Search results - CEJSH

1

Wpływ zbyt małych i zbyt dużych nierówności płac na wzrost gospodarczy

100%

Kumor P.

Annales. Etyka w Życiu Gospodarczym

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2010

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vol. 13

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issue 1

EN

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.

2

The effectiveness of education and economic growth

100%

Biernacki M.

Mathematical Economics

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2011

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issue 7 (14)

5-18

EN

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.

3

Проблема общественной динамики как незадействованного потенциала социальной ответственности субъектов экономики

100%

Забрудский А. В.

Społeczeństwo i Edukacja. Międzynarodowe Studia Humanistyczne

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2012

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issue 2

563-569

EN

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.

4

The Impact of Corruption on Economic Growth and Innovation in an Economy in Developed European Countries

85%

Pluskota A.

Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia

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2020

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vol. 54

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issue 2

EN

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.

5

The Effects of Economic Reforms in India in the Early 1990s

80%

Narayanan V., Allen I., Naser N.

Horyzonty Polityki

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2015

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vol. 6

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issue 17

129-147

EN

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.

6

International trade and economic growth in the Polish economy

80%

GURGUL H., LACH Ł.

Operations Research and Decisions

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2010

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vol. 20

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issue 3-4

5-29

EN

The paper presents the results of examinations of linear and nonlinear causalities performed for international trade involving the Polish economy and its economic growth. In order to infer the impact of the world crisis on the Polish economy, two samples have been studied (containing quarterly data) – a full sample (Q1 1996–Q3 2009) and pre-crisis sample (Q1 1996–Q3 2008). The results of linear causality tests support the existence of feedback between the growth rate of exports and growth in gross domestic product (GDP) irrespectively of the time period chosen. For both the samples examined, no direct causal links between the growth rates of GDP and imports were detected. One can only suppose the existence of indirect links before the crisis. Bidirectional causality was found for growth rates of exports and imports only for the pre-crisis sample. Some weak evidence of a causal link running from the growth rate of imports to the growth rate of exports was also found for the period that covers the crisis, which may be interpreted as a confirmation of the fact that growth in imports also precedes growth in exports in bullish periods. It results from our computations that, at the time of the financial crisis of 2008, the main factor that caused Polish GDP growth to remain positive was domestic demand. The results of nonlinear causality analysis provided only weak evidence for causality running from GDP to exports, from GDP to imports and from imports to exports.

7

Trade liberalization, financial development and economic growth in the long term: The case of Iran

80%

Shahiki Tash M. N., Sheidaei Z.

Business and Economic Horizons

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2012

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vol. 8

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issue 2

33-45

EN

This study seeks to empirically examine the joint impact of trade liberalization and financial development on economic growth in Iran, using endogenous growth theory during the period 1966-2010. In this article principal component analysis is applied to make better indexes for trade liberalization, financial development and the joint effects of both. The empirical findings obtained from Johansen co-integration procedure signify a positive relationship between trade liberalization, financial development and the joint impact on economic growth in Iran.

8

Foreign Capital in Poland During Recession

80%

Wypych M.

Przedsiębiorczość i Zarządzanie

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2015

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vol. 16

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issue 2

45-59

EN

The system transformation which started in the last decade of the previous century and the accompanying transition into market oriented economy have contributed to the increase of foreign investors’ interest in committing their capital in Poland. The interest grew even more after Poland joined the European Union. With limited national financial resources and great demand for the same, foreign investment has been a desirable factor supporting and accelerating economic growth. The objective of this paper is to evaluate the changes in the level and structure of foreign capital in Poland in the years 2008–2013, that is during the period of economic downturn following the global financial crisis. The point is, first of all, to find an answer to the following question: to what extent has the economic destabilisation caused by the crisis influenced the decisions of foreign investors concerning investing their capital in Poland? This allows to verify the following scientific hypothesis: during crisis stability of the financial system of the country in which parent companies have their seats is more important for foreign investors than financial security of the host country. The analysis covers total foreign capital, that is both direct and portfolio investment, as well as derivatives and credit facilities. The empirical part of the study has been based on the information published by the National Bank of Poland.

