Issue 2, 2019

Our contribution focuses on the transformations of the Chinese economy, on its growth trajectories, notably its internationalization, which was made possible by the adoption of an export-led growth model followed by a catch-up and export of good to higher value-added.
Foreign direct investment played a decisive role in this process. Inbound capital has contributed to the development of new sectors (automotive, information technology) and new specializations. Financial resources accumulated by China, then, fueled the outflows of capital in the form of acquisitions and greenfield investments around the world, especially towards developed market economies.
After recalling the phases of the transformation of the Chinese economy, the importance of Chinese outgoing FDI and their contribution to the evolution of trade in services between China and the rest of the world, the recent development of trade in services, which are heavily dependent on FDI is analyzed.
JEL: F21; F43; O1; O4; 053

After the 25 years of economic reform, a restless debate is still going on that is fiscal policy still has a major role to play in Indian economy or not ? This paper tries to find out the short run and long run relationship of fiscal spending with the growth of India. For estimation, we have applied Auto Regressive Distributed Lag (ARDL) model and augmented causality test of Toda-Yamamoto. Results reveal that Gross Fixed Capital Formation is positively related to growth in the long run. In Short run, Military expenditure, tax revenue and inflation are negatively associated. The Causal analysis reveals that (i) Growth causes gross fixed capital formation, (ii) Military expenditure causes growth, (iii) Growth causes tax revenues and (iv) Inflation causes growth. Based on the results, suitable policy measures also discussed in the last section of the paper.
JEL: E62; O4

In this scientific paper financial wealth inequality (FWI) in Bulgaria during the period of 2005:Q4-2017:Q4 has been analysed. Households’ bank deposits are the best-known and most popular means for storing financial wealth (FW) among local individuals, assuming to be relevant proxy for calculating FWI measures. By using real data on quarterly bank deposit’s distribution we calculate Gini coefficients, Top 1 percentile and Top 10 decile FWI indicators. Using these variables as dependent variables several econometric models have been developed using the ARDL bound testing approach of Pesaran and Shin (1999) and Pesaran et al. (2001). Long-term and short-term drivers of the FWI has been identified. Econometric results suggest that financial deepening, stock prices, interest rates and inflation contributes to FWI in the long run. Some of those variables help however decrease the wealthiest decile and percentile’s financial wealth. House prices are having limited negative impact on the FWI. In the short term higher FWI in the past is indicative for higher values of the FWI measures in the future. Also, positive short-term relationship is maintained by the stock market performance Higher financial deepening is in negative association with the quarterly change of the FWI in the short-run. Amon the important short-term determinates of the FWI are also: interest rates on loans, general price level, introduction of flat tax rate of 10%, the Great recession, and Corporate commercial bank default on liabilities. Some of these factors have the opposite meaning for the FWI measured through the wealthiest percentile and wealthiest decile.
JEL: C32; D31; D63; E21

In the present paper, the author aims to theoretically highlight the transport in logistics and to focus on some options for optimal solutions and based on analysis of the dynamics in the development of the final energy consumption in the transportation sector of Bulgaria, to reveal the role of technologies as a means of improving energy efficiency in the country's transport. In order to achieve this goal, transport is theoretically defined in the context of the overall reproduction process, its role in the supply chain is highlighted, and in this relation the system approach is reviewed as a way of optimizing transport costs. The different modes of transport are compared, as the comparative characteristic is one of the approaches that will allow to be taken transport solutions in line with the current requirements of economic efficiency and environmental friendliness.
The analytical part follows the dynamics in the development of the final energy consumption in the transport sector of Bulgaria for the period 2001-2017, differentiated by type of transport, in order to be able to highlight the specifics of the different transport alternatives with regard to the used energy sources. On the basis of the analyses made, conclusions are drawn that emphasize the established trends and the localized problems.
In the third part, the technological achievements in the field of automotive industry are presented as the main sources for improving the energy efficiency in the transport of Bulgaria.
JEL: L62; L91; Q01; Q49

In this article, specifics of the intellectual-informational product are reviewed based on a system and structural method: its binary structure and specifics of appropriation process are determined. The advantages of free licenses for authors of the intellectual products (employees) that appear in the possibility of receiving additional income from services of the intellectual-informational goods are determined. Theoretical and methodical basics of value and price formation of the intellectual-informational good are justified. The triple value-creating substance of the intellectual-informational good that represents abstract humanization, specific humanization and utility, that the consumer receives, is determined. A cost and result nature and direct connection of elements of the value-creating substance of the intellectual-informational good are determined. The forms of value of the intellectual-informational good are analyzed. A term “functional of complex valuation of the intellectual-informational good” that consists of cost function of essential efforts of the author of the intellectual product, growth function of essential efforts of the author of the intellectual product, cost function of essential efforts of producer of the storage medium and utility function of the intellectual-informational good for the customer is proposed. Recommendations for improvement of current methods of valuation of the intellectual-informational good are given.
JEL: B41; D11; D23; D46; J24; O34

The paper examines the specifics of the obligation and responsibility of employers to provide occupational health and safety in terms of their current state, the requirements, trends and the characteristics of the legal framework. A comprehensive analysis of the issues has been performed in their economic and labour law aspects and the corresponding conclusions and generalizations have been put forward with the aim to improve the practice of enforcing this legal construct.
JEL: J81; K31

The aim of this paper is to investigate the main Bulgarian corporate bond attributes, such as: size of issue, industry, currency, maturity and floating rate occurrence, from 2004 to 2014. In addition, important parameters such as the object of allocations of funds, collateral and the ownership concentration of issuers are exposed. Examples of prospectus clauses undermining corporate bond safety and soundness are also detailed and evaluated. 
Bulgaria’s corporate bond legislation is analysed in relation to the potential of loopholes allowing for issuers’ actions being taken against the interest of bondholders. The possibility of the former stems from loose norms of regulation permitting an ease alteration of base loan parameters.  Finally, the sample corporate bond performance is analysed in terms of defaulted and restructured bond issues from 2016 perspective.
JEL: G10; G23; G28; G30

The article analyzes a method for measuring the indicators ofthe stress resistance of the insurance company by means of microprudential indicators that provide an objective assessment of the sensitivity of insurance companies to various crisis situations. Detailed analysis of existing indicators of the assessment of the stress resistancef insurance companies is given and characteristics of their application during the scale measurement are described. The author was justified the effect of the level of stress resistance of insurance companies on the level of their risks.
JEL: G20; G22; G28; G31; G3