Issue 4, 2007

In this paper we investigate the long-run relationship between financial development and economic growth in South Africa for the period 1970-2003. The empirical investigation is carried out in a vector autoregression (VAR) framework based on the theory of cointegration and error-correction representation of cointegrated variables. The results of the cointegration analysis provide evidence of the existence of a long-run relationship between financial development and economic growth. The empirical findings in the paper show a two-way causality between financial development and economic growth.

JEL: O11, O16, O53

In the new conditions of creating a knowledge-based economy the role of R&D expenditures strongly increases and changes in its character. This increases the interest in the matters of qualitative defining of the dependency between them and the economic growth.
The study analyzes the connection between the R&D expenditures, including for human capital, and the lasting economic growth (GDP rate) for the EU countries, compared with USA. The specifics in the influence of these expenditures on the economic growth in these countries are outlined, special attention is drawn to Bulgaria.
JEL: O3, O4, O57, C22

The study analyzes the foreign trade goods exchange of Bulgaria with the EU and EFTA countries in the period 1988-2003. The analysis uses evaluation of the statistical time series for the studied period. The main reasons for the state of the goods exchange with the EU and EFTA countries are mentioned. The leading branches and goods in the exchange are defined and the main tendencies in the export and import are outlined. The effect of the concluded agreements for free trade is evaluated.
JEL: F1, F14

The matters concerning the identification and regulation of a cluster are complex, contradictory and not much studied. One of the main problems in the cluster analysis is the study of the mechanism of its functioning. In this connection there is a need for a study of the specifics concerning the localization, functioning and development of the enterprises in clusters. This would allow developing the best solutions in the planning of the regional infrastructure and in this way encouraging the development and accession of the new enterprises to the cluster.
The different regional conditions are fixed in short-term perspective and directly influence the local profile of the enterprises as: physical and climate conditions, location of the region, social demographic factors, unemployment level, etc. Most of the main characteristics of the differentiated regional environment like workforce qualification, level of technology and management know-how, social and institutional structures are also relatively stable. Therefore the opportunities for accelerating the development should be explored in the additional perspectives, which the cluster of enterprises suggests, including the small and middle-sized ones, in connected branches.
JEL: R11, C13, C14, L25, O18

The article examines the specific conditions and characteristics, which underlie the development of the informal economy and competitiveness and their interrelation in transition economies. A system of competitiveness indicators has been defined, which were subsequently, taking into account the impact of the informal economy. The applied indicators enable the investigation of the determinants of competitiveness. The applied indicators were designed to reflect the specificities. transition countries. The analysis of these indicators reveals the specific characteristics of the informal economy and competitiveness in transition economies.
JEL: O17, O43, P3

In the last 45 years the production of buffalo milk in the world increases with much higher rates compared with the cow milk. This is a result of the process of restructuring of the buffalo breeding towards production of milk and meat.
In Bulgaria this restructuring ended with the full replacement of the aboriginal Bulgarian buffalo for work, milk and meat with the new breed Bulgarian Murrah, which possesses high productive qualities for milk and meat. It is used as a genetic source for improving the milk productivity in dozens of countries on the four continents of the world.
In the next years, as a EU member, the national economy of Bulgaria will endure significant changes, which will influence positively the agrarian production and respectively the buffalo breeding. Therefore the view in the future of this perspective branch requires a profound analysis of the buffalo breeding, as well as the business environment, in which it will develop.
Based on this analysis and the specific biological specifics, methodological and methodical conditions in the study, the development of the buffalo breeding in 2005-2020 is foreseen.
Special place in it occupies the production of high quality tribal material for the domestic needs and the needs of the foreign markets. Suitable productive structure of acknowledged Bulgarian brands of milk and meat products with high VAT is mentioned.
The tendencies and directions towards the perspective economi-organizational structures, technological changes and the increase of the incomes on the whole chain from the connected with the business of buffalo breeding activities are defined. Necessary attention is drawn to the contemporary requirements to the comfort of the animals, ecological purity of the final food products and the protection of the environment from pollutions.
JEL: Q13