Olga Gavrilova
PhD Student
Department of Geography, Ecology and Environmental Protection
Faculty of Mathematics and Natural Sciences,
South-West University “Neofit Rilski”, Blagoevgrad, Bulgaria
ORCID ID: 0009-0007-9710-0073, E-mail: olga.gavrilova@swu.bg
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https://doi.org/10.63711/ijdr.net20250302
ABSTRACT
Foreign direct investment (FDI) is a key element of international economic integration. It creates stable and sustainable relationships between economies, leads to increased labor productivity, improved product quality, and competitiveness. FDI promotes the creation of new jobs (increases employment and positively influences competition in the labor market), contributes to the transfer of knowledge, technology and know-how between countries, and stimulates consumption. As part of the global economy, FDI has a number of effects on the host country’s economy – stimulating integration into global value chains, modernization of production, and increasing regional competitiveness. When implementing foreign investments, not only positive developments and favorable effects can be observed, but also negative ones. In the countries of Central and Eastern Europe, FDI is not only a source of financing for economic growth, but also a prerequisite for introducing new technologies, know-how and modern market management into production. It allows the host country to gain time in absorbing such technologies and shorten the duration of economic transformations. This study examines the processes of attracting FDI within the Trakia Economic Zone (TEZ) – one of the leading industrial zones in Bulgaria and Southeastern Europe. The TEZ is distinguished as the first and longest-standing industrial zone in Bulgaria, establishing itself as a leading model for successful development and investment attraction. Trakia Economic Zone is the first public-private partnership in Bulgaria, supported by the government and the Ministry of Economy. It is one of the largest industrial and logistics complexes in Bulgaria, encompassing several industrial zones located around the city of Plovdiv. The report analyzes investment patterns, the profile of foreign companies, as well as the economic effects of FDI on the socio-economic development of the region.
Keywords: Foreign direct investment, Trakia economic zone, Economic effects, Investment models
