Influence of Foreign Direct Investment (FDI) on the regional economic growth in the Republic of Bulgaria

In this study, the differential impact of FDI on growth in six regions in Bulgaria for the period 2000-2014, is examined and assessed. The paper is motivated by the Solow growth model and Augmented Solow growth model. The results show that the spillover effect of the foreign capital varies across the territorial areas in the Balkan country. In particular, one euro investment from abroad leads to the highest increase in the GDP per capita in Southwest re-gion, followed by Northeast and North Central. South Central and Southeast regions experience significant impact of FDI on growth as well, unlike Southwest region, where the regres-sion output shows dubious results and minimal spillover effect