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Goolbahor Karimova
ANALYSIS OF INTERNATIONAL EXPERIENCE OF ATTRACTING FOREIGN INVESTMENTS
Summary:
The article considers foreign experience of attracting foreign investments by the example of the countries that most successfully attract foreign investments, and at the same time are the main countries investing in the economy of the Republic of Uzbekistan. The policy of attracting foreign investments to the Republic of Uzbekistan is being considered. Analyzed reg-ulatory legal acts, considered free economic zones, as a method of attracting foreign investment in the Republic of Uzbekistan. The conclusion of a com-parative analysis of the effectiveness of investment policy and their features in the context of countries is given.
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Valentin Milinov, Tsetan Pavlov
Opportunities to Improve the Portfolio Performance Based on Dividend Strategies and Equity Home Bias
Summary:
The article examines the equity home bias puzzle and the "Dogs of the Dow" dividend strategy under conditions of the Bulgarian capital market. It was found out that local investors hold 74.1% of their portfolios in domestic stocks, although ICAPM suggests weight of 0.007%, and the "Dogs of the Dow" strategy generates annual risk-adjusted hyper-profitability of 11.18%. Following the dividend strategy, combined with good international diversification provides good opportunities to improve portfolio performance.
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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.
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Atanas Damyanov
ECLECTIC VIEWS ON THE CONSEQUENCES OF COVID-19
Summary:
This research, with which we aim to penetrate through the Covid-19 fog, consists of four chapters.
In chapter one, very concisely, we identify the consequences of the 2008 crisis.
In chapter two, we have searched for biblical proof and philosophical explanations of the pandemic, upgraded with a paradox of the capitalist economic system. We have provided a graphical representation of the impact of the pandemic, different from the “V”, “U”, “L” and “I”- shaped interpretations.
Chapter three adopts a thesis by Renaud Girard, but we have also made an independent overview of the weaknesses of three ideologies. Furthermore, we have added to the G-20 recommendation for the restoration of transborder commerce.
Chapter four offers a second, author’s variant for graphical representation of overcoming the consequences of the pandemic. It is emphasized that it is not a one-season phenomenon. We have synthesized the damage caused to each sector and profession in the world. We claim that the structure of product range depends on the structure of consumer demand and the changes in the new environment. Therefore, the key word is “Transformation”.
These are followed by thoughts and conclusions divided into three major characteristics of the pandemic and four models of human behavior. We propose new organizational and structural changes for the firms, enterprises, and corporations. We argue that management now tends to be based on algorithms, protocols, and economic platforms.
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Kaloyan Pargov
BULGARIA’S ENERGY BALANCE – A STRATEGIC ANALYSIS
Summary:
The Energy Balance is a strategic report which is of crucial importance to national economies. The strategic analysis of the Energy Balance of the Republic of Bulgaria for the period 2006-2020 allows drawing up key trends for determining the priorities for the development of the infrastructure of production, transfer, consumption, intersystem exchange and expanding the share of renewable sources. The research consists of two parts – the first one focuses on the methodology of preparing an Energy Balance as a statistical document with the corresponding evolution characteristics and structural components; the second one includes a verbal and graphic representation of the dynamics of some major components and indicators of the Energy Balance of the Republic of Bulgaria. As a result, we have illustrated the annual rates of change for a fifteen-year period, linear regression equations and coefficients of determination. The article ends by drawing up conclusions of strategic importance for the energy system.
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Dimitar Kanev
Why Trump Won the Elections – in View of the Prospect Theory
Summary:
In view of the behavioral approach and the prospect theory, the article tries to explain why an alternative is sometimes chosen, which compared to other options, leads to a worse and more uncertain expected outcome. The example analyzed is D. Trump’s victory in the US presidential elections in 2016. The reasons why he won lie in the candidate’s right strategy which takes into account the voting behaviour, and especially in the proper communication with voters, in the reflection effect and loss aversion. The validity of the prospect theory is sought not only in the political choices but also by means of a number of own studies examining its basic assumptions in Bulgarian conditions. Examples are given of applications in other fields.
