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Long-Term Impact of the European Funds on Bulgaria's Economy

Author

Listed:
  • Kalina Durova

    (South-West University Neofit Rilski, Bulgaria)

Abstract

The objective of this paper is to estimate the long-term effects of the funds of the European Union (EU) on the economy of Bulgaria. The influence of EU funding on capital stock, total factor productivity (TFP) and potential output has been assessed through a methodology based on a two-factor Cobb-Douglas production function. The impact of EU funds on the rates of long-term unemployment and natural unemployment has been also estimated by an OLS regression of time series data. The research results imply that the absorbed EU financing has a positive influence on potential output and TFP and a negative influence on potential employment and long-term unemployment rate.

Suggested Citation

  • Kalina Durova, 2018. "Long-Term Impact of the European Funds on Bulgaria's Economy," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 325-333, September.
    • Handle: RePEc:nwe:eajour:y:2018:i:3:p:325-333
    as

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    References listed on IDEAS

    as
    1. Ivan Todorov, 2015. "Two Approaches for Evaluating the Aggregated Production Function of Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 67-81.
    2. Ivan Todorov, 2016. "Supply-Side Factors of Economic Growth in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 159-174, June.
    3. Ivan Todorov & Kalina Durova, 2016. "Economic Growth of Bulgaria and Its Determinants," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-35.
    4. Garabed Minassian, 2008. "Is Bulgarian Economy Overheating?," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 21-46.
    5. Ivan Todorov, 2015. "Bulgaria’s Economic Growth under a Currency Board Arrangement," Ikonomiceski i Sotsialni Alternativi, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 74-90, October.
    6. Kaloyan Ganev, 2005. "Measuring Total Factor Productivity: Growth Accounting for Bulgaria," GE, Growth, Math methods 0504004, University Library of Munich, Germany, revised 21 Apr 2005.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    European funds; long-term effects; long-term Impact;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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