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on South East Asia |
| By: | Hsu, Chen-Min (Asian Development Bank Institute); Liao, Chih-Feng (Asian Development Bank Institute) |
| Abstract: | This paper investigates the prevailing financial regulatory structures and impact of the current financial turmoil on banking performance in four economies: the People's Republic of China (PRC); Hong Kong China; Singapore; and Taipei,China. Both the PRC and Hong Kong, China operate under a fragmented financial regulatory structure, while Singapore and Taipei,China have integrated structures. We examine the role of an integrated financial regulatory structure in helping financial institutions mitigate the impact of the financial crisis, using financial indicators of banks' capital structure and operating performance in these four economies between 2003 and 2008. Our analysis of the indicators reveals that banking performance under a fragmented financial regulatory structure is not worse than under integrated regulation. This implies that financial regulatory structure is not the main reason why Asian financial institutions suffered only limited losses from the current global financial crisis. However, given the growing complexity of the global financial system, and the relative weakness of current financial regulatory structures in Asia, this paper suggests that East Asian governments should refer to the Lamfalussy Process in the European Union and set up an Asia Financial Stability Dialogue to facilitate policy coordination for regional financial sector stability and development. |
| Keywords: | asian financial regulation; global financial crisis; asian banking; prc; asian financial institutions; asian financial sector |
| JEL: | F42 G18 G21 |
| Date: | 2010–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0221&r=sea |
| By: | Zhai, Fan (Asian Development Bank Institute) |
| Abstract: | Capitalizing on recent estimates of infrastructure financing requirements in Asia, this paper frames a scenario for infrastructure development in the region and estimates the external effects of infrastructure investment. It also assesses quantitatively the economy-wide welfare effects of developing regional infrastructure in Asia, using a global computable general equilibrium model. The results show that developing Asian economies would gain significantly from the expansion of regional infrastructure in transport and communication. With annual investment of around US$800 billion in transport, communication, and energy infrastructure during 2010-2020, developing Asia is likely to reap welfare gains of US$1,616.3 billion (in 2008 prices) in 2020, or 10% of projected aggregate gross domestic product. |
| Keywords: | asian infrastructure financing; asian regional infrastructure; asian infrastructure development |
| JEL: | C68 F15 |
| Date: | 2010–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0223&r=sea |
| By: | Bhattacharyay, Biswa (Asian Development Bank Institute) |
| Abstract: | To make Asia more economically sustainable and resilient against external shocks, regional economies need to be rebalanced toward regional demand- and trade-driven growth through increased regional connectivity. The effectiveness of connectivity depends on the quality of hard and soft infrastructure. Of particular importance in terms of soft infrastructure which makes hard infrastructure work are the facilitating institutions that support connectivity through appropriate policies, reforms, systems, and procedures and through promoting effective coordination and cooperation. Asia has many overlapping subregional institutions involved in national and regional energy, transport, and telecommunications infrastructure connectivity. However, these institutions are characterized as being less effective, informal, and lacking a clear and binding system of rules and policies. This paper draws linkages between connectivity, growth and development, governance, and institutions. It details the benefits the region could achieve by addressing needed connectivity enhancements and the connectivity and financing challenges it faces. In addition, it presents various institutional options for regional infrastructure financing. To build seamless Asian connectivity, Asia needs an effective, formal, and rules-based institutional framework. The paper presents a new institutional framework together with the organizational structures of two new regional institutional mechanisms, namely the Pan-Asian Infrastructure Forum and the Asian Infrastructure Fund. |
| Keywords: | asian infrastructure financing; asian infrastructure connectivity; asian institutions |
| JEL: | R10 R40 R42 R48 R50 R51 R58 |
| Date: | 2010–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0220&r=sea |
| By: | Owen O’Donnell; Anup Karan; Aparnaa Somanathan; Badri Raj Pande; Charu C. Garg; Chiu Wan Ng; Deni Harbianto; Eddy van Doorslaer; Gabriel M. Leung; Kanjana Tisayaticom; Keith Tin; Laksono Trisnantoro; Mohammed N. Huq; Piya Hanvoravongchai; Ravi P. Rannan-Eliya; Shiva Raj Adhikari; Yuhui Zhang; Yuxin Zhao |
