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Brexit and the Fintech Revolution in Europe - Lessons from the Bulgarian Digital Finance Cluster

Author

Listed:
  • Deyan Radev

    (Faculty of Economics and Business Administration at Sofia University)

  • Georgi Penev

    (Bulgarian Fintech Association, Sofia, Bulgaria)

Abstract

This paper provides insights into the drivers of the resilience of the Fintech sector in Emerging Europe by analyzing the performance of 128 Bulgarian Fintech companies in the period 2000-2021. Our results show that larger and better capitalized Fintech companies which outsource their non-core activities and focus on their main competitive strengths tend to have higher operating income and profit. We also find substantial positive real-economy effects as these companies hire actively on the labor market to maintain their growth. The results are primarily driven by the post-Brexit period of 2016-2019. These results have important managerial and policy implications and provide interesting directions for future research.

Suggested Citation

  • Deyan Radev & Georgi Penev, 2022. "Brexit and the Fintech Revolution in Europe - Lessons from the Bulgarian Digital Finance Cluster," Bulgarian Economic Papers bep-2022-07, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Aug 2022.
    • Handle: RePEc:sko:wpaper:bep-2022-07
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    References listed on IDEAS

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    More about this item

    Keywords

    Brexit; fintech; regional clusters; resilience; emerging markets;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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