacles in the Manufacturing Sector in FYR Macedonia: Do the Subsector Specifics Matter?

Abstract

We provide clear insights into the key foreign direct investment obstacles for the manufacturing sector in FYR of Macedonia, an EU candidate country. The survey results, based on data for 79 manufacturing companies, revealed that the investors in this particular sector perceive the bureaucratic and administrative constraints, corruption and bribery, and the lack of law enforcement as three major investment obstacles. Furthermore, we found that the perception of the investment obstacles largely differ depending on the industry the companies operate in, the country of origin, and the export orientation. Therefore, we recommend a tailor-made approach in pursuing the national investment promotion policies and strategies.