Elżbieta Bukalska and Michał Bernard Pietrzak
Poland was coined a ‘green island’ during the Global Financial Crisis (GFC) of 2007–2009 with a stable growth in Gross Domestic Product (GDP), while other countries experienced a…
Abstract
Research Background
Poland was coined a ‘green island’ during the Global Financial Crisis (GFC) of 2007–2009 with a stable growth in Gross Domestic Product (GDP), while other countries experienced a dramatic drop in the GDP growth. We assumed that this is due to the stronger resilience of Polish economy and Polish companies.
Purpose of this Chapter
The aim of the research is to identify the companies' stability (resilience) in the crisis situations (especially the GFC and COVID-19 crisis). We also wonder whether corporate resilience is accompanied by the financial flexibility.
Methodology
We use GDP growth rate and Profitability as the measures of the resilience. Additionally, we include in our research financial flexibility measured by debt and cash ratio as factors affecting corporate resilience. Our research covers the period 2000–2021. Our data refer to three European countries: France and Germany as the leading European countries and Poland as the leader of changes in Central and Eastern Europe.
Findings
We found that Polish economy – against German and French – have higher GDP growth and profitability ratio over the 2000–2021 period. These ratios also show lower volatility around the trend. We proved that higher corporate resilience is accompanied by higher financial flexibility of Polish companies.
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Artur Paździor, Wiesława Caputa and Izabela Krawczyk-Sokołowska
The Covid-19 pandemic and the war in Ukraine are a real example of how uncertainty can trigger radical changes in the socio-economic system on a macro and micro scale. The…
Abstract
Research background
The Covid-19 pandemic and the war in Ukraine are a real example of how uncertainty can trigger radical changes in the socio-economic system on a macro and micro scale. The indicated events contributed to the increase in the level of uncertainty, and its effects appeared in the real conditions of the functioning of international communities.
Purpose of the Chapter
The purpose of the chapter is to determine the impact of the Covid-19 pandemic and the war in Ukraine on the situation of Polish consumers and the resulting behaviour in the context of business–consumer relations.
Methodology
This goal was achieved through literature studies, analysis of changes in selected indicators of the economic situation and analysis of basic variables determining the relationships between consumers and suppliers.
Findings
The presented research results allow us to conclude that both the pandemic and war had an impact not only on the economic indicators but also the financial standing of households. We are seeing an increase in the differences between the nominal and real value of these incomes. Inflation is on the rise, forcing households to change their spending structure and look for savings. Of course, there have been and will be companies that do not have to be significantly affected by the effects of these events. In this group, companies related to the provision of IT infrastructure and specialising in establishing multidimensional relationships in the digital space should be pointed out.
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Anna Szelągowska and Ilona Skibińska-Fabrowska
The monetary policy implementation and corporate investment are closely intertwined. The aim of modern monetary policy is to mitigate economic fluctuations and stabilise economic…
Abstract
Research Background
The monetary policy implementation and corporate investment are closely intertwined. The aim of modern monetary policy is to mitigate economic fluctuations and stabilise economic growth. One of the ways of influencing the real economy is influencing the level of investment by enterprises.
Purpose of the Chapter
This chapter provides evidence on how monetary policy affected corporate investment in Poland between 1Q 2000 and 3Q 2022. We investigate the impact of Polish monetary policy on investment outlays in contexts of high uncertainty.
Methodology
Using the correlation analysis and the regression model, we show the relation between the monetary policy and the investment outlays of Polish enterprises. We used the least squares method as the most popular in linear model estimation. The evaluation includes model fit, independent variable significance and random component, i.e. constancy of variance, autocorrelation, alignment with normal distribution, along with Fisher–Snedecor test and Breusch–Pagan test.
Findings
We find that Polish enterprises are responsive to changes in monetary policy. Hence, the corporate investment level is correlated with the effects of monetary policy (especially with the decision on the central bank's basic interest rate changes). We found evidence that QE policy has a positive impact on Polish investment outlays. The corporate investment in Poland is positively affected by respective monetary policies through Narodowy Bank Polski (NBP) reference rate, inflation, corporate loans, weighted average interest rate on corporate loans.
