Contents of issue 5-6/2012
Andrzej T. Szablewski - Market Liberalization and the Security of Gas Supply, summary
Małgorzata Stefania Lewandowska, Tomasz Gołębiowski - Complementarity Between Process and Organizational Innovation of Polish Exporters, summary
Michał Brzozowski - Impact of Output Volatility and the Amount of Credit on Value Added in Polish Manufacturing Industries, summary
Alina D. Szypulewska-Porczyńska - The Mutual Recognition Principle and Its Role in the Integration of Service Markets Across the European Union, summary
Grzegorz Kula - Potential Government Revenue from Income Taxes and Social Security Reforms in Agriculture, summary
Anna E. Grabska - Selected Determinants of the Economic Order in the Early Years of Poland’s Economic Transition, summary
Book Review: Jan L. Bednarczyk, Wiesława Przybylska-Kapuścińska (eds.), Od kryzysu do ożywienia. Dylematy współczesnej polityki finansowej
(From Crisis to Recovery: The Dilemmas of Today’s Financial Policy), CeDeWu.pl Wydawnictwa Fachowe, Warsaw 2011, 268 pp. - reviewed by Marek Lubiński
Book Review: Dorota Niedziółka, Regionalizacja rynków energii
(Regionalization of Energy Markets), „Monografie i Opracowania”, nr 587, Oficyna Wydawnicza SGH, Warsaw 2011, 319 pp. - reviewed by Teresa Pakulska
Book Review: Aleksandra Nowakowska, Zbigniew Przygodzki, Mariusz E. Sokołowicz, Region w gospodarce opartej na wiedzy. Kapitał ludzki – Innowacje – Korporacje międzynarodowe
(The Regional Aspect of the Knowledge-Based Economy: Human Capital – Innovation – Multinational Corporations), Difin, Warsaw 2011, 224 pp. - reviewed by Krystyna Poznańska
Consumption and Development - Tadeusz Smuga
Andrzej T. Szablewski - Market Liberalization and the Security of Gas Supply
The article discusses the relationship between the liberalization of the gas market and the security of gas supply. The issue is considered in the context of two interlinked factors, the geographical factor and the geopolitical factor, which determine the structure and functioning of the gas sector in EU member states. The geographical factor, i.e. the fact that gas resources are predominantly located in non-European countries, implies the dependence of European countries on gas supplies. The geopolitical factor, on the other hand, is used a means of political leverage by gas exporting countries, including Russia.
Taking these two factors into account, the author sets out to determine whether Europe’s dependence on gas imports puts gas supplies at risk and whether or not it could become an obstacle to the full liberalization of the gas market. This question is related to the hypothesis that the relatively slow liberalization of the EU gas market, compared with the electricity market, for example, is due to fears that unbridled liberalization could have an adverse impact on the security of supplies.
The analysis is especially topical in the context of reports about a revolution on the U.S. gas market triggered by a technological breakthrough in the extraction of shale gas. If these reports are confirmed, the author says, shale gas may redefine the relationship between the security of gas supplies and the degree of liberalization of gas markets in EU countries.Keywords
: liberalization, security of gas supply, competitive gas market, geopolitical factor, shale gasJEL classification codes
: L95, L97Article
Małgorzata Stefania Lewandowska, Tomasz Gołębiowski - Complementarity Between Process and Organizational Innovation of Polish Exporters
Many studies recognize importance of innovations for the international competitiveness of firms. This applies to both innovations introduced internally and those introduced in cooperation. The paper is based on a survey of 209 Polish manufacturing firms. It focuses on an analysis of the influence of process and organizational innovation on the firms’ export intensity and on new product sales intensity. The study reveals that process innovation (undertaken both internally and in cooperation with business partners) is positively related to the firms’ export intensity, while rejective the hypothesis that organizational innovation has an impact on export intensity. Moreover, the analysis provides evidence that both process and organizational innovations (introduced either internally or in cooperation) have no statistically significant influence on new product sales intensity of Polish exporters. These findings reflect the traditional competitive strategies based on the cost advantage rather than the differentiation-based advantage. The analysis of the relationships between process and organizational innovation reveals that these two types of innovation are positively related only in the high-export-intensity/high-new-product-sales-intensity cluster of firms. This correlation appears both in the case of internal and collaborative innovation. The authors argue that Polish exporters do not take full advantage of the opportunity to simultaneously implement complementary types of innovation and do not gain potential synergies from innovation.Keywords
: internal innovation, innovation cooperation, process and organizational innovation, innovativeness of Polish exportersJEL classification codes
: L14, O31, C38Article
Michał Brzozowski - Impact of Output Volatility and the Amount of Credit on Value Added in Polish Manufacturing Industries
The article deals with the impact of output volatility on the growth of labor productivity in Polish manufacturing industries between 1994 and 2008. The author analyzes the dual role of financial development, measured by the amount of credit to the private sector, both as a direct growth enhancing factor and as a cushion against the adverse effects of output volatility.
