Assessing Economic Convergence Between Bulgaria and the EU: The Role of Green Transition in Unemployment and GDP Per Capita Dynamics

This study investigates Bulgaria's economic convergence with the EU27, focusing on unemployment rates and GDP per capita from 2012 to 2022. Employing Beta, Gamma, Sigma, and Delta convergence measures, the research assesses the extent of Bulgaria's alignment with the economic performance of its EU counterparts. Additionally, the study critically examines the impact of Bulgaria's green transition?measured through recycling rates and renewable energy usage?on these convergence processes. The findings reveal a complex picture: while Bulgaria demonstrates strong Gamma and Delta convergence, suggesting improvements in its relative economic standing and a reduction in absolute disparities with the EU27, the absence of Beta and Sigma convergence indicates that overall economic growth and variability reduction remain insufficient for full integration. Furthermore, the analysis shows that although green transition efforts have positively influenced certain convergence aspects, they have not significantly contributed to broader economic alignment with the EU27. The study concludes that while Bulgaria is making notable progress in some convergence metrics, achieving comprehensive economic integration with the EU27 will require more robust and diversified policy interventions. The findings underscore the necessity for Bulgaria to enhance its environmental strategies with broader economic policies to effectively close the remaining gaps with its EU counterparts.