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Volume XVII, Winter, Issue 4(78), 2022
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This paper uses an event study analysis to assess how stock prices in the Philippines have reacted to domestic monetary-policy changes using data at a daily frequency from 2017 to 2022. A major contribution of this paper is the construction of a monetary-policy surprise measure for the Philippines, as the difference between the actual change in the monetary policy rate and the change anticipated by professional forecasters. My results are consistent with the literature, suggesting that unanticipated monetary policy changes exert a significant influence on stock prices in the Philippines. Overall, I find that an unexpected increase of 25 basis points in the monetary policy rate increases stock prices by about 1.09% on average. These results are robust to the inclusion of additional control variables in the baseline regression model, such as the implementation of restrictions to economic activity to curb the spread of the COVID-19 outbreak or revisions to macroeconomic forecasts released concomitantly with the monetary-policy rate announcement.
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The current dynamics of the global political economy are depressing: A multidimensional climate crisis is taking on speed; new pandemic waves with unknown lethal consequences are building up; National capitalism – bent to become a new form of fascism – raises its head and the return to military conflict solution makes a 3rd World War possible. But despite these gloomy perspectives it remains true that mankind so far has mastered all difficulties as soon as it became aware of them. Our species in principle has all means – physically and intellectually – to let a new Atlantis rise. And the guidelines how to overcome the above mentioned three crises, are delivering the blueprint of the organizational design of such a new Atlantis.
This paper explores this exciting hypothesis. The first goal to reach clearly is to avoid a 3rd World War, which means to defeat the fascist movements in the world. As the 20th century showed, fascism developed out of nationalism, which in turn was nourished by a nationwide controlled class rule, a form of military (and police) governed capitalist exploitation. This currently so successful form of capitalism (China, Russia, USA) is defined as ‘National Capitalism’. It corresponds to what I called disintegrating capitalism in (Hanappi 2019a). Being victorious, to have overcome national capitalism, means to have been able to establish a global democratic government. To get there the progressive opposition to National Capitalism has to develop theory, strategy and practice. As described in (Hanappi 2020) a certain degree of division of progressive labor activities – the emergence of a global class of organic intellectuals[1] – will be needed. Only with global governance the other two crises, the climate crisis and the future global health crises, can be overcome. Since they are already here and help to make the impasse of capitalism, of national capitalism, become very visible to every human individual, we already can find ways of global coordination to prevent them. In doing so, success is possible and can yield into the necessary optimism, an attitude which is necessary for the emotional basis of any progressive, humanistic movement. A man-made Atlantis can rise - not beyond an ocean but here on earth. We just have to unite our intellectual forces and to continue the century-old struggle for emancipatory social evolution[2].
[1] In explaining Gramsci’s concept of the organic intellectual Perry Anderson writes: ‘Gramsci argued that intellectuals are absolutely necessary for the proletariat, both in historical periods when it is a class in-itself and in those when it is a class for-itself. Without intellectuals the proletariat could neither come to power, nor consolidate or develop its power after winning it.’ (Anderson 2016, Kindle-Positions 1971-1982).
[2] Thomas Morus wrote his ‘Utopia’ in 1516. -
Small and medium-sized enterprises are a special type of enterprise. They are characterized by unity of ownership and management, personal responsibility for business activities. Business entities today operate in an increasingly dynamic and complex environment. Small and medium-sized companies are particularly affected by rapid economic, political, social and technological changes. The development of the small and medium-sized enterprise sector depends on external factors that individuals cannot influence, as well as internal factors - determining the opportunities available to the entity and directly influenced by it (e.g., in terms of its resources, level of innovation, efficiency and effectiveness of management). Companies in the SME sector face many barriers in their operations that prevent them from growing. One such barrier may be difficult access to external funding. Raising capital to start and run a business is a very important problem for today's small and medium-sized businesses. The raising of capital, and consequently the handling of that capital, are closely related to development opportunities. Small and medium-sized businesses are an important determinant of the economy in Poland, but also in EU countries and around the world.
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It is not easy to numerically simulate the path to a steady state because there is no closed form solution in dynamic economic growth models in which households behave generating rational expectations. In contrast, it is easy if households are supposed to behave under the MDC (maximum degree of comfortability)-based procedure. In such a simulation, a household increases or decreases its consumption according to simple formulae. In this paper, I simulate the path when households behave under the MDC-based procedure, and the results of simulations indicate that households can easily reach a stabilized (steady) state without generating any rational expectations by behaving according to their feelings and guesses about their preferences and the state of the entire economy.
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Analyzing the literature, which indicates the high importance of financial surplus in investment expenditures, which are essential in creating a competitive advantage, and having in mind that with GDP growth a decreasing trend can be observed in the sphere of investment expenditures in Poland, an analysis was made of the sources of financing investment expenditures of enterprises and the financial result of entities with domestic and foreign capital operating in Poland. This made it possible to identify the situation of the Polish economy over the years in terms of the structure of investments and to try to answer the question of whether the financial results achieved by entities with domestic capital are sufficient to make the investments necessary to maintain a high position in the competitive environment.
As a result of the analysis, it was found that entities with domestic capital, representing a majority of around 80 % of the total balance sheet contributors in Poland, generate only 60% of the gross financial result, while less than 20 % of foreign companies have a financial result exceeding 40%. The methods used include an analysis of the literature, data contained in statistical databases (CSO and Eurostat). The data presented cover the period 2005-2020, mostly in the form of annual aggregates for Poland.
