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The Bulgarian enterprises internationalization trends after the global financial crisis

The Bulgarian enterprises internationalization trends after the global financial crisis. TRENDS IN EXPORTS AND IMPORTS. CONCLUSIONS ABOUT FOREIGN TRADE DYNAMICS. Under the global financial bubble imports systematically outperformed exports due to so called savings glut

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The Bulgarian enterprises internationalization trends after the global financial crisis

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  1. The Bulgarian enterprises internationalization trends after the global financial crisis

  2. TRENDS IN EXPORTS AND IMPORTS

  3. CONCLUSIONS ABOUT FOREIGN TRADE DYNAMICS

    Under the global financial bubble imports systematically outperformed exports due to so called savings glut Current account was registering important deficits reaching up to 20% of GDP After the crisis exports declined but quickly recovered overcoming pre-crisis level Imports are lagging behind as a result of sluggish domestic demand Current account is approximately balanced after the crisis
  4. The Role of the Real Effective Exchange Rate- REER

  5. Conclusions about the role of REER

    Before the crisis the REER on the basis of unit labor costs marked strong increase what reflects faster growth of domestic salaries vis-à-vis foreign competitors After the crisis the process is reversed due mainly to cutting labor and productivity gains what can explain the stronger recovery of exports REER on the basis of domestic prices- SPI, is stagnating after the crisis, a trend compatible with the relative slow down of imports The improvement of the current account can be explained by enhanced cost competitiveness of exports and sluggish domestic demand
  6. Foreign Capital Flows

  7. Capital Flows: Conclusions

    FDI increased before the crises and declined afterwards Portfolio Investments are vulnerable during the whole period 2000-2013 The improvement of the current account is strongly correlated with the decline of FDI The worsening of FDI and the improvement of current account coincide with the worsening of the fiscal deficit- twin deficit hypothesis not confirmed
  8. Structure of Exports

  9. Conclusions about the structure of exports

    The structure lingers inefficient The high share of row materials remains untouched The share of energy products also does not change We observe some trends towards the increase of share of investment goods and decrease of consumption goods The 2008-2009 crisis does not affect the composition of exports in a particular manner, long terms trends are unaltered
  10. The Structure of Imports from European Countries 1995-2013

  11. Conclusions about the Structure of Imports

    The structure of the European imports remains extremely negative with very high share of energy, what reflects strong dependence on Russian supplies The share of investment goods remains low and declining The structure of imports does not allow for post-crisis economy restructuring and improvement of competitiveness
  12. The Structure of FDI Flows

  13. Conclusions About the Structure of FDI

    The structural trends are unstable We observe some increase of the share of energy Investments due to EU requirements about the Green energy and profitable price conditions The share of manufacturing is unstable and declining The FDI flows related to financial intermediation are also unstable
  14. Technology Transfer

  15. Conclusions About Technology Transfer

    The transfer is measured in terms of payments related to licenses and property rights Both payments to and from Bulgaria increase The crisis slightly accelerated the technology transfer to Bulgaria The Bulgarian technology export also increased somewhat

  16. General Conclusions

    The main question is: Do we observe Schumpeterian “Creative Destruction” after the crisis? The answer in the case of Bulgaria is NO We do not detect visible acceleration of some positive structural change Only some long term trends, such as the increase of the share of investment goods in exports and intensification of technology transfer can be mentioned The predominant form of external adjustment is via the comparative unit labor cost shrinkage
  17. Nevertheless: Clusters EU, Europe 2020 Strategy Danube Strategy The Participation of Germany Government-Business Cooperation Bulgarian Association of Business Clusters (ABC) was founded in 2009 with main aim to unite the efforts of clusters in Bulgaria for their dynamic development in line with European standards and to popularize clusters as opportunity for development of the Bulgarian economy in time of global crises. Full members of the organization are 11 clusters: Foundation Cluster Information and Communication Technologies (ICT Cluster) Bulgarian Furniture Cluster ClusterMechatronics and Automation Maritime Cluster Bulgaria Cluster Information Resources Bulgarian cluster Telecommunications (BCT), ICT Cluster Plovdiv, Electric vehicle industrial cluster, Cluster for health tourism Bulgaria, Cluster Microelectronics and Embedded systems (CMES) Srednogorie Med Industrial cluster, 3 clusters became associated members of the organization: Bulgarian ecology cluster, Cluster Plovdiv – ancient and creative Bulgarian consortium of high-quality wine producers Trakia
  18. Members GEFCO Bulgaria EOOD www.gefco.bg GrammerAD www.grammer.com HaycadInfotech OOD www.haycad-infotech.bg IMACOS Truckenmüller & Company Bulgaria EOOD www.imacos.com Industrial Commerce Ltd. www.hyundaibg.bg ixeticPlovdiv EOOD www.ixetic.com Johnson Controls Electronics Bulgaria EOOD www.johnsoncontrols.com LeschkeDesign   S-Media Team www.smediateam.com Technical University of Sofia www.tu-sofia.bg WürthElektronik IBE BG EOOD www.we-online.de FestoEOOD www.festo.com
  19. Technical University of Gabrovowww.tugab.bg Balkan Star Automotive EOOD www.balkanstar.com Integrated Micro-Electronics Bulgaria EOODwww.global-imi.com LitexMotors ADwww.greatwall.bg University of Rusewww.uni-ruse.bg Rödl& Partner EOODwww.roedl.com KEMMLER Electronic GmbHwww.kemmler-electronic.com SchenkerEOODwww.schenker.bg TEM Bulgaria ADwww.etem.bg ALC Bulgaria EOODwww.alc.co.za SE Bordnetze – Bulgaria EOOD www.sebn.com SMC Industrial Automation Bulgaria EOOD www.smc.bg MelexisBulgaria Ltd www.melexis.com
  20. Projects First International Automotive Conference in Bulgaria Auto Park Bulgaria e-taxi-shuttle Sofia Tech Park Automotive Test Center Concept and realization of education centers for middle managers Best practice human resources Best practice quality management Best practice logistics Evaluation of subsidy programs Government and administration

  21. Results of the Automotive Cluster Activities

    Some recent development of car assembly industry 80% of cars produced in Europe have parts, manufacturedin Bulgaria Some progress in the field of electric cars promotion
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