Active labour market policies (ALMPs)

, 184, 192, 194

Aggressive investment policy

, 304–305

Aggressive working capital management

, 304–305

Agriculture

, 300, 310–311

Augmented Dickey Fuller (ADF)

, 256

test

, 138–139

Automobiles

, 284–285

Bank for International Settlements (BIS)

, 240

Banking sectors

, 251–252

Beta convergence

, 17–18

Beveridge curve, efficiency of Labour Market Based on

, 194–195

Buses

, 124

Business

, 301

and consumer surveys

, 9

management

, 300–301

sector

, 9

Capital

expansion approach

, 39

structure

, 300–301

Central and Eastern European (CEE)

, 140

Central bank

, 153–154, 247

Civil Service Act

, 216, 225, 227–228

Classification of the Functions of Government (COFOG)

, 142

Co-integration analysis

, 254–255

Commodity structure of foreign trade, changes in

, 44–47

Comparative fit index (CFI)

, 271–272

Competitiveness

, 35–36, 41, 44

paradigm

, 36–38

Conservative financing policy

, 310–311

Conservative investment policy

, 304–305

Conservative strategy

, 303

Conservative working capital management

, 304–305

Construction sector

, 308

Consumer sector

, 9

Contemporary economic theories

, 38–39

Control of Corruption (CC)

, 220

Convergence

criteria

, 19

process

, 3–4

Cooperation

, 253

Copert (software tool)

, 124

Corporate

in Czechia

, 105–111

in EU

, 107–108

reproduction process

, 110

taxation

, 104–105

Corporate income tax (CIT)

, 103–104, 106

Corporations Act

, 216

Correlation coefficient

, 140

Corruption

, 225–228

Corruption Perception Index (CPI)

, 225

COVID–19 pandemic

, 28, 31, 93, 95–96, 111

crisis

, 112

empirical results

, 292–295

methodology

, 288–292

overview of Czechia’s export

, 282–285

performance among exporters and impact on export from Czechia to Germany

, 286–288

Credit

boom

, 233–234

shocks

, 247

Criticism, effects of exchange rate commitment on

, 76–81

Cross-correlation

, 139–140

Cyclicality

, 147

Czech economy

, 1–2, 87–88, 157, 282, 305

external economic position development

, 11–15

key qualitative macroeconomic indicators development

, 9–11

key quantitative macroeconomic indicators development

, 2–9

Czech housing market

, 175–176

Czech koruna (CZK)

, 14, 51–52, 55–56, 88–90, 99–100

Czech labour market

, 184

labour market institutions and effects

, 184–194

Czech National Bank (CNB)

, 1–2, 51–52, 71–72, 87–88, 91, 154–155, 233

adverse macroeconomic situation in early twenties in Czechia

, 90–92

current strategy of CNB in fight against inflation

, 98–100

dilemma of Governor of

, 93–98

effects of exchange rate commitment on economy and criticism

, 76–81

exchange rate commitment

, 72–73

exchange rate system and CNB’s foreign exchange reserves

, 81–84

foreign exchange interventions

, 81

functioning of exchange rate commitment

, 74–76

two decades of macroeconomic turbulence in Europe and worldwide

, 88–90

Czech Statistical Office (CZSO)

, 19, 282–283

data

, 284

Czechia

, 11, 128, 281–282

adverse macroeconomic situation in early twenties in

, 90–92

characteristics of working capital management in selected economic sectors of

, 305–312

contribution of ICT sector in Czechia to innovation and economic growth

, 269–274

corporation taxation in

, 105–111

depreciation of tangible assets in

, 108–110

development of government expenditure

, 142–146

economic convergence

, 24–26

effects of indebtedness on GDP Growth in

, 239–247

employment polarisation and neighbouring countries

, 204–210

export

, 282–285

factors of adverse macroeconomic development in

, 93–98

fiscal situation in

, 31–32

inflation expectations data in

, 155–161

inflation expectations measurement in

, 154–155

institutional environment in

, 220–225

international competitiveness strategy of

, 39–41

literature review

, 140–142

methodology and data

, 138–140

performance among exporters and impact on export from Czechia to Germany

, 286–288

private and public indebtedness and dynamics in

, 232–233

regional housing prices in

, 175–180

relationship between GGE and economic growth

, 146–149

support for research and development

, 110–111

tax instruments and tax base construction

, 107–108

tax loss deduction

, 111

tax mix in

, 111–114

taxation of incomes

, 188

Data Envelopment Analysis (DEA)

