Adam Marszk

Economic Integration and Foreign Direct Investment: Review of Main Theoretical Concepts

The objective of the article is to present key theoretical relationships between economic integration and FDI flows. The research method used is a comprehensive literature review. Most influential publications, including books, articles, working papers, etc. contributing to the subject were identified. The review consists of two essential parts: theory of FDI, and theoretical relationships between economic integration and FDI flows. Finally, the outlined publications were discussed and critiqued, including the empirical context, i.e. empirical verification of the presented links. In some areas the theoretical impact of integration on FDI is unclear, thus being an obstacle to making informed policy decisions. According to various theoretical concepts, economic integration should influence FDI flows mostly positively, due to e.g. reduced trade barriers and extended market sizes. A number of theoretical concepts support the positive impact of economic integration on FDI flows. Possible directions of future research include comparisons of blocs with members at different development level, and further development of FDI theories in order to account for integration effects. For the time being, this paper seems to be the most comprehensive and up-to-date survey of this topic.

Big Data Analytics for ICT Monitoring and Development

The expanded growth of information and communication technology has opened new era of digitization which is proving to be a great challenge for researchers and scientists around the globe. The utmost paradigm is to handle and process the explosion of data with minimal cost and discover relevant hidden information in the least amount of time. The buzz word “BIG DATA” is a widely anticipated term with the potential to handle heterogeneous, complex, and unstructured data. We can say that big data has evolved as a monitoring tool for ICT to detect relevant patterns which were previous unknown. This chapter focuses on ICT and big data application in varied application domains. The aim is to design a framework for business data resources which gather at unprecedented pace and derive relevant information with big data analytics for better decision-making. In addition, this chapter discusses a novel framework where big data analytics is utilized as potential decision- making step for relatively better management policies.

FINANCIAL MARKETS DIFFUSION PATTERNS. THE CASE OF MEXICAN INVESTMENT FUNDS

Exchange traded funds (ETFs) are one of the most influential financial innovations, reshaping the investment funds market in many countries, including Mexico. Due to their similar investment objectives, ETFs are considered substitutes for mutual funds. This paper examines the changes of the investment funds (ETFs and mutual funds) in Mexico over 2002-2012 using a category of the innovation diffusion models, i.e. logistic growth models in order to explore the key development patterns. First section presents data sources and methodological framework, with detailed description of the innovation diffusion models applied in the research (based on 3-parametric logistic curve). Descriptions of the selected categories of investment funds are provided in the second section of the article, together with the advantages of ETFs as opposed to mutual funds. Sum of assets under management of ETFs and mutual is considered as the size of the total investment funds market. Empirical findings indicate the significant development of the ETF market, both in terms of assets under management and market share. According to the presented estimations, Mexican ETF market development can be described with the logistic growth models, and three characteristic phases of the logistic curve were clearly observable. Predicted ETF market development patterns point towards further increase of market share of ETFs over the next 3-5 years yet the probability of exceeding the level of ca. 20-30% seems low.

Information and Communication Technologies for Economic Development

This chapter is intended to explain why and how information and communication technologies may affect the process of socio-economic development, especially with regard to economically backward economies. It sheds light on why technological changes constitute prerequisites enabling advancements along the socio-economic development pattern. It is also designed to exhibit the special relevance of information and communication technologies when implemented in developing countries. Additionally it discusses the potential channels through which information and communication technologies may contribute to social and economic development in developing world, with the special focus on the financial systems.

Impact of Innovative Financial Products on Financial Systems: Exchange Traded Products and the Polish Financial System

The subject under discussion is the problem of publications on the relationship between the e-government implementation process and the ability to compete. Today, it is estimated that the key objective of the informatisation of public administration at both central and local levels, is the preparation and implementation of electronic public services for citizens and businesses productively and efficiently. The e-government vision presented by the European Commission, and gradually implemented through EU Member States shows, that the process of developing e-government should serve as a tool to support the processes of governance. Projects related to the informatisation may influence the improvement of the education system and health services, create jobs, change how resources are managed, reduce transaction costs and the overall transformation of institutional nature. The currently used measuring tools of benefits from the implementation of public e-services and general development of e-government do not always show directly whether they are generated. The purpose of the publication is to identify and evaluate currently used indicators of electronic administration development in the context of measuring the benefits of this process, which are significant for improving the country’s competitiveness in the international arena.Exchange Traded Products (ETPs) are one of the most recent and most rapidly developing financial products. As their assets grow they have an increasing impact on financial systems in many countries, including the USA, UK or Japan. Development of ETPs is linked with many opportunities and threats for the local financial systems. Their correct assessment is becoming more difficult due to the growing complexity of the available products, thus posing problems not only for the participants of the financial markets (including buyers and sellers of ETPs as well as intermediaries) but also for the supervising authorities. The main ETP development trends (e.g. size of the global assets under management) are outlined in this article. Structural changes are discussed in the context of their impact on both local and global financial systems. One of the key topics is the consequences of the changing landscape of the most popular type of ETP – Exchange Traded Funds (ETFs). Simple and safe physical ETFs are being replaced by complicated synthetic ETFs, significantly increasing possible risks for the holders of such products, for other entities involved in their creation and distribution, and, consequently, for the whole financial system. The last part of the article is devoted to the Polish perspective on this topic. It may be argued that in Poland the role of ETPs (even ETFs) is still marginal. ETPs can influence the Polish financial system, however, through a number of links between Polish and foreign financial institutions and markets. As a result, fast transmission of the future shocks caused by such products is increasingly more probable.

Reshaping financial systems. New technologies and financial innovations - evidence from the United States, Mexico and Brazil

The paper unveils whether ICT diffusion determines development of financial innovation in emerging economies. Particularly, we examine the impact of ICT adoption on changing values of exchange traded funds in Brazil and Mexico, comparing it to the United States as reference country (benchmark). Our methodological framework includes descriptive statistics, logistic growth models (used to estimate ETFs growth) and generalized linear models (used to check for relationship between ICT adoption and ETFs value). In each case we run country-specific estimates. Data on ICT adoption (approximated by Internet Users and Fixed Broadband Subscriptions) are exclusively derived from World Telecommunication/ICT Indicators Database 2012 (16th edition), and exchange traded funds from funds’ providers and reports published by BlackRock. Analysis period is set for 2000-2012. Empirical findings collectively conclude that in all three countries, growth of ICT was pervasive, and this was accompanied by fast development of exchange traded funds in Mexico and in the United States, measured by increases in assets under management. Moreover, in the period 2002-2012 Mexico has caught up with the United States in terms of ETFs share in total investment funds (sum of assets of ETFs and mutual funds). In Brazil, even though ETFs growth rates were high, in 2012 share of ETFs in investment funds remained at a relatively lower level of 0.17%. Additionally, the relationship between ICT adoption and ETFs development was reported as strong, positive and statistically significant in each of analyzed countries.