Template-Type: ReDIF-Article 1.0 Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Title: Editorial message Abstract: Journal: Global Economic Review Pages: 3-3 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422857 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:3-3 Template-Type: ReDIF-Article 1.0 Author-Name: Chang Young Jung Author-X-Name-First: Chang Young Author-X-Name-Last: Jung Title: The role of the government in the Korean economic development: Its implication for Central Asian countries Abstract: Journal: Global Economic Review Pages: 7-18 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422858 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422858 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:7-18 Template-Type: ReDIF-Article 1.0 Author-Name: Werner Gumpel Author-X-Name-First: Werner Author-X-Name-Last: Gumpel Title: Caucasus, Turkey and the oil problem Abstract: Journal: Global Economic Review Pages: 19-27 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422859 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422859 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:19-27 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Rawski Author-X-Name-First: Thomas Author-X-Name-Last: Rawski Title: Who has soft budget constraints? Abstract: Journal: Global Economic Review Pages: 29-49 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422860 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:29-49 Template-Type: ReDIF-Article 1.0 Author-Name: Bruno Schonfelder Author-X-Name-First: Bruno Author-X-Name-Last: Schonfelder Title: Consideration of three major policy errors committed in East Germany Abstract: Journal: Global Economic Review Pages: 51-67 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422861 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422861 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:51-67 Template-Type: ReDIF-Article 1.0 Author-Name: Eun Kook Lee Author-X-Name-First: Eun Kook Author-X-Name-Last: Lee Title: A spectral analysis of political business cycles in the US Abstract: Journal: Global Economic Review Pages: 69-90 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422862 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422862 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:69-90 Template-Type: ReDIF-Article 1.0 Author-Name: Eric Heikkila Author-X-Name-First: Eric Author-X-Name-Last: Heikkila Author-Name: Koichi Mera Author-X-Name-First: Koichi Author-X-Name-Last: Mera Title: East Asia after 1997: Two alternative scenarios Abstract: Journal: Global Economic Review Pages: 91-101 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422863 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422863 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:91-101 Template-Type: ReDIF-Article 1.0 Author-Name: Ho-Won Jeong Author-X-Name-First: Ho-Won Author-X-Name-Last: Jeong Title: Structural adjustment and its alternatives for African development Abstract: Journal: Global Economic Review Pages: 103-121 Issue: 1 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422864 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:1:p:103-121 Template-Type: ReDIF-Article 1.0 Author-Name: David Keithly Author-X-Name-First: David Author-X-Name-Last: Keithly Title: Agricultural policies and markets in the new Germany Abstract: Journal: Global Economic Review Pages: 3-16 Issue: 2 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422865 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422865 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:2:p:3-16 Template-Type: ReDIF-Article 1.0 Author-Name: Kurt Jefferson Author-X-Name-First: Kurt Author-X-Name-Last: Jefferson Title: Can small nations survive in a Federalizing Europe?: The economic and political development of Slovenia Abstract: Journal: Global Economic Review Pages: 17-27 Issue: 2 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422866 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422866 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:2:p:17-27 Template-Type: ReDIF-Article 1.0 Author-Name: Chung-in Moon Author-X-Name-First: Chung-in Author-X-Name-Last: Moon Title: Market forces and security Abstract: Journal: Global Economic Review Pages: 29-49 Issue: 2 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422867 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422867 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:2:p:29-49 Template-Type: ReDIF-Article 1.0 Author-Name: Gil Soo Han Author-X-Name-First: Gil Soo Author-X-Name-Last: Han Title: Rapid industrialization, the birth of religio-economic entrepreneurship and the expansion of christianity in Korea Abstract: Journal: Global Economic Review Pages: 51-74 Issue: 2 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422868 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422868 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:2:p:51-74 Template-Type: ReDIF-Article 1.0 Author-Name: Byung-il Choi Author-X-Name-First: Byung-il Author-X-Name-Last: Choi Title: Political economy of telecommunications market opening in Korea: Interplay of domestic and foreign interests Abstract: Journal: Global Economic Review Pages: 75-91 Issue: 2 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422869 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:2:p:75-91 Template-Type: ReDIF-Article 1.0 Author-Name: Hyuk-Rae Kim Author-X-Name-First: Hyuk-Rae Author-X-Name-Last: Kim Title: Korean NGOs: Global trend and prospect Abstract: Journal: Global Economic Review Pages: 93-115 Issue: 2 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422870 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:2:p:93-115 Template-Type: ReDIF-Article 1.0 Author-Name: Jean-Pierre Lehmann Author-X-Name-First: Jean-Pierre Author-X-Name-Last: Lehmann Title: Comparative perspective of corporate governance: Europe and East Asia Abstract: Journal: Global Economic Review Pages: 3-36 Issue: 3 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422871 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422871 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:3:p:3-36 Template-Type: ReDIF-Article 1.0 Author-Name: Josephine Maltby Author-X-Name-First: Josephine Author-X-Name-Last: Maltby Author-Name: Roy Wilkinson Author-X-Name-First: Roy Author-X-Name-Last: Wilkinson Title: U.K. corporate governance in historical perspective Abstract: Journal: Global Economic Review Pages: 37-58 Issue: 3 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422872 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422872 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:3:p:37-58 Template-Type: ReDIF-Article 1.0 Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Jongryn Mo Author-X-Name-First: Jongryn Author-X-Name-Last: Mo Title: The political economy of corporate governance reform in Korea Abstract: Journal: Global Economic Review Pages: 59-75 Issue: 3 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422873 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422873 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:3:p:59-75 Template-Type: ReDIF-Article 1.0 Author-Name: Takeo Hoshi Author-X-Name-First: Takeo Author-X-Name-Last: Hoshi Title: Benefits and costs of Japanese system of corporate governance Abstract: Journal: Global Economic Review Pages: 77-95 Issue: 3 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422874 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422874 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:3:p:77-95 Template-Type: ReDIF-Article 1.0 Author-Name: Jae Yeol Kwon Author-X-Name-First: Jae Yeol Author-X-Name-Last: Kwon Title: Strong insiders, weak outsiders: A critical look at the Korean system of corporate governance Abstract: Journal: Global Economic Review Pages: 97-111 Issue: 3 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422875 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422875 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:3:p:97-111 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Dietrich Author-X-Name-First: Michael Author-X-Name-Last: Dietrich Title: Shareholders, stakeholders and the performance of large U.K. firms Abstract: Journal: Global Economic Review Pages: 113-130 Issue: 3 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422876 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:3:p:113-130 Template-Type: ReDIF-Article 1.0 Author-Name: Ungki Lim Author-X-Name-First: Ungki Author-X-Name-Last: Lim Title: Institutional shareholders dissenting actions in the Korean stock market Abstract: Journal: Global Economic Review Pages: 131-146 Issue: 3 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422877 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422877 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:3:p:131-146 Template-Type: ReDIF-Article 1.0 Author-Name: Roy Shin Author-X-Name-First: Roy Author-X-Name-Last: Shin Title: Interactions of science and technology policies in creating a competitive industry: Korea's electronics industry Abstract: This study analyzes the role of science and technology policy in the industrial transformation process. Using the case of South Korea's electronics and telecommunications industries, it examines how active interaction between the private and the public sector can help overcome problems of externalities, risk biases against infant industries and capability constraints often faced by many developing countries. As industry matures and contextual factors change, Korea's “competition policy” will have to adjust dramatically to a new reality. Journal: Global Economic Review Pages: 3-19 Issue: 4 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422878 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422878 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:4:p:3-19 Template-Type: ReDIF-Article 1.0 Author-Name: Taekwon Kim Author-X-Name-First: Taekwon Author-X-Name-Last: Kim Title: International technology licensing contracts, governance structure, and incentives: An empirical examination Abstract: The licensor's efforts and cooperation are essential to a successful technology transfer. There are two kinds of incentives to induce or discourage the licensor's efforts: ownership incentives and contractual incentives. Ownership incentive is defined as the incentive rooted in the licensor's financial equity involvement in licensee firm while contractual .incentive is the incentive provided through performance-dependent royalty arrangement stipulated by the licensing contract. This article empirically examines the effectiveness of these incentives in inducing licensors' efforts based on a survey data from 327 international technology licensing contracts. The findings are (1) (partial) ownership is a very effective incentive for the licensor to exert higher level of efforts; and (2) the contractual arrangement, however, is not an effective incentive. This article closes by discussing the implications of the results of this analysis. Journal: Global Economic Review Pages: 21-43 Issue: 4 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422879 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422879 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:4:p:21-43 Template-Type: ReDIF-Article 1.0 Author-Name: Burra Srinivas Author-X-Name-First: Burra Author-X-Name-Last: Srinivas Title: Political economy of transition of Brunei Darussalam: Towards retardation or development? Abstract: Brunei is one of those tiny economies of Southeast Asia with abundant reserves of oil. It is this oil and natural gas that have contributed to the wealth of this Islamic kingdom. However, with the reserves of oil and natural gas projected to run out in two or three decades, there have been efforts to diversify and develop the economy of Brunei. It is in this backdrop that we try to analyse the prospect of economic transition of this tiny economy. While there are many ways of bringing transition, we must note that Bruneian economy has a lacuna, namely, inadequate skilled labour force of its own. In addition, there are serious political and economic issues, such as the suppression of democratic rights of people, decline in the growth rates of Gross National Product (GNP) per capita as well as population, huge military spending, and decline in the share of agriculture and manufacturing in GDP. In this article, we purport to analyse the prospects for economic transition of Brunei in a political economy perspective. The first part discusses the political history of Brunei; the second section presents the relative strengths and weaknesses of its economy; then the paper analyses the trends in macro-economic aggregates of Brunei; and finally, it presents the conclusions of the study with reference to possibilities of its transition. Journal: Global Economic Review Pages: 45-64 Issue: 4 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422880 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422880 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:4:p:45-64 Template-Type: ReDIF-Article 1.0 Author-Name: Sim-Yee Lau Author-X-Name-First: Sim-Yee Author-X-Name-Last: Lau Title: Technology transfer in East Asia and its implications for regional cooperation Abstract: The importance of technology in economic development is indisputable. A large part of the developmental process in East Asian countries has been greatly accelerated by the transfer of technology from developed countries. This paper, based on detailed data obtained from selected samples of about 100 companies in Korea, Taiwan, Singapore, Malaysia, Thailand, and Indonesia, examines several key determinants of the process of acquisition, assimilation and internalization of imported technology in business enterprises. Drawing on the findings, this paper also suggests several implications for regional cooperation in enhancing the process of technology transfer in East Asia. Journal: Global Economic Review Pages: 65-88 Issue: 4 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422881 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422881 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:4:p:65-88 Template-Type: ReDIF-Article 1.0 Author-Name: Young-Chul Chang Author-X-Name-First: Young-Chul Author-X-Name-Last: Chang Title: Cross-cultural adjustment of expatriates: Theory and research findings on American and Japanese expatriates Abstract: Theory and research findings of expatriate adjustment were examined to gain a better understanding of the adjustment process. Empirical studies have been focused on the failure rates of expatriates rather than on their adjustment capacity in foreign societies. Few studies have attempted to assess the level of adjustment for both American and Japanese expatriates in the same cultural environment. Future studies need to investigate how one group of expatriates can be better-adjusted than another in different cultures, the differences in their adjustment to the different facets of cross-cultural adjustment and the factors that enable one group to outperform the other group. Journal: Global Economic Review Pages: 89-107 Issue: 4 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422882 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:4:p:89-107 Template-Type: ReDIF-Article 1.0 Author-Name: Jung-Hee Lee Author-X-Name-First: Jung-Hee Author-X-Name-Last: Lee Title: Debates over labor reforms in Post-Mao China (1978-1995) Abstract: Why was it that, from 1978 to 1995, the central government of the People's Republic of China did not successfully implement labor reforms? The paper explains the outcomes of China's labor reforms in a statist perspective. The hypothesis is that, despite labor reforms of 1978 to 1995, due to the limited autonomy of the central government, China has not successfully formulated and implemented employment reforms. Ideological coherence and organizational unity among the central party-state elites are the preconditions for the autonomy, or more accurately, relative autonomy of central governments. Conflicts and debates among various factions destroy the cohesion of the central government, weakening the relative autonomy of the central government to act as a coherent entity. Journal: Global Economic Review Pages: 109-135 Issue: 4 Volume: 26 Year: 1997 X-DOI: 10.1080/12265089708422883 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089708422883 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:26:y:1997:i:4:p:109-135 Template-Type: ReDIF-Article 1.0 Author-Name: Tsuneo Akaha Author-X-Name-First: Tsuneo Author-X-Name-Last: Akaha Title: International cooperation in establishing a regional order in Northeast Asia Abstract: Northeast Asia remains largely a geographic referent, not a political entity or even an economic unit. To explore the reasons why this region lags far behind other areas of the world in developing a regional identity and to explore areas where international cooperation is both desirable and possible, the Center for East Asian Studies of the Monterey Institute of International Studies held an international conference in June 1997, with participants from China, Japan, South Korea, Mongolia, Russia, and the United States. This article introduces the presentations and discussion at this conference and explores the prospects for regional cooperation. It identifies historical and contemporary sources of obstacles to regional cooperation, including those in the political, economic, security, and civilizational/cultural realms. It notes the fluidity and uncertainty in major power relations since the end of the Cold War and discusses the regional security implications of growing economic ties among the Northeast Asian countries. It also examines the potentials and limitations of regional cooperation at the nongovernmental level. Finally, it calls for further collaborative international research and discussion of problems, both continuing and emerging, that stand in the way of regional cooperation, particularly the issues of nationalism vs regionalism, political costs of economic interdependence, environmental security, and demographic changes and their economic, political, and security implications for the region. Journal: Global Economic Review Pages: 3-26 Issue: 1 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449723 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:3-26 Template-Type: ReDIF-Article 1.0 Author-Name: Yong-Suk Oh Author-X-Name-First: Yong-Suk Author-X-Name-Last: Oh Title: Strategic approach to the embodiment of regional cooperation in Northeast Asia Abstract: The traditional way of establishing an economic community is hard to apply to the Northeast Asian region. It is why a model peculiar to Northeast Asia is called for to build up an economic cooperation body. In this context I have presented a model as a device for approaching the establishment of the Northeast Asian economic cooperation system, which is called the “Wave-type Model”. The object of this paper is to deal with a strategic approach to the realization of the regional cooperation body in Northeast Asia by applying the Wave-type Model and by suggesting the inter-megalopolitan business belt in a hang glider shape on the prolongation of the Wave-type Model. The megalopolitan business belt is a regional cooperative system with economically important cities in Northeast Asia as the pivots. This is the way-out of breaking down the barriers hindering central governments in making a multilateral cooperation system. The inter-megalopolitan business belt is expected to play the role of a blast of wind to raise a “wave” for the Northeast Asian economic cooperation system. Journal: Global Economic Review Pages: 27-47 Issue: 1 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449724 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:27-47 Template-Type: ReDIF-Article 1.0 Author-Name: Yongsun Paik Author-X-Name-First: Yongsun Author-X-Name-Last: Paik Title: Open regionalism: An alternative to the regional trading bloc in East Asia? Abstract: As the regional economic integration around the world increases in intensity, the possibility of forming a trading bloc in East Asia looms large. A model is developed to test the viability of major trading blocs using a schematic, which measures the level of integration against the level of resistance. Given the prevailing internal and external problems, an Asian trading bloc, if any, is expected to be the one with a relatively low level of integration based on the open regionalism bridging the countries across the Pacific Ocean. Journal: Global Economic Review Pages: 48-62 Issue: 1 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449725 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:48-62 Template-Type: ReDIF-Article 1.0 Author-Name: Jung Mo Kang Author-X-Name-First: Jung Mo Author-X-Name-Last: Kang Title: The economic necessity of the Northeast Asian economic sphere Abstract: Integration is increasing rapidly. The main reasons why integration is increasing rapidly are the trade liberalization process under way in most developing and transitional countries and the conclusion of the Uruguay Round Agreements. Furthermore, regionalism is intrinsically supported by the multilateral trading system. Article XXIV of the GATT allows the establishment of FTAs and CUs under certain conditions. The provisions are designed to ensure that any such arrangements will encourage the creation of new trading opportunities among the members, as opposed to diverting trade away from non-members. This article elaborates on economic interdependence in Northeast Asia (NEA) and compares the NEA economic sphere with other major economic spheres. Journal: Global Economic Review Pages: 63-87 Issue: 1 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449726 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:63-87 Template-Type: ReDIF-Article 1.0 Author-Name: Miranda Schreurs Author-X-Name-First: Miranda Author-X-Name-Last: Schreurs Title: Environmental cooperation in Northeast Asia Abstract: The future quality of the environment in Northeast Asia will depend not only on the level of national attention paid to pollution control and environmental protection, but also to the effectiveness of cooperation and policy coordination among states at the regional level. It will be very difficult for Northeast Asia to develop quickly effective regional regimes for environmental protection because of the differences that exist among the states in the region in terms of economic levels, policy priorities, and political systems. Still, as environmental protection becomes more important in the region, regional environmental cooperation is emerging. It is a loose form of environmental cooperation that is enhancing dialogue among states of the region. Journal: Global Economic Review Pages: 88-101 Issue: 1 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449727 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:88-101 Template-Type: ReDIF-Article 1.0 Author-Name: Woo Jung Author-X-Name-First: Woo Author-X-Name-Last: Jung Author-Name: Kyttack Hong Author-X-Name-First: Kyttack Author-X-Name-Last: Hong Title: Regional labor flow and economic integration: The case of South and North Korea Abstract: This paper provides a conceptual framework for analyzing the labor movement between the two Koreas and its impact on the structure of industrial output in the South. In particular, the paper is concerned with the absorption pattern of the new labor supply from the North by the South. It also attempts to study the effects of the migrated workers on the wage rate and employment opportunities of the workers in the South. Three alternative approaches are introduced to this analysis. The first two utilizes the existing employment data that might suggest some clues to the future labor market behavior. The third method uses the input-output table to calculate the labor demand curve and generate the theoretical amount of additional demand for workers at the low wage level. Finally a simple general equilibrium model is constructed to check the macroeconomic consistency of the micro results. The analysis also provides theoretically plausible procedures for empirical application Journal: Global Economic Review Pages: 102-118 Issue: 1 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449728 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449728 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:102-118 Template-Type: ReDIF-Article 1.0 Author-Name: James Tang Author-X-Name-First: James Author-X-Name-Last: Tang Title: China's reunification and international security in Northeast Asia: After Hong Kong what? Abstract: This paper examines the implications of Hong Kong's reunification with China on cross-strait relationship between mainland China and Taiwan. It begins with a discussion of the international security situation in the region and the increasing importance of the People's Republic of China on regional security. The paper then addresses the political and economic consequences of the sovereignty change over Hong Kong on regional security, identifying the added strength to China on the one hand, and the Special Administrative Region's moderating influences on the other. Finally, it evaluates possible changes of the Beijing government's Taiwan policy. In conclusion, the paper argues that China's reunion with Hong Kong may have far reaching implications for regional security by enhancing China's national power as well as injecting an element of uncertainty in cross-strait relations. However, domestic developments and a more favourable international environment would facilitate the eventual resolution of the Taiwan question peacefully. Journal: Global Economic Review Pages: 119-131 Issue: 1 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449729 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449729 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:1:p:119-131 Template-Type: ReDIF-Article 1.0 Author-Name: Joseph Norton Author-X-Name-First: Joseph Author-X-Name-Last: Norton Title: The Korean financial crisis, reform and positive transformation: Is a second 'Han river miracle' possible? Abstract: There is general agreement that the initial onset of the East Asian Financial crisis was made possible by fundamental economic, political and financial market errors and weaknesses, but also that the market reaction to these vulnerabilities (as their extent was revealed) was exaggerated and disproportionate. This is based on a model of “self-fulfilling” crises, under which existing vulnerabilities make a crisis a possibility but not a certainty. Unfortunately, the analyses to date (whether from public or private, domestic or international sources) do not suggest at what point underlying vulnerabilities will move from being the potential for a crisis and the point at which a crisis is a certainty. This article suggests that in the face of potential self-fulfilling crises, countries should act in advance (i.e., to take pre-emptive action) to reduce their potential vulnerabilities, both to an initial crisis and to contagion resulting from the onset of a crisis elsewhere, whether through panic, fundamental problems or the unpredictable potentialities of vulnerabilities. In effect, a main emphasis of this presentation concerns the importance of ongoing and meaningful ("bottom-up") economic, financial and commercial law reform throughout the East Asian region (or other emerging regions) and the related enhancement of legal education in these subject matter areas. In this sense, this article further suggests that, in looking forward, these emerging countries need to consider the critical importance of a law-based, “building block” approach in addressing the long-term implications of the current East Asian financial crisis. Journal: Global Economic Review Pages: 3-36 Issue: 2 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449730 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449730 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:2:p:3-36 Template-Type: ReDIF-Article 1.0 Author-Name: Young Rok Cheong Author-X-Name-First: Young Rok Author-X-Name-Last: Cheong Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Young-ryeol Park Author-X-Name-First: Young-ryeol Author-X-Name-Last: Park Title: The Korean financial crisis: Causes, impact on FDI, and implications for Central Asia Abstract: Through the Asian financial crisis, many key international economic issues have come to the forefront the stability of the international financial system under the IMF, “Asian values”, the universal validity of the Asian Economic Development Model, China's leadership in the regional world economy, Japan's role in the region, and the immunity of Greater China from the current financial crisis. Currently, most Asian countries seem eager to redress structural problems involving the government sector, banking, and corporate governance. In the process of this full scale restructuring, Korea must reevaluate its economic relationship with Central Asia. This paper argues that Korean financial crisis stems basically from the system failure. Furthermore, since a small open economy carries with it intrinsic vulnerabilities, the government should be more careful in securing optimal foreign exchange, opening capital markets based on the economy's absorption capacity. In this respect, the banking industry should be run based on the profitability of capital. Once banking industries are distorted by the practice of government-led policy loans, it is more difficult to correct those customized distortions. The banking industry should play a laglecrv role as the “brain of the economy”, sensing abnormalities of the economy. Moreover, in today's increasingly interdependent global economic system, no single country can solve its problems without close coordination of its policy with the outside world. An early warning system to signal financial instability would help developing economies in modernizing and strengthening their domestic financial institutions and would also work as a supplement to the IMF standby fund. Also, human resource management has proven too important to be neglected. Central Asia could derive lessons from the above Asian “failure”, not the Asian “miracle”, to avoid inappropriate policies and to deepen its economic development. Journal: Global Economic Review Pages: 37-58 Issue: 2 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449731 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449731 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:2:p:37-58 Template-Type: ReDIF-Article 1.0 Author-Name: Christopher Dent Author-X-Name-First: Christopher Author-X-Name-Last: Dent Title: South Korea's foreign economic policy: New parameters and pressures examined Abstract: This paper considers the various challenges and pressures that confront Korea in developing its future foreign economic policy (FEP). It is set against the context of the country's recent financial problems but also examines previous economic developments in the Korean economy, how the parameters of FEP can be defined, the impact of globalisation and systemic change in the world economy, the tension between domestic and international forces in the crucible of FEP-making and offers a theoretical perspective to this latter discussion. Finally, the future direction of Korea's FEP is considered with particular reference to issues of economic diplomacy, diversification and the 'advocacy' principle. Journal: Global Economic Review Pages: 59-76 Issue: 2 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449732 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449732 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:2:p:59-76 Template-Type: ReDIF-Article 1.0 Author-Name: Youngjae Jin Author-X-Name-First: Youngjae Author-X-Name-Last: Jin Title: A model of measuring partisan seat safety for the discussion of legislative dominance under divided government Abstract: The study of divided government is one of important fields in public choice theory. American voters split their ballots as if intent on preserving divided party control. The U.S. House of Representatives has consistently been Democratic for much of the twentieth century. As indicated by Sprague, it is theoretically true that a number of significant consequences for partisan control of a legislature are entailed by the unequal distribution of seat safety under conditions of high levels of institutionalization. The problem is how to measure the institutionalization of partisan seat safety in a time-series. The model proposed by Sprague is somewhat awkward and complicated in measuring it. This paper provides a more plausible model and tests empirical data. Journal: Global Economic Review Pages: 77-94 Issue: 2 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449733 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449733 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:2:p:77-94 Template-Type: ReDIF-Article 1.0 Author-Name: Shuji Aoyama Author-X-Name-First: Shuji Author-X-Name-Last: Aoyama Title: Technology transfer and HRD in East Asia: Historical review of the semiconductor industry in Taiwan Abstract: The semiconductor industry in Taiwan has successfully developed over the past 20 years. The development of the industry can be featured by a spiral-type industrial policy deployment of the state with special emphasis on R&D and human resource development at public institutes and mobilization and organization of overseas human resources. All in all, the role played by the state has not been market-intervention but the coordination of various systems functioning in the private sector. Journal: Global Economic Review Pages: 95-106 Issue: 2 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449734 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:2:p:95-106 Template-Type: ReDIF-Article 1.0 Author-Name: Edit Eva Kiss Author-X-Name-First: Edit Eva Author-X-Name-Last: Kiss Title: Organizational renewal in Hungarian industry and its effects since 1989: The case of Budapest Abstract: By the end of the 1980s it had become obvious that Hungarian industry needed to be completely renewed. The organizational renewal, which began in 1989, is one of the most important component of this process. The main purposes of this study are to demonstrate the renewal through the example of Budapest, which is the most dynamically developing region of the country, and to evaluate its significant effects on the development of the whole industry. Journal: Global Economic Review Pages: 107-124 Issue: 2 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449735 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:2:p:107-124 Template-Type: ReDIF-Article 1.0 Author-Name: Hakun Kim Author-X-Name-First: Hakun Author-X-Name-Last: Kim Title: An origin of the financial crisis: The Korean case Abstract: Financial policies taken as a strategic means for Korean economic development in the past have generated the crisis, putting the Korean economy into a Ponzi game. A Ponzi game implies an arrangement in which debts are backed not by real assets, but by future debts. Such arrangement has merit for the fact that the initial flow of resources from lenders to borrowers is not ultimately offset by a flow of equal value in the opposite direction. The result is then a continuous exceeding of interest payments over profit earnings. Journal: Global Economic Review Pages: 3-13 Issue: 3 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449737 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:3:p:3-13 Template-Type: ReDIF-Article 1.0 Author-Name: Dianqing Xu Author-X-Name-First: Dianqing Author-X-Name-Last: Xu Author-Name: Ling Li Author-X-Name-First: Ling Author-X-Name-Last: Li Title: Crisis management in Asian countries Abstract: The approaches the Asian countries have undertaken to manage their economic crisis prevail in three different patterns: the Malaysian style, the Indonesian style, and the Thai-South Korean style. They present similarities in terms of restructuring their economy and adopting new economic policies, given that the main causes of the crisis have been originally embedded within their economic structures themselves. The differences among these patterns, however, concern their response toward international help, especially the IMF, as a means to save their falling economy. Journal: Global Economic Review Pages: 14-29 Issue: 3 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449738 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449738 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:3:p:14-29 Template-Type: ReDIF-Article 1.0 Author-Name: V. Yakubovsky Author-X-Name-First: V. Author-X-Name-Last: Yakubovsky Title: The financial crisis in Southeast Asia: Its implications for Russia Abstract: In the years 1996-97, Russia became a part of highly volatile, risky international market of speculative capital that had a destructive effect not only on its financial market and economy, but on the financial and economic situations of other countries. The lessons of the financial crisis in emerging markets, Russia among them, should be the subject of serious studies by Russian political, financial and academic communities. Though the solution of the domestic aspects of the Russian financial crisis lies on the shoulders of the Russian government, it might be advisable for Russia to take part in world community efforts to control the destructive aspects of international speculative capital activities. Journal: Global Economic Review Pages: 30-44 Issue: 3 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449739 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449739 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:3:p:30-44 Template-Type: ReDIF-Article 1.0 Author-Name: Gu-Ho Eom Author-X-Name-First: Gu-Ho Author-X-Name-Last: Eom Title: The corruption structure and economic freedom in East Asia Abstract: In contrast to the existing theories supporting the idea that authoritarian form of government has accelerated the process of economic development in the East Asian countries, the author asserts that corruption became inevitable under such type of government, which ended up impeding free market flow and bringing the economic crisis they are currently suffering from. Therefore, he argues that too much of government control and regulations must be avoided to stimulate the markets and revitalize their economies overall. Journal: Global Economic Review Pages: 45-64 Issue: 3 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449740 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449740 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:3:p:45-64 Template-Type: ReDIF-Article 1.0 Author-Name: David Chappell Author-X-Name-First: David Author-X-Name-Last: Chappell Author-Name: Lindsay Chant Author-X-Name-First: Lindsay Author-X-Name-Last: Chant Title: A non-linear time series model for the South Korean Won/British pound exchange rate : 1.1.97-9.30.98 Abstract: We construct a non-linear time series model for the South Korean Won/British Pound exchange rate for the period 1 January 1997 to 30 September 1998. This was a period of great upheaval in the South Korean financial markets. We show that a variant of the GARCH class of models provides a good fit to the data. We use the model to produce a set of one-step-ahead exchange rate forecasts for the first ten trading days of October 1998. The model produces better forecasts than the well-known random walk model. Journal: Global Economic Review Pages: 65-75 Issue: 3 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449741 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449741 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:3:p:65-75 Template-Type: ReDIF-Article 1.0 Author-Name: Dan Hemmings Author-X-Name-First: Dan