Template-Type: ReDIF-Article 1.0 Author-Name: Martin Mandel Author-Name: Vladimír Tomšík Title: Přímé zahraniční investice a vnější rovnováha v tranzitivní ekonomice: aplikace teorie životního cyklu Title: Foreign direct investment and the external balance in a transition economy: the application of life cycle theory Abstract: The article analyses a development of the external balance in five Central and Eastern European countries: the Czech Republic, Hungary, Poland, the Slovak Republic, and Slovenia. The main idea of the article is to apply, expand, and empirically verify the ideas of life cycle theory in the area of the impacts of foreign direct investment on the balance of payments in the transition countries. The article defines and explores the basic general stages in the external balance of a transition country. The definition of the stages draws from a model consumer behaviour within the life cycle theory once the external balance stages have been defined as follows: young transition economy, mature transition economy, post-transition economy, and expanding economy. The authors have developed a model that provides criteria which not only classify the current stage of each transition country, but also evaluate the success in the catching-up process of the country examined. Keywords: current account, savings, foreign direct investment, balance of payments, investments, balance of income, financial account, life cycle Classification-JEL: E20, F30, F41 Pages: 723-741 Volume: 2006 Issue: 6 Year: 2006 File-URL: http://www.vse.cz/polek/download.php?jnl=polek&pdf=580.pdf File-URL: http://www.vse.cz/polek/580 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2006:y:2006:i:6:id:580:p:723-741 Template-Type: ReDIF-Article 1.0 Author-Name: Vojtěch Spěváček Title: Makroekonomická rovnováha české ekonomiky v letech 1995 až 2005 Title: Macroeconomic balance of the czech economy in the years 1995-2005 Abstract: The study is focused on macroeconomic stability of the Czech economy. The first part (methodological) stems from the system of national accounting which offers two approaches: from the point of view of relationship between domestic supply and demand and between savings and investments. Analytical part examines domestic supply and demand, which is reflected in the balance of foreign trade. There was a positive tendency due to a favourable development in foreign trade. The relation between savings and investments, which is equal to current account balance, looks less favourable. The main source of imbalance is a negative balance of incomes expressing bigger outflow of primary incomes in relation to their inflow. Public finances can be identified as the weakest chain link of economic development. International comparison with new EU Members from middle Europe indicates that keeping macroeconomic stability in acceptable boundaries represents a serious problem. Keywords: gross domestic product, current account balance, domestic demand, foreign trade and trade balance, national savings, general government budget, macroeconomic balance, gross national disposable income, domestic investments Classification-JEL: E21, F30, H62, O11, P24 Pages: 742-761 Volume: 2006 Issue: 6 Year: 2006 File-URL: http://www.vse.cz/polek/download.php?jnl=polek&pdf=581.pdf File-URL: http://www.vse.cz/polek/581 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2006:y:2006:i:6:id:581:p:742-761 Template-Type: ReDIF-Article 1.0 Author-Name: Vratislav Izák Author-Name: Eva Dufková Title: Výdaje na sociální péči - nové státy Evropské unie a Česká republika Title: Expenditure on social protection-new EU member states and the Czech republic Abstract: It is well known that in EMU the degree of similarity in the composition of current expenditures is relevant since the way Member States are affected by external shocks depends at least in part on this composition. In the 8 postsocialist countries recently admitted to the EU (EU-8) the mean value of both current revenue and expenditure correspond to this of EU-12 for the period 1993-2007 (first of all Slovakia and Hungary). Lower are the values in the Baltic States. The dynamics of expenditure on social protection exhibits a clear picture-the main tendency in EU-8 is to decrease the ratio of this kind of expenditure on GDP. Taking into account the functional classification of government expenditure (COFOG) we see that social protection is the largest category of government expenditure for all EU Member States. Only in Poland and Slovenia these outlays correspond to the EU-15 average (in the Baltic states the social protection is very low). The coefficients of variation for the functional catagories of government expenditure display a wider volatility in EU-8 than in the older countries of EU. Panel analysis-(fixed effect models) are in accordence with simple correlations and show that only the unemployment rate has had the expected positive relationship with social transfers for the majority of EU-8 countries. The more profound analysis of the Czech Republic displays the increasing redistribution of GDP since the year 2002. Keywords: Social protection, functional classification, new EU Member States Classification-JEL: E62, H6 Pages: 762-777 Volume: 2006 Issue: 6 Year: 2006 File-URL: http://www.vse.cz/polek/download.php?jnl=polek&pdf=582.pdf File-URL: http://www.vse.cz/polek/582 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2006:y:2006:i:6:id:582:p:762-777 Template-Type: ReDIF-Article 1.0 Author-Name: Karel Müller Title: Inovační výkonnost nových členských zemí EU - situace ČR Title: Innovation performance of new EU memeber countries - situation in the Czech republic Abstract: The article deals with analysis of the factors influencing innovation performance in new EU member countries, particularly in the Czech republic. The analysis follows the advancement of (neoschumpeterian) economic studies on interfaces between technology and economy, which are reflected in and supported by formation of the international databases