Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 23 ISSUE 4
Written by Petar BORISOV, Teodor RADEV, Kamen PETROV, Rezear KOLAJ, Ekaterina ARABSKA
The current study is focused on evaluation of competitive advantage of the wine sector as main driver of economic development of rural areas in Bulgaria. The rural development and specialization of viticulture in Bulgarian rural areas are evaluated in chronological aspect. The Porter’s model of determinants of competitive advantage is used as main methodological tool in the current study. The basic factors, which are situated as determinants of competitiveness of rural regions are those that boost the regional development of viticulture and wine industry in rural regions of the country. The specific between industry links, which are the basis for sustainable development and competitiveness, are derived and the comparative advantages are assessed by deriving a comparative index of export advantages, a comparative index of import advantages and an index of relative trade advantages. A comprehensive analysis of the constraints and opportunities for competitive development of viticulture and wine industry in the rural areas has been made. Using the approach of focus groups of experts the main determinants for rural development of the sectors is outlined. The analysis of the competitiveness of the wine sector is considered by taking into account the impact of the processes of specialization, concentration and integration of industries in the sector. As a result of these processes in the sector, specific inter-industry relations are determined, which are the basis for sustainable development of competitiveness.