E22 - Investment; Capital; Intangible Capital; CapacityNávrat zpět

The present work is based on a hypothesis that the Czech economy was showing signs of economic deceleration and a potential slump into deeper growth problems way before the outbreak of the COVID-19 pandemic, i.e., at least in the year 2019. However, the present text does not intend to thoroughly confirm this hypothesis because in order to do so, a longer timeline of key economic indicators needs to be analysed. What it does present is at least a partial argumentation supporting the abovementioned hypothesis and some basic calculations. It proposes two ways towards its confirmation. The first one is a comparative analysis of individual - especially European - economies' response to subsiding external influences, i.e., to the weakening of the effects of the pandemic on the economy. The second way is at least a partial analysis of key macroeconomic indicators from the time before and during the pandemic, with an emphasis on detectable divergences in the development. The conclusion of our research is the finding that as early as in 2019, the Czech economy was showing signs of imminent deceleration of growth, which would probably have turned into stagnation and possibly a certain decrease in economic activity. The conclusions indicate that the reason behind such development was a massive but in fact little effective investment activity in the Czech economic environment, which is historically related to the structure of the economy and to the position of the Czech industrial sector in supplier relationships. Two related phenomena arise from that: firstly, a relatively low labour productivity, with producers domiciled in the Czech Republic reaching quite a low volume of value added, and secondly a massive capital outflow in the form of profits paid to parent companies abroad. The final part of the paper outlines some potentially effective steps which might lead - under favourable circumstances - to restructuring processes in the Czech economy. Due to the date of finishing the research, the paper does not include the consequences of the War in Ukraine.

The aim of this paper is to evaluate relative over-investment or under-investment of economies. To achieve this, we build a panel regression for 122 countries, where rates of investment and capital-output ratios are explained by key fundamental variables stemming from the theory in Chapter 1. We present implied-equilibrium values for both variables and all the countries in the sample. Countries of the former Soviet Union, the USA and Germany, for example, were identified as relatively underinvested. Large Asian economies such as China, India and Indonesia, and some countries of Latin America and Africa appeared to be overinvested. No significant imbalance was identified for Czechia, Slovakia and Hungary, while Poland showed to be rela- tively underinvested.

We investigate the impact of the Czech Republic's membership in the European Union on capital mobility. Our estimation of capital mobility is based on the alternative Feldstein-Horioka model. The model comes from intertemporal budget constraints with the additional assumption of a different data generation process. We propose an empirical framework to capture two different regimes in the vector error correction model. We show that the period 1996-2004 is composed of both regimes. The most important conclusion is that the period 1996-2004 is connected with a mix of both regimes. However, the period 2005-2017 comprises only one regime, which is connected with higher capital mobility. Therefore, capital mobility in the Czech Republic increased after 2004.

The paper is devoted to the topic of investment with emphasis on their position within the transmission mechanism of inflation targeting. It briefly discusses starting-points of inflation targeting regime, individual transmission channels of monetary policy, and routes through which the central bank may influence the investment. There are mentioned selected investment theories. Other factors, whose changes may induce changes in investment, are derived using these theories. Using available data, sources of investment variability are verified for the Czech Republic. Correlation analysis is performed and the vector error correction model is compiled. It seems that rise of aggregate demand is transformed into rise of investment. Similarly in case of asset prices. Appreciation of CZK is reflected in decline of investment. All three relations are consistent with the theory. On the contrary, sensitivity of investment to changes in market expected real interest rates is not clear.

This article examines the impact of EU Cohesion Policy delivered through the European Structural and Investment Funds in the economic cycle and the fiscal policy of the Czech Republic in the years 2004-2015. Revenue arising from the EU increases aggregate demand, and this is a regular instrument for stabilizing fiscal policy. The key conclusion of the analysis is based on regression analysis, and there is demonstrate the procyclical nature of the EU Regional Policy and its negative impact on the effectiveness, efficiency, and economy of national resources. Temporal definition of programming periods and the ability to prepare projects and their implementation in the context of national and EU legal framework were identified as the main determinants of procyclicality. However, these factors make the cyclicality purely accidental and cohesion policy without links to the economic cycle and performance of member countries.

In 2014 notable changes in economy measuring have occurred. Primarily, it was caused by the implementation of a new ESA 2010 European standard of accounts subsequent to SNA 2008 an international Standards of accounts. Moreover, European statisticians executed other changes which met the requirements of Eurostat. These changes implemented the latest procedures in statistical models and used the most current data sources (e.g. Cenzus, 2011). The most notable changes represent the capitalization of research and development, the capitalization of government expenditures of military weapons and finally the capitalization of small material products. This paper describes all important details of the changes in economy measuring and shows the impact of the capitalization of new assets (research and development and military equipment) on productivity estimations in the Czech Republic.

