Comparative Economic Research. Central and Eastern Europe
The journal seeks to publish original comparative research, as well as results of empirical, comparative economic and social studies related to Central and Eastern European Countries.
Institutional Models of Foreign Direct Investment Attracting. Comparative Aspects
The chapter examines the effectiveness of different institutional models of foreign direct investment (FDI) attracting and the relationship between institutional framework and the scale of FDI flows into countries being in process of catching up with developed economies. The experience of such countries as Ireland, Czech Republic, Hungary and Poland is used for studying this problem. The results indicate that the most effective institutional framework supporting the inflow of FDI to a host country is to set up a quasi-governmental agency promoting FDI. This agency should be of one–stop-shop character and endowed with appropriate authorisation. The adopted institutional framework must be harmonised with the basic assumptions of the policy towards foreign investors. The scale of FDI inflows into host countries depends only to limited degree on institutional solutions. The character of policy towards foreign investors and traditional location advantages seem to play more important role.
Copyright (c) 2006 https://creativecommons.org/licenses/by-nc-nd/4.0
Improving Business Environment in CEE Countries as a Factor of Their Membership in the European Union. Comparative Aspects between Poland, Czech Republic, Slovakia and Hungary
The chapter focuses on the comparison of the most important macro- and micro- determinants shaping the business environment in CEE countries in the period before the membership in the EU. The paper will examine and compare the most important effects of the internalization and modernization processes in the analyzed countries with special reference to: structural changes in foreign trade, FDI and GDP formation, indices of competitiveness on the European internal market in relation to the EU market openness (reduction of tariffs barriers and quantitative restrictions for industrial products) and to their adaptation to external tariffs level and EU common trade policy, macro-economic stability -adaptation to Economic and Monetary Union convergence criteria, changes in the level of enterpreneurship measured by the activity of SME's enterprises, changes in the level of innovativeness of SME's, main demand's and supply's barriers in the SME's activity, barriers and stimulators in the creation of innovation in SME's, adaptation of SME's to international norms and standards quality and ecological).
Migration of Workers and Persons and the Integration Processes in the Polish Labour Market with Respect to Poland’s Membership in the European Union
This study attempts to present migration trends in Poland against the backdrop of integration processes occurring in the labour market in the context of Poland’s membership in the European Union. The chapter consists of 3 parts: presentation of the limited access of Polish labour workforce to the EU labour market within the Europe Agreement and Accession Treaty, presentation of recommendations of the European Commission for the candidate countries’ adjustments in the following areas: co-ordination of the social security systems, equal treatment of men and women, occupational health and safety, some aspects of the labour law. presentation of some trends of migration (immigration and emigration ) into and from Poland during the transition period.
Regulation and Deregulation Processes in CEE Countries and International Business: the Case of Poland
This chapter focuses on the trends and offers an assessment of the regulatory and deregulatory changes taking place in those selected Central and Eastern European Countries from the viewpoint of international business. The authors also attempt to analyze the influence of the regulatory and deregulatory changes upon the conduct of international business in these countries as well as the effect of such changes upon the values of macroeconomic indicators achieved by the countries analyzed. As regards the latter, however, it should be pointed out that it is very difficult to distinguish between the effects achieved as a result of regulatory and deregulatory practices and the overall effects achieved resulting from a combination of other factors, and nearly impossible to quantify the same.
Competitiveness of the Polish Textile and Clothing Sector within the European Integration Process and the Liberalization Procedures of GATT/WTO Agreement (ATC)
The aim of the chapter is to discuss the liberalization process within the ATC (Agreement on Textiles &Clothing) within GATT/WTO and its impact on the competitiveness of the EU and Poland in the global market of T&C. The Agreement of Textiles and Clothing as a transitional instrument, built on the following key elements: the product coverage, a programme for the progressive integration of these textile and clothing products into GATT 1994 rules, a liberalization process to progressively enlarge existing quotas (until they are removed) by increasing annual growth rates at each stage. The paper focuses also on the analysis of recent trends in T&C in the EU and Poland with special reference to the shaping of comparative advantage indices of Polish exporters in the EU internal market.
