Skills mismatches are widely accepted as a factor that drags down on potential economic growth and as such require concrete policy measures both at the EU and national level. This report was prepared by the Institute for Market Economics (IME) and is dedicated to the study of skills mismatches in the EU and their effect on the competitiveness of EU businesses. It includes a comprehensive review of existing literature on the issue and outlines some of the main conclusions regarding the relation of skill mismatches to education, personal and aggregate productivity, labour market dynamics and outcomes, innovation capacity and competitiveness. The study also includes the results of a dedicated survey designed to shed further light on the causes and effects of skills mismatches from the point of view of companies.
The objective of this study is to make an as realistic and comprehensive assessment as possible of the foreign direct investments by companies whose beneficial owners are U.S. investors. It is achieved by identifying the Bulgarian companies whose foreign direct owners are third-country companies, but whose beneficial ownership has U.S. origins.
Sofia is the biggest regional economy in the country. About 40% of Bulgaria’s GDP is produced in Sofia. The contribution of Sofia municipality to the national economy has been growing at a moderate but stable rate in recent years, which reflects the continuing concentration of economic activity in the Capital. Sofia provides the highest living standard, compared to the rest of the country. IME profiled the advantages and the challenges to the Capital’s development.
The purpose of this study is to examine the current state and the future trends of the small and medium-sized enterprises in Sofia by providing an analysis of their development over the last decade and in the wider context of the Bulgarian economy as a whole.
This paper aims to explore the history, structure, and economic consequences of the currency board in Bulgaria, which was introduced as an emergency measure to combat the late-nineties economic crisis, though has stayed in place ever since. The paper provides a brief description of the general theory of currency boards, followed by a detailed analysis of the various aspects of the economic crisis during the Videnov government, resulting from the return to centralized and state-led economic policies: high infl ation, shrinking of household incomes and savings, deterioration of trust in the banking system, collapse of the baking system and national budget crisis.
The „Regional Profiles: Indicators of Development” study is carried out by the Institute for Market Economics. The aim of the project is to provide a snapshot of the socio-economic condition of Bulgarian districts as of mid-2017, as well as their development since 2000. The study seeks answer to the question what makes some districts more developed and prosperous in comparison to others. The regional profiles were outlined on the basis of differente indicators, describing the economic and social development of Bulgarian districts. The profile of each district consists of an overview and commentary on the more notable results and trends in each of the twelve categories of indicators.
Economic Centres, 2017
In 2017, the IME set out to map the borders of Bulgaria’s economic centres. Our goal was to go beyond the country’s administrative and territorial division and establish new internal boundaries, based solely on natural economic processes. The grouping within the centres was done around the economic cores, which gather significant daily labour migration from surrounding municipalities, have significant concentration of employed people and generate relatively large production.
"My Taxes" is Now Available in English, 2017
In October 2016 the IME and the Friedrich Naumann Foundation for Freedom launched "My taxes" - a specialized online which can be accessed on the kolkodavam.bg website. Now we are happy to announce that the webpage is already available in English! The mirror webpage in English allows comparisons between the tax burden in Bulgaria and that in other countries, where such online applications can also be found.
Flat Tax in Bulgaria, 2016
The present essay collection is not aimed at claiming authorship on the 10 percent flat tax. It does include, though, texts by some of the people who were direct participants in the process of preparing, providing arguments in support of, and implementing the reform in Bulgaria. Efforts, which, as becomes clear from the book, span over 10 years. It is this historical perspective that makes it possible to highlight the flat tax as a logical and natural result of a comprehensive change in the country’s taxation and social insurance model.
Review of different types of economic populism in Bulgaria and its consequeces.
Analysis of the budget and overall resource management of the judiciary in Bulgaria. The aim of this analysis is to determine the effectiveness of resource management in the judiciary and also the transparency and rationality of the budgeting process. The analysis unveils a number of serious problems both in the management of resources in the judiciary and in the process of budget drafting, implementation, and reporting.
This is the fifth annual edition of “Regional Profiles: Indicators of Development” – the most comprehensive regular study of the social and economic development of Bulgaria’s regions, carried out by the Institute for Market Economics (IME). The report contains socio-economic profiles of each of the 28 districts, based on 63 indicators grouped in 12 different categories such as investment, labour market, infrastructure, education, and others. So far, the IME produced several such municipal profiles (Sofia, Bansko, Vratsa, etc.) that give detailed information on the local economy and its structure, the available workforce, and other aspects of the business and social environment.
This edition of “Regional Profiles: Indicators of Development” is a comprehensive study, which analyses the economic and social development of Bulgaria’s 28 districts, based on 63 indicators and includes a cluster analysis that groups the regions in clusters according to their similarities and differences. The study seeks an answer to the question of what makes some districts relatively more developed and prosperous and others - poorer.
