We are pleased to present the next issue of the Research Papers in Economics and Finance published by the University of Economics and Business in Poznan, Poland. We have selected five articles from different parts of Europe.
This issue opens with a great paper, which received three excellent reviews, written by Mihaela Simionescu from the Institute for Economic Forecasting of the Romanian Academy entitled “Bayesian combined forecasts and Monte Carlo simulations to improve inflation rate predictions in Romania”. The author has proved, using empirical data for Romania, that the Bayesian combined forecasts using experts’ predictions as priors, when the shrinkage parameter tends to infinity, improved the accuracy of the predictions based on individual models.
The second paper entitled “Risk management system references in construction” has been written by four authors: Volodymyr Tkachenko, Maryna Klymchuk, Tetiana Ilina from Kyiv National University of Construction and Architecture and Iryna Tkachenko from the Academy of the State Penitentiary Service in Kyiv, Ukraine. In this paper the authors examine the basic methods of risk management in construction: avoidance of risk, localisation, dissipation and compensation. Formalised functional structuring of risk management in construction was proposed, allowing for the implementation of management functions at two levels – executive and coordinating, with the help of a special structural component in the enterprise management system or a specialised unit in the organisational structure.
The next paper concerns “Information demand of foreign labour market from the point of view of Chinese students”. This paper has been written by Anna Pilarczyk and Tomasz Naprawski from the University of Szczecin, Poland. The authors have used the companies’ and students’ surveys which identified the main problems facing employers (like a small number of applicants or lack of expertise and experience) and foreign employees (like organisational problems or formal requirements in a foreign country) during the job application process. The proposed information-logistics engine was designed as a core for the software architecture of target-oriented application, in which the user requirements are not clear but have the highest priority.
The fourth paper has been created by Joanna Ratajczak from the University of Economics and Business in Poznan, Poland, and concerns “Recruitment and motivation of Generation Z in the face of the employee's market”. The study involved 390 students in Leszno, Poland. The author has proved that despite the low level of unemployment and the problem of finding people willing to work in Leszno in 2018, employers did not fully respond to the expectations of young people. The employee market in the opinion of the employees themselves, especially in smaller towns, where a low unemployment rate is observed, does not translate into improved employment conditions.
The last paper entitled “Statutory regulations and corporate governance standards in cooperative banks” has been written by Mikołaj Jalinik from Bialystok University of Technology, Poland and Krzysztof Łukaszuk from the Cooperative Bank in Bielsk Podlaski, Poland. According to the authors’ research, although the regulations of the European Parliament duplicate the solutions already existing on the domestic legal grounds in some areas, they are part of the general policy and practice of developing financial sector regulations, unifying requirements for financial institutions and raising standards in the area of corporate governance. In the case of cooperative banks, doubts arise as to whether, being entities different from commercial banks, implementing solutions (including those of the European Parliament) under pressure from the regulator, the results obtained will prove to be adequate to the specificity of the entities covered by it.
dr hab. Piotr Lis, prof. UEP
“Research Papers in Economics and Finance” is a quarterly journal, with the second issue this year containing five research papers. The first and the second paper were presented during the 10thEnvironmental PhD Candidates’ Conference “Economy. Technology. Society.” (GTS), organised by the Heads of Doctoral Studies together with the PhD Council of the Poznań University of Economics and Business.
The purpose of the conference was to share knowledge and expertise in the areas of economy, technology and society between PhD Candidates and young academics from the University and from other economic departments in Poland. The conference was held under an honorary patronage of: the Rector of the Poznań University of Economics and Business – Professor Maciej Żukowski, PhD; the Vice-Rector for Research and International Relations of the Poznań University of Economics and Business – Professor Elżbieta Gołata, PhD; the Polish Economic Society Branch in Poznań and the Poznań Society for the Advancement of Arts and Sciences. During the conference, there were also workshops with the following business practitioners: Chias Brothers Europe Sp. z o. o., Franklin Templeton Investments Poland and the Wielkopolska Province Development and Promotion Fund.
Five research papers were published in this issue of the journal. The first one focuses on changes in the employment structure caused by the development of automation technologies. The second article presents the role of the social responsibility of the state in shaping the reputation of the largest donors of official development assistance. The third article describes the theoretical background of motivation and market statistics of distressed investments on global mergers and the acquisitions market. Another article focuses onthe efficiency of the R&D sector in the European Union countries. The final article presents the interactions between tax sheltering and other instruments of fiscal policy in Nigeria.
