Factors of Economic Growth in Bulgaria 1995-2019

The Solow growth model posits that capital accumulation constitutes a fundamental determinant of economic growth, with technological advancements enhancing its impact. In contrast, endogenous growth theory emphasises the pivotal role of human capital in driving economic progress, incorporating the accumulation of knowledge and the enhancement of workforce skills. Innovation and technological development, shaped by the workforce's expertise and competencies, are recognised as essential mechanisms for fostering economic growth. The main finding of this research is that variations in the GDP growth rate during the examined period are primarily attributable to disparities in employment growth rates. This result challenges the theoretical assertions of both neoclassical and endogenous growth models. This finding is of particular significance, as it highlights the economic growth factors that should be prioritised through the implementation of macroeconomic policies to accelerate Bulgaria's economic development. The aim of this study is to measure the extent, dynamics, and intensity of the impact of growth factors on Bulgaria's GDP during the period 1995-2019. The study employs a methodological framework based on rolling regression analysis to provide reliable empirical insights.