Contents of issue 6/2016
Andrzej Wojtyna - Theoretical Controversies about the Middle-Income Trap Concept, summary
Tomasz Tokarski, Anna Zachorowska-Mazurkiewicz - Trouble with Clark’s Theory of Distribution, summary
Agata Wieczorek - Determinants of Supervisory Board Member Remuneration: The Case of Warsaw Stock Exchange-Listed Banks, summary
Danuta Kopycińska, Radosław Wiśniewski - Manager Salaries and Economic Objectives in Companies Listed on the Warsaw Stock Exchange, summary
Grażyna Bukowska, Joanna Siwińska - Does Competition Affect Local Public Investment in Polish Cities?, summary
Tomasz Legiędź - The Economic and Political Transformation of Taiwan from a Limited to an Open Access Order, summary
, articleWORLD ECONOMICS
Rachel E. Kranton - Identity Economics 2016: Where Do Social Distinctions and Norms Come From?, article
Jeffrey D. Sachs - Toward an International Migration Regime, article
Timothy J. Hatton - Refugees, Asylum Seekers, and Policy in OECD Countries, articleREVIEWS
Marian Zalesko - Humanistyczna perspektywa ekonomii
Book Review: Magdalena Szyszko, Oczekiwania inflacyjne w polityce pieniężnej. Zarządzanie z wykorzystaniem prognoz inflacji
(Inflationary Expectations in Monetary Policy: Management Using Inflation Forecasts), Difin, Warsaw 2016, 179 pp. - reviewed by Marek Lubiński
Book Review: Aleksandra Parteka, Dywersyfikacja handlu zagranicznego a rozwój gospodarczy
(Diversification of Foreign Trade and Economic Development), Wydawnictwo Naukowe PWN, Warsaw 2015, 214 pp. - reviewed by Andrzej Cieślik
Index of Publications in 2016List of Reviewers 2016
Andrzej Wojtyna - Theoretical Controversies about the Middle-Income Trap Concept
This review article attempts to assess to what extent the middle income trap (MIT) concept sheds a genuinely new light on complex determinants of economic growth and to what extent it merely offers a new, more attractive form of presenting fairly well-known ways of analyzing processes of growth and development. The discussion of different interpretations of the concept’s essence as well as its links with important strands of research into economic growth and development leads to three main conclusions: a) despite its intriguing name, the MIT concept can hardly be regarded as a separate subject of analysis that significantly extends beyond a traditional framework of research on growth. In particular, the present world crisis has significantly increased the concept’s universal character, reducing its applicability to specific dilemmas faced by middle-income countries; b) by strongly emphasizing a necessary shift from a growth model based on low labor costs to a model based on a process of generating domestic innovations, the MIT concept attaches less importance to other groups of factors (quality of institutions, optimal role of the state and of the economy’s openness, degree of the politicization of the economy, macroeconomic and macrofinancial stability) the interaction of which determines the rate at which enterprises build their competitive advantages; c) perception of risk that a country will enter the MIT situation is strongly linked to changes in the income position of various social groups. A growing polarization of incomes means that some social groups are subject to protracted stagnation in their real wages, which may lead them to confuse their own individual income traps with a trap concerning the whole economy.Keywords
: middle-income trap, economic growth and development, innovation and technological changeJEL classification codes
: F43, F63, O11, O33Article
Tomasz Tokarski, Anna Zachorowska-Mazurkiewicz - Trouble with Clark’s Theory of Distribution
The main objective of the article is to demonstrate the falseness of the so-called marginal theory of distribution as it is used today.
This theory was originally coined by American economist John Bates Clark in the late 19th century. However, the modern version of the theory, used in macroeconomic models including dynamic stochastic general equilibrium (DSGE) modeling, departs from the original concept.