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This paper decomposes South African sovereign yields into expectations of future average short-term rates and a term premium. We estimate that the term premium in South African sovereign bonds is lower than after the onset of the COVID pandemic, but still meaningfully higher than its historical average. We also show that the steepening of South Africa's curve over recent years can be explained by an increase in the term premium.
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The Southern African Development Community (SADC) has continued to experience an unprecedented increase in foreign direct investment (FDI) inflows for the past three decades. Evidence of their quantitative impact on the economy is still quite mixed. We use panel data methods on data from the (SADC) for the 1980–2020 period, where our results show that FDI has a positive and statistically significant effect on economic growth; thus, agreeing with some work that has been done on the community and in Sub-Saharan Africa. Our study calls for the development of human capital, the promotion of market liberalization, the improvement of the financial sector and the need for policy measures that prioritize productive investment that is supportive of the local private and foreign sectors; the latter provides positive spillovers to other sectors.
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The main aim of the article is to identify and define the scope of contemporary strategies of companies recovering from the pandemic crisis and their further actions in a post-crisis situation. The COVID-19 pandemic accelerated the digital revolution in the behavior of market players, especially consumers around the world, as previously, the increase in their use of various digital tools was gradual, and due to the crisis, it became abrupt. The strategies of the market situation as well as the strategies of forecasting and dealing with the future have begun to be implemented by many Polish and foreign enterprises.
Hence, the objective of the paper is an attempt to identify the initial stage after the pandemic as well as the further scope of the development of companies’ post-covid adaptation strategies. The background for the problem is trends evoked by differences in companies’ actions after the pandemic as well as proposals for strategy building methods. What should be also mentioned are adaptation strategies used by companies during the pandemic i.e., digital winners, risk-takers, late-comers and losers. The research problem is what and how adaptation and post-pandemic strategies are implemented according to their scope (wide-ranging - black swans and gray rhinos) and the dynamics of change (purple cows and green frogs). Therefore, it is worth presenting practically implemented adaptation strategies based on the cases of Polish and foreign companies, their first step forward, i.e., returning to the growth path, albeit under different conditions. The applied research method here is the analysis of case studies.
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Studying the level of economic growth remains a topic of discussion among economists and policymakers. As economic growth further impacts the socioeconomic development of the country. The present study has investigated the impact of innovations and financial development on economic growth in case 58 developing counties from 2000 to 2020. To analyze the stationarity of the variables LLC, ADF-Fisher, IPS, and PP-Fisher unit roots have been used.
This study uses a panel autoregressive distribution lag co-integration approach and a vector error-correction model for short-run dynamics of the model. For investigating the causal relationship among the variable’s variance decomposition and impulse response function have been applied. The outcomes of the study show that innovations, availability of physical capital, and trade have a positive and significant impact on economic growth. Financial development has significant but inverse influence on economic growth. It is suggested that for higher economic growth, developing countries improve the threshold level of financial development and use an innovative process of production. Urbanization and inflation hurt economic growth. Thus, developing countries should promote a stable inflation rate with liberalized trade, innovation, and physical capital to enhance economic growth.
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The article aims to determine the local government units’ participation in the implementation of European Union (EU) funds from the 2014-2020 financial perspective in Poland and its assessment. The paper uses data covering eligible expenses of projects carried out. The analysis of secondary data on the European Funds Portal, literature analysis and program documents were used. The analysis confirms the continuing high participation of local government units in the implementation of the next EU financial perspective. However, the variation in local government units (LGU) participation by program type is evident. The units dominate as beneficiaries of regional programs, with little participation in central programs. The key importance of territorial self-government units for the implementation of regional programs was confirmed, as well as the high share of the public sector in the projects implemented. This was also a trend in earlier programming periods.
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While the 1990s and early 2000s were seen as a golden age for Global Value Chains, the 2010s have witnessed a series of crisis that shacked the political and institutional foundations of global trade. After years of neo-liberal trade policies, trend is now towards neo-realist mercantilism and trade politics.
The COVID-19 pandemics and the rise of geopolitical tensions are redefining and perhaps reversing what have been the drivers of world trade since the end of the Cold War in 1989. Geopolitical and institutional uncertainties increase the chance of unpredictable or unforeseen event disrupting entire international segments of the value chain, with potentially extreme consequences. When fat-tailed black-swans run around like headless chickens, disruptions are unpredictable. Yet, understanding the main changes affecting the geo-politics of trade and the possibilities of safeguarding a functional global trade governance is expected to reduce the risks and help future managers preparing for new business paradigms.
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The great scientific development and the great technology, which turned the globe as a whole into a small village, were not the product of a moment or a coincidence, and this great development did not come out of an empty, but was thanks to a considerable and difficult effort, and the enormous contributions of many scientists, inventors and researchers from various regions They have spent their lives studying, researching, contemplating, serving science and various sciences, with sincerity and dedication to advancing themselves and for all of humanity. Without these scientific revolutions and the great effort, they have made, we would not have achieved this great scientific and technological progress which our current era is witnessing at all levels. In this article, using a database that includes 104 countries during the period 1996 -2018, we seek an answer to the following question: Do researchers stimulate economic growth?