Author-X-Name-Last: Hemmings Author-Name: Jill Solomon Author-X-Name-First: Jill Author-X-Name-Last: Solomon Title: Corporate governance and stock market duration for South Korea and the USA Abstract: In this paper we investigate the hypothesis that international differences in corporate governance systems may be portrayed through measuring the duration of stock markets. Stock market duration provides a means of measuring the average length of time for which investors retain their investment in a country's equity assets. We expect that countries classified as insider-dominated are likely to be characterised by longer stock market durations whereas outsider-dominated economies will have shorter stock market durations. By estimating the stock market duration of South Korea and the USA, we test our hypothesis and find that the USA, an outsider-dominated economy has a significantly shorter stock market duration than South Korea, an insider-dominated economy. Journal: Global Economic Review Pages: 76-92 Issue: 3 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449742 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449742 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:3:p:76-92 Template-Type: ReDIF-Article 1.0 Author-Name: Myeong-Hyeon Cho Author-X-Name-First: Myeong-Hyeon Author-X-Name-Last: Cho Title: Does Foreign direct investment mode choice affect the value of the investing firm? Abstract: This study provides direct evidence of the effect of foreign direct investment-mode choice (acquisitions vs. joint ventures) on the value of the investing firm. Evidence shows that joint ventures, on average, tend to be a value-creating investment mode when firms make initial investments in new foreign countries. On the other hand, acquisitions tend to be, on average, a value-creating investment mode when firms make subsequent investments in countries where they have operating experiences. The findings, consistent with previous research regarding the relation between mode choice and long-run performance of the ventures in foreign host countries, suggest that the strategic choice of investment mode is critical to creating value for investing firm. Journal: Global Economic Review Pages: 3-19 Issue: 4 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449743 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449743 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:4:p:3-19 Template-Type: ReDIF-Article 1.0 Author-Name: Tsuneo Akaha Author-X-Name-First: Tsuneo Author-X-Name-Last: Akaha Title: Asia-pacific regionalism and northeast Asia Subregionalism Abstract: Regionalism has increasingly become a growing trend around the world, the Asia-Pacific region being no exception. Both in the security area where the changing balance of power in Asia Pacific, particularly in Northeast Asia is prompting discussions of multilateral security and cooperation in the region, as well as on the economic front where much is being made of the growing international interdependent market integration in the Asia Pacific, such developments can be witnessed. However, very little has been said about the relationship between various schemes for multilateral cooperation within Northeast Asia and that in the broader region of Asia Pacific. The reasons why Northeast Asia has not emerged as a focal point of discussion either in the context of Asia-Pacific political economy or in connection with the Asean process , in addition to what kind of developments would elevate both cooperation among the Northeast Asian countries and the international community to a significant level are the questions that would be addressed in this analysis. Journal: Global Economic Review Pages: 20-44 Issue: 4 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449744 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449744 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:4:p:20-44 Template-Type: ReDIF-Article 1.0 Author-Name: David Smith Author-X-Name-First: David Author-X-Name-Last: Smith Title: Lessons of global neo-liberalism? The East Asian economic crisis reconsidered Abstract: Financial policies taken as a strategic means for Korean economic development in the past have generated the crisis, putting the Korean economy into a Ponzi game. A Ponzi game implies an arrangement in which debts are backed not by real assets, but by future debts. Such arrangement has merit for the fact that the initial flow of resources from lenders to borrowers is not ultimately offset by a flow of equal value in the opposite direction. The result is then a continuous exceeding of interest payments over profit earnings. Journal: Global Economic Review Pages: 45-63 Issue: 4 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449745 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449745 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:4:p:45-63 Template-Type: ReDIF-Article 1.0 Author-Name: Zhu Feng Author-X-Name-First: Zhu Author-X-Name-Last: Feng Author-Name: Jaewoo Choo Author-X-Name-First: Jaewoo Author-X-Name-Last: Choo Title: Asian financial crisis and East Asian economic cooperation: A Chinese view Abstract: The Asian financial crisis has devastated East Asia in many aspects. While social unrest was witnessed in some states, social problems have arisen in others because of the reforms undertaken. States undergoing reforms are learning their lessons at a very expensive price. These are lessons essential and vital to the cause of regional cooperation. From a theoretical perspective, without these lessons, the debates on the need and importance of regional cooperation would have gone on incessantly without any real progress. Although expensive, once the crisis-hit states succeeds in instituting the reforms attached to the financial package from international financial institution, the future prospects for regional economic cooperation are not too unfavorable. While China can afford to maintain its current position on the crisis, the rest has an obligation to fulfill its responsibility so as to lay a solid foundation for regional cooperation to ripen. Journal: Global Economic Review Pages: 64-81 Issue: 4 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449746 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:4:p:64-81 Template-Type: ReDIF-Article 1.0 Author-Name: John Bolton Author-X-Name-First: John Author-X-Name-Last: Bolton Title: The United Nations and ethnic conflicts Abstract: The involvement of the United Nations in ethnic conflicts is relatively new, made possible only by the end of the Cold War gridlock that enveloped the Security Council. Scholars are searching this recent history for theoretical insights to guide future decision making, but the empirical evidence—examined here in Cyprus, former Yugoslavia, and Rwanda/Burundi—suggests caution before making large theoretical judgments. The evidence does suggest that to be successful in ethnic conflicts, the United Nations requires strong and consistent American leadership, a leadership which in some cases will contradict the UN's dominant culture of negotiation and compromise. Journal: Global Economic Review Pages: 82-94 Issue: 4 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449747 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449747 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:4:p:82-94 Template-Type: ReDIF-Article 1.0 Author-Name: Gyoo-hyoung Kahng Author-X-Name-First: Gyoo-hyoung Author-X-Name-Last: Kahng Title: Zionism, Israel, and the Soviet Union: A study in the rise and fall of brief Soviet-Israeli friendship from 1945 to 1955 Abstract: Despite general Russian/Soviet hostility toward Zionism and the Jews, the Soviet Union supported the establishment of Israel in 1948. This study examines the important but neglected aspect of the twentieth century history: the short period of Soviet-Israeli friendship, its background, reasons for its existence and termination. This article concludes that the unexpected interlude of friendship was caused by a common interest: the expulsion of British presence from Palestine. After the two sides achieved what they had wanted, however, the relations between the two deteriorated very rapidly for two reasons: anti-Semitism in the Soviet Union and the intensification of the Cold War. The Soviet Union then realized that Israel belonged to the West and the Islamic world offered much more opportunities for the Soviets. Journal: Global Economic Review Pages: 95-107 Issue: 4 Volume: 27 Year: 1998 X-DOI: 10.1080/12265089808449748 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089808449748 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:27:y:1998:i:4:p:95-107 Template-Type: ReDIF-Article 1.0 Author-Name: John Wong Author-X-Name-First: John Author-X-Name-Last: Wong Title: Southeast Asian ethnic Chinese investing in China Abstract: China's growth due to high levels of domestic investment and savings was pushed further by Deng Xiaoping's economic reform and open-door policy in 1978. Through these changes, China became involved in international capitalism, which then led to the opening up of its Special Economic Zones and regions of Southeast Asia. Much of China's FDI originated from the ASEAN countries, namely Indonesia, Malaysia, the Philippines, Singapore and Thailand, where ethnic Chinese contributions have played an important role. Their investments have resulted in significant benefits for China's economy but are expected to decrease as the Chinese are becoming less dependent on them. This paper constitutes key historical and political forces that have shaped overall relations between China and Southeast Asia and displays different responses to the open-door policy as well as the problems faced by ethnic Chinese in their development of economic links with China. Journal: Global Economic Review Pages: 3-27 Issue: 1 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449749 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449749 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:3-27 Template-Type: ReDIF-Article 1.0 Author-Name: Doowon Lee Author-X-Name-First: Doowon Author-X-Name-Last: Lee Author-Name: Youngrok Cheong Author-X-Name-First: Youngrok Author-X-Name-Last: Cheong Title: Comparison of FDI into China between Korean firms and ethnic Chinese firms Abstract: Foreign direct investment (FDI) into China contributed greatly to the current rapid economic development of China. Many efforts have been given to more thorough analysis of entry mode of FDI in China. Due to the lack of available relevant data, however, micro level analysis has rarely included firm level analysis or research, which includes variables such as detailed industrial sector especially in manufacturing sector, investment size, equity share, and regional distribution of FDI. In this respect, this paper focuses on analyzing both entry mode and cross country comparison of Korean and overseas ethnic Chinese firms' FDI into China. The cooperative analysis would provide a variety of information for further analysis of identifying success and failure factors. Two different kinds of data sources are used in this analysis: one is highly aggregated lump sum data, and the other is more detailed survey level data. This paper will also contrast differences in business behaviors of Korean firms and overseas ethnic Chinese firms investing in China. Journal: Global Economic Review Pages: 28-53 Issue: 1 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449750 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449750 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:28-53 Template-Type: ReDIF-Article 1.0 Author-Name: Kang Heum Yon Author-X-Name-First: Kang Heum Author-X-Name-Last: Yon Title: The ownership structures of ethnic Chinese business in the Southeast Asian region Abstract: We investigate the impact of ownership structures on corporate performance with a sample of ethnic Chinese businesses in the Southeast Asian region. Through an extensive analysis of two groups of ethnic Chinese businesses, we reach the following conclusions. First, the entrenchment hypothesis is supported especially in the sample composed of Taiwan, Hong Kong and Singapore. This result implies that ethnic Chinese businesses, as far as listed on a stock exchange, should transfer from family-type business to modern business with widely dispersed ownership structures. Second, Taiwan, Hong Kong and Singapore are more modernized in company characteristics than other countries, especially in terms of well-dispersed ownership structures and low debt-to-equity ratio. These findings indicate the heterogeneity among countries even for ethnic Chinese businesses, which probably reflects the differences in institutional factors, the legal system, and industry structures resulting from each government's economic policy. Third, we could not find a significant difference in firm characteristics and the relationship of ownership concentration and corporate performance between ethnic Chinese and non-ethnic Chinese businesses in Malaysia. Hence, we cautiously conclude that the distinction among companies is not ethnic-specific, but country-specific. Journal: Global Economic Review Pages: 54-76 Issue: 1 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449751 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449751 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:54-76 Template-Type: ReDIF-Article 1.0 Author-Name: Wenyi Chu Author-X-Name-First: Wenyi Author-X-Name-Last: Chu Author-Name: Kung-Don Ye Author-X-Name-First: Kung-Don Author-X-Name-Last: Ye Author-Name: Mu-Lan Hsu Author-X-Name-First: Mu-Lan Author-X-Name-Last: Hsu Title: Taiwanese investment in Southeast Asia Abstract: For the “Go South” policy in Taiwan, small- and medium-sized enterprises played an important role in the 1980s and 1990s. This is an exceptional case as theoretical predictions and empirical evidence, found in most countries, have indicated that foreign direct investment originated mainly from large firms. This paper examines the determinants and investment strategies of Taiwanese FDI in Southeast Asian countries. First, it reviews the evolution and current situations of Taiwan's investment and the economic rationales during the 1980s and 1990s. Then, it identifies three types of investment strategies: defensive investors, initiative investors, and institutional investors, and compares them in terms of their different economic rationales, investment patterns and networking activities. Journal: Global Economic Review Pages: 77-90 Issue: 1 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449752 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449752 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:77-90 Template-Type: ReDIF-Article 1.0 Author-Name: William Fischer Author-X-Name-First: William Author-X-Name-Last: Fischer Title: Changing the Chinese competitive landscape: Reform of state-owned enterprises in China Abstract: China today and its industries are in flux economically and socially, moving towards a market that is significantly different from that of the past 50 years. With the rising increase of the West's interest in China's economy, foreign competition from multinational companies has risen and led to a change of China's landscape of customers and markets. In face of these changes, five tenets of faith regarding the Chinese economy were challenged to reveal that the country, in order to survive in the global market place, has undergone the following developments: build-up of national markets and brands, reliance on price competition, and classification of firms. Although China's struggle for its market presence as well as future growth encompasses many uncertainties for the future, it has become a country highly invested in. The question lies in what it exactly means to be in flux, and what changes need to be made when and how. Journal: Global Economic Review Pages: 91-104 Issue: 1 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449753 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449753 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:91-104 Template-Type: ReDIF-Article 1.0 Author-Name: Gab-Je Jo Author-X-Name-First: Gab-Je Author-X-Name-Last: Jo Title: The speed and order of economic liberalization in China and its comparison with Russia and Vietnam Abstract: This paper overviews and compares China's gradual economic liberalization with other transitional economies moving from planned economy to market economy such as Vietnam in Asia and Russia. China liberalized its economy more slowly than Vietnam and Russia. In the early stage of reform, China achieved macroeconomic stabilization by controlling credit through state banking system. However, state owned banking system has been handicapped in allocating capital efficiently. Some economists say that, in explaining the relatively bad Russian economy, Russia got the order of liberalization wrong. In contrast, within a short period of time, Vietnam completely transformed its economic system and achieved successful economic results. The economic liberalization in Vietnam was more radical and rapid than that of China. What transitional economies need in liberalizing their economy is a economic liberalization policy combined with strict financial supervision, strict monetary policy, fiscal reform and management of external debt structure. That is, it is not speed or sequence of economic liberalization but the state's capacity for setting up stable institutional incentive structure which is the crucial determinant of success. Journal: Global Economic Review Pages: 105-116 Issue: 1 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449754 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449754 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:105-116 Template-Type: ReDIF-Article 1.0 Author-Name: Douglas Sikorski Author-X-Name-First: Douglas Author-X-Name-Last: Sikorski Title: The financial crisis in Southeast Asia and South Korea: Issues of political economy Abstract: Foreign capital began a mass exodus from East Asia in the summer of 1997. A run on currencies and stock markets started in Thailand and spread throughout Southeast Asia, then on to South Korea before year-end. Thailand, Indonesia and South Korea had high ratios of foreign debt to local GDP and lacked sufficient reserves to meet short-term foreign exchange obligations. All required assistance from the International Monetary Fund which imposed a long list of reforms. However, there is a perception that the IMF has not been effective in the Asian Crisis so far. Pinpointing and effecting some control over the actual forces at work, including politics and other non-market factors that contributed substantially to the crisis, will not be easy. Obviously, South Korea and Southeast Asian countries need to restore confidence through reform of their financial institutions and practices, but all Asians still tend to do things in their own characteristic manner. “Asian capitalism” has not been entirely discredited and should be seen as part of the solution rather than the problem in bringing about financial development and change. Journal: Global Economic Review Pages: 117-129 Issue: 1 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449755 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449755 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:1:p:117-129 Template-Type: ReDIF-Article 1.0 Author-Name: Tsuneo Akaha Author-X-Name-First: Tsuneo Author-X-Name-Last: Akaha Title: Introduction: Northeast Asian regionalism Abstract: Journal: Global Economic Review Pages: 3-6 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449756 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449756 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:3-6 Template-Type: ReDIF-Article 1.0 Author-Name: Steve Chan Author-X-Name-First: Steve Author-X-Name-Last: Chan Title: Asia pacific regionalism: Tentative thoughts on conceptual basis and empirical linkages Abstract: Drawing on prior theoretical and empirical studies addressing relations in Asia and elsewhere, the following discussion probes (1) the idea of region, (2) the nature of linkage politics, and (3) the implications of major ongoing trends. It concludes by offering (4) some conflicting hypotheses about cooperation in Northeast Asia and APEC. The evidentiary basis for this discussion is quite modest and serves only to illustrate the necessity of more systematic research. Attention goes to broad pattern recognition and hypothesis generation rather than idiosyncratic explanations or unique claims about Asia Pacific or Northeast Asian developments. Journal: Global Economic Review Pages: 7-27 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449757 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449757 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:7-27 Template-Type: ReDIF-Article 1.0 Author-Name: Tsuneo Akaha Author-X-Name-First: Tsuneo Author-X-Name-Last: Akaha Title: Northeast Asian regionalism: Lessons from Europe, North America, Asia-pacific, and Southeast Asia Abstract: The article discusses the major characteristics of Northeast Asia as a region in terms of the distribution of power, the role of the state and of the market in the process of economic development and transnational market integration, and the cultural and other norms that inform the development of consensus on regional cooperation. It then reviews the experiences of regional cooperation in Europe, North America, Asia-Pacific, and Southeast Asia in terms of the same variables. Finally, the article discusses the lessons to be drawn from these experiences for the desirable and likely direction of regional cooperation in Northeast Asia. The basic argument is that in Northeast Asia, an incremental, consensus-based, evolutionary approach to region building is both likely and desirable to accommodate the disparate power distribution, varying levels of economic development, and diverse domestic dynamic, including cultural norms, that are found in the region. Journal: Global Economic Review Pages: 28-49 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449758 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449758 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:28-49 Template-Type: ReDIF-Article 1.0 Author-Name: Weixing Hu Author-X-Name-First: Weixing Author-X-Name-Last: Hu Title: China and Northeast Asian cooperation: The economic-security nexus Abstract: Deepening economic interdependence is bringing about a change in China's perception of regional cooperation in East Asia. China's integration with the world economy in general and Asian economy in particular has greatly increased the productivity and efficiency in the country, leading to a more favorable attitude in Beijing toward regional integration. The costs associated with such developments are however also raising concerns that China must fully consider the possible negative side effects, such as trade dependence, growing economic disparity, and vertical division of regional labor structure among others while proceeding with regional economic integration. In contrast to its more positive policies in the economic front, Chinese response to the growing call in Asia for a multilateral regional security framework has been in the negative. Motivated by its fear of multilateral security dialogues complicating its efforts to solve territorial disputes through bilateral means, Beijing maintains there is no need for multilateralism, arguing that the best way to develop security cooperation in the region is through building and managing healthy bilateral relations. Amidst increasing incentives for cooperation with the deepening regional economic networks, it remains to be seen how such interdependence will further develop the as of now fragile regional security relations in the East Asian region. Journal: Global Economic Review Pages: 50-67 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449759 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449759 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:50-67 Template-Type: ReDIF-Article 1.0 Author-Name: David Arase Author-X-Name-First: David Author-X-Name-Last: Arase Title: Japan's approach to economic cooperation in Northeast Asia: The role of subnational authorities Abstract: In contrast to the state to state level of relations, economic cooperation and regionalism is showing marked progress below the central government level in Northeast Asia. Subnational authorities are linking up to form networks of bilateral and multilateral relationship of increasing scope and density in a broad range of activities, especially in the areas of trade and investment. The subnational authorities most active in promoting regional cooperation tend to be those in the NET (natural economic territories) around the rim of Japan Sea. The motivating factors behind the Japanese subnational actors participating in the Japan Sea process are the desire to escape economic backwardness and lack of faith in solutions coming from the central government. The strategic objectives of these authorities is to strengthen its export orientations, developing production and services targeting overseas markets. Becoming an intermediary for expanded trade between the developed Pacific side of Japan and the Northeast Asia NET in the opposite side of the Japan Sea is another important reason for active involvement in the process. The subnational actors, despite lack of support from Tokyo, are making striking advances in the key dimensions used to measure regionalism, using their own limited resources and by relying on allies in the private sector both at the local and national level. Characterizing such Japanese approach to building international cooperation and promoting Northeast Asian regionalism among subnational actors is the aim of this analysis. Journal: Global Economic Review Pages: 68-78 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449760 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449760 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:68-78 Template-Type: ReDIF-Article 1.0 Author-Name: Peggy Falkenheim Meyer Author-X-Name-First: Peggy Falkenheim Author-X-Name-Last: Meyer Title: Russian security concerns in Northeast Asia: Impact of economic and military decline Abstract: Russian analysts no longer consider external, conventional, and military threats the primary concern on Russia's national security agenda. The end of the Cold War, the decline of Russia's military power, and ideological and physical changes within and surrounding the nation have caused security perceptions to be based primarily upon competent foreign diplomacy, especially with regard to the economic sphere. A look at Russia's neighbors in the Asia-Pacific region—China, Japan, and the two Koreas— provides lucid examples of Russia's transition from Cold War foreign policy orientation to present-day unconventional and non-military security threat responses. Journal: Global Economic Review Pages: 79-95 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449761 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449761 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:79-95 Template-Type: ReDIF-Article 1.0 Author-Name: Vladimir Ivanov Author-X-Name-First: Vladimir Author-X-Name-Last: Ivanov Title: Prospects for Russia's energy diplomacy in Northeast Asia Abstract: Northeast Asia's heavy dependence upon net energy imports has caused several economic and environmental complications for the countries of the region. In an attempt to counter these problems and overcome the vulnerability of the energy supply and demand, countries such as China, Japan, and the Republic of Korea have been directing their attention to the energy resources of eastern Russia. However, prior to any formal implementation of Russian energy resource utilization, these countries must consider the issue in a joint, multilateral manner, ensure energy security in the region, protect the environment, and, lastly, establish viable and sincere political relations with the United States. Journal: Global Economic Review Pages: 96-113 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449762 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449762 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:96-113 Template-Type: ReDIF-Article 1.0 Author-Name: Jaewoo Choo Author-X-Name-First: Jaewoo Author-X-Name-Last: Choo Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Ku-Hyun Jung Author-X-Name-First: Ku-Hyun Author-X-Name-Last: Jung Title: Regional cooperation in Northeast Asia: Beyond the economic crisis Abstract: Contrary to the prevailing views and thoughts on the impact of the Asian financial crisis on the future prospects for regional cooperation in Northeast Asia, the paper attempts to endorse the positive aspects of the issue by emphasizing what they had either overlooked or neglected in their observation. Claiming that regional cooperation is no longer an abstract term, the paper makes its case on the observation of the positive development of inter-national relations in the region and on the studies of seemingly feasible initiatives proposed by the regional states, such as FTA and AMF. The Asian crisis has drawn the states much closer to an unprecedented level in Journal: Global Economic Review Pages: 114-132 Issue: 2 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449763 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449763 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:2:p:114-132 Template-Type: ReDIF-Article 1.0 Author-Name: Youngse Kim Author-X-Name-First: Youngse Author-X-Name-Last: Kim Title: Towards the Asian information society through telecommunications trade and investment Abstract: The purpose of this paper is to investigate possibilities in promoting the movement of the Asian economies towards becoming information societies. We focus on promoting intra-industry trade and investment in the information and telecommunications sector. We take into account the impacts and implications of the economic crisis and its aftermath on ongoing implementation of liberalization policies in the telecommunications industry in various Asian countries. Concrete action plans are proposed to exploit synergistic cooperation within the region as follows: (i) industrial relocation and utilization of actual and potential industrial complementarities; (ii) vertical integration, horizontal meglecrvs, acquisitions, and consolidations of telecommunication companies to remedy over-investment; (iii) prompt establishment of common technical standards of telecommunications through international organizations and multilateral negotiations; (iv) suitable international division of sub-industries based on national capacity; (v) establishment of information centers as matchmakers between small-and-medium-sized enterprises with diverse IT needs; (vi) expansion of trade and investment by quid pro quo multilateral trade negotiations. Journal: Global Economic Review Pages: 3-30 Issue: 3 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449764 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:3:p:3-30 Template-Type: ReDIF-Article 1.0 Author-Name: Byung-il Choi Author-X-Name-First: Byung-il Author-X-Name-Last: Choi Title: Competition principles and policy in the APEC: How to proceed and link with WTO Abstract: There is a growing consensus that competition-oriented policy framework would be instrumental in achieving the Bogor goal of trade and investment liberalization by 2010/2020. As of now, only eight economies have the experience of operating competition policy for more than a decade. Many emerging economies of the APEC have only begun to introduce competition policy. The Auckland APEC Leaders Meeting of 1999 adopted the APEC competition principles. It is a significant step forward, but more hard work lies ahead: the issue of developing specific and concrete work program to implement the competition principles within the APEC and how to put competition policy in the much broader context of a multilateral trading system. The paper maps out a specific strategy to move the competition policy agenda forward at the APEC and how to link to the WTO and identifies the sources of such value-added and makes a proposal in order to best utilize them. Journal: Global Economic Review Pages: 31-48 Issue: 3 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449765 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:3:p:31-48 Template-Type: ReDIF-Article 1.0 Author-Name: Harri Ramcharran Author-X-Name-First: Harri Author-X-Name-Last: Ramcharran Title: Foreign direct investment and country risk: Further empirical evidence Abstract: Global political and economic changes over the last decade have resulted into massive capital inflows to developing countries, most of these flows are foreign direct investments. In light of threats of political instability in the forms of civil wars, illegal capital flight, financial market instability, and political corruption, etc., further assessment of country risk is warranted. We examine the relationship between FDI and political and economic risks for 26 countries for the years 1992, 1993, and 1994 by using regression analysis and cross section data. The results indicate a significant relationship between FDI and these risks. This study provides more reliable estimates by using a current and eclectic measurement of risks represented by Euromoney indexes of political and economic risks. In the previous studies the perception of risk was narrowly defined and also political instability events were mistakenly interpreted as political risks. Journal: Global Economic Review Pages: 49-59 Issue: 3 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449766 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:3:p:49-59 Template-Type: ReDIF-Article 1.0 Author-Name: Sangjoon Kim Author-X-Name-First: Sangjoon Author-X-Name-Last: Kim Title: Politics of the development of small and medium-sized firms in Japan Abstract: Since the 1980s, small and medium sized firms in Japan have adjusted themselves remarkably to the market changes of the post-Fordism industry, and have significantly contributed to the country's economy. This paper emphasizes the interaction of the state and local producers in building a social environment for nurturing the development of small and medium-sized firms in Japan. An important role assumed by the state is the creation of local firm-supporting institutions which have been the foundation of constructing regional industrial system. These local institutions were effectively utilized by the local producers of small and medium sized firms. In this process, central political power and local economic power fused in organizing 'production' in a new way of horizontal collaboration. Journal: Global Economic Review Pages: 60-75 Issue: 3 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449767 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:3:p:60-75 Template-Type: ReDIF-Article 1.0 Author-Name: Scott Snyder Author-X-Name-First: Scott Author-X-Name-Last: Snyder Title: Constructing a global architecture with an American blueprint: The ambivalent U.S. attitude toward Asian regional cooperation Abstract: In step with the global trend toward regionalism, there has been significant progress in the development of a regional institutional framework in Asia, although perhaps to a lesser degree than other parts of the world. This is evidenced by the establishment over the past decade of APEC, ASEAN Regional Forum, and other multilateral attempts to address specific security issues. The attitude of the United States toward the development of such institutions for regional cooperation has been quite ambivalent and its approach might be described as ad hoc, utilitarian or instrumental. This paper examines the rhetoric, politics, and policy of America's seemingly ambiguous and inconsistent approach to Asian regional cooperation in an attempt to illustrate the factors that shape U.S. policy toward such efforts. Journal: Global Economic Review Pages: 76-89 Issue: 3 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449768 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:3:p:76-89 Template-Type: ReDIF-Article 1.0 Author-Name: Jaewoo Choo Author-X-Name-First: Jaewoo Author-X-Name-Last: Choo Title: China's multilateral approach to world order: Implications for regional cooperation Abstract: Answer to inducing China's active and full participation in regional cooperation scheme in Northeast Asia has been long sought by many. In the course, what they have overlooked is China's willingness to participate in such scheme when the conditions of world order are met: a world order built upon Five Principles of Peaceful Co-existence, not dominated by one single individual power, and by which national sovereignty is fully guaranteed. Otherwise, China claims, prerequisites for cooperation, confidence and trust, would never be built among the concerned parties. In recent times, China has taken the initiatives to achieve this end, as reflected in its “summit diplomacy”. Thus far, the consequence of such an effort has been regarded very positive. Based on this observation, the paper explores the correlation between the consequence of China's omni-directional diplomacy and subsequent changes in its attitude toward cooperation at regional level. It finds that there is a strong correlation between the two variables as proven in ASEAN and ARF. Journal: Global Economic Review Pages: 90-103 Issue: 3 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449769 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:3:p:90-103 Template-Type: ReDIF-Article 1.0 Author-Name: Insill Yi Author-X-Name-First: Insill Author-X-Name-Last: Yi Title: Korean economic reforms after 1997 financial crisis Abstract: After the extremes of recession in 1998 caused by the Korean financial crisis and last year's surprisingly strong rebound, growth conditions for the Korean economy has been set to normalize in 2000. In this paper four major sectors' economic reform, such as financial, corporate, labor, and public sector, undertaken by D. J. Kim government are evaluated. General direction of the reform after financial crisis seems adequate. However, a clear-cut perspective on the government's role is needed to successfully implement the proposed reforms. Korea is drawing invaluable lessons from the last two years' turmoil. It is absolutely vital to construct and manage a sound economic system in tune with liberalization and globalization. Journal: Global Economic Review Pages: 3-29 Issue: 4 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449771 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449771 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:4:p:3-29 Template-Type: ReDIF-Article 1.0 Author-Name: Ku-Hyun Jung Author-X-Name-First: Ku-Hyun Author-X-Name-Last: Jung Title: National governance in South Korea and developing new state-business relations in the post crisis era Abstract: This paper is concerned with the political and economic reforms in Korea that have been implemented after the outbreak of the Asian crisis, and the newly emerging pattern of the social, political and economic governance in Korea. It will address the following questions in turn: Why did Asian economies suddenly fail in 1997? If the system was a major cause of the crisis, what aspects of the system were deficient? What were critical elements of old governance system? What are major reform measures that will reshape the governance system? What would be the shape of new governance system that will emerge in the post-crisis era? Will there be a new relationship between the state and big business? Journal: Global Economic Review Pages: 30-49 Issue: 4 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449772 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:4:p:30-49 