Issue 2, 2020

The goal of this paper is to examine the impact of public debt in six countries from South-Eastern Europe over the period 2008 to 2017, by applying three different panel methods: the fixed effects model, the GMM method and the system-GMM method. More specifically, we investigate if there is evidence of a non-linear (quadratic) relationship in this group of countries. The results of our study confirm that increasing public debt has a statistically significant negative influence on the GDP growth. Also, the results confirm the existence of a „U inverted” relationship, with a maximum debt threshold of about 58% of GDP. After this threshold, public debt is expected to negatively affect the economic growth rate, due to fear of public debt unsustainability higher interest rates, and severe budgetary consolidation measures.
JEL: E62; H63; О47

This article interprets facts regarding the accession to the euro area of selected (representative) EU Member States and the expected effects on the Bulgarian economy. In addition, the main risks of myths are identified, and the objective is to provide an objective view of the benefits and risks of the introduction of the euro in Bulgaria, respectively joining the euro area. The identification of the "critical zones" of possible negative effects is based on a precise examination of the experience gained in countries that have already introduced the single currency. This enables the measures aimed at joining the euro area to incorporate the necessary measures so that the positive effects dominate, which would justify the introduction of the euro in Bulgaria.
JEL: Е31; Е42

This article examines the fiscal stability of Bulgarian municipalities in conjunction with financial discipline, which is crucial for carrying out the criteria and indicators set up by Bulgarian Public Finance Act (2017). An evaluation model has been developed to assess the propensity of municipalities to observe fiscal discipline, which is a prerequisite for their financial stability. The study covers all municipalities in Bulgaria (265 municipalities in total) irrespective of their population size and economic potential. The evaluation in the model is complex and dependencies are drawn between the financial indicators that characterize the municipalities’ financial state and the fiscal disciplinе. The findings and the results of the model contribute to the existing literature on local public finance by empirically developing indices for assessment of the dependency of fiscal stability and fiscal discipline.
JEL: H10; H11; H7

Competitiveness management is both a subject, a goal and a challenge in the research and expertise of many scientists, analysts, researchers and managers. With its multidimensional and multilevel structure defining it, the category is regarded as a foundation for the functioning of both individual economic units and entire sectors and economies of countries. Recognizing that competitive enterprises are a major drive of the nation's competitiveness (Garelli, 2002), the focus is on the microeconomic aspects of the category, with a reasoned focus on industrial enterprises. All this determines the evaluation of the company's competitiveness as particularly significant, both theoretically and practically. In this regard, the present study presents an algorithm for the construction of composite indicators for its evaluation, as well as the results of its testing in micro and small enterprises from the wine-producing industry in the Plovdiv region.
JEL: L10; M21; L66; C01

Nowadays, products become increasingly complex, their development and production is a result of the application of a wide range of external ideas, technologies and knowledge. In the complex economy, it is impossible for any single enterprise to keep abreast of all modern technologies. In the production process enterprises include development of specialized knowledge assets, using a wide range of knowledge from different areas. At the same time, enterprises make their specialized knowledge assets available for usage by the other actors. Those activities are referred as open innovation practices. The great interest in applying the open innovation practices is a result of the positive impact that open innovation has on the enterprise performance and on the overall economic system as a central element in the modern knowledge-based societies. However, for successful implementation of the open innovation practices, which is essentially based on the cooperation between the key actors within the national innovation systems, government, academy and the business sector, there is a need for significant institutional support at a national level, a developed innovation system and a particularly developed system for technology and knowledge transfer. Hence, the paper primarily analyzes the institutional factors (national innovation system), with a view to the institutional and financial support in cooperation and knowledge transfer. At the same time, an analysis of the innovation of the Macedonian business sector is made, with particular emphasis on the application of open innovation practices in terms of the representation of the key model dimensions in the enterprises. On the basis of the analysis made, conclusions are presented and measures are proposed to improve the environment for applying the open innovation practices in the Macedonian business sector.
JEL: O36; O38; L52

In modern times, the business success of enterprises is increasingly the result of the development of science and the accelerated introduction of new advances. Innovations is becoming the key to success. Under these conditions, the importance of technology transfer is also becoming a main "strategic way of meeting the challenges of globalization in business" (Mayer and Blaas, 2002). With the increasing importance of technological transfer, increases the interest in the theoretical elucidation and empirical research of various aspects of its implementation in enterprises.
In view of the above, the aim of this paper is to propose a method for the preliminary assessment of alternative technology transfer options based on the use of the TOPSIS method (The Technique for Order of Preference by Similarity to Ideal Solution) (Hwang and Yoon, 1981). It allows an initial assessment and selection of technological transfer options on the base of preliminary selected important criteria. As a result, businesses can reduce the number of options that will later be subject to a more in-depth assessment, from the list of already selected ones, by choosing only those who have good potential and are in their capabilities. In this way the experts’ efforts are focused and their work, concerning the selection of a transfer option in which to invest, is also significantly relieved.
JEL: O32

Scientific research in the field of municipal financial policy covers a wide range of issues which include the issues analysed in this paper, viz. the theoretical foundations and the qualitative aspect of regional fiscal autonomy. The article explores the approaches to assessing the fiscal autonomy of local governments. The results of a detailed critical analysis conducted by the authors outline the merits and demerits of the normative and the positive approaches and justify the need for a balanced approach for assessing local fiscal governance. This approach is based on the idea that the process of extending the fiscal powers of local governments is part of a more general trend for public sector reforms to promote the principles of subsidiarity. The balanced approach was used for a qualitative and quantitative assessment of the fiscal autonomy of local governments in the Republic of Bulgaria. Empirical data were analysed to assess the financial capacity and relative position of Bulgarian municipalities in comparison with similar structures within the European Union (EU). The general conclusion is that the legislative measures for the implementation of the principles of local self-government are not sufficient for the achievement of an optimal ratio of local to state budget fiscal revenues.
JEL: Н71; Н72

The intensive expansion of the digital economy poses new challenges to the regulatory framework and corporate privacy policies for individuals. The enforcement of the EU's General Data Protection Regulation is triggering a new approach to the scope of personal data and the rules for their administration. There is a need for a complete reorganization of the ways in which websites study the behaviour and characteristics of online content users, which determines a change of the cookie policy out of the hidden internet area towards an unconditional need for explicit consent to their use for whatever purposes.
This work provides theoretical basics about the nature and variety of HTTP cookies as a web tool. It outlines what changes result from the introduction of regulatory instruments and corporate policies for the protection and administration of the personal data of individuals in real and electronic environments. On this basis, the use of cookies in modern webpages and sites has been explored, which serves to implement varied changes in the proposed internet content to achieve conversion and the resulting economic and social effects.
JEL: L86; K00; K19; K39

The aim of this paper is to examine the Facebook traffic of the project “Plovdiv – European Capital of Culture 2019” for the first quarter of 2019 using rates and indicators available from research. Applying quantitative analysis, the authors of this paper conclude that latent opportunities for development in a more positive way than the current situation have to be unlocked. The social media strategy can be specified through monitoring and “social listening”. Afterwards, recommendations are made how to increase awareness and reach a wider audience with the intent of engagement of more fans and followers in the 2^nd, 3^rd and 4^th quarter of the title-year.
JEL: М31