Impact of Foreign Trade and Foreign Direct Investment on the Labour Market in Central and Eastern Europe. The Case of Poland
The aim of this chapter is to assess the activities of international business from the point of view of its effects on the labour market of Poland as a country in Central and Eastern Europe which was in the process of undergoing systemic transformation. This analysis covers two spheres, i.e. foreign trade and the activities of transnational corporations in Poland. An attempt will be made to discuss the following issues: Implications of the international business on the situation on the labour market of the economy undergoing the transformation from the centrally planned into market economy; Consequences of the establishment of the free trade area with the EU in Poland and the trade liberalization process within the WTO for the Polish labour market during the accession period; Implications of the inflow of foreign direct investment into Poland on the labour market situation.
Foreign Direct Investors’ Behavior in CEE Countries in the Process of the EU Enlargement
Strategies of transnational corporations (TNCs) for making investment abroad are influenced by deepening and widening of the European integration processes. The aim of this chapter is to present answers to the following questions: to what extent do enlargement change foreign investors’ strategies towards CEE countries? Do activities of firms with foreign participation enhance adjustment processes in CEE countries to their membership of the EU? The research results show that firms with foreign participation which operate in CEE countries gain a stronger and stronger position in their economies. They are better prepared than domestic firms to include into the single European market as far as reaching quality and environmental standards is concerned. Hence, their presence in CEE countries makes easier the adjustment processes to the requirements of the EU membership. However, some aspects of their activities in the domestic economies may bring about some impediments to these processes.
Foreign Direct Investment and the Socio-economic Cohesion of the European Union: Experiences of the New Member Countries
International economic integration can worsen the situation of so called problem regions within the integrated area, i.e. less developed regions or undergoing structural transformation or located in peripheries. The aim of this chapter is to discuss the role of foreign direct investment (FDI) flowing into the new member states in economic and social cohesion of the enlarged Union and to answer a question whether it enhances or impedes the cohesion of the EU. This problem has several aspects and it could be examined at the European, national and regional levels. This chapter focuses on FDI flows into the new member states and their regions, with special reference to Poland, Hungary, the Czech Republic and Slovakia. The enlargement of the EU brought about an unprecedented widening of economic and social disparities within the Union which must be treated as a challenge that the enlarged EU faces. Although the impact of FDI on the socio- economic cohesion of the EU 15 examined at the European level seemed to be limited, the enlarged EU can benefit from FDI inflows stimulating the development of all the new Member States. The impact of FDI on the socio-economic cohesion of the enlarged EU examined at the national and regional levels is controversial. FDI seems to stimulate disparities between regions of the EU and within these regions. FDI tends to be located in the most dynamic regions of host countries which consequently makes catching up processes of lagging regions even more difficult.
Leasing – a Catalyst of Innovative Processes
The article discusses the extensive, ever richer, and better and better adjusted to firms’ needs range of leasing options available for financing innovations. By its very nature, leasing accelerates the transfer of modern high technologies. The article indicates barriers that hinder the full use of leasing, such as „defective” regulations that make inconsistent actions arising from accounting law, civil law and tax law, and highlights leasing advantages and chances for development in the interest of the Lisbon Strategy.
Copyright (c) 2007 https://creativecommons.org/licenses/by-nc-nd/4.0
Impact of the European Integration Processes on Internationalization of Small and Medium-sized Enterprises
Internationalisation of small and medium sized enterprises (SMEs) may develop in different ways. One is a traditional, gradual transition through successive phases of internationalisation (a step-by-step process, like ‘rings in the water’).The other one has been labelled „Born Globals”. The foreign market entry choice open to SMEs may include: export activities, co-operation and foreign direct investment (FDI). This choice is determined by the assets and competitive advantages a given SME holds. The aim of this chapter is to examine the interrelationship between internationalization of SMEs and the European integration processes. Special attention will be paid to FDI as a form of SME internationalization in the new member countries.
