Science and Innovation ∙ Shioda Gmbh ∙ Steyr, Austria ∙ 2020

Science and innovation ∙ Shioda GmbH ∙ Steyr, Austria ∙ 2020 Science and innovation Collection of scientific articles Submitted for review in Conference Proceedings Citation Index - Social Sciences & Humanities (CPCI-SSH) Shioda GmbH Steyr, Austria 2020 2 Science and innovation ∙ Shioda GmbH ∙ Steyr, Austria ∙ 2020 Shioda GmbH Steyr, Austria Science and innovation Reviewers: Andrej Udovč, Doctor of Economic Sciences, Professor of Economics, Head of the cheir for agrometheorology, agricultural land management, economics and rural development Biotechnical faculty, Univerza v Ljubljani (Slovenia) Nedelea Alexandru-Mircea, Associate Professor Ph.D at Stefan cel Mare University of Suceava (Romania) Science editor: Drobyazko S.I., Doctor of Economics, Professor, European Academy of Sciences, London, United Kingdom Science and innovation: Collection of scientific articles. - Shioda GmbH, Steyr, Austria, 2020. - 116 p. ISBN 978-3-953794-29-5 Collection of scientific articles published is the scientific and practical publication, which contains scientific articles of students, graduate students, candidates and doctors of sciences, research workers and practitioners from Europe, Russia, Ukraine and other countries. The articles contain the study, reflecting the processes and changes in the structure of modern economy and state structure. The collection of scientific articles is for students, postgraduate students, doctoral candidates, teachers, researchers, practitioners and people interested in the trends of modern economic science development. ISBN 978-3-953794-29-5 © 2020 Shioda GmbH © 2020 Authors of the articles Science and innovation ∙ Shioda GmbH ∙ Steyr, Austria ∙ 2020 3 CONTENT NATIONAL ECONOMICS AND MANAGEMENT .....................................................................4 Presiana Nenkova. CHANGES OF THE VERTICAL FISCAL GAP IN DECENTRALIZED SETTINGS – EVIDENCE FROM BULGARIA ................................................................................... 4 ENTERPRISES ECONOMICS AND MANAGEMENT.............................................................10 Aljoscha Groos, Zuzana Stolicna. TECHNOLOGY TRENDS AND THEIR IMPACT ON THE GERMAN AUTOMOTIVE INDUSTRY............................................................................................. 10 Teresa Dieguez. ERASMUS STUDENT’S ENTREPRENEURIAL INTENTION ......................... 28 Kolisnyk Serhii. THE ESSENCE OF SMALL BUSINESS COMPETITIVENESS AND FACTORS OF INFLUENCE ON ITS ACTIVITIES.......................................................................... 33 Yakovlev Vladyslav, Drugova Olena. TRATEGIC MANAGEMENT OF MACHINE-BUILDING ENTERPRISES ...................................................................................................................................... 37 Ivan Grachev, Sergey Larin, Natalia Noakk. USE OF THE MODERN DIGITAL INSTRUMENT FOR SELECTING A STRATEGY FOR THE DEVELOPMENT OF AGRICULTURAL ENTERPRISES……………………………………………………………………………………42 PRODUCTIVE FORCES DEVELOPMENT AND REGIONAL ECONOMY ........................50 Antoneta Polo, Ilirjana Zyberi, Enkela Caca. GLOBALIZATION IN THE TRANSITION COUNTRIES ECONOMIES AND ITS IMPACT ON ALBANIA ................................................. 50 Ivanova Olga, Laptiev Viacheslav. UNITED TERRITORIAL COMMUNITIES DURING THE PANDEMIC: THREATS AND DEVELOPMENT PROSPECTS..................................................... 61 Kovalev G.І., Kovalova O.O. INNOVATIVE MODEL OF REGIONAL POLICY FORMATION66 OF ECONOMIC DEVELOPMENT..................................................................................................... 66 Piata L.V. BASICS OF STRATEGIC PLANNING PROCESS IN BUSINESS ENTITIES OF AGRICULTURAL SECTOR ................................................................................................................ 72 TAXATION AND ACCOUNTING SYSTEM ..............................................................................79 Leonardo Stoev. EFFICIENCY OF THE MUNICIPAL TAX ADMINISTRATION IN BULGARIA ................................................................................................................................................................. 79 MATHEMATICAL METHODS IN ECONOMY........................................................................83 Pakhomova E.A., Pisareva D.A. METHOD FOR SETTING BACKGROUND DATA AS THE BASIS FOR ANALYSIS OF THE STATE OF EQUILIBRIUM OF THE ECONOMIC SYSTEM 83 MANAGEMENT .............................................................................................................................88 Kvasko Alla. USING THE EXPERT METHOD TO ASSESS THE COMPETITIVENESS OF PRINTING ENTERPRISES.................................................................................................................. 