Issue 3, 2015

The article presents key labour market policies already applied in Bulgaria. Their potential and deficiencies are outline with a view towards expected economic revival and gradual exit out of the crisis (2008-2014). Some of the most important barriers for the progress of these policies are outlined with the purpose to provoke further research and public debates. 
JEL: J2; J3

The country's tax and social insurance revenue system in the 2000-2014 period has been analysed. The basic tax and social insurance revenues are analysed on the basis of the data about: 1) their dynamics dividing the period into two, i.e. before and after the 2008/2009 crisis; and, 2) the deviations in the forecast and reported budget revenues.
Some explanations for the deviations found within the dynamics and between the forecasts and reports have been sought by means of: 1) analysing the changes in the tax and social insurance rates; and, 2) the dynamics of the tax and social insurance bases.
An analysis of the reasons for the specific CFP revenue dynamics of the different tax and social insurance bases has also been made.
The revenue dynamics has been forecast in a medium-term and long-term perspective, with the current tax and social insurance system being in force.
Some conclusions have been arrived at from the analyses and forecasts made.
There are arguments for a reform in the country's tax and social insurance system that comply with and result from the conclusions.
JEL: H20; H71

The paper discusses the essence and some specifics of the political branding in the context of the structural scope of the political marketing. It outlines the definition of the political branding and formulates its main characteristics. The paper analyzes its models and their application in the social practice. It gives a characteristic of the similarities and differences between the categories “political brand”, “political image” and “political advertisement”.
JEL: D78

The study aims to trace the influence between developed and developing capital markets in the context of the Efficient Market Hypothesis, taking into account the global financial crisis of 2008. In the study are used seven indices, two are representing developed markets – the U.S. DJIA, the German DAX and the rest five – developing markets of Central and Eastern Europe (CEE) – Bulgarian SOFIX, Czech PXI, Hungarian BUX, Romanian BET and Russian RTS. Using daily returns from 2005 to 2012, we investigate the volatility co-movement between the U.S. and the German indexes on one side and the CEE indices on another. In order to do so we apply EGARCH model to market data deviated in three periods – Pre-crisis, Crisis and Post-Crisis. In terms of correlation CEE indices can be divided in two – Czech, Hungarian, Romanian and Russian, showing a high correlation with the German index, and Bulgarian SOFIX demonstrating greater synchronicity with the U.S. index. This observation is confirmed for the three periods of study. Examining the volatility co-movement we can point out that the Hungarian, the Czech and the Russian indexes are clearly showing a leading role for their dynamics by the German index, for all studied periods. The Romanian index is showing a hesitating reaction to the deterministic influence of DJIA and DAX. For the Bulgarian index if there is a significant external influence, it is always by the DJIA. Regarding the reaction to the market impulses and information efficiency Bulgarian and Romanian indexes are clearly distinguished from the other studied CEE indexes. They showed disposition for faster and more sensitive reaction to negative market impulses, typical for the Crisis Period, in contrast to a moderate incorporation of the positive market impulses specific to the Pre-crisis Period.
JEL: C32; G01; G14; G15

Changes in banking regulation and control, inherent in the Basel Accord provisions, are one of the sources of innovation in banks. Any changes, both inside and outside an organization, provide business entities with a number of opportunities for further development. In this context, analysis and study of the prospects offered by the introduction of new Basel II, 2.5 and III provisions hold particular importance and relevance. This article provides an overview of the changes in banking regulation, and shows their impact on innovative reforms in the banking sector.
JEL: G21; G28; O31

Purpose: the ultimate goal of the article is the consideration of the fundamental aspects of the National innovative system tax stimulation. Methods: in the article the method of the comparative analysis is used for the research of the tax stimulation tools in the innovative development worldwide.  Results: the article proposes the system for the tax stimulation of the National innovative system (NIS). The system is provide the creation of the economic conditions which essentially increase the innovatively focused managing subjects activity.  The system involves the use of the tax toolkit adjustment taking into account the reveal dependences between the indicators characterizing the human, production, financial, scientific and infrastructural potentials and various kinds of direct and indirect taxes. Conclusion: in conclusion presents general conclusions about the results of the study.
JEL: H21

The results from studies of innovation in furniture enterprises for the period 2006-2012 are monitored more than 600 small and medium-sized enterprises for the production of furniture in Bulgaria. As a result, they are characterized specific innovation activities and results, and compared with the average performance. Highlighted are the barriers to innovation and recommendations are made in the observation of innovation in the furniture industry.
JEL: O32; L73; O39

The purpose of this paper is to investigate the link between trade liberalization, government size and the macroeconomic volatility in case of Pakistan. For this purpose, paper used time series data from 1967-2010 and employed co integration technique to find long run relationship. The results proposed that in long run trade liberalization and economic size create volatility in output. However consumption volatility is directly link with trade liberalization and government size. It is proposed that increase in trade liberalization and government size may reduce the investment volatility in long run. Furthermore error correction model suggested that in short run output volatility, trade liberalization, and economic size are negatively linked whereas government size directly linked with output, consumption and investment volatility in the short run.
JEL: E21; F41; F62; H59