Journal of Economics - Obsahy ročníkov

In this paper a PPI based real effective equilibrium exchange rate for the Slovak koruna is estimated using BEER method. This method rests upon finding a long-term relationship between a real exchange rate and other appropriately chosen economic fundamentals. Such exchange rate is called a behavioural equilibrium exchange rate (BEER). Knowledge of equilibrium exchange rate shed light on current standing of the Slovak koruna vis-à-vis other currencies which helps the central bank in forming appropriate monetary policies. Moreover, given that observed relationship between equilibrium exchange rate and other fundamentals will be preserved, BEER method allows estimating its future path. This can be used in determining the value of a central parity of the Slovak koruna vis-à-vis euro when Slovakia enters ERM II. Key words: equilibrium exchange rate, BEER method, ERM II JEL Classification: F31, C22

This contribution presents vector autoregressive processes, some aspects of their modelling anted possibilities of identification of these models. After estimation of purely data driven models, reflecting no economic theory in explicit manner, their residuals and parameters are used in computation of structural residuals that can be interpreted in sense of economic theory. This technique was applied pair wise to GDP growth rate and CPI inflation rate in Slovakia, Germany and Euro area. Correlations of these structural residuals among countries are a measure of symmetry of reactions to outside shocks. Our analy-sis shows certain symmetry between Slovakia and Germany in supply shocks. This is important for monetary integration of Slovakia, as Germany is the most important trade partner of Slovakia in the EMU, despite problems with model-ling, typical for modelling transition economies, and resulting uncertainty Key words: optimal currency area, shocks, business cycle, vector autoregressive process JEL Classification: E31, E32, E52

The Slovak Republic has committed itself to adopt the single currency euro after joining the European Union. However, Slovakia can choose the timing of its entry into the Economic and Monetary Union (EMU). This should be determined by the economy’s readiness, i. e. nominal (Maastricht criteria), real (GDP per capita in PPP, price level etc.) and structural convergence (based on the theory of optimum currency area – OCA). Slovakia meets some of the OCA criteria, namely openness of the economy and amount of mutual trade. In contrast, crite-ria of business cycle synchronisation, export diversification, labour market flexibility and labour mobility are not satisfied. For these reasons, an early entry into the EMU seems to be inconvenient to Slovakia. Key words: economic and monetary union, Slovak Republic, structural convergence, the theory of optimum currency area JEL Classification: F33

Based on the works (Banerjee et al., 1993; Marček, 2001) econometric models are proposed and applied to predict the inflation in the Slovak Republic. The general theoretical framework of econometric modelling is based on the classical Phillips curve. The analysis concentrates on the relationships among inflation, wages and unemployment using the quarterly data. The rival models based on dynamic versions of the ordinary regression models are considered. Key words: co-integration, error correction mechanism, transfer function models JEL Classification: C20, C29

This paper deals with purchasing power parity tests using the Big Mac index. A good example of price comparison among countries is the Big Mac index, which represents a unique basket of goods and services in any two countries. Exchange rate between the US dollar and Slovak koruna has been evaluated for 11 years (between January 1993 and January 2004). The results show that the Slovak koruna was undervalued in average by 36 % in this time period. This undervaluation is an important positive factor for foreign companies investing to Slovakia. Price differences among countries from the theoretical values of PPP are also influenced by barriers to trade, transportation costs, taxes, differences in productivity, current account deficits and imperfect competition of markets. Key words: purchasing power parity, Big Mac index, barriers to international trade JEL Classification: F31

With the increase in foreign direct investment and number of multinational companies establishing their subsidiaries in Slovakia, we argue that there is a need to assess the fit of the Slovak Republic into the national culture distance map to embrace foreign managerial practices. This article focuses on power distance dimension of Slovak national culture, as this is one of the key features in most managerial practices. We draw on the research findings of Hofstede and present a mathematical model to calculate power distance index (PDI) and suggest possible implications for implementation of foreign managerial practices in Slovakia. Key words: power distance, national culture dimensions, human resource management practices, Slovakia, hofstede JEL Classification: J50, J53

Growth of sales of consumer goods, organizational and working concentration nowadays have made from our home business an important economical category of the international importance. At present European business represents highly concentrated integrated companies working worldwide. Many of them already work in our market and affect our home companies which for their excessive atomization and undercapitalization are not ready to face such a tough competition. The aim of this article is to refer to the present integrated and concentrated forms of European business and alternatives of cooperation between small companies, represented also by the Slovak ones, with the big International companies. Key words: European business, integrated and concentrated forms, joint-stock company, strategie alliance, free chains, retail-trade JEL Classification: D92

The globalisation process poses such questions as the extension of poverty and its reduction. The answers on these questions are not too optimistic. The poverty is remarkably growing in the globalising world. The Polish economist G. W. Kolodko has made a remark that the current political life is cruel what means that the space for equity is minimal. The term „equity“ occurs more frequently in politicians electoral proposals than in the reality. In regard to the scientific analysis it occurs only very rarely in spite of its actuality. A certain exception was the scientific conference held by the IMF in June 1998 on the theme „Economic Policy and Equity“. The main aim of the conference was to pay attention to this urgent problem. The same purpose has also this article. Key words: equity, economic policy, distribution, social policy JEL Classification: A13, H23, I32

Small and medium enterprises are faced with the critical issue of how to respond to the process of globalisation. They are not immune from the impact of globalisation and are faced with the need for a strategic response. In first two parts of article the basic signs of globalisation and the influence of globalisa-tion on small and medium enterprises are discussed. Two ways how to react to the process of globalisation by small and medium enterprises are presented: the passive (local) approach, or to join actively the globalisation process. In last two parts of the article possible opportunities and threats resulting from the process of globalisation for small and medium enterprise are analysed; special attention is given to the influence of globalisation on small and medium enterprises in Slovakia. Key words: small and medium enterprises, globalisation, opportunities, threats JEL Classification: F02, L20