SECTORAL ANALYSIS OF THE ECONOMIC BENEFITS OF BULGARIA’S SCHENGEN MEMBERSHIP FOR THE SOUTH-EAST PLANNING REGION
SECTORAL ANALYSIS OF THE ECONOMIC BENEFITS OF BULGARIA’S SCHENGEN MEMBERSHIP FOR THE SOUTH-EAST PLANNING REGION

Summary/Abstract: The present article analyses the state and the benefits of the economy of the South-East Planning Region in Bulgaria in the context of the country's full membership in the Schengen area. Bulgaria's accession to Schengen (by air and water from 2024, and by land from 2025) is considered as a key stage in the country's full integration into the European Union. The focus is placed on the expected economic impact of the abolition of border control, which is expressed in minimizing transaction costs for imports and exports, facilitating access to international and national markets for local and foreign producers and, in general, achieving sustainability of the business environment and increased economic growth. At the beginning, a brief description of the European road and rail transport corridors which passing through the South-East Planning Region, as well as the state and importance of the port and airport infrastructure is made. The study sequentially examines the three main economic sectors - primary (represented by agriculture and extractive industry), secondary (represented by industry and energy) and tertiary (tourism and services). The analysis goes through a description of the current macroeconomic indicators, the investment potential and the impact of membership in the Schengen area, taking into account the strategic location, natural resources and the available transport infrastructure in the region at the moment. Data on some key macroeconomic indicators such as "Gross Domestic Product" (GDP), population, employment and foreign direct investment are presented and analyzed in detail. The study highlights the significant role of agriculture and the extractive industry within the primary sector are presented. In the secondary sector, oil refining, energy and the manufacturing industry, and in the tertiary sector – tourism and services (mostly transport and logistics) are examined. Subsequently, the development potential in each sector of the economy is analyzed. In the primary sector, the additional benefits of Schengen membership will be realized through the free movement of labor and finished products, which will reduce the time and costs of transportation and storage of agricultural goods. The optimization of supply chains, the reduction of delivery times, the facilitated access to international markets as well as the strengthening of cross-border cooperation are some of the positive effects that will be experienced by enterprises in the secondary sector. Significant growth is also expected in the tourism and services sectors, mainly due to the free movement of tourists and labor. In conclusion, the challenges of Bulgarian (particular South-East Planning Region) membership in the Schengen union are also indicated and the need for strategic investments in the infrastructure of the region, and specific economic policies aimed at maximizing the benefits of our country's new status is emphasized.

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