The Optimal Inequality of Earnings – the Econometric Analysis
Our aim is to build an econometric model of growth, in which we will try to estimate the optimum inequality of earnings. By optimum we understand such an inequality of earnings with which the rate of the GDP growth will be the highest. The calculation of the optimum inequality of earnings will be possible by means of the introduction of a variable into the model – the inequality of earnings in a parabolic shape. We adopted hypothesis that the optimum inequality of earnings exists. If the inequality of earnings is smaller than the optimum one, the most creative, hard working and efficient individuals are not sufficiently paid and motivated to use their abilities in the production process of the GDP. If the inequality of earnings is higher than the optimum one, workers with lower qualifications receive a low pay, which is accompanied by the sense of injustice or even sometimes of exploitation. The sense of injustice and exploitation threatens human bonds, limits trust and social capital. Only the financial factor is a motivations to efficient work. However, there is a lack of full, creative engagement of numerous employees earning below the average pay. An empirical analysis was conducted for the Polish economy between 1980 and 2004. Our initial estimation shows that since 1996 the inequality of earnings has been higher than the optimum one and it has been increasing gradually. The greatest setback of the GDP growth caused by an excessive inequality of earnings took place in 2003 and 2004, when it exceeded one half of one percentage point. The outcome seems overestimated unless we assume that the variable represents not only itself but also other variables, for instance the crime rate. What sense does an optimum inequality of earnings estimated in such way have? As we believe this is the optimum inequality in the sense of the social consciousness and the social sense of justice. If the inequalities in earnings of the most educated and efficient and the least educated and efficient correspond with the social sense of justice then it is the easiest way for a good co-operation, the reinforcement of social bonds, trust and social capital. So it is the inequality of earnings optimum in the sense of the provision of the best social co-operation in the generation of GDP. We are of the opinion that a similar attitude may be applied in search of the regional optimum GDP per capita inequality, the optimum one in the sense of the maximum increase of the whole country’s GDP growth. Similarly one may search for the optimum GDP inequality per capita in a group of countries, such an inequality with which the whole group maximizes its pace of economic growth.
State aid in Poland – the realization of the Lisbon Strategy
This paper analyses the realization of the Lisbon Strategy in Poland concerning state aid granted in the period 2004-2005, especially commitments to: reducing the level of state aid in relation to GDP in the period 2004–2005, redirecting state aid from sectoral objectives towards horizontal and regional ones, changing the forms of state aid – from passive to active The analysis presented in this paper proves that changes in the volume, allocation directions and forms of state aid awarded in Poland in the period 2004-2005 are fully compatible with the guidelines of the Lisbon Strategy.
Copyright (c) 2026 https://creativecommons.org/licenses/by-nc-nd/4.0
Budget Deficit in Poland – the Sources of Growth
Highly imbalanced public finances are indicated as one of the major problems in the Polish economy. This paper is an attempt of a case study dealing with the fiscal policy evolution in Poland between 1995 and 2004. It aims at examining the course of the budget deficit and its determinants, paying special attention to the analysis of the factors that contributed to the considerable growth of budgetary deficit in the years 2001-2002. The analysis discusses several stylized facts characterizing the national budget development in Poland in the period 1995-2004. Throughout the examined period budget revenue almost did not change in real terms, excluding the years 1999 and 2003, when it grew. In real terms the growth totaled 10.7%. Expenditures showed a similar stability until the year 2001 being the first year of their strong growth. As a result, the 2004 expenditures were more than 20.4% larger than in 1995. In addition, in the time span 1995-2004 both revenue and expenditure dropped in relation to GDP, by 3.9% of GDP and 2.3% of GDP, respectively. In the analyzed period expenditures clearly expanded in three sections, which explains over 88% of the total expenditure increase in real terms. These sections are social insurance, education and healthcare.
The Implications of European Economic Governance for International Business in the New Member States: Experiences of the Czech Republic, Hungary, Poland and Slovakia
This chapter focuses on the impact of European economic governance on international business behaviour in the new member countries of the EU. The experiences of the Czech Republic, Hungary, Poland and Slovakia during both the pre- and post-accession periods are examined. The main tasks of the paper are as follows: to define the notion of ‘European governance’ and to examine the relationship between European economic governance and global governance; to analyze the impact of European economic governance on international business within the Single European Market and the impact of different EU policy instruments on international business behaviour following the accession of the New Member States; to present international business performance in the Mew member States.
The Importance of Support of Enterprise in Poland. Case Study of High-Tech Accelerator & Incubator and Innovation Centre of the University of Łódź
The institution of accelerator and incubator is generally perceived as an effective and efficient way of supporting all innovative ideas within many sectors. The subject of this paper is the attempt to identify the methods and tools of business enterprise support offered within the framework of High-Tech Accelerator & Incubator and Innovation Centre of the University of Łódź.The basis for factual material was the questionnaire addressed to the management of Accelerator. The article focuses also on the potential and existing problems which are serious obstacles in building and development of innovative and enterprising attitudes among academic environment in Poland.
