The author addresses current and important issues of corporate social responsibility. The current situation in this respect is limited economic growth and social development. The author calls for concrete steps to be taken to improve the situation.
It has been shown in the article that education in Poland is very efficient up to the middle level, though, this prepared human capital does not affect the economic growth in Poland measured by the GDP per capita. One of the main unsolved problems is the lack of cohesion of higher education and the national economy, which is expressed, among others, by the lack of the correlation between the graduate structure and the labor market. In the last twenty years the number of students in Poland has increased almost five times, hence the concern for a higher education quality improvement and, as a consequence, for economic growth. The article is an attempt of analysis of the reality of the above mentioned state.
In political economics coexist two thoughts of income (earnings) inequalities. First, motivating, which postulates bigger earnings inequalities and second, egalitarian, which postulates less earnings inequalities. In the earlier research we tried to reconcile these two thoughts. We confirmed the appearance of optimum, for economic growth, earnings inequalities (Gini index, 28%). From this perspective, both too little and too big earnings inequalities had equally a negative impact on growth. Now we’re putting one hypothesis that too little and too big inequalities cause different waste of economic effectiveness. On one hand, when inequalities are less than the optimum ones, their increase causes considerable economic growth. Then the whole of society accept the increase of earnings inequalities. On the other hand, when inequalities are too big, their downfall gives less economic profits. Demands of poor people to reduce too big disparities in earnings can be corrected by the necessity of using differential work and level of education. The research was conducted for Poland for period 1970–2006 on the economic growth model.
Theoretical background: The article explores the relationship between corruption and innovation in an economy and between corruption and economic growth. The multi-faceted and complex nature of corruption means that the impact of corruption on innovation and economic growth is unidirectional. There are arguments in the literature for both positive and negative effects of corruption on macroeconomic figures. Most empirical research confirms the linear negative impact of corruption on economic growth. These results are the opposite of theoretical arguments that there may be both positive and negative consequences of corruption.Purpose of the article: The research aim is to analyse the theoretical aspects of the impact of corruption on selected macroeconomic variables. This goal was achieved by analysing the most significant arguments describing the relationships between chosen variables. Based on the literature analysis, research hypotheses were developed, and they were verified in an empirical study. The results were analysed in the discussion section.Research methods: The study is based on a set of data on economically developed countries in Europe from 1996 to 2017. The empirical study was conducted using basic statistical measures – descriptive statistics and correlation coefficient, whereas econometric models were based on the GMM system (Generalized Method of Moments).Main findings: The results of this research show that the relationships between corruption and the measure of innovation, and corruption and economic growth are not linear. They take the form of a parabola. This means that the influence of corruption on innovation and economic growth is not the same for all levels of the corruption indicator. The relationship between corruption and economic growth is specific enough to show that a low level of corruption is economically justified from the point of view of empirical research. This is possible because corruption solves other economic problems, such as bureaucracy, which limits development. Corruption will support economic growth if the state does not work properly.
PL
Theoretical background: The article explores the relationship between corruption and innovation in an economy and between corruption and economic growth. The multi-faceted and complex nature of corruption means that the impact of corruption on innovation and economic growth is unidirectional. There are arguments in the literature for both positive and negative effects of corruption on macroeconomic fiures. Most empirical research confirms the linear negative impact of corruption on economic growth. These results are the opposite of theoretical arguments that there may be both positive and negative consequences of corruption. Purpose of the article: The research aim is to analyse the theoretical aspects of the impact of corruption on selected macroeconomic variables. This goal was achieved by analysing the most signifiant arguments describing the relationships between chosen variables. Based on the literature analysis, research hypotheses were developed, and they were verifid in an empirical study. The results were analysed in the discussion section. Research methods: The study is based on a set of data on economically developed countries in Europe from 1996 to 2017. The empirical study was conducted using basic statistical measures – descriptive statistics and correlation coefficient, whereas econometric models were based on the GMM system (Generalized Method of Moments). Main findings: The results of this research show that the relationships between corruption and the measure of innovation, and corruption and economic growth are not linear. They take the form of a parabola. This means that the influence of corruption on innovation and economic growth is not the same for all levels of the corruption indicator. The relationship between corruption and economic growth is specific enough to show that a low level of corruption is economically justified from the point of view of empirical research. This is possible because corruption solves other economic problems, such as bureaucracy, which limits development. Corruption will support economic growth if the state does not work properly.
