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The role of multinational enterprises for regional development in Bulgaria

Kaloyan Kolev

Eastern Journal of European Studies, 2010, vol. 1(2), 119-138

Abstract: This paper offers a comprehensive and balanced assessment of the spatial distribution and significance of MNEs activities for the development of regions in Bulgaria. Comprehensive official data and large business samples of foreign affiliates show that the MNEs impact is controversial as benefits are unevenly distributed across regions. The paper states that MNEs activities are not only one of the most important vehicles of local development, but also a factor in extending regional disparities in production, income and living conditions. Possible explanations could be found in the motives and structure of attracted FDI, lagging national development, low absorption capacity of regions and inadequate government policy towards FDI Key words: Bulgaria, foreign direct investment, multinational enterprise (MNE), regional development

Date: 2010
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Handle: RePEc:jes:journl:y:2010:v:1:p:119-138