9

Quality of Public Finances and Economic Growth

80%

Halmai P., Vásáry V.

Acta Universitatis Lodziensis. Folia Oeconomica

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2010

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vol. 241

EN

Fiscal sustainability is considered as a fundamental requirement of economic growth. The paper studies this topic regarding the EU Member States, especially the new ones. The ageing society of the EU countries results in growing dependency ratio and growing agerelated budget expenditure as implicit requirements. All these require the maintenance of the current state debt ratio and a permanent budget adjustment. The differences among Member States are significant, the country risks are diverse. In certain countries unsustainable public finances -sustainability gap – might evolve. Sustainable public finances are considered of special importance in the system of the EMU. Due to the lack of exchange rates, risk premia it comes to the spill-over of fiscal sustainability problems. Besides the reduction in state debt the creation of sustainable public finances requires employment and productivity growth, and the reforms of age-related expenditure. The quality of public finances requires the joint observance of several dimensions: long-term sustainability, stabilization (demand shocks), adjustment (effects of supply shocks) and the promotion of long-term growth are of outstanding importance. Main factors of the quality of public finances are the size of government, the level of deficit and state debt, composition of public spending, the structure of the tax system, and the fiscal governance and regulation. The Economic and Monetary Union itself has not forced out the necessary reforms yet. The fundamental public finance reforms are, however, unavoidable. In the ageing society there is a growing need for forward-looking policies. The integrated structural reforms that could contribute to the promotion of the potential growth might bring permanent solutions.

10

The Role of Foreign Direct Investment in Economic Growth. The Production Function Perspective

80%

Napiórkowski T. M.

Optimum. Studia Ekonomiczne

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2017

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vol. 5(89)

EN

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.

11

The Commercialization of the Knowledge as the Supposition of the Economic Growth

80%

Kubičková V., Bažó L., Staňo R.

Studia Commercialia Bratislavensia

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2012

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vol. 5

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issue 19

423-433

EN

The Endogenous growth theory assumes that the economy automatically benefits from its investments in to the knowledge. The knowledge is the public ware that can be used by the Entire economy. It leads to the innovation and the economic growth. The entrepreneurship has the main role in the successful process of the commercialization of the knowledge. The aim of this article is to present the situation of this process in the enterprises in the Slovak Republic.

12

Transformation in Poland

80%

Žídek L.

Review of Economic Perspectives

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2011

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vol. 11

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issue 4

237-270

EN

The paper analyses transformation process in Poland between 1989 and 2004. The goal of the paper is to clarify the most important steps in the economic policy that were carried out in this period. The structure of the paper follows this general goal. We first of all analyse economic development of the country before the fall of the communist regime because this determined the whole following process. Then we shortly mention political development that had a significant impact on the transformation process, and its results. In the next part we concentrate on the main steps in the economic transformation, and consequently devote place to specific aspects - for example privatisation. The final part analyses the main economic indicators of this period. We conclude that the transformation process achieved its main economic goal and the economy's ability to grow increased.

13

Economic growth and the optimal inequality of income

80%

Sztaudynger J. J.

Annales. Etyka w Życiu Gospodarczym

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2018

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vol. 21

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issue 8

89-99

EN

Inequality of income is one of the significant factors forming social capital. Two views dominate among economists dealing with the influence of income inequality on economic growth. On the one hand, a too low level of income inequality does not motivate people to increase their labour productivity. Low inequality of income might result from an extended social care system and a GDP burdened with social transfers. A good example may be a situation when an unemployed person refuses to accept a job offer and prefers unemployment benefits to a slightly higher salary. Moreover, a lack of incentives for an employee who fails to acknowledge the economic sense of increasing the productivity of his or her work might lead to a slower growth of the economy. On the other hand, a contrary view suggests that an increase in inequality of income has a negative impact on the economy. The accumulation of wealth by a small number of citizens raises doubts about the good use of that wealth for the investments necessary for the growth of the economy. Excessive inequality of income is confronted with the disapproval of a significant part of society and is regarded as unfair and unjustified. It may also increase the crime rate, decrease trust and, more generally, lead to the weakening of social capital. The arguments presented above lead to the hypothesis that the influence of income inequality on the growth of the economy has a non-linear, parabolic character. We have confirmed this hypothesis in growth models of the US and Swedish economies. We assess the historically optimal inequality of income measured by the Gini coefficient at 46% and 24% for the US and Sweden, respectively. The optimal inequality of income for Poland was assessed previously at 29%. The dissimilarities may result from differences in culture, society, educational level and diligence.