Template-Type: ReDIF-Article 1.0 Author-Name: Youngrok Cheong Author-X-Name-First: Youngrok Author-X-Name-Last: Cheong Title: FDI and regional economic integration: A case of near Abstract: NEAR (North East Asia Region) economic integration is reemerging as one of the key issues in the process of recovering from the Asian economic crisis of 1997. Talks are no longer limited to traditional free trade agreements but have expanded to the Yen Bloc, AMF,1 and even RMB bloc, which are discussed informally among academicians and politicians. This paper attempts to show that dynamic intra-regional FDI (foreign direct investment) flow driven by market forces from late 1980s already began to act as an important catalyst to foster increased intra-regional economic integration. Factor exchanges accelerated commodity exchanges due mostly to intra-regional economic dynamism since the breakdown of the Cold-War, forced industrial restructuring caused by shaping new intra-regional division of labor, and market preemption effort seeking market potential in China. This, in turn, might result in what is referred to as “natural interdependence” in the intra-regional countries. This market-driven natural interdependence has stronger probability of evolving into an institutional economic integration if the market opening and crossing FDI proceeds further. Journal: Global Economic Review Pages: 50-69 Issue: 4 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449773 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:4:p:50-69 Template-Type: ReDIF-Article 1.0 Author-Name: Hakun Kim Author-X-Name-First: Hakun Author-X-Name-Last: Kim Title: The causes of the economic crisis: A synthetic approach Abstract: The purpose of this paper is to present a proposal that the Korean financial crisis was concurrently created with the real crisis and vice versa. This proposal is a synthetic approach of the two streams of thought on the economic crisis; the monetary and real approach. The key variable turns out to be the relative magnitude between weighted profit rates and weighted average rates, each of which represent each of the monetary and real sector. Journal: Global Economic Review Pages: 70-78 Issue: 4 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449774 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449774 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:4:p:70-78 Template-Type: ReDIF-Article 1.0 Author-Name: Yukiko Fukagawa Author-X-Name-First: Yukiko Author-X-Name-Last: Fukagawa Title: Asian NIES in the region's economic recovery and the options for South Korea: The potentials for Japan-Korea FTA Abstract: The purpose of this paper is to discuss the options for Korea's mid-term economic recovery from the financial crisis based on regional cooperation, especially through a Japan-Korea FTA and related possible changes. First, the paper will examine reform efforts undertaken by other MEs after the financial crisis, with a clear focus on intra-regional division of labor. The second part will explore what strategies ROK will be able to pursue if she wishes to establish competitive advantage like other NEs in the region. The Japan-Korea FTA (JKFTA here) will be proposed as one option with potential dynamic gains for ROK's development. Thirdly, the strategic character of JKFTA to maximize mutual advantage will be discussed with some political implications. Journal: Global Economic Review Pages: 79-101 Issue: 4 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449775 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449775 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:4:p:79-101 Template-Type: ReDIF-Article 1.0 Author-Name: Young-Han Kim Author-X-Name-First: Young-Han Author-X-Name-Last: Kim Title: The international policy coordination to reduce the financial volatility in north East Asia Abstract: This paper examines the feasibility of introducing the Tobin tax system to reduce financial volatility in international foreign exchange markets based on the understanding of financial crisis as a self-fulfilling crisis of speculators' belief system. Based on a model analysis, which assumes a speculator from a third country and two governments competing for capital inflows, this paper demonstrates that a country has a less incentive to deviate from the international policy coordination with respect to the Tobin tax system when the country shows less dependency on financial transaction business in its national income. In addition, when the country is more stable in its current account balance and foreign reserves, it is more likely that the country abides by the policy coordination. Therefore, it is required to offer such incentives as allowing all tax revenues to the collecting governments, when the participating countries are relatively more dependent on the financial transaction business as a source of national income. Journal: Global Economic Review Pages: 102-116 Issue: 4 Volume: 28 Year: 1999 X-DOI: 10.1080/12265089908449776 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265089908449776 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:28:y:1999:i:4:p:102-116 Template-Type: ReDIF-Article 1.0 Author-Name: Jung-Hoon Lee Author-X-Name-First: Jung-Hoon Author-X-Name-Last: Lee Title: Preface Abstract: Journal: Global Economic Review Pages: 3-4 Issue: 1 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449778 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449778 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:1:p:3-4 Template-Type: ReDIF-Article 1.0 Author-Name: Yeonho Lee Author-X-Name-First: Yeonho Author-X-Name-Last: Lee Title: ASEM in retrospect: A brief historical overview Abstract: This article attempts to briefly review the history of ASEM. The birth and development procedures of ASEM as well as the outcomes of the two ASEMs in 1996 and 1998 are reviewed. Contending issues are also raised at the macro level. Finally, existing limitations of the meeting will be pointed out from an Asian perspective. Journal: Global Economic Review Pages: 5-20 Issue: 1 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449779 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:1:p:5-20 Template-Type: ReDIF-Article 1.0 Author-Name: Richard Higgott Author-X-Name-First: Richard Author-X-Name-Last: Higgott Title: ASEM and the evolving global order Abstract: Growing resistance to globalization that characterized the end of the twentieth century and, indeed the beginning of this one, is the essential context within which any analysis of the utility of ASEM should be judged. In this regard, the Asian financial crisis represented a watershed for ASEM almost before it got started. Journal: Global Economic Review Pages: 21-52 Issue: 1 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449780 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:1:p:21-52 Template-Type: ReDIF-Article 1.0 Author-Name: Sahng-Gyoun Lee Author-X-Name-First: Sahng-Gyoun Author-X-Name-Last: Lee Title: The economics of ASEM: Success formula for Europe and Asia Abstract: The creation of ASEM raises a basic question on the co-existence of two seemingly contradictory phenomena: the strengthening of multilateralism and the deepening of regionalism. In light of such view, ASEM provides an important momentum in restructuring the world economy. This paper discusses the relationship between ASEM and regionalism in the new world economic order. It attempts to find basic principles and proper approaches to turn ASEM into a successful framework for economic cooperation between Europe and Asia. Journal: Global Economic Review Pages: 53-66 Issue: 1 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449781 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449781 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:1:p:53-66 Template-Type: ReDIF-Article 1.0 Author-Name: Geun Lee Author-X-Name-First: Geun Author-X-Name-Last: Lee Title: Implications of the Asian value discourse on ASEM? Abstract: The purpose of this paper is to investigate the implications of 'Asian Value (AV)' discourse upon the future of ASEM. The contention here is that such discourse within ASEM is contributing to the construction of a still unidentified Asian region. Moreover, AV discourse has been initiated by individual Asian leaders in order to enhance Asia's bargaining position vis-a-vis Europe, emphasizing the cultural differences between the two regions. Journal: Global Economic Review Pages: 67-78 Issue: 1 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449782 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449782 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:1:p:67-78 Template-Type: ReDIF-Article 1.0 Author-Name: Ben Rosamond Author-X-Name-First: Ben Author-X-Name-Last: Rosamond Title: Regional indentities and inter-regional dialogue: The European union and the ASEM process Abstract: ASEM highlights the importance of looking at inside and outside, not as separate domains, but as parts of the same whole. This leads us to the broader lessons for the study of regionalization in the global political economy and for inter-regional relations in particular. There is obviously a place for reading processes such as ASEM in terms of complex bargains that emerge from the material interests of the participants. After all, it is apparent from the literature emerging from (the former) DGI that this is what the actors think is going on. But this leads us to think about the possibilities for acquiring a broader understanding. The strategy proposed here suggests that there is some utility in applying techniques of 'double reading.' Journal: Global Economic Review Pages: 79-96 Issue: 1 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449783 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:1:p:79-96 Template-Type: ReDIF-Article 1.0 Author-Name: Chung Min Lee Author-X-Name-First: Chung Min Author-X-Name-Last: Lee Title: Security issues in Europe: An Asian perspective Abstract: The future of European and Asian security can no longer be separated owing to pervasive globalization, the rise of East Asia as a new geopolitical hub, and the increasing web of interests that binds the United States, the European Union (EU), and East Asia together. Of the three key relationships-the transatlantic, the transpacific, and the Eurasian-the latter remains the weakest owing to a combination of historical, political, and economic reasons. Improving this relationship from the strategic, economic, and conceptual dimensions will bring significant dividends to the two regions. Operationalizing this challenge, however, is going to be cumbersome and time consuming given the historical lack of strategic interaction between East Asia and Europe. Journal: Global Economic Review Pages: 97-118 Issue: 1 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449784 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449784 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:1:p:97-118 Template-Type: ReDIF-Article 1.0 Author-Name: Yong-Suk Oh Author-X-Name-First: Yong-Suk Author-X-Name-Last: Oh Title: Causes of the financial crisis and the need of monetary cooperation in East Asia Abstract: The Main causes of the East Asian financial crisis in 1997-98 can be divided into domestic and foreign ones. The domestic cause stems from structural and liquidity problems, with growing share of non-performing loans in the financial sector, posing as the most visible manifestation of such problems. On the other side, there is the foreign cause, the sudden fall of the yen against the dollar under the region's unstable foreign exchange system and also its over-dependency on the dollar. Unfortunately, these causes have not yet disappeared. In order to prevent another financial economic crisis from recurring and to secure the regional currency stability in the long run, an external safety device is indispensable. The purpose of the East Asian monetary cooperation device is not only to absorb the external shocks caused by abrupt changes in the dollar/yen rate and sudden flow of capital, but also to settle international liquidity problems among the regional countries. If a device for the East Asian monetary cooperation is established, transparency in both financial and physical markets will be augmented and in the process, so will be the stability of financial and physical transactions. Journal: Global Economic Review Pages: 3-23 Issue: 2 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449785 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:2:p:3-23 Template-Type: ReDIF-Article 1.0 Author-Name: Hidetaka Yoshimatsu Author-X-Name-First: Hidetaka Author-X-Name-Last: Yoshimatsu Title: Globalization, state and industrialization: The automobile and telecommunications industries in Southeast Asia Abstract: This article explores the role of the state in industrial transformation in the era of economic globalization. It argues that economic globalization and market liberalization have not necessarily led to the retreat of state capacity in industrial development Given the rising importance of multinational corporations (MNCs) as promoters of international transactions and domestic industrialization, even developing countries are required to show capacity to promote industrial development in cooperation with foreign MNCs. The argument is examined with the case studies of the automobile industry in Thailand and the telecommunications industry in Malaysia. Journal: Global Economic Review Pages: 24-47 Issue: 2 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449786 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449786 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:2:p:24-47 Template-Type: ReDIF-Article 1.0 Author-Name: Bernhard Seliger Author-X-Name-First: Bernhard Author-X-Name-Last: Seliger Title: The German manufacturing industry faces globalization: Old achievements, new challenges Abstract: While the German manufacturing industry is internationally renowned and often seen as the backbone of German economic development, it has encountered some obstacles in the past few years. These obstacles are related with the emergence of new competitors, the shifts of economic activity in Europe due to economic integration and the challenge of German unification. This paper analyzes the historical development of the German manufacturing industry. By discussing the problems of German manufacturing industry in a globalized world, conclusions for necessary reforms can be drawn. Journal: Global Economic Review Pages: 48-64 Issue: 2 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449787 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449787 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:2:p:48-64 Template-Type: ReDIF-Article 1.0 Author-Name: Seung Keon Kim Author-X-Name-First: Seung Keon Author-X-Name-Last: Kim Title: The political economy of defense procurement and acquisition: The case of South Korean ministry of defense Abstract: South Korea faces growing problems in the area of productivity and competitiveness throughout its economy. These problems are also present in the economies of the armed forces. The purpose of this paper is to present methods of improving the productivity of the South Korean Ministry of Defense's acquisition and procurement processes. It also attempts to mention the South Korean defense environment including defense industry after the Second World War, to point out the problems of Korean Fighter Program (KFP) as a case study, to explain concepts and principles of Total Quality Management, which is a management philosophy and methods, and to provide with the possible solutions of its defense acquisition and procurement represented as KFP. Journal: Global Economic Review Pages: 65-82 Issue: 2 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449788 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449788 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:2:p:65-82 Template-Type: ReDIF-Article 1.0 Author-Name: Woosang Kim Author-X-Name-First: Woosang Author-X-Name-Last: Kim Author-Name: Yeonho Lee Author-X-Name-First: Yeonho Author-X-Name-Last: Lee Title: Prospects for East Asian economic regionalism in the 21st century Abstract: It is not likely that East Asian states will regress to the mercantilist developmental state that used to engineer compressed economic growth. However, it is evident that the pattern of transformation East Asian states are undergoing, is not analogous to the path of Anglo-American development Although the government refrains itself from arbitrarily supplying economic resources (especially financial resources in the form of subsidies or policy loans) to promote strategic industries, it does not give up commanding the market to attain a relatively higher economic growth. The relationship between the state and the market is still set up in a hierarchical fashion in favor of the former. The economic system to emerge in East Asia is the state-governed rather than market-centered, even if it has absorbed neo-liberal condiments. The state-dominant economic system of East Asia is expected to survive for a considerable period. In this regard, the establishment of a financial system to sustain the East Asian economic system has been strongly suggested. Here lies in the reason we discuss the rise of the East Asian economic identity in the post-financial crisis era. Journal: Global Economic Review Pages: 83-102 Issue: 2 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449789 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449789 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:2:p:83-102 Template-Type: ReDIF-Article 1.0 Author-Name: Chang-Soon Hwang Author-X-Name-First: Chang-Soon Author-X-Name-Last: Hwang Title: The voluntary organizations and democracy in Korea: A civil society perspective Abstract: After achieving the dramatic progress of democracy recently, the preconditions of democracy in Korea are a major concern for scholars at home and abroad; These days, therefore, finding factors for successful democracy might be an important agenda for Korea as much as for all less-developed countries. Among many factors conducive to democracy, this study emphasizes the important role played by voluntary associations as mediating and countervailing mechanisms to both the central government and markets. Even though there have been many factors at work in shaping political democracy, Korean experience during last three decades calls attention to the importance of the transition of the resurrection of civil society through an explosion of autonomous interest group expression and activity. The Korean experience supports that the organization of the citizenry is an indispensable condition for the development and maintenance of democracy. Journal: Global Economic Review Pages: 103-116 Issue: 2 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449790 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449790 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:2:p:103-116 Template-Type: ReDIF-Article 1.0 Author-Name: Simon Norton Author-X-Name-First: Simon Author-X-Name-Last: Norton Author-Name: Jill Solomon Author-X-Name-First: Jill Author-X-Name-Last: Solomon Title: Future policy directions for doi moi in Vietnam Abstract: During the 1980s Vietnam experienced a radical process of industrial and service sector liberalization, known as doi moi. The process was initiated by the government as a means for managing the collapse in overseas financial support occasioned by the demise of its principal supporter, the former Soviet Union. In this paper we focus on the currency and state owned enterprise (SOE) aspects of doi moi. The paper has several aims. First, we examine the effectiveness of the currency policy introduced under doi moi through which the Vietnamese government has attempted to stabilize the VNDong with the overall aim of reversing the dollarization process and restoring confidence in the domestic currency. Second, we discuss possible capital markets instruments which may now be suitable for government financing, such as the suitability of commodity indexed bonds, a debt conversion program and establishment of a private development trust fund. Third, we consider the macroeconomic implications of Vietnam's accession to ASEAN. Lastly, we make a number of recommendations for future macroeconomic policy in Vietnam. Journal: Global Economic Review Pages: 117-133 Issue: 2 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449791 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449791 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:2:p:117-133 Template-Type: ReDIF-Article 1.0 Author-Name: Yongho Kim Author-X-Name-First: Yongho Author-X-Name-Last: Kim Title: A comparative study on Japanese and South Korean media coverage of foreign and security affairs Abstract: The media in Korea and Japan share many common features. Young reporters in Korea today are still trained in the Japanese way; they begin their training by working in and around a police station, what they term as Satsu-mawari. The trainees must stay in the station for one or two months (harikomi) to make themselves accustomed to the police station, and more importantly, to leam the most effective method of abstracting news from day-to-day incidents. After spending two or three years at the police station, these reporters move to the prosecutor's office where they spend another two or three years. Only then are they entitled to work for such sections as politics, economy, culture andsports. In addition, Korean newspapers still use many Japanese words like urakei and nawabari. Common terminology used both by the Korean and Japanese media indicate that their working styles are similar. Indeed, reporters in Korea and Japan work under similar systems of reporting not only in terms of their hierarchical order but also in terms of the 'cap(tain) system' in the field. Journal: Global Economic Review Pages: 3-19 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449793 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:3-19 Template-Type: ReDIF-Article 1.0 Author-Name: Takeo Kikkawa Author-X-Name-First: Takeo Author-X-Name-Last: Kikkawa Title: Deregulation and Japan's industry: The case of the petroleum industry Abstract: Currently, most of Japan's regulated industries are in a bottleneck situation characterized by the combination of on-going deregulation with no progress being witnessed in the series of radical reform. In trying to break away from this botdeneck situation neither calling off the on-going deregulation, Policy A, nor continuing to endorse the common assumption that 'it is sufficient if a semblance of deregulation is achieved,' Policy B, is desirable. Policy A ignores the aspect of industrial regulation causing the industry's fragility, the mutually amplifying effect while Policy B makes light of the aspect of industry fragility conversely generating government involvement. Journal: Global Economic Review Pages: 20-54 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449794 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449794 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:20-54 Template-Type: ReDIF-Article 1.0 Author-Name: Inkyo Cheong Author-X-Name-First: Inkyo Author-X-Name-Last: Cheong Title: A Korea-Japan FTA: Economic effects and policy implications Abstract: This paper analyzes the economic effects of a Korea-Japan FTA, focusing on the impacts on Korean industrial production and trade. Then, based on the findings of the analysis, the paper tries to provide some policy implications with respect to the economic integration of Korea and Japan. Finally, limitations of the analysis will be discussed. Journal: Global Economic Review Pages: 55-68 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449795 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449795 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:55-68 Template-Type: ReDIF-Article 1.0 Author-Name: Sangjoon Kim Author-X-Name-First: Sangjoon Author-X-Name-Last: Kim Title: Social capital and producer organizations in Japanese political economy Abstract: Although the small and medium-sized firms have been an integral part of Japan's economic growth patterns, the way these firms are organized has mostly been studied only in relation to the more glamorous keiretsu organizational patterns. Japan's small and medium-sized firms did not develop only in the shadow of the keiretsu, but rather grew out of collective self-reflection and self-determinism that persisted, and indeed thrived in the late twenties century. Japanese producers of small and medium-sized firms have struggled to realize their interests by creating a specific social system. The identities of producers of small and medium-sized firms also have deployed along the development of regional system and local pride. Journal: Global Economic Review Pages: 69-81 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449796 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449796 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:69-81 Template-Type: ReDIF-Article 1.0 Author-Name: Zhiqun Zhu Author-X-Name-First: Zhiqun Author-X-Name-Last: Zhu Title: U.S., China, and the WTO: Trading with the enemy? Abstract: This article surveys and analyzes various views in the United States on America's trade relations with China in general and China's application for membership in the World Trade Organization (WTO) in particular. Different opinions can be heard from all sides of the political spectrum, but three distinctive camps can easily be identified in the United States regarding China's WTO membership and America's normal trade relations with China: strong supporters, fierce opponents and those between the extremes. Journal: Global Economic Review Pages: 82-97 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449797 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449797 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:82-97 Template-Type: ReDIF-Article 1.0 Author-Name: Sung Whan Ju Author-X-Name-First: Sung Whan Author-X-Name-Last: Ju Title: The economic development models and the Confucian market economy model of East Asia Abstract: East Asian countries - South Korea, Taiwan, Hong Kong, Singapore, and Japan -have attracted the attention of the world thanks to their outstanding economic performances. Economists, political and social scientist have suggested various economic development models to explain the economic success of East Asian countries. Journal: Global Economic Review Pages: 98-118 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449798 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:98-118 Template-Type: ReDIF-Article 1.0 Author-Name: Joon Han Author-X-Name-First: Joon Author-X-Name-Last: Han Author-Name: Hyun-Chin Lim Author-X-Name-First: Hyun-Chin Author-X-Name-Last: Lim Title: A commodity chain approach to the development of Korean personal computer industry: Resource, opportunity, and capability Abstract: Nothing better captures the development vitality that spur South Korea to resume itself from its economic crisis than the information technology industry. This ultramodern high-technology industry in the area of dynamic random access memory (DRAM) chips, transistor liquid-crystal displays (LCDs), code division multiple access (CDMA) cellular phones, monitors, PCs, and other electrics-electronics have served as the engine of growth in the process of economic recovery. Have these industries grown enough to compete in the global market? Would it be realistic to assume that the development of these industries has been conducive to industrial upgrading in the world stratification system? What domestic and international factors are involved in this notable achievements of this industry? Journal: Global Economic Review Pages: 119-140 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449799 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449799 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:119-140 Template-Type: ReDIF-Article 1.0 Author-Name: Sang-Hwa Chung Author-X-Name-First: Sang-Hwa Author-X-Name-Last: Chung Title: An unfinished story yet: The structural causes and aftermath of the economic crises in East Asia Abstract: Journal: Global Economic Review Pages: 141-162 Issue: 3 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449800 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449800 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:3:p:141-162 Template-Type: ReDIF-Article 1.0 Author-Name: Sung Soo Joo Author-X-Name-First: Sung Soo Author-X-Name-Last: Joo Title: Understanding the NGO revolution in Korea Abstract: Although NGOs are proliferating around the world, the phenomenon is especially significant in Korea. Not only the number of NGOs and their membership size but also their areas of activities have been expanded much broadly and their impact on politics and society have increased dramatically. How have Korean NGOs become so powerful and influential? What are the driving forces or factors behind the activities of the Korean NGO? How has the government-NGO relationship developed recently? These are some of the questions to be dicussed in this paper. Journal: Global Economic Review Pages: 3-19 Issue: 4 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449802 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:4:p:3-19 Template-Type: ReDIF-Article 1.0 Author-Name: Junki Kim Author-X-Name-First: Junki Author-X-Name-Last: Kim Title: The growth of the non-government sector in Korea and its relations with the state Abstract: This paper hopes to show that the states have come to play an increasingly important role in the growth of NGOs by strategically utilizing their policy tools, including the use of funding, which has an important implications on the relationship between the state and NGOs. Coupled with the dominant state power in the society and NGOs' relative lack of bargaining power, the imbalance in the relationship between the state and the NGOs has become a serious problem. This is largely due to the tradition of the state-led industrialization in Korea that places a heavy emphasis on the government's role in the society. Journal: Global Economic Review Pages: 20-42 Issue: 4 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449803 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:4:p:20-42 Template-Type: ReDIF-Article 1.0 Author-Name: Deng Guosheng Author-X-Name-First: Deng Author-X-Name-Last: Guosheng Title: New environment for development of NGOS in China Abstract: Since 1978, great changes have taken place in the environment for the development of NGOs in China. From a macroscopic perspective, China's transformation process in the economic, political and social systems, has been progressing successively. The transformation process has broken the traditional structure of the Government's monopolization of resources and the strictly controlled private action space. The reforms have restructured the relationship between the Government and the market society, and thus provided an opportunity for the existence and development of all kinds of NGOs in China. In addition, China's entry into the WTO and current trends towards globalization also has promoted the development of NGOs in China. Journal: Global Economic Review Pages: 43-61 Issue: 4 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449804 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449804 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:4:p:43-61 Template-Type: ReDIF-Article 1.0 Author-Name: Yan-Chun Meng Author-X-Name-First: Yan-Chun Author-X-Name-Last: Meng Title: New roles of NPOS and partnership with government and/or business in China Abstract: In order to cater to the globalization trend, a general governmental institution reform has taken place in the world, and the aim of the reform is to limit governmental power and promote governmental efficiency. The force of the reform comes from both the domestic press and oversea press. On a national level, the request for legality of governmental power and controllability of governmental decision-making is becoming more urgent on a daily basis. On an international level, globalization has urged cooperation and rapid response from every countries in the world. Most countries focus on limiting governmental power and power dispersion. Journal: Global Economic Review Pages: 62-72 Issue: 4 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449805 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449805 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:4:p:62-72 Template-Type: ReDIF-Article 1.0 Author-Name: Kaori Kuroda Author-X-Name-First: Kaori Author-X-Name-Last: Kuroda Title: New roles of nonprofit organizations and partnership with government and/or business Abstract: The term NGO has been used more specifically to encompass nonprofit organizations engaged in international programs. In recent years, what Professor Lester Salamon of the Institute of Policy Studies of Johns Hopkins University has referred to as the 'nonprofit sector' seems popular worldwide. He defines nonprofit organizations as 'organizations that share seven common features: they are formally constituted; organizationally separate from government; non-profit-seeking; self-governing; voluntary to some significant degree; nonreligious; and nonpolitical (Salamon and Anheier 1994).' To avoid confusion, the term 'NGO' is used in this paper in reference to nonprofit, nongovernmental organizations that are independent from any particular government office or private corporation and which are pursuing public interests. Journal: Global Economic Review Pages: 73-88 Issue: 4 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449806 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449806 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:4:p:73-88 Template-Type: ReDIF-Article 1.0 Author-Name: Nobuko Kawashima Author-X-Name-First: Nobuko Author-X-Name-Last: Kawashima Title: The emerging non-profit sector in Japan: Recent changes and prospects Abstract: This paper hopes to map out the historical, legal and political contexts of the non profit sector and explore some of the recent developments which have helped expand voluntary activities and promote the changes the NPO sector has been experiencing over the last five years or so. Then, the paper goes on to raise some of the issues which need to be addressed for the further development of the NPO sector. Journal: Global Economic Review Pages: 89-105 Issue: 4 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449807 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:4:p:89-105 Template-Type: ReDIF-Article 1.0 Author-Name: Naoto Yamauchi Author-X-Name-First: Naoto Author-X-Name-Last: Yamauchi Title: Japanese nonprofit sector in comparative perspective Abstract: Nonprofit organizations have long been less visible in Japan than in most other developed countries. But this does not imply that Japan does not have a sizable nonprofit sector. To the contrary, large numbers of Japanese hospitals, universities, social service organizations, and community groups are essentially not-for-profit in form. Journal: Global Economic Review Pages: 106-128 Issue: 4 Volume: 29 Year: 2000 X-DOI: 10.1080/12265080008449808 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080008449808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:29:y:2000:i:4:p:106-128 Template-Type: ReDIF-Article 1.0 Author-Name: Sung-han Kim Author-X-Name-First: Sung-han Author-X-Name-Last: Kim Title: Environment-security nexus in northeast Asia Abstract: The concept of environmental security, under the umbrella of regional comprehensive security, provides a common framework to support bilateral as well as multilateral initiatives on the nexus of environment-security issues in Northeast Asia. These initiatives could provide the foundation upon which a common understanding and language, and common interests can be constructed on regional environmental and security issues. A consensus is to be built among key thinkers and opinion-makers in the region. Attention is needed to the security implications of regional-scale environmental degradation, and regional energy and environmental cooperation to address this degradation, thereby enhancing the multilateral institution-building process in Northeast Asia. As in traditional security arena, the United States needs to take the leadership role in the management of environmental problems in Northeast Asia. While maintaining the U.S.-Japan-South Korea cooperation as a central axis for environmental security of Northeast Asia, the United States needs to formulate a clearly articulated, coherent China policy with explicit objectives and guidelines by which progress on a variety of issues could be measured. Journal: Global Economic Review Pages: 3-23 Issue: 1 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449810 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449810 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:1:p:3-23 Template-Type: ReDIF-Article 1.0 Author-Name: Chaesung Chun Author-X-Name-First: Chaesung Author-X-Name-Last: Chun Title: Hans Morgenthau on realist normative theory, Cold War structure and some implications on Inter-Korean relations Abstract: In this article, I review Hans Morgenthau's thoughts about the nature of social and political knowledge. The purpose of this article is to contrast the false philosophy and the true philosophy of politics as conceived by him. An analysis of his critic of rationalism, universalism, and scientism, and his efforts to build an intuitionist conception of international politics are included. Unlike the later positivist-minded realists, Morgenthau emphasized the radically different epistemological view. I also discuss Morgenthau's analysis of an important empirical case of his time, the Cold War. The examination of Morgenthau's analysis of this case reveals how he approached the real issues based on epistemological skepticism and how he searched for meaningful prescriptions based on that. I then discuss some normative implications of these thoughts on inter-Korean politics. Journal: Global Economic Review Pages: 24-44 Issue: 1 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449811 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449811 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:1:p:24-44 Template-Type: ReDIF-Article 1.0 Author-Name: Kun Young Park Author-X-Name-First: Kun Young Author-X-Name-Last: Park Title: Is 'disciplining North Korea' a risky business? Abstract: This paper tries to measure the effectiveness of the Bush administration's hardline policy toward North Korea. The Bush security team is seen basically trying to discipline North Korea by employing more sticks and less carrots than its predecessor did. However, it is not quite clear whether a rather strong policy could promote efficiently both the national interest of the U.S. and the partisan interest of the Bush administration. Journal: Global Economic Review Pages: 45-56 Issue: 1 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449812 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449812 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:1:p:45-56 Template-Type: ReDIF-Article 1.0 Author-Name: Hoon Jaung Author-X-Name-First: Hoon Author-X-Name-Last: Jaung Title: The rise of neo-liberal revolution in Britain: Thatcherism in the British conservative party Abstract: Recent theories of party change have emphasized interaction between political parties and their environment Employing this notion of interaction, this article has attempted to provide a more systematic analysis of the rise of Thatcherism in the British Conservative Party. It has demonstrated that while socio-economic changes provided a primary source of the ideological change, there were internal processes within the party that perceived environmental pressure from the socio-economic changes and actually pursued the task of the ideological change. First, environmental change in the socio-economic arena provided an initial cause of the rise of Thatcherism in the British Conservative Party. Second, electoral defeats also played a significant influence in the rise of Thatcherism. Third, a replacement of party leadership was another significant intervening impetus of the ideological change. Journal: Global Economic Review Pages: 57-78 Issue: 1 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449813 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:1:p:57-78 Template-Type: ReDIF-Article 1.0 Author-Name: Woondo Choi Author-X-Name-First: Woondo Author-X-Name-Last: Choi Title: Japanese bargaining behavior and U.S.