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S. Parusheva
CARD-NOT-PRESENT FRAUD – CHALLENGES AND COUNTERACTIONS
Summary:
Due to the rapid development of electronic commerce, the percentage of card-not-present payments over the Internet and fraud related to these, have increased. The relative importance of card-not-present fraud (CNPF) has increased permanently on a global and European scale mainly due to the gradual solution to problems connected with the protection of card-present transactions through the transition to the EMV chip standard and transfer of fraud to more vulnerable card-not-present transactions in which it is difficult to verify the identity of the cardholder in a reliable way. For the protection of card transactions it is necessary to take adequate measures by introducing common harmonized compulsory minimum security requirements across the EU. First, we propose these requirements to include methods for checking the authentication of users. We consider the 3-D Secure Protocol in a version with dynamic authentication the most suitable method because in the EU many steps towards its implementation have already been made. This is of great importance for the systems used by banks and merchants for the prevention of card-not-present fraud and for detecting and blocking of fraudulent transactions.
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Boyan Iliev
Multiple Peril Risk Insurance of Agricultural Crops – a Myth or Reality
Summary:
The insurance of agricultural crops is a conservative type of insurance. It is quite rarely that radical organizational changes are introduced. Currently, however, conditions dictate the introduction ofthere are the necessary conditions such changes in the Republic of Bulgaria. Modern development of agricultural production is a prerequisite for changing the methodology of this type of insurance so as to adapt it to the demands of agricultural producers. This article develops the thesis that a similar change might be implemented by transforming the liability of insurance companies from a liability related to certain risks and losses to a liability referring to any risks and losses. In other words, it is possible to make the transition to the so-called multiple peril risk insurance.
Multiple peril risk insurance is considered to be a novelty which has only recently been introduced in EU member-states with advanced economies. Therefore, it is the subject of large-scale discussions. The objective is to choose to introduce such an option that will best correspond to the specific features of the agricultural development and traditions in the Republic of Bulgaria and related insurance practice.
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Silvia Toneva, Kristina Stefanova
PROMOTING THE PARTICIPATION OF SMEs IN DUAL TRAINING IN THE CONTEXT OF REGIONAL DISPARITIES IN BULGARIA
Summary:
The aim of the paper is to make recommendations for the development of the dual system in Bulgaria in terms of increasing the participation of SMEs and taking into account the regional specificities of the educational structure of the population and youth unemployment. Financial incentives, a large-scale information campaign and visibility of participating enterprises are some of the important factors to encourage SMEs to become partners in the dual system. In order to ensure a wider participation of enter¬prises, it is important to gradually increase financial incentives (through support in the form of grants, tax relief, etc.). The existing differences between regions in Bulgaria suggest that a more substantial incentive for SMEs to become partners in dual training could be achieved by applying a regional criterion. When planning measures for the development of the dual training system in Bulgaria, efforts should be made to cover more persons at risk of dropping out of the education system and persons who will not enter higher education.
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Živorad Gligorijević, Petar Veselinović, Aleksandar Manasijević
ECONOMIC THEORY AND POLITICS OF REGIONAL DEVELOPMENT: ONE VIEW OF THE ORIGIN AND TRANSFORMATION
Summary:
Economic development, as the original (natural) aspiration and primordial need of every individual, as well as society as a whole, has its own regional aspect in addition to the national one, which, under the influence of numerous factors, always takes place and is realized as an uneven development. The unevenness of regional development is, therefore, constant, that is, its existence represents a general legality.
In conditions where development takes place as a spontaneous and not as a socially directed process, unevenness leads to the appearance of large regional differences. That is why there is a permanent need to study regional development, and this need is becoming more and more relevant every day. This is, first of all, the result of the fact that during many years of research it has been confirmed that regional development, due to its importance and impact on overall socio-economic flows, quite justifiably represents one of the central areas of interest of economic science. In addition, the topicality of the study of regional development is growing as a result of the emergence and presence of large regional differences in the economic reality of many countries, regardless of their level of development.
Over time, in accordance with changes in the global environment, socio-political, and on that basis, economic systems, the way of observing and understanding regional development has also changed. Starting from the above-mentioned positions, the goal of the research is to, based on relevant theoretical knowledge, look at the origin and development trends of the theory and policy of regional development.
