Economics 21

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  SEEKING AN EXIT FROM THE CRISIS

  The theoretical conception of an exit from a crisis, which was proposed by the Nobel Prize winner P. Krugman, and the application of its basic positions in seeking ways to get out of the crisis in developed countries and in Ukraine are analysed. A peculiarity of the application of Keynes’ theory in the national economy is demonstrated. The ... The theoretical conception of an exit from a crisis, which was proposed by the Nobel Prize winner P. Krugman, and the application of its basic positions in seeking ways to get out of the crisis in developed countries and in Ukraine are analysed. A peculiarity of the application of Keynes’ theory in the national economy is demonstrated. The necessity of developing an alternative economic model applicable to Ukraine’s economy is substantiated. Some theoretical approaches to the formation of a new economic model based on a change in the current system of distribution of the aggregate added value in favour of an increase in the rate of accumulation as a necessary condition of steady economic growth are proposed.

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  THE PROBLEM WITH ECONOMIC GROWTH IN BULGARIA: CAN FOREIGN DIRECT INVESTMENT HELP

  The Bulgarian economy has consistently ranked as one of the last among the EU countries regarding national competitiveness and factor productivity. Currently, its growth is modest and cannot qualify as a catch-up. A number of analyses have been dedicated to this topic, the results indicating various qualitative and quantitative factors or their ... The Bulgarian economy has consistently ranked as one of the last among the EU countries regarding national competitiveness and factor productivity. Currently, its growth is modest and cannot qualify as a catch-up. A number of analyses have been dedicated to this topic, the results indicating various qualitative and quantitative factors or their aggregates as the cause for this lagging behind. This paper is an attempt to find out whether net foreign direct investment can help to improve the economic growth in Bulgaria. The analysis by Granger regarding the causality relationship between the GDP components and foreign direct investment inflows makes it clear that FDI affects not only government spending, which suggests that they cannot cause a change in the political institutions that determine the economic institutions. In short, at present foreign direct investment cannot be considered a source of economic growth due to the lack of investment in strengthening the market mechanisms by government.

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  THE DEVELOPMENT OF THE LABOUR MARKET IN BULGARIA AND THE IMPACT OF IMPLEMENTED POLICIES REGARDING EMPLOYMENT AND UNEMPLOYMENT

  The adequacy and timeliness of an implemented policy are crucial for the effective support of changes in the parameters of the labour market and economic development. Considering the time delay of the effects and changes. its duration should not be overlooked in order to develop preventive measures for a timely response. Shortening the period in ... The adequacy and timeliness of an implemented policy are crucial for the effective support of changes in the parameters of the labour market and economic development. Considering the time delay of the effects and changes. its duration should not be overlooked in order to develop preventive measures for a timely response. Shortening the period in which the effects of the contemporary crisis are transferred on the labour market, respectively labour demand, reflects not only the degree of elasticity of labour demand to primary markets, but also the flexibility of the implemented policies. This fact has focused attention on the flexibility of labour markets and opportunities through its increase to strengthen the mobility and adaptability of the workforce to the dynamically evolving labour demand. Considering the features of economic development and the possible impacts on the labour market is gradually becoming an inseparable part of the policy-making process in the labour market. If, in the early periods of the development of the labour market, policies were aimed primarily at tackling the effects of economic reforms on employment, at a later stage labour market policy has a pronouncedly active character and it is aimed at influencing processes or the formation of behaviour among target groups according to pre-planned targets. The functioning labour market is an adequate mechanism of the market environment and the implemented policy is increasingly based on the existing relationships and interactions between the periods of economic development and the labour market. Regulatory regimes have a certain influence on the development of the basic parameters of the labour market, but overall their impact, and that of the specific policies of the labour market for activation of labour resources, for providing employment and for better labour adaptation of the workforce have effects with limited opportunities towards the balance of labour supply and demand. The policy on the labour market in Bulgaria during the transition period so far has reflected in varying degrees the needs of the economy . In 1990-2000 this policy was built together with the development of the labour market itself and therefore its nature is mainly preventive. After 2000 the policy of the labour market involves more active programmes and activities that reflect more adequately the changes in the macroeconomic environment and the periods in the economic development. Overall, however, the active policy has a minor and a temporary role in supporting employment and cannot replace investment activities to create jobs. Economic development is crucial for supply and demand in the labour market and for its balance in the different periods of development.