Contents of issue 7-8/2006
Stefan Krajewski, Elżbieta Mączyńska - In Memoriam: Prof. Jan Mujżel (1923-2006)* * *
Jacek Prokop, Ewa Baranowska-Prokop - Information Asymmetry and Tie-in Transactions, summary
Krzysztof Berbeka - The Role of European Union Funds in the Implementation of Environmental Obligations Specified in the Accession Treaty, summary
Paweł Kościukiewicz - Banking Sector Mergers & Acquisitions and the Development of Small and Medium-Sized Enterprises, summary
Wioletta Nawrot - The Influence of the Demand for Warsaw Stock Exchange-Listed Shares on the Market’s Liquidity, summary
, articleEUROPEAN INTEGRATION
Jacek Szlachta - Long-Term Programs for the Socioeconomic Development of Wales, summary
, articleWARSAW SCHOOL OF ECONOMICS 1906-2006
Dariusz Rosati - Paweł Sulmicki: Toward Rationalism, article
Jan Sulmicki, Małgorzata Sulmicka - Paweł Sulmicki: Steadfast Adherence to Principles, summary
, articleCONFRENCES - POLEMICS - REVIEWS
Cooperative Banking in the Polish Financial Services Market (Against the Background of Selected Other European Union Countries) - Ryszard Kata
Sustainable Economic Growth: The Role of Financial Policy - Andrzej Sopoćko
Cross-Border Regional Cooperation in Central and Eastern European Countries: A Track Record - Tadeusz Smuga
Jacek Prokop, Ewa Baranowska-Prokop - Information Asymmetry and Tie-in Transactions
The article sets out to determine if tie-in transactions can be a more favorable form of buying capital goods for enterprises than ordinary market transactions in the event of an information asymmetry. The authors present a model situation in which an enterprise from a less developed country decides to buy technology from a company based in a highly developed country. The quality of the technology is unknown to the buyer, who has two forms of transactions to choose from: a market transaction or a tie-in. The authors prove that in the event of considerable uncertainty about the quality of the technology involved, tie-ins may be the preferred form of trade. Such transactions play the role of specific insurance in case the technology purchased proves to be of substandard quality. Tie-in transactions are a reliable signal of the quality of capital goods if there is an information asymmetry between the seller and the buyer. They represent a rational response to conditions limiting market exchange.Keywords
: information asymmetry, capital goods, tie-in transactionsArticle
Krzysztof Berbeka - The Role of European Union Funds in the Implementation of Environmental Obligations Specified in the Accession Treaty
The author attempts to define the role of European Union funds in the implementation of the EU’s acquis communautaire. He identifies the weaknesses of the existing strategic programs dealing with these issues. The research method involved an attempt to balance the predicted needs and available capital with the use of a special computer model that enables a multi-variant analysis of available funds and their variable distribution over time. The research project presented by the author consisted of the following stages: identifying investment needs linked with the implementation of the environmental acquis; preparing a forecast for available domestic and foreign sources, along with a schedule for granting assistance; comparing the needs and available resources; defining the role of EU assistance in financing specific projects; and preparing relevant recommendations.
The analysis points to a few threats to the feasibility of individual objectives mentioned in the Accession Treaty, chiefly those specified for 2010. In all variants of the model, resources available under operational programs for regional development and earmarked for environmental protection are a key supplement to the Cohesion Fund. The main conclusion of the research is the need to coordinate efforts at the central and regional levels (with independent provincial programs), along with the need to maintain the planned targets of investment in environmental protection. Poor coordination and failure to move EU funds to other priorities pose a real threat to meeting the Accession Treaty obligations.Keywords
: assistance, funds, European Union, ecologyArticle
Paweł Kościukiewicz - Banking Sector Mergers & Acquisitions and the Development of Small and Medium-Sized Enterprises
The paper presents the influence of mergers and acquisitions in the banking sector on the development of small and medium-sized enterprises (SMEs).
The author discusses existing studies of banking sector consolidation and its influence on the development of SMEs. The article considers the influence of the relocation of bank headquarters after a merger or acquisition on lending to SMEs. It also examines the effects of consolidation on the bank’s credit portfolio and the cost of credit for SMEs. The work sums up analyses of how changes in banks’ organizational structures affect lending to SMEs. In his research, the author uses studies of consolidation processes in the American banking sector.
Various American economists have reached conflicting conclusions with regard to the relationship between banking sector consolidation and lending to SMEs. These contradictions result from different research methods adopted by individual economists.Keywords
: mergers & acquisitions, small and medium-sized enterprises (SMEs), banksArticle
Wioletta Nawrot - The Influence of the Demand for Warsaw Stock Exchange-Listed Shares on the Market’s Liquidity
The author analyzes the demand for shares and attempts to determine its influence on the liquidity of the Warsaw Stock Exchange. The analysis was conducted by calculating and bringing together values of key importance to the liquidity of the market and investment activity on the Polish stock market.
