65-84

• Μπιτζένης, Αριστείδης

Firms may need tax incentives to increase their viability and their profits and governments need those incentives to attract significant FDI inflows in order to decrease the unemployment rate, finance their deficits, increase their production, their GDP and thus to fine-tune their economic development. Although tax incentives in Bulgaria seem to be of less importance for the majority of foreign investors, those incentives do seem to be significant for enterprises, which belong to the textiles sector. MNEs established FDI projects in specific areas with high unemployment rates, creating an export base and exploiting mainly geographical proximity, tax incentives and low labor cost. This paper concludes that the non-fiscal incentives such as political and macroeconomic stability, functioning market economy, lack of corruption, bureaucracy and bribery or the prospects of a country to participate to the EU, together with its prospects for market growth, seem to be significantly considered by foreign MNEs.

• Economics and Business

• Finance
• Macroeconomics

Bulgaria, incentives, legal framework, transition economies, planned economy, foreign direct investment

Περιέχει πίνακες, διαγράμματα, σημειώσεις και βιβλιογραφία, JEL Classification: P2, F21, F22