Main factors behind the substantial increase of FDI in Bulgaria : 2003-2007
Master thesis
Permanent lenke
http://hdl.handle.net/11250/168171Utgivelsesdato
2009Metadata
Vis full innførselSamlinger
- Master Thesis [4487]
Sammendrag
Since 2003 FDI inflows to Bulgaria have been growing steadily. This paper addresses the
question which the main factors determining this significant increase are. The analysis is
based on a large amount of macroeconomic data as well as the record of the process of
integration of Bulgaria into the European Union (EU) and reforms in the country. Results
show that privatization was an important determinant of FDI in the beginning of the examined
period (until 2005), but after that other cross-border mergers and acquisitions and especially
greenfield investment gained more importance relative to privatization. In addition, low
labour costs and removed tariff and non-tariff barriers to trade (as prerequisites for efficiencyseeking
FDI) and reforms related to the accession of the country into the EU (which
ultimately led to improvement of the business environment) also proved to be important
determinants of FDI inflows to Bulgaria.