Brexit and the Fintech Revolution in Europe - Lessons from the Bulgarian Digital Finance Cluster

Deyan Radev and Georgi Penev ()
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Georgi Penev: Bulgarian Fintech Association, Sofia, Bulgaria

Bulgarian Economic Papers from Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski

Abstract: This paper provides insights into the drivers of the resilience of the Fintech sector in Emerging Europe by analyzing the performance of 128 Bulgarian Fintech companies in the period 2000-2021. Our results show that larger and better capitalized Fintech companies which outsource their non-core activities and focus on their main competitive strengths tend to have higher operating income and profit. We also find substantial positive real-economy effects as these companies hire actively on the labor market to maintain their growth. The results are primarily driven by the post-Brexit period of 2016-2019. These results have important managerial and policy implications and provide interesting directions for future research.

Keywords: Brexit; fintech; regional clusters; resilience; emerging markets (search for similar items in EconPapers)
JEL-codes: G01 P25 R00 R11 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2022-08, Revised 2022-08
New Economics Papers: this item is included in nep-ban, nep-fdg, nep-geo, nep-pay, nep-tra and nep-ure
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https://www.uni-sofia.bg/index.php/eng/content/dow ... file/BEP-2022-07.pdf First version, 2022 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:sko:wpaper:bep-2022-07

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