Analysis of the Cobb-Douglass Production Functions as a Tool to Investigate the Impact of FDI Inflow on Gross Domestic Product Value in Poland in the Period 1994-2012

The purpose of this paper is to analyse the impact of foreign direct investments net inflows on changes in GDP value in Poland in the period between 1994 and 2012 with the use of the Cobb-Douglas production function. The paper consist of five parts. Parts I and II present some aspects of the FDI influence on economic growth from the theoretical and empirical point of view. Part III defines conditions indispensable for the positive FDI impact on the economy of the host country. Part IV outlines changes of FDI flows in Poland in the period of 1994-2012. Part V includes the main assumptions of the Cobb-Douglas production function and an estimate of changes in GDP value for Poland in the period 1994–2012 with the use of the VECM. The factors significant for economic growth are also identified, including the significance of the net FDI inflows. Eventually, the effect of gross fixed capital formation, employment, FDI net inflows, exports and R&D on changes in the GDP value are determined.Aneta Kosztownia

Changes in the quality of bank loan portfolios in EU countries – with the particular case of Poland

As non-performing loans (NPLs) can cause monetary crises that may turn into financial crises affecting an entire economy, monitoring them is very important. If NPLs are not identified and recognized efficiently, both in terms of speed and scope, NPL resolution effectiveness is undermined, which in turn will have negative effects on the banking sector and ultimately on GDP growth.The main aim of this article is to identify changes in the quality of bank loan portfolios in European Union (EU) countries in 2009–2021, using an example of the Visegrad Group (Czech Republic, Poland, Slovakia, Hungary) as well as France and Germany. Keeping in mind the fact that the share of loans to households in EU portfolios is approximately 60%, it has a significant impact on the share of non-performing loans (NPL) in a bank’s entire portfolio. Therefore, it is important to identify macroeconomic determinants influencing the creditworthiness of households and their loan servicing capacity.The specific aims are, first, to present the differences in NPLs, debt servicing costs, and the structure of loan portfolios in the selected EU countries. Second, to identify countries with high-quality portfolios and those undertaking restructuring. Thirdly, to examine the determinants of NPL for household loans based on the example of Poland, i.e., a country considered representative in terms of the average level of NPL and the portfolio structure in the group of countries studied.This chapter presents the changes of NPLs, debt service ratio, and household loans in selected EU countries in 2009–2021. Moreover, an NPLs econometric model for Poland is constructed, which considers the main factors determining the creditworthiness of households, i.e., macroeconomic factors, financial standing, and debt servicing costs. Tools such as the VECM model, the variance decomposition and the impulse response functions are used. The results for Poland confirm that the NPLs ratio for households was the strongest explanation of previous changes in own NPL, consumption and real wages in the household sector in 2009–2021

What should the optimal financial structure of FDI inflows to Poland be for stimulating growth processes?

The article aims to answer a question what should the optimal financial structure of FDI inflows to Poland be for stimulating growth processes. The study on the dependence between financial components of FDI inflows and GDP for Poland covers the period 2004: Q1–2019: Q4. Results of the VAR/VECM model and forecast error variance decomposition indicated that in the optimal (growth-enhancing) structure of FDI inflows the share of equities and the reinvestment of earnings should be maximised

Verification of the Relationship between FDI and GDP in Poland

Abstract The paper analyses the impact of the factors of production on economic growth in Poland in the years 1992–2012, with particular focus on the impact of foreign direct investment (FDI), and strives to verify whether a causality relationship occurred between GDP and FDI, i.e. whether high GDP dynamics attracted FDI inflows and whether this investment contributed to GDP growth. The Vector Error Correction Method impulse responses and variance decomposition analysis confirmed the bi-directional relationships between FDI and GDP in Poland. However, the impact of GDP on attracting FDI inflows to Poland is stronger than that of FDI on GDP growth. Polish developmental policy should concentrate on three essential determinants (pillars) of growth, namely employment growth, attracting FDI (with emphasis on improvement in the type of inflowing investment), and increasing the value and productivity of domestic investment