In its theoretical part the paper summarizes the main developmental phases of a concept of optimal currency areas. In the empirical part of the paper Mundell's OCA condition of a mobility of factors of production for EMU countries is verified. There is a little doubt that the criteria of labour mobility was not met. On the other hand, capital mobility almost reached its limit. However, labour immobility was not substituted by effective allocation of capital. Moreover, both factors of production were not homogeneous within the Eurozone. To entirely confirm Mundell's criteria it is crucial to scrutinize not only the mobility of factors of production but also their homogeneity.

Developments in the commercial property market are an important factor affecting financial stability, especially given their effect on the probability of default of non-financial corporations. This article analyses the development of the office property markets in five central European countries and compares their main indicators with those for Germany. It then formulates a simple error correction model of office property prices in relation to macroeconomic, demographic and structural determinants. The analysis reveals that both demand and supply factors (GDP, inflation and total office space), and partly also the maturity of the credit market, have an effect. Using this model, property prices are identified as having been overvalued in 2006-2008. However, in the CR office space currently appears to be slightly undervalued.

The article deals with a problem of changes in inventories, its variability and its synchronization with changing savings and import in the Czech Republic in 1999-2012. In theoretical part both macroeconomic and microeconomic aspects of changes in inventories are discussed in the context of expected and unexpected demand shocks. In empirical part sources of GDP variability are analyzed using trend and cyclical data. Trend variability of changes in inventories is less important for trend GDP variability than in case of cyclical variability and vice versa for cyclical GDP and changes in inventories. Parameters of VAR model of cyclical changes in inventories, savings and import are also estimated. The results show that change in savings is a source of unexpected demand shock with impact on inventories. Reaction of import confirms that savings influence more domestic products consumption than imported products which are more driven by exports.

Economic growth of the Czech Republic measured by GDP reached 3,4 % per annum in the decade 2001-2010 and was substantially faster than average annual growth of the European Union. Strong acceleration in the years 2005-2007 was followed by stagnation in the years 2008-2012 caused by strong decline of GDP in the year 2009 and milder recession in the year 2012. The modest recovery in the years 2010 and 2011 was pulled namely by foreign trade, while final consumption and gross fixed capital formation stagnated. Alternative indicator of national income was negatively influenced by growing outflow of primary incomes. Real gross domestic income indicates different results in comparison with gross domestic product because of changes in the terms of trade. Macroeconomic stability improved substantially in the field of foreign trade while general government deficit contributed to its deterioration.

The article focuses on alternative approaches of fixed capital measurement. The official direct estimation for Czech economy is based on straight line depreciation profile. This article presents the results based on the application of geometric depreciation profile on appropriate types of assets. Alternative consumption and net stock of fixed assets are presented. The impact on GDP of such changes is evaluated. New model of perpetual inventory method is transformed to Markov chain. Such transformation leads to easy estimation of average age of fixed assets. Such estimation is suitable for asset with short average service lives. The article presents average age for machinery and equipment. All calculations focus on development between 1995 and 2010.

The article focuses on new possible approaches of total factor productivity measurement. The standard computation takes into account the number of hours worked as the labour input and net or gross fixed capital stock as the capital input. This article improves the computation by using labour services as the labour input (it is necessary to take into account the skills and efforts of the workers) and capital services as the capital input. Substitution of capital stocks by capital services means that only flow indicators are used for TFP measurement. This issue became more popular in recent time in line with the revision of the manual for national accounts - SNA 2008. This paper concentrates on the development of the Czech economy between the years 2002 and 2008.

The paper focuses on accrual taxes, investment and depreciation in government sector from statistical point of view. The paper is a feedback on paper published in Politická ekonomie 2/2010 by authors Hrdlička, Ištvánfyová and Vítek. Original paper dealt with similar issue but from accountants' point of view. The statistical view of this matter is slightly different and it is influenced by current national accounts' standard ESA 1995. The most of the paper is devoted to the investment and depreciation, in national accounts terms capital formation and capital consumption. The sector of government is a very important investor and property owner in the Czech Republic. Therefore a good record of investment and depreciation is important not only for government sector itself but also for total economy.

Economic growth of the Czech Republic strongly accelerated in the years 2005-2007. Substantial decline of economic activity took place at the end of 2008 and in the year 2009. On the supply side the main contributing factors were labour and total factor productivity. On the demand side the growth was pulled by domestic demand and the contribution of foreign trade became positive in the years 2004-2008. Macroeconomic stability improved substantially in the field of foreign trade. The process of real convergence accelerated in the years 2001-2007 and was based on the growth of labour productivity. In 2008 the GDP per capita in purchasing power standards reached 80 % of the EU-27 average. The comparative price level grew quickly from the low starting level, but was far below the relative economic level compared with EU-15. In 2008 a great jump in CPL took place (from 59 % in 2007 to 67 % in 2008 in relation to EU-15).

