CEU Electronic Theses and Dissertations, 2022
| Author | Naumovski, Nikola |
|---|---|
| Title | Economic Integration Between North Macedonia and the Euro Area: Costa of Joining the Euro |
| Summary | North Macedonia became a candidate country for European Union accession in 2006. Considering its prospective membership and subsequent Euro Monetary Union (EMU) integration, the objective of this research is to fill an empirical gap in investigating the degree of economic convergence between North Macedonia and the EMU. For this purpose, a set of theoretical methods are used i.e. The Optimum Currency Area (OCA) theory and the Maastricht convergence criteria. Data from the empirical analysis shows that North Macedonia has been successfully converging with the EMU in the last 20 years at a slow to moderate paste. The findings steaming from Maastricht convergence criteria reveal that the economy is well prepared to join the EMU i.e. inflation for most of the period is low and stabile, government debt is below the 60% reference value, and the exchange rate is stable at around 61 Macedonian denars. However, continuously increasing government debt, poses a risk which some authors have already identified. The assessment using the OCA criteria does point to some existing challenges, particularly with respect to the structure of the economy, and economic growth. In order to overcome these challenges, introduction of a set of policy measures targeting the real economy should be considered. |
| Supervisor | Akbar, Yusaf, H. |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2022/naumovski_nikola.pdf |
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