THE OPENNESS OF THE ECONOMY AS A DYNAMIC PROCESS

                             Ivan Iliev, Associate Professor PhD
                          University of Economics – Varna, Bulgaria
                                   ilievvarna@yahoo.co.uk

                          Georgi Marinov, Associate Professor PhD
                         University of Economics – Varna, Bulgaria
                       gmarinov@yahoo.com, gmarinov@ue-varna.bg
                (participation of both authors should be considered as equal)


ABSTRACT: The issue of the openness of the economy is becoming more important recently,
especially given the development of global economy in last years and months. As openness is
to be regarded as a dynamic process, flexible in both directions, problems with the visions for
the openness arise with time, especially for transitional economies, given the fragility of their
markets.
In applying some econometric methods on external trade data we aim to shed some light on
the dynamics of the openness of the economy of Bulgaria after 2000.

Keywords: open economy, Grubel-Lloyd index, transitional economy

JEL Codes: F14, F41, O11, O52, P23