Copyright (c) 2008 https://creativecommons.org/licenses/by-nc-nd/4.0
The Changing Pattern of Japanese Foreign Direct Investment Models in Europe (especially CEE) as a Consequence of the Globalization and the Development of the Knowledge – Based Economy
The article presents model of Japanese investments and flows of foreign direct investment from Japan. The ongoing globalization process has forced a quest for new region as locations for Japanese FDIs. Japanese investment flow to the Central and Eastern Europe uses a secondary path-i.e. by way of Western European division. The example of Poland demonstrates that this manner of investment is dominant. Japanese FDIs facilitate the creation and development of a knowledge-based economy.
Evolution of Innovation Policy in Poland in a Period of Economic Transformation
The paper considers the very important problem of innovativeness of Polish economy with particular attention given to its innovation policy. The major thesis of paper argues that the growth of innovativeness in Polish economy requires structural, institutional and financial changes in the long run. The changes which have taken place so far in the process of transformation should be considered as insufficient. The paper is divided in two parts. First deals with the short characteristics of innovative potential and innovative activity of the Polish economy. Second is devoted to the problem of innovation policy in Poland. This policy should, in its nature, be a horizontal one and should interrelate a scientific-technological policy with an industrial policy. In view of this fact there is an obvious need to co-ordinate the actions of the governmental institutions which should co-operate to create the strategy of the development of science and technology compatible with the directions of modernisation of the economy.
The Knowledge – Based Economy in the New Members States of the European Union: Methodological Aspects
The concept of a knowledge–based economy as developed since the end of the 20th century is no subject to multiple theoretical approaches as well as varied methodological efforts. This has become a starting point for classifying sectors or even entire economies in terms of intensity of impact of knowledge as well as the developing of rankings defining the general position of a country assessed with respect to level of implementation of the knowledge–based economy model. The article presents an overview and classification of research methods in the realm of the knowledge–based economy—OECD, World Bank, and European Union—as well as the results of rankings using the Knowledge Economy Index (World Bank Institute) for the new member states of the European Union.
European Union Environmental Policy and Foreign Trade in Environmental Products in Central and Eastern Europe with Special Reference to Poland
The aim of the paper is to present some theoretical and empirical results of the relationship between the EU environmental policy instruments and requirements and the effects in foreign trade of environmental products in some Eastern European countries in Central and Eastern Europe. Research results confirm the pro-ecological emphasis of transition economies’ restructuring efforts, particularly when read together with the significant increase in their foreign trade in environmental goods and services.
The Role of Foreign Direct Investor Policies in Creating a Knowledge – Based Economy in the New Member States of the European Union
The objective of this paper is analysis and assessment of policies applied to foreign investors in the new member states of the European Union (EU) in the context of challenges ushered in by the creation of a knowledge–based economy. Foreign direct investments are considered an important factor accelerating economic modernization by these countries. European Union membership has increased the investment attractiveness of the new member states. However, the new members generally continue to occupy a humble position among the expanded European Union (EU–25) as countries accepting foreign capital in the form of foreign direct investment. All of them offer a rich set of incentives for investors, including foreign investors. Significant portions of the financial and fiscal incentives are aimed at supporting knowledge investment in their broad sense
Foreign Direct Investments in R&D in Poland as an Instrument Implementing EU Technological Policy
Making economies more competitive has become the key goal for most industrialised countries that wish either to retain or to enhance their international position. Leaders of the EU member states, trying to improve the situation in the entire group, formulated a technological policy at the Community level and set specific goals for attainment. In addition, foreign enterprises’ interest in the EU market and the pursuit for competitiveness make the enterprises perceive the creation of knowledge and activities offering high value added as a very attractive investment target. For that reason, foreign direct investments in R&D that improve country’s competitive position are a very important instrument for every member state, as they help attain the Lisbon Strategy goals. This paper discusses foreign investors’ involvement in R&D activities in Poland. The analysis concentrates on three closely related aspects – methodological issues associating technology transfers with R&D activities; the extent and degree to which foreign investors utilise Poland’s scientific potential and finally legal aspects of various incentives attracting firms to the R&D business. The conducted analysis of statistical data reveals that transnational corporations had not shown much interest in research and development activity in Poland from early 1990s. Their attitude changed only in the last several years. Indicators such as total R&D spending, the structure of budget allocations to the industry, employment in the R&D sector and patent applications submitted in Poland (also under PCT) indicate that most foreign firms active in Poland use the output of their parent-companies. However, greenfield investment projects establishing new R&D centres and increasing employment in the existing ones that have been launched in the recent years suggest that the situation is changing. Discussing issues in Poland’s research and development potential and the newly introduced legal measures making R&D a more attractive business, the author endeavours to find out why foreign firms changed their attitude to R&D.
