-
Stoycho Dulevski
DIGITAL PERMANENT ESTABLISHMENT
Summary:
The permanent establishment (PE) has always been of interest in the field of international taxes in the taxation of profits of foreign enterprises in the source state. Over the years, the PE concept has undergone a number of changes. Their manifestation is reflected both from theoretical and practical perspective in connection with the variety of cases on this matter. Over the last years, the idea of digital PE has been subject of discussion both at worldwide and at European level. The current study analyzes the possibility of its introduction through the double tax treaties (DTTs) and the European Union law (EU law). In this regard, the measures undertaken in the legislation of different states are also examined
-
Konstantin Kolev, Maya Tsoklinova
ECONOMIC INTERVENTIONISM UNDER PANDEMIC CONDITIONS: SIMILARITIES AND DIFFERENCES ON EU LEVEL
Summary:
The aim of this article is to classify 25 EU member states into homogeneous groups based on the relative shares of GDP of eight subgroups of government expenditures on economic affairs (according to the Classification of the Functions of Government - COFOG) and thus compare the extent of their governments’ intervention in economic affairs. The homogeneous groups were defined by means of a non-hierarchical cluster analysis (K-means) method using the Euclidean distance as a measure of dissimilarity. The results of the clustering of the 25 EU member states by government expenditure by economic function (according to COFOG) reveals the similarities and differences among these countries in terms of their economic interventionism. They also define which economic affairs need government intervention to mitigate the negative effects of the COVID-19 pandemic.
-
Borislav Emilov Boyanov
EUROPEAN CHEMICAL INDUSTRY – CURRENT STATE AND CHALLENGES
Summary:
The European chemical industry is one of the major and most important industrial sectors of the Community economy. The present paper aims to present an analysis of its current state and, on this basis, to highlight the main challenges it must address in the coming years. The presentation of the main characteristics of the chemical industry on a global scale, which gives a clearer idea of the state of the industry as a whole also plays an important role in the study. The following main conclusions are drawn from the analysis made. First, an increase in the share of chemical substances and products in the EU’s total exports and imports, which determines the growing importance of the sector to the European Union. Second, the European chemical industry is still lagging behind China on a global scale due to a variety of reasons, including the country’s industrial policy and sector reforms. Third, in the future, the industry will have to cope with a number of challenges in areas such as the environment, international competitiveness, sustainable development and the circular economy.
-
Milka Bakyrdzhieva
Women in Power and Decision Making
Summary:
The article treats gender equality in Bulgaria and gender equality in power and decision making, in particular. The general review of the problem is followed by an analysis of women’s participation in the process of power exercising and decision-making in the aspects presented in the third priority area of the European road map. The area is entitled ‘Encouraging gender equality in power and decision making’ and covers three aspects: political participation and representation of women; women in senior executive position in economy (overcoming the vertical segregation); women in science. At the end of the article, there is a practical research on women’s participation in power and decision making.
-
Atanas Damyanov
ON A REVITALIZED, VIBRANT, AND PROSPECTIVE PHENOMENON
Summary:
The article comprises four sections – an introductory executive summary; a discussion of the Neo-classical concept of the Great Silk Road in Part One; the response of the USA and the EU in Part Two; and a detailed conclusion.
The introduction describes the tectonic shift in the global economic triad (in the past, the present and the future) underlining the dynamic trends in the economic mainstream.
Part One presents an analysis of the revival of the Silk Road and its substantiation through the One Belt – One Road initiative and justifies its multi-vector diversification.
Part One discusses the negative implications of the Rust Belt in The United States of America. Having failed to undermine China’s initiative, the US launched their Blue Dot Network project whi9le the EU modified the original initiative into a European Silk Road.
The extended conclusion reviews the second- and third-level synthesis to define the Belt Economy as an economic trend such as the digital, entrepreneurial, partnership, narrative, etc. types of economy.
-
Delcho Poryazov
Economy and Society: Highlights
Summary:
The pattern of the economic system has undergone dramatic changes over the past century, especially in terms of global markets. Golden standards are now part of the history. The US dollar has been an international monetary unit since 1944. Sixty years later, the Euro appeared. The trend in the development of economic processes indicates that future global markets will be the product of the national currencies of the countries with the most advanced economies. This trend is promoted by the process of globalization. On the other hand, state intervention in the economy will be indispensable in near future. Not only is there room for such intervention, but the need to intervene is growing more and more immediate. However, it is people who have an essential role to the development of the economy, since no economic system could exist without people. It is people who ‘breathe life’ to the economy. Economy was invented by people for the sake of people, i.e. to provide for their existence. Hence, the focus of economy must be on people. It is the economy which should exist in favour of people, not people who should exist in favour of the economy.
