To What Extent Does Convergence Explain the Slowdown in Potential Growth of the CEE Countries following the Global Financial Crisis?

Stefański, Maciej

doi:10.1080/00128775.2021.1883443

Cited by 3 publications

(5 citation statements)

References 67 publications

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“…Rethinking powerful unilateral dependencies is thus quite timely, especially considering the FDI-based path has now been generational: its features are clear to see, and its limitations/ exhaustion are increasingly apparent. Moreover, exhaustion has set in; new advantages are increasingly hard to come by, while early signs of problems associated with a mature stage in technological life-cycles are visible: a decrease of novelty and variety, reduced seeking behaviour, and growing reliance on exploiting the increasing returns of a stable mode of production (Grela et al 2017;Galgóczi, Drahokoupil 2017;Kalotay 2017;Szent-Iványi 2017;Myant 2018;Stefański 2021).…”

Section: Discussionmentioning

confidence: 99%

FDI-based regional development in Central and Eastern Europe: A review and an agenda

Gál

Lux

2022

TéT

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This review article reflects on thirty years of FDI-dependent development in Central and Eastern European regions (with a special emphasis on the Visegrad countries). The modernisation potential of FDI-led European integration is examined from a critical and comparative perspective. The authors argue that the FDI-led “Dependent Market Economy” (DME) model has fallen short of its anticipated modernisation potential, while other, potentially lucrative development alternatives have been neglected. While early-stage benefits were considerable, the development model now faces signs of exhaustion and an increasing number of contradictions. The paper builds on previous original research by the authors, as well as a review of international academic literature to describe the limitations and trade-offs of the DME development model, followed by an overview of three alternate growth paths for the future. In the macro-level perspective, it is argued that long-term catching-up rates across Central and Eastern Europe over 30 years have been limited, and signs of slowdown are increasingly apparent. Likewise, FDI does not seem to contribute significantly to domestic capital accumulation. On the micro-economic and regional levels, limited income effects are coupled with intangible risks and trade-offs. Strengthened socio-economic and territorial disparities ultimately pose problems for both metropolitan core regions and peripheries, while low capital embeddedness and limited spillovers denote weak territorial integration. It I advanced that the DME model may exacerbate future structural crises and exogenous shocks, and finally, that a development model dependent on exogenous capital structures shows curtailed capability to explore, learn, and benefit from beneficial growth opportunities. The paper makes the case that, while the DME model cannot be realistically dismantled in the foreseeable future without considerable risk to the CEE economies, a comprehensive diversification agenda should seek to gradually reduce its risks and foster alternate sources of growth. Embedding foreign capital into local economic networks represents one possible compromise, coupled with growing supplier networks and anchoring value creation in business services as well as innovation and R&D activities. However, alternate sources of development are also to be explored. The new revival of industrial policies in Europe and across the world opens opportunities before previously ‘inconceivable’ state-led development initiatives, including support for the emergence of new national champions. Last but not least, a strengthening domestic SME sector with competitive medium-sized enterprises and locally embedded production networks should serve to strengthen entrepreneurial ecosystems in domestic capital accumulation and value creation. Together, these and similar steps have the capability to shift the balance from the DME model towards a more competitive and resilient “successor model” where the interests of FDI and domestic development can be fruitfully reconciled.

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Section: Discussionmentioning

confidence: 99%

FDI-based regional development in Central and Eastern Europe: A review and an agenda

Gál

Lux

2022

TéT

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“…The vulnerability levels are closely linked to the exogenous characteristics of the International Accounting Standards that are applied to the entities that are listed on the analysed stock market. This hypothesis was supported by the work of [9,12,13,15,19,25,44].…”

Section: Hypothesis 2 (H2)mentioning

confidence: 67%

“…There is a direct dependency relationship between the level of vulnerability and exposure to the economic recession. This hypothesis was defined in accordance with the approaches of [8,17,20,21,[23][24][25]50].…”

Section: Hypothesis 3 (H3)mentioning

confidence: 99%

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Modelling the Vulnerability of Financial Accounting Systems during Global Challenges: A Comparative Analysis

2022

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In times of crisis, the vulnerability of global financial markets can be considered as an element in the analysis of economic stability and sustainable development, which also indicates significant differences in the recognition of economic capital. We aimed to analyse the convergence of accounting systems within a global context under the influence of economic crises and uncertainty, which was based on an observational study of the major financial markets in Paris, New York and Shanghai during the period of 2015–2022. A dedicated database was built using official information. The main objective of the study was to develop a volatility matrix of the gravity development model in relation to the characteristics of the accounting systems on which economic capital recognition is based. The proposed model highlights regional disparities according to relevant statistical grounds and quantifies the volatility issues that are induced by the application of economic capital recognition rules on the global model. The methods that were used consisted of a critical study of the literature to substantiate the research hypotheses and an application of analytical procedures to define, test and validate the proposed statistical model. The usefulness of the model is all the more important because its development took into account the pandemic period and the outbreak of the military conflict in Ukraine, which helped to create pragmatic tools to ensure the faster convergence of accounting systems and limit the spread of vulnerabilities through open transactions on the global market. The results of the research can support decision makers in accessing regional financial markets and achieving a better convergence of accounting information. The study and its approach were new and original and the results represent a good base for accounting policy adjustments from a global perspective.

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“…Z badań [Stefański, 2020] wynika, że do istotnych przyczyn spowolnienia gospodarczego w Europie Środkowo-Wschodniej w następstwie globalnego kryzysu finansowego należały m.in. konwergencja, spadek wskaźnika inwestycji do PKB oraz niższy wzrost łącznej produktywności czynników wytwórczych.…”

Section: Teoretyczne Podstawy Badania Zależności Między Zmianami Strukturalnymi a Wydajnością Pracyunclassified

Structural Change and Labour Productivity in Central Europe

Szewc-Rogalska¹,

Jakiel²

2021

GNPJE

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Streszczenie: Celem artykułu jest określenie natężenia procesów zmian strukturalnych oraz identyfikacja kierunku i zakresu ich oddziaływania na wydajność pracy w krajach Europy Środkowej w latach 1995-2018. Zastosowano metodę shift-share i przeprowadzono analizę tych zależności na poziomie dziewięciu sektorów. W większości badanych krajów duże znaczenie dla wzrostu wydajności pracy miały przesunięcia siły roboczej do sektorów o relatywnie wysokiej wydajności pracy. Największy wpływ zmian strukturalnych na stopę wzrostu wydajności pracy stwierdzono w przypadku gospodarki polskiej, charakteryzującej się relatywnie najniższym poziomem rozwoju gospodarczego spośród badanych krajów. W wybranych krajach Europy Środkowej najwyższa wydajność pracy występowała w sektorze high-tech KIS, natomiast najwyższa dynamika wydajności pracy -zazwyczaj w przemyśle high-tech. Sektory stymulujące wzrost wydajności pracy miały jednak relatywnie mały udział w zatrudnieniu. Z tego względu udział tych sektorów w zagregowanym wzroście wydajności pracy był znacznie mniejszy niż usług o niskim nasyceniu wiedzą czy też przemysłu low-tech.

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To What Extent Does Convergence Explain the Slowdown in Potential Growth of the CEE Countries following the Global Financial Crisis?

Cited by 3 publications

References 67 publications

FDI-based regional development in Central and Eastern Europe: A review and an agenda

FDI-based regional development in Central and Eastern Europe: A review and an agenda

Modelling the Vulnerability of Financial Accounting Systems during Global Challenges: A Comparative Analysis

Structural Change and Labour Productivity in Central Europe

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