Issue 6, 2017

The aim of the paper is to investigate the sources of economic growth in Bulgaria and Macedonia. We use a growth accounting framework based on production, demand and sector-side approach, for the period 2000-2015. The tree-sided approach enables the analysis of similarities and differences of growth models in the two countries, through altered perspectives. The estimated results of the conventional decomposition of economic growth sources indicate that the main driver of annual rate of economic growth in both countries is investment in physical capital. However, the differences are found in the contribution of labour force and TFP contribution. The higher contribution of labour force is found in Macedonia, while the contribution of TFP is more significant in Bulgaria. Additionally, the results based on demand-side approach of the sources-of-growth analysis indicate that the households consumption and government spending are the main growth drivers in both countries, with negative effects of trade deficit and, as well,  negative contribution of net export to economic growth. Furthermore, the estimated results of growth accounting based on sector-side approach show that the economic growth in both countries predominantly is driven by trade and service sector, with lower contribution of manufacturing. Finally, the paper depicts several policy suggestions and recommendations based on underlying insights, estimated results and conventional guiding principles.
JEL: O40; O43; O47

The influence of modern globalization processes on the innovative development of the labor potential in the paper was defined. The solution of the problems of social and labor sphere development for the regions of Ukraine should be done through new approaches, namely on innovative principles was founded. This means that the focus should concentrate on the efficiency enhancing development of educational-qualification component, because the implementation of the majority of management decisions requires time and generational changes with the formation of the new set of values, obviously can only be achieved through the educational sphere. It is proved that the active cross-border transfers of information, knowledge, technologies and human resources (migration) determine the importance to take into account the globalization factor when searching for opportunities to improve employment conditions.
JEL: F01; J40; O15

The Middle East and North Africa (MENA) are of various political regimes with different governance levels. This region is a multi-lingual, populous and resource-abundant area in the world, too.  This paper aims to explore the determinants of political stability (instability) in the MENA over the period 2000-2014. The estimation of panel data model indicates political stability stems from natural resources rents, socioeconomic status and institutional quality. The proper allocation of these rents to productive investments, and welfare-enhancing efforts, the decrease in misery index and any increase in government effectiveness and/or rule of law result in political stability in the region. The policy makers in the region need to make sound fiscal and monetary policies in order to reduce gender and income inequalities and invest in enhancing human prosperity. Regarding civil rights and freedoms, and establishment the voluntary and nongovernmental organizations are socio-political requirements in shifting this developing bloc to high levels of development.
JEL: I32, O17, P16

With the development of digital technologies, the importance of intellectual property becomes a leading for the development of the creative economy, the structuring of the creative industries, their classification and the measurement of their economic contribution. The lack of a unified international conceptual basis on these issues creates a number of challenges for the identification of the creative economy and the determination of its economic share in the economy as a whole. Existing economic models based on the understanding that creativity and knowledge are the required classification criteria do not meet the requirements of the business environment for clear structuring in the creative sector and determining its economic activity. The need to respond to the emerging need allows the development of a new economic model – the one of the intellectual property system.
JEL: А20; К0; L1; L7; M3; О3; Z1

The circular economy is based on three basic principles: reduction, reuse and recycle, which can be successfully implemented with the help of transport, which is viewed as a key role in logistics. In the present paper, this idea is developed by performing a theoretical overview of the essence of the circular economy and the impact of transport on the environmental situation of Bulgaria is analysed, in order to open up opportunities for the application of advanced solutions to protect the environment. These opportunities are associated with the implementation of a circular economic model in the country and specialization in the Bulgarian economy in the sector of production of biofuels, recycling of end of life vehicles and tyres.
JEL: L62; N70; R40

In the article the place of business risk theories in the structure of theoretical background for processes of informational-communicative technologies introduction in the national economy. In addition, the relationships in the structure of risks theories for ICT introduction in conditions of the development of the national economy are outlined. The theories and concepts of business risks are considered and their significance for the revitalization of the national economic system development and improving state regulation of the economy are described.
JEL: D81; L83

In the last years the main objective of most of the European strategic documents concerns establishment of sustainable and competitive transport system while promoting the development of secure, safe, reliable, energy effective and environmentally friendly transport modes such as inland waterway transport. The free capacity of European inland waterways provides opportunities for transportation with no traffic jams in the living areas; oversized and bulk cargoes, less green house gas emissions, compared to the road transport. Thanks to the development of the information and communication technologies (ICT) much more innovative vessels, which are economically efficient and environmentally friendly are used. Improving the technical specifications of Danube river fleet is of great importance for the development of the transport sector in the separate countries in the region. This fact is also proved by the growth rate of the inland waterway modal split during the last 5 years in the West-European countries such as Germany (12.6%), France (4.3%), United Kingdom (13.4%), Austria (5.1%), the Netherlands (39.1%) (EUROSTAT, 2016) compared to the road and rail transport.
In this regard the main objective of the current study is to analyze, as an example of Bulgaria, the development trends of Danube river fleet and as a result the specifics of its management will be revealed. The following economic indicators are analyzed: Danube fleet performance, number and capacity of vessels, coefficient of capacity usage and average stay of ships at ports for handling activities. These indicators allow the strengths and weaknesses, as well as the threats and opportunities of river fleet to be assessed and also measures for its development to be proposed.
The proposed model for analysis could be successfully used for studying the specifics of river fleet of other countries with transitional economies.
JEL: R49; O31; Q56

The study investigates imbalances of business demography of regions NUTS 2, Bulgaria, which of them are key determinants of regional economic growth disparities; compares business demography at the time of Bulgaria's accession with the beginning of 2014-2020 programming period in EU; determines the impact of key factors on the dynamics of business demography. Methods: The study applies comparative, variance and regression analysis in business demography and economic growth. A statistical test was done of the relation between some indicators and test of correlation between the coefficient of variation of regional growth and the variation in business demography. Results: Differences in GDP per capita are strongly related to differences in the number of NFC/1,000. Average dependence of differences in GDP per capita on the differences in the number of industrial enterprises and employees has been found out. Moderate negative relationship was observed between GDP per capita and the number of dead companies, as well the number of employed in services. Conclusions: Business demography is strongly influenced by economic processes at national and international level. Regions react differently to the socio-economic impacts. Attention needs to be drawn towards business environment, which is determined by the state, improving regional policy and measures to business environment in the companies.
JEL: R11

Increasing concentration in retail trade due to the expansion of physical outlets, the proliferation of online stores and the construction of retail chains results in changes in the bargaining power of retailers. Such changes are further facilitated by the accelerated process of merger, purchase and introduction of own-brands.
This work aims to offer a comparative analysis of the structure of food products manufacturing, wholesaling and retailing in Bulgaria and it studies the level of gross margin in retail trade to research the power of retailers as buyers in the sector.  This study makes an overview of the theory of the retail buyers’ power in the consumer goods supply chain. The paper further explores changes in the concentration of production, wholesale and retail in Bulgaria between 2001 and 2015 by analyzing the market share of the four companies with the largest sales volume and bargaining power of retailers measured by the level of gross margin.
JEL: M21