The approach of a unilateral impact of the financial sector on economic growth was invalidated by the last financial crisis which very quickly changed into a global economic crisis. The aim of the study is the analysis of the impact of the financial sector on economic growth in the context of the growing phenomenon of financialization, which was one of the significant reasons of the financial crisis. The study was focused on presenting the growing scale of this phenomenon and analysing the impact of money supply in USD and EUR on world GDP and the GDP of the USA and the Eurozone. The following hypothesis was postulated: the growing process of financialization causes the growth of the USD and EUR supply, influencing changes in the world GDP, the GDP of the USA and the Eurozone. The study confirmed the hypothesis of the relation of the money supply with changes in economic growth. However, influencing economic growth with the money supply causes the purchasing power of business entities to decrease and causes growing debt. Furthermore, it does not contribute to the strength of the real economy. A repair of the current “system“ should not be sought for in constantly increasing macroprudential regulations, but in a return to a country’s interventionism, leading to a change in the priorities of the actions of financial institutions; mainly banks, and the supply of money based on fixed parities (gold, energy).
This essay considers the concrete consequences for human lives of social and eco-nomic values. Through case studies indicative of the Victorian age, early 20th century and contemporary 21st century, the evolutionary change in specific values is exhibited. Values are recognized as essentially shaping human conduct, while the exercise of indi-vidual choices in this milieu has resulted in progressive shifts breaking up the rigid adherence to values, establishing the possibility in some areas for greater tolerance, such as in the area of mores determining the institution of marriage. The destructive nature of corruption through material values is also presented.
In this paper we discuss and investigate mutual relationship between FDI and FPI stocks in 3 countries. The standard theoretical economic paradigm sharply differentiates between the two, treating them rather as substitutes from foreign investor’s perspective. Yet, some recent empirical attempts reveal that there are important similarities in their determinants and thus suggest their complementarity. Furthermore, we contribute by assessing FDI & FPI stocks’ impact on real GDPs. In this paper we present estimates of vector error correction (VEC) models’ parameters for three countries, in various settings. We find a number of interesting points – in case of Poland there seem to exist some significant long-run dependences between real GDP and stocks of FDI and FPI, which to some extent stands in opposition to inferences derived from analogical models constructed for two well-developed countries, the United Kingdom and Germany.
This paper investigates the relationships between exchange rates, economic growth and foreign direct investment through a time-variant parameter VAR model using monthly data from China for the period 2001-2016. The focus is on the reaction of economic growth to a shock change in exchange rates or foreign direct investment. The dynamic impulse response function showed that the relationships do not instigate great change. A positive shock in the real exchange rate slows down FDI inflows, with no evidence to support the contractionary devaluation theory in China, which suggests that an increase in the real RMB exchange rate generally causes a negative influence on China’s economic growth. The empirical results of this research contradict what intuition suggests and indicates that FDI has generated an ambiguous effect on economic growth in the past few years. Before 2008, shock changes in FDI would cause economic growth to lag for one period. Since then, the lag phenomenon has disappeared due to better regulation and a maturing financial market.
Idea of technological progress based on two different types of research that generate radical and incremental innovations, became new approach in endogenous growth modeling. This approach seems to be useful in modeling relationships between technological progress, natural resources, environmental quality and economic growth. The purpose of this paper is to answer questions about relationships between long-term economic growth, technological progress and use of natural resources. The main object is an impact of natural resources use on growth rate and a role of endogenous technological progress.
This paper carries out a comparative analysis of the degree of financial development between transition economies and developed ones based on variables that indicate the direct and indirect degree of financial development. To determine the way the financial systems works and the level of its development, the authors have taken into account four general characteristics of financial institutions and financial markets which were measured for the financial institutions (mainly banks, which are the most important financial institutions in most economies in transition, insurance companies and other financial institutions) as well as for the financial markets, thus leading to a 4x2 matrix of the main characteristics of the financial system. The analysis was developed based on the data found on the Global Financial Development database of the World Bank. Empirical data and authors’ analysis were used to characterize and compare financial systems between countries with economies in transition and developed countries for the years 2008 – 2011. The year 2011 was the last year of available qualitative data for many countries in the Balkan Region such as Albania, Kosovo and Macedonia.
