Journal of Economics - Obsahy ročníkov

The European Union faces the biggest change in her history – Brexit. The United Kingdom is leaving the EU and therefore its integrated capital market. Never before in the history of the EU has a Member State left the club, therefore the reactions of the Internal Market, economies of the rest EU Member States, and financial markets are unpredictable. Since 2012, the Coalition of the Willing would like to implement the financial transaction tax (FTT) but currently they pause before the question of how the Brexit will change the potential FTT revenues of the Coalition of the Willing. Based on the research we can conclude that the Brexit will have a negative or positive impact on the potential FTT revenues with dependence on a relocation of financial markets outside of United Kingdom. Moreover, the FTT can be considered as a sustainability-oriented tax-based own resources for a reform of the EU budget. Keywords: financial transaction tax, Brexit, Coalition of the Willing, EU; JEL Classification: H25, H61

The aim of this paper is to identify whether Small and Medium Enterprises, i.e. SMEs’ access to finance can increase given the context of Capital Markets Union (CMU) project. For this purpose, identifying the main drivers of SMEs’ access to different types of financing having the SMAF index as proxy is a matter of great importance. Based on a panel of sixteen European countries we have performed a threshold analysis via PSTR methodology that reveals some very interesting facts. First of all, we have found strong empirical evidence of a threshold effect with stock market capitalization as threshold variable when studying the dynamics of the SMAF index. When the capitalization is lower than 35.34%, a large series of macroeconomic variables like interest rate spreads, GDP per capita, inflation rate, unemployment or cost/revenues ratio generate a powerfull influence when it comes to finance a SME. When stock market capitalization exceeds the threshold, a different story is narrated and the existence of other directions of influence is visible. Hence, our results suggest that the CMU project with all its initiatives and impact measures will not facilitate SMEs’ access to finance in developed capital markets with stock market capitalization below the threshold level of 35.34%. Keywords: Capital Markets Union, SMAF index, Stock Market Capitalization, PSTR; JEL Classification: C23, C58, D53, G15, G24

This paper examines linkages among foreign direct investment (FDI) and economic growth in 11 countries from Central and Eastern Europe (CEE) for the period of 1997 – 2014. Findings from panel data analysis suggest that the relative size of economic growth indicators affect FDI of CEE countries. This result holds for both contemporaneous and lagged relationships. FDI has an impact on economic growth, and this effect is strengthened by financial market development. The efforts of CEE countries increase the economic growth and beneficial spillover effects from FDI to local economies should be concentrated on the support of the development of local financial markets. Keywords: foreign direct investment, economic growth, Central and Eastern Europe; JEL Classification: F36, F43, O16, O40

This paper examines the direct and indirect effects of decentralization on economic growth that take place through transmission channels such as government efficiency, control of corruption, government sector size and the quality of living. A dynamic nature of growth, potential endogeneity and the distinction between short-and long-run effects are taken into account. Our findings support proactive government approach, including fiscal policy measures to stimulate demand, prevent decline of production and employment and rebuild trust in institutions. They question the current prevalent thinking about the beneficial effects of the reduction of government expenditure on economic growth. Keywords: fiscal decentralization, economic growth, direct and indirect effects, dynamic analysis; European countries; JEL Classification: H77, O43

This paper investigates recent trends and developments in almost 200 busi-nesses located worldwide, mainly in the fields of strategic management and corporate performance using a qualitative research method. The research involves assembling key academic and other literature on the given subject as well as semi-structured interviews with managers in “Western” and Asian companies located all over the world to identify current business trends. Six hypotheses are formulated and statistically tested. The reliability is studied through Cronbach’s α. Furthermore, the paper describes selected business trends in detail, including quotes from managers. It concludes by noting the limitations of the study and suggesting areas for further research. Keywords: trend, development, strategy, performance, management; JEL Classification: M21