88 MARKETING ..................................................................................................................................93 Gezim Simoni. BANK SELECTION AND CONSUMER DECISION-MAKING IN THE BANKING SERVICES INDUSTRY ................................................................................................... 93 PSYCHOLOGY, PEDAGOGY, EDUCATION, PHILOSOPHY AND PHILOLOGY..........100 Petridou Charitini. PREVALENCE OF DEVELOPMENTAL DYSLEXIA BETWEEN BOYS AND GIRLS......................................................................................................................................... 100 Arsenyev Yu.N., Davydova T.Yu. THE QUALITY OF LIFE OF THE SENIORS ....................... 108 Shavrina I.V. COMPLEX ASPECTS OF TEACHING RELIGIOUS STUDIES IN UKRAINE . 113 4 Science and innovation ∙ Shioda GmbH ∙ Steyr, Austria ∙ 2020 NATIONAL ECONOMICS AND MANAGEMENT Presiana Nenkova Assoc. Professor, Ph.D, University of National and World Economy, Sofia, Bulgaria CHANGES OF THE VERTICAL FISCAL GAP IN DECENTRALIZED SETTINGS – EVIDENCE FROM BULGARIA Abstract. The assignment of fiscal power between central and local governments throughout the decentralization process in Bulgaria has led to less pronounced revenue devolution than expenditure responsibilities devolution. About 60 percent of municipal funding consists of central government transfers and at the same time own municipal revenue did not exceeded 7 percent of total public sector revenue during the years after the start of fiscal decentralization reforms in 2003. The current study examines the changes of vertical fiscal gap in Bulgaria and determinants of its decline and increase during the period 2003-2018. Key words: fiscal decentralization, fiscal gap. INTRODUCTION Since 2002 a wide range of reforms favoring greater fiscal decentralization and aimed at increasing expenditure responsibilities of local governments and their revenue potential have been implemented in Bulgaria. Despite the expanding role and importance of local governments in the economy and the public sector during the time period, the degree of fiscal decentralization in Bulgaria remained low especially with the regard to revenue decentralization (Nenkova, 2014). Specific for public finance decentralization in Bulgaria is that during the years 2003 through 2018 central government transfers on average amounted to more than 60% of municipal budget revenue. At the same time local tax revenue barely exceeded 3.5 % of consolidated tax revenue. And while the share of municipal expenditure in total public spending reaches 15.7 % in 2018, the own municipal revenue accounts for only 5.9 % of total public sector revenue. The high degree of tax centralization in Bulgaria and the significant presence of state transfers in municipal budgets presuppose the existence of a large vertical fiscal gap. A persistent presence of fiscal gap is considered to be a prerequisite for soft budget constraints and irresponsible fiscal behavior of local governments (Karpowicz, 2012). Vertical balance in the public sector is present when ‘a broad correspondence can be found between the expenditure responsibilities assigned to Science and innovation ∙ Shioda GmbH ∙ Steyr, Austria ∙ 2020 5 each level of government and the fiscal resources available to them to carry out those duties’ (Martinez-Vazquez and Boex, 2001, p.45). Vertical fiscal gap or imbalance is always a direct result of the process of decentralization and the way financial relations between the levels of government in the vertical public sector have been designed. Narrowing the vertical gap is achieved by influencing the reasons for its appearance and eliminating the factors determining its existence. The purpose of this study is to trace the changes in the vertical fiscal gap in Bulgaria and to identify its determinants. 1. CHANGES IN THE SIZE OF VERTICAL FISCAL GAP There are different approaches to measuring the vertical fiscal gap (Kowalik, 2016). For the purpose of the current study the vertical fiscal gap will be measured as the share of local governments spending not covered by own local governments revenue (Eyraud and Lusinyan, 2013). Own revenue of municipalities in Bulgaria includes the receipts from local taxes, user fees and nontax revenue, i.e. real estate management and fines. Measured in this way and when debt financing accounts for a negligible part of local financial resources, the values of the indicator of vertical gap, denoted by VFG, will coincide with the values of the indicator of local governments transfer dependency. In Bulgaria, central government transfers contribution to the formation of the magnitude of the vertical fiscal gap is significant (Fig.1). Figure 1. Components of Vertical Fiscal Gap in Bulgaria Source: Ministry of Finance data

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