Issue 1, 2021

The paper analyzes empirically the geography of trade flows among the European Union countries and the European Neighborhood Policy countries. Focusing on the period 2000-2010 and utilizing trade data derived from COMTRADE Database, the paper draws conclusions with respect to the European Neighborhood Policy undertaking. The empirical analysis of the paper highlights that the European Neighborhood Policy countries are engaged in an asymmetric, inter-industry, type of trade activity with the European Union countries, facing serious difficulties in restructuring and diversifying their productive bases. Hence, the trade component of the European Neighborhood Policy does not provide a solid stimulus in the process of “neighbourhood Europeanization”. The findings of the paper provide valuable insight to both economic integration theory and policy-making, and, albeit specific to the European Neighborhood Policy countries, may be relevant also to other countries currently deepening their integration with the EU.
JEL: F12; F14; F15

The paper addresses issues related to the impact of external migration on the labour market in Bulgaria, with a focus on returning migrants and their participation in the labour market in the country. The study is based on data from a representative national survey conducted in 2017. Characteristic of the labour status of migrants as a whole and by separate groups is made. A comparative assessment of the employment status before the first departure and after the last return is done. Main problems for the participation of migrants in the labour market in Bulgaria and the need to support their reintegration into the economic life in the country are identified.
JEL: J62; J24

The paper studies the ongoing regulatory, institutional and organisational developments in EU energy sector during the last two decades that change the way electricity markets operate. In particular, it addresses the EU efforts in creating competitive and sustainable electricity markets. Its aim is to explore the effects of the reform on market competition and electricity price evolution. The paper firstly presents the specific aspects of the electricity market, which helps to understand its overall functioning. The current electricity market structure, participants behaviour and market performance are discussed. The analysis presents the contradictions between the EU energy and climate targets and their adverse impact on end-consumers, who are stated as the main beneficiaries of the reform. The study comes to the conclusion that the persistence of shortcomings in the electricity market defined by policy deficiencies at an EU level and diverging energy policies at a Member State level requires further efforts to make national markets work as a single European energy market with common rules and prices.
JEL: D40; Q20; Q41; Q42

The article seeks to answer the question: on what foundations is the theory of stakeholders built. The contributions and achievements of economic, political and legal theories and concepts used in this theory, such as strategic management, systems analysis, motivational theories, industrial relations, etc. are revealed. The active implication of stakeholder theory in various recent policy initiatives might shed light on a new road for the development of corporations and society.
JEL: G3; M2

The development of digital technologies turned into the fourth industrial revolution – Industry 4.0, which is associated with the digitalisation of processes, big data, the Internet of Things, additive technologies – 3D printing, robotics, artificial intelligence. The digital transformation in business relations led to economic reformatting of logistical, production and trade processes in the global value chain and especially with regards to cross-border payments, production and trade. The present research fills the research gap concerning the relation between the preconditions for the digital transformation of industry, the economic effects from the reformatting of the global value chain and the related digital competitiveness of enterprises. The establishing of the relation and the identification of trends in the development of digital technologies and the global value chains is an indicator for the beginning of the transition from Industry 4.0 to the industry of artificial intelligence – 5.0.
JEL: A20; L1; O1; O14; O3; O33

Any anti-crisis macroeconomic policy includes monetary and fiscal policy. The construction of anti-crisis macroeconomic policy in the conditions of a small open economy in a currency board and a virus pandemic raises the question of which measures should be the foundation and which measures should play a complementary macroeconomic role. This issue is extremely important because it predetermines both the efficiency and effectiveness of counter-cyclical policy. This study deals with the structuring of the main and complementary role of the fiscal and monetary policy in the general anti-crisis policy of Bulgaria. The focus is on 2020, looking at the impact of aggregate fiscal multiplier and monetary measures on GDP, based on extrapolation. A mathematical analysis is realized, which leads to quantitative results that illustrate the impact of fiscal and monetary policy on GDP development in a predictable short-term period which covers 2020 on a quarterly basis.
JEL: E6; E62; E52

The importance and possibilities of fiscal policy have been neglected by academics and politicians for decades after the macroeconomic revolution of 1970-1980. However, the Great Recession, the crisis in the European Union and the prolonged recession in many European economies have once again put fiscal policy, and especially its stabilizing role, at the centre of expert and public discussions. In countries with a high share of the public sector in the economy and whose monetary policy is constrained by various structural features of the economy and the financial system, the role of fiscal policy is particularly important, and it is a key lever of economic policy. These features characterize most countries in Central and Eastern Europe (CEE), which makes this region convenient for analyzing the effectiveness of the fiscal policy. The study empirically establishes the effects of shocks in budget expenditures and tax revenues on GDP in Bulgaria, Estonia and Lithuania for the period 1995-2018, applying the vector autoregression technique known as the Vector Autoregressive Model (VAR) as well as other, non-econometric valuation methods. Key factors that affect the dynamics in the size of fiscal multipliers are presented numerically and graphically.
JEL: C32; E01; E62

The focus of research interest is on examination the specific features of event tourism and the opportunities it offers for the development of destinations. Global trends in tourist demand and the state of tourism supply are indicative of the relevance of developing event tourism. Special events, especially those that are hallmark events, and tourism that is based on them, are recognised as an opportunity to achieve a range of goals. They can also have an impact on the image, attract tourists and emotionally influence them, which makes them a particularly suitable instrument of the development of destinations.
This study aims to identify the main goals of the development of event tourism, as well as to outline the key factors in their achievement. An expert survey was conducted on the basis of a structured model, including process and result objectives. The results of the study permit identification of key determinants of successful event tourism policy: efficient use of identified event tourism resources; strategic measures at a national level to support and promote event tourism, including building a portfolio of distinctive events for the destination; the implementation of marketing strategies for the distribution and advertising of event tourism, professional organisation; building knowledge on event tourism demand and tourist satisfaction. Today's event tourism management exists via utilising the potential of digital technologies in the design and distribution of the event tourism product.
JEL: L83; L84; M11