The services sector and restructuring of the Bulgarian economy

The object of the present study is the services sector with its features and trends in its development, and the subject is the structural changes in the development of the services sector and the dynamics of the related main economic indicators. These changes are evident both in the sector itself and in the economy as a whole. The aim of the study is to highlight the role and importance of the dynamics and restructuring of the services sector on the macroeconomic development of Bulgaria for the period 1997 - 2010. To achieve this goal, the study solves the following research tasks: 1. An appropriate scientific approach and method for studying the development of the services sector in the context of the general civilization dynamics have been chosen; 2. The changes in the sectoral structure of the investments are analyzed and are specified in the branch structure of the services sector; 3. The possibilities of the services sector for job creation are outlined and its influence on the growth of labor productivity is traced; 4. The dominant activities in the creation of added value in the field of services are revealed; 5. The rate of change of labor productivity in the sector is monitored and its influence on the resource efficiency of the economy is highlighted; 6. The tendencies in the development of the activities in the field of services in Bulgaria are presented and their influence on the rate of economic growth is measured. Based on the research work and the application of a number of approaches, methods and analyzes, the following scientific and scientific-applied contributions have been achieved: 1. On the basis of the acquaintance with the literary heritage on the problems of the services theoretical summaries about their essence, scope and place in the economy are made. The factors that strengthen the role of the services sector in the modern production process are derived and systematized, and it is also established to what extent there is underestimation in the development of this area as a result of the theory of productive and non-productive labor. 2. The tendencies in the development of the sector in the Republic of Bulgaria are outlined. A comparative analysis shows the differences in the conditions and factors for its development in our country and in other countries and it is established that the development of the sector in the Bulgarian economy does not become evolutionary, i.e. gradually, but much faster and in a shorter period of time and is mainly the result of the decline in industrial production. 3. A structural analysis has been performed and the contribution of the services sector in Bulgaria in the creation of gross value added, in the provision of employment and in the distribution of investments, which finds a final dimension in the economic growth in the country. With the help of this analysis the changes in the structure of investments, employees and gross value added are tracked and on this basis the activities of the services sector are arranged and selected according to the intensity of the structural changes in them. 4. An econometric model has been developed and used to assess the effectiveness of individual activities in the services sector and to determine the relationships and dependencies of the dominant factors specific to each of them. The built model has an evaluation purpose and outlines the influence of individual factors on the gross value added created in the services sector. 5. Based on the conclusions and conclusions made in the study, a mechanism for impact through economic policy is proposed, both on the service sector as a whole and on its individual activities. In solving these tasks, the following problems remain outside the studied problems: organizational and structural changes in the services sector; detailed industry analysis; changes in their value structure, etc. They are not subject to consideration in this study, as they are not essential for highlighting the main trends and achieving the goals. A difficulty in surveying the services sector was the collection of statistical information over a longer period of time. The current sectoral structure of this sector has been included in the statistical surveys since 1997 with the National Sectoral Classification. It replaces the util then used Classification of the branches of the national economy, according to which the service branches form the so-called non-productive sphere, and it does not include the activities trade, transport and communications, which are reported as part of the sphere of material production. The introduction of this classification leads to differences in data for individual sectors and makes them incomparable during different periods, which complicates the study. In addition, in recent years, statistical authorities have begun to take a closer look at individual activities in the sector. For this reason, the data for the period after 2009 are derived, but difficult to compare with the previous period. Complications in the study of the development of the services sector are caused by the dynamic economic situation in the country, especially at the beginning (1997) and the end of the study period (the years of the country's entry into the global crisis). It is characterized by contradictory changes and large amplitudes, which in turn have a significant impact on expectations and development trends.