-Japan relationship: FSX co-development project Abstract: The whole process, from the initial conception of the FSX project for independent development by Japan to the conclusion of the contract for co-development, is a rich source for political and theoretical implications on the relationship between Japan and the United States. First, the U.S. and Japan each had different conceptions about their roles in the security treaty, most notably, in the area of burden sharing. Second, the U.S. domestic debate illustrates the changing concept of security and various perceptions of its relative decline. Third, this case provides a single test bed for multiple theories of two-level games, bureaucratic politics model and rational choice approach. Lastly, the FSX project also provides a fertile case in testing two theoretical perspectives of the realist and the institutionalist to explain international cooperation. Journal: Global Economic Review Pages: 79-102 Issue: 1 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449814 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449814 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:1:p:79-102 Template-Type: ReDIF-Article 1.0 Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Kwan-Kyoo Choe Author-X-Name-First: Kwan-Kyoo Author-X-Name-Last: Choe Title: Northeast Asian economic regionalism: A Korean view Abstract: Does economic regionalism exist in Northeast Asia? If it does, what is the typical characteristic of economic regionalism in Northeast Asia compared with the economic regionalism in Europe and North America? And, what has it given to the interrelations among the regional countries in terms of both the political and strategic aspects? This paper will look into a concrete method to stabilize and sustain the economic regionalism in NEA with focus on the specific role of Korea. Journal: Global Economic Review Pages: 103-119 Issue: 1 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449815 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:1:p:103-119 Template-Type: ReDIF-Article 1.0 Author-Name: Stanislav Zhukov Author-X-Name-First: Stanislav Author-X-Name-Last: Zhukov Title: Central Asia: Development under conditions of globalization Abstract: The entire post-Soviet era is exposed to the decisive impact of several powerful processes. These include the construction of new states, the formation of national economies, the transition from a command-mobilization economy to a market-driven one, and globalization which is the most important. It would be no exaggeration to say that, to a significant extent, globalization determines the processes of state-building and market transformation. Journal: Global Economic Review Pages: 3-24 Issue: 2 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449817 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449817 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:2:p:3-24 Template-Type: ReDIF-Article 1.0 Author-Name: Jinwoo Choi Author-X-Name-First: Jinwoo Author-X-Name-Last: Choi Title: Globalization of agriculture and European integration: A deepening effect of the Uruguay round Abstract: Taking the effect of the agricultural liberalization promoted by the Uruguay Round of GATT negotiations on European integration as an example, this paper discusses whether the globalization process promotes or undermines regional integration. This paper suggests that the UR had a positive effect on further European integration. It did so by triggering the reform of EC's common agricultural policy, which had been the source of repeated budgetary crises of the EC. Consequently, the UR made money available for a more integrative project, i.e., redistributional policy in the form of structural funds. The assumption of redistributional function by the EC means that the EC expanded its supranational policy competency into an area that in the past belonged exclusively to state prerogatives. Therefore, as the UR was in part responsible for the CAP reform, it can be said that the UR contributed to the deepening of European integration. This is a case where globalism moves regionalism forward. Journal: Global Economic Review Pages: 25-40 Issue: 2 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449818 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:2:p:25-40 Template-Type: ReDIF-Article 1.0 Author-Name: Hochul Lee Author-X-Name-First: Hochul Author-X-Name-Last: Lee Title: Neoliberal globalization and domestic accommodation: Combining efficiency and legitimacy Abstract: Globalization is not a unique issue. The market economy has been constantly globalized since its formation in Europe in the late fifteenth century. However, its neoliberal nature is very contemporary. At the international level, measures to open more markets and to liberalize trade have been negotiated and incorporated into the rules of the WTO, the IMF, and the regional bodies of economic cooperation. At the domestic level, neoliberal reform packages have been tried or imposed externally particularly in East Asian countries after the financial crisis in the late 1997. This study defines the nature of neoliberal globalization and identifies its limitations and pressures upon domestic political economy. It also reviews briefly the 'third way' politics in Europe and another 'third way' experiment in China to find some critical lessons in responding to neoliberal reform pressures. Journal: Global Economic Review Pages: 41-51 Issue: 2 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449819 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449819 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:2:p:41-51 Template-Type: ReDIF-Article 1.0 Author-Name: Shin-wha Lee Author-X-Name-First: Shin-wha Author-X-Name-Last: Lee Title: The United Nations and low politics: Environmental & human security in East Asia Abstract: In a world order characterized by ideological conflicts, low politics' usually goes by the wayside. Policymakers focus on 'high politics' such as issues on state security, diplomacy and warfare. The September 11th attack was an epitome of terrorism that calls for not only the protection of territorial and political security of the state but also the safeguarding of the individual or group from all threats to human survival. This paper raises the issues on 'environmental security' and 'human security,' particularly in the context of East Asia and reviews the efforts of the United Nations to safeguard the global environment and human rights. Finally, this paper reflects on the future role of the United Nations in non-traditional security arenas with special emphasis on its role in East Asia. Journal: Global Economic Review Pages: 52-73 Issue: 2 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449820 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449820 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:2:p:52-73 Template-Type: ReDIF-Article 1.0 Author-Name: Sun-won Park Author-X-Name-First: Sun-won Author-X-Name-Last: Park Title: Intra-alliance politics in Northeast Asia: The Japanese 'defensive intervention' towards South Korea under American pressure Abstract: Analytical interpretations of South Korea and Japan's relationship during the Cold War era and studies on the political interaction between them as an alliance game facing a common communist threat have been nearly non-existent. This paper attempts to remedy this impoverishment of theoretical and analytical explanations by emphasizing the significant role of the Japanese Ohira cabinet on the United States-South Korea relations from January to October 1979, the period when there was political pressure from the United States to the South Korean Park Chung-hee regime. Journal: Global Economic Review Pages: 74-93 Issue: 2 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449821 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449821 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:2:p:74-93 Template-Type: ReDIF-Article 1.0 Author-Name: Andras Hernadi Author-X-Name-First: Andras Author-X-Name-Last: Hernadi Title: Crisis or transformation? Japan viewed from Hungary Abstract: This paper challenges the view that Japan has been in crisis in the past decade. After citing some basic contradictory facts, the author first summarizes his arguments for the prevailing crisis mood by grouping them into 'superficial', 'middle-of-the-scale' and 'profound' reasons. Then, in order to better prove his point that one should speak about the necessary transformation of the Japanese economy and society, rather than about the crisis, he gives a wider than usual coverage of the main areas of transformation. Journal: Global Economic Review Pages: 94-107 Issue: 2 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449822 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449822 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:2:p:94-107 Template-Type: ReDIF-Article 1.0 Author-Name: Tae-Hyo Kim Author-X-Name-First: Tae-Hyo Author-X-Name-Last: Kim Title: US Foreign policy in the war against terrorism: Challenges, prospects, and ROK's desirable options Abstract: Despite the September 11 incident, the US should consider investing more resources in Northeast Asia and Europe rather than focusing all its energy on the terrorists. While consolidating its existing grand strategy of promoting democracy and the market economy, the US may need to draw more support from its major allies to be better prepared against the multi-spectrum conflicts. As for South Korean options, it is desirable to level up its support for America's war in Afghanistan and also for the long-term fight against terrorism. In addition, the ROK-US readiness against potential North Korean terrorism and asymmetric threat should be improved through closer bilateral consultation and coordination. Journal: Global Economic Review Pages: 3-17 Issue: 3 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449824 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449824 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:3:p:3-17 Template-Type: ReDIF-Article 1.0 Author-Name: Jung-Hoon Lee Author-X-Name-First: Jung-Hoon Author-X-Name-Last: Lee Author-Name: Jin Park Author-X-Name-First: Jin Author-X-Name-Last: Park Title: The role of regional identity in Asia-Europe relations with special reference to ASEM Abstract: The past decade has witnessed a proliferation of regional as well as inter-regional organizations dealing with a wide range of political, economic, security, and social issues. On balance, material interests and the need for balance of power amongst the states and the regions are often abetted to such development. But deeper analysis will reveal the importance of understanding the psychological and cognitive foundations of regional and inter-regional arrangements. Regionalism, in other words, is not just an outcome of economic materialism or geo-political calculations, but also a reflection of ideas, knowledge and identity of the regions involved in some form of integrative process. The development of ASEM can be viewed and treated against this analytic backdrop. This paper examines in detail some of the fundamental issues underlying Asia-Europe relations in order to better understand the depth as well as future prospects of this newly emerging inter-regional arrangement. Journal: Global Economic Review Pages: 19-33 Issue: 3 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449825 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449825 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:3:p:19-33 Template-Type: ReDIF-Article 1.0 Author-Name: Kyu-Taik Sung Author-X-Name-First: Kyu-Taik Author-X-Name-Last: Sung Author-Name: Bok Song Author-X-Name-First: Bok Author-X-Name-Last: Song Title: A new look at ideals and practices of filial piety: The case of exemplary filial persons Abstract: The definition of filial piety has become a public issue in Korea because of the significant impact filial piety has on the welfare of the elderly as on the morality of the young. The study explored how filial piety is practiced in Korea. Compiled from three national institutions awarding filial piety prizes in Korea, stories about Korean adults who had exemplified filial piety during the recent two decades are analyzed using the content analysis method. As a resulf of this analysis, a set of eleven indicators of filial piety emerged, including respect for parents, filial sacrifice, etc. The fundamental value of filial piety is still under preservation even while its manifestation is changing in modem times. These indicators will be useful in understanding the concept of filial piety and constructing a measure that might be used to assess caring relationships between adult children and elderly parents. Journal: Global Economic Review Pages: 35-49 Issue: 3 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449826 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449826 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:3:p:35-49 Template-Type: ReDIF-Article 1.0 Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Yeon-ho Lee Author-X-Name-First: Yeon-ho Author-X-Name-Last: Lee Title: Convergence or divergence? : The South Korean state after the Asian financial crisis Abstract: This study suggests that the government's attempt to replace the developmental state by introducing neo-liberal axioms is slim. The state that is to emerge in consequence of the economic and financial reforms carried out by the Kim government is distinct from the neo-liberal regulatory state at the ideological level; moreover, the embedded characteristics of the developmental state hinder changes in the nature of the state. It is the paper's argument that the economic reform that has been implemented by the Kim Dae-Jung government since its establishment (in 1998) is merely a form of “self-help” to correct those mistakes committed by the developmental state. Despite the neo-liberal reform attempted by the Kim government, the social, political and historical conditions in which a liberal regulatory state may be born are pre-mature, and the embedded legacies of the developmental state are far from becoming a thing of the past. Journal: Global Economic Review Pages: 51-72 Issue: 3 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449827 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449827 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:3:p:51-72 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Bell Author-X-Name-First: Daniel Author-X-Name-Last: Bell Title: East Asian capitalism: Towards a normative framework Abstract: This essay attempts to identify the features of East Asian capitalism that seem, prima facie, to serve desirable social and political purposes while also being compatible with, if not beneficial for, the requirements of economic productivity in an age of intense international competition. It argues that East Asian countries should build on areas of competitive advantage instead of heeding calls to shed all the old ways of doing things in favor of American-style shareholder capitalism. Journal: Global Economic Review Pages: 73-89 Issue: 3 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449828 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449828 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:3:p:73-89 Template-Type: ReDIF-Article 1.0 Author-Name: Kanishka Jayasuriya Author-X-Name-First: Kanishka Author-X-Name-Last: Jayasuriya Title: Damaged exports: Dynamics and limits of governance reform in Southeast Asia Abstract: Governance reform is the main policy for a number of international and domestic aid agencies. Under the rubric of governance reform are diverse programs ranging from those for anti-corruption to those for civil society promotion programs. Although these programs have had limited success, governance programs are continually being promoted and implemented byinternational organizations and political forces in developing, newly industrialized states. Why? One reason for this persistence is that these programs—despite failing in their erstwhile objectives—nevertheless constitute a shift in modes through which power is exercised. These programs often create new modalities of political rule, which form the basis of new state strategies. This paper draws particular attention to the importance of governance programs in nurturing new forms of political rule through a process of depoliticization. Journal: Global Economic Review Pages: 91-106 Issue: 3 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449829 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449829 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:3:p:91-106 Template-Type: ReDIF-Article 1.0 Author-Name: Shalendra Sharma Author-X-Name-First: Shalendra Author-X-Name-Last: Sharma Title: Exchange rate regimes in post-crisis Asia: What explains the “hollowing of the middle” Abstract: The exchange rate regimes of the Asian countries and their subsequent collapse played key roles in the financial crisis. This prompted a renewed debate over the best choice of exchange rate arrangements, particularly for emerging markets. How should emerging markets, at present, structure their exchange rate system in order to provide stability and to prevent new crises from occurring? It is argued in the literature that only polar extremes (floating or fixed) are viable. This paper outlines the core ideas of the emerging debate and examines the reason for this shift identified as the “hollowing of the middle.” Journal: Global Economic Review Pages: 3-21 Issue: 4 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449831 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:4:p:3-21 Template-Type: ReDIF-Article 1.0 Author-Name: Doowon Lee Author-X-Name-First: Doowon Author-X-Name-Last: Lee Title: South Korea's economic reform and its aftermath Abstract: This paper analyzes the process of Korea's recovery from the 1997 financial crisis with several policy implications. The driving force behind the better-than-expected economic recovery was the reform measures introduced by the Korean government in four major areas such as the financial, corporate, labor and public sectors. Also, Korea's strong export performance helped by the booming U.S. economy provided a favorable external condition for recoveiy. Internally, surging investment in the IT and venture industries, which was deliberately fostered by the government, along with the revived consumption level, enabled the rapid recovery. However, as the U.S. economy slowed and the technology bubble burst in 2000, the Korean economy went through a mild recession in 2001. Based on the experiences of crisis and recovery, the implication of macroeconomic fundamentals is re-examined. Even though the strong macroeconomic fundamentals were misleading in preventing the crisis, they later facilitated the Korean economy's recoveiy. As a result of various reform measures, the Korean economy as of today is in a different environment First, the low investment rate along with the decreased saving rate will marie the end of the high growth era. Second, the substantial deterioration of income distribution will be the major task to be tackled with in the future. Third, the Korean economy is now fully liberalized both in the commodity and capital markets with some side effects and merits. Fourth, the loan and deposit structure of the financial sector is significantly altered. Lastly, more fiscal burden is placed on the shoulders of the government due to the heavy debt service burden of public funds and the generous expansion of social welfare programs. Journal: Global Economic Review Pages: 23-50 Issue: 4 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449832 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449832 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:4:p:23-50 Template-Type: ReDIF-Article 1.0 Author-Name: Tim Beal Author-X-Name-First: Tim Author-X-Name-Last: Beal Title: Information and communications technologies in the two Koreas: Contrasts, commonalities, challenges Abstract: The contrast between the two Koreas in Information and Communication Technology (ICT) is stark. The South is a world leader in ICT and South Koreans are addicted to the Internet The Internet scarcely exists in the North and few have access to it. Nevertheless, despite internal and external constraints, the North has many of the attributes, and the aspirations, of developed countries and ICT is a priority area. The North has carved out a niche in computer animation and is pushing to develop software exports. Will it be able to overcome current difficulties and dangers and join the digital revolution? Journal: Global Economic Review Pages: 51-67 Issue: 4 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449833 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:4:p:51-67 Template-Type: ReDIF-Article 1.0 Author-Name: Woo-jun Kim Author-X-Name-First: Woo-jun Author-X-Name-Last: Kim Title: The relationship between china and Siberia/Russian Far East: Economic cooperation and security conflicts Abstract: This paper analyzes the current relationship between China and Siberia/Russian Far East from the economic and political-security perspectives. The relationship between China and Siberia/Russian Far East is that of cooperation and conflict. China gains natural resources and energy from Siberia/Russian Far East, while Siberia/Russian Far East secures consumer goods, food and labor to fill its shortage from China. The two regions are in an economically complementary relationship. However, they show differences in their interests in issues such as the Tuman River Development Project. If their economic cooperation could be called the “bright” side of their relationship, there exists the “dark” side of their relationship, which is the border dispute. The paper argues that as a way to reduce conflict and increase cooperation in Northeast Asia, a multilateral security/economic organization, tentatively called the “Organization for Security and Cooperation in Northeast Asia,” should soon be established. Journal: Global Economic Review Pages: 69-81 Issue: 4 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449834 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:4:p:69-81 Template-Type: ReDIF-Article 1.0 Author-Name: Seok-Choon Lew Author-X-Name-First: Seok-Choon Author-X-Name-Last: Lew Author-Name: Tae-Eun Kim Author-X-Name-First: Tae-Eun Author-X-Name-Last: Kim Title: Development of the township-village enterprises and the re-instttutionalization of the family in China Abstract: Small farms, which have maintained flexibility throughout history, have long existed in China and the so-called “family household system as a cooperative organization” comprehensively playing a diverse socio-economic function has developed. In addition, trust derived from a unique environment based on a village structure where a few families dwell not to mention “everyone knows each other well” has also become institutionalized. In this setting, a complex and multi-dimensional property rights could have developed. Moreover, the Confucian order, historically institutionalized in China, has differentiated the respective roles of the public from the private and the center from the local through a network intertwined by relationships (guanxi-based network), allowing them to be relatively autonomous from each other (embedded autonomy). This institutional tradition of the Chinese society has re-emerged with the coming of the reform age. The reform reintroduced the revival of the traditional family household, as a cooperative unit for the insiders and, at the same time, as a competitive unit against the outsiders; and its renewed close relationship with the local governments have given birth to the township-village enterprises. Based on reforms of this nature, which have occurred from the bottom and approved by the center state ex post, China was able to experience the implementation a new form of transition to capitalism, i.e., rural industrialization. In this process, China's guana-based township-village enterprises were able to secure the fitness to react to market competition despite their collective ownership nature. Journal: Global Economic Review Pages: 83-111 Issue: 4 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449835 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449835 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:4:p:83-111 Template-Type: ReDIF-Article 1.0 Author-Name: Taeyoung Yoon Author-X-Name-First: Taeyoung Author-X-Name-Last: Yoon Title: Terrorism and crisis management: The Rangoon bombing incident of 1983 Abstract: The Rangoon bombing incident represents one of the major crisis events for examination if one is to understand the process of crisis management of Chun Doo Hwan's government within the context of the ROK-U.S. Combined Forces Command. Moreover, the Rangoon bombing was the first grave terrorist act on the international scene, and North Korea's involvement was not immediately revealed. This case clearly illustrated how South Korea's resolve in restraining punitive military action against North Korea could resolve a crisis without escalating it, and facilitate a favourable outcome. Indeed, in order to protect or to minimize the damage to its interests and without triggering an unwanted escalation of crisis, South Korea made vigorous efforts to pressure North Korea into softening its belligerent stance through the use of diplomatic sanctions. Journal: Global Economic Review Pages: 113-126 Issue: 4 Volume: 30 Year: 2001 X-DOI: 10.1080/12265080108449836 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080108449836 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:30:y:2001:i:4:p:113-126 Template-Type: ReDIF-Article 1.0 Author-Name: Shaomin Li Author-X-Name-First: Shaomin Author-X-Name-Last: Li Title: Does east love guanxi more than west? The evolution of relation-based governance: Contemporary and historical evidences Abstract: Relations, or informal social networks (also known as guanxi), are believed to be used predominantly by people in Asia to govern business transactions. Do Asians love relations more than their counterparts in the West? Using the theory of relation-based and rule-based governances, this paper argues that relying on relations in the East should not be viewed as predominantly determined by culture. The historical and contemporary evidences show that relation-based governance existed in the West before an impartial legal system was established. In conclusion, the paper argues that the East does not love guanxi more than the West; it only reflects a different stage of political and economic development. Journal: Global Economic Review Pages: 1-11 Issue: 1 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422884 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:1:p:1-11 Template-Type: ReDIF-Article 1.0 Author-Name: Hoyt Cleveland Tillman Author-X-Name-First: Hoyt Cleveland Author-X-Name-Last: Tillman Title: Does Confucianism have a role in East Asian economy, social networks and civil society? Some reflections from the perspective of the song era and the 20th century Abstract: Journal: Global Economic Review Pages: 13-26 Issue: 1 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422885 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:1:p:13-26 Template-Type: ReDIF-Article 1.0 Author-Name: R. Bin Wong Author-X-Name-First: R. Bin Author-X-Name-Last: Wong Title: The political ambiguity of voluntary associations in late imperial and modern China: Chinese forms of cultural hegemony, coercion and social control in comparative perspective Abstract: Journal: Global Economic Review Pages: 27-45 Issue: 1 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422886 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:1:p:27-45 Template-Type: ReDIF-Article 1.0 Author-Name: Che Chang Ooh Author-X-Name-First: Che Chang Author-X-Name-Last: Ooh Title: Chinese banking reform of 1998-2000 and its effect on the development of a commercial credit culture Abstract: Journal: Global Economic Review Pages: 47-64 Issue: 1 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422887 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:1:p:47-64 Template-Type: ReDIF-Article 1.0 Author-Name: Ungki Lim Author-X-Name-First: Ungki Author-X-Name-Last: Lim Title: Classification of ownership patterns in Korean conglomerates Abstract: This study classifies the ownership structure of conglomerates considering the conglomerates' choices of pyramidal vs. horizontal structures and the magnitude of equity held by the controlling shareholders, namely the owner family. It proposes four patterns of ownership structure: (1) horizontal ownership with a high family stake, (2) horizontal ownership with a low family stake, (3) pyramidal ownership with a high family stake, and (4) pyramidal ownership with low family stake. Further, an attempt has been made to identify the series of economic variables contributing to the varying patterns of ownership structure in the 30 largest Korean conglomerates. Journal: Global Economic Review Pages: 65-92 Issue: 1 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422888 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422888 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:1:p:65-92 Template-Type: ReDIF-Article 1.0 Author-Name: Zhang Yunling Author-X-Name-First: Zhang Author-X-Name-Last: Yunling Title: Toward peace on the Korean Peninsula: What should we do? Abstract: Journal: Global Economic Review Pages: 93-102 Issue: 1 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422889 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422889 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:1:p:93-102 Template-Type: ReDIF-Article 1.0 Author-Name: Randall Peerenboom Author-X-Name-First: Randall Author-X-Name-Last: Peerenboom Title: Social networks, rule of law and economic growth in China: The elusive pursuit of the right combination of private and public ordering Abstract: Social networks have always been an integral part of every society. However, they are different and play a more prominent role in Asian societies. In particular, it will be argued that the relationship of private ordering, networks of relationships, and informal law to formal law are necessary in addition to rule of law for a sustained economic growth. This is evident in how various Asian countries escaped the financial crisis that crippled the region. Rather than an analysis of several different Asian societies, China will be the main focus. Journal: Global Economic Review Pages: 1-19 Issue: 2 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422890 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422890 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:2:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Jane Winn Author-X-Name-First: Jane Author-X-Name-Last: Winn Title: Social networks and electronic commerce in China Abstract: Communications technologies that make up the emerging global information infrastructure have the power to regulate online behavior. Social networks in Chinese society have survived the growth of formal legal institutions and liberalization of China's economy, but it is not clear whether they can survive the regulatory pressures created by global information technology networks. The spread of electronic commerce technologies in China may strengthen legal institutions and open local markets to international competition, but is likely to be resisted by all the same interests that resist those changes in other contexts. The Chinese response to the spread of electronic commerce might take several forms: assimilation; marginalization; or localization of new forms of commercial activity that rely on new technologies. Journal: Global Economic Review Pages: 21-34 Issue: 2 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422891 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422891 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:2:p:21-34 Template-Type: ReDIF-Article 1.0 Author-Name: Sangtu Ko Author-X-Name-First: Sangtu Author-X-Name-Last: Ko Title: Change of U.S.-Russia relations after the September 11 terrorist attacks Abstract: This paper analyzes the changes of U.S.-Russia relations after September 11. The analysis deals with the issues relating to both military and economic cooperation. In particular, this article focuses on examining the impact of the terrorist attacks on U.S.-Russian relations. Specifically, the paper discusses the results of the visit of U.S. President Bush to Russia and its impacts on the relations between the two countries. First, the paper analyzes the U.S. position toward Russia under the Bush Administration before the terrorist attacks. Second, it looks at how Russia perceived and took advantage of the terrorist attacks to improve its relations with the United States. Third, it explores the nature of the quasi alliance between the United States and Russia. And finally, it examines the possibilities and limitations of the long-term cooperation agreement between the U.S. and Russia from an economic and military perspective. Journal: Global Economic Review Pages: 35-47 Issue: 2 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422892 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422892 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:2:p:35-47 Template-Type: ReDIF-Article 1.0 Author-Name: Sukhee Han Author-X-Name-First: Sukhee Author-X-Name-Last: Han Title: Globalization and socialization in China Abstract: The end of the Cold War has marked the rise of globalization as one of the contending issues in international relations. As a dominant wave of world transition, globalization requires the states to coordinate their behavior and align their policies and standards to a generalized principle of conduct or to certain suggested directions. While some states have actively and positively responded to these changes, a few others have struggled to retard the influence of globalization, viewing it as a threat to social stability, state sovereignty, and national and cultural identity. However, China shows a dual response to this challenge. It welcomes globalization as a way to enrich national competitiveness, and it confines the impact of globalization exclusively within the economic field only, lest its regime stability be shaken. Hence, this paper argues that the impact of globalization on Chinese international behavior falls short of a fundamental change in Chinese worldview. To prove this argument, this paper explores the Chinese characteristics of globalization and China's domestic impediments to limit socialization. Journal: Global Economic Review Pages: 49-63 Issue: 2 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422893 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:2:p:49-63 Template-Type: ReDIF-Article 1.0 Author-Name: Jung-Dong Park Author-X-Name-First: Jung-Dong Author-X-Name-Last: Park Title: The growth of Chinese economy and analysis on the industrial competitiveness of Korea and China Abstract: China has propelled towards joining the WTO for almost fifteen years since 1986, and, at last, it joined in late 2001. China's membership in the WTO is expected to bring about tremendous changes to the overall economic environment, structures of trade and industry, as well as her foreign policy. In this article, we will consider China's powerful economic growth by studying the performance and economic issues of its last 20 years, review the major changes due to China's WTO membership, which has notably become an important economic issue, and analyze the industrial competitiveness of Korea and China. Lastly, important suggestions for Korea's economic policy from the economic growth of China and future prospects will be extracted. Journal: Global Economic Review Pages: 65-87 Issue: 2 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422894 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422894 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:2:p:65-87 Template-Type: ReDIF-Article 1.0 Author-Name: Shalendra Sharma Author-X-Name-First: Shalendra Author-X-Name-Last: Sharma Title: Reforming the IMF: Can it serve as an “international lender of last resort?” Abstract: A series of financial crises in emerging market economies during the 1990s have been a catalyst for efforts to strengthen the international financial system. Indeed, much has been done to strengthen the architecture of the international financial system, both in terms of crisis prevention and crisis management. The powerful G-7 countries have made it clear that the International Monetary Fund (IMF) plays a significant role in shaping the new global financial architecture. However, is the IMF up to the task? This paper argues that despite its many limitations, the IMF is an important institution that can strengthen the global financial system. The paper begins with a discussion of what the IMF is and what it is not This will help put in perspective the nature, mandate, and role of this much-misunderstood global institution. The second section reviews some of the recent reforms the IMF has introduced to effectively carry out its new function. While these reforms are hardly revolutionary, they nevertheless, will significantly strengthen both the domestic and international financial system. The third section examines the Achilles heel of the IMF—that its policies promote moral hazard. How effectively have the IMF reforms addressed this? It is argued that although the problems associated with moral hazard can never be fully eliminated, the IMF reforms will greatly mitigate the problem. It is very likely that for the foreseeable future, the IMF will continue to serve as an informal international lender of last resort. Journal: Global Economic Review Pages: 89-104 Issue: 2 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422895 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422895 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:2:p:89-104 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Blank Author-X-Name-First: Stephen Author-X-Name-Last: Blank Title: Economics and security in Northeast Asia: The iron silk road, its context and implications Abstract: In recent years, there have been some developments in East Asia. North Korea has officially stated that it is developing nuclear weapons. Because of this, its neighbours have been uneasy and have resulted in significant changes. Previously, there was a primary drive to develop East Asia's economic potential. South Korea wanted to specialize in certain key strategic industries while becoming the region's business hub. Russia wanted to exploit its vast eastern region for its natural resources and build a railway connecting Europe to East Asia. Japan wants to escape its economic slump. China wants to bring about a new era of prosperity for its people. However, this all changed because of North Korea. Now, these nations are delicately balancing their economic priorities