IDEAS home Printed from
   My bibliography  Save this article

Why foreign banks are entering transition economies: the case of Bulgaria


  • Aristidis Bitzenis


This paper examines the main incentives and barriers for the FDI projects in the Bulgarian banking sector by employing a questionnaire survey data set. The derived results indicate that a high-risk environment, market size and bureaucracy have been considered similarly either by foreign banks or by any other multinationals enterprises participating in the Bulgarian business environment. On the other hand, macroeconomic instability, unstable legal framework, slow transition progress and lack of managerial skills have been highly considered by foreign banks as negative factors possibly responsible for limited FDI inflows in the banking sector. An unexpected finding was that corruption, crime and mafia are not taken into consideration at all by foreign banks.

Suggested Citation

  • Aristidis Bitzenis, 2004. "Why foreign banks are entering transition economies: the case of Bulgaria," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 6(1), pages 107-133.
  • Handle: RePEc:ids:gbusec:v:6:y:2004:i:1:p:107-133

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Aristidis Bitzenis & Ersanja Nito, 2006. "Lack of Financial Intermediaries as a Decisive Barrier to Entrepreneurship in Albania," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 4(1), pages 95-114.
    2. Eleftheria Koniari, 2016. "Determinants Of Greek Fdi Outflows In The Balkan Region The Case Of Greek Entrepreneurs In Bulgaria," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 12(1), pages 33-44.
    3. Flaviu Mihaescu & Liviu Voinea, 2006. "The Determinants of Foreign Banking Activity in South East Europe: Do FDI, Bilateral Trade and EU Policies Matter?," wiiw Balkan Observatory Working Papers 67, The Vienna Institute for International Economic Studies, wiiw.
    4. Juan Pi??eiro Chousa, & Krishna Chaitanya, & Bitzenis P. Aristidis & Artur Tamazian, 2008. "Determinants Of Barries To Quality Of Direct Foreign Investments ??? Evidences From South & East Asian Economies," William Davidson Institute Working Papers Series wp910, William Davidson Institute at the University of Michigan.
    5. Erdener Kaynak & Ali Apil & Serkan Yalcin, 2009. "Marketing and advertising practices of Turkish entrepreneurs in transition economies: Evidence from Georgia," Journal of International Entrepreneurship, Springer, vol. 7(3), pages 190-214, September.
    6. Aristidis Bitzenis, 2003. "Did financial incentives affect Foreign Direct Investment (FDI) inflows in Bulgaria?," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 1(1), pages 65-84.
    7. Bitzenis, Aristidis & Tsitouras, Antonis & Vlachos, Vasileios A., 2009. "Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 691-704, August.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:gbusec:v:6:y:2004:i:1:p:107-133. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmel O'Grady). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.