| Abstract: | In this paper the benefit incidence of public health care subsidies in eleven Asian territories, including India, Indonesia and two provinces of China is examined. The use of concentration indices and a high degree of consistency in the application of methods provide results that, unlike much of the existing evidence, are comparable across countries.[Working Paper No.3] |
| Keywords: | public health care, benefit incidence analysis, Asia |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2626&r=sea |
| By: | Fan Zhai |
| Abstract: | Capitalizing on recent estimates of infrastructure financing requirements in Asia, this paper frames a scenario for infrastructure development in the region and estimates the external effects of infrastructure investment. It also assesses quantitatively the economy-wide welfare effects of developing regional infrastructure in Asia, using a global computable general equilibrium model. The results show that developing Asian economies would gain significantly from the expansion of regional infrastructure in transport and communication. With annual investment of around US$800 billion in transport, communication, and energy infrastructure during 2010–2020, developing Asia is likely to reap welfare gains of US$1,616.3 billion (in 2008 prices) in 2020, or 10% of projected aggregate gross domestic product.[Working Paper 223] |
| Keywords: | infrastructure, financing, Asia, communication,billion, gross domestic product, projected, aggregate |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2622&r=sea |
| By: | Kuhl Teles, Vladimir; P. Andrade, Joaquim |
| Abstract: | This article develops an econometric model in order to study country risk behavior forsix emerging economies (Argentina, Mexico, Russia, Thailand, Korea and Indonesia),by expanding the Country Beta Risk Model of Harvey and Zhou (1993), Erb et. al.(1996a, 1996b) and Gangemi et. al. (2000). Toward this end, we have analyzed theimpact of macroeconomic variables, especially monetary policy, upon country risk,by way of a time varying parameter approach. The results indicate an inefficient andunstable effect of monetary policy upon country risk in periods of crisis. However, thiseffect is stable in other periods, and the Favero-Giavazzi effect is not verified for alleconomies, with an opposite effect being observed in many cases. |
| Date: | 2010–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:eesptd:223&r=sea |
| By: | Hatairat Sakolwitayanon (Office of Agricultural Economics) |
| Abstract: | Thailand imports a large volume of table grapes from the United States of America. The Thai – U.S. Free Trade Agreement (FTA) will reduce tariff on imports and thus import value changes which will affect related sectors of Thai economy system. The objectives of this study are to estimate trend of importing quantity and value of table grapes from the U.S. caused by the reduction of import tariff under the FTA, and to evaluate the impact of the tariff reduction on related sectors of the Thai economy. The result found that the relative price of grape and real capita income elasticities of demand are -1.1 and 4.7, respectively. The relative price was expected to decrease while the real capita income increases. This would raise the import value and lead to the accumulation of 19,520.4 million baht from 2007 to 2017. The sectors related to the fruit orchard sector as an intermediate input users were least affected by 13.62 million baht decrease of the economic value. In contrast, the intermediate input sectors would be most affected by 6,587.80 million baht decrease of the economic value. These sectors were agricultural services sector, fertilizer, pesticide and insecticide sector, wholesale trade sector, basic chemicals sector, banking service sector, cutlery and hand tools sector, petroleum refinery gas separated plant sector, retail trade sector, and plastic wares sector. The government and related organizations should develop measures to reduce the impacts that may occur. An efficient restructuring of the agricultural production system of affected sectors is also recommended. |
| Keywords: | FTA, impact forecasting, import tariff, table grape |
| JEL: | Q17 N75 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:kau:wpaper:200902&r=sea |
| By: | Gala, Paulo; Libanio, Gilberto |
| Abstract: | The objectives of this paper are twofold. First, it intends to provide theoretical elements toanalyze the relation between real exchange rates and economic development. Our mainhypothesis is very much in line with the Dutch disease literature, and states that competitivecurrencies contribute to the existence and maintenance of the manufacturing sector in theeconomy. This, in turn, brings about higher growth rates in the long run, given the existenceof increasing returns in the industrial sector, and its importance in generating technologicalchange and increasing productivity in the overall economy. The second objective of this paperis empirical. It intends to analyze examples of successful exchange rate policies, such as Chileand Indonesia in the eighties, as a benchmark for comparison with countries where currencyovervaluation has taken place, such as Brazil. In the latter case, the local currency is beinginflated by large capital inflows, due to high domestic interest rates and to a boom in demandand prices of commodities in the international markets. It will be argued that the industrialsector bears most of the burden when the currency appreciates, and that Brazil risks at deindustrializationif there are no changes in the exchange rate regime. |