Liabilities of local government units in Poland : identification and analysis of diversification factors

PURPOSE: The article aims to identify the factors that influence the levels of debt in Polish local governments. Specifically, we look at the structure of local units' revenue and expenditure and try to determine which of the characteristics have a significant impact on debt levels.DESIGN/METHODOLOGY/APPROACH: We divide our analysis into three types of municipalities, urban, rural, and urban-rural municipalities. We find that each of this type of municipality has different determinants of debt level.FINDINGS: This article provides a solid recommendation for researchers and policy makers to carefully derive conclusions from analyses made on the total population of local units, as their heterogeneity may significantly impact the research results. Therefore, policy recommendations and actions should not be homogeneous across all types of local governments.PRACTICAL IMPLICATIONS: The article identifies income factors of local budgets that are statistically significant and influence positively or negatively the size of the public debt of local government units. Practical aspect of the paper means that results can be used to manage local government units or assess their stability by external agencies.ORIGINALITY/VALUE: The obtained results are in line with the previous research results and extend the knowledge in the stability and indebtedness of local government units. The study carried out allows to extend this knowledge and proves that the indebtedness of local government units is also affected by the structure of income of these units.peer-reviewe

Zrównoważone strategie rozwoju i konkurencyjności w sektorach bankowych krajów Unii Europejskiej

The aim of the study is to present the evolution of the development and competitiveness strategy in the EU banking sector under the implementation of sustainable development regulations and reporting obligations. The results of the analyses indicate that legal regulations have now and will have a significant impact on changes in the development and competitiveness strategy of the banking sectors in the EU. Due to the multidimensionality of ESG factors, banks are making changes in their processes, strategies, and business models thoroughly and in many areas. They incorporate ESG factors into existing risk management systems and organizational structures, strategies, and building competitive advantages. It is expected that there will be a reduction in the financial capacity of carbon-intensive activities and an increase in green projects. The CSRD and ESRS have a significant impact on the strategies for creating value and competitive advantage. Global leaders in sustainable banking are banking conglomerates from France, Germany, and the Netherlands, for example, transforming patterns into other banking sectors in the EU and beyond. The structure of the article consists of chapters concerning regulatory conditions for the development of sustainable banking in the EU, evolution of the operating strategy, the impact of the CSRD Directive and the ESRS guidelines on strategies for creating value and competitive advantages, as well as EBA milestones (roadmap) on the EU market.Celem artykułu jest przedstawienie ewolucji strategii rozwoju i konkurencyjności w sektorze bankowym UE zachodzącej pod wpływem implementacji przepisów zrównoważonego rozwoju oraz obowiązków raportowania. Wyniki analiz wskazują, że regulacje prawne mają obecnie i będą mieć w przyszłości istotny wpływ na zmiany strategii rozwoju i konkurencyjności sektorów bankowych w UE. Ze względu na wielowymiarowość czynników ESG banki gruntownie i w wielu obszarach dokonują zmian procesowych, strategii i modeli biznesowych. Włączają czynniki ESG do istniejących systemów zarządzania ryzykiem i struktur organizacyjnych, strategii oraz budowy przewag konkurencyjnych. Spodziewane jest ograniczanie finansowania działalności wysokoemisyjnych, a zwiększanie projektów zielonych. Znaczący wpływ na strategie tworzenia wartości i przewag konkurencyjnych mają przepisy dyrektywy CSRD i ESRS. Globalnymi liderami bankowości zrównoważonej są konglomeraty bankowe, np. z Francji, Niemiec i Holandii, transformujące wzorce na pozostałe sektory bankowe w UE i poza nią. Strukturę artykułu tworzą rozdziały dotyczące: uwarunkowań regulacyjnych rozwoju bankowości zrównoważonej w UE, ewolucji strategii działania, wpływu dyrektywy CSRD i wytycznych ESRS na strategie tworzenia wartości i przewag konkurencyjnych oraz kamieni milowych EBA (roadmap) na rynku unijnym.&nbsp

