Market distortions in the transport sector of Bulgaria influenced by the activity of state-owned enterprises

Some segments of the transport sector in Bulgaria are strongly dominated by state-owned enterprises (railway, maritime and inland waterway transport). This fact leads to distortions in the free competition conditions and then questions arise as to how justified the state intervention in these segments is. The publication studied the efficiency of the state-owned enterprises in the context of public priorities, which are pursued through these enterprises’ functioning. For the purposes of the present study, the institutional method is used, which is also combined with statistical analysis, focused on key indicators for efficiency measurement. As a result of the research, the level of enterprises’ innovation is evaluated, together with the level of efficient financial sources absorption by the National recovery and resilient plan, euro funds, operational programs and state budget transfers. The results of the research show that it is necessary to be rethought the concept for domination of the state-owned enterprises in the studied segments of the transport sector in Bulgaria. They must be open to competition, including foreign private companies. The innovation potential of these enterprises is low, which corresponds to the low financial sources’ absorption by the European funds as main beneficiaries of them.