Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets
This paper analyzes the process of institutional transformation in Bulgaria and assesses the extent to which it has established institutions and policies fostering domestic economic activity and integration into global markets. After a brief review of characteristics and achieved progress in first-g...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/03/6616041/bulgarias-institutions-policies-integrating-pan-european-markets http://hdl.handle.net/10986/8339 |
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okr-10986-8339 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTABILITY ACCOUNTING AGGREGATE GOVERNANCE AGGREGATE GOVERNANCE INDICATOR AGGREGATE INDICATOR BANKING SECTOR BANKRUPTCY BASE YEAR BINDING CONSTRAINT BUREAUCRACY BUSINESS CLIMATE BUSINESS ENVIRONMENT CAPITAL REQUIREMENTS CENTRAL PLANNING CLOSED BANKS COMPETITION POLICY COMPETITIVE MARKETS CONTINGENT LIABILITIES CONTRACT ENFORCEMENT CONTROL OF CORRUPTION CORRUPTION CORRUPTION INDICATORS CORRUPTION PERCEPTION INDEX COUNTRY RANKINGS CROSS SUBSIDIZATION CURRENT ACCOUNT DEBT DIMENSIONS OF GOVERNANCE DIRECT INVESTMENT DISCRIMINATION DOMESTIC FIRMS DOMESTIC INVESTMENT ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC REFORMS ENACTMENT ENTERPRISE RESTRUCTURING EXCHANGE OF IDEAS EXCHANGE RATE FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SUSTAINABILITY FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTORS FOREIGN TRADE GDP GOVERNANCE GOVERNANCE DIMENSIONS GOVERNANCE INDEX GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNANCE QUALITY GOVERNMENT EFFECTIVENESS GOVERNMENT POLICIES GOVERNMENT POLICY INCIDENCE OF CORRUPTION INEFFICIENCY INSOLVENT INSTITUTIONAL CAPACITY INSTITUTIONAL CHANGES INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSURANCE INTEREST RATE INVESTMENT CLIMATE JUDICIAL SYSTEM LABOR MARKETS LEGAL FRAMEWORK LEGISLATION LEVELS OF GOVERNANCE MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MARKET ECONOMIES MARKET ECONOMY MARKET FORCES MEMBER STATES MONOPOLIES MONOPOLY NATURAL RESOURCES POLICY AREAS POLICY RESEARCH POLITICAL ECONOMY POLITICAL INSTABILITY POLITICAL STABILITY PRICE CONTROLS PRIVATIZATION PRIVATIZATION OF STATE PROPERTY RIGHTS PUBLIC FINANCES PUBLIC GOODS PUBLIC PRIVATE PARTNERSHIPS PUBLIC RESOURCES QUALITY OF GOVERNANCE QUALITY OF INSTITUTIONS RECESSION REFORM REGIONAL INTEGRATION REGULATORY BURDEN REGULATORY FRAMEWORK REGULATORY QUALITY REGULATORY REGIME REGULATORY REGIMES RENT SEEKING RULE OF LAW SHAREHOLDERS STABILIZATION STATE BUDGET STATE ENTERPRISE STATE OWNERSHIP STATE SUBSIDIES STATE-OWNED ENTERPRISES STRUCTURAL REFORM STRUCTURAL REFORMS TAXATION TELECOMMUNICATIONS TRADE DIVERSION TRADE POLICIES TRADE POLICY TRADING TRANSITION ECONOMIES TRANSITION ECONOMY TRANSPARENCY |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING AGGREGATE GOVERNANCE AGGREGATE GOVERNANCE INDICATOR AGGREGATE INDICATOR BANKING SECTOR BANKRUPTCY BASE YEAR BINDING CONSTRAINT BUREAUCRACY BUSINESS CLIMATE BUSINESS ENVIRONMENT CAPITAL REQUIREMENTS CENTRAL PLANNING CLOSED BANKS COMPETITION POLICY COMPETITIVE MARKETS CONTINGENT LIABILITIES CONTRACT ENFORCEMENT CONTROL OF CORRUPTION CORRUPTION CORRUPTION INDICATORS CORRUPTION PERCEPTION INDEX COUNTRY RANKINGS CROSS SUBSIDIZATION CURRENT ACCOUNT DEBT DIMENSIONS OF GOVERNANCE DIRECT INVESTMENT DISCRIMINATION DOMESTIC FIRMS DOMESTIC INVESTMENT ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC REFORMS ENACTMENT ENTERPRISE RESTRUCTURING EXCHANGE OF IDEAS EXCHANGE RATE FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SUSTAINABILITY FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTORS FOREIGN TRADE GDP GOVERNANCE GOVERNANCE DIMENSIONS GOVERNANCE INDEX GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNANCE QUALITY GOVERNMENT EFFECTIVENESS GOVERNMENT POLICIES GOVERNMENT POLICY INCIDENCE OF CORRUPTION INEFFICIENCY INSOLVENT INSTITUTIONAL CAPACITY INSTITUTIONAL CHANGES INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSURANCE INTEREST RATE INVESTMENT CLIMATE JUDICIAL SYSTEM LABOR MARKETS LEGAL FRAMEWORK LEGISLATION LEVELS OF GOVERNANCE MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MARKET ECONOMIES MARKET ECONOMY MARKET FORCES MEMBER STATES MONOPOLIES MONOPOLY NATURAL RESOURCES POLICY AREAS POLICY RESEARCH POLITICAL ECONOMY POLITICAL INSTABILITY POLITICAL STABILITY PRICE CONTROLS PRIVATIZATION PRIVATIZATION OF STATE PROPERTY RIGHTS PUBLIC FINANCES PUBLIC GOODS PUBLIC PRIVATE PARTNERSHIPS PUBLIC RESOURCES QUALITY OF GOVERNANCE QUALITY OF INSTITUTIONS RECESSION REFORM REGIONAL INTEGRATION REGULATORY BURDEN REGULATORY FRAMEWORK REGULATORY QUALITY REGULATORY REGIME REGULATORY REGIMES RENT SEEKING RULE OF LAW SHAREHOLDERS STABILIZATION STATE BUDGET STATE ENTERPRISE STATE OWNERSHIP STATE SUBSIDIES STATE-OWNED ENTERPRISES STRUCTURAL REFORM STRUCTURAL REFORMS TAXATION TELECOMMUNICATIONS TRADE DIVERSION TRADE POLICIES TRADE POLICY TRADING TRANSITION ECONOMIES TRANSITION ECONOMY TRANSPARENCY Kaminski, Bartlomiej Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets |
| geographic_facet |
Europe and Central Asia Bulgaria |
| relation |
Policy Research Working Paper; No. 3864 |
| description |
This paper analyzes the process of institutional transformation in Bulgaria and assesses the extent to which it has established institutions and policies fostering domestic economic activity and integration into global markets. After a brief review of characteristics and achieved progress in first-generation reforms, that is, removal of central control over prices, liberalization of foreign trade and exchange rate regimes, the paper first assesses in the comparative perspective the progress made in the quality of governance and structural reforms. It then takes a look at the extent to which this has impacted foreign direct investment inflows and was translated into improved business environment in its domestic and external dimensions. The external dimension relates to backbone services facilitating trade and Bulgaria's trade policies. As far as the latter are concerned, the discussion highlights tensions that emerge from duality-regional versus multilateral-in Bulgaria's trade policy. Despite significant progress in implementation of structural reforms and converging to the EU acquis communautaire that has led to a significant enhancement in the quality of governance and market supporting institutions, "macro" institutional improvements are yet to be fully transplanted to a micro-level, as three areas appear to remain a binding constraint: First and foremost is the low quality of the judicial system and, by the same token, weaknesses in the enforcement of property rights and contracts. Second, backbone services facilitating trade remain a barrier. Bulgaria ranks low relative to the levels of efficiency achieved on average by both EU-8 and the EU-15 countries in management of ports, information technology infrastructure, and customs. Third, there are recurrent complaints among businesses of government bureaucracy, poor infrastructure, and frequent changes in the legal framework including taxation. As a result, the regulatory burden remains huge. There are still redundant and excessive sector-specific regulatory regimes. Bulgaria's markets for industrial goods are fully contestable for pan-Europe (EU-25, European Free Trade Association, Romania, and Turkey), exposing local producers to duty-free competition from imports. With relatively high most favored-nation tariff rates, the level of reverse discrimination significantly increased over the past couple of years. While this has not resulted in perceptible trade diversion, organizational arrangements preventing that to happen unnecessarily increase administrative intervention in the economy. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kaminski, Bartlomiej |
| author_facet |
Kaminski, Bartlomiej |
| author_sort |
Kaminski, Bartlomiej |
| title |
Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets |
| title_short |
Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets |
| title_full |
Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets |
| title_fullStr |
Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets |
| title_full_unstemmed |
Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets |
| title_sort |
bulgaria’s institutions and policies : integrating into pan-european markets |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/03/6616041/bulgarias-institutions-policies-integrating-pan-european-markets http://hdl.handle.net/10986/8339 |
| _version_ |
1764405810464555008 |
| spelling |
