scholarly journals Monetary approach to inflation: A medium-term structural model in a small open economy (the case of the Czech Republic in 1996-2004)

2006 ◽  
Vol 54 (3) ◽  
pp. 326-338 ◽  
Author(s):  
Josef Arlt ◽  
Jan Kodera ◽  
Martin Mandel ◽  
Vladimír Tomšík
Keyword(s):  
Czech Republic ◽  
Open Economy ◽  
Structural Model ◽  
Small Open Economy ◽  
Medium Term ◽  
The Czech Republic ◽  
Monetary Approach

scholarly journals Transfer pricing and the Czech tax policy

2010 ◽  
Vol 58 (6) ◽  
pp. 465-472 ◽  
Author(s):  
Veronika Solilová ◽  
Veronika Sobotková
Keyword(s):  
Czech Republic ◽  
Open Economy ◽  
Tax Policy ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Small Open Economy ◽  
Tax Base ◽  
The Czech Republic ◽  
Eu Member States ◽  
Pricing Rules

The Czech Republic as a small open economy with an extensive network of the international tax treaties for the avoidance of the double taxation prevents from shifting the tax base of the associated enterprises to countries with preferential tax regime through transfer pricing rules. Transfer pricing as one of the important areas of international taxes determines how the profits of the multinational enterprises are split between the jurisdictions in which they operate and which countries get to tax those profits. This situation may affect the global budget of the multinational enterprises and the tax reve­nues of the jurisdictions. This paper is focused on the transfer pricing rules used in the Czech Republic and makes recommendations for the Czech tax policy in this area based on the analysis of the transfer pricing rules in the EU Member States.

Echoing the european monetary integration in the czech republic

1998 ◽  
Vol 7 (3) ◽  
Author(s):  
Oldřich Dědek
Keyword(s):  
Czech Republic ◽  
Open Economy ◽  
Early Stage ◽  
Monetary Integration ◽  
Convergence Criteria ◽  
The Czech Republic ◽  
Catching Up ◽  
Real Convergence ◽  
High Degree ◽  
The Eu

Even in the case of an optimistic scenario of joining the EU at an early stage in the next century, CE countries are highly unlikely to participate in the take-off stage of EMU. Instead, they are expected to address some more elementary issues related to their transition processes. But the fact of being a small and open economy implies a high degree of macroeconomic discipline, in many respects not so much unlike that embedded in the Maastricht convergence criteria. Whatever disputes many surround the Maastricht convergence criteria, one can scarcely deny that they do suggest directions in which CE economies need to further upgrade their fundamentals. They put aside, however, so-called real convergence measured by the level of GDP per capita. The currency crisis in the Czech Republic delivered the lesson that the growth rates, if not underpinned by a healthy macroeconomic background, are short-lived and bring only lags Into the catching-up process.

scholarly journals Globalization and Foreign Trade: Selected Topics in Central European Countries

2020 ◽  
Vol 74 ◽  
pp. 06014
Author(s):  
Jaroslav Kovárník ◽  
Eva Hamplová
Keyword(s):  
Czech Republic ◽  
Comparative Analysis ◽  
Foreign Trade ◽  
Open Economy ◽  
Surprising Result ◽  
Business Partner ◽  
The Czech Republic ◽  
Central European ◽  
Goods And Services ◽  
Globalized World

Foreign trade plays important role in the economy of every country, especially in modern globalized world. This article deals with selected aspects of foreign trade in countries from central Europe, namely in the Czech Republic, Slovakia, Poland, Hungary, Germany, and Austria. Method of comparative analysis has been used in this article. Firstly, the article analyses the development of GDP (foreign trade is part of GDP formula in every open economy), where the most powerful economies are Germany and Austria. Secondly, overall development of trade with goods and services in all selected countries has been analysed. Surprisingly, the only country with deficit in case of services is Germany. Thirdly, the article focuses on development in two countries, namely of the Czech Republic and Slovakia. The openness of these two countries is compared, but most of all, the export and import of these two countries in relation with other analysed countries. Relatively surprising result is that for both countries is the most important business partner Germany, but there are some differences. Detail results are described in the article.

scholarly journals Macroeconometric Assessment of Monetary Approach to Balance of Payments in a Small Open Economy: The Nigeria Experience

2020 ◽  
pp. 41-50
Author(s):  
Atoi Ngozi Victor
Keyword(s):  
Open Economy ◽  
Structural Parameters ◽  
Small Open Economy ◽  
Reduced Form ◽  
Foreign Reserve ◽  
Long Run ◽  
Monetary Approach ◽  
Velocity Of Money ◽  
Domestic Credit ◽  
Marginal Propensity

Monetary approach to balance of payment establishes a link between foreign reserve assets and money supply. This link is important for managing balance of payment disequilibrium through adjustment of monetary aggregates. This study relies on the (Polak, 1957;1997) monetary model with data from 2007:Q1 to 2018:Q4 to examine the link between monetary factors and balance of payment in Nigeria. To circumvent simultaneity, the reduced form coefficients of the structural form of the Polak model are estimated using Two Stage Least Squares (TSLS) technique, while the structural parameters are recovered from the estimated reduced form coefficients. The results are enriching and robust. The Johansen cointegration procedure suggests a long run relationship among the macroeconomic variables in the balance of payment function. The estimated balance of payment model reveals that domestic credit is statistically significant and negatively related to foreign reserve assets, implying that balance of payment is a monetary phenomenon in Nigeria. The velocity of money circulation and the marginal propensity to import are approximately 120 percent and 14 percent, respectively. The study therefore recommends that the monetary authority should consider the use of domestic credit for management of balance of payment disequilibrium. It is also pertinent to increase domestic credit to grow the economy since such action will marginally decrease external reserve assets through increase in import, however, the net effect will enhance the overall economy.

scholarly journals Predictive performance of DSGE model for small open economy – the case study of Czech Republic

2013 ◽  
Vol 61 (7) ◽  
pp. 2229-2238 ◽  
Author(s):  
Tomáš Jeřábek ◽  
Jakub Trojan ◽  
Radka Šperková
Keyword(s):  
Czech Republic ◽  
Interest Rates ◽  
Open Economy ◽  
Multivariate Time Series ◽  
Small Open Economy ◽  
Predictive Performance ◽  
Parameters Estimation ◽  
Dsge Model ◽  
Economic Activities ◽  
Wide Range

Multivariate time series forecasting is applied in a wide range of economic activities related to regional competitiveness and is the basis of almost all macroeconomic analysis. From the point of view of political practice is appropriate to seek a model that reached a quality prediction performance for all the variables. As monitored variables were used GDP growth, inflation and interest rates. The paper focuses on performance prediction evaluation of the small open economy New Keynesian DSGE model for the Czech republic, where Bayesian method are used for their parameters estimation, against different types of Bayesian and naive random walk model. The performance of models is identified using historical dates including domestic economy and foreign economy, which is represented by countries of the Eurozone. The results indicate that the DSGE model generates estimates that are competitive with other models used in this paper.

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