Does Economic Integration Affect the Structure of Industries? Empirical Evidence from the CEE

In this paper we study the impacts of regional integration on the structure of industries in the Central and Eastern European (CEE) transition economies. Our empirical analysis is based on the economic geography framework, which is able to predict not only the industry location after integration, but also to capture other general equilibrium effects, such as transition to market economy, which turn out to be highly significant in the CEE. Our empirical results complement previous findings that industry location is strongly related to economic integration. We also find that CEE integration of the Council on Mutual Economic Assistance (CMEA) has distorted the industry location pattern predicted by the underlying economic geography theory. These distortions are higher in those regions that were more integrated in the CMEA. Our ex-ante simulation results suggest a convergence in regional specialisation after CEE integration with the EU.     

An analysis of dependence between Central and Eastern European stock markets

We examine the dependence structure between four Central and Eastern European (CEE) stock markets (Czech Republic, Hungary, Poland and Romania) using static and dynamic copula functions with different forms of tail dependence. We find evidence of positive dependence between all CEE stock markets, although this dependence is stronger between the Hungarian, Czech and Polish markets than between these markets and the Romanian market. We also find evidence of symmetric tail dependence, although not for the Hungarian and Czech markets. The dependence is time-varying and intensified after the onset of the recent global financial crisis. These results confirm that CEE stock markets are gradually coupling, a fact that has risk management implications for policymakers and investors.     

HOW TRADE UNIONS ARE A ROADBLOCK TO POLAND'S ECONOMIC RENAISSANCE

The trade union movement has played an important role in the modern history of Poland. Its activism precipitated the fall of communism. Yet, with the transition to a free-market economy gaining momentum, it turned out that Solidarity embraced a vision of a new socio-economic model. Its leaders understood it as being a variant of Franco-German welfarism rather than Anglo-Saxon liberalism. Hence, as the union movement grew in power, it started to influence economic policy along interventionist lines, which not only affected labour market performance, but also the structure of the economy and the transformation processes. In consequence, Poland began to turn increasingly dirigiste. Thus the article – pointing to analogies, toutes proportions gardées, between trade union activism in the UK (1970–85) and in Poland (1990–2005) – argues that reducing the power of Polish labour organisations is a prerequisite of free-market reform and economic advancement.     

Wage and Price Inflation in Poland in the Period of Transition: The Cointegration Analysis

The paper focuses on the long run relationships between wages, prices and labour productivity in the Polish economy by applying recent developments in the field of multivariate cointegration analysis. We followed modeling strategy which is suggested by Greenslade et al. (1999) and present all stages of the analysis which leads to the fully economically identified system of equations representing long run relationships. The investigation is based on the quarterly data from 1992.1 to 1999.2 which covers the period of transition of the Polish economy from the centrally planned system towards the market one. Basing on the empirical results we can argue that wages (costs) were one of the main forces driving inflation in Poland during that period. Also labor productivity proved to be stimulated by the increase of the real wages. On the other hand the hypothesis concerning the relationship between wages and unemployment was rejected by the data.     

战后初期波兰工人党与社会党基本主张的相近性及其启示

战后初期,波兰工人党与波兰社会党关于波兰未来发展道路的基本主张有着许多的相近之处。当时,两党都同意波兰将沿着社会主义的方向前进,政治上主张多党联合执政,经济上主张多元混合经济,都希望以两个工人政党的合作为基础,通过和平的民主方式,走一条符合波兰特点的社会主义道路。比较和总结波兰两个工人政党基本主张的相近性,对于共产党探索执政规律来说,能够获得一些可以借鉴的有益启示。     

The true and fair view construct in the context of the Polish transition economy: some local insights

This paper addresses issues of financial reporting within the context of European harmonization and accession. The construct of the True and Fair View (hereafter TFV) constitutes a locus of reflection for the establishment of a mutually intelligible foundation for financial reporting in the New Europe including applicant states for European Union (hereafter EU) membership. This paper provides insights as to the meaning and the local embeddedness of TFV in the context of the Polish transitional economy.

The Audit Act 1994 and the Accounting Act 1994, as amended by the 2000 Acts, incorporate the provisions of European law with the aim of harmonizing Polish accounting and financial reporting regulations with the corresponding regulations in the EU. The Accounting Act 1994 for the first time introduced in Poland the current wording of the TFV construct in accordance with the requirements of the Fourth Directive. The question addressed in this paper is how the construct of TFV is understood and operationalized.