The analysis showed that the liquidity of the Polish stock market decreased in the analyzed period (1995-2005). First, there was a drop in the value of stock trades in relation to the market’s capitalization. Subsequently, there was a problem involving the substantial concentration of trade on the exchange. On the basis of this situation, attempts were made to check the demand side of the stock market, especially in the institutional investor segment.
Analyses conducted by the author indicate that, as a result of a dynamic increase in pension and investment fund assets in 2000-2005, these institutions substantially increased the value of shares in their possession, withdrawing some of the stock from “active” turnover. Over the next few years, more than 40% of the assets invested by these institutions in stock were tied up in the portfolios of open-ended pension funds. However, in the years that followed, assets held by institutional investors were subject to decreased turnover. This seems to indicate that institutional investors could pose a threat to the market’s liquidity by channeling substantial assets to the domestic stock market in a situation in which the supply of shares was insufficient. However, a supplementary examination of the average turnover in WSE-listed shares, particularly those making up the market’s free float, revealed that the activity of institutional investors, though decreasing with each passing year, was several times higher than average investment activity on the stock market. In other words, transactions made by institutional investors were the key driving force behind the market’s liquidity in the analyzed period. Unfortunately, the positive influence of institutional investors decreased in 2003-2005, a period that saw a major increase in pension and investment fund assets. The insufficient—and continually decreasing—liquidity of the stock market, coupled with the dynamic development of the institutional investor segment, particularly pension funds, justifies worries over the liquidity and stable development of the Polish stock market.Keywords
: shares, demand, stock exchange, liquidity, marketArticle
Jacek Szlachta - Long-Term Programs for the Socioeconomic Development of Wales
The article examines the model and programs for the socioeconomic development of Wales. As a result of a devolution process, Wales gained the possibility of independently programming its developing policy in the 21st century. Wales is also a major beneficiary of European structural funds, as a result of which its national strategies must be in line with the priorities of European regional policy. The main value of the article is that it assesses, in a uniform analytical arrangement, the most important strategic long-term and medium-term documents of Wales, including a plan for the regional development of the country, a long-term concept for environmental policy, a medium-term strategy of socioeconomic development and a section of the National Strategic Reference Framework for 2007-2013 applying to Wales. All these documents represent an internally consistent arrangement, which also applies to studies prepared for the needs of the European Union.
The analysis shows that Wales, taking advantage of the process of devolution, adopted a modern model of socioeconomic development oriented toward building a knowledge-based society. Logical and internally consistent development activities are especially important to an effective economic policy. An analysis of the Welsh socioeconomic policy and its EU context reveals that many of this country’s experiences may be applied in other EU countries and regions, in keeping with the principle of promoting best practices.
Because Poland faces development challenges similar to those embraced by Wales over the past few years, the final part of the text presents the most important conclusions and recommendations for Poland.Keywords
: model, programming, development, WalesArticle
Jan Sulmicki, Małgorzata Sulmicka - Paweł Sulmicki: Steadfast Adherence to Principles
Prof. Paweł Sulmicki was a living legend among Polish economists. His vicissitudes, individuality and intellect earned him well-deserved respect. He was uncompromising in his adherence to ethical and moral principles, and rigorously honest in both private life and work. At the same time, he was an open-minded and friendly person with a great sense of responsibility for others.
Educated abroad, he gained extensive practical experience during his military service and while working for many state institutions, including the Central Planning Office (CUP) and the National Bank of Poland (NBP). He combined his impressive economic knowledge with straightforwardness. A patriot brought up to respect work, he had a deeply ingrained sense of obligation with regard to the state and society.
Prof. Sulmicki became a full-time academic teacher when he was around 50. Earlier he changed his profession and place of work many times. Most of these changes were necessitated by his vicissitudes linked with the tempestuous history of the mid-20th century.
Sulmicki built his theory in the belief that “there is nothing more practical than a good theory.” He kept on verifying and confronting his conclusions with the economic reality around him. As the years went by, he developed an increasingly critical attitude toward the economic policy followed in Poland. In a sense, it is a paradox of history that the most interesting and innovative of Sulmicki’s achievements, those involving the theory of management under central planning, lost their practical importance after the collapse of the central planning system. Does this mean that Sulmicki’s scientific achievements in this area are worthless in the light of today’s knowledge and economic practice? Not at all. Of course, it is impossible to directly apply the management rules that he formulated, because the system to which they referred is long gone. But the professor’s management theory still has substantial cognitive and historical value. First of all, it is based on solid economic foundations that take into account the achievements of positive and normative economics, along with the theory of consumer, producer and investor behavior and the theory of finance. Sulmicki’s texts are still useful reading material on the rules of efficient operations. Looking at his work from today’s perspective, Sulmicki would probably recognize his endeavor as productive. After all, he was critical in the face of the economic practices of the communist system. Welcoming the construction of a market economy in Poland, he would probably say that his work toward improving the efficiency of central planning was simply his duty.Article