Prague Economic Papers, 2007 (vol. 16), issue 3

Original contributions, Original article, Research article

Real and Nominal Convergence and the New EU Member States - Actual State and Implications

Václav Žďárek, Jaromír Šindel

Prague Economic Papers 2007, 16(3):195-219 | DOI: 10.18267/j.pep.305  

This paper analyses the process of nominal and real convergence of the new Member States of the European Union. It also discusses theoretical and methodological issues relating to this process. The importance of nominal and real convergence is underlined in connection with a successful catching-up. The EU-10 economies experienced robust economic growth in recent years, which had a positive impact on the convergence process. Although this favourable development of real convergence (GDP per capita in PPS) is accompanied by a simultaneous price (nominal) convergence (changes in relative prices and a convergence of price levels), the comparative price...

The Czech Labour Market: Historical, Structural and Policy Perspectives

Jiří Večerník

Prague Economic Papers 2007, 16(3):220-236 | DOI: 10.18267/j.pep.306  

A proper picture of the Czech labour market emerges by focusing on its nuanced details from various perspectives. First we focus on the specific phases of the labour market as it developed in the 1990s. Second, we observe the changing composition of the labour force and labour mobility. Third, we examine the vulnerable categories of people. Policies, active labour market policies in particular, are described in the fourth section. Fifthly, we analyse the flexibility of the labour market in its various forms. In conclusion, several questions regarding the future of the Czech labour market are raised: predominant montage character of the Czech economy...

Industrial Clustering and Global Value Chains in Central and Eastern Europe: Role of Multinational Enterprises in Industrial Upgrading

Yusaf H. Akbar, Sonia Ferencikova

Prague Economic Papers 2007, 16(3):237-251 | DOI: 10.18267/j.pep.307  

The authors are attempting to draw together existing literature on the governance of GVCs; research on host country ""spillovers"" as a consequence of MNE activity and the broader cluster and innovation literature. While cluster research had done important work in identifying and operationalizing the necessary conditions for cluster formation, it had relatively ignored the global-local linkage brought by the presence of MNEs. The ""spillover"" literature has identified in theory numerous benefits of MNE presence in host countries. There was relatively little empirical work done in CEE to discover if these benefits actually exist. Neither literature...

A Living Worth Leaving? Economic Incentives and Migration Flows: The Case of Czechoslovak Labour Migration

Wadim Strielkowski

Prague Economic Papers 2007, 16(3):252-264 | DOI: 10.18267/j.pep.308  

Migration studies cannot explain a paradox why migrations from regions or countries with lower economic performance to regions or countries with higher economic performance remain low even though the economic incentives of emigration are high. This gives EU stakeholders solid reasons for building serious administrative barriers and introducing "transition periods" for free movement of labour from EU-8. It is generally believed that removing barriers would cause mass labour migration. However, it might be that the problem lies elsewhere and labour migration might remain low with or without barriers. This paper analyses the pattern of Czechoslovak migrations...