In the first section of this article, the history of the theory of distribution is presented, from the time Clark formulated the theory to the present day. In the following section, a formal proof of the falseness of the contemporary version of the marginal theory of distribution is shown. The proof is illustrated by examples using data from Italy and Poland.Keywords
: marginal theory of distribution, John Bates Clark, economic modelsJEL classification codes
: B13, B23, B41Article
Agata Wieczorek - Determinants of Supervisory Board Member Remuneration: The Case of Warsaw Stock Exchange-Listed Banks
This paper aims to identify factors determining the remuneration of supervisory board members in banks listed on the Warsaw Stock Exchange. The study was conducted on a panel sample of 1,034 observations. For the purposes of the study, an econometric model was used containing three groups of explanatory variables representing corporate governance standards, individual characteristics of supervisors and economic performance and conditions. The study found that among corporate governance variables with a significant impact on the remuneration of supervisory board members was the number of committees on which individual members sit and the block of shares held by a strategic shareholder as well as by the supervisory board members themselves. Individual characteristics of management proved to be an important factor in determining the level of remuneration of supervisory board members. The position held as well as the function performed were positively correlated with the level of remuneration. Seniority had a positive impact on remuneration as well. The analysis showed that economic performance and conditions were among the factors taken into account when determining the level of remuneration.
The size of a bank, measured by asset value, was positively correlated with the level of remuneration. The rate of return on assets, both in the current period and in an earlier period, as well as the debt ratio turned out to be statistically significant.Keywords
: remuneration, supervisory board, corporate governance, banksJEL classification codes
: G21, G34, M52, O16Article
Danuta Kopycińska, Radosław Wiśniewski - Manager Salaries and Economic Objectives in Companies Listed on the Warsaw Stock Exchange
The aim of the paper is to empirically verify the relationships between the salaries of board members and the economic objectives of listed companies, especially their strategic goals.
The sample comprised companies with at least a seven-year history of being listed on the WSE where at least one board member was holding his or her position for the entire period of analysis. In the literature on the subject no results meeting such criteria have been found.
To verify these relationships, the Pearson correlation coefficient was used, and the study covered the 2005–2011 period, which allowed for a strategic perspective of management, i.e. made it possible to identify the actual contribution of a given manager to the company’s economic performance. The year 2005 was selected as the beginning of the study period since it was the first year when companies were required by law to present information on the salaries of individual board members in their annual financial reports. The selection of 2011 as the final year of the study period was determined by intense rotation among board members in the following years, which significantly reduced the size of the sample.
Among the companies listed on the WSE, approximately 14 percent of the businesses and 6 percent of the managers met the criteria of the study as of Dec. 31, 2011. The results reveal that in roughly 88 percent of the analyzed companies and 90 percent of the managers no positive statistically significant correlation was found between the salaries of individual managers and companies’ strategic objectives. Similar results were obtained for the relationship between salaries and other economic objectives of companies; this lack of a positive and statistically significant correlation between those variables was found in about 93 percent of the companies and 90 percent of the managers.Keywords
: listed companies, management, salaries, economic objectivesJEL classification codes
: H54, M12, J31, D21Article
Grażyna Bukowska, Joanna Siwińska - Does Competition Affect Local Public Investment in Polish Cities?
In this paper, we study the influence of political and local competition on public investment expenditures. Using panel data for 304 Polish cities over the 2002–2014 period, we estimate the determinants of public infrastructure investment. The estimations show that both political competition and fiscal decentralization matter for public investment spending.
A significant negative correlation was found between investment per capita (the proportion of investment in total expenditure) and the level of political competition measured by the Herfindahl-Hirschman Index (HHI). A decrease in the intensity of competition results in greater public investment per capita, while fiscal decentralization increases the share of public funds allocated for investment.Keywords
: political competition, investment expenditure, financial autonomyJEL classification codes
: H54, H71, H72, H77, C23Article
Tomasz Legiędź - The Economic and Political Transformation of Taiwan from a Limited to an Open Access Order
The main aim of this article is to explain how the Taiwanese government managed to create institutions conducive to economic development. The paper analyzes the process of institutional transition in Taiwan by applying a conceptual framework proposed by D.C. North, J.J. Wallis, S.B. Webb, and B.R. Weingast. The analysis makes it possible to positively verify the research hypothesis that a security threat from China was an important factor that determined the economic policies of Taiwan. The threat exerted continuous pressure on the country’s elites, as a result of which they were forced to cooperate and their action became more predictable. That is why Taiwan’s authoritarian government has been able to build institutional foundations for economic development. The result of economic growth was the enrichment of society, education and the development of a civil society, which allowed the opposition to exert pressure on the regime and finally led to democratization. Because specific circumstances played a key role in the economic development of Taiwan today’s developing countries would find it difficult, if not impossible, to imitate the Taiwanese development model.Keywords
: Taiwan, economic development, new institutional economics, social orderJEL classification codes
: B52, O10, O53Article