Contents of issue 4/2015
Zuzanna Urbanowicz - The Inadequacy of the European Central Bank’s Monetary Policy in the Process of Macroeconomic Stabilization in the Eurozone, summary
Paweł Gajewski - The Regional Asymmetry of Monetary Policy Effects in Poland, summary
Milena Ratajczak-Mrozek - The Aspect of Time in Research on the Internationalization of Companies, summary
Małgorzata Stefania Lewandowska, Arkadiusz Michał Kowalski - The Cooperation of Polish Enterprises in Innovation and EU Financial Support, summary
Stanisław Cichocki, Michał Gradzewicz, Joanna Tyrowicz - The Responsiveness of Employment to Changes in GDP and the Flexibility of Labor Market Institutions in Poland, summary
Monika Maksim, Monika Wojdyło-Preisner - The Determinants of Long-Term Unemployment in Poland: A Local Labor Market Perspective, summary
Agnieszka Słomka-Gołębiowska, Piotr Urbanek - The Impact of Corporate Governance on the Transparency of Executive Remuneration Policy in Public Banks in Poland, summary
Book Review: Philipp Sandermann (ed.), Koniec polityki dobrobytu jaką znamy? Kontynuacja i zmiany w zachodnim modelu państwa dobrobytu - założenia i praktyka
(The End of Welfare as We Know It? Continuity and Change in Western State Settings and Practises), Barbara Budrich Publishers, Opladen, Berlin, Toronto 2014, 139 pp. - reviewed by Piotr Rubaj
Zuzanna Urbanowicz - The Inadequacy of the European Central Bank’s Monetary Policy in the Process of Macroeconomic Stabilization in the Eurozone
The article examines the single monetary policy of the European Central Bank (ECB) in terms of whether it meets the stabilization needs of eurozone member states. The analysis indicates that, during the latest economic downturn in the euro area, the bank’s single monetary policy was not equally suited to the needs of individual economies.
According to the author, the recent economic downturn exacerbated imbalances in euro-area member economies and raised concerns about the stability of the whole group.
Due to differences in the economic situation of member states and diverse adjustment mechanisms, the ECB’s single monetary policy varied in effectiveness in terms of macroeconomic stability, the author argues.
According to Urbanowicz, the eurozone crisis has demonstrated that there is a strong relationship between the stability of individual member states and the stability of the entire group. Another conclusion is that the ECB’s anti-crisis measures reduced the probability of a collapse of the eurozone. However, the ECB cannot solve all the structural economic problems in the euro zone on its own, Urbanowicz says. The key to a successful monetary union in Europe is chiefly in the hands of national governments, she adds, concluding that ultimate success depends on their economic policies and their ability to carry out difficult structural reforms.Keywords
: European Central Bank, single monetary policy, macroeconomic stabilization, eurozoneJEL classification codes
: E32, E52, E58Article
Paweł Gajewski - The Regional Asymmetry of Monetary Policy Effects in Poland
The article looks at the problem of regional differences in monetary policy in Poland. The author seeks to identify key differences in the effects of monetary policy between the country’s eastern and western macroregions.
The empirical exercise uses the standard vector autoregressive model with exogenous variables (VARX), expanded to include variables describing economic activity in the two macroregions. The results point to varying responses to a monetary shock – chiefly diverse adjustments following the shock as well as different reactions to monetary policy impulses, the author argues. While in the western macroregion a tighter monetary policy triggers a strong reaction on the part of industrial production, Gajewski says, the eastern macroregion is mostly affected via the labor market.Keywords
: regional development, regional economic dynamics, monetary policyJEL classification codes
: E52, R11Article
Milena Ratajczak-Mrozek - The Aspect of Time in Research on the Internationalization of Companies
Based on literature in the field, the article examines the impact of the time factor on the international experience and level of internationalization of companies. The author seeks to identify the role of time in research on the internationalization of companies.
The article is based on a critical analysis of research studies on the internationalization of companies, with a special focus on process models, a network approach to internationalization, and reports on accelerated internationalization. In particular, the author deals with research reports on the time and speed of internationalization.
The article presents a number of proposals concerning the role of time in research on the internationalization of companies. These are linked with increased experience in business operations on foreign markets, the speed of internationalization, and the relationship between the time and level of internationalization. The author finds that, in order to better understand the process of internationalization, it is necessary to include the time factor in the theory of internationalization. Ratajczak-Mrozek argues that the relationship between time and an increase in a company’s experience abroad is complex and non-linear. The same is true of the relationship between the time and level of internationalization, the author says. She adds that the level of internationalization should be determined on the basis of comprehensive measurements taking into account resources involved at various levels of a company’s operations. Measurements of the speed of internationalization should take into account the speed of the whole process, and not be limited to the speed of a company’s entry into foreign markets the author argues. This is particularly important for the study of “born global” companies, Ratajczak-Mrozek notes.Keywords
: internationalization, time, speed, born globalJEL classification codes
: D21, F53, F59, L25Article
Małgorzata Stefania Lewandowska, Arkadiusz Michał Kowalski - The Cooperation of Polish Enterprises in Innovation and EU Financial Support
The paper aims to assess how Polish enterprises work together on innovative projects as part of business clusters and otherwise, and it also evaluates the impact that this cooperation has on the overall performance of Polish enterprises in terms of innovation. Additionally, the authors seek to identify the impact of European Union funds intended for innovative projects on the cooperation of Polish enterprises in innovation.