The Revised Minimum Standard Model (RMSM) became an important analytical tool for the World Bank’s financing projects in the 1970s. Since that time, the model and its sequential extensions (the RMSM-X and the RMSM-XX) have been used to forecast economic growth and development in developing countries, despite their numerous limitations. The RMSM model can be solved in the positive mode and in the programming mode without or with limits on foreign flows. The model estimates the levels of investment and foreign financing that are needed to achieve a target for economic growth if it is solved in the positive mode or in the programming mode without constrains on foreign financing. If the RMSM model is solved in the programming mode with constrains on foreign financing then it gives us a feasible level of output growth for available levels of investment and foreign financing. The extended Bank’s models incorporate more complex economic structure. The RMSM-XX model more completely specifies the behavioural links among economic variables.
This paper examines the role of export diversification for economic growth in CEE transition economies. The results prove that before the outbreak of 2008 financial crisis export specialization rather than diversification was an important growth factor, especially in those countries which followed more specialized export patterns. However, after the outbreak of the crisis the direction of this causal link changed essentially. All three main aspects of export diversification turned out to play a significant role in reducing the growth slowdown effects of the 2008 financial crisis.
Public discussions concerning tax system reforms are dominated by the view that lowering taxes is the only panacea for stimulating economic growth. But is this really so? To be able to answer this question we need to examine how the level of fiscal burden and structure of budget tax revenues are correlated with GDP growth rate (27 EU countries, data 2000-2018). A relationship that is particularly examined is the correlation between the level of fiscal burden in personal income tax and economic growth rate. Considerably less attention is paid in various analyses to the influence of the structure of budget tax revenues on economic growth. income taxation, fiscal policy, economic growth Przeprowadzona analiza zależności między trzema rodzajami podatków a wzrostem gospodarczym w Polsce i krajach UE w latach 2000-2018 wskazuje na następujące. Po pierwsze istnieje statystycznie istotny związek między opodatkowaniem a wzrostem gospodarczym w badanym okresie, po drugie istnieje statystycznie istotny, ujemny związek między udziałem składek na ubezpieczenie społeczne do PKB a wzrostem gospodarczym, po trzecie istnieje statystycznie istotny, ujemny związek między udziałem podatków bezpośrednich do PKB a wzrostem gospodarczym, ale słabszy niż w przypadku składek na ubezpieczenie społeczne i po czwarte istnieje statystycznie istotny, dodatni związek pomiędzy wpływami z podatków pośrednich a wzrostem gospodarczym. Przeprowadzona w pracy analiza statystyczna wykazała statystycznie istotny, ujemny wpływ opodatkowania podatkami bezpośrednimi i składkami na ubezpieczenie społeczne na wzrost gospodarczy w prezentowanych krajach. podatki dochodowe, polityka fiskalna, wzrost gospodarczy
This study investigates the determinants of corruption in Ukrainian regions and applies spatial analysis to examine the relationship between corruption perception index and economic, political and cul- tural factors. The results of the study show that economic growth decreases corruption in the regions. The paper also challenges the existing academic studies, as it shows positive impact of the number of civil organizations in Ukrainian regions on corruption. The impli- cations of the empirical research are, therefore, a valuable asset to the existing literature on corruption. They indicate that dealing with cor- ruption in Ukraine requires consideration of the influence of region- specific corruption determinants.
Purpose: The aim of this paper is to show the conditions of the EU against the realities of the global economy in the post-crisis era, an indication of which are the determinants of the development of the competitive advantage of the Community. Methodology: An analysis of the determinants of growth at different stages of the process of EU integration with particular emphasis on optimum currency area criteria for the euro zone crisis, under asymmetric demand shock. Findings: The last global crisis has highlighted the structural weaknesses of the EU, which in times of economic prosperity can be compensated by a system of transfers and the mechanism of credibility borrowing. With such a strong crisis Europe needs more growth. Research limitations: The costs of this crisis affect the Community, significant for both public finances and the standard of life, but are also visible on a global scale, which is difficult to estimate. Originality: An ex ante perspective on the determinants that will not only restore EU’s position in the world, but also did not miss an opportunity to play a significant role in the rapidly changing global economy, the twenty first century.