, 256

Deflation

, 73

Depreciation of tangible assets in Czechia

, 108–110

Determinants of housing prices

, 172

Digitalisation

, 273

Displaced middle-skilled workers

, 202

Econometric techniques

, 254–255

Economic and Monetary Union (EMU)

, 17–18

Economic convergence

, 17–18

Economic growth

, 41, 44, 233, 251–252

changes in territorial and commodity structure of foreign trade

, 44–47

competitiveness paradigm

, 36–38

contemporary economic theories

, 38–39

contribution of ICT sector in Czechia to

, 269–274

institutional environment and corruption

, 225–228

institutional environment in Czechia

, 220–225

institutions

, 216–218

international competitiveness strategy of Czechia

, 39–41

linking competitiveness, international trade and

, 41–44

quality of institutional environment and measurement

, 218–220

relationship between GGE and

, 146–149

Economic internalization, theory of externalities and need for

, 122–123

Economic performance

, 26–27, 218

Economic sentiment indicator (ESI)

, 1–2, 9

Economic theory

, 42–43

Economy

, 299–300

effects of exchange rate commitment on

, 76–81

Efficiency of banking

, 252

Emission parameter calculations and road transport damage cost appraisal, results of

, 125–128

Employment polarisation

, 199–200

data and methods

, 203

empirical evidence and motives for studying employment polarization

, 200–202

employment polarisation in Czechia and neighbouring countries

, 204–210

Employment protection legislation (EPL)

, 184, 186

Endogenous growth theory

, 39

Environmental Kuznets curve (EKC)

, 122–123

Estimated coefficients

, 294

Euro area (EA)

, 17–18

fiscal situation in

, 31–32

nominal convergence

, 18–23

real convergence

, 23–24

Europe, two decades of macroeconomic turbulence in

, 88–90

European Central Bank (ECB)

, 18, 89

European Climate Act

, 157–158

European Commission, The

, 18, 106

European Union (EU)

, 1–2, 18, 40, 88, 184, 220–221, 232, 252–253, 266, 282

accession

, 55–56

corporate taxation in

, 107–108

countries

, 133

European Union Labour Force Survey (ELFS)

, 269

Eurostat

, 94

data

, 24, 27, 142–143

Excessive growth in Czech

, 172

Exchange rate

, 13–14

data

, 55–58

literature review

, 52–54

methodology

, 54–55

results

, 59–63

system and CNB’s foreign exchange reserves

, 81–84

Exchange rate commitment

, 72–73

effects of exchange rate commitment on economy and criticism

, 76–81

functioning of exchange rate commitment

, 74–76

Expectations

, 155, 157–159

Exports

, 282–284

External balance

, 11

External economic position, development of

, 11–15

Federal Reserve System (FED)

, 89

Financial crisis

, 156–157

Financial development (FD)

, 255, 267

Financial independence

, 308–309, 312

Financial institutions

, 252–253

data and methodology

, 255–256

empirical analysis and results

, 256–259

literature review

, 252–255

Financial policy (FP)

, 303, 305

Financial stability

, 252, 254

Financing policy of working capital

, 309–310

Fiscal criterion

, 20–21

Fiscal policy instruments

, 122

Fiscal situation in Czechia and EA

, 31–32

Flexibility of labour market

, 184

Flexible investment policy

, 310–311

Foreign direct investment (FDI)

, 267

Foreign exchange interventions

, 80, 98–99

Foreign trade, changes in territorial and commodity structure of

, 44–47

Freedom of Access to Information Act

, 216

Galloping inflation

, 90

and recession

, 90–92

Gender inequality index (GII)

, 266

General government expenditure (GGE)

, 138, 142

relationship between GGE and economic growth

, 146–149

Generalised method of moments (GMM)

, 240

estimation

, 288–289

Germany, performance among exporters and impact on export from Czechia to

, 286–288

Global economic crisis

, 156–157

Global financial crisis

, 231–232

Government Effectiveness (GE)

, 219

bonds

, 238

criterion on sustainability of government financial position

, 20–23

development of government expenditure

, 142–146

spending

, 138

Granger causality

, 148

test

, 140, 257–259

Gross domestic product (GDP)

, 1–2, 4, 18, 40, 54–55, 113, 266

effects of indebtedness on GDP growth in Czechia

, 239–247

Gross fixed capital formation (GFF)

, 268

Gross savings rate of households (GSRH)

, 6–7

Heavy goods vehicles (HGV)

