The Role of Bulgaria in the Global Value Chains

Paskal Zhelev
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Paskal Zhelev: University of National and World Economy

Chapter Chapter 9 in Bulgaria in the Global Economy, 2025, pp 133-146 from Springer

Abstract: Abstract This chapter examines Bulgaria’s integration into global value chains (GVCs), analyzing its role in international production networks from 1995 to 2018. It highlights the structural shift in Bulgaria’s economy toward increased reliance on foreign value-added inputs, reflecting a growing dependence on backward linkages within GVCs. The chapter explores key indicators such as domestic value added (DVA), foreign value added (FVA), and GVC position indices to assess Bulgaria’s participation relative to other Central and Eastern European countries (CEECs). The findings reveal that Bulgaria’s GVC participation has steadily increased, but its position remains predominantly downstream, focusing on assembly and processing activities rather than higher-value stages like research and development. The analysis identifies sectoral variations, with manufacturing sectors deeply embedded in downstream roles, while services like ICT and finance show relatively less dependency on foreign inputs. Comparative data indicate that Bulgaria aligns with other CEECs in its GVC engagement but lags behind older EU members, which occupy more upstream positions. The chapter concludes by recommending strategic initiatives to enhance Bulgaria’s value addition, including investment in innovation, infrastructure, and education. Strengthening institutional frameworks and fostering advanced manufacturing capabilities are essential for repositioning Bulgaria higher within global value chains.

Keywords: Global value chains; Bulgaria’s GVC participation; Foreign value added; Competitiveness; Central and Eastern European countries (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:socchp:978-3-031-87923-4_9

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DOI: 10.1007/978-3-031-87923-4_9

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