on innovation as well as the regulatory policies in the fields of science, technology and innovation. Making use of the concept of national innovation system the analysis is focused on three basic factors of innovative performance: academic resources, resources of innovating firms and impact of regulatory policies on innovation performance. The available data are used to assess not only the size and structure of innovation resources but also institutional factors influencing the transformation of resources into innovative performance. The outcome of such assessment is used to articulate structural dependences and growth opportunities of domestic innovation system. Keywords: research and development, innovation, national innovation system, innovating firm, types of innovation activity, innovation policy, infrastructure for support of innovation Classification-JEL: O3 Pages: 778-801 Volume: 2006 Issue: 6 Year: 2006 File-URL: http://www.vse.cz/polek/download.php?jnl=polek&pdf=583.pdf File-URL: http://www.vse.cz/polek/583 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2006:y:2006:i:6:id:583:p:778-801 Template-Type: ReDIF-Article 1.0 Author-Name: Michal Pazour Title: Dynamika konvergence cenové úrovně ČR a strategie přistoupení k eurozóně Title: Price level convergence dynamics in the CR and the accession strategy to the euro-zone Abstract: Czech economy has recently accelerated the real economic convergence to the European average. Nevertheless, in terms of price convergence the Czech economy is still lagging behind the expected dynamics, which should theoretically respond to the pace of relative economic growth. This asymmetry may (as one of many other factors) contribute to some difficulties in stabilizing Czech inflation during the two-years transition period before accession to the Euro-zone, when price convergence criterion and exchange rate stability criterion should be simultaneously met. The paper points out selected issues of the Czech nominal convergence dynamics and emphasizes possible negative impacts of restrictive monetary policy measures (pushing for low inflation rate and stable exchange rate vis-à-vis euro) on the real growth of the Czech economy. In this respect, the paper tries to find some lessons from Slovenian and Greek approach for the arrangement of the Czech monetary policy in the pre-accession period. Keywords: Maastricht criteria, real and nominal convergence, ERM II membership Classification-JEL: E31, E58, F31 Pages: 802-815 Volume: 2006 Issue: 6 Year: 2006 File-URL: http://www.vse.cz/polek/download.php?jnl=polek&pdf=584.pdf File-URL: http://www.vse.cz/polek/584 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2006:y:2006:i:6:id:584:p:802-815 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Kubíček Title: Úrokové diferenciály a zadlužení v eurozóně Title: Interest rate differentials and the debt in the euro-zone Abstract: The paper deals with unintended consequences of the monetary union for the level of debt in the member countries of the eurozone. First, it is shown that there exist systematic inflation and real interest rate differentials among the member countries. These differentials reach up to 3 percentage points per year between the high inflation countries (e.g. Ireland) and the low inflation ones (e.g. Germany). Different rates of growth of private or total domestic debt in individual countries were closely connected to inflation differentials. Thus the debt was rising very rapidly in high inflation countries. Surprisingly, national saving rates remained stable in most countries so they cannot explain the differences in growth rates of the debt. Instead we proposed a portfolio model of the debt according to which the change in the debt is due to a reshuffle of individual portfolios. The model also implies that asset prices should change in the same direction as does the debt. This seems to have been the case in the eurozone as well. Keywords: asset prices, real interest rate, debt, inflation differentials, monetary union, portfolio model Classification-JEL: E44, E51, F36 Pages: 816-833 Volume: 2006 Issue: 6 Year: 2006 File-URL: http://www.vse.cz/polek/download.php?jnl=polek&pdf=585.pdf File-URL: http://www.vse.cz/polek/585 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2006:y:2006:i:6:id:585:p:816-833 Template-Type: ReDIF-Article 1.0 Author-Name: Jiří Fárek Title: Challenges of globalization, euroregional cross-border cooperation and foreign investment Title: Challenges of globalization, euroregional cross-border cooperation and foreign investment Abstract: This contribution is focused on the core changes and trends in the globalized world economy. As the globalization advances, countries and regions are challenged to shape more flexible arrangements to ensure that new risks are dealt with and the new opportunities are exploited. It is Europe's regions that are coming to the fore in matters as capacity - building and growth - related activities. As a locally rooted approach, regional cooperation can harness institutions, encourage creativity and take into account local labor, skills, infrastructure, economic mentality, business environment and communities at different levels of decision - making. Globalization has affected the magnitudes, composition and directions of capital flows. Namely in the sphere of foreign direct investment (FDI) that constitute a patent complex of capital, experience, knowledge and operational links with partners abroad. FDI contribute to the economic advancement, especially in the emerging market economies, and has proved to be resilient during financial crises. Attention is also set on motivation, benefits and disputed aspects of FDI. Keywords: capital flows, foreign direct investment, globalization, world economy, developing countries, transnational corporations, euroregions Classification-JEL: F200, F400, L120, O13 Volume: 2006 Issue: 6 Year: 2006 File-URL: http://www.vse.cz/polek/586 File-Format: text/html Handle: RePEc:prg:jnlpol:v:2006:y:2006:i:6:id:586