Economic Analysis of Modern Textiles & Clothing Market within the Process of Final Completion of the ACT/WTO Agreement
At the summit in Lisbon in March 2000 the European Council confirmed that: the strategic objective of Europe for the forthcoming decade is to become the most competitive and dynamic knowledge-based economy, capable of sustained economic growth accompanied by improved number and quality of jobs and better social conditions. For enterprises in Europe this translates into necessary endeavours targeted to enhanced competitiveness being interpreted as an enterprise’s ability to steadily stimulate development, to increase productivity and to enlarge markets under strong competition. With respect to macro economy, competitiveness is identified with a steady upward trend measured by GDP growth, productivity of resources and factors of production growing in macro terms and economic expansion on the international market (enlargement of the existing and entering into new markets), that is with the capability of offering new, better and cheaper services in a competitive environment. M. E. Porter equated competitiveness with productivity and stressed the importance of identifying their determinants. The primary factor cited as a determinant of competitiveness in macro as well as micro terms is human resources. According to an OECD definition competitiveness denotes the ability of firms, industries, regions, nations or transnational groups to confront international competition and to secure sustainability of a relatively high rate of return on the employed factors of production and of relatively high level of employment. In the long term improved competitiveness yields a growth in total productivity. Higher productivity is particularly important for more successful competitiveness on markets open to international competition. The synonym of improved competitiveness is higher productivity. Enterprises are competitive when their productivity of labour and all factors of production are consistently growing, which situation allows them to reduce the unit costs of their output, etc., but affects also other enterprises at the national and international levels. Higher productivity provides funding for organisation’s expansion plans. In the short term citizens benefit from better and cheaper products available on the market and in the medium term from growing employment. Another effect is a constant growth in wages in real terms. As a result a country’s living standard goes up when its productivity (in macro terms) growth is sustained. Therefore, an enterprise plays the primary role in generating revenues and employment and contributes to a lasting and balanced economic and social development. Productivity growth depends on a number of factors, among which innovations and investments in the ICT sector and on development of the human capital belong to the most important. Economic development and productivity growth result from educated workforce. Human capital, especially in technological sectors, makes productivity grow due to the accumulation and dissemination of knowledge. Knowledge and the skill of its efficient application are the key to the competitiveness of economies. It is practical to develop and pursue activities that aim at providing people in Europe with sufficient knowledge, appropriate strategies and workable methods accelerating teaching available for everyone1. Consequently, higher productivity determines both improved competitiveness of economy as a whole and its balanced social and economic development. In setting out its renewed Action Programme for Growth and Employment, the Commission declared its commitment to focusing the renewed Lisbon Strategy on growth and employment. To do this the EU’s priorities were declared to be: Making Europe a more attractive place to invest and Putting knowledge and innovation at the heart of European Shaping policies to allow businesses to create more and better This Communication on industrial policy was announced under the Community Lisbon Programme of July 2005 and represents an important contribution to the achievement of these objectives. The health of manufacturing industry is essential for Europe’s ability to grow. Whilst it is currently undergoing important changes and facing major challenges, it needs a favourable business environment to continue to develop and prosper. The main role of industrial policy is to provide the right framework conditions for enterprise development and innovation in order to make the EU an attractive place for industrial investment and job creation.