14

Concerns on the issue of defence expenditure in the post-crisis Greece

80%

Katsaitis O., Kondylis K., A. Zombanakis G.

Security and Defence Quarterly

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2019

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vol. 24

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issue 2

177-201

EN

The paper aims to tackle a controversial issue, namely the anticipated developments regarding defence expenditure once the Greek economy returns to growth. Such a comeback is expected to occur following a prolonged recessionary period during which defence spending cuts were a top priority, as recommended by the IMF, the ECB and the EC, members of the so-called “Troika”. The paper uses both conventional econometrics as well as neural networks to consider and evaluate the hierarchy’s ordering of the determinants used in such a demand for defence expenditure based on their explanatory power. While the role of property resources is certainly pronounced, as expected, human resources variables also seem to be able to explain defence spending developments, especially in the recent past. A forecasting investigation based on this background points to a number of interesting conclusions on the anticipated developments concerning defence spending in the future as well as on the determinants of such developments which might represent a threat to NATO cohesion.

15

Real Income Convergence between Central Eastern and Western Europe: Past, Present, and Prospects

80%

Rapacki R., Matkowski Z., Próchniak M.

Ekonomista

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2016

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issue 6

853-892

PL

Artykuł przedstawia analizę realnej konwergencji dochodowej pomiędzy 11 krajami Europy Środkowo-Wschodniej (EŚW) będącymi członkami Unii Europejskiej (UE11) a 15 krajami Europy Zachodniej (UE15) w okresie 1993–2015. Ewolucja luki dochodowej między tymi dwiema grupami krajów w kategoriach PKB per capita wg PSN ujawnia wyraźną tendencję do konwergencji w przekroju badanego okresu, co potwierdzają również wyniki testów konwergencji beta i sigma. Jednakże proces doganiania bogatszych krajów nie był ciągły i wykazywał pewne przerwy oraz epizody dywergencji. Najbardziej intensywna konwergencja miała miejsce w latach 2000–2007, tuż przed i po rozszerzeniu UE. Sugeruje to, że postępująca integracja gospodarcza stymulowała proces konwergencji. Jednak światowy kryzys gospodarczy i perturbacje finansowe w strefie euro doprowadziły do osłabienia konwergencji w wielu krajach EŚW, jak to pokazują zmiany luki dochodowej w latach 2007–2015. Artykuł przedstawia również pewne prognozy dalszego przebiegu konwergencji, oparte na trzech scenariuszach przyszłego wzrostu gospodarczego. Dwa pierwsze scenariusze zakładają kontynuację dotychczasowych lub obecnych tendencji wzrostu gospodarczego, z utrzymaniem przewagi krajów EŚW w zakresie tempa wzrostu gospodarczego, i pokazują prawdopodobną długość okresu wymaganego w poszczególnych krajach do osiągnięcia przeciętnego poziomu PKB per capita istniejącego w Europie Zachodniej. Trzeci scenariusz, oparty na długoterminowej prognozie ekonomicznej dla krajów UE, ostrzega, że tempo wzrostu gospodarczego w tym regionie może wkrótce osłabnąć, głównie pod wpływem niekorzystnych trendów demograficznych, co spowoduje zwolnienie tempa konwergencji, aż do jej całkowitego zahamowania lub przejścia do dywergencji. Aby zapobiec takiej ewentualności i zapewnić dalszy pomyślny rozwój gospodarczy krajów EŚW oraz podtrzymanie procesu konwergencji w UE, konieczna jest odpowiednia polityka społeczno-ekonomiczna realizowana zarówno na poziomie krajowym, jak i w ramach wspólnej polityki europejskiej.

