Interpreting business mobility through socio-economic differentiation. Greek firm relocation to Bulgaria before and after the 2007 global economic crisis

Abstract

This paper explores the roots of firm relocation through the lens of the differentiation of economic and institutional framework across countries. Specifically, it examines movements of small- and medium-sized enterprises from Greece to Bulgaria, by comparing the pre- and post-crisis socio-economic conditions between the two countries. A cultural political economy perspective facilitates a firm-focused approach to the analysis of distinct political economies by examining the business decisions for relocating. Drawing upon original data from a fieldwork survey conducted in 2014, it is demonstrated that firm relocation from Greece to Bulgaria has recently increased due to the divergence of the socio-economic conditions between the two countries in the aftermath of the 2007 global economic crisis. Firm relocation was not perceived as a solely economic decision; rather, it reflected several aspects of the Greek political economy. Overall, this paper highlights the crisis-driven disruption of the differentiation of distinct political economies through the study of business mobility.