This paper demonstrates the particular local understanding of the TFV construct in contemporary Poland through (1) textual analysis of the legal pronouncements (both national and international) and (2) narrative analysis of local debates and commentaries in the national press and academic journals. Given the difficulty of expressing judgements based upon accumulated experience, where much of the experience is constituted by continental influence, in particular the German tradition, and regulatory arrangements of a centrally planned economy, Polish practice perceives the TFV requirement primarily as a formal and legal compliance, and not yet as something with a substantial rationale in the observance of the rule of accounting law. The paper concludes that TFV is a contingent construct which resides in a particular socio-economic, historic and cultural context and is understood differently outside this context. The local Polish reception and understanding is articulated.     

Political connections and the super-rich in Poland

We study the impact of political connections of the richest Poles on their wealth level, mobility among the rich, and the risk of dropping off the rich list. We use newly collected original panel data (2002–2018) and we find that none of the variables capturing political connections of Polish multimillionaires is consistently related neither to the size of the largest fortunes in Poland nor to the chances of upward mobility on the rich list. While we find that political connections are related to a lower probability of moving down on the rich list, we also obtain that they increase the risk of falling off the list. Our results show that, contrary to some other post-socialist countries such as Russia or Ukraine, there is little evidence that the Polish economy suffers from crony capitalism.     

Martingale difference hypothesis and financial crisis: Empirical evidence from European emerging foreign exchange markets

This study investigates the effects of the recent global crisis on the relative efficiency of six CEE currency markets, using the generalized spectral test of Escanciano and Velasco (2006) in a rolling window approach. The empirical results show that the global crisis adversely affected the efficiency of most CEE currency markets, with the Turkish lira being hit the hardest, followed by the Russian ruble, Czech koruna, Romanian leu, Polish zloty and Hungarian forint. In the first stage of the crisis, covering the second half of 2008 and the first months of 2009, all foreign exchange markets experienced periods of inefficiency. In the second stage of the crisis, the Hungarian, Polish and Romanian foreign markets recovered market efficiency quickly, while Russia, Turkey and the Czech Republic continue to register a low degree of efficiency.     

The contrasting strategies of owner-managed and foreign-engaged joint ventures under market socialism in China

Drawing upon a contingency approach, this research based on case studies offers an understanding of the conditions for contrasting growth strategies in emerging business ventures in China. It offers an insight into the interactive effect of organisational processes that are likely to shape their strategic outcomes. Ownership as a key contingency factor influences the objectives of organisations and the formation of their growth models. The empirical evidence collected from key stakeholders in a selected number of company case studies suggests that organisations with “open” structures and processes that encourage the adoption of ideas, policies and methods from both internal and external forces are more likely to adopt more high value-added strategies than “closed” entrepreneurial firms typical of organisations in the conditions of market socialism in China. It demonstrates the critical role of foreign investment in shaping local management practices in the transitional economy. It also implies that irrespective of political ideology, the creation of a market economy imposes ‘standardizing’ global similarities in business structures and processes that cut across national cultures. This is discussed on the basis of empirical data collected from interviews with key stakeholders in a number of company case studies.     

Technology transfer and the restructuring of science and technology in central and eastern Europe

Profound changes which have occurred in central and eastern Europe (CEE) have left science and technology systems in those countries in a dilapidated state. Reform efforts have focused on restructuring and privatising research institutes and promoting technology transfer between domestic institutions and between domestic and foreign institutions.¹ Both of these reform initiatives are aimed at increasing levels of innovation. Emphasis has been put on introducing the market mechanism. This paper looks at these reforms in CEE, particularly in Poland. The following broad points emerge: First, the track record of efforts to promote technology transfer need to be understood and interpreted in conjunction with a fuller understanding of institutional change, innovation and learning. Technology transfer is meant to encourage innovation, but a range of things need to happen if technology transfer initiatives are to work. Gibbons (Gibbons M. et al., 1994) observed, for example, that effective innovation requires new configurations of knowledge (and skills). The coordination activities required to effect these new configurations within and between organisations and institutions impose their own demands on actors engaged in technology transfer, which rapid privatisation or liberalisation policies in CEE do not begin to address. Reform policies which have focused on introducing new economic incentives need to address change at micro and meso levels. Creating new institutional practice depends not only on creating economic incentives but on wider reform processes, such as creating new organisational practices and encouraging the emergence of new sorts of institutions which can facilitate links. Second, the reform process is a social and political one. Changing the emphasis of policy towards technological development requires a change in power relations so that technological development and innovation, rather than success in science, are prioritised. These political battles greatly influence the pace and nature of change, and in CEE the promotion of technology and innovation is taking place in a context of social upheaval. Social consequences of reform in general and in science and technology in particular are difficult and uncomfortable, and change in this area is perhaps not yet a political priority in some CEE countries.     

