Impact of the European Funds on Bulgaria’s Economic Growth and of the NMS-11’s Economic Growth as a Group

Abstract

The purpose of this study is to analyze the short-term and long-term relationship between European funds and economic growth in the new member states (NMS-11) as a group and Bulgaria in particular in the period 2014-2020. The influence of EU funding on the economies of NMS and Bulgaria has been assessed through a methodology based on Autoregressive Distributed Lag (ARDL) model. The research results imply that, as a public investment, the absorbed EU funds affect the economic growth of the NMS – 11 in the short term, but not in the long term. The analysis of the relationship between economic growth and the EU funds absorbtion rate in Bulgaria indicate that there is a short-term positive but not long-term impact of the absorbed EU funds on the growth rate of real GDP.

EDAMBA 2023: Conference Proceedings

“…Faster disbursement of funds decreases the effectiveness of the Cohesion Policy and therefore reduces the ability of the funds to stimulate economic growth (Dicharry, 2021). Durova (2022), based on an empirical survey, finds that in the short run, funds have a positive effect on the economy in Bulgaria, but overall, she rejects a positive impact (Durova, 2022). According to Bähr (2008), the cohesion policy has a significant effect on economic expansion when the states demonstrate a higher degree of decentralization (Bähr, 2008).…”

Impact of European Structural and Investment Funds on the Slovak Economy

“…(Dicharry, 2021). Durova (2022), based on an empirical survey, finds that in the short run, funds have a positive effect on the economy in Bulgaria, but overall, she rejects a positive impact (Durova, 2022). According to Bähr (2008), the cohesion policy has a significant effect on economic expansion when the states demonstrate a higher degree of decentralization (Bähr, 2008).…”