Analysis the factors that determine dynamic of Macedonian economy (models of new theory of growth)

The progress of growth theory as a part of economic development, including scientific progress of new theory of growth and new institutional economy have created opportunities to analysis of many complex issues related with dynamic of growth process that previously scientists were unable to analyzed. The main aim of our paper is analyzing the factors that determine economic growth in context of new theory of growth and new institutional economy. In this regard, the paper is based on understanding the mechanic of economic growth, including the influence of institutional quality. The models of new theory of growth try to explain the growth process through analysis of technological procures-technological improvements. The main purpose of these models is to find out answer of the question: why some country is rich than another, or why some country have more dynamic growth process than another? Our research is focus on two models: R&D growth model that explain the difference in economic performance among countries through differences in innovation process and R&D activities. The country which have more R&D account high level of growth rate, compare with another. The second model that is object of our analysis is model of growth based of institutions