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There are many indications that government policymakers and supporters of large-scale nuclear expansion in Poland have not seriously grappled with arguments critical of this…
Abstract
Research Background
There are many indications that government policymakers and supporters of large-scale nuclear expansion in Poland have not seriously grappled with arguments critical of this direction of the country's power development. Instead, there is a mood of euphoric elation in these circles without even an attempt to reflect on why this kind of nuclear power is in a state of perennial crisis and lack of development prospects in Western countries.
The Purpose of the Chapter
The purpose of this chapter is to consider from an economic perspective the potential role of nuclear power in decarbonising the Polish power sector. It needs to answer two questions: why not develop large-scale nuclear power and why small modular reactors (SMRs) can be a better alternative for decarbonisation of the Polish power sector.
Methodology
The primary research method used in the preparation of this chapter is a critical analysis and synthesis of the literature on the subject.
Findings
A technological revolution will offer electricity customers increasingly better alternatives. Among them there is also technology of SMRs which seems to be much less risky option in terms of its compatibility with the direction of the power sector's evolution as well as cost of sectors’ decarbonisation.
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Polish agriculture is one of the main sectors of the national economy that, under the influence of political transformations and European integration, is subject to measures…
Abstract
Research Background
Polish agriculture is one of the main sectors of the national economy that, under the influence of political transformations and European integration, is subject to measures stimulating its development. The instruments of the Common Agricultural Policy (CAP) have been an important supporting stimulus.
Purpose of the Chapter
This chapter aims to evaluate the significance of the common agricultural policy to the growth and development of agriculture and to structural transformations therein triggered primarily by the influx of additional CAP funds.
Methodology
The agricultural sector was examined together with its selected characteristics in the context of CAP instruments' impact after 2004. Data included the streams of funding for Polish agriculture and indicators illustrating changes in structural features, economic performance and productivity of production factors. The indicators included changes in the number, structure and potential of farmsteads, changes in the level of employment in agriculture, this sector's share in total gross value added, profitability of farmsteads, capital expenditure level and changes in labour and land profitability compared with changes in the level of employment and agricultural production intensity. They were calculated based on data from EUROSTAT, Statistics Poland and Farm Accountancy Data Network (FADN).
Findings
The outcomes confirm that common agricultural policy has contributed to create development processes in Polish agriculture. Changes in the sector affected structural characteristics, production factors productivity and the income of agricultural producers. Since Poland joined the European Union (EU), the percentage of agricultural workers declined by 8.4 p.p. and the number of farms decreased by nearly 30%. These changes were accompanied by a nearly twofold increase in agricultural labour productivity, 50% increase in land productivity and the profitability of land increased by 43%.
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Łukasz Wiechetek and Arkadiusz Gola
This chapter describes the present state and the trends in the Polish information and communications technology (ICT) sector, which today is considered to be one of the most…
Abstract
Background
This chapter describes the present state and the trends in the Polish information and communications technology (ICT) sector, which today is considered to be one of the most progressively developing part of the national economy. Special attention is given to economic background, ICT employment and governmental policy. Some forecasts for future development were also proposed.
Purpose of the Chapter
The purpose of this chapter is to present the background, dynamics and future trends in the Polish ICT sector.
Methodology
The statistical data (Statistics Poland, Eurostat), market reports and scientific articles were analysed. Microsoft Excel and QGIS software was used to analyse the data and visualise the results.
Findings
Polish ICT market has stable fundaments, good infrastructure, qualified workers and a good location. Despite the developed infrastructure, e-commerce and e-administration usage is relatively low compared to the average level of EU27. The Polish ICT market specialises in software implementation, IT outsourcing and computer game development. The Polish ICT market development is associated with cloud computing, outsourcing, e-commerce, cybersecurity, big data, artificial intelligence (AI) and Industry 4.0. Poland is also in the top 10 countries for IT outsourcing worldwide, with the leading ICT centers in Warsaw, Cracow and Wrocław.
The growth of the ICT sector was (is) supported also by central programmes and government strategies: Operational Programme Digital Poland, Digital Competence Development Program and Cybersecurity Strategy. In the last 2 years, the development of ICT was also boosted by the COVID-19 pandemic. Market reports and forecasts show that the sector's future development will be related to artificial intelligence, Industry 4.0 and data analytics and financed by private business and central government contracts. The increase in remote work will also be significant.