, 124

Heckscher–Ohlin theorem

, 39

Heteroskedasticity-and autocorrelation-consistent weighting matrix (HAC weighting matrix)

, 240

High-skilled workers

, 203

Hodrick-Prescott filter (HP filter)

, 4–5, 139

Household indebtedness

, 233–234

Housing

demand for

, 233–234

prices

, 172

Human development

, 266

Human development index (HDI)

, 266

ILOSTAT database

, 203–204

Industrial production index (IPI)

, 1–2

Industry-level data

, 53, 63, 67

Inflation

, 72–73

current strategy of CNB in fight against

, 98–100

data and variables

, 162–163

inflation expectations data in Czechia

, 155–161

inflation expectations measurement in Czechia

, 154–155

macroeconomic determinants of

, 162

persistence

, 163–164

results

, 163–165

targeting regime

, 153–154

Information and communication technology (ICT)

, 266

contribution of ICT sector in Czechia to innovation and economic growth

, 269–274

diffusion

, 275

literature review

, 267

methodology and data

, 267–269

Innovation, contribution of ICT sector in Czechia to

, 269–274

Institutional environment

, 215–216, 225, 228

in Czechia

, 220–225

quality of institutional environment and measurement

, 218–220

Institutional quality

, 217

Institutions

, 216–218

Insurance sectors

, 251–252

International competitiveness strategy of Czechia

, 39–41

International Institute for Management Development (IMD)

, 41

International Monetary Fund (IMF)

, 83

International trade

, 35–36, 39, 41, 44, 54–56

International trade static models

, 39

Investment policy (IP)

, 302, 305–306

J-curve theory

, 53

Job

polarization

, 200, 266

search theory

, 187

Johansen cointegration test

, 59

Key qualitative macroeconomic indicators, development of

, 9–11

Key quantitative macroeconomic indicators, development of

, 2–9

L-category vehicles

, 124

Labour

costs

, 27

productivity

, 270–271

Labour force participation (LFP)

, 267

Labour market

, 200

active labour market policies

, 192–194

efficiency of labour market based on Beveridge curve

, 194–195

employment protection legislation

, 184–186

institutions and effects

, 184–194

minimum wages

, 186–187

payroll taxes

, 188

real convergence of

, 27–31

trade unions

, 191–192

unemployment benefits

, 187–188

Light utility vehicles (LUV)

, 124

Liquidity

, 301, 304

Long-term funds

, 303

Long-term interest rates, criterion on

, 19–20

Long–run effects of credit shocks

, 247

Low-skilled workers

, 203

Maastricht convergence criteria

, 18

Macroeconomic determinants of inflation expectations

, 162

Macroeconomic performance

, 7–9

Macroeconomic turbulence in Europe and worldwide, two decades of

, 88–90

Managed floating exchange rate regime

, 51–52

Maximum likelihood estimator (ML estimator)

, 269

Middle class

, 201–202

Middle-skilled workers

, 203

Ministry of Finance of the Czech Republic

, 31–32

Moderate policy

, 302

Monetary policy

, 52, 88, 153–154

regimes

, 154

Motor Vehicle Manufacturing

, 286–287

Multiple indicators and multiple causes (MIMIC)

, 267–268

National economy

, 299–300

Net replacement ratio (NRR)

, 188

New Civil Code

, 216

New Hybrid Keynesian Phillips Curve

, 163

Nitrogen oxides (NOX)

, 122

Nominal convergence. (see also Real convergence)

, 18–23

criterion of price stability

, 18–19

criterion on long-term interest rates

, 19–20

criterion on sustainability of government financial position

, 20–23

Non-financial corporations (NFCs)

, 232

Non-tradable industries

, 235–236

Nonfinancial Corporate Debt

, 234–237

One-year moving average (1Y–MA)

, 173–174

Organisation for Economic Co-operation and Development (OECD)

, 1–2, 10–11, 266

Organisations

, 219–220

Output gap

, 4–5

Panel data model

, 172

Particulate matter (PM)

, 122

Passenger vehicles (PV)

, 124

Payroll taxes

, 188

Pearson’s Correlation Coefficient

, 113–114

Personal income tax (PIT)

, 103–104

Political Stability and Absence of Violence/Terrorism (PV)

, 224

Price stability, criterion of

, 18–19

Private indebtedness and dynamics in Czechia

, 232–233

Property Index Overview of European Residential Markets

, 175

Property taxes

, 112–113

Public debt and risks entailed

, 237–239

Public indebtedness and dynamics in Czechia

, 232–233

Public Procurement Act

, 216, 225

Purchasing power parity (PPP)

