The specialization of the Bulgarian workforce is more and more directed towards science and technology, including the it industry. Some of the companies present in the country include Hewlett-Packard, which is a positive aspect given the fact that these are also highly profitable sectors of the economy.

The second wheel of economic growth is natural resources. The country does not have significant resources of oil and gas, but it is a very important regional producer of electricity and it also boasts a specialized agriculture that includes niches in roses and cucumbers.

The third wheel is capital formation, where the Bulgarian economy still has many of the plants and factories built during the Communist period, but which have been properly equipped now, after being sold to Western companies that invested a significant amount of money to turn them around and make them efficient.

This is also the case with the fourth wheel, technology and entrepreneurship. Investment in science and technology, as well as technical equipment was significant in the last two decades and the contact with the Western economy has increased the level of...

This trend is likely to remain ascending in the next couple of years.
D) One of the macro actions that the government can offer is governmental incentives that can encourage companies to invest in research and development and in the improvement of their technological equipment. Such fiscal facilities could also be included to companies that provide training programs for their employees, all these measures thus targeting the fourth wheel, but also the first wheel, in the case of training for the employees.

Lowering the interest rates would also be a measure that would stimulate the fourth wheel, as well as, partially, the other three wheels. The explanation for this is simple: lower interest rates come to provide an easier and cheaper access to capital for companies, which will thus be able to invest the credits they obtain both into their human resource and in their capacities and equipment. Such measures are both fiscal (the previous paragraph) and monetary (the measure related to the interest rates).

Bibliography

1. Samuelson, Paul. 1997. Economics. McGraw-Hill/Irwin