The recommendations, outlined in “Regional Profiles: Policy Proposals 2015”, are a result of IME’s three years work in the field of regional development. They are a result of three years of work by the Institute for Market Economics in the regional development sphere. The recommendations on local finances intend to restore the relationship between “taxation” and “political representation” on the local level, as well as to create real financial incentives for local institutions to work towards attracting investments and creating jobs.
The content of this report aims at reviewing the arguments in favor of the new unhealthy food tax, its goals and the likelihood of them being achieved or compromised as well as at reviewing the possible and probable social and economic impact of the introduction of the tax. The report also aims at contributing to the discussion on the so called Bill on the Taxation of Unhealthy Food which is to take place in September, as promised by the Ministry of Health to journalists.
This year’s research Regional Profiles: Indicators of Development follows the successful tradition of the previous two editions by providing an in-depth analysis of the socioeconomic environment in Bulgaria’s districts. This edition includes four thematic analyses covering various aspects of the regional development, along with an updated profile of each of the twenty-eight districts. In addition to the customary typology of the districts, the analysis researches the process of the labour market recovering following the crisis, the dependencies between the fiscal policy and the regional development, and investment activities throughout the regions.
The purpose of this study is to identify the perspective crops in the vegetable- and fruit-growing sectors from the viewpoint of domestic demand and export potential.
The purpose of this report is to outline opportunities that could be potentially missed by Bulgaria. The autors examine the direct, indirect and induced impacts of shale gas exploration and production on the economy, the employment tax revenues of the state and local budgets, and the probable side effects of greater energy diversity and security.
The analysis aims to improve the image of the entrepreneur as a key player in the economy due to indications of worsening perceptions of society towards this figure. In addition to establishing the image of entrepreneurs in society at present, the authors will try to find an explanation for existing perceptions, and to improve it by conducting a public campaign.
This year’s edition of „Regional Profiles: Indicators of Development of Development” aims to provide objective, timely and comprehensive information on the development of Bulgarian regions. The publication aims to paint as complete a picture as possible, covering both the economic and social aspects of life in the regions. The profiles of Bulgaria’s 28 districts cover eight categories, each of which is related to the quality of life and the level of development of those regions: Economy, Taxes and Administration, Infrastructure, Demographics, Education, Healthcare, Environment, and Social Environment. You will find all about these categories, indicators and sources of information in the description of the methodology applied during this survey, and at the end of the booklet you will find some of the main primary data.
Review and analysis of excise taxation of tobacco products in Bulgaria in the 2007 - 2003 period and recommendations in view of achieving new EU requirements by 2018.
This Policy Note has been provoked by the growing tendency of governments around the world to regulate the advertising industry more and more strictly. Whether in the name of consumer protection or health concerns, decision-makers are eager to attack advertising of products deemed harmful. Recently it has been the sole idea of branding that has been put into question. Plain packaging for cigarettes is now officially debated in Europe and the aim of this Note is to elaborate on the unintended consequences of such a policy.
The analysis discusses the changes that the EU is planning to implement in the upcoming MFF, explores the reasons behind them and makes conclusions about their effect on the Bulgarian economy. The main points of interest include the basic structure of the MFF, the proposed reforms of the Common Agricultural Policy, the heading for Smart and Inclusive Growth and the way the budget is financed.
The publication „Regional Profiles: Indicators of Development” aims to provide objective, timely and comprehensive information on the development of Bulgarian regions, both in static and dynamic terms. The publication aims to paint as complete a picture as possible, covering both the economic and social aspects of life in the regions. Regions are subjected to overview at the level of administrative districts (oblasti); and this division was largely determined by the available data. Going down to the municipal level and preparing 264 profiles would not only be an enormous task but also quite impossible since much of the data is either not available or does not make much sense at the municipal level. The profiles of Bulgaria‘s 28 districts cover eight categories, each of which is related to the quality of life and the level of development of those regions, including: demographics, economy, business environment, infrastructure, health, environment, education and social environment. You will find all about these categories, indicators and sources of information in the description of the methodology applied during this survey, and at the end of the booklet you will find some of the main source data.
EXPECTED LONG-TERM BUDGETARY BENEFITS TO ROMA EDUCATION (BULGARIA - 2007), 2007
This analysis estimates the expected long-term benefits to investing into Roma education in Bulgaria. By budget benefits we envisage the direct financial benefits to the education to the national budget. The basic perception is that investing extra money into Roma education would pay off even in fiscal terms. In order to be successful, investments should take place in early childhood. Successful investments are also expensive, but if it is done the right way, such investments compensate the costs in terms of extra tax benefits in the future. This study looks at the expected budgetary benefits of a successful investment.