EN

The paper presents an analysis of real income convergence between 11 countries of Central Eastern Europe which have joined the European Union (EU11) and 15 countries of Western Europe (EU15) in the period 1993–2015. The evolution of the income gap between the two groups of countries in terms of GDP per capita at PPP reveals a clear-cut tendency to income convergence over the analyzed period, which has been confirmed by the results of b- and v-convergence tests. However, the catching-up process was not continuous, showing some breaks and divergence episodes. The most intensive convergence appeared in the years 2000–2007, just before and after the EU’s major enlargement. This suggests that the increasing economic integration stimulated the convergence process. But the global economic crisis, along with financial perturbations in the euro area, have slowed down the convergence in most CEE countries, as reflected by changes in the income gap observed in the years 2007–2015. The paper also presents some projections of the convergence prospects, with three scenarios as to the future economic growth. The first two scenarios assume the continuation of past or current growth trends and the maintenance of positive growth rate differentials, indicating the probable length of the period needed by the individual CEE countries to attain the average GDP per capita level seen in Western Europe. The third scenario, based on a long-term economic forecast for the EU economies, warns that economic growth in the region may slow down due mainly to unfavorable demographic trends, with the resulting deceleration of the convergence process, up to its total halt or reversal into divergence. Proper social and economic policies are needed, both on the country level and in the framework of the common European policy, in order to assure a healthy economic growth in the CEE area and to maintain the convergence process within the EU.

RU

В статье представлен анализ реальной конвергенции доходов между 11 странами Цен- трально-Восточной Европы (ЦВЕ) – членами Европейского Союза (ЕС11) и 15 странами Западной Европы (ЕС15) в период 1993–2015 гг. Эволюция разницы в доходах между этими двумя группами стран согласно показате- лю ВВП на душу населения по ППС указывает на уверенную тенденцию к конвергенции за указанный период времени, что подтверждают также результаты тестов конвергенции бета и сигма. Процесс сближения не был, однако, устойчивым, бывали остановки и эпизоды ди- вергенции. Наиболее интенсивная конвергенция имела место в 2000–2007 годах, непо- средственно до и после расширения Евросоюза. Напрашивается тот вывод, что углу- бляющаяся экономическая интеграция стимулировала процесс конвергенции. Позднее всемирный экономический кризис и финансовые пертурбации в зоне евро вызвали осла- бление конвергенции во многих странах ЦВЕ, что отразилось на динамике сокращения разницы в доходах в период 2007–2015. В статье представлены также некоторые прогнозы дальнейшего хода конвергенции, опирающиеся на три сценария будущего экономического роста. Согласно двум первым сценариям существующие тенденции экономического роста сохранятся, причем страны ЦВЕ будут иметь опережающие показатели роста. На этом основании рассчитывается вероятная продолжительность периода достижения отдельными странами ЦВЕ средних западноевропейских показателей ВВП на душу населения. Третий сценарий, базирующийся на долговременном экономическом прогнозе для стран ЕС, предполагает ослабление темпа экономического роста в этом регионе, в основ- ном за счет неблагоприятных демографических трендов, что замедлит темп конверген- ции вплоть до полной остановки или даже перейдет в дивергенцию. Чтобы не допустить такую возможность и обеспечить дальнейшее успешное экономическое развитие стран ЦВЕ и сохранение процесса конвергенции в ЕС, необходима соответствующая обще- ственно-экономическая политика, реализуемая как в отдельных странах, так и в рамках общей европейской политики.

16

Renewable Resources, Capital Accumulation, and Economic Growth

80%

Zhang W.-B.

