Business Environment in Bulgaria: the Impact of the Global Financial Crisis

摘要

The paper aims to analyze the key trends in the business environment in Bulgaria due to the global financial crisis. As a major indicator for the business environment is used the growth in gross value added (GVA) produced by economic sectors. The global financial crisis impacted all economic sectors in the country, hitting consumer and business confidence and eroding export opportunities and capital inflows. According to its main objective, the study is focused first on the drop of added value from Bulgaria during the last years. Second, an analysis is made on the structural imbalances of the GVA in Bulgaria by economic sectors. The changed position of Bulgaria at the world markets in the processes of globalization, after the collapse of the Council for Mutual Economic Assistance (CMEA) and since the country's accession into the European Union (EU) have been described. Third, an econometric study of Bulgaria's GVA produced by economic sectors before and after the crisis is made during the respective two periods. Chow test is applied in order to test the presence of a structural break. This reveals the impact of the global financial crisis on Bulgaria's GVA produced by economic sectors.