, 24

Purchasing power standards (PPS)

, 24

Quality of institutional environment

, 216

and measurement

, 218–220

Rankings of international organizations

, 40–41

Real convergence. (see also Nominal convergence)

, 18, 23–24

of labour market

, 27–31

of relative economic level

, 24–27

Real economic growth

, 26

Real effective exchange rate (REER)

, 14

Regional differences

, 181

Regional housing prices in Czechia

, 175–180

data and methodology

, 174–175

literature review

, 172–174

Register of Motor Vehicles (RMV)

, 123–124

Regression analysis

, 177–178

Regulations

, 185

Regulatory Impact Assessment (RIA)

, 216

Regulatory Quality (RQ)

, 219

Reinvestment

, 110

Relative economic level, real convergence of

, 24–27

Relaxed policy

, 302

Research and development (R&D)

, 145–146

Restricted policy

, 302

Return on assets (ROA)

, 288–289, 300, 310–311

coefficients

, 294–295

Return on equity (ROE)

, 288–289

Return on investment (ROI)

, 302

Return on total assets

, 288

Road tax

, 128–132

Road Tax Act

, 132

Road transport

, 122

results of emission parameter calculations and road transport damage cost appraisal

, 125–128

taxes and fees related to

, 132–134

Root mean square error of approximation (RMSEA)

, 271–272

Rule of Law (RL)

, 220

Sectoral indebtedness

effects of indebtedness on GDP Growth in Czechia

, 239–247

household indebtedness

, 233–234

nonfinancial corporate debt

, 234–237

private and public indebtedness and dynamics in Czechia

, 232–233

public debt and risks entailed

, 237–239

Short-term business statistics (STS)

, 5–6

Short-term funds

, 303

Short–run effects of credit shocks

, 247

Sigma convergence

, 17–18

Skill-biased technological change (SBTC)

, 200

Stabiliser

, 140, 147–148

Stagflation

, 88

Standard International Trade Classification (SITC)

, 56–57

Standardised root mean square residual (SRMR)

, 271–272

State Fund for Transport Infrastructure (SFTI)

, 133

Structural change

, 210

Structural equation model (SEM)

, 268

Sulphur dioxide (SO₂)

, 122

Supply-side determinants

, 173–174

Sustainability of government financial position, criterion on

, 20–23

Sustainable development index (SDI)

, 270

Sustainable economic growth

, 122

Swiss National Bank (SNB)

, 76

Systemic competitiveness

, 35–38

Tax

and fees related to road transport

, 132–134

base construction

, 107–108

data and methods

, 123–125

deductions

, 108

instruments

, 107–108

loss deduction

, 111

mix in Czechia

, 111–114

policy implications

, 128–134

rate

, 104, 106

results of emission parameter calculations and road transport damage cost appraisal

, 125–128

revenues

, 104

road tax

, 128–132

theory of externalities and need for economic internalisation

, 122–123

Technical zero

, 89–90

Technology gap

, 38–39

Territorial structure of foreign trade, changes in

, 44–47

Theory of externalities and need for economic internalisation

, 122–123

Three-year moving average (3Y–MA)

, 173–174

Tolerance Patent

, 222–224

Tractors

, 124

Trade

balance

, 53

credit

, 301–302

unions

, 191–192

Trade openness (TO)

, 267

Transport Research Centre (TRC)

, 123–124

Transport sector

, 121–122

Treaty on the Functioning of the European Union (TFEU)

, 18

Two-tier system

, 185

Unemployment

, 28–29

benefit system

, 187–188

rate

, 1–2, 7, 9

US dollars (USD)

, 76

VAT revenues

, 112

Vector autoregressive model (VAR)

, 256

modeling

, 254–255

Vehicle Testing Stations (VTS)

, 123–124

Voice and Accountability (VA)

, 219, 222, 224

Volatile organic compounds (VOCs)

, 122

Working capital management of Czech companies

, 300–301

characteristics in selected economic sectors of Czechia

, 305–312

data and methodology

, 304–305

influence on company profitability

, 310–312

theoretical basis of

, 300–304

type of working capital financing policy

, 308–310

type of working capital investment policy

, 306–308

World Bank (WB)

, 240

World Economic Forum

, 41

World Openness Index

, 11

Worldwide Governance Indicators (WGIs)

, 219–220

Zero integration

, 104–105