with political and military security. Journal: Global Economic Review Pages: 3-24 Issue: 3 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422897 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:3:p:3-24 Template-Type: ReDIF-Article 1.0 Author-Name: Hee Min Kim Author-X-Name-First: Hee Min Author-X-Name-Last: Kim Author-Name: Jun Choi Author-X-Name-First: Jun Author-X-Name-Last: Choi Title: Uncertainty in foreign policy making: A Bayesian game analysis of Korea Abstract: Bayesian games are used to analyze situations where at least one player is uncertain about the other's preferences. For the past decade or so, the Bayesian models have been rigorously applied to various aspects of international relations involving uncertainty. These models have contributed to our understanding of international relations by uncovering complicated strategic interactions through deductive reasoning and by generating many empirically testable hypotheses. Apart from these efforts for general theory developments, however, scholars rarely applied Bayesian models to analyze real-world international events, although many of them involve situations where one or more players are uncertain about the other's preferences. Some of these events are interesting and important in their own right, given their potential impact on regional security and the amount of attention paid by scholars and politicians alike. Therefore, these cases warrant independent studies utilizing Bayesian models. In this paper, we have developed two Bayesian models for the changing relationships North Korea has with South Korea and the United States. We also discuss another interesting aspect of North-South Korea-United States relations where North Korea is simultaneously playing similar, but separate, games with South Korea and the United States. Journal: Global Economic Review Pages: 25-40 Issue: 3 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422898 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422898 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:3:p:25-40 Template-Type: ReDIF-Article 1.0 Author-Name: Miron Mushkat Author-X-Name-First: Miron Author-X-Name-Last: Mushkat Title: The political economy of China's future Abstract: The Chinese economy and political system have evolved, perhaps even matured, to a point whereby researchers within and without academia deem it appropriate to shift their attention from the immediate past, and of course the present, to the long-term future. Institutional changes, particularly WTO accession, and the challenges posed by modern technology are reinforcing this trend. The more policy sensitive of the two most ambitious exercises in crystal ball gazing, it is argued here, has yielded fascinating insights but, inevitably so given the nature of the undertaking, the questions to which it gives rise match both quantitatively and qualitatively the answers provided. Journal: Global Economic Review Pages: 41-66 Issue: 3 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422899 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422899 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:3:p:41-66 Template-Type: ReDIF-Article 1.0 Author-Name: Uk Heo Author-X-Name-First: Uk Author-X-Name-Last: Heo Author-Name: Karl DeRouen Author-X-Name-First: Karl Author-X-Name-Last: DeRouen Title: Modernization and dependency revisited: U.S. direct investment, development, and polity in Latin America, 1950-1998 Abstract: Since World War II, the modernization model has been the mainstream paradigm for economic development. Modernization assumes that foreign capital is a necessary catalyst for transforming societies from traditional to modem. Challenges to the modernization paradigm culminated in dependency theory. Dependency theorists point to detrimental effects of foreign capital and domination (e.g., income inequality, authoritarianism, and inappropriate consumption). Despite the charge by many scholars that this debate has subsided, basic but important questions remain to be answered. This paper assesses the role of U.S. direct investment (USDI) on the major economies of Latin America over time (1950-1998). Using Vector Autoregression, we look at the long-term political relationships between USDI, economic development, and the degree of authoritarianism in the host country's government. We treat these variables as endogenous as both dependency and modernization hypothesize relationships among them. We find that there are only weak long-term relationships between polity, development, and USDI. These results fully support neither the modernization nor the dependency model. Journal: Global Economic Review Pages: 67-93 Issue: 3 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422900 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422900 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:3:p:67-93 Template-Type: ReDIF-Article 1.0 Author-Name: Ihn-Hwi Park Author-X-Name-First: Ihn-Hwi Author-X-Name-Last: Park Title: APEC and Asia-Pacific regionalism: Conditions and prospects Abstract: After the Cold War and the financial crisis that wreaked havoc throughout Asia, the Asia-Pacific region has realized the importance of their interdependence. Economic prosperity will be the cornerstone of how the world will prosper throughout the 21st century. Because of globalization, the world is changing very rapidly and thus trying to cope with adjustments. The world trade order has changed and regional trading blocs are emerging after the fall of a bipolar world, which were dominated by the communist bloc and the capitalist bloc. After the collapse of the Soviet Union, capitalism has changed how countries perceive their national interests. An analysis is provided for the growth of regionalism and the future possibilities of the Asia-Pacific Economic Cooperation (APEC). Journal: Global Economic Review Pages: 95-108 Issue: 3 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422901 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422901 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:3:p:95-108 Template-Type: ReDIF-Article 1.0 Author-Name: Shaomin Li Author-X-Name-First: Shaomin Author-X-Name-Last: Li Author-Name: Edward Jow-Ching Tu Author-X-Name-First: Edward Jow-Ching Author-X-Name-Last: Tu Author-Name: Ming Ouyang Author-X-Name-First: Ming Author-X-Name-Last: Ouyang Title: A model of intermarriage involving attribute exchange Abstract: The increasing pace of globalization has significantly affected our lives in many profound ways. One of the consequences of globalization is the rise of intermarriage, i.e., the marriage between couples of different nationalities or different social, economic, religious, or racial backgrounds. Since our understanding of intermarriage is limited, this paper attempts to shed lights on intermarriage by developing a formal model based on attribute exchange. After examining the motivation and micro and macro consequences of intermarriages, our model shows that different value systems regarding marital attributes among different groups drive individuals with attributes valued lower in their group to seek intermarriage. As a result, the essence of intermarriages is the movement of attributes from groups in which such attributes are relatively abundant to groups where the same attributes are relatively scarce. Thus, intermarriage makes individuals with attributes valued lower in their original groups better off. At the inter-societal (or inter-group) level, the equilibrium of intermarriage is determined by the relative scarcity of marital attributes in different groups (societies). In the long run, intermarriages converge different groups in terms of their value systems regarding marriage. Journal: Global Economic Review Pages: 109-124 Issue: 3 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422902 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:3:p:109-124 Template-Type: ReDIF-Article 1.0 Author-Name: Shiping Tang Author-X-Name-First: Shiping Author-X-Name-Last: Tang Title: Institution building under “10+3”: Tackling the practical issues Abstract: Using institution-building theory from the school of neoliberalism, the paper examines the role of leadership and institutional bargaining in moving the “10+3” regional cooperation framework forward. The core argument developed here is that close cooperation between Japan and China is key to the future of “10+3”, and ASEAN states and South Korea should utilize the “10+3” platform for bringing Japan and China together. Finally, some ASEAN states' fear that a more integrated East Asia will mean the withdrawal of U.S. presence in the region is very remote. Journal: Global Economic Review Pages: 3-16 Issue: 4 Volume: 31 Year: 2002 Keywords: “10+3”, institution building, leadership, bargaining, mentality change, X-DOI: 10.1080/12265080208422903 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422903 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:4:p:3-16 Template-Type: ReDIF-Article 1.0 Author-Name: Bernhard Seliger Author-X-Name-First: Bernhard Author-X-Name-Last: Seliger Title: Economic integration in northeast Asia: Preconditions and possible trajectories Abstract: When in November 2001, the leaders of the Southeast Asian and Northeast Asian states met for the “ASEAN (Association of South East Asian Nations) plus three (China, Japan and Korea),” President Kim Dae-Jung of South Korea proposed the exploration for an East Asian Free Trade Area (EAFTA) and thereby opened a new chapter of East Asian integration. The special Northeast Asian perspective on regional co-operation became clear by the simultaneous decision to hold annual meetings of finance and trade ministers of China, Japan and Korea. At the same time, bilateral agreements, like a free trade area between Japan and Singapore, the tentative large free trade area between ASEAN and China and the work-in-progress on a Korean-Japanese Free Trade Area, show the devotion and sometimes even obsession of current policy-making with reaching regional trade agreements. Regional integration, it seems, is finally on the Northeast Asian agenda. In this paper, the preconditions and perspectives of economic integration in Northeast Asia will be explored. Since economic integration is in various ways linked to political factors, the second section discusses the geo-political situation of Northeast Asia today. The third section deals with the economic perspectives of different forms of trade integration, followed by an analysis of various attempts for greater macro-economic and financial co-operation and a short conclusion. Journal: Global Economic Review Pages: 17-38 Issue: 4 Volume: 31 Year: 2002 Keywords: economic integration, free trade area, regionalism, Northeast Asia, institutional development, X-DOI: 10.1080/12265080208422904 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422904 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:4:p:17-38 Template-Type: ReDIF-Article 1.0 Author-Name: Mark Bandman Author-X-Name-First: Mark Author-X-Name-Last: Bandman Author-Name: Vladimir Malov Author-X-Name-First: Vladimir Author-X-Name-Last: Malov Title: New transport system formation as an entrance to the world market for Siberian regions Abstract: Russia is now essentially more open to the world market and to the world community. The geographical reasons predetermine the shortest way of connection between Europe and North East Asia (NEA); it is the railroad through Russia, using Transsiberia. The Yenisei River is the shortest and the cheapest way to the North East Route (NER) for many regions of Siberia. The problem of using NER is now very interesting for the states of Northern Europe, Japan, and South Korea. There are a lot of resources in Siberia—timber, nonferrous metals (lead and zinc), gold, oil and gas, and the cheapest source of electricity. Based on this combination, it is possible to produce many kinds of goods (not only resources). There are some negotiations with China, Japan, and South Korea about the so-called “East Energy Bridge,” for the purpose of the transmission of electricity and gas from East Siberia. Journal: Global Economic Review Pages: 39-55 Issue: 4 Volume: 31 Year: 2002 Keywords: Siberia, transport, Transsiberian, transcontinental line, the Lower Angara Region (LAR), BAM, X-DOI: 10.1080/12265080208422905 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:4:p:39-55 Template-Type: ReDIF-Article 1.0 Author-Name: Dong-Jin Jang Author-X-Name-First: Dong-Jin Author-X-Name-Last: Jang Title: Distributive justice in Korean politics after the IMF Bailout Abstract: The Korean reform policy in the aftermath of the 1997 economic crisis has been confronted with the problem of distributive justice. In relation to distributive justice in the reform process, this paper addresses the communitarian-liberal solution of 'more burden on the better-off, less burden on the worse-off,' which accords with the 'difference principle' of Rawls. This solution may be reasonably supported by all sectors of society for two reasons. One reason lies in the fact that the current social stratification in Korea has been largely affected by the economic policies of the past developmental state rather than individual choices, and that each individual sector, especially the advantaged group, has a weak legitimate claim over its social position. Thus, it seems fair to share the social burden in the extensive reform process according to the principle of capability. The other reason is based on the principle of minimizing social cost accruing from social economic conflict Indeed, this solution reflects a blend of liberal values and the good of the community. Journal: Global Economic Review Pages: 57-73 Issue: 4 Volume: 31 Year: 2002 Keywords: distributive justice, Korean reform policy, IMF, principle of capability, difference principle, communitarian-liberal solution, X-DOI: 10.1080/12265080208422906 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422906 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:4:p:57-73 Template-Type: ReDIF-Article 1.0 Author-Name: Byung-il Choi Author-X-Name-First: Byung-il Author-X-Name-Last: Choi Title: When culture meets trade: Screen quota in Korea Abstract: This paper probes into what goes behind the publicly-stated dichotomy of “cultural diversity” versus “pro-competition” in the domestic battle of screen quota. Using a multi-stakeholder model, the paper analyzes who the key players are, what interests they represent, and how much influence they wield to force the outcome to their preference. The forecasted domestic equilibrium is biased toward the status quo or the long-term phase out, which is apparently unacceptable to the U.S. in the negotiations of the bilateral investment treaty (BIT). Consequently, the stalemate of the BIT negotiations is only natural and reasonable. The forecasting model used in this paper offers several important directions and guidelines for such strategy as the timing of decision-making, coalition building and issue linkage. Journal: Global Economic Review Pages: 75-90 Issue: 4 Volume: 31 Year: 2002 X-DOI: 10.1080/12265080208422907 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:4:p:75-90 Template-Type: ReDIF-Article 1.0 Author-Name: Narushige Michishita Author-X-Name-First: Narushige Author-X-Name-Last: Michishita Title: Changing faces of Japanese defense policy: Past and future Abstract: During the Cold War, Japan played a strategic role by contributing to the global containment against the Soviet Union. After the Cold War, Japan became more active operationally and better prepared legally. However, it did not play significant strategic roles in shaping the post-Cold War international order. The question now is whether Japan will play strategic roles in the future. Given the changes in the domestic political outlook, political capital necessary for redefining Japanese defense policy seems to be forthcoming. Japan could play strategic roles particularly in ballistic missile defense and U.S.-Japan defense cooperation. Journal: Global Economic Review Pages: 91-100 Issue: 4 Volume: 31 Year: 2002 Keywords: Japan, defense, security, Cold War, missile defense, Korea, United States, X-DOI: 10.1080/12265080208422908 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080208422908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:31:y:2002:i:4:p:91-100 Template-Type: ReDIF-Article 1.0 Author-Name: Sim-Yee Lau Author-X-Name-First: Sim-Yee Author-X-Name-Last: Lau Author-Name: Takashi Shirasu Author-X-Name-First: Takashi Author-X-Name-Last: Shirasu Title: China, Japan and Korea: Prospects for enhancing closer economic relations Abstract: The paper aims to examine the prospects for closer economic relations among China, Japan and Korea. Using the Grubel-Lyold Index, this paper reviews the industrial structural change and its related trade patterns in terms of intra-regional, intra-industry trade and the comparative advantages among these three countries. On the basis of our analysis, this paper highlights several key areas in trade facilitation and investments for enhancing trilateral economic relationships. In addition, the paper also provides an analysis of the development in the information and communication sectors (in view of their potential for sustained economic growth) in these three countries, and then offers some suggestions for cooperation among China, Japan and Korea in these sectors. Journal: Global Economic Review Pages: 3-19 Issue: 1 Volume: 32 Year: 2003 Keywords: closer economic relations, Grubel-Lyold Index (GLI), revealed comparative advantage (RCA), information and communication technology (ICT), intra-industry trade, intra-regional trade, X-DOI: 10.1080/12265080308422909 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422909 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:1:p:3-19 Template-Type: ReDIF-Article 1.0 Author-Name: Xiangshuo Yin Author-X-Name-First: Xiangshuo Author-X-Name-Last: Yin Title: Regional economic cooperation and the Chinese economy Abstract: This paper mainly analyses the impact of the development of the Chinese economy on Northeast Asian economic cooperation after its WTO accession, and also the impact of closer regional cooperation on the development of the Chinese economy. Trade and investment relations between China, Korea, and Japan in the past twenty years are explored to illustrate this trend. Possible changes in China's policy toward regional economic cooperation in Northeast Asia are discussed to show the possibility of closer regional economic cooperation. Journal: Global Economic Review Pages: 21-38 Issue: 1 Volume: 32 Year: 2003 Keywords: regional economic cooperation, Chinese economy, Northeast Asia, X-DOI: 10.1080/12265080308422910 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:1:p:21-38 Template-Type: ReDIF-Article 1.0 Author-Name: Boris Saneev Author-X-Name-First: Boris Author-X-Name-Last: Saneev Title: Energy cooperation between Russia and Northeast Asian countries: Prerequisities, directions and problems Abstract: The paper deals with prerequisites, conditions, problems and directions of energy cooperation between Russia and Northeast Asian (NEA) countries. It describes a transition period of the Russian economy, shows the significance of the Eastern energy policy of Russia, and the role the fuel and energy potential of the Eastern regions of Russia can play in its implementation. Prediction of the economy and energy development in the eastern regions of Russia is given in terms of export of Russian energy resources to Japan, China, Korea and other NEA countries. A comprehensive strategy of energy cooperation for NEA countries is shown and elaborated. Journal: Global Economic Review Pages: 39-55 Issue: 1 Volume: 32 Year: 2003 Keywords: energy cooperation in Northeast Asia, fuel and energy, Eastern energy policy of Russia, strategy of energy cooperation, X-DOI: 10.1080/12265080308422911 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:1:p:39-55 Template-Type: ReDIF-Article 1.0 Author-Name: O. Yul Kwon Author-X-Name-First: O. Yul Author-X-Name-Last: Kwon Title: Korea's economic strategy under the Roh Moo-Hyun government: A proposal Abstract: This paper is a proposal for Korea's economic strategy under the Roh regime and beyond. Since economic strategy is predicated on the nation's economic objective and policy environments, sustainable and equitable economic development is regarded as the key objective. Major trends are identified in the policy environment, including the emerging globalization and information era, demographic changes, declining savings and investment rates, and a widening digital divide. In light of these trends, the Korean government should play a complementary role to the private sector, providing a robust infrastructure to safeguard the private sector's development and to attract mobile resources from abroad. Also, Korea must embrace market principles and global standards, and implement appropriate human resources and equity policies. Journal: Global Economic Review Pages: 57-79 Issue: 1 Volume: 32 Year: 2003 Keywords: Korean economy, policy environments, economic strategy, sustainable development, equitable development, X-DOI: 10.1080/12265080308422912 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422912 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:1:p:57-79 Template-Type: ReDIF-Article 1.0 Author-Name: Andres Franco Author-X-Name-First: Andres Author-X-Name-Last: Franco Author-Name: Philippe De Lombaerde Author-X-Name-First: Philippe Author-X-Name-Last: De Lombaerde Title: Latin American multinationals: A historical and theoretical approach Abstract: Among the so-called multinationals from the South, Latin American multinationals are outstanding for being pioneers. Their history goes even back to the end of the 19th century. In this article, we sketch a brief history of Latin American multinationals, but we concentrate on their development and growing importance since the 1980s within the context of economic reforms and globalization. We then apply a theoretical and typological perspective in order to characterize these multinational companies and to identify the elements that will condition their future behavior and development Journal: Global Economic Review Pages: 81-102 Issue: 1 Volume: 32 Year: 2003 Keywords: Multinational enterprise, Latin America, South, theory, X-DOI: 10.1080/12265080308422913 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422913 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:1:p:81-102 Template-Type: ReDIF-Article 1.0 Author-Name: Miron Mushkat Author-X-Name-First: Miron Author-X-Name-Last: Mushkat Title: The political economy of state failure Abstract: State failure is more common than generally assumed and often has distinctly negative consequences that may manifest themselves in neighboring countries. For this reason, it has attracted considerable attention in academic and policy circles alike. The researchers exploring the phenomenon have followed a rather narrow path, however, and there is substantial scope to broaden the breadth of inquiry. While the analytical efforts over the past decade to come to grips with the phenomenon of state failure have borne fruit in terms of identifying the key independent variables, the understanding of the mechanism through which they exert their influence on the dependent variable has not been significantly enhanced. The assertion is particularly valid with respect to adverse and abrupt regime transitions. The purpose of this paper is to examine, in light of the author's experience in grappling with state failure in the Chinese context, the potential for systematically expanding the research agenda in a conceptual/theoretical direction. Journal: Global Economic Review Pages: 103-118 Issue: 1 Volume: 32 Year: 2003 Keywords: political economy, polity, social science, economic theory, X-DOI: 10.1080/12265080308422914 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422914 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:1:p:103-118 Template-Type: ReDIF-Article 1.0 Author-Name: Chulki Ju Author-X-Name-First: Chulki Author-X-Name-Last: Ju Title: The competitive liberalization of world trade and Korea's foreign trade policy Abstract: The purpose of this paper is to shed light on the existing relationship between multilateralism and regionalism in international trade and the process of competitive liberalization of world trade, and to draw useful lessons for the foreign trade policy of the Republic of Korea. The author first analyzes the deepening process of multilateral trade and the proliferation of regional trade mechanisms at the global level. Subsequently, he comparatively analyzes recent characteristics of the trade policies of the U.S. and the EU as major players in international trade, pursuing parallel track of multilateral and regional approaches. In Asian context, the recent trade policies of Japan and China show that they also have embarked on the dual trade policies of multilateralism and regionalism. In this era of competitive liberalization of world trade, Korea should not be left behind in this process. As a widely trading nation, Korea should promote active trade policies of combining multilateral, regional and bilateral approaches. Journal: Global Economic Review Pages: 1-19 Issue: 2 Volume: 32 Year: 2003 Keywords: competitive liberalization, multilateralism, regionalism, Doha Development Agenda (DDA), Free Trade Area (FTA), Korea-Japan-China FTA, Northeast Asian Economic Cooperation Organization (NAECO), X-DOI: 10.1080/12265080308422915 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:2:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Uk Heo Author-X-Name-First: Uk Author-X-Name-Last: Heo Author-Name: Alexander Tan Author-X-Name-First: Alexander Author-X-Name-Last: Tan Title: Institutions, choices, and outcomes: A comparative analysis of the 1997 financial crisis experience in South Korea and Taiwan Abstract: South Korea and Taiwan have similar experiences as to political and economic development, i.e., rapid economic growth and democratization. However, the 1997 financial crisis experiences were quite different South Korea was hit hard by the crisis whereas Taiwan was barely touched. Why were the experiences different between South Korea and Taiwan? We argue that economic fundamentals were differential leading up to the crisis. More importantly, the differences in the pace of financial liberalization and the method that South Korea financed its growth particularly in the 1990s were much different than Taiwan's. We also argue that the differential impact of the crisis on the two countries can be attributed to the institutions of their respective political economy, decentralized vs. concentrated industrial structure, and interest group structure that helped in the creation of an autonomous state. Given the dominance of SMEs (small and medium sized enterprises) and the state's control of critical resources along with dispersed and weak interest group structures, economic technocrats in Taiwan were able to employ tough pre and post-crisis policies to maintain Taiwan's economic viability, whereas South Korea was not able to. Journal: Global Economic Review Pages: 21-41 Issue: 2 Volume: 32 Year: 2003 Keywords: financial crisis, financial liberalization, institutions, political-business ties, interest groups, industrial structure, X-DOI: 10.1080/12265080308422916 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:2:p:21-41 Template-Type: ReDIF-Article 1.0 Author-Name: Seungwook Bahng Author-X-Name-First: Seungwook Author-X-Name-Last: Bahng Title: The response of the Indian stock market to the movement of Asia's emerging markets: From isolation toward integration? Abstract: This paper investigates the existence of the inter-dependence between the Indian stock market and Asia's emerging markets since 1990. This study analyzes whether the MSCI Asian Index has significantly influenced the Bombay Stock Exchange Index before, during, and after the Asian financial crisis. To address this issue, the author first uses a rolling correlation, and conduct uni-directional and bi-directional causality tests using the Granger causality test. He then examines the impulse response functions and variance decompositions of forecast errors based on a VAR (vector auto-regression) model. These tests provide evidence that the influence of the Asian market on the Indian market has increased during and after the Asian financial crisis. These results can be interpreted as evidence that the Indian market has been moving toward integration with other Asian markets. Journal: Global Economic Review Pages: 43-58 Issue: 2 Volume: 32 Year: 2003 Keywords: Indian stock market, Asian financial crisis, VAR, Bombay stock exchange, Asia's emerging markets, X-DOI: 10.1080/12265080308422917 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422917 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:2:p:43-58 Template-Type: ReDIF-Article 1.0 Author-Name: Kiwon Kang Author-X-Name-First: Kiwon Author-X-Name-Last: Kang Title: Changes of Thai economy since 1970 1 Abstract: Within the last 30 years, the number of Thai population increased from 35 million to 62 million, the general price level went up 6 times, and Thai currency baht devaluated 2.2 times against the dollar. The industrial production increased 36 times nominally. The biggest industry of Thailand changed from agriculture to manufacture, and the total value of exports jumped by 192 times and that of imports grew by 95 times. Thai current account balance had recorded a deficit every year from 1970 to 1996. During the same period of time, however, the capital account balance had shown surplus. The inflow of foreign capital was the only stronghold of Thai economy at that time. In 1997, Thailand suddenly experienced a total change of its external environment From then on, Thai current account shifted from a deficit to a surplus and Thai capital account turned from a surplus to a deficit. The conclusion of this paper indicates that the future of Thai economy is heavily dependent on whether the amount of surplus in Thai current account could surpass the deficit in Thai capital account Journal: Global Economic Review Pages: 59-90 Issue: 2 Volume: 32 Year: 2003 Keywords: Thai economy, Thai per-capita GDP, Thai labor force, Thai foreign currency crisis, Thai industrial sectors, Thai balance of payment, Thai external debt, X-DOI: 10.1080/12265080308422918 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422918 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:2:p:59-90 Template-Type: ReDIF-Article 1.0 Author-Name: Kwok-bun Chan Author-X-Name-First: Kwok-bun Author-X-Name-Last: Chan Title: Inner hybridity in the city: Toward a critique of multiculturalism Abstract: Muddled as an idea and flawed as a public policy, multiculturalism in Canada advocates conformity to a unitary culture in the public place and tolerance of diverse cultures in the private place. This tolerance of cultural heterogeneity in the sphere of the intimate is often upheld as a defining characteristic of Canadian society. Yet multiculturalism is not without criticisms. For one, multiculturalism is at odds with the desire of the children and grandchildren of the Chinese immigrants in Canada to adapt themselves to their host society, thus transforming themselves as well as the laglecrv society. A multicultural policy that continues to hark back to the past turns a blind eye to the fierce generation and gender politics within the Chinese family. Neither does the multicultural policy square well with a more progressive social theory of self, identity, and culture that is cognizant of the duality of the psychological make-up of human beings: that one looks backward and forward, committed to preserving roots of the past and exploring routes to the future. As such, the Canadian multicultural policy suffers in a two-fold way: empirical and theoretical. A possible way out is to pursue a Hegelian dialectics that sees culture as an aftermath of a collision of dissimilar cultures, a kind of forced entanglement of things different We need a new urban social theory that sees integration, fusion, and hybridization—not assimilation, and not cultural pluralism—as possible and desirable outcomes. This is a completely different vision of society altogether, a kind of Utopia. We need a public policy that sees a distinct promise of the city in designing institutions and public spaces that promote hybridism in the mind, an inner deliberation, a mental turmoil—which is not afraid of confronting modern life's many moments of contradictions, ironies and paradoxes. Journal: Global Economic Review Pages: 91-105 Issue: 2 Volume: 32 Year: 2003 Keywords: Multiculturalism, pluralism, public/private divide, assimilation, hybridism, X-DOI: 10.1080/12265080308422919 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422919 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:2:p:91-105 Template-Type: ReDIF-Article 1.0 Author-Name: Taeyoung Yoon Author-X-Name-First: Taeyoung Author-X-Name-Last: Yoon Title: The role of U.S. naval power in the Asia-pacific region: From regional protector to regional balancer Abstract: For more than four decades, U.S. engagement in the Asia-Pacific was centered on two premises: a Cold War commitment to Asian security and the remarkable economic power of the U.S. The U.S. Navy provided a symbol of the United States' commitment to protect its interests and those of its major Asian-pacific allies. Despite the end of the Cold War, the security environment of the Asia-Pacific region is still less changed and even a new threat of a regional naval arms race emerged in the 1990s. In this context, although forward deployments of U.S. military power in the Western Pacific have been scaled down, it is certain that the U.S. naval force will continue to play an important role as a key “regional balancer.” Amid the collapse of the Soviet Union and in the post-Cold War era, the U.S. has still emphasized the maintenance of a U.S. forward-deployed presence and strong defense alliances with U.S. allies in order to prevent the emergence of regional hegemonic powers and to contribute to regional stability as well as improve U.S. economic interests. Moreover, in the face of a multitude of threats from state and non-state actors, the U.S. Navy is increasingly focused on and driven by the demands of peacetime and crisis forward presence. Journal: Global Economic Review Pages: 107-122 Issue: 2 Volume: 32 Year: 2003 Keywords: U.S. naval power, naval strategy, regional balancer, forward presence, Asia-Pacific region, X-DOI: 10.1080/12265080308422920 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422920 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:2:p:107-122 Template-Type: ReDIF-Article 1.0 Author-Name: Woosang Kim Author-X-Name-First: Woosang Author-X-Name-Last: Kim Title: Editor's note Abstract: Journal: Global Economic Review Pages: 1-1 Issue: 3 Volume: 32 Year: 2003 X-DOI: 10.1080/12265080308422921 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422921 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:3:p:1-1 Template-Type: ReDIF-Article 1.0 Author-Name: Amitav Acharya Author-X-Name-First: Amitav Author-X-Name-Last: Acharya Title: Guns and butter: Why do human security and traditional security co-exist in Asia? Abstract: This paper examines the concept of human security as it applies to Asia, in challenging the dominance of the national security paradigm in Asia. To understand the concept of human security, we may combine the interdependent understandings of freedom from fear, freedom from want, and freedom from suffering in times of conflict To make the distinction between human security and national security, we may highlight the following three important questions: whose security, security against what, and security in which areas. Journal: Global Economic Review Pages: 1-21 Issue: 3 Volume: 32 Year: 2003 Keywords: human security, national security, defense spending, conflict, the Asian nation-state, transnational challenges, X-DOI: 10.1080/12265080308422922 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422922 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:3:p:1-21 Template-Type: ReDIF-Article 1.0 Author-Name: Woosang Kim Author-X-Name-First: Woosang Author-X-Name-Last: Kim Author-Name: Sung-Kwon Cho Author-X-Name-First: Sung-Kwon Author-X-Name-Last: Cho Title: Human security in the Korean Penninsula: A case of the north Korean drug trafficking Abstract: In this paper, we introduce the concept of human security as it is currently developing and try to locate the concept of human security within the context of comprehensive security and national security. As a case study, we also introduce the historical trend of North Korean drug trafficking and discuss its impact on human security around the Korean peninsula. We present several efficient countermeasures . to North Korea's drug trafficking operations. Journal: Global Economic Review Pages: 23-39 Issue: 3 Volume: 32 Year: 2003 Keywords: North Korean regime, drug-trafficking, national security, human security, transnational crime, X-DOI: 10.1080/12265080308422923 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:3:p:23-39 Template-Type: ReDIF-Article 1.0 Author-Name: Shin-wha Lee Author-X-Name-First: Shin-wha Author-X-Name-Last: Lee Title: Human security aspects of international migration: The case of South Korea Abstract: While the discourse in defining security has mainly remained at the conceptual and abstract levels, there has been a growing need to consider newly identified security tasks in order to bring about effective policy and institutional responses. One important agenda, which requires such policy and institutional adjustments, deals with how to effectively manage the growing movement of peoples both at the intra-and international levels and with how to ensure the individual rights of various types of migrants. This paper intends to examine the issue of international migration from a human security perspective, with particular reference to the migration policies and practices of South Korea. After an extensive analysis of the data gathered, this paper claims that despite some improvements, the efforts of the Korean government are still proven unsatisfactory because it has often addressed the issues of emigrants and immigrants from the perspectives of domestic governance and foreign relations. For South Korea to protect and promote the rights and demands of emigrants and immigrants, refugees and asylum seekers, and victims of human trafficking, humanitarian concerns should always be considered a national priority no matter what political, security, economic agendas exist Journal: Global Economic Review Pages: 41-66 Issue: 3 Volume: 32 Year: 2003 Keywords: human security, international migration, Korean emigratioii/immigration policies, human trafficking, refugees, asylum seekers, X-DOI: 10.1080/12265080308422924 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:3:p:41-66 Template-Type: ReDIF-Article 1.0 Author-Name: Hyun-Seok Yu Author-X-Name-First: Hyun-Seok Author-X-Name-Last: Yu Title: Economic threat to human security: Household debt problem in Korea Abstract: Economic crisis is perceived as an important threat to the economic security of a nation state. It often brings about the collapse of national economic system, which has an important ramification to national security. This study attempts to analyze the impact of the 1997 economic crisis on the human security in Korea, and the economic policy introduced by the government to overcome the crisis. This study reveals that the. policy package introduced to stimulate domestic demand and resolve the unemployment problem has brought about the household debt crisis in Korea, which is not just an economic