Investment Activity in Small Open Economies ()
ABSTRACT
The paper gives a
brief elaboration of the basic macroeconomic aspects of investments with emphasis
on the specificities of small open economies in the process, theoretically
elaborates the need for openness of small economies (especially the economies
that need the acceleration of their development), then highlights the risks and
opportunities arising from the investment activity both on the micro and macro
level. Further distinguishes between investments in financial instruments and
in real investment projects, emphasize the need for creation of an optimal
diversified portfolio. Finally, the paper underlines the need for various forms
of foreign direct investment for all economies, particularly the opportunities
and threats arising in small open economies, to complete the wholeness with
empirical data of the previously elaborated matters on the example of the
Republic of Macedonia as a small open economy.
Share and Cite:
Karadjova, V. and Dičevska, S. (2014) Investment Activity in Small Open Economies.
Technology and Investment,
5, 65-78. doi:
10.4236/ti.2014.52008.