Issue 6, 2021

In this novel paper, we make use of a non-parametric method known as Data Envelopment Analysis (DEA) to analyse the 31 most infected countries during the first 100 days since the outbreak of the COVID-19 coronavirus for the efficiency in containing the spread of the virus – a question yet to be answered in the literature. Our model showed 12 of the 31 countries in our sample were efficient and 19 inefficient in the use of resources to manage the flattening of their COVID-19 contagion curves. Among the worst performers were some of the richest countries in the world, Germany, Canada, the USA and Austria, with efficiency between 50 and 60 per cent – more inefficient than Italy, France and Belgium, who were some of those hardest hit by the spread of the virus.
Keywords: Pandemic; COVID-19; Flattening the Curve; Data Envelopment Analysis; Non-Pharmaceutical Interventions; Healthcare; Technical Efficiency; Healthcare system efficiency barometer
JEL: C6; D2; I1

The aim of this paper is to study the existence of an environmental curve for the case of Algeria using the two-degree polynomial function presented in the linear and semi-log-linear and log-linear form in order to detect the effect of international trade and people on environmental quality. To reach our goal, we have structured our paper around two elements: Firstly, we will present a brief review of empirical and theoretical literature on the relationship between economic growth and the quality of the environment. Secondly, we will deal with the empirical study evaluating the impact of the issue of on economic activity. We have found that the environmental Kuznets curve (EKC) exists in Algeria and the GDP per capita and the population have a positive impact on the emission of the . Furthermore, trade openness has a negative impact. In addition, there is a stable long-term relationship between emissions of and the others various explanatory variables (GDP per capita, international trade and population).
Keywords: environmental quality; environmental Kuznets curve; economic growth; population; international trade; trade openness; environmental pollution; autoregressive distributed lag
Jel: C12; C22; Q56

The past two decades have witnessed the emergence of various types of crises – financial, economic and even health crises affecting adversely the economic development of countries worldwide. This has highlighted the role of public revenue and public spending as drivers for both economic recovery and the achievement of economic policy goals such as price stability, high economic growth and low unemployment. Despite the potential of fiscal policy to influence economic development, more active use of public spending and hence its increase does not always result in increased well-being and better macroeconomic performance of countries. This study examines the macroeconomic performance of countries from the European Union (EU) and Balkan countries over the period from 2004 to 2019. For the purposes of assessing macroeconomic performance and public spending efficiency, it uses Data Envelopment Analysis (DEA), a non-parametric method for estimating technical efficiency through the use of a single input – public spending as a percentage of GDP, and several macroeconomic indicators as outputs. Our findings indicate a decrease in the efficiency of the countries under examination and larger differences in terms of macroeconomic performance during the crisis years 2009 and 2012. Moreover, countries with more significant public spending in GDP terms tend to be less efficient than others, that have lower public spending levels.
Keywords: efficiency; public sector expenditure; fiscal policy; DEA
JEL: Е61; Е62; Е10

This study revisits the relationship between energy consumption and economic growth in twelve net oil importing countries that are divided between two panels, namely, low net oil importing countries and high net oil importing countries for the data from 1971 to 2014. The study estimates a panel vector error correction model (VECM) and panel variance decomposition analysis and it is found that: Firstly, the carbon emission is an important factor in the interlinkage between the growth and energy. The economic growth evidently appears to drive energy consumption. Further, the carbon emission increases with an increase in economic growth and energy consumption and this inference could be drawn in the case of both groups of countries. But its magnitude is more pronounced in low oil importing countries. Secondly, a uni-directional causal relationship running from economic growth to energy consumption is detected and hence supports conservation hypothesis regardless of the level of oil import dependency of the countries. It implies that energy conservation policies do not negatively impact the economic growth of the oil importing economies. Therefore, countries, irrespective of the level of net oil import, are suggested to pursue a low carbon economy through sustainability practices, preferably in high carbon density sectors such as constructions and infrastructure, industries and power. This paper contributes to the literature by initiating the discussion on the energy-economy nexus in net oil importing economies by incorporating environmental factor.
Keywords: energy use; economic growth; carbon emission; net oil importing countries; GDP, CO2; Panel VECM
JEL: C23; E01; Q56

With no definition of energy poverty in Bulgaria and with obligations for decentralisation and decarbonisation of the energy sector, our country is entering a period of new commitments related to the Green Deal. What measures will the government take for these purposes in the households’ sector, and how will this affect energy poverty levels? Will the measures have a significant effect on reducing energy poverty levels and take us out of the top position for this indicator in the EU? The article attempts to answer these questions by assessing the impact of a set of policies to reduce energy poverty among households, using anonymous data on energy income and expenditure from the 2017 Survey of Household Budget Surveys with a sample of 2950 households.
Keywords: green deal; policies; energy poverty
JEL: I32; I38; P36; P46; P48