Economic growth of the Czech Republic differed strongly in two periods: 2001-2003 and 2004-2006. While in the first period the average annual rate of growth of GDP reached only 2,7 %, in the second period the growth accelerated to 5,7 %. The economic growth measured by the indicators of real income (namely of real gross domestic income) was faster. This was caused by positive contribution of the terms of trade. On the supply side the main contributing factors were labour and total factor productivity. On the demand side the growth was pulled by domestic demand which grew in the period 2001-2003 even faster than GDP. The contribution of foreign trade becomes positive in the years 2004-2006 with very strong contribution in the year 2005. Macroeconomic stability of the Czech economy improved substantially in the field of foreign trade. The trade balance becomes positive from the year 2004 and growing imbalance persists in the balance of income. The negative gap between savings and investments is caused mainly by households and general government. The process of real convergence accelerated in the years 2000-2006 and was based on the growth of labour and total factor productivity. In 2006 the GDP per capita in purchasing power standards reached almost 80 % of the average level in EU-27. The comparative price level of the Czech Republic in this year reached only 61 % despite accelerated process of catching-up.

The paper analyses the intertemporal approach to the balance of payments which is based on the intertemporal approach to the relation between domestic saving and investment. A key element of the presented analysis is whether world capital mobility is high enough to hold a condition that the relation between the domestic saving and investment in a country could vary. The paper contributes to this economic theory by the empirical analysis carried out with a large sample of countries as well as by the analysis of saving and investment distinguishing the set of developed, poor, and transition countries. The paper defines and empirical verifies macroeconomic relationships among saving, investment, the balance of trade and services, and the current account of the balance of payments. The authors define their own hypothesis of the relation among domestic saving, investment, and world capital mobility, which is based on the level of economic development of a country. The results of the analysis are discussed within the context of how to conduct monetary and fiscal policies, as well as within the fundamental equilibrium exchange rate theory.

This paper deals with the recent empirical phenomenon of intraindustry trade, i.e. trade in similar goods between similar countries. It treats this phenomenon from the point of view of the theory of structure of production, highlighting the importance of sequential nature of production and heterogeneity and specificity of factors of production, as developed by Carl Menger, Eugen von Boehm-Bawerk and their followers of the so-called Austrian school of economics. Simple theory of production structure, along the lines of Austrian economics, is presented and a useful tool for the analysis of intraindustry trade is developed. In the following discussion we make the case for vertical intraindustry specialization, complex manufactured goods and sliced-up production chains across countries. The reader immediately observes the importance of Austrian production structure theory for the analysis of intraindustry trade. We accordingly apply the concepts of the structure of production on intraindustry trade and analyze, in particular, the time- and place-aspects of international production. Finally, we show the relevance of our approach to intraindustry trade for the analysis of business cycle synchronization and Optimum currency areas theory.

This study is devoted to analysis of different aspects of world oil market development and its role in further growth of individual national economies, especially in connection with the ever intensifying globalization process. The study shows individual aspects and parts of the oil market, be it production and consumption of crude oil, its territorial dislocation, including EU, and also an analysis of the impact that has the development of oil consumption on economical results of individual national economies. In the first place it analyses the connections with the growth of competition ability of companies. Further research is devoted to the establishment of crude oil price and to the most important aspects on which depends the price creation process. Supply and demand factors are also analyzed. The study comes to a conclusion that the biggest obstacle in using the crude oil will not be its availability, at least in the short run, but the ever fast increasing price. This high price will enable the use of oil only to such companies and countries that will be able to implement the oil in the production process with very high efficiency. Such conditions satisfy only products and services that are based on unique technical and scientific know-how, with high added value, or in such areas of national economies where the use of oil is unenviable.

Economic growth of the Czech Republic differed strongly in two periods: 1996-1999 and 2000-2004. While in the first period the economy was hit by the recession and the average annual rate of growth of GDP reached only 0,9 %, in the second period the growth accelerated to 3,2 %. The economic growth measured by the indicators of real income (namely of real gross domestic income) was faster. This was caused by positive contribution of the terms of trade. On the supply side the main contributing factors were labour and total factor productivity. On the demand side the growth was pulled by domestic demand which grew even faster than GDP. The contribution of foreign trade becomes positive in the year 2004 and mainly in 2005. Macroeconomic stability of the Czech economy improved substantially in the fields of inflation, monetary development and foreign trade. Imbalances persist in general government budget and on the current account of the balance of payment. The process of real convergence accelerated in the years 2000-2004 and was based on the growth of labour and total factor productivity. In 2004 the GDP per capita in purchasing power standards surpassed 70 % of the average level in EU-25. The comparative price level of the Czech Republic in this year reached only 53 % despite accelerated process of catching-up.

Focus is made on the historical circumstances of the arising of the Czech capital markets. Transformation from state-owned enterprises to private businesses and corporations, via coupon (or voucher) privatization, i.e. distribution of shares to a large number of small shareholders, required a tailor made capital markets. Two competitive project were launched: Prague Stock Exchange and RM-System. As investment funds collected investment vouchers and become important shareholders, large packages of shares were formed and new majority shareholders stepped into their rights and powers. The transfer of ownership finished, public markets lost their broad clientele and had to reduce number of titles traded substancially. Todays capital markets in the Czech Republic are mostly OTC markets, with some contribution of public markets (RMS and PSE), of which more important is the Prague Stock Exchange. The latter is still not fully functional - there has not been any important public offering so far.