Climate policy relevant sectors in the Polish commercial banks

The aim of the study is to estimate credit exposures and their changes in commercial banks' portfolios in terms of sectors important for climate policy, which exposes them to the risk of transition in Poland in 2013-2022. The research concerned the analysis of changes in the structure of the loan portfolio in terms of sectors relevant to climate change (CPRS) broken down by groups (green, black, brown, dirty), industries (fossil fuels, utility-electricity, production, manufacturing, transportation, agriculture), and types of activity divided into sections. The CPRS methodology was applied (Battiston), which is used in EiOPA, ECB, EBA. The share of green exposures of the entire banking sector in 2013-2022 increased (to 49%) and the share of dirty exposures decreased (to 51%). Due to the link between the sections, the three pillars of industries with the greatest risk to transformation among the CPRS were: buildings, transportation and manufacturing

Zmiany realnych długoterminowych stóp procentowych i ich wpływ na bilans obrotów bieżących oraz przepływy kapitału w krajach G7 w latach 1960–2008

W artykule przeanalizowano zmiany realnych długoterminowych stóp procentowych krajów G7 w latach 1960-2008, pod kątem ich wpływu na bilanse obrotów bieżących w tych krajach. Przeanalizowano również zagraniczne inwestycje bezpośrednie, relacje wartości tych inwestycji do nakładów brutto na kapitał trwały oraz do PKB. Wyliczono zależności statystyczne pomiędzy realnymi długoterminowymi stopami procentowymi ex ante i zagranicznymi inwestycjami bezpośrednimi w latach 1990-2008. Wyniki te pozwoliły określić wrażliwość przepływów kapitałów zagranicznych na poszczególnych rynkach na zmiany stóp procentowych. Wpływ realnych długoterminowych stóp procentowych ex ante na bilanse obrotów bieżących i przepływy kapitału w krajach G7 jest zróżnicowany co do siły i do tempa zmian. Obserwowany jest jednak korzystny wpływ spadku realnych stóp procentowych na bilanse obrotów bieżących i bilanse handlowe. Występuje ujemna zależność pomiędzy zmianami realnych stóp procentowych a napływem zagranicznych inwestycji bezpośrednich, tzn. spadkowi stóp procentowych towarzyszy wzrost wartości napływu inwestycji i odwrotnie. Kraje Europy Zachodniej oraz Japonia wykazują wyższą wrażliwość na zmiany stóp procentowych niż Stany Zjednoczone

Select theoretical and empirical aspects of foreign capital investments

Artykuł koncentruje się na wybranych aspektach teoretyczno-empirycznych zagranicznych inwestycji kapitałowych. Pierwsza część prezentuje hipotezy wybranych teorii zagranicznych inwestycji kapitałowych. Druga część określa determinanty pozycji konkurencyjnej, konkurencyjności oraz zdolności konkurencyjnej. Trzecia część rozważa atrakcyjność inwestycyjną, ryzyko inwestycyjne oraz metody ich oceny. Czwarta część przedstawia zmiany międzynarodowej pozycji inwestycyjnej Polski w latach 1994–2009.The article focuses on the select theoretical and empirical aspects of foreign capital. The first part of the article presents hypothesis select theories of foreign capital investments. Second one defines determinants of the competitive position and competitiveness, competitive abilities. The third part considers attractive investment, investment risk and estimation methods. Fourth part outlines changes of Poland International Investment Position in the period of 1994–2009.Udostępnienie publikacji Wydawnictwa Uniwersytetu Łódzkiego finansowane w ramach projektu „Doskonałość naukowa kluczem do doskonałości kształcenia”. Projekt realizowany jest ze środków Europejskiego Funduszu Społecznego w ramach Programu Operacyjnego Wiedza Edukacja Rozwój; nr umowy: POWER.03.05.00-00-Z092/17-00