Issue 1, 1999

This paper formulates the concept for the hidden economy. A refine on the formal and the informal economy is made. It indicates the economic, administrative, normative-legal factors and reasons for its existence and the forms for manifesting of the hidden economy. It discloses the condition of the hidden economy in some West European and post-socialist countries and USA too. It gives different methods for measurement of the hidden economy that are concerned with the Bulgarian conditions.

In the study are examined problems, concerned with the manifestation of the hidden economy in Bulgaria in different periods of economic development. It is elaborated and applied different methods for evaluating its quantity for the Bulgarian conditions. It is revealed its influence on developing of the country's economy. They are described the economic and the social consequences and they are indicated different practical examples in front of the management, aroused by the hidden economy.

The research examines the state and problems of the investment activity in the transition. The trends and determinants of the investment activity in the national economy are analyzed. The financial sources for accomplishing of the investment activity in the non-financial public and private enterprises are characterized and the possibilities in this field are indicated. The conclusion is that their own investment funds, which depends on the size of net profit and depreciation charges are with highly limited potential. In the conditions of Currency Board, due to the danger of liquidity problems, the commercial banks follow a more careful and rather restrictive credit policy (especially for investment credits). This has a negative effect on the investment activity of enterprises, the managers of which rely mostly on credit resources. The foreign investment still remain main financial source for accomplishing the restructuring and technological renovation of the enterprises in the real sector.
The main directions of investment promotion in the economy are outlined. First, providing conditions to enterprises to form their own financial resources, directed by adequate investments towards structural and technological renovation of production, so as to achieve competitive development in future. To this end, the tools of tax and depreciation policy shall be used in compliance with national goals and priorities. Second, creating favorable investment climate, with relevant legal, institutional and economic framework. The implementation and strict abiding to the rules of the Currency Board will have a positive effect for the gradual formation of a more favorable economic environment. Given the present situation in the country, however, this is quite insufficient. The reduced investment risk, which is an important factor for potential investors, is related most of all to the success in fighting criminal and corruption phenomena. Third, creating better conditions for the attraction of strategic foreign investors. Fourth, increasing budget investments to the highest possible extent in the conditions of the currency board. Fifth, accomplishing the structural reform in the banking system, so as to restore it and make it able to perform its due functions, i.e. accumulation of savings and credit activities in the real sector on the basis of efficient rate of return.

This study focuses on the genesis of the theoretical logical schemes of the localization choice and the confrontation with the facts of the reality, in order to enrich the theory.
The attention is focused on the two directions of the theoretical studies of the localization choice - minimal costs and maximal profit. Synthesized are revealed some neoclassical standings of the problem and their evolution in time.
Analyzed is the role of the three directions of the economic restructuring which influence on the localization choice - reorganization of the production system, globalization of the economy, changes in the actions of the state, connected with the economic policy.

This study is an attempt to estimate and analys the links and relationships of the main elements and flows of the Bulgarian labour market at 90s in their simultaneity. For this purpose the econometric modeling is used, and in particularly the new approach from general to specific modelling and cointegration analyses.
In this connection the statistical properties of the variables and their possibilities to modelling are investigated. There are specified and estimated the econometric models describing the long and short-run relationships of the employment, vacancies, matching function, wages and prices. A simulation short-run econometric model of the Bulgarian labour market incorporating the error correction mechanisms (ECM) is build up and estimated. Characteristics of the properties and possibilities of the model for analyses, forecast and simulation of different labour market policies are made.

The main aim of this research is to investigate the investments in human capital (particularly in education and training) and the labour market from the qualitative aspect, as well as the relation between them. In connection with this purpose, the status and the changes in the labour market from the point of view of the educational-qualificational characteristics of the labour force and of the vacancies are analysed. The status and the dynamics of the investments in education and training are investigated. Characteristics of the main policies in the sphere of education and training and some recommendations for this area are made.