-
Lyuben Kirev
Knowledge as an Economic Resource and a Source of Wealth
Summary:
The realisation of knowledge as a major factor in production on the one hand, and also its main product on the other, has provoked the necessity to clarify its nature as an economic category in a knowledge-based economy. This article examines the ambivalent nature of existing knowledge as a public and private source of wealth, the possibilities for transforming it from a private to a public source of wealth through “overflow“, and the pros and cons of possible paths for advancement in the field of research and development. Special attention has been paid to the characteristics of knowledge as an economic category: the specific way of expropriation, preserving usefulness and self-expansion in the process of consumption; changes in the nature and in the mechanism of accumulation and also changes to property relations in a knowledge society; inseparability from the owner as a personalised source of wealth.
In terms of content, the article complements and builds on the ideas put forward by the author in the plenary paper entitled, "Knowledge as an Economic Category” presented during the seventy-fifth anniversary conference at th D. A. Tsenov Academy of Economics in Svishtov.
-
Mariam Voskanyan, Hripsime Gabrielyan
MEASURING THE IMPACT OF FISCAL POLICY ON THE ECONOMIC GROWTH OF ARMENIA
Summary:
The key objective of macroeconomic regulation is to achieve sustainable economic growth and development in the long term. At the same time, within developing economies, the task of ensuring sustainable economic growth in the long term faces the failure of institutions, and as a result, the ineffectiveness of the main mechanisms of macroeconomic regulation, especially those that have a long-term and ambiguous impact on the economy. The purpose of the study was to assess the impact of fiscal policy on economic growth, as well as to find fundamental common ground for increasing the impact of basic instruments on economic activity by improving transmission mechanisms.
The methodological basis of the study was a review of theoretical and practical models of the fiscal regulation impact on economic growth, known in the scientific literature, as well as approbation of the most optimal ones considered using the example of the Armenian economy. The result of the study was the conclusion that in the current format, the fiscal policy of Armenia does not have the proper positive impact on the rate of economic growth, and therefore requires a fundamental revision and the need to develop an appropriate strategy aimed at ensuring sustainable economic growth in the long term.
-
Nikolay Kalistratov
THE SHADOW ECONOMY AND TAX EVASION – BEHAVIORAL ATTITUDES AND COUNTERMEASURES
Summary:
Taxation, corruption, excessive regulations, and ineffective governance stand out as primary drivers behind the emergence of the "shadow economy" (also known as the "grey," "informal," or "unregistered" economy). The prevailing theoretical models suggest that these variables are closely inter¬related and can lead to either a positive or negative balance. The positive balance is characterized by stable institutions, light regulatory burdens, a broad tax base, often high taxes and revenues, and a small size of the shadow economy. Conversely, the negative balance involves unstable institutions, excessive and burdensome regulation, diverse tax bases, low revenues, and a significant size of the shadow economy. The larger the tax wedge (the difference between the total labour cost and income after taxation), the larger the informal economy becomes. The aim of this study is to present the results of an empirical field research on employer and employee attitudes toward the shadow economy, along with a discussion of effective measures to limit the "grey sector."
-
Rosen Kolev
INDUSTRY 4.0 AND KAIZEN COSTING 4.0 – OPPORTUNITIES FOR DEVELOPMENT OF COST MANAGEMENT SYSTEMS TOWARDS CIRCULAR ECONOMY
Summary:
The importance of management accounting and cost management systems for industrial enterprises is constantly growing. In the conditions of the fourth industrial revolution, management systems of economic agents need to adapt to the new economic environment. This article is an attempt to present the influence of Industry 4.0 on a specific cost management system - Kaizen costing. Additionally, it presents the possibilities for the application of Industry 4.0 and Kaizen costing in the circular economy, which has become the main economic perspective for the EU countries.
-
Victor Yotzov
CONVERGENT ECONOMY – A CRITICAL REVIEW OF BULGARIA’S INTEGRATION IN THE EU
Summary:
This article was written on the occasion of the presentation of the book Converging Economy by Prof. Garabed Minasyan, DSc, which was organized by the Union of Economists in Bulgaria with the courtesy of the Prof. Minko Rusenov, PhD Foundation. During the discussions, economists from various universities and scientific institutions presented their views on the role of economic convergence in the modern development of Bulgaria.