Business Systems Research Journal

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2011

|

vol. 2

|

issue 1

24-35

EN

This paper proposes a dynamic economic model with physical capital and renewable resources. Different from most of the neoclassical growth models with renewable resources which are based on microeconomic foundation and neglect physical capital accumulation, this study proposes a growth model with dynamics of renewable resources and physical capital accumulation. The model is a synthesis of the neoclassical growth theory and the traditional dynamic models of renewable resources with an alternative approach to household behavior. The model describes a dynamic interdependence among physical accumulation, resource change, and division of labor under perfect competition. Because of its refined economic structure, our study enables some interactions among economic variables which are not found in the existing literature on economic growth with renewable resources. We simulate the model to demonstrate the existence of equilibrium points and motion of the dynamic system. Our comparative dynamic analysis shows, for instance, that a rise in the propensity to consume the renewable resource increases the interest rate and reduces the national and production sector's capital stocks, wage rate and level of the consumption good. Moreover, it initially reduces and then increases the capital stocks of the resource sector and the consumption and price of the renewable resource. The stock of the renewable resource is initially increased and then reduced. Finally, labor is redistributed from the production to the resource sector.

17

Changes in the relative situation of the poor in a growing economy – the case of Poland

80%

Kośny M.

Mathematical Economics

|

2012

|

issue 8 (15)

83-96

EN

The permanently positive economic growth in Poland over the last twenty years has resulted in a significant improvement in the economic situation of households. The distribution of this increase in wealth was not, however, homogenous, and the pattern of income growth proved to be a crucial factor determining the situation of the poor. The aim of the paper is to investigate to what extent the characteristics of the households influence the income growth pattern. Three main groups of households will be considered: the selfemployed and blue- and white-collar workers. The analysis is based on the relative concept of changes in income distribution. Besides the commonly known income growth curves, diagrams related to the Zenga inequality index will be applied.

18

GLOBAL COMPETITIVENESS AND ECONOMIC GROWTH: A ONE-WAY OR TWO-WAY RELATIONSHIP?

80%

Kordalska A., Olczyk M.

Equilibrium. Quarterly Journal of Economics and Economic Policy

|

2016

|

vol. 11

|

issue 1

121-142

EN

The Global Competitiveness Index is treated as a standard to measure the competitiveness of countries. Leaders look at it to make policy and resource allocation decisions, because global competitiveness is expected to be related to economic growth. However, studies which analyze the empirical relationship between these two economic categories are very rare. It is still an open question in the literature whether economic growth can be used to predict future global competitiveness or the other way round. This paper empirically tests the relationship between the GCI and the economic growth rate by using a panel Granger causality analysis based on annual data for 114 countries divided into five groups by income criteria and covering the period 2006-2014. We confirm a strong unidirectional causality among the countries analyzed, i.e. GDP growth causes global competitiveness. Additionally, we find that the GCI is successful in predicting economic growth for the majority low income and OCED high income counties, but among the middle income countries this relationship exists only for large economies such as China and India.

19

Marriage, divorce and economic growth

80%

Baranowski P., Sztaudynger J. J.

Annales. Etyka w Życiu Gospodarczym

|

2019

|

vol. 22

|

issue 1

53-67

EN

The aim of the study is to estimate the impact of the so-called family social capital (family ties capital) on economic growth. We hypothesise that marital dissolution expresses decrease in the capacity for cooperation, collaboration and sharing responsibility not only within the family but also on a professional level. Thus, an increase in the divorce to marriage rate is accompanied by a slowdown in economic growth. The divorce rate is regarded here as an indirect cause of the slowdown. The reasons stem from the breakdown of cooperation and collaboration, as well as increased risk, trust reduction, and the shortening of the decision-making time horizon accompanying divorces and resulting from divorces. These phenomena directly affect the working members of the family in which a divorce takes place. According to the main hypothesis, their impact is transferred to professional life and concerns employee teams. For the study, we employ econometric models, the first one for Poland and the second for 15 European Union countries, for the period 1993–2017.

20

The World Bank Revised Minimum Standard Model: Concepts and limitations

80%

Nowak W.

Ekonomia. Wrocław Economic Review

|

2013

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vol. 19

|

issue 2

37 - 48

EN

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.

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