Poland: the reform of the pension system

The paper presents the system of social security provision introduced in Poland after World War II and discusses the demographic, political and economic reasons for its failure, as well as its impact on the Polish economy. The proposed reform scenarios from two major political proponents, the Ministry of Finance and the Ministry of Labour and Social Policy, are described. The recently finalised reform proposal is now being introduced, starting with the Polish Parliament (Sejm) passing a package of three acts concerning the split of the current pay-as-you-go single system into a pillar system, with provisions made for a transition period. The paper outlines the proposed changes, including the new role of the Social Security Institution (ZUS) in Poland, the structure of the first pillar of benefits and the opportunities for private companies to participate in the social security provision through the second and third pillars.     

Legal Regulation of the Obligation of Employers to Provide Social Support to Employees in the Polish Legal System

The aim of the article is to present the Polish legal regulations concerning the obligation of social support to employees by employers, including the rich axiological layer having its source not only in socialist history of this country, but also in the legal principles expressed in the current Constitution. This issue may be interesting and inspiring in particular for people who, in order to better protect employees, support broader state interference in the market economy. The abovementioned obligation was regulated by the Polish legislator by the Act (and therefore for many employers is imperative) and formulated very widely (on both the objective and subjective scope). For this reason, Polish labor law, to the extent presented in this article, is in many ways unusual, compared to other legal systems, but it seems that it is still not known to a wider group of specialists dealing with labor law in capitalist countries. The paper also presents the analysis of the specific legislative solutions within the scope of the topic; for example the role of trade unions in the process of disbursement of funds from the social fund. The whole discussion is complemented by a consideration of the implementation of the social obligation to support workers by employers on the example of University in Szczecin (one of the largest universities in Poland).     

The productivity effects of employee ownership within command economies: Evidence from Poland

The effects of employee ownership, broadly defined, are estimated for a sample of Polish producer co-operatives in three industries during 1976-8, i.e. when Poland was a centrally planned economy. The results indicate that, in general, increasing either worker participation in control and/or in economic returns provides positive effects on productivity. The pattern of the different effects of employee ownership varies significantly across sectors. This new evidence strongly suggests that workers within Soviet-type economies are responsive to economic incentives. Together with existing theoretical and empirical evidence for both Eastern and Western European firms, the findings suggest a larger role for employee ownership than typically either currently exists or that is under serious consideration in most restructuring economies.     

The Fama-French model for estimating the cost of equity capital: The impact of real options of investment projects

We use the classic and modified Fama-French models to estimate the cost of capital of stock portfolios listed on selected markets. We compare four highly developed markets (US, EU, Japanese and global) and the Polish market as an alternative investment opportunity and a CEE emerging market. The performance of the applied procedures for estimating the cost of capital for company projects is examined and cost of capital is assessed with and without real option adjustment. We adjust the portfolios’ returns using the firms’ book-to-market ratios and idiosyncratic volatility as option proxies. The variability of cost of capital is evaluated using bootstrap methods. Our study shows a clear difference between bootstrapped distributions of cost of capital for the tested developed market and the Polish market portfolios. Wider confidence intervals of the estimated cost of capital of the studied Polish portfolios may result from political motivations in managing state-controlled companies. Our findings also indicate a clear difference between the cost of capital for tested portfolios with and without option adjustment. The widths of the estimated confidence intervals increase after option adjustment. The highest/lowest values of the cost of capital both with and without option adjustment are found for the US/Japanese market portfolios.     

