MEASURING THE TRANSACTION SECTOR: THE CASE OF THE BULGARIAN ECONOMY 1997-2003

Abstract

Our paper focuses on the dynamics of the transaction sector in Bulgaria. We use a measuring strategy which had been first applied by Wallis and North in 1986. We find an increase in the transaction sector within a period of 7 years, i.e. 1997 to 2003 from about less than 40% to more than 50% percent of GDP. This is below the size reported for other industrialized and transition economies. However the result indicates considerable institutional change within a short period of time in the transition process.