Convergence of the GDP Expenditure Components in Bulgaria to the Eurozone

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Author: Nikolay Velichkov (University of National and World Economy)

Keywords: structural convergence, economic integration, Eurozone.

This paper analyzes the expenditure structure of Bulgaria's GDP by comparing it to that of the Eurozone and traces the presence or absence of convergence processes. In addition to the expenditure structure of GDP, the dynamics and relative importance of the individual expenditure components are studied and their independent convergence processes evaluated. The results show that the period up to 2008 is characterized by a tendency for increasing divergence, with net exports showing the strongest distancing from the European Monetary Union. After 2009, the negative tendency of divergence of the expenditure structure of Bulgaria's GDP from that of the Eurozone turns into a positive one - towards convergence, including in terms of expenditure components.