Small Open Economies in Contemporary International Trade: Theoretical Frameworks and Implications for Bulgaria

Thе article examines the concepts of small and open economies within international trade theory and explores their applicability to the case of Bulgaria. From a theoretical perspective, a small economy is defined not by its absolute size but by its lack of market power and inability to influence international prices, which positions it as a price taker in global markets. Openness, in turn, is treated as a structural characteristic reflected in intensive participation in international trade and cross-border financial flows, generating both opportunities for growth and specialization and vulnerabilities to external shocks. The article systematizes the main characteristics, policy options, and constraints faced by small and open economies, distinguishing between theoretical definitions and the practical classifications used by international organizations. Particular attention is devoted to trade policy, which in such economies is not aimed at manipulating world prices but rather at trade liberalization, diversification, trade facilitation, and integration into regional and global value chains. Against this background, Bulgaria is analyzed as a representative case of a small and open economy. Its limited domestic market, high degree of trade openness, and deep integration into the European Union shape both the opportunities and risks of its economic development. The article concludes that Bulgaria’s sustainable participation in international trade depends on adaptive policies focused on diversification, competitiveness, and the effective use of regional integration frameworks.