okr-10986-83392021-04-23T14:02:40Z Bulgaria’s Institutions and Policies : Integrating into Pan-European Markets Kaminski, Bartlomiej ACCOUNTABILITY ACCOUNTING AGGREGATE GOVERNANCE AGGREGATE GOVERNANCE INDICATOR AGGREGATE INDICATOR BANKING SECTOR BANKRUPTCY BASE YEAR BINDING CONSTRAINT BUREAUCRACY BUSINESS CLIMATE BUSINESS ENVIRONMENT CAPITAL REQUIREMENTS CENTRAL PLANNING CLOSED BANKS COMPETITION POLICY COMPETITIVE MARKETS CONTINGENT LIABILITIES CONTRACT ENFORCEMENT CONTROL OF CORRUPTION CORRUPTION CORRUPTION INDICATORS CORRUPTION PERCEPTION INDEX COUNTRY RANKINGS CROSS SUBSIDIZATION CURRENT ACCOUNT DEBT DIMENSIONS OF GOVERNANCE DIRECT INVESTMENT DISCRIMINATION DOMESTIC FIRMS DOMESTIC INVESTMENT ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC REFORMS ENACTMENT ENTERPRISE RESTRUCTURING EXCHANGE OF IDEAS EXCHANGE RATE FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SUSTAINABILITY FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTORS FOREIGN TRADE GDP GOVERNANCE GOVERNANCE DIMENSIONS GOVERNANCE INDEX GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNANCE QUALITY GOVERNMENT EFFECTIVENESS GOVERNMENT POLICIES GOVERNMENT POLICY INCIDENCE OF CORRUPTION INEFFICIENCY INSOLVENT INSTITUTIONAL CAPACITY INSTITUTIONAL CHANGES INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSURANCE INTEREST RATE INVESTMENT CLIMATE JUDICIAL SYSTEM LABOR MARKETS LEGAL FRAMEWORK LEGISLATION LEVELS OF GOVERNANCE MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MARKET ECONOMIES MARKET ECONOMY MARKET FORCES MEMBER STATES MONOPOLIES MONOPOLY NATURAL RESOURCES POLICY AREAS POLICY RESEARCH POLITICAL ECONOMY POLITICAL INSTABILITY POLITICAL STABILITY PRICE CONTROLS PRIVATIZATION PRIVATIZATION OF STATE PROPERTY RIGHTS PUBLIC FINANCES PUBLIC GOODS PUBLIC PRIVATE PARTNERSHIPS PUBLIC RESOURCES QUALITY OF GOVERNANCE QUALITY OF INSTITUTIONS RECESSION REFORM REGIONAL INTEGRATION REGULATORY BURDEN REGULATORY FRAMEWORK REGULATORY QUALITY REGULATORY REGIME REGULATORY REGIMES RENT SEEKING RULE OF LAW SHAREHOLDERS STABILIZATION STATE BUDGET STATE ENTERPRISE STATE OWNERSHIP STATE SUBSIDIES STATE-OWNED ENTERPRISES STRUCTURAL REFORM STRUCTURAL REFORMS TAXATION TELECOMMUNICATIONS TRADE DIVERSION TRADE POLICIES TRADE POLICY TRADING TRANSITION ECONOMIES TRANSITION ECONOMY TRANSPARENCY This paper analyzes the process of institutional transformation in Bulgaria and assesses the extent to which it has established institutions and policies fostering domestic economic activity and integration into global markets. After a brief review of characteristics and achieved progress in first-generation reforms, that is, removal of central control over prices, liberalization of foreign trade and exchange rate regimes, the paper first assesses in the comparative perspective the progress made in the quality of governance and structural reforms. It then takes a look at the extent to which this has impacted foreign direct investment inflows and was translated into improved business environment in its domestic and external dimensions. The external dimension relates to backbone services facilitating trade and Bulgaria's trade policies. As far as the latter are concerned, the discussion highlights tensions that emerge from duality-regional versus multilateral-in Bulgaria's trade policy. Despite significant progress in implementation of structural reforms and converging to the EU acquis communautaire that has led to a significant enhancement in the quality of governance and market supporting institutions, "macro" institutional improvements are yet to be fully transplanted to a micro-level, as three areas appear to remain a binding constraint: First and foremost is the low quality of the judicial system and, by the same token, weaknesses in the enforcement of property rights and contracts. Second, backbone services facilitating trade remain a barrier. Bulgaria ranks low relative to the levels of efficiency achieved on average by both EU-8 and the EU-15 countries in management of ports, information technology infrastructure, and customs. Third, there are recurrent complaints among businesses of government bureaucracy, poor infrastructure, and frequent changes in the legal framework including taxation. As a result, the regulatory burden remains huge. There are still redundant and excessive sector-specific regulatory regimes. Bulgaria's markets for industrial goods are fully contestable for pan-Europe (EU-25, European Free Trade Association, Romania, and Turkey), exposing local producers to duty-free competition from imports. With relatively high most favored-nation tariff rates, the level of reverse discrimination significantly increased over the past couple of years. While this has not resulted in perceptible trade diversion, organizational arrangements preventing that to happen unnecessarily increase administrative intervention in the economy. 2012-06-18T20:05:26Z 2012-06-18T20:05:26Z 2006-03 http://documents.worldbank.org/curated/en/2006/03/6616041/bulgarias-institutions-policies-integrating-pan-european-markets http://hdl.handle.net/10986/8339 English Policy Research Working Paper; No. 3864 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Bulgaria |