## Bulgaria: Selected Issues

_IMF Staff Country Reports, March 22, 2019_

## Source details

**Canonical URL:** [Bulgaria: Selected Issues](https://www.imf.org/en/publications/cr/issues/2019/03/22/bulgaria-selected-issues-46703)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/03/22/bulgaria-selected-issues-46703/index.md)
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## Bibliographic details
- Published: March 22, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498304696.002

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### Main findings on productivity
- Firms with a higher share of innovative assets and lower financial distress are estimated to have higher productivity growth.
- Foreign, larger, and younger firms and firms in the tradable sectors also generally had faster productivity growth.
- The convergence of productivity to frontier firms may have slowed after the global financial crisis for existing firms.
- Evidence points to technological convergence for both total factor productivity and labor productivity to industry leaders. The result is robust with the coefficient statistically significant at the 1 percent level in all specifications.

### Evidence and empirical patterns
- Firm-level data analysis underpins the findings on productivity growth, convergence dynamics, and the role of firm characteristics.
- Convergence dynamics: slower convergence after the global financial crisis is highlighted specifically for existing firms.
- Productivity concepts referenced explicitly: total factor productivity and labor productivity converging to industry leaders.

### Policy recommendations and implications
- Support R&D and innovation to raise productivity growth.
- Improve the business environment through stronger institutions to:
  - improve company profitability and financial health,
  - raise investment,
  - attract more foreign direct investment.
- Reduce debt service burden to alleviate financial distress and support productivity-enhancing investment.

### Structural gaps and priorities
- Bulgaria’s R&D spending lags behind other EU countries and there is ample room for improvement.
- Enhancing the business environment and institutional quality is emphasized as a channel to improve firm performance and aggregate productivity.

### Publication metadata
- Publication date: March 22, 2019
- Pages: 33
- Volume: 2019
- Issue: 084
- Series: Country Report No. 2019/084
- DOI: https://doi.org/10.5089/9781498304696.002
- Stock No: 1BGREA2019002
- ISBN: 9781498304696
- ISSN: 1934-7685

*International Monetary Fund. Bulgaria: Selected Issues.*

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## Content in this bundle

- **Bulgaria: Selected Issues; IMF Country Report No. 19/84; March 4, 2019**
  - [Bulgaria: Selected Issues; IMF Country Report No. 19/84; March 4, 2019 (Markdown version)](/-/media/files/publications/cr/2019/1bgrea2019002.pdf.md){rel="alternate" type="text/markdown"}
  - [Bulgaria: Selected Issues; IMF Country Report No. 19/84; March 4, 2019 (PDF)](/-/media/files/publications/cr/2019/1bgrea2019002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/03/22/bulgaria-selected-issues-46703_