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Article

Open Access

International Competitiveness of Export-oriented Industries in Bulgaria

Author(s)

Antoaneta Vassileva, Vasil Petkov, Paskal Zhelev

Full-Text PDF Download XML 349 Views

DOI:10.17265/1537-1506/2014.01.001

Affiliation(s)

Antoaneta Vassileva, Ph.D., Professor, International Economic Relations and Business Department, University of National and World Economy.
Vasil Petkov, Ph.D., Assistant Professor, International Economic Relations and Business Department, University of National and World Economy.
Paskal Zhelev, Ph.D., Assistant Professor, International Economic Relations and Business Department, University of National and World Economy.

ABSTRACT

With increasing globalization and Bulgaria’s accession into the European Union (EU), the question how to improve the country’s international competitiveness has become very important and urgent. The aim of the paper is to present the results of a research on the past decade’s competitiveness of Bulgarian export-oriented sectors, enjoying good positions in local and international markets and having a high development potential. The first part of the article presents a comprehensive review of the concept of competitiveness—its definitions, factors, and measurements at national, industry, and firm level. On the basis of the theoretical considerations, an empirical analysis on the current state of competitiveness of the selected export-oriented industries is performed. These include metallurgy, machine building, chemicals, clothing and textiles, furniture, wine production, tobacco, and food processing. The research answers the following questions: What are the major competitive advantages of Bulgarian export-oriented industries on the world market? What are their disadvantages? How did they change over the period 2002-2012, and what steps should be taken to meet the challenges? The employed methods of analysis are both quantitative—calculating various production, trade, and price indices, and qualitative—carrying out a survey among top managers of firms operating in the selected industries across all the regions of the country. Results show that the country’s competitiveness on international level has gradually improved but still remains at a comparatively low level as Bulgarian producers compete mostly on the price, invest very little in research and development (R&D), rely on low labor costs, and produce goods with low added value. The paper looks into the specific challenges to competitiveness faced by different sectors and the implications of addressing them. In conclusion, it puts forward some recommendations for boosting Bulgaria’s international competitiveness which are aimed at key stakeholders: companies, central and local government, and institutions promoting cooperation.

KEYWORDS

export competitiveness, industry analysis, competitive advantages, Bulgaria

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