List of issues

Contents of issue 10/2013

Dariusz K. Rosati - Should Poland Join the Eurozone?, abstract, article

Joanna Osińska - Attitudes Towards the Euro and Their Determinants, abstract, article

Marian Gorynia, Oliwia Samelak - An Overview of Research into the Functioning of Polish Subsidiaries of Transnational Corporations, abstract, article

Sławomir Pastuszka - Foreign Direct Investment in Poland’s Świętokrzyskie Region from 2005 to 2011, abstract, article


Book Review: Jan J. Michałek, Michał Brzozowski, Andrzej Cieślik (eds.), Wpływ rozwoju społecznego na handel i inwestycje zagraniczne. Przypadek krajów Europy Środkowej i Wschodniej (The Impact of Social Development on Trade and Foreign Investment: The Case of Central and Eastern European Countries), Polskie Wydawnictwo Ekonomiczne, Warsaw 2012, 160 pp. - reviewed by Elżbieta Kawecka-Wyrzykowska

Book Review: Magdalena Zioło, Modelowanie źródeł finansowania inwestycji komunalnych a efektywność wydatków publicznych (Modeling the Sources of Financing for Municipal Projects and the Efficiency of Public Spending), Wydawnictwo CeDeWu Sp. z o.o., Warsaw 2012, 397 pp. - reviewed by Beata Guziejewska

Dariusz K. Rosati - Should Poland Join the Eurozone?

The article addresses the issue of whether or not Poland should join the euro area. Specifically, the author tries to answer three key questions: first, whether Poland has a legal obligation to adopt the euro, second, whether euro adoption is beneficial to the Polish economy, and third, if the answer is “yes,” how and when Poland should join.
On the first question, the author demonstrates that Poland has a legal obligation to adopt the euro. This is because European treaties impose this obligation on all new EU member states and this obligation was not challenged by Poland when it negotiated and ratified the EU Accession Treaty.
Addressing the second question, the author argues that Poland fulfills the standard optimum currency-area conditions to the extent similar to other euro-area member countries. The author attempts to estimate the main economic costs and benefits of euro adoption. The analysis shows that euro adoption is, on balance, beneficial for Poland, and that annual net benefits, including both static and dynamic effects, could be in the range of 1.5-2.0% of GDP in the longer run.
On the third question, the author argues that Poland should not adopt the euro unless several important conditions are met first. Among these are the formal nominal convergence criteria, efficient banking regulations and supervision to avoid credit booms, improved labor market flexibility, and strengthened structural fiscal position. Moreover, euro adoption not only needs much stronger support from Polish citizens, but also requires a change of the Polish constitution, which is a politically challenging task.

Keywords: euro area, monetary integration, European Union
JEL classification codes: E52, F33, F36
Article: PDF

Joanna Osińska - Attitudes Towards the Euro and Their Determinants

The article looks at factors determining the level of public support for the euro in Poland and other countries across the European Union. It aims to systematize the results of research in this area.
Existing research on this topic is based on either Eurobarometer data or country-specific surveys, the author says, adding that the determinants of public support for the euro can be classified into three main categories: macroeconomic variables, microeconomic factors (individual characteristics, including socio-demographic and socioeconomic variables), and factors related to “the psychology of money”.
Official documents and reports on various countries’ integration with the euro area predominantly consider two types of aspects, the author says: macroeconomic – in particular those focused on the balance of costs and benefits of euro adoption, and those related to practical preparations for euro adoption.
On the basis of the literature review, the author argues for the need to complement these studies with a view from the perspective of the psychology of money, which considers psychological and social factors, in addition to purely economic aspects. Euro adoption is not a purely economic event, but a multidisciplinary – economic, political, social and psychological – process, the author says.

Keywords: euro, attitudes to the euro, Economic and Monetary Union (EMU), European integration, public opinion polls
JEL classification codes: D84, E42, F33
Article: PDF

Marian Gorynia, Oliwia Samelak - An Overview of Research into the Functioning of Polish Subsidiaries of Transnational Corporations

The paper reviews basic research approaches to the operations of subsidiaries of multinational corporations worldwide, with a special focus on those based in Poland. An indirect aim of the study is to assess the practical usefulness of research results in this area. The basic method used by the authors is an analysis of research reports in Polish and English.
The paper examines the nature of transnational corporations and discusses three key research areas involving foreign subsidiaries and affiliates: the relationship between the parent organization and subsidiaries, the role of subsidiaries in the corporate system, and the development of subsidiaries.
The authors argue that the available body of research into foreign subsidiaries and affiliates is of little practical use. According to Gorynia and Samelak, this problem could be solved by expanding the scope of future research to better meet the needs of executives managing subsidiaries. The article highlights research areas that the authors believe should be addressed in the future.

Keywords: transnational corporations, subsidiaries, foreign affiliates based in Poland, foreign direct investment
JEL classification codes: F21, F23
Article: PDF

Sławomir Pastuszka - Foreign Direct Investment in Poland’s Świętokrzyskie Region from 2005 to 2011

The article examines the activities of foreign investors in Poland’s Świętokrzyskie region. To this end, the author uses literature analysis and descriptive statistical methods.
Based on a review of available literature, the author outlines basic concepts related to foreign direct investment and the main theoretical models of FDI. He also identifies the key factors behind foreign investment and discusses the positive and negative effects of FDI.
The author analyzes the organizational structure and conditions underlying the operations of companies with foreign capital in the Świętokrzyskie region. The study uses data from Poland’s Central Statistical Office (GUS) for the 2005-2009 period. To ensure the comparability of data, the analyzed values are calculated in per capita terms.
The analysis found that the inflow of foreign investment to the region mainly consisted of taking over and modernizing existing plants. Foreign investors chiefly invest in the largest cities in the region, such as Kielce, Starachowice and Ostrowiec Świętokrzyski, and in their vicinity. A special economic zone in Starachowice plays a significant role in attracting foreign investment to the Świętokrzyskie region.
Among foreign investors active in the region are many companies with global business. These include building material manufacturers, who are a significant component of the regional economy and have a positive impact on the incomes and living conditions of local residents. However, these businesses have poor ties with local companies and produce limited spillover effects, according to the author.
Maintaining the current direction of foreign investment means that the Świętokrzyskie region will continue to specialize in raw material production, Pastuszka says. To avoid this scenario, the regional authorities should create conditions to attract investors to more technologically advanced sectors, the author concludes.

Keywords: foreign direct investment, foreign investors, foreign capital, Świętokrzyskie region
JEL classification codes: F21, F23, F44
Article: PDF

Copyright © Szkoła Główna Handlowa w Warszawie 1931-2018 ISSN 2300-5238