Contents of issue 3/2017
Janina Godłów-Legiędź - The Rule of Law and Political and Economic Transformation in Poland, summary
Eugeniusz Kwiatkowski, Przemysław Włodarczyk - Employment Protection Legislation and Its Impact on the Elasticity of Employment in OECD Countries, summary
Dorota Ciołek - Estimation of Gross Domestic Product in Polish Counties, summary
Katarzyna Szarzec, Wanda Nowara, Mirosława Żurek - The Ownership Structure and Economic Performance of Central and Eastern Europe’s Largest Enterprises, summary
Michał Brzozowski, Grzegorz Tchorek - Exchange Rate Risk as an Obstacle to Export Activity, summary
Janina Godłów-Legiędź - The Rule of Law and Political and Economic Transformation in Poland
The aim of this paper is to shed new light on what the rule of law really means in Poland’s post-socialist transition. In the first part of the article, we focus on the interpretations of the rule of law principle and its relationship to the democratic principle of majority rule.
We highlight two different interpretations of the rule of law that stem from the negative and positive concepts of freedom. In the second part, we look for the causes behind the rule of law crisis in Poland. Referring to the course of Poland’s political and economic transition, we refer to the disputes around the Balcerowicz Plan as well as the tendency to interpret the rule of law in light of the positive concept of freedom. We also mention the confrontational style of the political discourse and the process of “legislative inflation.”
The paper attempts to defend the thesis that undermining the role of the Constitutional Tribunal in such circumstances is not the way to rectify faults in the social system, but it may deepen the “legislative inflation” process, turning Poland away from the path of reform and reconciliation.Keywords
: rule of law, transition, democracy, liberalismJEL classification codes
: B10, K10, P20Article
Eugeniusz Kwiatkowski, Przemysław Włodarczyk - Employment Protection Legislation and Its Impact on the Elasticity of Employment in OECD Countries
This article explores the impact of employment protection legislation on the elasticity of employment with respect to GDP. We present the essence and scope of changes in employment protection and specify the theoretical mechanisms of its impact on the labor market. We also measure this impact using data for 23 OECD countries in the 2002-2014 period.
In the short term, we should expect the existence of a non-linear (U-shaped) relationship between the level of employment protection legislation (EPL) and the elasticity of employment. In the long term, however, EPL is perceived as neutral for the level of employment as flexible wages enable employers to accommodate changes in the labor market situation.
The hypothesis of the long-term neutrality of EPL for labor market categories was confirmed with the use of panel cointegration tests. The hypothesis concerning the impact of EPL on short-term labor market adjustments was confirmed only for the global crisis period.Keywords
: prawna ochrona zatrudnienia, elastyczność zatrudnienia, U-kształtna zależność, panelowy model korekty błędemJEL classification codes
Dorota Ciołek - Estimation of Gross Domestic Product in Polish Counties
The aim of this article is to identify an optimal method for estimating gross domestic product at the regional level in Poland, specifically at level of counties.
While various studies offer empirical analyses of the country’s economic growth and other economic processes, no official data is available on GDP at the level of counties in Poland.
The article presents the results of research based on three alternative approaches that rely on GDP disaggregation from the level of sub-regions (NUTS-3) to the level of counties (NUTS-4). These methods have been validated by comparing the results obtained for the higher level of aggregation. It turned out that the best method of disaggregating GDP was to use the shares of municipality tax revenues from income tax and agricultural tax. The estimated values of GDP in the counties in 2003–2013 were used to calculate the rate of economic growth in the entire period as well as in the period before and after the global economic crisis. We also examined the spatial autocorrelation of GDP per capita in 2013.
The time series of GDP at the county level in both constant and current prices generated as a result of the presented research can be used in other empirical analyses.Keywords
: GDP national income, regional economic activity, growth, spatial correlationJEL classification codes
: E01, R11, R12Article
Katarzyna Szarzec, Wanda Nowara, Mirosława Żurek - The Ownership Structure and Economic Performance of Central and Eastern Europe’s Largest Enterprises
The aim of this article is to analyze the scope of state ownership and to compare the financial results of the 500 largest non-financial enterprises in 12 Central and Eastern European countries. The data is for enterprises listed as “Coface - CEE Top 500” in 2014.
The question posed in this article is: “Does the form of ownership relate to the financial results of enterprises?”
In the case of 70 of these 500 enterprises, the state is either a majority or minority owner, but it invariably exercises supervisory control. Most of these state-owned enterprises are Polish (24) and Slovak (9). They dominate in network sectors. In order to identify the interdependencies between the form of ownership and the financial results of an enterprise, the authors calculated the Pearson product-moment correlation coefficient, t-test statistics for two independent samples, and the values of the Kolmogorov-Smirnov test comparing the structure in the two groups of subjects. Statistically important differences in the values of the financial ratios achieved by the enterprises—depending on their form of ownership—were also demonstrated. State-owned enterprises have a higher profit margin and a higher level of fixed assets, but a lower level of the net turnover ratio and a lower level of revenue compared with private companies.Keywords
: ownership structure, state-owned enterprises, Central and Eastern Europe, economic performanceJEL classification codes
: G32, L25, L33Article
Michał Brzozowski, Grzegorz Tchorek - Exchange Rate Risk as an Obstacle to Export Activity
The focus of the paper is on identifying major factors that can determine the vulnerability of Polish manufacturing companies to exchange rate risk. In order to verify our hypotheses, we have estimated logistic regression models based on a unique database to assess internal and external factors that make companies vulnerable to exchange rate risk. Our observations confirm the importance of exchange rate variability as one of the obstacles to starting and conducting export activity as well as expanding it to new markets.
We have found that exchange rate risk is particularly severe for companies that are financially constrained and get financing abroad as well as those whose balance sheets are negatively affected by devaluation. Also vulnerable are innovative firms and those that rely more on input imports.
Exchange rate volatility appears to be less of a concern for foreign-owned companies and enterprises that have higher shares of euro-denominated receivables and invoice exports in the Polish zloty. Companies competing by means of product quality and distribution channels are also among those less vulnerable to exchange rate risk.
Generally, we have confirmed the problem of exchange rate risk as an important cost to export activity. This gives some implications for exchange rate risk management at both the macroeconomic and microeconomic levels as well as for monetary integration.Keywords
: exchange rate risk, exports, empirical studies, tradeJEL classification codes
: F31, F18, F14Article