problem but a social and human problem. In a society, which lacks proper rescue institutions, like Korea, household debt problem has often resulted in family suicide and crime, consequently becoming a major blow to human security. The Korean case illustrates the negative human security implications of the policy package designed to improve the national economic security of the country. Journal: Global Economic Review Pages: 67-83 Issue: 3 Volume: 32 Year: 2003 Keywords: national security, human security, economic policy, household debt, suicide and crime, X-DOI: 10.1080/12265080308422925 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:3:p:67-83 Template-Type: ReDIF-Article 1.0 Author-Name: Tae-Hyo Kim Author-X-Name-First: Tae-Hyo Author-X-Name-Last: Kim Title: War on weapons of mass destruction and terrorism: The right track for human security? Abstract: Despite the September 11 incident and the proliferation of Weapons of Mass Destruction (WMD), the United States should consider investing more resources in consolidating its alliances and security network rather than focusing all its energy on the WMD pursuers and terrorists per se. Advancing its existing grand strategy of promoting democracy and the market economy, the United States may need to draw more support from its major security partners to be better prepared against the multi-spectrum conflicts. America's predominant “hard power” may put the threats of WMD and terrorism to sleep temporarily, but these threats cannot be fundamentally cured unless approached by “soft power.” The current threats on global security should be handled through a human security rationale upon which all major powers can agree and be willing to support America's leading role. Journal: Global Economic Review Pages: 85-93 Issue: 3 Volume: 32 Year: 2003 Keywords: Weapons of Mass Destruction (WMD), terrorism, democracy, market economy, global security, human security, X-DOI: 10.1080/12265080308422926 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:3:p:85-93 Template-Type: ReDIF-Article 1.0 Author-Name: Ken Jimbo Author-X-Name-First: Ken Author-X-Name-Last: Jimbo Title: Emerging feature of multilateral security in Asia-pacific: From “double-track” to “multi-layered” mechanism Abstract: Besides the ASEAN Regional Forum (ARF), there have been other emerging features of security cooperation in East Asia that are not necessarily based on geographical groupings but on security concerns and capability. These multidimensional developments indicate that security cooperation in East Asia is far more complex today than a traditional bi-multi nexus model. The “double-track” approach is now entering into the new phase especially in the wake of various forms of multilateral security mechanisms that have been revealing in recent years in Asia-Pacific. To analyze and discuss the emerging characteristics of the Asia-Pacific security, this essay reviews, compares and assesses cases of both approaches in the Asia-Pacific region. First, it analyzes the development process of the ARF, the prime body for security cooperation, with regard to its achievements and limits. Second, it tries to discover the new features of multilateral security based on “enhanced bilateralism” taking the examples of 'Team Challenge” and Proliferation Security Initiative (PSI). Finally, it forecasts the future developments of these two approaches and how they will converge as a multi-layered security mechanism in this region. Journal: Global Economic Review Pages: 95-108 Issue: 3 Volume: 32 Year: 2003 Keywords: ARF, security cooperation, double-track approach, multi-layered security mechanism, bilateralism, Team Challenge, Proliferation Security Initiatives (PSI), X-DOI: 10.1080/12265080308422927 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422927 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:3:p:95-108 Template-Type: ReDIF-Article 1.0 Author-Name: Whasun Jho Author-X-Name-First: Whasun Author-X-Name-Last: Jho Title: Theoretical review of globalization thesis: Capital mobility and the state Abstract: The purpose of this paper is to analyze the present understanding of the political economy of globalization, in particular the globalization of capital. In the contemporary age, the regulatory capacity of the state seems to stand in a different relation to the transnational capital because its space is not bound by conventional jurisdictions. This paper closely examines how the transnational capital influences the politics of the state. It takes the increasing capital mobility as one of the key features of globalization, and explores the impact of capital mobility on politics in relation to the convergence and divergence debates among scholars. It deals in detail with the impacts of globalization on monetary autonomy of the state, on financial market governance, and on labor market governance, and discusses how capital mobility influences the politics of the state, enforcing the power configuration among the state, capital, and labor. Journal: Global Economic Review Pages: 1-19 Issue: 4 Volume: 32 Year: 2003 Keywords: capital mobility, globalization, transnational capital, convergence, divergence, X-DOI: 10.1080/12265080308422928 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422928 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:4:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Young-il Park Author-X-Name-First: Young-il Author-X-Name-Last: Park Title: Toward regional financial and monetary cooperation in East Asia Abstract: The financial and economic crisis in 1997-98 came as a dramatic shock to East Asian economies, and has prompted to institutionalize a regional financial and monetary cooperation. This paper demonstrates the strong will of East Asian countries to develop the regional financial and monetary cooperation, outlines recent developments, and provides possible prospects for the future. It points out that the option to keep consistent with the IMF system actually weakens regional solidarity, and recommends an immediate establishment of a strong regional surveillance and peer pressure mechanism for the Chiang Mai Initiative (CMI) to evolve into a common pool of foreign exchange reserves, a sort of East Asian IMF. It also argues that East Asian countries should closely coordinate their exchange rate regime to maintain intra-regional and extra-regional exchange rate stability. Journal: Global Economic Review Pages: 21-44 Issue: 4 Volume: 32 Year: 2003 Keywords: East Asian economy, regional financial and monetary cooperation, economic integration, the Chiang Mai Initiatives (CMI), East Asian regionalism, X-DOI: 10.1080/12265080308422929 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422929 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:4:p:21-44 Template-Type: ReDIF-Article 1.0 Author-Name: In Soo Kang Author-X-Name-First: In Soo Author-X-Name-Last: Kang Title: Competition policy in Indonesia: Conglomerates versus SMEs Abstract: Since the currency crisis, Indonesia has undergone rapid economic and political changes. However, the IMF-directed recovery program, such as decentralization, does not seem successful. Despite the improvised legal system, the implementation of the recovery program is very poor. Lack of consensus on the role of conglomerates and the direction of competition policy, has prevented Indonesia from recovery. Anti-conglomerate sentiment of the post-Suharto times has given rise to unbalanced competition law and inconsistency among related laws. Treatment of the banking sector including ownership is a critical factor in the recapitalization process. Due to the similarity between Indonesia and Korea, Korean experiences would help Indonesia to establish the principles on competition policy. The separation principle is strongly recommended for Indonesia at the current development stage, and it is urgent to establish a rule-based, not a discretion-based, economy. The problems of conglomerates should be resolved through comprehensive competition policies. Journal: Global Economic Review Pages: 45-66 Issue: 4 Volume: 32 Year: 2003 Keywords: competition policy, conglomerate, corporate governance, small-and medium-sized enterprises (SMEs), banking sector, competition law, privatization, liberalization, deregulation, decentralization, X-DOI: 10.1080/12265080308422930 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422930 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:4:p:45-66 Template-Type: ReDIF-Article 1.0 Author-Name: Won-Deog Lee Author-X-Name-First: Won-Deog Author-X-Name-Last: Lee Title: Northern policy and Japan: North Korea-Japan normalization negotiations and Japanese policy towards North Korea Abstract: This paper seeks to examine the reality of the North Korea-Japan negotiations, which have continued intermittently for more than 13 years since Kanemaru's visit to North Korea. It also analyzes Japanese foreign policy toward the North during the normalization negotiations at both international and domestic levels, and studies the effect that the normalization of relations of the two neighbor states will have on the Korean peninsula. To conclude, it argues that Japan's engagement policy would be expected to contribute to the stability and peace of the Korean peninsula and East Asia. Journal: Global Economic Review Pages: 67-94 Issue: 4 Volume: 32 Year: 2003 Keywords: Japan, North Korea, Northern policy, normalization, foreign policy, Korean peninsula, X-DOI: 10.1080/12265080308422931 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422931 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:4:p:67-94 Template-Type: ReDIF-Article 1.0 Author-Name: Chang Hoon Cha Author-X-Name-First: Chang Hoon Author-X-Name-Last: Cha Title: The new growing paradigm of Chinese security perspective Abstract: Throughout history, Chinese international behavior suggests that security calculations have remained and continue to be an inherent force in the minds of Chinese foreign policy decision-makers. Since China launched its open-door policy in 1979, the way the Chinese think and assess the field has significantly changed. Today, the once widely supported realist approach is being rejected by a growing body of Chinese experts who now view the world as increasingly interdependent in both economic and security terms. This paper shows how the Chinese perspective on security issues has diversified and significantly transformed into a more interdependent viewpoint. Despite general skepticism over whether China has learned the inevitability of state sovereignty infringement in the globalization age, Chinese analysts came to understand and believe in the necessity of the security regime and multilateralism in the post-Cold War period. The “new security concept” exemplified the development of the mutual security in the late 1990s. Whether the Chinese design based on the new idea will be realized is unclear, given the present security structure dominated by the U.S.-alliance system. However, the new growing paradigm of the Chinese security perspective might play an important role in the process of building multilateral security institutions and regimes in the region, and participation and influence might be China's intention as a responsible regional power Journal: Global Economic Review Pages: 95-119 Issue: 4 Volume: 32 Year: 2003 Keywords: Chinese security perspective, Chinese foreign policy, new security concept, multilateralism, interdependence, national interest, military doctrine, X-DOI: 10.1080/12265080308422932 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:4:p:95-119 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Blank Author-X-Name-First: Stephen Author-X-Name-Last: Blank Title: Xinjiang and China's security Abstract: Central Asia occupies a growing role in Chinese security policy. However, an examination of China's Central Asian policies reveals that they are essentially external projections of Beijing's vital interest of internal security in neighboring Xinjiang. Accordingly, this paper examines Xinjiang's importance for China's overall security policies. Through this examination, it becomes clear that the Xinjiang problem very much resembles that of other discontented provinces within a multinational state with a continuing imperial vocation. China's problems in Xinjiang will continue, and have important repercussions for its domestic and foreign policies, and for other key issues like Taiwan. Journal: Global Economic Review Pages: 121-148 Issue: 4 Volume: 32 Year: 2003 Keywords: China, internal security, defense, foreign policy, Central Asia, Xinjiang, X-DOI: 10.1080/12265080308422933 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080308422933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:32:y:2003:i:4:p:121-148 Template-Type: ReDIF-Article 1.0 Author-Name: Shaomin Li Author-X-Name-First: Shaomin Author-X-Name-Last: Li Title: Can China learn from Hong Kong's experience in fighting corruption? Abstract: Widespread corruption in mainland China adversely affects the overall economy in general and international business in particular. Prior to the establishment of the Independent Commission against Corruption (ICAC) in 1974, corruption was also rampant in Hong Kong. The ICAC effectively cleaned corruption in Hong Kong within a short period of time. Hong Kong's success in this area has prompted the Chinese government to learn from Hong Kong's experience. This article reviews the factors that contributed to Hong Kong's success in fighting corruption and discusses whether China can learn from the Hong Kong experience. From this, we can conclude that, first, Hong Kong's experience demonstrates that a corruption-prone culture can be changed in a relatively short period of time; second, in order for China to learn from Hong Kong's experience, there must be substantial changes in China's political and economic institutions. Journal: Global Economic Review Pages: 1-9 Issue: 1 Volume: 33 Year: 2004 Keywords: Corruption, Constitutional reform, Hong Kong, China, Independent Commission against Corruption (ICAC), X-DOI: 10.1080/12265080408449838 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:1:p:1-9 Template-Type: ReDIF-Article 1.0 Author-Name: Chanil Park Author-X-Name-First: Chanil Author-X-Name-Last: Park Title: The process of financial reforms in China Abstract: This study aims to show that financial reforms in China can be viewed as an endogenous adjustment process responding primarily to economic growth and changes in political constraints. The author's argument is thus against the mainstream view in which financial reforms are regarded as primary policy tools for the promotion of economic growth. Three factors are carefully examined for the explanation of the endogenous characteristics of financial reforms. First, this paper takes a close look at endogenous aspects of Chinese financial repression. The endogenous characters of financial repression explain why financial reforms in China follow an endogenous path. Second, recent developments of legal frameworks are found to have been institutional responses to macroeconomic imbalances, financial disorders, and increased demands for property right protection. Finally, this paper shows that the lack of market infrastructure and various political constraints have been major obstacles for China's capital market development. Journal: Global Economic Review Pages: 11-31 Issue: 1 Volume: 33 Year: 2004 Keywords: endogenous financial repression, adaptive legal development, fixed costs, development strategy, political constraints, X-DOI: 10.1080/12265080408449839 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449839 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:1:p:11-31 Template-Type: ReDIF-Article 1.0 Author-Name: Miron Mushkat Author-X-Name-First: Miron Author-X-Name-Last: Mushkat Title: Alternative futures and foreign direct investment in China Abstract: Chinese history is littered with sharp policy swings, and the communist era, which has not yet fully drawn to a close, has witnessed a veritable embarrassment of riches. This has provided a fertile ground for researchers engaged in crystal ball gazing. Recently, momentum has accelerated on that front, a development apparently reflecting the increasingly fluid political-economic conditions in the country. The scenarios generated can serve as an effective reference point in planning exercises, but there is scope for solidifying the conceptual architecture. The issue of rendering them highly relevant to foreign investors, presumably very important potential consumers of the product, should also be addressed. Journal: Global Economic Review Pages: 33-50 Issue: 1 Volume: 33 Year: 2004 Keywords: scenario, beginning state, end state, process, critical uncertainties, driving forces, X-DOI: 10.1080/12265080408449840 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449840 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:1:p:33-50 Template-Type: ReDIF-Article 1.0 Author-Name: Woondo Choi Author-X-Name-First: Woondo Author-X-Name-Last: Choi Title: RMA and Strategic intelligence: The case of China and Japan Abstract: Two cases of China and Japan are compared in the two dimensions of strategic doctrine and the RMA program. China is disadvantaged in its general military capability; it cannot help but gain the initiative by striking first and doing the operation under a high degree of secrecy, mobility, accuracy in its concentration of firepower, and surprise. This is called the doctrine of “strategic attack” and the Chinese defense planning is called “strategic modernization.” On the other hand, the Japanese approach to RMA is called “Info-RMA”. The Japanese basic defense strategy is a passive one and it is critical to protect the information infrastructure as Japanese territories might turn out to be the battlefield. Japan should be ready for the possibility that some pre-RMA forces would employ asymmetrical means such as weapons of mass destruction (WMD), terrorism, or guerilla warfare. Self-Defense Forces (SDF) also should be ready to accomplish diverse missions, such as rear-area support for U.S. troops, as well as peacekeeping operations and disaster relief. It is ironic that the Chinese doctrine could not help but be aggressive to compensate for the weakness of strategic intelligence capability in comparison to the U.S. On the other hand, Japan could develop power-projection capability under the name of strategic intelligence as a part of the Exclusively Defense-Oriented Policy. Journal: Global Economic Review Pages: 51-67 Issue: 1 Volume: 33 Year: 2004 Keywords: strategic attack, info-RMA, asymmetric war, power-projection capability, RMA, X-DOI: 10.1080/12265080408449841 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449841 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:1:p:51-67 Template-Type: ReDIF-Article 1.0 Author-Name: Gab-Je Jo Author-X-Name-First: Gab-Je Author-X-Name-Last: Jo Title: Changes in misalignment of the Korean won: Towards a flexible exchange rate regime Abstract: This paper investigates whether the adoption of a more floating exchange rate regime with inflation targeting has improved the vulnerability of the exchange rate, by looking at the Korean case. Using the NATREX model, I estimate the equilibrium real exchange rate of the Won and its misalignment. The unit-root test for misalignment and the unrestrictive vector autoregressive (VAR) impulse response function test show that under a more flexible exchange rate regime, the vulnerability of the exchange rate regime to external shocks has declined. Journal: Global Economic Review Pages: 69-83 Issue: 1 Volume: 33 Year: 2004 Keywords: exchange rate system, equilibrium real exchange rate, inflation targeting, exchange rate vulnerability, external shocks, X-DOI: 10.1080/12265080408449842 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449842 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:1:p:69-83 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-X-Name-First: Yu Author-X-Name-Last: Hsing Title: Impacts of macroeconomic policies on the Mexican output Abstract: This paper examines the potential effects of macroeconomic policies, stock market performance, exchange rate fluctuations, and other related variables on real GDP in Mexico. Extending the works by Arango and Nadiri (1981) and Bahmani-Oskooee and Ng (2002), and applying comparative-static analysis, possible effects of a change in the exchange rate or government debt on the equilibrium output are examined. All the variables have unit roots and are stationary in first difference. There is a long-run stable relationship between real GDP and the right-hand-side variables. The GARCH(p,q) (Engle 2001) model is applied to estimate regression parameters. Real GDP is positively associated with real M2, government deficit spending, stock prices, U.S. output, and world oil prices, and negatively affected by the government debt ratio, peso depreciation, and the expected inflation rate. Therefore, fiscal policy to incur more debt needs to be pursued with caution, and both net exports and money demand need to be considered in studying the impact of exchange rate fluctuations on output. Journal: Global Economic Review Pages: 85-94 Issue: 1 Volume: 33 Year: 2004 Keywords: wealth effect, credit channels, currency substitution, peso depreciation, GARCH model, X-DOI: 10.1080/12265080408449843 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449843 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:1:p:85-94 Template-Type: ReDIF-Article 1.0 Author-Name: Jim Rolfe Author-X-Name-First: Jim Author-X-Name-Last: Rolfe Title: The Asia-Pacific's economic processes: Beyond cooperative networks Abstract: The research of which this paper is a component focuses on the development of multilateral cooperation through institutions, process and systems in the Asia-Pacific region. Economic networks are probably the most developed of the cooperative processes in the region. The language used in their establishment and the functions undertaken by them indicates that it is becoming possible to consider the economic networks as precursors to deeper forms of regional community; forms that could supersede the state as the focus for loyalty and identity. That is not a necessary outcome and it is not likely in the short term, but it is possible. Journal: Global Economic Review Pages: 1-16 Issue: 2 Volume: 33 Year: 2004 Keywords: Asia-Pacific, economic networks, regionalism, regional cooperation, economic networking, economic cooperation, X-DOI: 10.1080/12265080408449845 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:2:p:1-16 Template-Type: ReDIF-Article 1.0 Author-Name: Shalendra Sharma Author-X-Name-First: Shalendra Author-X-Name-Last: Sharma Title: Going beyond Cancun: Realizing the development promise of the Doha agenda Abstract: The launch of a new trade round in Doha in November 2001 was a major breakthrough following the discord in Seattle in 1999. The Doha Round is the first set of multilateral trade negotiations in which the needs and interests of developing countries have been officially declared a priority and whose conclusion deemed essential. However, the failure of the Doha negotiations in Cancun in September 2003 was a major setback. The trade talks are now stalled in several policy domains vital to developing countries such as agriculture, non-farm trade, access to patented drugs, special and differential treatment and dispute settlement, and in areas of interest to the developed countries such as the “Singapore issues” dealing with investment, competition, trade facilitation and government procurement This paper discusses the reasons behind the failure, its wider implications as well as the policies that member governments of the World Trade Organization (WTO) will need to make to move beyond Cancun. Journal: Global Economic Review Pages: 17-38 Issue: 2 Volume: 33 Year: 2004 Keywords: WTO, trade, Doha Round, developing countries, X-DOI: 10.1080/12265080408449846 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:2:p:17-38 Template-Type: ReDIF-Article 1.0 Author-Name: Jae-Seung Lee Author-X-Name-First: Jae-Seung Author-X-Name-Last: Lee Title: The French commitment to European monetary integration: A review of the two EMS crises (1981-83, 1992-93) Abstract: This paper focuses on the process of exchange rate management during the two European Monetary System(EMS) crises, in 1981-83 and 1992-93, and examines the factors which led the French governments to adhere to the EMS. France's strong franc (franc fort) policy is a useful test case for maintaining national commitment to European monetary integration. The origin of the franc fort policy can be traced back to the exchange rate crisis of 1981-83. By actively supporting European institutions and emphasizing the emergence of a strong and united European common currency, France discovered the way to bolster confidence in her economic policy. Beyond this focal point, political justification and economic rationality became mutually reinforcing, configuring French national preference in European monetary integration. The response of the French government to the EMS crisis of 1992-93 was more consistent compared to the response to the 1981-83 crisis, and reflected the accumulation of loyalty to European monetary integration. This loyalty, however, was made neither from purely economic calculation nor out of normative commitment French European monetary policy reflected the interaction between domestic politics and European monetary integration. The French commitment to the franc fort also was based on domestic political bases such as the existence of a core policy group, a centralized policy-making structure, and an issue linkage between the franc fort and European integration. Journal: Global Economic Review Pages: 39-56 Issue: 2 Volume: 33 Year: 2004 Keywords: France, EMS, exchange rate, franc, Mitterrand, Europe, X-DOI: 10.1080/12265080408449847 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:2:p:39-56 Template-Type: ReDIF-Article 1.0 Author-Name: Philippe De Lombaerde Author-X-Name-First: Philippe Author-X-Name-Last: De Lombaerde Title: Optimal currency area theory and monetary integration in the Andean and Caribbean regions Abstract: In this article, the author analyses the prospects for monetary integration in the Andean and Caribbean regions and stresses the regional specificities that should be taken into account. He points to the necessity to combine economic, political economy and institutional approaches to assess scenarios for monetary integration. The author also argues that the application of optimum currency area theory to regions with specific characteristics (in many respects different from the EU) might produce positive feed-back effects for the development of OCA theory itself, highlighting specific aspects and implications of the same theory and stimulating theoretical research. Journal: Global Economic Review Pages: 57-78 Issue: 2 Volume: 33 Year: 2004 Keywords: optimum currency areas, monetary integration, Andean region, Caribbean, X-DOI: 10.1080/12265080408449848 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:2:p:57-78 Template-Type: ReDIF-Article 1.0 Author-Name: Hwy-Chang Moon Author-X-Name-First: Hwy-Chang Author-X-Name-Last: Moon Author-Name: Yan-Ling Yu Author-X-Name-First: Yan-Ling Author-X-Name-Last: Yu Title: The competitiveness of China's telecommunications industry before and after China's accession to the WTO Abstract: According to China's World Trade Organization (WTO) commitment, its entire domestic market will be more open to the world. China's telecommunications industry is worth special attention because it plays a critical role in enhancing China's overall competitiveness. This study critically reviews and corrects the problems of existing studies on the telecommunications industry, and explains the nature of changes in the competitiveness of China's telecommunications industry before and after China's accession to the WTO by using the diamond model. Based on this analysis, strategic suggestions are provided for both the Chinese government and firms to enhance their competitiveness in the global economy. Journal: Global Economic Review Pages: 79-98 Issue: 2 Volume: 33 Year: 2004 Keywords: China's WTO commitment, competitiveness, diamond model, generalized double diamond model, Chinese telecom reform, X-DOI: 10.1080/12265080408449849 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449849 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:2:p:79-98 Template-Type: ReDIF-Article 1.0 Author-Name: K. C. Fung Author-X-Name-First: K. C. Author-X-Name-Last: Fung Author-Name: Hitomi Iizaka Author-X-Name-First: Hitomi Author-X-Name-Last: Iizaka Author-Name: Sarah Tong Author-X-Name-First: Sarah Author-X-Name-Last: Tong Title: Foreign direct investment in China: Policy, recent trend and impact Abstract: One of the most important elements of China's economic reform has been the promotion of foreign direct investment (FDI) inflow. Government polices on FDI have gone through different stages in their main objectives since the late-1970s, from gradually opening to foreign investors, to actively encouraging inward investment, directing FDI in accordance with domestic industrial restructuring, and complying with China's World Trade Organization (WTO) obligations. FDI in China has experienced rapid growth especially since the mid-1990s, as well as structural change. Most of the earlier investments were small scale, labor-intensive and export-oriented. In recent years, more investment has been large scale and more capital and technology intensive, aiming at both domestic and export markets. Moreover, increasingly more investment has come from the industrial world, and has located along the eastern coastal regions, in additional to the two southeastern provinces. FDI has played a crucial role in China's rapid growth, economic transition, and, mostly importantly, integration with the world. China's recent accession to the WTO provides more incentives to foreign investors. At the same time, it will also result in more intense competition for domestic firms. Journal: Global Economic Review Pages: 99-130 Issue: 2 Volume: 33 Year: 2004 Keywords: foreign investment policy, economic reforms, WTO, industrial restructuring, China, X-DOI: 10.1080/12265080408449850 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449850 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:2:p:99-130 Template-Type: ReDIF-Article 1.0 Author-Name: Hans Stockton Author-X-Name-First: Hans Author-X-Name-Last: Stockton Author-Name: Uk Heo Author-X-Name-First: Uk Author-X-Name-Last: Heo Title: The changing dynamics of regionalism in South Korea's elections Abstract: One of the most persistent areas of discussion regarding South Korea's party and election systems is the continued elevation of regional personalities over political institutions. We seek to pour new wine into old bottles, however, by challenging a seldom-considered assumption in Korean studies; that regionalism has exerted constant pressures across regime, province, and personality. There is a void in studying how transition to democracy has affected the dominance of personality-based regionalism in Korean politics. We investigate democratization's impact on this phenomenon by examining the provincial distribution of legislative and presidential voting from 1971-2002. We employ a new indicator for personality-based disproportionality, apply it to election outcomes at the provincial level, and find that the electoral impact of regionalism has changed over time across regimes, provinces, and political personalities. We find that regional voting disproportionality 1) increased immediately after transition; 2) has varied depending on personality and type of election; 3) is indeed low in provinces traditionally labeled as neutral; and 4) increased in the 2000 legislative election while declining in the 2002 presidential election. Journal: Global Economic Review Pages: 1-22 Issue: 3 Volume: 33 Year: 2004 Keywords: regionalism, personalism, democratization, election, party system, X-DOI: 10.1080/12265080408449852 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449852 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:3:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Sangjoon Jun Author-X-Name-First: Sangjoon Author-X-Name-Last: Jun Title: Dynamic panel cointegration approaches to the estimation of money demand functions Abstract: This paper investigates properties of the money demand functions of Group of Six (G6) member countries (Canada, France, Italy, Japan, U.K., and U.S.) using the estimation and inference techniques of panel cointegration. Empirical analyses are conducted by estimating money demand equations of G6 countries individually and as a whole, allowing heterogeneity in individual specific fixed effects across countries through dynamic, nonstationary panel estimation techniques. By using recently developed panel cointegration techniques, the paper contributes to the literature of money demand studies by improving the power performance of the relevant estimation and inference procedures. It reports fully modified OLS (FMOLS) estimation results of the money demand model for different data frequencies, to find varying signs and magnitudes of real income, interest rates and inflation elasticities of money demand for G6 nations. Journal: Global Economic Review Pages: 23-42 Issue: 3 Volume: 33 Year: 2004 Keywords: money demand function, panel unit root and cointegration tests, fully modified OLS (FMOLS) estimation, X-DOI: 10.1080/12265080408449853 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449853 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:3:p:23-42 Template-Type: ReDIF-Article 1.0 Author-Name: Seungwook Bahng Author-X-Name-First: Seungwook Author-X-Name-Last: Bahng Author-Name: Seung-Myo Shin Author-X-Name-First: Seung-Myo Author-X-Name-Last: Shin Title: Interactions of stock markets within the greater China economic bloc Abstract: This paper investigates what types of mutual relationships exist among the stock markets of the Greater China economic bloc, which include stock markets in Hong Kong and Taiwan, as well as stock markets in Shanghai and Shenzhen. Using the unit root test, co-integration analysis, and vector error correction model (VECM), this paper analyzes interrelationships among daily stock indices for the period from the beginning of 1992 to the end of 2001. Test results indicate the existence of one co-integrating vector, implying that a long-run equilibrium relationship holds among the four stock indices. Variance decomposition of forecast errors provides evidence that the Shenzhen stock market is the market most heavily influenced by the unexpected variations of other markets in the Greater China economic bloc. Journal: Global Economic Review Pages: 43-60 Issue: 3 Volume: 33 Year: 2004 Keywords: vector error correction model (VECM), the Greater China economic bloc, stock market inter-dependence, variance decomposition of forecast errors, impulse response function, X-DOI: 10.1080/12265080408449854 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:3:p:43-60 Template-Type: ReDIF-Article 1.0 Author-Name: Mihnsoo Kim Author-X-Name-First: Mihnsoo Author-X-Name-Last: Kim Title: Strategies of Korean firms in china's high-tech market: Striving for a new and sustainable business model Abstract: China has become a strategically important market for Korean companies. While cooperating with China is obviously important for their success and survival, a more difficult question lies in finding a new and sustainable business model applicable to China. This paper studies the current challenges and strategies of Korean Small and Medium-sized Enterprises (SMEs) in the high-tech market such as the mobile handset and online game industries that are trying to extend their business to China. It focuses on the issue that Korean firms face in order to find a way to survive and integrate with a rising China. By conducting an in-depth firm level analysis, it examines their successes and failures in terms of what parts of the value chain they specialize in and how they establish a division of labor with China. Journal: Global Economic Review Pages: 61-75 Issue: 3 Volume: 33 Year: 2004 Keywords: Korean SMEs, China's mobile handset and online game market, strategy, business model, division of labor, value chain, X-DOI: 10.1080/12265080408449855 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449855 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:3:p:61-75 Template-Type: ReDIF-Article 1.0 Author-Name: Dong-Ik Choi Author-X-Name-First: Dong-Ik Author-X-Name-Last: Choi Title: Localization of foreign multinational companies in Korea Abstract: In response to the 1997 Asian financial crisis that devastated the Korean economy, the government performed promotional efforts, comprehensive structural reform, and implemented policies to create a favorable environment for foreign direct investment (FDI). While the Korean government announced deregulation plans to support foreign companies, the public also became more aware of the need for foreign capital to overcome the crisis and revive the economy. The change of atmosphere and the perception on the need to induce the inflow of foreign capital provided the basis for this study. In addition, the crucial role of foreign multinational companies and their efforts to achieve market recognition in a more comprehensive way have provoked this study on the localization of foreign multinational companies in Korea. Investment purposes, entry methods, and the degree of competition by multinational companies in Korea were the variables that lead these companies to respond to localization. Journal: Global Economic Review Pages: 77-96 Issue: 3 Volume: 33 Year: 2004 Keywords: foreign direct investment, localization, integration, responsiveness, multinational corporations, X-DOI: 10.1080/12265080408449856 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449856 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:3:p:77-96 Template-Type: ReDIF-Article 1.0 Author-Name: Yusin Lee Author-X-Name-First: Yusin Author-X-Name-Last: Lee Title: Policies of five Caspian coastal states: Do concerns about relative gains play any role? Abstract: This study examines the approach of five Caspian coastal states - Russia, Iran, Azerbaijan, Kazakhstan, and Turkmenistan-toward the legal regime regarding the Caspian Sea in the 1990s. In particular, it tests the neorealist hypothesis regarding relative gains in explaining the approach of those five Caspian coastal states. This study demonstrates that concerns about relative gains matter, but not universally. Azerbaijan and Kazakhstan consistently pursued relative gains strategy. Yet, in the cases of three other Caspian states, Russia, Iran, and Turkmenistan, concerns about relative gains were not critical in determining the policy direction of these states. Journal: Global Economic Review Pages: 97-111 Issue: 3 Volume: 33 Year: 2004 Keywords: Caspian Sea, legal regime, neorealism, relative gains, oil, X-DOI: 10.1080/12265080408449857 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:3:p:97-111 Template-Type: ReDIF-Article 1.0 Author-Name: Rajen Mookerjee Author-X-Name-First: Rajen Author-X-Name-Last: Mookerjee Author-Name: Annalisa Orlandi Author-X-Name-First: Annalisa Author-X-Name-Last: Orlandi Title: Multinational Corporations and Child Labor Abstract: Using a sample of forty countries that exhibit a high incidence of child labor, this paper assesses the impact that Multinational Corporations (MNCs) have on the incidence of child labor. Our results show that higher levels of Foreign Direct Investment-our proxy for the presence of MNCs-have a beneficial impact on child labor rates, after