Looking Back to Reforms, Looking Back to the Conference Twenty Years of Financial and Bank Reforms in the Czech Republic

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Reinvested Earnings Bias, The “Five Percent” Rule and the Interpretation of the Balance of Payments – With an Application to Transition Economies

We show that the imputation of reinvested profits of the subsidiaries of foreign firms as a debit item on a host country's balance of payments account tends to overstate the current account deficit. We also show that, because of the workings of the FDI financial life cycle, this phenomenon is most evident for countries that have recently received large inflows of capital. The transition economies of East Europe certainly fall among such countries, and we show that, for the Czech Republic and Hungary, this imputation has a large effect on their reported current account balance. We verify the working of the FDI financial life cycle using two different panels of developed, developing and transition economies.http://deepblue.lib.umich.edu/bitstream/2027.42/39928/3/wp543.pd

Reinvested Earnings Bias, The “Five Percent” Rule and the Interpretation of the Balance of Payments – With an Application to Transition Economies

We show that the imputation of reinvested profits of the subsidiaries of foreign firms as a debit item on a host country's balance of payments account tends to overstate the current account deficit. We also show that, because of the workings of the FDI financial life cycle, this phenomenon is most evident for countries that have recently received large inflows of capital. The transition economies of East Europe certainly fall among such countries, and we show that, for the Czech Republic and Hungary, this imputation has a large effect on their reported current account balance. We verify the working of the FDI financial life cycle using two different panels of developed, developing and transition economies.balance of payments, financial crisis, foreign direct investment, transition economies

Cointegration Analysis of Foreign Trade in the Czech Republic, 1993-98

This paper presents cointegration analyses of the import and export functions of the Czech Republic in 1993-1998 by identifying the main variable factors and estimating the long-run equilibrium relationship of Czech foreign trade functions. A long-run equilibrium relationship was found in the Czech import function. On the other hand, this relationship was weak in the Czech export function (coefficient of determination was only about 60%). This paper also corroborates evidence of the long-run impact of the money market imbalance to the real economy. Therefore, the author concludes, the Keynesian theory of the adjustment process applied to the balance of payments in the long-run should be complemented by the monetary approach.In the appendix to the paper, the author estimates a relationship between Czech export and import to calculate Czech export's import intensity.elasticity of import; elasticity of export; trade balance; cointegration analysis

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Regression Analysis of Foreign Trade in the CR in 1993-1998

This paper presents regression analyses of import and export functions in the Czech Republic from 1993 to 1998. The first part of the article summarizes the standard Keynesian income approach to the balance of payments. This traditional theory is considered alongside the theory of the monetary approach. The author creates his own regression import and export function models, in which he uses, besides traditional variables (GDP, exchange rate, domestic and foreign inflation, import and export prices), such variables as real money supply, foreign direct investment, unemployment data and number of working days. The results imply that domestic demand growth, represented by the combined effects of GDP and money supply growth, is the most important factor in explaining import dynamics.elasticity of import; elasticity of export; trade balance; monetary approach to the balance of payments; Keynesian (income) approach to the balance of payments

EU Convergence and the Role of External and Internal Stability in Transition Countries

The Maastricht criteria measure the nominal convergence process of transformation countries to the European Union (resp. the EMU). The real convergence process, as opposed to the nominal, is much less scrutinized. Due to the high income elasticity of imports in Central and Eastern European countries, the question arises as to whether these countries will be able to stabilize their external balances as their GDP growth rates accelerate toward EU levels. The authors made several estimates of the export and import functions for six CEE countries. Using the monetary approach to delineate internal balance and Polak´s model to measure external balance, the results show that the Czech Republic and Poland are the least advanced in nominal convergence due to the widening of their respective external imbalance.convergence process; monetary policy; internal balance; external balance

Enhancing Attractiveness of Secondary Agricultural Education in the Czech Republic

Introducing innovative teaching methods at agricultural high schools is linked to enhancing their attractiveness for students. The article aims to contribute to addressing this issue. Its framework is the discourse on the knowledge society. Students, who at the same time educate other people, presented their suggestions and ideas about inspired teaching in a questionnaire survey, including lifelong and community education at agricultural high schools. In particular, they emphasized the introduction of new trends and topics that are related not only to agricultural but also to other activities in the management of natural resources. They singled out teaching using practical and activation methods. They considered lifelong and community education in the framework of agricultural high schools as a possibility and as beneficial. The results achieved in the research can also be used in teaching at the Institute of Education and Communication (IVP) at the Czech University of Life Sciences Prague (CULS Prague)