Yours faithfully, Katarzyna Woźniak, M.Sc. – Chair of the PhD Council PUEB
The first article refers to the mechanism for assessing the competitiveness of an industrial enterprise in the information economy. It brings up the instrumental approach on how to measure competitiveness of an industrial company involved in technological progress and market competition. The paper presents a comparative evaluation model adapted to the industrial area of business, especially focused on the Ukrainian economy.
The next work focuses on complexity and deals with a multilevel model of AHP being non-subjective and reducing the uncertainty instrument. The author aims here to answer the question of whether the balance between economic viability, social responsibility and environmental sustainability serves the purpose of balanced development of an enterprise. The paper includes decomposition driven by hierarchic understanding of the concept and structure of balanced development.
This issue of the journal also presents an insight into the mechanism of public-private partnership implementation to coal mining enterprises in Ukraine. The syndicate form of this business branch and producers-consumers relationships are considered as well. The authors focus on the effectiveness of sales management policy in a body of this partnership and suggest extending amendments to the current laws and regulations.
Another work discusses the issue of an agricultural chain of production. The article entitled “Development of an Agro-Food complex on the basis of economic integration” includes qualitative and quantitative associations of determinants serving a way to understand complexity of the economic system. Conclusions are driven mostly by the unstable energy supply and ecological crises on the planet, having previously addressed arguments on agro-food complex development for energy production.
Last but not least, the next article is widely associated with the energy problem and focuses on investing in building the energy cluster in Ukraine. However, the authors have been far more concerned with exploring this issue by the financial aspect laid in attracting funds mostly in the form of municipal bonds and compensatory financing on the basis of tax.
Yours faithfully, dr hab. Agnieszka Ziomek, prof. nadzw. UEP – Member of the Editorial Committee
The first paper entitled “Strategic planning for Sustainable Development from the standpoint of economic security оn the example of the railway transport of Ukraine” focuses on the concept of strategic planning of the sustainable development combining. Authors Yurii Kharazishvili and Andrii Shevchenko propose the original concept of strategic planning of the sustainable development of the country, regions or other types of economic activity from the standpoint of the economic security. They introduce a definition of the structure of sustainable development which subsequently they apply to identify and estimate the level of sustainable development and the imbalances at the constituent level. As a case study, they discuss the railway transport in Ukraine.
In the second paper “The outlook for the development of the electric car market in Poland until 2025 compared to the Norwegian market”, Piotr Dembiński discusses the development of electric cars in Poland in comparison to Norway. To determine the possibility of developing and introducing this technology in Poland, the Author applied two measures: Weight Attractiveness Scores and Three-tiers of Noncustomers. According to his analysis, Poland is far away from implementing this technology on a significant level. The analysis shows that national policy is heading in the right direction. However, it is still not sufficient to become a leader, or a significant member, in implementing this technology, compared to Norway. The Author states that even though some electric cars in Poland will grow at a very rapid pace, the dissemination of this product on Polish roads is highly unlikely until 2025. As he concludes, the role of the state in the successful implementation and acceptance of this technology is crucial. Based on the Norwegian case, where the government created a great climate for the development of electric cars, the main recommendation for the Polish government is to offer several facilities and tax breaks.
The aim of the next paper “Development of the educational environment through the formation of Private Corporate Universities”, written by Sergey Kravchenko, is to analyse experiences of establishing and functioning private corporate universities. They are an important element not only of the educational system but also of the social infrastructure. The Author lists potential benefits of the interactions and co-operation between an individual, a private corporate university and companies in a region. As he outlines, establishing private corporate universities could contribute to the intensification of the corporate social responsibility practices, which is one of the possible ways to promote the development of an educational environment for life-long education.
Next two papers focus on banking sectors from different perspectives. Krystyna Nizioł, in her paper “The control of the banking sector concentration in Poland – Legal and economic aspects. Selected Issues”, deals with an important economic problem of market monopolisation in the banking sector in Poland. She aims to analyse selected legal and economic issues connected with the control of bank concentration in Poland. In particular, she discusses the methods of measurement and aims of the control of the concentration applied by the Polish antitrust authorities (UOKiK) with respect to the financial regulations. Theoretical and legal discussions are followed by a statistical description of the scale of the concentration in the banking sector. In conclusion, the Author evaluates that the Polish antitrust authority has sufficient legal instruments to control mergers and takeovers which resist the monopolization of the financial market.
Finally, the fifth paper “Current trends of development of HR Management in the bank sphere of the Russian Federation”, written by Nataliia Vodolazskaya, focuses on the personnel policy in the bank sector, highlighting its crucial role in the creation of competitive advantage. As she writes “The bank wins and succeeds if it not only is accurately organised, but also has the competent, devoted and disciplined personnel capable of being reconstructed and retrained quickly.” She analyses Russian commercial banks and the development of HR management in them. Based on that, she discusses the perspectives of developing highly skilled personnel in banks which could cause higher financial performance.