The data comes from the 2008–2010 Community Innovation Survey conducted by Poland’s Central Statistical Office (GUS) in 2011. The sample covers 7,783 medium-sized and large manufacturing firms, with n=80 big cluster-based firms singled out for the final study.
The results of Structural Equation Modeling (SEM), with an additional analysis of the distribution of the estimation errors with multiple sampling with replacement from the sample (non-parametric bootstrap method), show a statistically significant relationship between “non-cluster innovation cooperation with international partners” (suppliers, customers, competitors, capital group members and institutional partners) and innovation performance measured by the log of fraction of sales of innovative products in total sales, the authors say. They add that a statistically significant relationship also exists in the case of “cluster innovation cooperation with domestic partners.” Moreover, the authors argue that the relationship between cluster innovation cooperation, with both domestic and international partners, and non-cluster innovation cooperation demonstrates a “cooperation learning effect.” The impact of European Union funds is visible only in the case of cluster cooperation, testifying to “the existence of cluster cooperation additionality,” the authors conclude.Keywords
: innovation, cooperation, clusters, additionality, Community Innovation SurveyJEL classification codes
: O31, O32, O38Article
Stanisław Cichocki, Michał Gradzewicz, Joanna Tyrowicz - The Responsiveness of Employment to Changes in GDP and the Flexibility of Labor Market Institutions in Poland
The article investigates the impact that the growing use of flexible work arrangements in Poland has on employment and on how it is responding to changes in GDP. The analysis covers the period from the first quarter of 1995 to the final quarter of 2012. It focuses on Impulse Response Functions (IRF) based on Vector Autoregressive models (VAR) for GDP and various employment measures. The results reveal some changes in the responsiveness of employment when aggregate demand changes, the authors say. However, the data does not confirm a link between these changes and an increased use of flexible work arrangements. Meanwhile, changes in responsiveness and the divergence of long-term trends between the main sectors are cyclical in nature, the authors argue. They conclude that the growing role of flexible work arrangements has an unclear impact on the relationship between employment and production in individual business sectors.Keywords
: flexible work arrangements, employment, GDP, responsiveness, Impulse Response Function, cyclicalityJEL classification codes
: J23, C22Article
Monika Maksim, Monika Wojdyło-Preisner - The Determinants of Long-Term Unemployment in Poland: A Local Labor Market Perspective
The paper attempts to identify and classify the determinants of long-term unemployment “in different types of local economies” in Poland. The analysis uses a binary logit model and data from six local labor offices. The sample covers 44,000 individuals registered as unemployed as of Dec. 31, 2010. Each county represented a different type of local economy.
The results of the study show that only seven of a wide array of analyzed variables influenced the probability of long-term unemployment in the same way in all local economies.
These are called universal factors. The authors find that, regardless of the considered type of local economy, women, people over 50, individuals without language skills, parents of small children, and individuals living in rural areas are at greater risk of long-term unemployment than other citizens. Young age and long work experience help avoid long-term unemployment, the authors note. The impact of other variables varied. County-specific factors included the level of educational attainment and disability. This means that groups at risk of long-term unemployment may vary significantly across local labor markets, the authors say. They suggest that new “unemployed profiling procedures” be introduced to identify job seekers especially at risk of long-term unemployment at the local level.Keywords
: long-term unemployment, local economy, determinants, unemployed profilingJEL classification codes
Agnieszka Słomka-Gołębiowska, Piotr Urbanek - The Impact of Corporate Governance on the Transparency of Executive Remuneration Policy in Public Banks in Poland
The article seeks to assess the transparency of remuneration policy vis-à-vis senior executives in Polish banks from 2005 to 2013 based on a sample of 16 banks listed on the Warsaw Stock Exchange (WSE). The study attempts to identify factors that determine the transparency of executive remuneration policy. This is measured by an index based on the level and structure of remuneration, along with the policy on variable components of executive pay, the functioning of board compensation committees, and long-term incentive programs based on shareholding.
The authors find that WSE-listed banks are steadily increasing the disclosure of their remuneration policies. The biggest changes in this area occurred in 2012 as a result of new regulations, the authors note. The study shows that there is a positive relationship between the disclosure of executive remuneration policies and corporate governance mechanisms such as compensation committees as well as the role of pension funds in the banks’ ownership structures. The degree of ownership concentration may indirectly affect the transparency of executive remuneration policy through corporate governance processes and mechanisms that banks operating in Poland borrow from markets where their parent companies are listed, the authors say. They add that the most transparent executive remuneration policies exist in banks controlled by investors from English-speaking countries. An above-average level of remuneration policy disclosure has been observed in large banks and those whose CEOs receive higher pay than their counterparts in other banks.Keywords
: executive remuneration policy, banks, corporate governance, regulationsJEL classification codes
: G21, G38, G39Article