| Date: | 2010–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:eesptd:211&r=sea |
| By: | Brata, Aloysius Gunadi |
| Abstract: | The purpose of this paper is to explore the relationship between social and economic factors on the economic loss and number of victims of natural disaster occurring in Indonesia using a pooled data from 2004 to 2008 of all provinces. This study found income as measured by GDRP per capita have negative impact on the number of deaths as well as in the number of houses destroyed. It also suggests that the impact of natural disasters can be lowered by enhancing not only economic development but also human development. Therefore, regional development should consider both of developments in order to reduce the impact of natural disasters. Other important finding of this study is the positive impact of government expenditure on the disaster impact related to the number of deaths. It means that large local government expenditure will not guarantee the regions in reducing the impact of natural disasters. The positive impact of government size on the disaster impact is an interesting topic for a further study that may be related to other issue such corruption in the distribution of aid regarding disasters. The study also suggests that further research may use other appropriate indicator of human development in estimating the benefit of human quality in reducing the impact of natural disaster. |
| Keywords: | regional development; natural disaster; Indonesia |
| JEL: | O1 R1 Q54 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23606&r=sea |
| By: | Nick Bloom; Raffaella Sadun; John Van Reenen |
| Abstract: | There is a widespread sense that over the last two decades firms have been decentralizingdecisions to employees further down the managerial hierarchy. Economists have developed arange of theories to account for delegation, but there is less empirical evidence, especiallyacross countries. This has limited the ability to understand the phenomenon ofdecentralization. To address the empirical lacuna we have developed a research program tomeasure the internal organization of firms - including their decentralization decisions - acrossa large range of industries and countries. In this paper we investigate whether greater productmarket competition increases decentralization. For example, tougher competition may makelocal manager's information more valuable, as delays to decisions become more costly. Sinceglobalization and liberalization have increased the competitiveness of product markets, oneexplanation for the trend towards decentralization could be increased competition. Of coursethere are a range of other factors that may also be at play, including human capital,information and communication technology, culture and industrial composition. To tacklethese issues we collected detailed information on the internal organization of firms acrossnations. The few datasets that exist are either from a single industry or (at best) across manyfirms in a single country. We analyze data on almost 4,000 firms across twelve countries inEurope, North America and Asia. We find that competition does indeed seem to foster greaterdecentralization. |
| Keywords: | Decentralization, management practices |
| JEL: | L2 M2 O32 O33 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0966&r=sea |
| By: | Richard Pomfret (School of Economics, University of Adelaide); Uwe Kaufmann (School of Economics, University of Adelaide); Christopher Findlay (School of Economics, University of Adelaide) |
| Abstract: | Preferential tariff rates are often not utilized by qualified beneficiaries. Two reasons are complex rules of origin and erosion of preference margins as a result of multilateral trade liberalization. Our paper contributes to this research by providing evidence from high-quality disaggregated customs data of the utilization rate for Australia's preferential trading arrangements in the period 2000-9. A pattern of low ratios of imports receiving preferential tariff treatment to the total value of bilateral imports applies to all six of Australia's PTAs. Over half of Australian imports from New Zealand, the Pacific Island Forum economies, Thailand and Chile claimed preferential treatment in 2000, but all had lower utilization rates by 2009. This is primarily because of the increasing number of zero MFN tariff lines. Where MFN tariffs are positive, preferential tariffs are utilized and preferred trading partners pay lower customs duties. Positive utilization rates indicate that tariff preferences do have an impact, and at a minimum the exporters claiming the preferential tariff rate are better off than they would be in its absence, but by themselves utilization rates shed no light on the size of the impact on trade flows or on economic wellbeing. |
| Keywords: | preferential tariffs, trade liberalization, preference erosion |
| JEL: | F13 F15 F53 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:adl:wpaper:2010-13&r=sea |