Yours faithfully, dr hab. Katarzyna Szarzec, prof. nadzw. UEP – Member of the Editorial Committee
The article entitledThe Impact of Monetary Policy Announcements on Stock Market Index in Poland by H. Kołodziejczyk examines whether the NBP’s announcements have an impact on either stock returns or volatility and whether the content of such communiqué (either interest rate cut or raise) matters.The results suggest that, in fact, interest rate changes do have a significant impact on both returns and volatility. However, the reactions to news are different with respect to the type of announcement.
The article entitled Exchange rate volatility and trade: the case of Ukraine by O. Popova, J. Jablinski and T.M. Lukashenko concerns the subject matter ofthe exchange rate volatility and its influence on international trade on the basis of Ukraine. Even if there has not beenany significant visible correlation between trade and the exchange rate volatility, it does not mean that there is no relationship between these two factors, because there are a lot of factors which affect the level of trade.
The article entitled Potential fiscal and non-fiscal consequences of introducing a poll tax in Poland by E. Małecka – Ziembińska and Ł. Ziębakowski verifies the claims made by the supporters of the introduction of a poll tax in Poland in relation to its amount. The poll tax would not gain acceptance in Poland nowadays. Potential consequences of this change must be considered not only in the fiscal, but above all – social context. The rates of the poll tax assessed on the basis of the concept of its followers are regressive. This is a disqualifying factor of this tribute, because it would bring a number of undesirable consequences to the economy and society.
The article entitled Capital outflow in the countries exporting oil and gas as a deterrent to the economic development by Y.Y. Finogenova, D.V. Domaschenko, О.V. Boyko, V.A. Krylov, touches upon the subject matter ofcapital outflows under the financial account of the trade balancein some countries exporting oil and gas. The main reasons for capital outflows lie in the specific features of the national law concerning foreign exchange as well as in the psychology of the behaviour of the economic agents carrying out activities on the territory in question. The capital outflow is caused not only by a higher exposure of business operations, corruption, weak competitiveness of the economy etc. The authors have demonstrated that the most vulnerable countries exposed to the highest level of the capital outflow risk are the countries with hybrid exchange rate regimes, in contrast to the countries adopting hard exchange rate pegs or the floating exchange rate regime.
The article entitled Complex assessment of plant growing development in regions of Ukraine to work out recommendations for institutional changes in agriculture by N. Shmygol presents the prospects and trends of crop production development in Ukraine, as well as the methods and ways of supporting this industry by the state.The author has made an appropriate ranking of Ukraine regions according to the area of sown crops in Ukraine, based on which four sectors of Ukraine areas have been allocated and grouped by crop production development level.The article goes on to give the recommendations for decision making supporting investments and state aid for each of the selected sectors to further develop crop production in the regions of Ukraine.
The article entitled The effectiveness of using electric cars for reducing the CO2 emissions in Poland by Mikołaj Walkowiak concerns the estimation of indirect CO2 emissions associated with using electric engines in Poland. The current structure of the Polish power system, which serves as the supplier of the prime mover for electric cars, uses mainly the conventional (high-emission) sources of power. Using electric cars becomes an indirect cause ofthe emission of pollution into the atmosphere. The author of this study compares the influence of electric cars on the environment in relation to adequate parameters which characterise cars with combustion engines. Special attention has been paid to: the specificity of the Polish system of production and distribution of energy, energy consumption and the level of emissions in the cars under analysis. The author has also presented in the article his own methodology for estimating the indirect emissions of exhaust generated by electric cars with reference to the area in which the energy is taken.
Yours faithfully, dr hab. Piotr Lis, prof. nadzw. UEP, Editor in Chief
The article entitled The economic and environmental productivity of agriculture in the process of development by J. Staniszewski reviews the economic theories which describe the relationship between agricultural productivity growth and economic development. The review proves that improvements in the productivity of agriculture is both a precondition for economic development and its catalyst. The article also describes a negative impact of agriculture industrialization on the environment. The present process of extending the traditionally understood economic sense of productivity to ecological aspects is also explained. Finally, calculation of environmental productivity is presented as a still unsolved problem.
The article entitled Income inequality in Israel between 2003 and 2014 by B. Tzarfati aims to describe the distribution of income in Israel and provide solutions for a more equal distribution of income. The author also discusses the impact of income inequality on economic growth. Empirical studies show the fact that the increase in inequality measured by the share of the highest income is positively related to the economic growth. While in the case of the overall dispersion of income (measured by the Gini coefficient), the results of empirical studies are inconclusive.