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Stoyan Prodanov, Dimitrina Lyubenova Prodanova
BULGARIA’S COVERAGE WITH LOCAL INITIATIVE GROUPS – A SPATIAL ANALYSIS
Summary:
This research focuses on the innovative LEADER approach within the Common agricultural policy of the EU which is widely used for the decentralized and at the same time integrated development of rural regions in each member state. Theoretically, the LEADER approach is part of the endogenous theory of economic development and plays an important role in achieving the social, economic and now climatic aims as a specific European model of stimulating the inclusion of communities in local development. From a spatial point of view, the LEADER approach has been applied at the level of municipality or unified neighboring municipalities and/or neighboring settlements-part of a municipality/ies with a population between 10,000 and 150,000 inhabitants by local initiative groups (LIG). Bulgaria’s Program for the development of rural regions 2014–2020 adopts the national definition according to which rural regions are defined at the municipal level (LAU 1) and comprise the territory of 231 municipalities in which the largest town has a population of 30,000 inhabitants. The analysis of the spatial coverage of rural regions with LIG shows the negative effect of the admission of typically urban municipalities within the territories which receive funding through the LEADER network. To eliminate those inaccuracies in determining the policies for the development of rural regions, we propose and test variants to change this arguable, too streamlined and non-corresponding to scientific thought definition of a rural region.
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Dudar Volodimir
Development of the Market for Food Products from Ukraine’s Agricultural Sector
Summary:
The article analyses the development of markets for food products from the Ukraine agricultural sector and the degree of its dependence on imports of food products. The article also outlines the main areas for activating international economic activities and realization of export potential of Ukraine’s agricultural sector specializing in food production. The author advocates the necessity of deepening the processes of integration with main international markets of agricultural food products.
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Tanya Gorcheva
Reforms to the Common Agricultural Policy and Benefits to Bulgaria
Summary:
The paper deals with issues related to the evolution of the Common Agricultural Policy of the European Union (CAP) and the process of reforms the policy has been undergoing. It also provides a retrospective analysis in order to outline both favourable and adverse aspects of the impact which CAP has had on the development of the agricultural sector in Europe in general and in Bulgaria in particular. It is thus possible to highlight the benefits which our country could gain from those reforms by taking into consideration changes in existing regulations and the implementation of related policy instruments. The paper also reviews what was achieved in our country in the 2007-2013 programme period in result of implementing the CAP. Finally, it outlines expectations related to Bulgarian agriculture for the next programme period in terms of the changes introduced into that policy by the European Commission.
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Zornitsa Petkova
The Joint Operation of Institutions – Factors
for Increasing Revenue Collectibility
Summary:
Major sources of revenue for the state budget include taxes collected from the National Revenue Authority and the Customs Agency. These account for nearly 90 per cent of the revenue of the state budget. The specialist structures of the Ministry of the Interior (the General Directorate for Combating Organised Crime and the Economic Police) play an important role in minimising the losses incurred to the state budget through non-payment of customs duties on smuggled goods. This role is crucial in exercising control on excisable goods due to the large size of duties levied on them. Hence, one of the factors for improving the fiscal efficiency of customs administration and preventing and detecting customs and excise violations is the implementation of joint operations with the National Revenue Agency and the Min¬istry of the Interior.
This paper aims to assess the current condition of joint operations conducted by the Customs Authority, the NRA, and the Ministry of the Interior in order to prove their efficiency in terms of the supervision exercised by the customs authority.
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Lyudmil Krystev
THEORETIC ASPECTS OF FINANCIAL CONTROLLING IN THE FIRM
Summary:
The focus is on financial controlling as part of the controlling in the firm. The article highlights the need of financial controlling Bulgarian companies. It explores the factors of the external and the internal environment of the company within the context of financial controlling as well as the types of controlling. The major financial indicators that are used as a basis for the formulation of the goals of the company are outlined.
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Kaloyan Petkov
Testing the Damodaran Approach to Estimate the Cost of Equity
in Emerging Markets
Summary:
The cost of equity is one of the key financial and economic indicators in corporate finance. The purpose of this paper is to test the well-known approach of Damodaran in global emerging markets. The main result of the study is that the Damodaran approach needs to be improved as it maintains constant deviation from the observed ex-post cost of equity.
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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.
