Template-Type: ReDIF-Article 1.0 Author-Name: Jiří Havel Title: Budování institucí v České republice Title: Building institutions for the Czech Republic Abstract: Badly defined institutional framework caused many problems of the Czech transition. Designers of the economic reform did not respect the importance of precisely functioning market institutions. No doubts that building institutions supports the functioning of markets. The article analyses why Czech economists and politicians did not understand the problem in the beginning and how they attempted to correct this initial mistake. The Czech (Slovak) economy was in a worse situation if compared with other central European countries because any private sector did not exist there before 1990. Both formal and informal institutions were built here in the green field. After politically sensitive problems with financial crime the building of institutions was accelerated in late 1990s. The process of re-building Czech market institutions continues within EU now. Keywords: institutions, privatization, transition, corruption, evolution, legal framework Classification-JEL: B52, G28, K11, K42, O17, P21 Volume: 2004 Issue: 6 Year: 2004 File-URL: http://www.vse.cz/polek/486 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:6:id:486 Template-Type: ReDIF-Article 1.0 Author-Name: Filip Novotný Title: Výnosy z přímých zahraničních investic a jejich rozdělení v České republice Title: Foreign direct investment earnings and their division in the Czech Republic Abstract: The Czech economy has been characterized by a rapidly increasing external income balance deficit since 1998, which was caused by an increasing outflow of FDI earnings. The paper analyses factors, which determine the total amount of FDI earnings in a host economy and their subsequent division into reinvested earnings and repatriated profits. Three main factors are examined: total FDI stock in the economy and its structure, the FDI rate of return and the FDI financial life cycle. Growing total FDI stock, which reaches 51 % of Czech GDP, is the most influential factor because the FDI rate of return has been approximately stable exceeding 10 %. An outstanding amount of reinvested earnings in the Czech economy negatively influences the current account deficit, which exceeds the GDP 5 % benchmark rate, although reinvested earnings do not represent actual financial outflows. Keywords: foreign direct investment, FDI financial life cycle, earnings outflow, reinvested earnings, repatriated profits, income balance Classification-JEL: F23, F40, G32, L20 Volume: 2004 Issue: 6 Year: 2004 File-URL: http://www.vse.cz/polek/487 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:6:id:487 Template-Type: ReDIF-Article 1.0 Author-Name: Michal Andrle Author-Name: Jan Brůha Title: Význam forem diskontování v ekonomickém modelování Title: The role of discounting type in economic modelling Abstract: This paper reviews important approaches to discounting in economic modelling. It summarizes historical approaches and discusses why exponential discounting has been adopted as a widely accepted benchmark. The article then presents hyperbolic discounting as an alternative, while stresses different interpretation of discounting in positive and normative economics. In positive economics, the paper uses recent evidence to show that some observed regularities implied by exponential discounting are counterfactual and we illustrate different implications of the two approaches to discounting using numerical simulations of a stylized model of investment-consump- tion behaviour. It also concerns with applications of discounting in normative models of environmental economics. Many authors claim that exponential discounting, when used for long-term project evaluation, leads to an unfair treatment with generations living in a far future. We construct a model of optimal non-renewable resource exploitation to illustrate different normative implications of exponential and hyperbolic discounting. Keywords: discounting, economic modelling, consumer behaviour, environmental economics Classification-JEL: D11, E2, Q0 Volume: 2004 Issue: 6 Year: 2004 File-URL: http://www.vse.cz/polek/488 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:6:id:488 Template-Type: ReDIF-Article 1.0 Author-Name: Marek Loužek Title: Nastává při rozšíření Evropské unie paradox nových členů? Title: Does paradox of new members come into being during the EU enlargement? Abstract: The article asks whether a paradox of new members comes into being during the EU enlargement. The first chapter defines the paradox of new members and examines its frequency in political communities. The second chapter introduces