Bulgaria's OECD Membership Could Boost Economy and Investments

Bulgaria's potential accession to the Organization for Economic Cooperation and Development (OECD) could significantly enhance the country’s institutional framework, according to a policy brief published by the Bulgarian Council for Economic Analysis (BCEA) under the Council of Ministers. The report highlights the potential for increased trade flows, improved reputation, and a rise in foreign direct investment (FDI), CE Report quotes BTA

The study, authored by BCEA members Plamen Nenov, Jeffrey Nilsen, Yoto Yotov, and junior associate Stefani Stefanova, examines the economic effects of OECD accession, particularly for countries similar to Bulgaria. It finds that OECD membership has historically led to persistent improvements in rule of law, corruption control, and regulatory quality, as seen in Eastern European nations like the Visegrad group.

In addition to institutional benefits, OECD membership has been linked to increased trade volumes and FDI growth. Countries like the Visegrad group experienced notable FDI increases after joining the OECD, while those that entered the EU first, such as Slovenia and the Baltic states, did not see similar gains.

The analysis concludes that beyond tangible institutional enhancements, OECD membership would provide Bulgaria with a reputational boost, helping to attract more investments. The report recommends that the Bulgarian government continue efforts to align with OECD standards to maximize these economic benefits.