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Anna Wawryszuk-Misztal and Tomasz Sosnowski
Poland generally has a homogeneous society, conservative towards changes and diversity. The corporate culture in Polish companies reflects this mindset, leading to a lack of…
Abstract
Research Background
Poland generally has a homogeneous society, conservative towards changes and diversity. The corporate culture in Polish companies reflects this mindset, leading to a lack of inclusion on the corporate board. Additionally, many companies may not fully understand the benefits of an inclusive workplace and legal requirements for gender diversity.
The Purpose of the Chapter
The main objective of the study is to provide a better understanding of the attitude of Polish companies towards diversity policies and reveal differences in actual and expected levels of gender diversity in corporate boards. Thus, we examine compliance with the gender diversity guidelines in the corporate governance code.
Methodology
Using a sample of 367 Polish companies listed on the Warsaw Stock Exchange, we study the composition of the management and supervisory boards to check if they meet the expected gender diversity criteria. We also look at companies' explanations for non-compliance with the main principles regarding diversity policy.
Findings
We find that the current composition of corporate boards of stock companies in Poland is male-dominated. Women represent only 12.72% and 17.12% of the management board and supervisory board members, respectively, and 68.94% (42.23%) of companies have no women on their management (supervisory) board. Moreover, only a small percentage of companies comply with the principles related to gender diversity. Qualifications, experience and education are pointed out as the most important criteria for decision-making on board appointments, with only 2% of companies applying gender as an additional criterion. The study suggests that larger companies are more likely to implement diversity policies.
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Paweł Pasierbiak and Sebastian Bobowski
The last three decades have witnessed strong development of global value chains (GVCs). Also, the Polish economy developed international production links along with the systemic…
Abstract
Research Background
The last three decades have witnessed strong development of global value chains (GVCs). Also, the Polish economy developed international production links along with the systemic transformation from the beginning of the 1990s. This led to changes in Poland's participation in GVCs.
The Purpose of the Chapter: The study's primary purpose is to characterise the evolution of Poland's participation in GVCs since the mid-1990s, including its key determinants.
Methodology
Several research methods were used to achieve the study's goal, including critical literature analysis, statistical data analysis and descriptive methods. To determine Poland's share in the GVCs, the method of estimating domestic and foreign added value was used, which allowed for measuring the scale of production fragmentation and related trade in value-added.
Findings
The analysis allowed us to conclude that Poland has increased its share in GVCs, mainly inside the EU. Also, the industrial structure underwent positive changes. The increasing Poland's participation in the GVCs was primarily due to the inflow of FDI-related technology, the transformation of the economic structure, institutional and geographical factors. The improvement in the conditions for the functioning of the Polish economy has been reflected in international competitiveness rankings, where such attributes as geographical location, macroeconomic performance, human capital, market size, technical infrastructure and innovativeness are indicated. On the other hand, however, the tightness of the law, the efficiency of the government and public administration remains a challenge.
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Katarzyna Szarzec, Dawid Piątek and Bartosz Totleben
At the beginning of the 1990s, the Polish economic situation was extremely difficult: high public debt, shortages, high inflation and more than 8,000 state-owned enterprises…
Abstract
Research Background
At the beginning of the 1990s, the Polish economic situation was extremely difficult: high public debt, shortages, high inflation and more than 8,000 state-owned enterprises (SOEs) waiting to be restructured and/or privatised; along with a GDP per capita lower than in Ukraine.
Purpose of the Article
This chapter provides an overview of the Polish economic transition, and presents the results of this process, taking into account four aspects of the changes, i.e. stabilisation, liberalisation, institutional reforms and privatisation. Special attention is paid to intentionally unfinished privatisation and the still significant role of state-owned enterprises, which have remained important economic agents.
Methodology
Critical analyses were made of the literature dedicated to the economic transition and of the role and characteristics of state-owned enterprises. Empirical evidence is drawn from original datasets about the scale of SOEs in the contemporary economy and rotations in management and supervisory boards in Polish joint-stock companies.
Findings
Despite the unfavourable initial conditions, Poland soon emerged as a leader in economic growth, successfully stabilising, liberalising and privatising its economy. The institutional foundations of a democratic market economy were consistently built, and the applications for membership in the OECD, the EU and NATO were an important driver of institutional reforms. In terms of state institutions, political and economic freedom and quality of governance, Poland is more similar to the G7 countries than to the other post-socialist countries, though the need to maintain high-quality state institutions is still a priority. The significant share of SOE is regarded as a challenge of the Polish economy because state-owned enterprises are an object of rent-seeking by politicians and political parties.