ANALYSIS OF COMPONENTS OF REGIONAL AND STRUCTURAL CHANGES FOR SOUTHEST AND POLOG REGION
ANALYSIS OF COMPONENTS OF REGIONAL AND STRUCTURAL CHANGES FOR SOUTHEST AND POLOG REGION

Summary/Abstract: The paper presents economic development and the economic structure in the two regions mentioned above. Given the fact that the economic structure is strongly related to the development whether of the region or of the national economy, which is presented with GDP, and it is taken as an indicator of analysis.The purpose of the research in this paper is to identify the economic areas which are carriers of development in the two regions mentioned above, which are one of the most underdeveloped regions of North Macedonia. The paper uses an empirical method - analysis of changes in regional components, which reveals economic sectors that are larger or smaller contributors to GDP in the two regions. The analysis shows that in these regions depressive economic structures dominate. The highest contribution to the formation of GDP in the two regions was made by trade (the best option with allotment effect 4), a sector which has limited accumulative capabilities and as such can’t give impetus to economic development.The worst option sector in both regions is that of agriculture, in Polog it marks the aloof effect1 and in the southwest the aloof effect 2.The results of the empirical analysis show that in these regions government policies should be much more active with state instruments to help the economic structure to improve.

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