Yesterday, the National Bank Research Club held its 37th session. Due to the conditions related to the COVID-19 pandemic, this session was also held via video-conference link, thereby enabling the attendance of a larger number of participants.

 “The National Bank has a firm commitment, also in conditions of the “new normality”, to continue with the activities in the field of research activity. For that purpose, we continue without interruptions to hold sessions of the Research Club, which, due to the circumstances, is in a virtual format. Actually, exactly in such crisis circumstances, the need for research and analytical activity is especially great, since it is one of the key bases for making decisions by policy makers” - said the Governor, Anita Angelovska Bezhoska, in her opening address.

At the same time, she also referred to the contents and conclusions of the research paper “The impact of capital inflows on domestic investments in selected transition economies”, by the authors Vesna Stojcevska and Tijana Angjelkovska, presented after the opening address of the Governor.

The motive for the preparation of this research paper, as pointed out at the session, is the importance of capital inflows for the level of capital in an economy and their role in encouraging economic growth. The paper of Stojcevska and Angjelkovska focuses on analyzing the direct impact of capital inflows on domestic investments. As pointed out in the presentation at the session, for the purposes of the analysis, a panel-data base is built from selected 18 countries, all from the group of transition and post-transition economies. The data refer to the period from 1991 to 2018, and the application of econometric methods assesses the connections between the individual categories.

“The general conclusion from the sample is that capital inflows have a certain positive impact on domestic investments, thus assessing that financial loans have the strongest effect on domestic investments.” - said Vesna Stojcevska, who, on behalf of both authors, presented the paper, explaining the conclusions.

Following the presentation, the participants also discussed the impact of capital inflows on domestic investments, prompted by the conclusions of Stojcevska and Angjelkovska.

The next Research Club session is in March next year.