The article is targeted at exploring determinants associated with the internationalization process and related performance of Bulgarian enterprises. Examined are data on a macro-level such as national and European statistical data and export data for comparative purposes, as well as firm-level determinants and measures. Thus, the study conducted as part of a research project integrates and builds on previous research of the authors, with an addition of a macro perspective. By providing a macro viewpoint and longitudinal perspective on internationalization modes, it attempts to enrich the understanding of the internationalization of SMEs mostly explained by individual and organizational determinants. The empirical sample includes 500 Bulgarian enterprises, both family and non-family, with diverse internationalization patterns and performance. Findings show that export is characterized by a relatively stable contribution for economic growth, balanced geographic scope, but an unfavourable structure where this contribution is mostly made by low value-added goods, low share of high technology export, and low share of firms’ export sales. The typical international involvement of Bulgarian SMEs is by less complex and resource-intensive modes following both reactive and proactive motives. Their international performance is characterized by a low degree and scope of internationalization and preference of geographically and culturally proximate target markets.
Keywords: internationalization; competitive performance; determinants; models; macro-level; firm-level; individual-level; SMEs
JEL: D22; M16; L25; L26

The article aims to define the management mechanism of complex, open dynamic systems with human participation. The following parts of the system life-cycle were identified and unified in the theoretical scope: general and specific compositional elements of repeating changes, marginal index boundaries, the dynamics of the compositional elements of the life-cycle, the key points of the change in the character of the index dynamics. In the practical scope, two common trends of socio-economical system life-cycle management are considered. The first trend is the regulation of the comprising element ratio, which provides the increase in the duration of the maximally effective performance of a functioning system. The second trend is the regulation of the reproduction time of a new system. The systems life cycle aspects are investigated in almost all sciences and studied within many disciplines in the field of higher education. Therefore, deepening the mastery of scientific and methodological foundations of the life cycle of a complex open dynamic system is useful for any subject in everyday and practical activities. A human being – in the formation of own human capital. Families – when it is formed, the birth of children, the distribution of income and expenses. Companies – for efficient business activities. As well as local communities, local self-government bodies, public authorities and global entities within their profile activities. The results of the research provide the possibility of the development of applicable mechanisms for effectiveness and stability enhancement of managerial and entrepreneurial operation in business projects.
Keywords: life cycle; cyclicality; system; structure; management; human being
JEL: A13; B40; D91; E39; P00

This study systematises the fundamental dependencies between demographic development and labour force and identifies key changes in the labour force in the country over the last two decades. A theoretical model was presented featuring the formation of the labour force focusing upon demographic factors. The place of reproduction of labour force among the systems of public activities and the classification of factors impacting it were defined by applying a system approach. Some leading tendencies in the evolution of the labour force in the country during the period 2001-2019 were featured. To achieve a fuller and more objective evaluation, an international comparison was made, including four European countries: Greece, Hungary, Czechia and Sweden. The analysis includes some indicators of general and age-specific levels of economic activity, working-age population replacement rates and the age and educational structures of the labour force and inactive persons.
The received results testify that the tendencies, observed in Bulgaria, are close to those, registered in the selected European countries over the reference period. There is, however, a number of particularities and specificities of their manifestation in the country and these are key or the reproduction of the labour force in Bulgaria.
Keywords: labour force reproduction; generational model; economic activity levels; labour force ageing; economically inactive population’s structures
JEL: J11; J21; J18

Many companies in the market today face the challenge of finding an effective way to fulfil their role as good corporate citizens – companies that “do well by doing good”. The authors of the study consider the Corporate Social Responsibility as a practically applicable method to achieve this balance. The study provides a comparative analysis between companies recognized as socially responsible in Bulgaria, Romania and Serbia, by presenting the main aspects of the initiatives that lead to these companies to be identified as a benchmark in the implementation of CSR policies. On this basis, the authors of the study: (1) outline key areas of CSR in the countries concerned by defining similarities and differences in the scope and the content of the initiatives that companies initiate and/or engage in; (2) highlight good practices in the field of CSR, where there is a possibility for transfer of know-how among companies from the three countries; (3) identify areas with underdeveloped potential in which companies in the countries concerned can focus their efforts and resources in order to optimize their engagement in the field of CSR. The results of the conducted analysis are compared with the point of view of consumers who take both the roles of beneficiaries of the effects of socially responsible behaviour of companies and of active participants in market relations, having the power to motivate and require companies to be conscious corporate citizens. The purpose of the comparison is to find unused positioning opportunities through specific actions related to CSR in specific consumer segments and/or to outline opportunities for optimizing communications in this direction.
Keywords: sustainable development; Corporate Social Responsibility; corporate social initiatives; social responsibility awards; qualitative research
JEL: M31

The study finds that there is a serious positioning problem for bee products from the Ruse Region – strong competitive pressure, product parity and difficult differentiation. This makes positioning extremely important to their success, but also – very difficult. It was found that the region, with its natural, ecological, cultural and historical factors, as well as territorial specialisation based on these factors, is the bearer of authentic uniqueness, which is the foundation for differentiation and positioning of the bee products and services produced on its territory. Branding of bee products from the Ruse Region plays a key role in differentiating them. It can be based on natural factors, sorts, standards, technologies, domain name, brand. From the natural factors and the certified technologies, the leading positions of Bulgaria in Europe in respect to biodiversity and biotechnology in the beekeeping sector shall be used, because they ensure high biological value and quality of the bee products from the Ruse Region. Brands shall also be based on them, and the domain name plays a key role in the positioning on online markets. Positioning can also be based on marketing tools, which play an important role in differentiating competitors as well as consumer perceptions and associations. Positioning on organisational markets shall emphasise the functionality of regional apiculture products by nature (biodiversity, ecology, quality), and on consumer markets- to emphasise a single basic concept – health.
Keywords: region; differentiation; branding; positioning
JEL: M31; Q13