The article entitled Ukrainian perspectives of using world experience in investing in energy innovations by D. Lazarenko and I. Krutogorskyi presents the world economic trends of alternative energy. An analysis of international programs and innovative projects that are implemented and used in the energy sector is introduced. Conceptual proposals and innovative research in the field of alternative energy are represented. The authors also suggest ways of formation of effective energy management and rational energy policy.
Yours faithfully, dr hab. Edyta Małecka-Ziembińska, prof. nadzw. UEP – Member of the Editorial Committee
The article entitled Proposal of alternative typology of social economy by A. Waligóra presents an alternative proposal of division in social economy, focusing on the social functions of its entities – social enterprises. The proposed solution serves to fulfil the dominant discourse of the social economy in new ways of thinking about the reasons and motivations connected with creating social enterprises. The article’s conclusions are considered in the light of Piotr Sztompka’s social capital theory and the theory of social cost.
The article entitled Investigation of the social factors of development of society in the territories with transforming environment by O. Kvilinskyi, A. Mieshkov and I. Bondaryeva aims at identifying the main social factors that affect the vital activity of society at the present stage of development of territories which have unstable socio-economic and political environment. The authors have developed a methodology of an expert assessment of the importance of the factors of forming the system of vital social activity. A set of recommendations for the coordinated impact on the economic and social processes in the conditions of transforming the market system have been proposed as a result of the research.
The article entitled Family Firms as a potential source of growth for the Warsaw Stock Exchange by S. Filipczak discusses the possibility that family firms will step into the state’s shoes and become a more meaningful source of new issuers for the Warsaw Stock Exchange. The paper identifies the reasons for a possible increase in family firms listings on the WSE as well as key elements for that to happen. The author notes that an increasing number of family firms are big enough to meet the WSE requirements, and thus a wave of succession in family enterprises is expected in the coming years.
The article entitled Theoretical Framework for Stock Pricing Process based on Micro-Economic Decision Model by V. Kanagov introduces a theoretical framework for a new model which aims at avoiding the problems of CAPM, the most common model for asset pricing, and keeping its advantages, therefore allowing universality of asset pricing. It is based on the micro-economic decision model, involving an expected value and dividing a stock price to objective and subjective prices. As a result, rational based individuals, just like individuals with non-rational factors, may use the model to calculate a future price stock in exactly the same way.
The article entitled Analysis of the EUR/USD exchange rate in binary-temporal representation by M.D. Stasiak deals with the topic of exchange rates by employing an algorithm that transforms the exchange rate represented by tick data into a binary string. Each course change equal to a given discretisation unit is assigned a binary value indicating the direction of the change. The main goal of the presented research is to verify the existence of any dependences between the duration of a change and the probability of future direction of the change. The EUR/USD analysis performed by statistical tests and presented in the article suggests relations between the direction and order of historical data and the direction of a future change.
The article entitled The main priority of achieving resource safety of agricultural production by Y. Pushak, M. Orobchuk and O. Marchenko touches upon the subject matter of resource safety in agriculture, in particular the maintenance of land resources through increased use of organic fertilizers, the optimization of croplands and strengthening legislation and ecological awareness. The authors conclude the paper with recommendations.
Yours faithfully, dr Hanna Kołodziejczyk - Member of the Editorial Committee
In the paper entitled Housing needs, choice and responsibility as three concepts to understand the role of housing markets and government intervention in Israel the author, Avi Perez, explores and analyses the concepts of need, choice, and responsibility in the context of the Israeli housing market. These concepts are quite important for the understanding of the interactions between households and government intervention on housing markets. In recent years the Israeli government has limited its involvement in the free housing market as well as in public housing. This has resulted in a significant increase in housing prices since the 2008 subprime crisis. These changes have forced the government to redefine the housing needs and government intervention while maintaining the freedoms and households’ abilities to make their own choices. In the conclusions, the author suggests that the government should limit its intervention and allow individuals to define their own needs, to ensure a genuine freedom of choice and to express the responsibility that comes with it.
The article entitled The system of the Treasury in Ukraine: actuality and prospects of development by Eleonora Kurganskaya presents findings from an analysis of the current state of managing financial resources in the Ukrainian system of the Treasury. The author of the article touches upon several unresolved issues, claiming that the system of the Treasury undoubtedly requires some changes. The introduction of the Treasury Single Account provided an opportunity to have information on the budget. The State Treasury has introduced changes in the institutional structure and legal relations between all the participants of the budget process. Research has shown that free funds have increased to a great extent.
Yours faithfully, dr hab. Piotr Manikowski, prof. nadzw. UEP - Member of the Editorial Committee