Macedonia is a small, landlocked country located in the central Balkan Peninsula in Southeastern Europe. It is bordered by Albania, Bulgaria, Greece, Kosovo, and Serbia. Macedonia is a major transportation corridor from Western and Central Europe to the Aegean Sea and Southern Europe to Western Europe. The government system is a parliamentary democracy; the chief of state is the president, and the head of government is the prime minister. Macedonia has a small, open economy that is vulnerable to economic developments in Europe and dependent on regional integration for continued economic growth. Macedonia is a member of the Central European Free Trade Agreement (CEFTA).