Contents of issue 1-2/2013
Dariusz Cezary Kotlewski - Impact of International Trade on Economic Growth, abstract
Elżbieta Duliniec - Theoretical Approaches to Early and Quick Internationalization of Companies, abstract
Milena Ratajczak-Mrozek - The Internationalization of Polish High-Tech Companies and Their Cooperation with Foreign Firms, abstract
Jakub Janus - The Implications of the Bank of Japan’s Experience for the Federal Reserve’s Monetary Policy During the 2007-2011 Crisis, abstract
Justyna Majewska, Szymon Truskolaski - The Role of Knowledge-Intensive Services in Stimulating Innovation in Poland, abstract
Mateusz Pawlak - Overcoming the Divergence Between the National Fiscal Policies in the EU, abstract
Natalia Gorynia-Pfeffer - The Concept of the National Innovation System, abstract
Book Review: Galor Oded, Unified Growth Theory
, Princeton University Press, Princeton & Oxford 2011, 325 pp. - reviewed by Krzysztof Malaga
Book Review: Wacław Jarmołowicz, Katarzyna Szarzec (eds.), Liberalne przesłanki polskiej transformacji gospodarczej
(The Liberal Premises of Poland’s Economic Transition), Polskie Wydawnictwo Ekonomiczne, Warsaw 2011, 301 pp. - reviewed by Marek Piosik
Book Review: Agnieszka Fihel, Płeć a trwanie życia. Analiza demograficzna
(Gender and Life Expectancy: A Demographic Analysis), Uniwersytet Warszawski, Wydział Nauk Ekonomicznych, Warsaw 2011, 187 pp. - reviewed by Ewa Frątczak
Dariusz Cezary Kotlewski - Impact of International Trade on Economic Growth
The aim of the article is to explain how international trade impacts the level of economic growth in both the short and long term. At first the analysis deals with several versions of the Factor Endowment Theory and the reasons for its poor empirical evidence are theoretically explained. The Integrated Equilibrium technique is used to account for all the supply-side motives to trade, which is possible thanks to D.R. Davis’ theory of intra-industry trade. This analysis shows that trade generated by endowment differentials will never find its clear representation in aggregated macroeconomic statistical figures, because it is submerged in a larger entity of trade motivated by the need for differentiation. Only when there is no trade at all or it is insufficient the endowments theory can be useful to create some new streams of trade. These facts are already present in the established theory, but some new technical solutions and irrefutable explanations are contributed by this analysis.
In light of the above-mentioned limitations, an initial model of P.R. Krugman, inspired by the well-known formula of A.K. Dixit and J. Stiglitz for diversity-motivated trade, is developed. The model is generalized by extending its basics beyond the unique factor (i.e. labor) used by P.R. Krugman in order to cover all the factors and save some of the logic of the endowments theory. However, the need to use a Cobb-Douglas type function has been confirmed in the process. P.R. Krugman’s attempt to consider all goods as perfectly symmetric against the utility function has been proven as definitely feasible and a precondition to express the utility function désormais in monetary units. This, in turn, allowed the author to deliver his main contribution by setting a formal model explaining how international trade (and, for obvious reasons, also inter-regional trade in the case of large countries) impacts the level of economic growth. To outline the limitations of the proposed model, the long-term impacts of trade have been presented based on P.R. Krugman’s New Economic Geography theory, combined with the author’s own findings about non-labor dependent industries belonging to the so-called second sector.
The main conclusion is that, at a given moment of economic history, the growth of an economy is strictly related to its international and inter-regional trade, and this can be used to combat downturns. At the same time, a process of differentiation sets in in the level of economic development in the longer term between countries and regions. However, this process is decreasing thanks to the development and modernization of the second sector.Keywords
: international, intra-industry, inter-industry, intra-regional, inter-regional trade, endowment, diversity, economic growth, interventionJEL classification codes
: C01, C02, E17, E60, F11, F12, F13, F42, F43, F44, F47Article
Elżbieta Duliniec - Theoretical Approaches to Early and Quick Internationalization of Companies
The article discusses selected theoretical approaches to early internationalizing companies (EIC). These approaches deal with the key internal and external determinants of the early and quick internationalization of small and medium-sized companies. Most of the models discussed by the author refer to the concept of international entrepreneurship. The personal characteristics of the founder/first owner of a company are a key factor in the models discussed, the author says.
