Regional Cooperation and Bulgaria’s Foreign Direct Investment Competitiveness
Regional Cooperation and Bulgaria’s Foreign Direct Investment Competitiveness

Author(s): Galateya Kolikova
Subject(s): Economy, National Economy, Supranational / Global Economy
Published by: Институт за икономически изследвания при Българска академия на науките
Summary/Abstract: Regional cooperation is increasingly recognised as an important factor in enhancing a country's ability to attract foreign direct investment. For Bulgaria, a strategically located Southeast European nation, regional integration frameworks play a vital role in shaping its investment climate. This paper explores how Bulgaria's participation in regional cooperation initiatives influences its competitiveness in securing foreign direct investments. Regional integration promotes economic stability, expands market accessibility, and fosters investor confidence–elements essential for attracting sustainable investment. Infrastructure interconnectivity, harmonised regulatory environments, and cross-border partnerships within Southeast Europe create synergistic benefits that amplify Bulgaria’s appeal to foreign investors. By situating Bulgaria’s investment performance within the context of its regional peers, this study aims to reveal the extent to which coordinated regional efforts enhance its relative attractiveness. The analysis draws on empirical data, including foreign direct investment inflow trends, international competitiveness indices, and regional development programs, to substantiate these claims. Despite evident advantages, Bulgaria faces challenges such as policy fragmentation and insufficient strategic alignment that limit its capacity to fully leverage regional cooperation benefits. Addressing these constraints through targeted policy measures is crucial. The study contends that a consolidated and proactive regional integration approach is important for consolidating Bulgaria's position as a competitive destination for foreign investment in Southeast Europe.

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