The existence of inter-sectoral linkages called for the decomposition of output volatility into sector-specific and aggregate volatility, the latter being transmitted from other manufacturing sectors. These output volatility indicators as well as the financial development indicator were added to the set of independent variables in a regression model seeking to explain the rate of growth of value added per employee. The estimated regression model was derived from the neoclassical growth model, expanded to include the determinants of technological progress, such as R&D effort, foreign direct investment inflow, and the tax burden. Panel data and the Generalized Method of Moments were used to perform the estimation.
The analysis of the estimation results suggests that the growth of labor productivity in Polish manufacturing industries is negatively correlated with sector-specific output volatility. Volatility transmitted from other sectors leaves the rate of labor productivity growth unaffected. The degree of financial development, measured by the amount of credit to the private sector, does not seem to offset the negative impact of output volatility on growth, the author says; in fact, it appears to contribute to a deceleration in the rate of growth.Keywords
: output volatility, financial development, economic growth, manufacturing industriesJEL classification codes
: E32, 040, L60Article
Alina D. Szypulewska-Porczyńska - The Mutual Recognition Principle and Its Role in the Integration of Service Markets Across the European Union
The article focuses on the so-called principle of mutual recognition and its impact on the integration of service markets in the European Union.
Mutual recognition is the principle of EU law under which member states must allow services that are legally provided in another member state also to be sold in their own territory. For the exporter, this means that a service legally provided in one EU country should not have to meet a second set of requirements in the country to which they are exporting.
In her theoretical and empirical analysis, the author sets out to determine just how much room is still available for a further opening of service markets in EU member states. Szypulewska-Porczyńska concludes that this chiefly depends on the solutions adopted in the construction of the internal market.
The article lists the main tools used for building the internal service market and classifies the existing solutions in the so-called Services Directive transposed by EU member states.
In the first part of the article, the author discusses the principle of mutual recognition in comparison to other tools of the internal market and the relationships between them. Part two looks at the service market in terms of how these tools are used. The third part of the article classifies the solutions adopted in the Services Directive in terms of the tools used in building the internal market. Against this background, part four traces the integration of service markets in EU countries in the period from 2007, when the Services Directive was adopted, to 2010, the first year after the statutory deadline for transposing the directive.
According to the author, there is still room for a further opening of service markets in EU member states. The internal service market is only partly based on the principle of mutual recognition, which offers substantial opportunities for a further integration of service markets.
Progress made in the integration of service markets in EU countries after the adoption of the Services Directive shows that this regulatory change has not reversed a negative trend on the internal services market when it comes to the role of intra-EU trade in the overall trade of services, the author says.Keywords
: EU internal market, integration, service markets, principle of mutual recognition, Services DirectiveJEL classification codes
Grzegorz Kula - Potential Government Revenue from Income Taxes and Social Security Reforms in Agriculture
The article aims to estimate potential government revenue that could be generated from imposing an income tax on incomes derived from agriculture. The author also looks at revenue that could be generated from covering farmers with the general rules of the public retirement system. The author presents different scenarios for such a reform and discusses problems related to its implementation.
To estimate potential revenues from the reform, Kula assesses agricultural incomes using data on area payments and statistics on the Farmers’ Social Insurance System (KRUS). This makes it possible to calculate the amount of taxes and social insurance contributions. The results suggest that many farmers – especially those whose farms do not exceed 10 hectares in area – would still be exempt from income taxes even if the reform were introduced. Revenue from taxes and contributions would rise, Kula concludes, but it is unclear if the public sector would benefit from the reform because the changes would also lead to an increase in expenditure.Keywords
: agriculture, revenue, area payments, income tax, retirementJEL classification codes
: H24, H55, H71Article
Anna E. Grabska - Selected Determinants of the Economic Order in the Early Years of Poland’s Economic Transition
The aim of the article is to analyze the values and preferences of Polish society in the early years of the country’s economic transition in terms of two models of economic order, F.A. Hayek’s spontaneous order theory versus W. Eucken’s theory of organized order.
Many of the current problems of the Polish economy are the result of the government’s failure to make certain decisions at the start of the country’s transition to a free market system more than two decades ago, the author says. Another contributing factor is policies that resulted in compounding various economic as well as social and environmental problems. The responsibility for these problems can be attributed to a crisis of the institutional environment, in particular to an insufficient involvement of the government in creating a competitive framework for businesses. Moreover, opportunities for developing the economic framework from the bottom up, in line with the logic of the spontaneous order theory, were limited by rapid socioeconomic changes, according to Grabska.
In addition to objective difficulties with developing either a spontaneous or ordoliberal model, there was also the problem of adjusting the socioeconomic order to the dominant values and expectations of Polish society, the author says. An attempt to propose a framework contrary to the social mind set and value system is bound to fail because the introduced rules will create chaos, Grabska adds.
The analysis of the values and preferences of the Polish people in the early 1990s reveals that society was relatively more predisposed to the kind of economic order prescribed by W. Eucken, according to the author. Cultural factors, such as distrust of the authorities and high socioeconomic aspirations, combined with poor teamwork skills, low work ethic, a desire to strike it rich fast, and little market experience, explain why Poland was ill-suited to a bottom-up model of economic order. Consequently, the government should have been more active and done more to minimize the negative consequences of political and economic changes in the country, the author concludes.Keywords
: transition, market economy, economic order, social valuesJEL classification codes
: B52, D03, D71Article