Article

 

Determinants of Foreign Direct Investment (FDI) in Bulgaria: An econometric analysis using panel data (p.73-97)

by

Christina Sakali, University of Macedonia, Thessaloniki, Greece

Keywords : FDI determinants, Bulgaria, Transition, Panel data

JEL classification : F21, P33, C23

Abstract

The objective of this paper is to analyse the determinants of FDI in Bulgaria, using panel data and an extended time-span, from the late-1990s until the late-2000s, in order to explore FDI motivations during the most important phase of the Bulgarian transition, until recently. Results indicate that FDI in Bulgaria has been motivated by both market and efficiency reasons, as well as the high quality of the Bulgarian workforce. The progress in transition reforms and integration into the European Union, have also provided an important stimulus for the establishment of FDI in the Bulgarian market.