Bulgarian economy as a producer of intermediate goods for the European Union

Abstract

Relevance of research topic. In conditions of globalization, the economic development of a country depends a lot on its relations with the rest of the world. When using economic indicators, including the "foreign trade balance" one, their correct interpretation is of particular importance. Formulation of the problem. The research interest should be focused not only on the volume of exports and imports in monetary terms, but also on its structure. It is a question of what production (goods and services) the Bulgarian economy exports (respectively imports), as well as where it exports (from where the Bulgarian economy imports). Setting the task, the purpose of the study. This report aims to present the Bulgarian economy in its role of producer and supplier of intermediate products for the countries of the European Union. Method or methodology for conducting research. The study is based on the use of the input-output model and in particular the symmetric input-output tables provided by the World Input-Output Database. Presentation of the main material (results of work). This report presents the results of the study of volume and structure of exports of the Bulgarian economy as a producer and supplier of intermediate goods, directed to the countries of the European Union. The interactions with the following countries were analyzed: Austria, Belgium, Germany, Denmark, Spain, France, Great Britain, Greece, Italy, the Netherlands, Poland, and Romania. Some of the member states of the European Union are not included. The reason for this is the lack of interactions between them and the Bulgarian economy, based on the provision of intermediate products. Conclusions according to the article. The study presents only one aspect of the foreign economic relations that take place between Bulgaria and the European Union. For the most part, the relations between Bulgaria and the other economies in the European Union are based mainly on industries related to the supply of resources. Services and products with a final degree of readiness are provided to a much lesser extent.