controlling for other factors. This we hypothesize is achieved through a direct and an indirect channel. Using these channels MNCs pressure host country-based subcontractors, governments, and labor markets in general. This in turn reduces the incidence of child labor. Journal: Global Economic Review Pages: 1-13 Issue: 4 Volume: 33 Year: 2004 Keywords: multinational corporations, foreign direct investment, child labor, economic development, globalization, X-DOI: 10.1080/12265080408449859 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449859 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:4:p:1-13 Template-Type: ReDIF-Article 1.0 Author-Name: Gi-Eun Chung Author-X-Name-First: Gi-Eun Author-X-Name-Last: Chung Title: The development strategy for china's travel service industry after china's WTO entry: Present status and future prospects Abstract: China's tourism market is growing in importance since China's accession to the World Trade Organization (WTO). It is likely that China's opening to the world market will lead to the further development of its travel service industry. Even though China will be confronted by some difficulties, its WTO commitment may have positive impacts on the travel service industry such as the development of technologies, introduction of advanced management strategies, improved industrial structure, and increased competition in the sector. This paper aims to explain the WTO-related factors in China's travel service industry, analyzing and evaluating the sector's development strategy. Journal: Global Economic Review Pages: 15-34 Issue: 4 Volume: 33 Year: 2004 Keywords: China's WTO commitment, tourism market, China's travel service industry, Chinese tourism policy, China's development strategy, X-DOI: 10.1080/12265080408449860 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:4:p:15-34 Template-Type: ReDIF-Article 1.0 Author-Name: Dilip Das Author-X-Name-First: Dilip Author-X-Name-Last: Das Title: Globalization and the anti-globalization lobby: A deficit of thoughtfulness and clairvoyance Abstract: As the current wave of globalization strengthened, so did the fury of the anti-globalization lobby against it. The author believes that the members of this lobby failed to take a thoughtful and balanced perspective of the on-going integration of the global economy. Indubitably, globalization has its winners and losers. The author establishes that if the members of this group take a good look at the two sides of the coin in an objective and unprejudiced manner, they are sure to see the folly of their ways. Evidence is available to show that on balance, globalization has had enormous beneficial effect and has improved the plight of the poor in the global economy. Journal: Global Economic Review Pages: 35-50 Issue: 4 Volume: 33 Year: 2004 Keywords: globalization, poverty alleviation, multifaceted impact, boon and bane, trade liberalization, X-DOI: 10.1080/12265080408449861 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449861 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:4:p:35-50 Template-Type: ReDIF-Article 1.0 Author-Name: Dong-Yoon Lee Author-X-Name-First: Dong-Yoon Author-X-Name-Last: Lee Author-Name: Sang Hwa Chung Author-X-Name-First: Sang Hwa Author-X-Name-Last: Chung Title: Democratic consolidation and electoral reform in Southeast Asia: Philippines, Thailand, and Indonesia Abstract: The purpose of this study is to review the relationship of electoral system and democracy in the Philippines, Thailand and Indonesia. The study looks at the transformation process of the electoral system in each country, and performs a comparative study on post-democratization electoral reforms using the concepts of competitiveness and fairness. It is found that electoral systems displayed low levels of competitiveness and fairness before democratization, but that their reforms have led to an increase in competitiveness and an improvement in fairness in all three countries. Also, while the post-democratization electoral reforms have facilitated the above-mentioned democratic virtues, there have been significant country differences in the details of their progress. The Philippines promoted the competitiveness of the electoral system by adopting a party list system and guest candidate system. Although Thailand and Indonesia showed competitiveness in their electoral systems, they prohibited the participation of non-partisan candidates in elections for the sake of stability of party politics. The differences are reflections of their particular political histories and contexts. Journal: Global Economic Review Pages: 51-73 Issue: 4 Volume: 33 Year: 2004 Keywords: electoral system reform, democratization, Philippines, Thailand, Indonesia, X-DOI: 10.1080/12265080408449862 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449862 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:4:p:51-73 Template-Type: ReDIF-Article 1.0 Author-Name: Inchoon Kim Author-X-Name-First: Inchoon Author-X-Name-Last: Kim Title: Voluntary associations, social capital, and civil society in comparative perspective: South Korea and Sweden Abstract: People organize and participate in voluntary associations since voluntary associations provide social capital, such as norms of reciprocity, citizenship, social trust, and networks of social relations. Comparative analysis of voluntary associations in South Korea and Sweden reveals, first, that voluntary associations have played an important role in providing services, enhancing expressive functions, and in bringing a new sense of participatory democracy in Korea as well as in Sweden. Second, the civil society sector has been a major actor in governance in Korea and Sweden. The growth of voluntary associations in Korea reflects their increasing role and capacity, as has been in Sweden. Third, however, the character and strength of civil society are different in Korea and Sweden, because the ways in which voluntary associations are structured are different and the interests they provide vary across societies. Most striking difference is that Swedish civil society has been mainly constituted by formal primary economic associations, while Korean civil society has been constituted by informal affective linkage groups. Fourth, the organizing capacity of the voluntary sector can differentiate Korean civil society from the Nordic civil society more clearly. Finally, the Korean civil society need more active participation of citizens as members or volunteers in order to become an entity of organized civil society to create and enhance social capital. Journal: Global Economic Review Pages: 75-96 Issue: 4 Volume: 33 Year: 2004 Keywords: voluntary association, social capital, civil society, Sweden, South Korea, participation, X-DOI: 10.1080/12265080408449863 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449863 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:4:p:75-96 Template-Type: ReDIF-Article 1.0 Author-Name: You-liang Deng Author-X-Name-First: You-liang Author-X-Name-Last: Deng Title: Schumpeter and arrow: Who wins in Korea and Taiwan? A case method analysis of cross country industrial structure Abstract: A case study approach is applied to a cross-country comparison of Korea and Taiwan to model their developmental patterns and to examine the implications of their approach to industrialization, with specific regard to the theories of vertical integration by Schumpeter and Arrow and the theories of asset specificity by Williamson. The implications of inflation risks, external debt financing, innovation incentives, and restructuring problems from the aftermath of the 1997 Asian financial crisis will also be examined. The methodology used is a case study of two industries: bicycles and semiconductors. The results of this study are being used to create two dynamic models of industrial development for the two countries and to provide reasons for the differences in development paths and the implications associated with the undertaking of two drastically different models of industrialization. Journal: Global Economic Review Pages: 97-122 Issue: 4 Volume: 33 Year: 2004 Keywords: vertical integration, industrial structure, Schumpeter, Arrow, Korea, Taiwan, X-DOI: 10.1080/12265080408449864 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080408449864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:33:y:2004:i:4:p:97-122 Template-Type: ReDIF-Article 1.0 Author-Name: Valerie Engammare Author-X-Name-First: Valerie Author-X-Name-Last: Engammare Author-Name: Jean-Pierre Lehmann Author-X-Name-First: Jean-Pierre Author-X-Name-Last: Lehmann Title: A Eurasian Economic Vision for the Twenty-first Century Abstract: Whereas East Asia stands out as the most dynamic and competitive region, both at present times and according to projections for the coming decades. Europe's repeated attempts to develop a strong Eurasian partnership have not proved successful. On the basis of a historical approach looking at the developments of the relations between Europe and East Asia since the 1950s, this article highlights the major reasons why opportunities to strengthen inter-regional links have been missed. Finally, concentrating on what Europe's strategy should be in the future, recommendations are formulated on economic, institutional and policy issues. Journal: Global Economic Review Pages: 1-19 Issue: 1 Volume: 34 Year: 2005 Keywords: European Union, East Asia, regionalism, integration, multilateral trading system, X-DOI: 10.1080/1226508042000329015 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000329015 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Masahiro Kawai Author-X-Name-First: Masahiro Author-X-Name-Last: Kawai Author-Name: Shinji Takagi Author-X-Name-First: Shinji Author-X-Name-Last: Takagi Title: Strategy for a Regional Exchange Rate Arrangement in East Asia: Analysis, Review and Proposal Abstract: This paper discusses major conceptual and empirical issues relevant to the exchange rate policies of East Asian economies. Given the high degree of economic integration, intra-regional exchange rate stability remains an important objective in East Asia. But the current uncoordinated practice of each economy managing exchange rates or maintaining a de facto dollar peg is not optimal for this purpose. The paper suggests that the region's governments take a coordinated action to shift the policy of nominal exchange rate policy from the US dollar alone to a common basket of the US dollar, the Japanese yen, and the Euro, which would be more reflective of the average structure of foreign trade and direct investment. At least initially, each economy is free to choose its own formal exchange rate arrangement, be it a fixed exchange rate regime, a crawling peg or a managed float with wide margins, as long as it chooses the common basket as the reference. Such an arrangement is a pragmatic policy option for East Asia until greater political and institutional developments create an environment conducive to a more robust framework of monetary and exchange rate policy coordination. Journal: Global Economic Review Pages: 21-64 Issue: 1 Volume: 34 Year: 2005 Keywords: Exchange rate arrangement, East Asian crisis, economic integration, intra-regional exchange rate, stability, X-DOI: 10.1080/1226508042000328962 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000328962 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:21-64 Template-Type: ReDIF-Article 1.0 Author-Name: Jongryn Mo Author-X-Name-First: Jongryn Author-X-Name-Last: Mo Title: The Microfoundations of the Developmental State and the Asian Economic Crisis Abstract: Contrary to the dominant view that the developmental state evolved to reduce transaction costs (such as moral hazard), it is argued that it represented, first and foremost, a policy compromise between business and government over redistribution and market competitiveness. This compromise was possible because of favorable political conditions: a long shadow of the future, a favorable payoff structure, and an unequal distribution of power (in favor of the government). The long shadow of the future, in particular, was decisive in allowing the government and business to commit to and enforce their agreement. In some East Asian countries, however, political changes shortened the time horizon of state and business elites, weakening their policy cooperation and increasing the vulnerability of the economy to a crisis. This theory is tested against the cases of nine East Asian countries, using the stability of the party system as a proxy for the length of the time horizon and thus, the ability of actors to make a credible commitment. Consistent with theory, it is found that the more fragmented or divided a country's party system (i.e. the shorter the time horizon) had become before the outbreak of the crisis, the more severe and costly the economic crisis has been in that country. Journal: Global Economic Review Pages: 65-82 Issue: 1 Volume: 34 Year: 2005 Keywords: Microfoundations, developmental state, Asian economic crisis, principal-agent view, cooperation/bargaining view, X-DOI: 10.1080/1226508042000329024 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000329024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:65-82 Template-Type: ReDIF-Article 1.0 Author-Name: John McKay Author-X-Name-First: John Author-X-Name-Last: McKay Title: How Significant and Effective are North Korea's "Market Reforms"? Abstract: Speculation continues as to the real significance and effectiveness of the “market reforms” introduced by the government of North Korea in July 2002. Some commentators regard these as rather minor, while others suggest that they represent the first stage of a significant move towards a much more open and decentralized system. In this paper, the details of the reforms are discussed, and it is argued that their significance can only be judged in terms of the underlying dynamics of the North Korean regime. Using constructs from regime theory and regime dynamics, the current system is defined, and the stability of its elements is evaluated. It is concluded that the reforms are necessary for regime stability, but do not constitute a fundamental challenge to the existing system. Journal: Global Economic Review Pages: 83-97 Issue: 1 Volume: 34 Year: 2005 Keywords: North Korean economy, regime dynamics, socialist transformation, North Korean political system, nuclear proliferation, X-DOI: 10.1080/1226508042000328999 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000328999 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:83-97 Template-Type: ReDIF-Article 1.0 Author-Name: Jang-Sup Shin Author-X-Name-First: Jang-Sup Author-X-Name-Last: Shin Title: Substituting and Complementing Models of Economic Development in East Asia Abstract: This paper assesses the relative merits and demerits of different East Asian models by placing them in a historical perspective. It re-interprets Gerschenkron's model of late industrialization, and extends it to compare East Asian economies in view of substituting and complementing models. It then explains divergent performances among East Asian economies from the late 1990s by examining the different challenges they faced as their economies became mature and more fully open to forces of globalization. In conclusion, the paper discusses the applicability of the East Asian models for today's developing countries. Journal: Global Economic Review Pages: 99-118 Issue: 1 Volume: 34 Year: 2005 Keywords: East Asia, Korea, Taiwan, Singapore, globalization, institutional transition, catching-up strategy, X-DOI: 10.1080/1226508042000329006 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000329006 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:99-118 Template-Type: ReDIF-Article 1.0 Author-Name: Sang Lee Author-X-Name-First: Sang Author-X-Name-Last: Lee Author-Name: Shakil Quayes Author-X-Name-First: Shakil Author-X-Name-Last: Quayes Title: When is privatization better facilitated? Global evidence from the telecom sector Abstract: This paper attempts to identify the telecom-sector performance indicators, relevant economic variables, and institutional characteristics of a country that affect the process of privatization of state-owned telecom enterprises. Using standard duration analysis of a panel data, it is demonstrated that the privatization incentives are not only shaped by a country's fiscal conditions but are also influenced by the degree of competitiveness of private sector participation in policy-making process. The empirical results also reveal the significant impact of efficiency in telecom service provision on its course to privatization. Journal: Global Economic Review Pages: 119-127 Issue: 1 Volume: 34 Year: 2005 Keywords: Privatization, telecom sector, performance indicators, economic variables, state-owned, X-DOI: 10.1080/1226508042000328971 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000328971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:119-127 Template-Type: ReDIF-Article 1.0 Author-Name: Alexius Pereira Author-X-Name-First: Alexius Author-X-Name-Last: Pereira Author-Name: Chee Kiong Tong Author-X-Name-First: Chee Kiong Author-X-Name-Last: Tong Title: Power and developmental regimes in Singapore, China and Malaysia Abstract: This paper examines three developmental regimes in Singapore, China and Malaysia. In these three cases, heavy state intervention was necessary because their economies required significant economic restructuring. For Singapore, state intervention was necessary for the process of industrial transformation. For Malaysia, state intervention was necessary because the government wanted to reallocate economic resources as a means to deal with ethnic conflict. For China, state intervention was necessary in order to gradually “marketize” the socialist economy. The paper also briefly discusses the impact of the Asian Financial Crisis (1997-1999) on these developmental regimes. It finds that for all three cases, economic restructuring was successful because of long-term and heavy state intervention. It explains that, unlike the other developmental states of Asia, these developmental regimes were able to undertake such significant restructuring because of the state's power base, which even managed to survive the Asian Financial Crisis. It concludes with some comments about the future of state intervention in a rapidly globalizing world. Journal: Global Economic Review Pages: 129-144 Issue: 1 Volume: 34 Year: 2005 Keywords: Singapore, Malaysia, China, developmental regimes, interventionist states, X-DOI: 10.1080/1226508042000328980 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000328980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:129-144 Template-Type: ReDIF-Article 1.0 Author-Name: Yongil Jeon Author-X-Name-First: Yongil Author-X-Name-Last: Jeon Author-Name: Stephen Miller Author-X-Name-First: Stephen Author-X-Name-Last: Miller Title: Performance of Domestic and Foreign Banks: The Case of Korea and the Asian Financial Crisis Abstract: This paper examines the performance of banks, domestic and foreign, in Korea before and after the Asian financial crisis, examining how the profitability of those banks differed and identifying factors that explain why those differences existed. The performance of Korean banks deteriorated dramatically in 1998 with most banks recovering somewhat in 1999. Foreign banks did not experience the same negative effect on their performance as a rule. Overall, the domestic Korean banks suffered more severely from the Asian financial crisis than foreign banks. Several possible explanations exist. First, foreign banks, unlike domestic Korean banks, were not subject to credit allocation directives from the Korean government to selected, favoured industries. Second, foreign banks, since they relied for governance on the mother bank in the home country, achieved higher efficiency and better asset and liability management. Finally, foreign banks rely more heavily on fee-for-service income rather than loan revenue. Journal: Global Economic Review Pages: 145-165 Issue: 2 Volume: 34 Year: 2005 Keywords: Asian financial crisis, Korean commercial banks, profitability, X-DOI: 10.1080/12265080500117491 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500117491 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:2:p:145-165 Template-Type: ReDIF-Article 1.0 Author-Name: Kang-Shik Choi Author-X-Name-First: Kang-Shik Author-X-Name-Last: Choi Author-Name: Jin-Ho Jeong Author-X-Name-First: Jin-Ho Author-X-Name-Last: Jeong Author-Name: Jin Hwa Jung Author-X-Name-First: Jin Hwa Author-X-Name-Last: Jung Title: The Rising Supply of College Graduates and Declining Returns for Young Cohort: The Case of Korea Abstract: This study analysed the effect of an increase in the supply of youth college graduates, in terms of the return on education. The rate of return on education in Korea substantially dropped from 1983 to 1994. Since then, however, the declining trend of the rate of return on education stopped and turned upward. The rate of return has declined especially for college graduates, and such a decline has been most prominent for young cohorts, among college graduates, since 1987. The observed trend of the rate of return appears to be related to the sharp increase of labour supply of college graduates since the mid 1980s. The elasticity of substitution between education levels and age groups was estimated in this study, using a generalized demand-supply model. The effects of relative supply of college graduates (as a whole and by age) on the relative wages of college graduates by age were analysed under the assumption of constant skill-biased technological change. As it turned out, the relative college graduates' labour supply of each age group had large bearings upon relative wages of each corresponding group, while the relative labour supply of all college graduates did not. It implies that labour is an imperfect substitute, not only between education levels but also between age groups. Thus, as youth college graduates' supply increases, there needs to be a corresponding demand increase for them, to avoid the drop in the wage or employment level for them. Therefore, to tackle with the issues of youth labour market, such as youth unemployment, separate policies targeting the youth group are called for. Journal: Global Economic Review Pages: 167-180 Issue: 2 Volume: 34 Year: 2005 Keywords: college graduates, declining returns, young cohort, X-DOI: 10.1080/12265080500117459 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500117459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:2:p:167-180 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaohong Wu Author-X-Name-First: Xiaohong Author-X-Name-Last: Wu Author-Name: Thomas Hout Author-X-Name-First: Thomas Author-X-Name-Last: Hout Author-Name: Michael Enright Author-X-Name-First: Michael Author-X-Name-Last: Enright Title: The Long Emergence of a Modern Insurance Industry in China Abstract: From 1949 through 1979, China had no insurance industry, as the state self-insured. Government policy was cautious and growth slow for the next 15 years, but since the early 1990s the pace of policy change has accelerated and the industry has grown at more than twice the gross domestic product. Nevertheless, the industry's development and market penetration, particularly in general insurance, remains extremely low by international standards, and continues to be retarded by a mix of forces. This paper examines the drivers for and against the long emergence of China's insurance industry, followed by a projection of the future development of the industry in China. Journal: Global Economic Review Pages: 181-200 Issue: 2 Volume: 34 Year: 2005 Keywords: insurance industry, China, policy change, general insurance, life insurance, X-DOI: 10.1080/12265080500117590 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500117590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:2:p:181-200 Template-Type: ReDIF-Article 1.0 Author-Name: Kiwon Kang Author-X-Name-First: Kiwon Author-X-Name-Last: Kang Title: Is Dollarization Good for Cambodia? Abstract: During the 12 years since 1992 when people started to use the dollar as a currency in Cambodia, the share of the dollar has reached more than 70% of the total currency. This dollarization phenomenon has resulted in large seigniorage losses for the Cambodian government. The costs are estimated up to US$682 million at the end of 2004 with an additional US$61 million lost annually. Furthermore, there are many other kinds of costs caused by the side effects of seigniorage loss. Without siegiorage, some monetary, fiscal and foreign trade policies are no longer available. Worsening the distortion of income distribution is another side effect. These are major costs of dollarization over the direct seigniorage loss. The benefits of dollarization include stabilizing price levels and lowering the risk of national default during a foreign currency crisis. It is not difficult to conclude that the costs of dollarization outweigh the benefits. There are two de-dollarization methods. One is a policy that prohibits people from using the dollar as a currency by law. The other is the policy that widens the difference of the costs and the benefits of using dollars, also by law. Either method is applicable but it seems reasonable that the method of prohibition by direct law would be more effective and efficient than the other method, since 84% of the total population exclusively uses the riel in Cambodia. It is totally dependent on the decision of the Cambodian government whether or not a de-dollarization policy is adopted. The results of the decision, for good or ill, will rest finally with the people of Cambodia. Journal: Global Economic Review Pages: 201-211 Issue: 2 Volume: 34 Year: 2005 Keywords: Dollarization, dollarization phenomenon, M2, costs of dollarization, benefits of dollarization, seigniorage, seigniorage loss, national default, de-dollarization, bonus of confidence, X-DOI: 10.1080/12265080500117517 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500117517 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:2:p:201-211 Template-Type: ReDIF-Article 1.0 Author-Name: O. Yul Kwon Author-X-Name-First: O. Yul Author-X-Name-Last: Kwon Title: A Cultural Analysis of South Korea's Economic Prospects Abstract: This study analyses cultural effects on economic development in South Korea. It introduces the concept of transaction costs as an operational intermediary between culture and economic development. Using this approach, it is found that culture affects economic development through its impacts on transaction costs in the static case. In the dynamic case, culture affects the economy through its impacts on the creative capacity of citizens. To assess the role of culture in future economic development, recent changes in Korean culture are examined. These include rising individualism and declining sense of community and trust; weaker appreciation of cooperation, compromise, and acceptance of dissent, and rising inclination towards confrontation; and the failing rule of law and rising perception of injustice. These all raise transaction costs. In addition, the future orientation is fading, as suggested by decreasing savings and investment rates, and by decline in the fertility rate. In view of these recent changes, Korean culture will have a negative effect on the future economy, compared to its positive influence in earlier decades from the 1960s. Culture is therefore not ceteris paribus. Even if all else remains the same, the prospects of the Korean economy will be tainted by the influence of culture. Journal: Global Economic Review Pages: 213-231 Issue: 2 Volume: 34 Year: 2005 Keywords: cultural analysis, South Korea, economic development, X-DOI: 10.1080/12265080500117541 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500117541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:2:p:213-231 Template-Type: ReDIF-Article 1.0 Author-Name: Olugbenga Onafowora Author-X-Name-First: Olugbenga Author-X-Name-Last: Onafowora Author-Name: Oluwole Owoye Author-X-Name-First: Oluwole Author-X-Name-Last: Owoye Title: Currency Substitution and the Stability of the Demand for Money in East Asia Abstract: This paper models and tests the stability of the demand for money in five East Asian countries—Indonesia, Malaysia, Philippines, Singapore, and Thailand—in the context of an open economy. The Johansen multivariate cointegration vector error correction analysis against quarterly data covering the period 1985:1-2001:4 was used. It was found that a stationary long run cointegrating relationship exists between broad money, real income, domestic interest rates, foreign interest rates corrected for exchange rate depreciation, and the expected rate of depreciation of the exchange rate. The results show that US Treasury bills rates and the foreign exchange rate vis-a-vis the US dollar play a significant role in the East Asian countries money demand relationship. This suggests that currency substitution vis-a-vis the US dollar may be an important consideration in the design and implementation of monetary policy in the East Asian countries. Furthermore, the results show that the Asian currency crises impacted the money demand functions negatively in these countries. CUSUM and CUSUMSQ stability tests show no evidence of parameter instability of the money demand functions in three of the five countries throughout the period under investigation. Journal: Global Economic Review Pages: 233-259 Issue: 2 Volume: 34 Year: 2005 Keywords: East Asia, money demand, currency substitution, cointegration, CUSUM stability test, CUSUMSQ stability test, X-DOI: 10.1080/12265080500117574 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500117574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:2:p:233-259 Template-Type: ReDIF-Article 1.0 Author-Name: Amit Bhandari Author-X-Name-First: Amit Author-X-Name-Last: Bhandari Author-Name: Almas Heshmati Author-X-Name-First: Almas Author-X-Name-Last: Heshmati Title: Labour Use and its Adjustment in Indian Manufacturing Industries Abstract: This study provides an empirical investigation of the adjustment process of labour in Indian manufacturing industries, which evolved through structural transformation in the era of globalization. The analysis is based on a dynamic model applied to a panel of 22 two-digit manufacturing industries for the time period of 22 years covering 1980/1981 to 2001/2002. It is assumed that as competition increases industries adjust their employment to a desired level which is both industry and time specific. The results indicate that the manufacturing sector has shown a considerable dynamism in adjusting its workforce. The long-run labour demand responds greatest to the output, followed by capital and least by wages. It is observed that Indian manufacturing is not inefficient in labour use as modest speed of adjustment has led employment size closer to the optimal level. Journal: Global Economic Review Pages: 261-290 Issue: 3 Volume: 34 Year: 2005 Keywords: Labour use, employment, adjustment, globalization, manufacturing, India, X-DOI: 10.1080/12265080500292591 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500292591 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:3:p:261-290 Template-Type: ReDIF-Article 1.0 Author-Name: Cesar Oliveira Author-X-Name-First: Cesar Author-X-Name-Last: Oliveira Author-Name: Benjamin Tabak Author-X-Name-First: Benjamin Author-X-Name-Last: Tabak Title: An International Comparison of Banking Sectors: A DEA Approach Abstract: This paper presents a novel approach to measure and compare the efficiency of the banking system in several countries and stages of development using the non-parametric mathematic methodology Data Envelopment Analysis (DEA). Thus, we expect to broaden the range of studies about banking efficiency. Differently from most studies that use accounting data for measuring efficiency we employed market data, measuring returns and risk (calculated in different ways) in order to build a new measure of efficiency. This approach allows the comparison of different countries, which have different accounting rules and are not comparable using standard models. The main results suggest a downward trend in the average efficiency level of developed countries and a slight upward trend in the efficiency level of emerging market countries during the period. According to this study, efficiency tends to level off emerging and developed countries. It may be partially explained by the increasing globalization and integration processes that markets have been going through in the last years. Journal: Global Economic Review Pages: 291-307 Issue: 3 Volume: 34 Year: 2005 Keywords: banking efficiency, DEA, risk, stock profitability, market data, X-DOI: 10.1080/12265080500292633 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500292633 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:3:p:291-307 Template-Type: ReDIF-Article 1.0 Author-Name: David Pollard Author-X-Name-First: David Author-X-Name-Last: Pollard Title: CEPA and Pan Pearl River Delta Economic Integration: A Comparative Business Development Perspective Abstract: The introduction of the Closer Economic Partnership Arrangement (CEPA) at the beginning of 2004 and, more recently, CEPA-2 has provided a framework for increased business development in the Pearl River Delta area of China and the Special Administrative Regions of Macau and Hong Kong. In particular, the introduction of CEPA may lead to a significant increase in trade between Hong Kong and the neighbouring Guangdong Province. This paper examines the economic context into which the CEPA provisions have been implemented from an international perspective and it contains an assessment of relevant business development issues, particularly the case of small and medium-sized businesses (SMEs) in mainland China and Hong Kong. Wider issues for direct investment and the role of Hong Kong are also assessed. Experience with the implementation of free trade and associated market developments in other parts of the world is included but it is suggested that such models are of limited use in assessing economic development in the Pan Pearl River Delta Area. It seems that models derived from local practice will be more effective. Journal: Global Economic Review Pages: 309-320 Issue: 3 Volume: 34 Year: 2005 Keywords: Pan Pearl River Delta, CEPA, economic integration, business development, government policy, SMEs, X-DOI: 10.1080/12265080500292617 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500292617 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:3:p:309-320 Template-Type: ReDIF-Article 1.0 Author-Name: Ashima Goyal Author-X-Name-First: Ashima Author-X-Name-Last: Goyal Author-Name: Ankita Agarwal Author-X-Name-First: Ankita Author-X-Name-Last: Agarwal Title: Risk and Asian Exchange Rate Regimes Abstract: A panel regression gives evidence that more flexibility in Asian exchange rates reduces risk associated with bank borrowing abroad, but deviations from mean exchange rates, and from the renminbi, increase risk. Since the exchange rate regime affects bank behavior and the incentives to hedge, the results broadly support the bank run over the moral hazard view of twin banking and currency crisis. The results suggest that flexibility in exchange rates is required for Asian EMEs, but the flexibility has to be limited, and it depends on more flexibility in the renminbi. This has implications for current global imbalances in reserves and feasible adjustment paths. Journal: Global Economic Review Pages: 321-329 Issue: 3 Volume: 34 Year: 2005 Keywords: exchange rate flexibility, risk, hedging, moral hazard, bank runs, X-DOI: 10.1080/12265080500292609 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500292609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:3:p:321-329 Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Worthington Author-X-Name-First: Andrew Author-X-Name-Last: Worthington Author-Name: Abbas Valadkhani Author-X-Name-First: Abbas Author-X-Name-Last: Valadkhani Title: Catastrophic Shocks and Capital Markets: A Comparative Analysis by Disaster and Sector Abstract: This paper provides an analysis of the impact of natural, industrial and terrorist disasters on the Australian capital market using the Box and Tiao intervention analysis and the data on daily returns in the following 10 market sectors: consumer discretionary, consumer staples, energy, financial, healthcare, industrial, information technology, materials, telecommunication services and utilities. Inter alia, it was found that the shocks provided by natural disasters have an influence on market sector returns, depending upon the sector in question. The sectors most sensitive to disasters of any type are the consumer discretionary, financial services and materials sectors while the most significant single event during the past 8 years would appear to be the September 11 terrorist attack, at least in terms of its impact upon the capital market. Journal: Global Economic Review Pages: 331-344 Issue: 3 Volume: 34 Year: 2005 Keywords: Intervention analysis, capital markets, natural disasters, X-DOI: 10.1080/12265080500292641 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500292641 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:3:p:331-344 Template-Type: ReDIF-Article 1.0 Author-Name: Bruno Sergi Author-X-Name-First: Bruno Author-X-Name-Last: Sergi Title: International Organizations and Global Affairs Abstract: Journal: Global Economic Review Pages: 345-354 Issue: 3 Volume: 34 Year: 2005 X-DOI: 10.1080/12265080500292625 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500292625 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:3:p:345-354 Template-Type: ReDIF-Article 1.0 Author-Name: Jang-Sup Shin Author-X-Name-First: Jang-Sup Author-X-Name-Last: Shin Author-Name: Ha-Joon Chang Author-X-Name-First: Ha-Joon Author-X-Name-Last: Chang Title: Globalization and East Asian Economies: An Introduction Abstract: Journal: Global Economic Review Pages: 355-362 Issue: 4 Volume: 34 Year: 2005 X-DOI: 10.1080/12265080500446304 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500446304 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:4:p:355-362 Template-Type: ReDIF-Article 1.0 Author-Name: Ha-Joon Chang Author-X-Name-First: Ha-Joon Author-X-Name-Last: Chang Title: Globalization, Global Standards, and the Future of East Asia Abstract: After discussing whether there should be global standards in institutions, the article shows that the so-called global institutions (GSIs) are not truly 'global' but institutions that are specific to the Anglo-American countries. The article then criticizes the arguments that the Anglo-American institutions will eventually become GSIs because of their superiority. Finally, the article discusses why the Anglo-American institutions are particularly unsuited to developing countries, which is why even the Anglo-American countries adopted them only after they had achieved their economic development. It is concluded that the East Asian countries would be ill advised to adopt the so-called GSIs. Journal: Global Economic Review Pages: 363-378 Issue: 4 Volume: 34 Year: 2005 Keywords: Global standard institutions, East Asia, X-DOI: 10.1080/12265080500441354 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500441354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:4:p:363-378 Template-Type: ReDIF-Article 1.0 Author-Name: Jang-Sup Shin Author-X-Name-First: Jang-Sup Author-X-Name-Last: Shin Title: Globalization and Challenges to the Developmental State: A Comparison between South Korea and Singapore Abstract: By focusing on the interaction between mobile factors and less mobile factors in the process of