The author uses descriptive and comparative methods in the article. The models presented include six major theoretical approaches to early internationalizing companies, developed in economically advanced countries by Madsen and Servais; Rasmussan, Madsen and Evangelista; Rialp, Rialp and Knight; Mainela, Pernu and Puhakka; Andersson; and Evers. There is also a seventh approach developed by two Polish authors, Cieślik and Kaciak, who highlight the links between the early internationalization of companies and international entrepreneurship as well as economic reforms in postcommunist countries in Central and Eastern Europe.
The article also aims to predict future directions of research into EIC.Keywords
: early internationalizing companies, born globals, internationalization of companies, international entrepreneurshipJEL classification codes
Milena Ratajczak-Mrozek - The Internationalization of Polish High-Tech Companies and Their Cooperation with Foreign Firms
The article looks at how Polish high-tech companies cooperate with foreign businesses depending on the advancement of the internationalization process. The author also attempts to suggest the desired course of development at the level of both individual high-tech companies and the economy as a whole. The article pinpoints areas in which support is needed for high-tech companies, with a view to increasing the competitiveness of the country.
The article presents the results of a survey carried out in the first half of 2011 among 59 Polish high-tech companies active on foreign markets. The findings are compared with those of other available studies of cooperation, internationalization, and high-tech companies. Any differences in the perception of cooperation with foreign firms (in particular the motives for establishing such ties and the perceived barriers) depend on how long the surveyed high-tech companies have been active abroad. The analysis identifies the specific features of high-tech companies starting their operations abroad in the initial phase of internationalization. These firms usually find it more difficult to develop cooperation with foreign companies, even though they desperately need such ties the author says. Ratajczak-Mrozek goes on to suggest that it is necessary to broaden thinking about cooperation beyond the idea of a cluster-based policy and create a pro-cooperative culture, while underlining the benefits of cooperation demonstrated in the analysis. These benefits include increased market coverage, access to knowledge and know-how, and innovation.Keywords
: companies, collaboration, cooperation, internationalization, internationalization strategy, business networks, high-tech companiesJEL classification codes
: F14, F23, L14, L22, O30, O52Article
Jakub Janus - The Implications of the Bank of Japan’s Experience for the Federal Reserve’s Monetary Policy During the 2007-2011 Crisis
The article discusses and evaluates the implications of the lessons learned from the Bank of Japan’s anti-deflationary policies by the Federal Reserve for the conduct and effectiveness of the monetary policy measures adopted in the United States during the 2007-2011 crisis. The analysis aims at identifying the features of American monetary policy influenced by the Bank of Japan’s actions, both those that proved successful and those that turned out to be inefficient in fighting stagnation in Japan. The author sets out to determine whether and to what extent these lessons increased the Fed’s effectiveness in restoring financial and macroeconomic stability during the crisis. The study identifies the decisions made by the Bank of Japan which led to its sluggish response to the economic contraction that began in the early 1990s, in particular its gradual reaction to financial market developments.
The next part of the article discusses the evolution of the Fed’s monetary policy during the crisis. The analysis, based on existing research, makes it possible to assert that unconventional measures were more effective in the U.S. than in Japan. Moreover, the author concludes that the learning process between the Bank of Japan and the Fed was multidimensional and covered mostly the pace, scope and sequencing of the nonstandard tools.
The learning process was reflected by the different intensity of measures undertaken by the Fed, the author says. He lists four areas that were particularly strongly influenced by the Japanese lessons: a) structural change in monetary policy before deflationary expectations were built in, b) aggressive cuts in interest rates in the first stage of the crisis, c) a recourse to unconventional measures as soon as the zero lower bound was hit, d) an increased role of financial stability in the Fed’s decisions.
Overall, however, the Bank of Japan’s experience had virtually no effect on the Fed’s institutional setup, the author says; it only influenced the Federal Reserve’s operational framework.Keywords
: monetary policy, central banking, financial and economic crisis, Federal Reserve, Bank of JapanJEL classification codes
: E52, E58Article
Justyna Majewska, Szymon Truskolaski - The Role of Knowledge-Intensive Services in Stimulating Innovation in Poland
The article explores how technological cooperation influences innovation. The focus is on cooperation with suppliers, particularly providers of knowledge-intensive services (KIS). The authors highlight the importance of innovation policy tools that stimulate the development of such services. The article examines technological cooperation between KIS providers and customers and evaluates its impact on the probability of successful innovation in Poland’s manufacturing sector.
