Chief Editor
  • Prof. Christina Nikolova, PhD
Editorial Board
  • Prof. Christina Nikolova, PhD - UNWE
  • Prof. Elka Todorova, DSc. - UNWE
  • Prof. Maya Lambovska, DSc. - UNWE
  • Assoc. Prof. Todor Nedev, PhD - UNWE
  • Assoc. Prof. Dorina Kabakchieva, PhD - UNWE
  • Assoc. Prof. Paskal Zhelev, PhD - UNWE
Scientific Secretary
  • Assoc. Prof. Aleksandar Valkov, PhD - UNWE
  • Assist. Prof. Veselina Lyubomirova, PhD - UNWE
International Editorial Board
  • Damian Stantchev, PhD
    Edinburgh NAPIER University, UK

  • Ivaylo Vassilev, PhD
    University of Southampton,UK

  • Prof. Irina Kuzmina-Merlino, PhD
    Transport and Telecommunication Institute, Riga

  • Milan Zdravkovic
    University of Niš, Serbia

  • Prof. Niculae Mihaita, PhD
    Bucharest Academy of Economic Studies, Romania

  • Prof. Ricardo Jardim-Gonçalves, PhD
    UNINOVA institute, New University of Lisbon, Portugal

  • Prof. Ing. Jaroslav Belás, PhD
    Tomas Bata University in Zlín, Czech Republic

  • Prof. John Rijsman, PhD
    Tilburg University

  • Prof. Ing. Zdenek Dvorák, PhD
    University of Zilina, Slovak Republic

  • Prof. Zoran Cekerevac, PhD
    “Union – Nikola Tesla” University in Belgrade, Serbia

Is Bulgaria Ready to Join the Euro Area – Income Convergence or Similarity of Shocks Criteria?
year 2023
Issue 2

Is Bulgaria Ready to Join the Euro Area – Income Convergence or Similarity of Shocks Criteria?


This article decomposes AD-AS shocks across EU countries using the traditional B-Q SVAR model. The results provide evidence that fluctuations in the Bulgarian economy have a similar origin and contribution to growth as those in the euro area. Therefore, the slower pace of income convergence to EU/EA levels is determined by domestic (fiscal) policy. This calls into question the causality of the argument that Bulgaria will accrue negatives if it adopts the euro before reaching some “mystical” GDP per capita threshold. The EMU integration is likely to produce more net benefits for a larger group of countries with similarity of shocks and may explain why the euro area now has more members than would have seemed possible since the Great recession.

JEL: E52; F33


monetary policy, EMU, SVAR, AD-AS shocks
Download YB.2023.2.05.pdf

ISSN (print): 1312-5486
ISSN (online): 2534-8949