practical examples of the paradox and specifies voting power indicators in the EU. The third chapter brings empirical results - frequency of the paradox during EU enlargement. The fourth chapter tests some hypotheses and defines a disproportionality index. The fifth chapter summarizes conclusions. Keywords: game theory, EU enlargement, voting indicator, quantitative analysis, index of power, minimal winning coalitions Classification-JEL: C12, C43 Volume: 2004 Issue: 6 Year: 2004 File-URL: http://www.vse.cz/polek/489 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:6:id:489 Template-Type: ReDIF-Article 1.0 Author-Name: Jiří Fárek Author-Name: Jaroslav Foltýn Title: Rozvojové země v éře ekonomické globalizace Title: Developing countries in economic globalization era Abstract: This article describes core changes, both theoretical and practical, of DC's action unity and its new features after the globalization acceleration during the 90's and the beginning of 21st century. Following re-defintion of basic terminological issues the authors show that the "unity of purpose" famous in the 70's has not yet evaporated as predicted by some authors in the late 80's. The case is analyzed and ilustrated by the failure of 5's WTO Summit in Cancún, September 2003 and also negotiations connected with the creation and activities of Group 21. The problems of agricultural subsidies are in the centre of attention with possible impact on international trade as mainly EU and its new members (including the Czech Republic) is concerned. However, the authors predict that the new LC's "unity of purpose" will be more volatile and fragile than before. Keywords: globalization, developing countries, agriculture protectionism, action unity, international economic relations, unity in diversity, EU subsidiaries, differentiaton, EU enlargemen, World Trade Organization Classification-JEL: F13, O13 Volume: 2004 Issue: 6 Year: 2004 File-URL: http://www.vse.cz/polek/490 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:6:id:490 Template-Type: ReDIF-Article 1.0 Author-Name: Eva Cihelková Title: Nový regionalismus: teorie a projevy ve světové ekonomice Title: New regionalism: theory and trends in the world economy Abstract: The aim of the article is to outline the theoretical grounds of regionalism and, in particular, to explain the basis of this new phenomenon, its forms (stages) and historical development. The core of the explanation is a "new" regionalism as the third wave of regionalism in the world economy: its interpretation, causes, diversity and cases of regional integration. Furthermore, trends in regional development of trade initiatives have been outlined (from the "old" to "new" regionalism, from a "looser" to "deeper" integration, from individual cases to "global" regionalism.) In the conclusion, areas requiring further examination in connection with the impact of regionalism on the Czech economy have been defined. Keywords: integration, world economy, international economics, preferential trade agreements, regional trade agreements, free trade area, regionalism, custom union, regional integration Classification-JEL: F02, F15, F19 Volume: 2004 Issue: 6 Year: 2004 File-URL: http://www.vse.cz/polek/491 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:6:id:491 Template-Type: ReDIF-Article 1.0 Author-Name: Milan ŘÍKOVSKÝ Title: Metodologie Rakouské školy Title: Methodology of the Austrian school of economics Abstract: One of the distinctive features of the Austrian school of economics is its emphasis on the methodological foundations of economics and social sciences in general. The two pillars of the approach of this school are methodological individualism and subjectivism. The purpose of this essay is not only to identify a few of the principles with which most Austrians are in agreement but also to emphasise significant diversity within their common viewpoint. An accent is put on praxeology introduced by Mises and Hayek's requirement of "empirical elements" concerning the processes of human learning. It is further emphasised that within this diversity has run and continues to run a common thread of emphasis on man as an intentional, creative being, an actor rather than a mere passive responder to given constraints and circumstances. The essay treats the development of the Austrian methodology mainly under the separate heads of its individual contributors. Keywords: methodology, Austrian school, individualism, subjectivism, knowledge, human action, non-mathematical approach, ignorance, praxeology Classification-JEL: B41, B53 Volume: 2004 Issue: 6 Year: 2004 File-URL: http://www.vse.cz/polek/492 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:6:id:492