THE ROLE OF IMPORT DUTIES FOR A SMALL OPEN ECONOMY

Abstract

Any national economy, regardless of its size, diversification of natural resources and products it produces, and regardless of the degree of economic development, more or less realizes interaction links with the rest of the world and cannot remain outside the process of globalization of the economic flows. Emphasis should be placed on the comparative advantages the economy has, especially if it is a small open economy. Thereby, the central role is played by the fiscal and especially the customs policy of the country, as well as the correct positioning of import duties both for the realization of the fiscal as well as for achieving the stimulus goals. Fiscal policy, positioned in the stage of redistribution of social reproduction, besides economic, also realizes political, protective, social, demographic, educational, scientific, health, cultural and other goals, while indirectly acting on the other stages of social reproduction (production, exchange and consumption). By the example of the Republic of Macedonia as a small open economy, the paper intends to illustrate the role and significance of import duties in the direction of optimizing the realization of the fiscal policy objectives.