-
Petko Angelov, Margarita Mihaylova
METHODOLOGICAL ASPECTS OF TEACHING CIRCULAR ECONOMY
Summary:
Circular economy is a new area of academic knowledge, which requires the development of both new learning content and elaboration of the methodology used in teaching the subject matter. This paper supports the view that the educational process comprises several key components that work together to facilitate effective teaching and learning. These components may vary depending on the broader context and the specific objectives and approaches used. Thus, when planning the circular economy teaching process, it is essential to formulate what we want to achieve (learning objectives) in the specific context of the subject taught. On this basis, the paper aims to present in a discussion plan the main components of the methodology for academic teaching on the problems of the circular economy.
-
Stoycho Dulevski
PERMANENT ESTABLISHMENT
AND FIXED ESTABLISHMENT IN THE CONTEXT OF THE SUBSIDIARY AND THE DIGITAL ECONOMY
Summary:
The purpose of this paper is to present some challenges regarding the concepts “permanent establishment” (PE) and “fixed establishment” (FE) in the context of the subsidiary and the digital economy. These issues are some of the most discussed topics in the field of international and European tax law, which determines their relevance and growing research and practical interest.
-
Elka N. Syarova
CHANGES AND TRENDS IN THE EMPLOYMENT STATUS
OF UNIVERSITY GRADUATES IN BULGARIA AND THE EU
Summary:
This research focuses on the ongoing changes and the new challenges faced by labor in the process of transition to a new type of economy. It is structured in two parts. The first part systematizes the main changes in the characteristics and requirements to labor in the context of the formation of a new economy and the transition to a digital one. The second part makes an empirical analysis and draws up the specific aspects in the dynamics of the indicators of the employment status of university graduates in Bulgaria and the EU which are relevant to the latest changes in the increasing imple¬mentation of more complicated mental labor. By applying methods of fore¬casting, the author brings forward certain short-term trends in the fluctuations of the relative ratio of the employed persons with a university degree in Bulgaria and the EU. The research implements the methods of analysis and synthesis, the means and methods of empirical-descriptive, as well as the econometric analysis.
-
Shteryo Nozharov
TRANSACTION COSTS IN COLLECTIVE WASTE RECOVERY SYSTEMS IN THE EU
Summary:
The study aims to identify the institutional flaws of the current EU waste management model by analysing the economic model of ‘extended producer responsibility’ and collective waste management systems and to create a model for measuring the transaction costs borne by waste recovery organizations. The model was approbated by analysing the Bulgarian collective waste management systems that have been complying with the EU legislation for the last 10 years. The analysis focuses on waste oils because of their economic importance and the limited number of studies and analyses in this field as the predominant body of research to date has mainly addressed packaging waste, mixed household waste or discarded electrical and electronic equipment. The study aims to support the process of establishing a ‘circular economy’ in the EU, which was initiated in 2015.
-
E. Chengelova
A holistic approach to examining the shadow economy
Summary:
The article provides a brief retrospection of the methods which are applied within the framework of various paradigm approaches for studying and explaining shadow economy practices in Europe and worldwide. The author offers and explains an original methodology for researching shadow economy, based on her experience with one of the Bulgarian teams working in the sphere of measuring illegal economic activities. The article proves that due to the complex and controversial nature of informal economic activities examining them requires the application of a holistic method. For this reason a combined research strategy has been developed. It uses a unified definition of shadow economy and is realized through a system of related sociological surveys while the primary, raw information is obtained through qualitative and quantitative methods. The overall conclusion resulting from the applied research strategy is that the study of shadow economy with the help of sociological approaches is methodologically consistent and constructive – both with respect to obtaining knowledge and the possibilities for developing and correcting national policies.
-
Nikolay Todorov
THE JAPANESE MODEL OF TRANSITION TO A CIRCULAR ECONOMY
Summary:
The article focuses on the most important stages of enforcement and implementation of the principles of circular economy in Japan in terms of the reasons for and the consequences from the emergence and development of the circular resource-saving model in the country. It discusses the transition to an environment-friendly economic model, its importance for people’s health and relevance to the needs of the modern society. The systematic role of Japan’s regulatory framework is considered in terms of the implementation of a cyclical environment-friendly economic model and policies intended to strengthen public-private partnerships and promote the circular economy among a wide range of stakeholders. It also discusses the application of the ISO14001 international standard in Japan and presents several indicative circular business models successfully implemented in Japanese companies.
