Article III: GC–MS characterization of novel artichoke (Cynara scolymus) pectic-

Therefore, this concluding chapter discusses the results, for the limitation of the methodology and the policy conclusion for each chapter in turn.

Chapter 1 of the thesis provides a short description of the key reforms, with respect to Capital Account Liberalization in Poland; it also describes the main features of each chapter.

Chapter 2 describes existing measure of capital control and identifies their strengths and weakness. The CAL measures are mainly divided into two categories, namely de jure or de facto measures. As the chapter discusses, The CAL measures are quite imprecise, because they are based on imprecise capital flow classifications and government regulations. Moreover, a majority of the CAL measures are based on the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER), which also leads to a lack of diversification between measures. The chapter argues, that the best measure should include de jure and de facto features of CAL measure characteristics, which suggests that the analysis should be brought to a micro-level. In this manner, these techniques were used to avoid capital controls and shift capital across borders, which are not detected by government agencies; consequently, they might be captured using these measures.¹ Moreover, Chapter 2 proposes three re-constructed measures to capture the CAL effect on the real economy.

Chapter 3 analyses, determinates the Capital Account Liberalization process with respect to the investigation on economic growth and financial instability on a cross-country level. The CAL process is measured based on a selection of CAL indicators from Chapter 2. The first part of the empirical analysis investigates using a Linear Probability Model. Thereafter, a Fixed Effect Panel model analysis and investigates the impact of different determinants on the intensity of CAL process. These results, suggest that there is little evidence of economic growth impact on this liberalization process, the main reasons being political stability and differences between interest rates. Chapter

1 Income-corporate tax evasion or money laundering (see Mathieson and Rojas-Suarez, 1992; De Boyrie et al.,200;, Sohn,2002; Forbes, 2007)

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3 also has some limitations with regards to the sample size of countries and the time period. However, the time period was chosen to be consistent with the sector-level analysis for Poland.

Chapter 4 examines the levels of productivity, production and capital in Poland over the period between 1995 and 2007. Different TFP calculation were used and independent variable sets were examined, the comparability of TFP estimates were derived from two main techniques such as, TFP index (non-parametric approach) and TFP OLS (parametric approach). This analysis shows, that there is an upward trend of productivity, which could have happened during the intensive process of privatization and capital account liberalization, and during certain stabilizations of macro-economic situations. There are some limitations to the results obtained in Chapter 4. Firstly, there is an issue with regards to the deflation factor, which should vary over different sectors. However, it was still possible to obtain consistency over the time indicator.

The second methodological issue concerns the period of analysis; so the period chosen was to have consistent data according to the same classification (NACE Rev 1.1).

Chapter 5 examines the relation between CAL and productivity growth at the sectoral level. The literature review on productivity is determined by number of characteristics that is important to determine productivity growth. These include, the characteristics of the firm (investment policy, R&D, technology, human capital), characteristics of the country policy (privatization, EU integration, Trade openness) and industry characteristics (sector financial dependence, sector liquidity dependence).

The chapter also examines productivity changes by two strategies; the first strategy focuses on analyzing the CAL impact on TFP through sector characteristics, both sets of results suggests that the CAL process has a mainly positive robust impact on the TFP.

Moreover, the sectors which are more financially dependent, experience a significantly larger increase in TFP after the CAL process. The second empirical strategy focuses on the proposal, for a capital flow transmission mechanism, which allows for the construction of a proxy CAL measure; which confirms that there is a positive impact on

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TFP through the CAL process, showing that this impact could explain the results of allocate efficiency.

To sum up, this thesis has examined the changes in Capital Control regulations with respect to Polish productivity through a period of significant political and economic changes. The analysis of Capital Account Liberalization changes over time and cross-country, has been examined and the structures of Capital control changes have been investigated. The methodology, although not without limitations, has used several practical techniques for distributional analysis using the best source of data available for such an analysis. The contribution of this thesis goes far beyond simply providing more “statistics” on productivity and the CAL process for the case of Poland.

Furthermore, this thesis also contributes to existing literature on capital account liberalization by overcoming certain empirical problems; firstly, it identifies and isolates the effects of CAL reform on sector level through capital flow transmission mechanisms, avoiding measurement problems in the explanatory variable. Second, with the help of a manufacturing sector database, it explores the forces that are driving output and productivity growth at the micro-level. Lastly, this thesis has also provided an additional method to capture the CAL process on a macro level. However, it acknowledges that further research is needed to consolidate some of the results on firm-level analysis and to fully test policy implications.

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