The authors apply a two-step econometric procedure known as a hurdle regression model, using data from the Polish version of the 2008 Community Innovation Survey (CIS).
The authors conclude that technological cooperation with suppliers has a significant statistical impact on innovation, thereby increasing the probability of successful innovation and the role of innovative sales in total turnover. This effect is greater in sectors that use KIS more intensively, which means those in which spending on KIS makes up a predominant part of business costs, Majewska and Truskolaski say.
Among the main findings of the article is that innovation policy should focus on stimulating the use of KIS by firms and public organizations (through the promotion of cooperation). Such an approach leads to increased competitiveness at the microeconomic and regional levels, the authors conclude.Keywords
: knowledge-intensive services (KIS), technological cooperation, innovation policy, Community Innovation Survey (CIS)JEL classification codes
: O31, O5Article
Mateusz Pawlak - Overcoming the Divergence Between the National Fiscal Policies in the EU
The article discusses the main achievements and failures of fiscal policy in the European Union. It also examines potential scenarios for EU fiscal policy.
The article looks at how EU member states approach the idea of transferring fiscal policy tools from the national to the EU level. In this context, the author discusses the advantages and disadvantages of a common EU fiscal policy. The assessment of this policy is influenced by temporary factors such as a financial crisis. To offer a broader picture, the author analyzes the current economic situation in the EU and the implications of the latest financial crisis.
The article also refers to past challenges, achievements and obstacles to a sustainable fiscal policy, starting from the 1970s.
The methodology adopted by the author is based on an analytical approach that makes it possible to assess the collective efforts of member states to harmonize their national fiscal policies. The adopted method also makes it possible to examine the adequacy of anti-crisis measures taken by member states.
In addition, the author uses a comparative method to present the diversity of political cultures, preferences and challenges stemming from the size of national economies. The results of the analysis show that the governments of individual member states are aware of the need for greater flexibility in negotiations on harmonizing fiscal policies at the EU level and are ready to reduce their fiscal sovereignty (as evidenced by the outcomes of anti-crisis summits). However, a further transfer of fiscal powers or fiscal unity do not mean that national governments will be completely deprived of control over fiscal policy, at least not for now, the author says.Keywords
: fiscal policy, European Monetary Union, financial crisis, economic governanceJEL classification codes
: E62, E52, F33Article
Natalia Gorynia-Pfeffer - The Concept of the National Innovation System
The article overviews recent developments in research into national innovation systems (NIS). The article shows the diverse ways in which the concept of the national innovation system is defined. Most of these definitions emphasize the importance of institutional conditions. The existing literature also provides a variety of interpretations when it comes to the components of a national innovation system. Generally speaking, there are two definitions of innovation systems, the author says, a narrow definition and a broad definition.
The narrow definition presents an innovation system in terms of ties and collaboration between the main players in the innovation process – the science sector, public and private R&D institutions and large corporations. The broad definition, on the other hand, covers all the aspects of the economic structure and institutional setup that influence learning as well as “searching and exploring” – the production system, marketing system and the financial system.
The article interprets the essence of these systems in terms of how they function. The author also shows their various aspects, typology as well as gaps and shortcomings in theoretical concepts. It highlights important differences between these systems.
There are differences in how innovation systems are defined and how their components are interpreted, the author says. This is largely because national economies differ in terms of the structure of production and institutional systems. However, certain characteristics of national innovation systems are impervious to change and remain country-specific, according to Gorynia-Pfeffer.
The author uses a number of research methods including literature review to compare innovation systems and highlight differences between them, including those related to terminology. The article emphasizes the importance of national innovation systems despite the growing popularity of ideas to establish regional, sector-specific or technological systems. Various researchers have asserted that the process of knowledge creation and innovation is a collective process that requires the cooperation of many actors. Innovation is the outcome of interaction of multiple actors and the result of synergistic and collective action rather than individual initiative, Gorynia-Pfeffer concludes.Keywords
: innovation, national innovation system, institutions, transfer of technologyJEL classification codes
: 031, 032, P16Article