Social Aspects of International Trade in Central and Eastern Europe within the European Integration Process – Case of Poland
The aim of this article is to assess the activities of international business from the point of view of its effects on the labour markets of those accession countries which are undergoing systemic transformation. This analysis covers two spheres, i.e. foreign trade and the activities of transnational corporations in the Central and Eastern European Countries (CEECs) in light of their accession to the European Union. Many of the countries undergoing economic transformation from centrally-planned to free-market economies experienced high trade deficits in the initial period of ownership transformation, in part owing to the predominance of import in the economic activities associated with foreign investment, which in turn exercised a negative effect on their labour markets. Subsequently the trade deficit was incrementally reduced as the share of firms with foreign capital in overall export began to increase and the overall national economies increased their capacities to bring in and handle foreign investment. This increase in exports and reduced trade balance had the effect of creating new jobs.
Changes in the Structure of Employed Persons in Poland in 1992–2006
The aim of the paper is to characterise changes in the structure of employed persons according to social and demographic features in Poland in 1992–2006. The following criteria of structural changes have been taken into consideration: sex, age, education, occupation and place of residence. Criteria mentioned above emphasise those features of individuals which determine employers’ demand for their work, while the very demand influences improvement of situation on labour market. In order to evaluate the direction and scale of changes in the structure of employed persons in Polish economy, the comparison of these changes with the ones in other European Union countries has been made.
Activity of Polish Service Providers after Poland’s Accession to the European Union
In the article the effects of the accession on Polish service providers’ activity are analyzed. In the introduction the author presents changes in the access of Polish service providers to the European Single Market that mainly concerns the possibility of taking full advantage of freedom to provide services. Then Polish transactions in services are analyzed in the pre-accession and after- accession period (years 2000-2006). The aim of this analysis is to indicate main tendencies and changes in the service transactions with the EU in the analyzed period. Next the author analyzes the barriers that still impede the functioning of the single market for services, including those that face Polish service providers on the European market. In further work the author presents different actions aimed at strengthening integration of service market, including changes in freedom to provide services that will be implemented thanks to the directive on services in the internal market, approved by member states in 2006. At the end the results of various questionnaire surveys conducted among Polish entrepreneurs are presented, which aim is to show the service providers’ assessment of accession effects.
Polish Market of Production Factors and the Process of European Integration
This paper analyses and evaluates the integration process between Poland and the European Union with respect to the market of production factors, paying special attention to FDI and the labour market. Some consequences of liberalization of the capital and labour markets for the Polish economy are also discussed. The integration processes taking place between Poland and other EU member states in the two segments of the factor market are irregular. Formal integration of the capital markets is complete and actual integration is well underway. The Polish labour market and labour markets in other member states have not been integrated yet, even though some countries have opened them to the Polish workers.
The aim of this paper is to analyse and evaluate the European Union (EU) position with respect to global FDI flows, as well as factors influencing it. A comparative analysis of the position is made against a group of highly developed countries, including Union’s main competitors (e.g. USA and Japan). The paper discusses also the intra-EU flows of FDI. Special attention is paid to the monetary union and common currency (the euro) and how they shape FDI flows going inward and outward of the European Union and the euro zone.
Competitiveness of Economies in the Light of Transaction Cost Theory
In the light of the new institutional economics, the most significant pillars of competitiveness among the post-socialist countries are those constituted by institutional requirements that influence transaction costs. Exact transaction costs and institutional conditioning of competitiveness of specific economies can be inferred from the Doing Business reports. The significance of institutional framework as one of competitiveness requirements has been allowed for in the composition of the Global Competitiveness Index (GCI). Analysis of GCI indices relating to the post-socialist countries, it could be concluded here from the new institutional economics perspective, that essential components of the indices methodology obscure the great improvement potential for competitiveness that lies within the institutional area.
Is Corporate Income Tax Harmonization Possible in an Enlarged European Union?
The paper presents evolution of changes in the corporate income tax rates in European Union. Enlargement of the EU generated a serious conflict inside the Union. At a base of the conflict lied significant differences in the CIT rates between the “old” and the “new” EU members. Different explanations for “tax competition” are presented as well as some arguments indicating that CIT harmonization is neither possible, nor advisable at the moment.
The Market of Goods. Adaptation of New Eastern European Member States to EU Requirements with Special Reference to Poland
The aim of the article is to present main tendencies in the market of goods in the European Union and in Poland as the accession country , with special reference to foreign trade and competitiveness indices. Poland achieved during the adaptation period to EU requirements big progress in structural adjustments in its foreign trade calculated according to factors of endowment . This progress was connected with restructuring of production and the increase of the share of manufacture products and highly processed agriculture products and with the better access to the EU internal market.