Think talent – think male? A comparative case study analysis of gender inclusion in talent management practices in the German media industry

This paper contributes to our knowledge on talent management (TM) by conceptually and empirically investigating the peculiarities of TM and gender inclusion in talent development in the German context, as well as by analyzing whether TM is an inclusive HRM practice with respect to gender. Thus, we add an interdisciplinary perspective to the study of TM by linking it to important findings of gender and HRM studies with a specific focus on inclusion. A conceptualization of inclusive TM is suggested, and as a result of a comprehensive literature review, we identify five TM elements (talent definition, underlying career orientation, the content of talent development programs, the TM approach, and the talent selection process) which – depending on their design and characteristics – have an impact on the degree of gender bias and the discriminatory risk of TM. Respective propositions are suggested, and based on a qualitative comparative case study analysis, this paper provides empirical evidence from the German media industry, which shows important differences between cases in the identified TM elements and indicators concerning the gender inclusion of TM practices.     

Polish Stabilization: What can we learn from the I(2) Cointegration Analysis?

This paper investigates an array of nominal systems for the Polish economy, of domestic price level, import prices, exchange rates, money stock, nominal wages, and real output, and conducts I(1) and I(2) cointegration analyses. Post-stabilization monthly data are used, 1991:5–1999:12.A test for the presence of a price-wage spiral is performed, and the stabilization package is compared to its realization. The long-run homogeneity hypothesis, the impact of monetary and incomes policies, and of external sector variables on long and medium run price development are studied. It is found that in Poland, contrary to some earlier studies, the external sector is not important for the long run price development. On the contrary, very strong evidence is found of the cost-push inflation.     

Financing the social economy: a case study of Triodos Bank

Nonprofit and voluntary sector organisations are taking an increasingly sophisticated approach to their financial management, including their banking requirements. While there have been signs that the mainstream commercial banks have been responding to those needs, recent years have also witnessed a number of initiatives taken by organisations with roots closer to the nonprofit and voluntary sector. One such organisation is Triodos Bank. This paper seeks to explain what Triodos Bank does, paying particular attention to those unusual features of its operations which are likely to be of interest to managers of nonprofit and voluntary sector organisations. It is suggested thatwhatTriodosdoesisbothinterestinginitself and indicative of ways in which social economy financing might develop in the future. Copyright © 2001 Henry Stewart Publications     

The Inforum Model of the Polish Economy

A demand-oriented model for Poland is developed. A number of special features are incorporated to reflect the realities of the Polish economy and to take advantage of some of the statistics which are available in Poland but not in Western Europe. These special features include disequilibrium indicators in the consumer demand equations, direct measurement of capital stocks and technological progress, allowance for hoarding of obsolete equipment, strong connections between input coeffcients and new investment, and the treatment of liquidity overhang. Results of simulations showed correctly in advance the effects of the 1990 austerity policy. Experiments indicate the best way to use foreign investment funds.     

Measures to tame credit growth: Are they effective?

This paper focuses on policy measures taken to curb bank credit growth in the private sector in the pre-crisis period 2003–2007. Our analysis is based on an original survey conducted in 2010 on eleven central banks in Central and Eastern Europe (CEE). The findings reveal substantial policy intervention: a total of 82 measures were implemented in CEE during the period considered. The paper presents a panel data analysis of the effectiveness of the policy measures adopted in the region. The overall results indicate that certain measures – particularly asset classification and provisioning rules and loan eligibility criteria – might have been effective in taming bank credit growth, especially if applied in the context of more general policy measures featuring a combination of various instruments. However, in countries in which the authorities managed to somewhat decrease the flows of bank credit into the economy, the measures were often circumvented via direct, cross-border credit from foreign banks and credit provided by domestic, non-bank financial companies.     

An analysis of research into the future of purchasing and supply management

Business organisations are going through rapid external environmental and internal organisational changes due to increasing globalisation, E-business, and outsourcing. As a result, the future of purchasing and supply management—as a function within organisations, as a process that spans organisation boundaries and as a profession—raises important concerns for both organisations and the purchasing professional. This paper considers a broad and rather fragmented body of empirical evidence and analyses 42 relevant empirical studies on the future of purchasing and supply management. The major findings are reported in terms of changes in business contexts, purchasing strategy, structure, role and responsibility, system development and skills. Cross-sectional comparative analyses were also conducted to examine variation by sector, firm type, people's roles in purchasing, and country. A number of major implications for the purchasing function, process and professional bodies are presented together with suggestions for future research to address significant gaps in the current body of knowledge.