During the last two decades, Poland has become a large recipient of inward foreign direct investment (FDI). This article uses standard panel data techniques to study empirically the determinants of inward FDI in Poland during the period 1996–2015 made by multinational enterprises coming from the old European Union (EU)-15 member states. The estimated specification is derived from the knowledge-capital (KC) model and includes two types of capital: human and physical. The assembled empirical evidence points to the horizontal motive as the primary reason for undertaking FDI in Poland by multinational firms based in the old EU-15 member states. Moreover, the KC model does not seem to explain better the pattern of inward FDI in Poland compared to the standard ad hoc gravity model of international capital mobility.
Viktoriia Kremen, Inna Shkolnyk, Andrii Semenog and Olha Kremen
This paper examines the mainstream theories of “financial sustainability” and “financial development”. It is suggested understanding “financial development” as the complex dynamic characteristics of the financial sector, which is formed under the influence of financial and economic policy factors and the financial market functioning. The paper provides the methodology of relationship between financial sustainability and socio-economic development of countries evaluation. Based on the matrix method, it is proved that the differences in developed and developing countries occur due to the relationship between financial sustainability and financial development.
In 2018, Statistics Netherlands carried out a general benchmark revision of their national accounts statistics. The base year was 2015. Special attention was paid to the exhaustiveness of the estimates. Among other, these include estimates for illegal activities and tax evasion. In the first step, the main (illegal and off the record) activities that were not included in the regular data sources underlying the national accounts were identified. In the second step, estimates were made for each identified activity, based on the scarce information data sources available, supplemented with assumptions. This paper describes the second step. The value added of illegal activities in 2015 was estimated at 4.8 billion euros, which is 0.7% of gross domestic product (GDP). The explicit adjustment for tax evasion was about 3.9 billion euros, which is slightly <0.6% of GDP.
In order to boost students’ entrepreneurial activities, it is essential to identify the factors that form entrepreneurial intentions and to investigate how the development of these factors can be influenced. This paper attempts to explore the main drivers of entrepreneurial intentions and to examine national differences in students’ entrepreneurship by using the database of the GUESSS research project related to the Visegrad countries, namely Poland, the Czech Republic, Slovakia and Hungary. This paper adopts Ajzen’s Theory of Planned Behaviour, according to which attitudes, subjective norms and perceived behavioural control influence entrepreneurial intentions.
The results of this research confirm the significant role that attitudes, social norms and perceived behavioural control play in shaping students’ entrepreneurial intentions. Differences can be experienced not only in the level of intentions, but also in the strength of each factor across Visegrad countries, which suggests that there is a need for solutions tailored the students’ needs in different Visegrad countries. Neither the age nor the gender that are frequently investigated in the literature can significantly increase the explanatory power of the Ajzen’s model. Their effect may be perceived in different attitudes and different behavioural control.
Miroslav Žižka, Vladimíra Hovorková Valentová, Natalie Pelloneová and Eva Štichhauerová
The research presented in the paper aims to find out whether the public support (subsidies) received by cluster organizations for their development and activities is efficient. That means whether the state receives a return on investment in the form of increased revenues to public budgets. The research was conducted on a sample of seven cluster organizations that include the following sectors: furniture, packaging and textile production, engineering, the automotive industry, IT and nanotechnology. For each cluster organization, the data on subsidies was drawn from the moment of their establishment until 2017. At the same time, a list of the cluster member organizations was drawn up, with financial data being collected only for business entities. For each enterprise, information about paid corporate income tax, income tax on employment from employee wages, and social and health insurance paid by the companies and their employees was collected. In the next phase, increases in taxes and insurances were monitored and compared to the year in which the cluster organization drew a subsidy for the first time. Subsequently, the public support efficiency rate and payback period were calculated. The research results show that public support for cluster organizations is efficient, with a relatively short payback period.
Vlastimil Reichel, Daniel Němec and Jakub Chalmovianský
Using a dynamic stochastic general equilibrium model (DSGE) with the housing sector, this paper evaluates the impact of housing collateral on the business cycle in the Czech economy. We devote special attention to the setting of the loan to value (LTV) ratio, which we believe plays an important role as a regulator of the monetary transmission mechanism. The impacts of LTV ratio are quantified by simulating the responses of alternative LTV level setting on key macroeconomic variables. Our simulations are based on an estimated DSGE model. Our approach allows us to understand better the responses of the real economy to the tightening of monetary policy moderated by different LTV levels. Our results show that higher loan to value ratios strengthen the effect of the monetary transmission mechanism to consumption and output.
This paper investigates the impact of country size on the DSEG model estimation of the monetary union. Following DSGE model for fiscal policy simulations (FiMod) the union is considered to have a two-country structure, the investigated country has weight in union equal to its population share and the second country represents the rest of members. The model is estimated for different country sizes and it is found there are two areas of equilibrium instability which covers 11 of 19 European Monetary Union members. The result is in contrary with Stähler and Thomas (2012) who estimated FiMod for Spain and stated that model can be recalibrated to every member of the monetary union. According to the result the size of country matters and affects the stability of equilibrium. Therefore, special attention is paid to small economies in monetary union. The results and consequences are then discussed with examples from recent history.
The author justifies the right of business entities to free economic initiative on the basis of the human right (hereinafter ‘HR’ or ‘HRs’) to liberty, and the right to positive discrimination of small and medium-sized enterprises (hereinafter ‘SMEs’) on the HR to equality, which is in the legal sense implemented by the HR to equal protection. Such positive discrimination ensures the equal protection of SMEs in the conditions of a free market (hereinafter ‘FM’) competition. Taking HRs as his starting points, the author discusses legal policy reasons that impose the duty to enact special measures in favour of SMEs on the legislature, and evaluates the legal sources in the Republic of Slovenia that regulate such measures. By means of the results obtained from a survey conducted with SMEs, the author examines the effects of measures to ensure the equal market position of SMEs, which in the conditions of economic globalisation enables a fair market game between SMEs and large enterprises, to ensure SMEs their existence and further development.
A neglected aspect of regional trade agreements (RTAs) is their protectionist potential. In times of a stagnating World Trade Organization (WTO), growing economic nationalism and skepticism about the merits of free trade and trade agreements, the paper examines to what extent recently signed RTAs really promote genuine free trade or rather foster sneaky protectionism under the guise of free trade. For this, the paper proposes an ideal-type free trade agreement benchmark model based on a classical liberal perspective and applies it in a multiple case study approach to assess three cases of recently concluded mega-RTAs: the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the renegotiated North American trade agreement USCMA, and the Canada–European Union (EU) agreement CETA. The article shows that all of them are far from the classical liberal ideal of totally free trade and have a high content of back door protectionism suitable to raise trade barriers when politically opportune. In particular, the United States–Mexico–Canada Agreement (USMCA) includes many clear protectionist provisions that might even outweigh its liberalizing stipulations, whereas CPTPP and CETA can be deemed net liberalizing. It concludes that given political economy constraints, RTAs can nevertheless remain a second-best solution to the classical liberal ideals of completely unhampered trade and unilateral liberalization provided that they remove more impediments to free exchange than they cement or create.
This article addresses Japan’s economy, its new economic policy package, which is known as Abenomics. The centerpiece of Abenomics has been the three “economic arrows” targeted at aggressive monetary policy, flexible fiscal policy, and growth strategy. This article focuses on Abenomics and shows the measures undertaken by the administration. The research question is: to what extent the policy package contributes to stimulating the economy? This question relates to the main problem of the effectiveness of Abenomics. The main purpose of this article is an attempt to evaluate Abenomics from the perspective of 5 years since the time of its announcement.