Throughout the studies on the impact of foreign direct investment (FDI) on the economic growth of the host economy, there is a significant heterogeneity in terms of the results; not only between the theory and empirics, but also within empirics itself. The aim of this study is to explain the heterogeneity of results of the previous studies on the benefits of hosting FDI. This work uses the topic-relevant literature to present the key benefits of inward FDI, which are then translated into a mathematical model, which the direct and indirect benefits are derived from and differentiated between. Firstly, this work develops a production function including the key direct and indirect effects of hosting FDI in order to (through the proof of endogenization of FDI) show that a simple inclusion of FDI as the next (usually along with capital and labor) factor of growth may lead to spurious and, therefore, inconsistent results. Secondly, the study introduces the Foreign Direct Investment Benefits Absorption Path, which due to its classification of host economies into four distinctive groups, differentiating between direct and indirect benefits of FDI, and showing their different ways of impacting the host’s economy provides a unique insight into the topic of heterogeneity of results on the impact of hosting FDI. It also provides a blueprint for further research into this topic. Lastly, the Foreign Direct Investment Benefits Absorption Path is used to develop FDI-related strategies aimed at increasing the economic growth of host countries.
Purpose: The aim of the paper is to present the theoretical and empirical arguments for the causality between growing income inequality and increasing public debt within the capitalist economies. Methodology: The paper consists of two major parts. The first part discusses the long-term changes in value of public debt and income inequality within countries, and presents the theoretical arguments for the causality between these two categories. The second part of the paper is an attempt to investigate the impact of inequality in the upper and lower parts of income distribution on an increase of public debt in a sample of OECD-countries in 1995–2010. The statistical analysis is based on calculations of: (a) correlation coefficients between income inequality and public debt; and (b) parameters of regression equations of the level and rate of growth of public debt in a sample of countries. The parameters of regression equations were calculated with ordinary least squares and fixed effects methods. Findings: The results of the calculation illustrate that the growth of income inequality in the upper and lower parts of distribution stimulated an increase in value of public debt in the OECD countries between 1995 and 2010.
The article briefly addresses some of the mistaken interpretations of the Industrial Revolution. In each session the following themes are shortly related to the industrial revolution: aristocracy, slavery, banking system and limited liability, public debt, navigation acts, foreign trade and colonies, and public debt. Last section points to the essence of the industrial revolution, which boils down to innovation implementations, beneficial to the massive consumers.
The global recession and the sovereign debt of European countries has triggered an intense debate over the effectiveness of fiscal policy and over the consequences of rising public debt. The purpose of this paper is to determine if there exist a correlation between the public debt and the economic growth in Albania, where the economic growth will be considered as the increase of GDP. The results and the methodologies are different in different countries and periods, as represented by various empirical studies. What is the situation in Albania at about the last 25 years? The SVAR methodology is used for analyzing this relationship. The results indicated that an instantaneous increase in real economic growth might increase the public debt and vice versa.
The aim of this paper is to understand the economic reforms that were undertaken in the late 1980s and early 1990s in India and their relevance today. The study is based on a literature review. The findings from the literature review are validated from data on growth at the national and regional levels. It was found that much of the effects of the reforms are relevant even today in the Indian context. There has been a positive impact on growth due to liberalisation policies. Economic indicators such as GDP and FDI have been on an increasing trend. The removal of trade barriers has had a positive effect on industry. Employment opportunities have increased in both rural and urban areas resulting in a reduction in unemployment. On the negative side, the observed growth is not inclusive. There has been regional a disparity in growth among the different states with some states growing faster than others. Moreover, not all sectors enjoy the benefits of liberalisation. The agriculture sector, for example, has not seen any or at least very few reforms. Thus to sum up, the government of India needs to continue the reforms and ensure that the benefits of an open market reaches one and all.
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