globalization, this paper argues that the role of the state becomes more important in some significant respects as the pace of globalization accelerates, contrary to the popular perception that it should be diminished invariably. It elaborates on the argument by comparing different challenges to the developmental states in East Asia, mainly those of South Korea and Singapore. Journal: Global Economic Review Pages: 379-395 Issue: 4 Volume: 34 Year: 2005 Keywords: Developmental states, South Korea, Singapore, X-DOI: 10.1080/12265080500441495 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500441495 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:4:p:379-395 Template-Type: ReDIF-Article 1.0 Author-Name: Bae-Gyoon Park Author-X-Name-First: Bae-Gyoon Author-X-Name-Last: Park Title: Globalization and Local Political Economy: The Multi-scalar Approach Abstract: Based on a multi-scalar view on globalization, this paper suggests that the nation-state's policy liberalization is not simply imposed from above by global forces, but constituted from below by national and sub-national forces. In particular, this paper explores how inter-scalar interactions between national and local forces can give impacts on the ways in which the nation state liberalizes its regulations on the transnational flows of capital and investment. With case studies of “big deal” and the Jeju international free city project in Korea, it elaborates on how the state's liberalization and globalization projects can be spatially and politically constructed under the influences of: (1) inter-scalar tensions between the national and the local, and (2) politics of “jumping-scale”, which either local or national actors organize in order to mobilize the sources of power at different geographical scales. Journal: Global Economic Review Pages: 397-414 Issue: 4 Volume: 34 Year: 2005 Keywords: Liberalization, globalization, local politics, inter-scalar interaction, spatially selective liberalization, South Korea, X-DOI: 10.1080/12265080500441453 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500441453 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:4:p:397-414 Template-Type: ReDIF-Article 1.0 Author-Name: James Crotty Author-X-Name-First: James Author-X-Name-Last: Crotty Author-Name: Kang-Kook Lee Author-X-Name-First: Kang-Kook Author-X-Name-Last: Lee Title: From East Asian “Miracle” to Neo-liberal “Mediocrity”: The Effects of Liberalization and Financial Opening on the Post-crisis Korean Economy Abstract: In December 1997 the International Monetary Fund (IMF) offered Korea loans to help alleviate its financial crisis. These loans were accompanied by what the IMF called “extreme structural conditionality.” Korea was required to replace its traditional East Asian economic system with a neo-liberal model. We review economic performance in the neo-liberal era. Growth has slowed, poverty and inequality have risen, and investment spending has stagnated, while foreign ownership of Korean firms and banks has skyrocketed. We argue that foreign investment has not helped Korea. For example, by leading a shift from corporate to consumer lending, foreign control of Korea's financial markets has constrained capital accumulation and helped create an excessively indebted household sector, while making it harder for the government to adopt progressive economic policies. We conclude that the 8 year experiment with radical neo-liberal restructuring has turned out well for foreign capital and wealthy Koreans, but has been a failure for the majority of Korea's people. Journal: Global Economic Review Pages: 415-434 Issue: 4 Volume: 34 Year: 2005 Keywords: Korean economy, neo-liberal, liberalization, financial opening, X-DOI: 10.1080/12265080500441388 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500441388 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:4:p:415-434 Template-Type: ReDIF-Article 1.0 Author-Name: Ding Lu Author-X-Name-First: Ding Author-X-Name-Last: Lu Title: Responses to Globalization from a Big Transition Economy: The Case of China Abstract: Five years after its accession to the World Trade Organization, China has to carry out full commitments of market opening in many fronts, in particular the local currency banking services. Meanwhile, as China gradually rises to the rank of the middle-income countries, it faces the possible conflicts between ensuring a smooth integration of its economy into the global market and sustaining a full-employment growth of the domestic economy. This paper discusses several intermediate and long-term challenges to China in the era of globalization. Journal: Global Economic Review Pages: 435-452 Issue: 4 Volume: 34 Year: 2005 Keywords: Globalization, China, WTO, X-DOI: 10.1080/12265080500441420 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500441420 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:4:p:435-452 Template-Type: ReDIF-Article 1.0 Author-Name: Rajah Rasiah Author-X-Name-First: Rajah Author-X-Name-Last: Rasiah Title: Trade-related Investment Liberalization under the WTO: The Malaysian Experience Abstract: Using the institutional and industrial policy perspectives on latecomer development this paper examines the commitments and potential impact of the Trade-related Investment Measures (TRIMs) and investment-related elements of the General Agreement on Trade in Services (GATS) for Malaysia's development policies. While noting that the application of TRIMs may very well remove a potentially draining industry from undermining consumer welfare, using the logic of public goods and location in the development trajectory the paper argues that the Malaysian experience supports the need for government control of the services sector. Journal: Global Economic Review Pages: 453-471 Issue: 4 Volume: 34 Year: 2005 Keywords: TRIMs, GATS, WTO, Malaysia, X-DOI: 10.1080/12265080500441487 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500441487 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:34:y:2005:i:4:p:453-471 Template-Type: ReDIF-Article 1.0 Author-Name: Mahinda Siriwardana Author-X-Name-First: Mahinda Author-X-Name-Last: Siriwardana Title: Australia's Involvement in Free Trade Agreements: An Economic Evaluation Abstract: The establishment of Free Trade Agreements (FTAs) has become an integral part of Australia's current trade policy. Australia has signed FTAs with Singapore, Thailand and the US. Possibilities for similar agreements with the Association of South East Asian Nations (ASEAN), China, and Japan are being explored. This paper examines the effects of FTAs on the Australian economy and on the trading partners, drawing lessons from simulations of a number of free trade agreements. The simulations are undertaken using the Global Trade Analysis Project (GTAP) model. By simulating the GTAP multi-country computable general equilibrium (CGE) model, the paper provides quantitative evidence concerning the welfare impact of FTAs with special reference to trade creation and trade diversion. Examining responses of various production sectors identifies the structural changes that may take place in the economy over the long run. The findings may shed light on the debate over the potential incentives to participate in multilateral trade liberalization. Journal: Global Economic Review Pages: 3-20 Issue: 1 Volume: 35 Year: 2006 Keywords: Free trade agreement, general equilibrium, GTAP model, X-DOI: 10.1080/12265080500537227 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500537227 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:1:p:3-20 Template-Type: ReDIF-Article 1.0 Author-Name: Katarina Keller Author-X-Name-First: Katarina Author-X-Name-Last: Keller Title: Education Expansion, Expenditures per Student and the Effects on Growth in Asia Abstract: This article estimates the separate effects of primary, secondary and higher education on economic growth in Asia since 1960. Enrollment rates, public expenditures and public expenditures per student are used as measures of education in an empirical panel data analysis. Expenditures toward primary education and expenditures per student in this education stage have contributed highly significantly to economic growth, while expenditures toward the higher stages seem more inefficiently utilized. Enrollment rates in secondary education especially play an important role in increasing growth rates. Enrollment rates, in particular, display significant indirect effects. Journal: Global Economic Review Pages: 21-42 Issue: 1 Volume: 35 Year: 2006 Keywords: Economic growth, education, enrollment, public education expenditures, Asia, X-DOI: 10.1080/12265080500537243 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500537243 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:1:p:21-42 Template-Type: ReDIF-Article 1.0 Author-Name: Tilahun Temesgen Author-X-Name-First: Tilahun Author-X-Name-Last: Temesgen Title: Decomposing Gender Wage Differentials in Urban Ethiopia: Evidence from Linked Employer-Employee (LEE) Manufacturing Survey Data Abstract: This study estimates the magnitude of gender wage differentials for a sample of workers from the Ethiopian manufacturing sector using the traditional Oaxaca-Blinder and an augmented Cotton-Neumark methodologies. In doing so, it separates part of the estimated log of gender wage differential explained by differences in human capital characteristics between men and women from that which is not explained by such differences. The latter is known in the literature as “treatment” component or “discrimination” due to differing pay structures for the two gender groups. Accordingly, it is found that in Ethiopia's manufacturing sector men on average get up to 30% more than women depending on the measure used. However, once we control for a number of individual and establishment level characteristics, the level of wage premium for men over women is close to 5% or around 12 Ethiopian cents per hour. Out of this, both decomposition procedures estimate that close to 60% of the premium is a result of discrimination (different treatment of men and women in the labour market). Using an augmented decomposition technique, it is found that out of the 60% “discrimination component” close to 13% is due to men's treatment advantage in the labour market and the remaining 47% is due to women's treatment disadvantage. Also it is found that firm level characteristics are important contributors to the total discrimination component. Without controlling for establishment level characteristics, the discrimination component would have been around 27% indicating that ignoring establishment characteristics in decomposition exercises would result into a biased estimation, and in this case it would have underestimated the level of discrimination by close to 50%. Journal: Global Economic Review Pages: 43-66 Issue: 1 Volume: 35 Year: 2006 Keywords: Wage determinants, economics of gender, wage differentials, wage gap, sex discrimination, economic models, labour market, statistical analysis, Ethiopia, X-DOI: 10.1080/12265080500537250 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500537250 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:1:p:43-66 Template-Type: ReDIF-Article 1.0 Author-Name: Sangjoon Jun Author-X-Name-First: Sangjoon Author-X-Name-Last: Jun Title: The Nexus between IT Investment and Banking Performance in Korea Abstract: This paper explores the nexus between the information technology (IT) investment of Korean banks and their management performance, employing panel cointegration testing and estimation techniques. Annual panel data on the financial statements and IT investment measures of banks are exploited in empirical analysis. Various panel unit root tests demonstrate that the data variables are integrated processes with unit roots. It suggests that the existing researches that do not consider panel unit roots suffer reduced reliability in their estimation and inference results due to the spurious regression problem. Three distinct panel cointegration techniques are used to estimate the profitability equation. The relationship between ROE and the capital budget ratio is found to be the strongest, which implies that the capital budget has had the greatest effects on enhancing bank returns. The IT investment of large banks shows a stronger positive influence on improving bank returns than that of small banks. The IT investment of wholesale banks specializing in corporate loans produces greater positive effects on bank profitability than that of retail banks. Several elucidations are provided for the above findings. Journal: Global Economic Review Pages: 67-96 Issue: 1 Volume: 35 Year: 2006 Keywords: IT investment, panel unit root, panel cointegration, X-DOI: 10.1080/12265080500537334 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500537334 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:1:p:67-96 Template-Type: ReDIF-Article 1.0 Author-Name: Ying Huang Author-X-Name-First: Ying Author-X-Name-Last: Huang Author-Name: Feng Guo Author-X-Name-First: Feng Author-X-Name-Last: Guo Title: An Empirical Examination of Capital Mobility in East Asia Emerging Markets Abstract: This paper examines the evidence on saving-investment correlations and the covered interest parity conditions to gauge the degree of capital mobility in eight East Asia emerging markets. It is found that Hong Kong and Singapore have fairly mobile capital markets while other countries exhibit financial openness only to a certain extent. The results also indicate that financial integration has been broadly enhanced among these markets following their liberalizations. However, except for Hong Kong, the degree of capital mobility in all markets has not yet returned to the level before the Asian crisis. Journal: Global Economic Review Pages: 97-111 Issue: 1 Volume: 35 Year: 2006 Keywords: East Asia, capital mobility, saving-investment correlation, covered interest parity, X-DOI: 10.1080/12265080500537458 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500537458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:1:p:97-111 Template-Type: ReDIF-Article 1.0 Author-Name: Sajid Anwar Author-X-Name-First: Sajid Author-X-Name-Last: Anwar Author-Name: Desh Gupta Author-X-Name-First: Desh Author-X-Name-Last: Gupta Title: Financial Restructuring and Economic Growth in Thailand Abstract: After a sharp downturn in 1998, the Thai economy has up until 2003 registered a strong growth. There has also been a significant increase in exports as a percentage of the gross domestic product (GDP). While examining the performance of the Thai economy, this paper pays special attention to the factors that contributed to the Asian financial crisis of 1997-1998. Owing to increased financial rather than trade liberalization facilitated by improvements in communications technology, it is virtually impossible to eliminate the possibility of crises in the future. Through sound macro-economic management polices it is however possible to reduce the frequency of crises and their subsequent impact on the real economy. This paper suggests policies that may help to reduce the risk of similar crises in the future. Journal: Global Economic Review Pages: 113-127 Issue: 1 Volume: 35 Year: 2006 Keywords: Asian financial crisis, financial restructuring, Thailand's economic growth, X-DOI: 10.1080/12265080500537532 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080500537532 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:1:p:113-127 Template-Type: ReDIF-Article 1.0 Author-Name: Albert Wijeweera Author-X-Name-First: Albert Author-X-Name-Last: Wijeweera Author-Name: Don Clark Author-X-Name-First: Don Author-X-Name-Last: Clark Title: Taxation and Foreign Direct Investment Inflows: Time Series Evidence from the US Abstract: This study investigates long run and short run relationships between the corporate income tax rate and foreign direct investment (FDI) inflows to the US. The tax rate is found to exert a significant negative effect on total FDI and transfer fund inflows in the long run. A 1% decrease in the tax rate would increase total FDI by 2.4% and transfer funds by 4.2%. Collectively, results suggest that the US can use tax policies to attract FDI from abroad. Concern over the possibility of tax competition among countries to attract foreign capital is warranted. Journal: Global Economic Review Pages: 135-143 Issue: 2 Volume: 35 Year: 2006 Keywords: Corporate income tax rate, foreign direct investment (FDI), tax rate elasticities, reinvested earnings, transfer funds, X-DOI: 10.1080/12265080600715285 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600715285 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:2:p:135-143 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-X-Name-First: Yu Author-X-Name-Last: Hsing Title: Analysis of Short-term Exchange Rate Movements in Korea: Application of an Extended Mundell-Fleming Model Abstract: Extending the Mundell-Fleming model and applying the Newey-West HAC method, this paper finds that the real USD/won exchange rate is negatively affected by real M2, the world interest rate, country risk, the expected inflation rate and the binary variable for the time period during the Asian financial crisis, and positively influenced by the stock market performance and the lagged dependent variable. The coefficient of real government deficit spending is positive but insignificant at the 10% level. Therefore, to maintain the stability of the won, the authorities need to pursue expansionary monetary and fiscal policies with caution, nurture a positive business and investment environment to reduce country risk, maintain a healthy stock market, and enhance the central bank's credibility to lower inflation expectations. Journal: Global Economic Review Pages: 145-151 Issue: 2 Volume: 35 Year: 2006 Keywords: Mundell-Fleming model, country risk, monetary and fiscal policy, world interest rate, stock market performance, X-DOI: 10.1080/12265080600715319 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600715319 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:2:p:145-151 Template-Type: ReDIF-Article 1.0 Author-Name: Ashima Goyal Author-X-Name-First: Ashima Author-X-Name-Last: Goyal Title: Exchange Rate Regimes: Middling Through Abstract: The appropriate exchange rate regime, in the context of integration of currency markets with financial markets and of large international capital flows, continues to be a policy dilemma. It is found that the majority of countries are moving towards somewhat higher exchange and lower interest rate volatility. Features of foreign exchange (forex) markets could be partly motivating these choices. A model with noise trading, non-traded goods and price rigidities shows that bounds on the volatility of the exchange rate can lower noise trading in forex markets; decrease fundamental variance and improve real fundamentals in an emerging market economy (EME); and give more monetary policy autonomy. Central banks prefer secret interventions where they have an information advantage or fear destabilizing speculation. But in the model discussed in this article, short-term pre-announced interventions can control exchange rate volatility, pre-empt deviations in prices and real exchange rates, and allow markets to help central banks achieve their targets. The long-term crawl need not be announced. In conclusion, the regime's applicability to an EME is explored. Journal: Global Economic Review Pages: 153-175 Issue: 2 Volume: 35 Year: 2006 Keywords: Exchange rate regimes, noise traders, non-traded goods, price rigidities, X-DOI: 10.1080/12265080600715335 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600715335 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:2:p:153-175 Template-Type: ReDIF-Article 1.0 Author-Name: T. K. Jayaraman Author-X-Name-First: T. K. Author-X-Name-Last: Jayaraman Author-Name: Huay-Huay Lee Author-X-Name-First: Huay-Huay Author-X-Name-Last: Lee Author-Name: Hock-Ann Lee Author-X-Name-First: Hock-Ann Author-X-Name-Last: Lee Title: Regional Economic Integration in the Pacific: An Empirical Study Abstract: The Pacific Islands Forum, the regional organization comprising 14 Pacific Island countries (PICs), Australia and New Zealand is committed to strengthen regional cooperation and integration. This paper examines progress in real and financial integration in the region. Utilizing the methodology based on international parity conditions: purchasing power parity and uncovered interest parity, the study concludes that while PICs' integration amongst themselves and with Australia and New Zealand, is relatively advanced with respect to goods and services, the financial market integration remains incomplete. The policy implication is impact of further liberalization is likely to be substantial on financial markets. Journal: Global Economic Review Pages: 177-192 Issue: 2 Volume: 35 Year: 2006 Keywords: Economic integration, purchasing power parity, uncovered interest parity, Pacific Islands, Australia, New Zealand, X-DOI: 10.1080/12265080600715350 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600715350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:2:p:177-192 Template-Type: ReDIF-Article 1.0 Author-Name: Shijin Yoo Author-X-Name-First: Shijin Author-X-Name-Last: Yoo Author-Name: Seh-Woong Chung Author-X-Name-First: Seh-Woong Author-X-Name-Last: Chung Author-Name: Jin Han Author-X-Name-First: Jin Author-X-Name-Last: Han Title: A Durable Replacement Model for Symbolic versus Utilitarian Consumption: An Integrated Cultural and Socio-economic Perspective Abstract: The accumulated knowledge on durable consumption has traditionally been premised upon identifying personal factors (e.g. demographics or psychographics) underlying the purchase decision. On a broader scope, however, consumer behavior is shaped by cultural and social factors, and our understanding would be incomplete without these considerations. To this end, this study sets out to provide an integrative framework on durable consumption. Specifically, the proposed framework explores whether cultural differences do exist in the perception of a selected durable (e.g. automobile) on the symbolic/utilitarian dimension, which in turn, may affect the length of the replacement cycle, likelihood of upgrading to a higher status model, as well as, inertia towards remaining within the same product-type in the category (e.g. sedan, SUV, minivan, pickup truck). Applying a multinomial logit model to Korean and US automobile transaction data, the finding reveal that Korean consumers tend to have shorter replacement cycles, engage in more upgrades but are less likely to change the product-type than American consumers. Considerations of cultural and socio-economic factors as key drivers of the differences in perception and behavior are put forward. Managerial implications and directions for future research are also discussed. Journal: Global Economic Review Pages: 193-206 Issue: 2 Volume: 35 Year: 2006 Keywords: Durable consumption, multinominal logit model, symbolic meaning, X-DOI: 10.1080/12265080600715426 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600715426 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:2:p:193-206 Template-Type: ReDIF-Article 1.0 Author-Name: Doowon Lee Author-X-Name-First: Doowon Author-X-Name-Last: Lee Title: The Korean Economy in Transition: In Search for a New Model Abstract: Prior to the 1997 financial crisis, the Korean economy had based its growth policies on East Asia's economic catch-up model which was based mainly on the Japanese development experience. However, the events that lead to the 1997 crisis and the changes instituted in the Korean economy after the crisis have put to question whether the traditional East Asian growth model will continue to be viable. This paper examines two alternative models of development, namely the “Anglo-Saxon” and the “Continental European” models, and evaluates their relevance for Korea's future development challenges. Despite many common features these models share, they are also quite distinctive with regard to their treatment of the labor market system and the role of government. By focusing on the model's capacity to expand employment and to provide sustainable growth as the most important criteria, it is suggested that Korea should follow the “Anglo-Saxon model”, at least in the short- to medium-term. In comparing Korea's economy with other advanced economies when they were at the similar stage of development, it is found that Korea's growth potential lags behind that of countries such as Japan, Germany, Finland, and Ireland. The efficiency of Korea's investment is found to be only slightly better than Japan while it is inferior to all other advanced economies. Despite these challenges, Korea is apparently moving toward the “Continental European model”, with the Korean government increasing its own size and plans for further expenditures on social security and welfare. However, in order to ensure sustainable development with significant job creation, this paper argues that Korea should switch its direction and adopt the “Anglo-Saxon model” as soon as possible. Journal: Global Economic Review Pages: 207-230 Issue: 2 Volume: 35 Year: 2006 Keywords: Anglo-Saxon model, continental European model, Korean economy, X-DOI: 10.1080/12265080600715475 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600715475 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:2:p:207-230 Template-Type: ReDIF-Article 1.0 Author-Name: James Dorn Author-X-Name-First: James Author-X-Name-Last: Dorn Title: Ending Financial Repression in China Abstract: China has the most restricted capital markets in Asia. Constraints on capital freedom have resulted in politicization of investment decisions, corruption, waste of capital, and loss of personal freedom. Ending financial repression in China by liberalizing macro-economic prices and making the Yuan fully convertible would help China become a world-class financial centre. To do so, however, would require widespread privatization and rule of law-both of which would undermine the power of the Chinese Communist Party. The West should be patient with China and recognize that gradual reform and engagement are preferable to destructive protectionism. Journal: Global Economic Review Pages: 231-238 Issue: 2 Volume: 35 Year: 2006 Keywords: Capital freedom, property rights, spontaneous order, X-DOI: 10.1080/12265080600715566 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600715566 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:2:p:231-238 Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Worthington Author-X-Name-First: Andrew Author-X-Name-Last: Worthington Author-Name: Helen Higgs Author-X-Name-First: Helen Author-X-Name-Last: Higgs Title: Market Risk in Demutualized Self-Listed Stock Exchanges: An International Analysis of Selected Time-Varying Betas Abstract: This article examines market risk in four demutualized and self-listed stock exchanges: the Australian Stock Exchange, the Deutsche Borse, the London Stock Exchange and the Singapore Stock Exchange. Daily company and the Morgan Stanley Capital International (MSCI) Index returns provide the respective asset and market portfolio data. A bivariate GARCH model is used to estimate time-varying betas for each exchange from listing until 7 June 2005. While the results indicate significant beta volatility, unit root tests show the betas to be mean-reverting. These findings are used to suggest that despite concerns that demutualized and self-listed exchanges entail new market risks that merit regulatory intervention, the betas of the exchange companies have not changed significantly since listing. However, market risk does vary considerable across the exchanges, with mean time-varying betas of 0.56 for the Deutsche Borse, 0.66 for the London Stock Exchange, 0.78 for the Singapore Stock Exchange, and 0.95 for the Australian Stock Exchange. Journal: Global Economic Review Pages: 239-257 Issue: 3 Volume: 35 Year: 2006 Keywords: Time-varying betas, moving average, bivariate GARCH, demutualization and self-listing, exchanges, X-DOI: 10.1080/12265080600887894 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600887894 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:3:p:239-257 Template-Type: ReDIF-Article 1.0 Author-Name: Mun Heng Toh Author-X-Name-First: Mun Heng Author-X-Name-Last: Toh Title: Singapore's Perspectives on the Proliferation of RTAs in East Asia and Beyond Abstract: In this article the viewpoints and adopted strategies of Singapore in managing its trading relationship with other countries in the world is discussed. Trade being the lifeline and basis for its economic survival, Singapore has been very active in the negotiation and establishment of Free Trade Agreements (FTAs) with countries, practically in every continent. Singapore's activism in bilateral FTAs is a reinforcement of its development strategy of expanding and ensuring market access for local and foreign investors. This is also in alignment with Singapore's pro- business strategy philosophy and the objective of ensuring economic viability. Also Singapore's trade accords go beyond trade liberalization and include “behind the border” impediments to trade; this is reckoned to keep the momentum of trade talk going and to hasten the process of liberalization by inducing other countries to liberalize. Journal: Global Economic Review Pages: 259-284 Issue: 3 Volume: 35 Year: 2006 Keywords: Free Trade Agreements, East Asia regionalism, trade liberalization, multilateralism, X-DOI: 10.1080/12265080600887977 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600887977 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:3:p:259-284 Template-Type: ReDIF-Article 1.0 Author-Name: Chang-Gun Park Author-X-Name-First: Chang-Gun Author-X-Name-Last: Park Title: Japan's Policy Stance on East Asian Neo-Regionalism: From Being a “Reluctant”, to Becoming a “Proactive” State Abstract: This article is a theoretically grounded empirical contribution aimed at shedding light on Japan's policy stance on East Asian neo-regionalism. It aims to examine the recent region-building process in East Asia. The dynamics in East Asia suggest that regional institutionalization, brought about by norm diffusion based on the idea of neo-regionalism, is likely to follow a progressive and evolutionary trajectory through the institutionalization of the Association of Southeast Asian Nation (ASEAN) + 3 (South Korea, Japan and China). It provides a wide spectrum of regional-integrationist perspectives in order to offer as full a picture as possible of Japan's role in promoting regional integration in East Asia. The key finding of this article is that Japan has changed from a being “reluctant”, to becoming a “proactive” state in the context of regional collaboration in East Asia. Journal: Global Economic Review Pages: 285-301 Issue: 3 Volume: 35 Year: 2006 Keywords: Japan, EAEC, ASEAN + 3, East Asia, reluctant state, proactive state, neo-regionalism, X-DOI: 10.1080/12265080600888033 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600888033 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:3:p:285-301 Template-Type: ReDIF-Article 1.0 Author-Name: Mohd Zaini Abd Karim Author-X-Name-First: Mohd Zaini Abd Author-X-Name-Last: Karim Author-Name: Amy Azhar Mohd Harif Author-X-Name-First: Amy Azhar Mohd Author-X-Name-Last: Harif Author-Name: Azira Adziz Author-X-Name-First: Azira Author-X-Name-Last: Adziz Title: Monetary Policy and Sectoral Bank Lending in Malaysia Abstract: Unlike most studies on the effect of monetary policy on bank lending, this article intends to answer the question whether the tightening of monetary policy in Malaysia before and after the financial crisis in 1997 affected differently the commercial bank lending to various sectors of the economy. To achieve the objective, Vector Autoregressive Regression (VAR) method was used to generate impulse response function and variance decomposition to trace the impact of a shock in monetary policy on bank lending in Malaysia. The results show that a monetary policy tightening in Malaysia gives a negative impact on all the sectors. Analyzing sectoral responses to monetary shocks, evidence is found that some sectors are more affected than the others. The manufacturing, agricultural, and mining sector seems to decline more than the aggregate bank lending in response to interest rate shock. Journal: Global Economic Review Pages: 303-326 Issue: 3 Volume: 35 Year: 2006 Keywords: Monetary policy, bank lending, Vector autoregression, financial crisis, X-DOI: 10.1080/12265080600888074 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600888074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:3:p:303-326 Template-Type: ReDIF-Article 1.0 Author-Name: Amita Batra Author-X-Name-First: Amita Author-X-Name-Last: Batra Title: India's Global Trade Potential: The Gravity Model Approach Abstract: In this article an augmented gravity model equation has been used to analyze the world trade flows using a sample of 146 countries. The coefficients thus obtained are then used to predict trade potential for India. Ordinary Least Squares with cross-section data for the year 2000 have been used for estimation. The results show that all three traditional “gravity” effects are intuitively reasonable, with statistically significant t-statistic often exceeding 50 in absolute value. Alternative measures of gross national product (GNP) dollar value and purchasing power parity do not alter either the sign or significance of different explanatory variables. Historical and cultural similarities also impact positively upon bilateral trade. As concerns India's trade potential, the model shows that there is tremendous potential with China and trade can more than double if barriers and constraints are removed. Our estimates also indicate a huge potential, of the order of US$6.5 billion, with Pakistan. Journal: Global Economic Review Pages: 327-361 Issue: 3 Volume: 35 Year: 2006 Keywords: Augmented gravity model, trade potential, regional distribution, X-DOI: 10.1080/12265080600888090 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600888090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:3:p:327-361 Template-Type: ReDIF-Article 1.0 Author-Name: Dilip Das Author-X-Name-First: Dilip Author-X-Name-Last: Das Title: Lean Hong Kong Harvest and the Doha Round of Multilateral Trade Negotiations Abstract: The biennial Ministerial Conferences are the most important event of the WTO regime. The Hong Kong Ministerial Conference was the sixth biennial conference of the WTO, which aimed at a low-level equilibrium and achieved it. While it successfully eschewed another Cancun-like disappointing failure, the Hong Kong Ministerial did not achieve much of substance. If success is defined as not failing, the Hong Kong Ministerial Conference could be adjudged a success. Few bold decisions were attempted and important outstanding decisions were put off for the future. Liberalization of multilateral trade in agriculture was the most important as well as the most contentious issue in Hong Kong. A good number of significant secondary areas were also under negotiations. Core modalities that were to be determined on these issues in Hong Kong were not. A reasonably successful Hong Kong Ministerial Conference would have helped in advancing the Doha Round, which in turn would have meant welfare gains to the global economy, and its different regions and sub-regions. This opportunity was evidently missed. Journal: Global Economic Review Pages: 363-378 Issue: 3 Volume: 35 Year: 2006 Keywords: Doha Round, multilateral trade, trade in agriculture, state of the play, X-DOI: 10.1080/12265080600888132 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080600888132 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:3:p:363-378 Template-Type: ReDIF-Article 1.0 Author-Name: Sajid Anwar Author-X-Name-First: Sajid Author-X-Name-Last: Anwar Title: Manufacturing Sector Growth: A Case Study of Singapore Abstract: This paper attempts to highlight some of the challenges faced by the Singaporean economy in general and the manufacturing sector in particular. Statistical analysis is used to demonstrate the role of human capital and foreign investment on manufacturing output for the period 1980-2004. The paper shows that a long-run relationship exists among the real manufacturing output per-unit of employment, real foreign investment per-unit of employment and real human capital per-unit of employment. The paper also provides time series forecasts for the growth rates of real output, productivity and investment in Singaporean manufacturing sector. Journal: Global Economic Review Pages: 381-396 Issue: 4 Volume: 35 Year: 2006 Keywords: Asian financial crisis, foreign direct investment, economic growth, X-DOI: 10.1080/12265080601053785 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:381-396 Template-Type: ReDIF-Article 1.0 Author-Name: Deng-Shing Huang Author-X-Name-First: Deng-Shing Author-X-Name-Last: Huang Author-Name: Pei-Chou Lin Author-X-Name-First: Pei-Chou Author-X-Name-Last: Lin Author-Name: Yo-Yi Huang Author-X-Name-First: Yo-Yi Author-X-Name-Last: Huang Title: Learning-by-Exporting: Micro-dynamic Evidence from Taiwan Abstract: Do firms become more efficient after becoming exporters? Widespread empirical evidence indicates that exporting manufacturers achieve higher productivity levels than non-exporting manufacturers. Two explanations, self-selection and learning-by-exporting, are proposed in the literature, with the self-selection theory arguing that firms with higher productivity levels self-select into the highly competitive export market, whilst the learning-by-exporting theory argues that firms become more efficient after becoming exporters. Although the self-selection effect has the support of many empirical studies, the learning effect still has little or no empirical support, and is inconsistent with many of the micro-survey studies. We illustrate numerically that since it is heavily reliant upon an examination of productivity differential between exporters and non-exporters, the commonly-adopted approach may suffer from an underestimation of the learning effect in the export market. Such underestimation is also apparent when the underlying economy becomes more open to world markets. As a complement, we provide an alternative empirical strategy based upon active learning theory, and apply this to Taiwanese manufacturing census data for the years 1986, 1991 and 1996. We find that learning effects are empirically supported for both the export and non-export markets. Furthermore, we find that the learning effect in the non-export market is much stronger than in the export market. Journal: Global Economic Review Pages: 397-411 Issue: 4 Volume: 35 Year: 2006 Keywords: self-selection, active-learning effect, firm's decision-making, learning-speed, sunk cost, X-DOI: 10.1080/12265080601053801 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053801 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:397-411 Template-Type: ReDIF-Article 1.0 Author-Name: Yu-Wei Hu Author-X-Name-First: Yu-Wei Author-X-Name-Last: Hu Title: China's Pension Reform: A Precondition Approach Abstract: China has a relatively young population, but is about to undergo a remarkable demographic transformation. Given the un-sustainability of the old system, the Chinese authorities have initiated a number of pension reforms since the early 1990s. In this paper, based on latest precondition framework, we analyse and conclude that the initial economic and financial conditions within the reform started in China are sufficient to facilitate funding based pension reform. Journal: Global Economic Review Pages: 413-424 Issue: 4 Volume: 35 Year: 2006 Keywords: Chinese pension reform, precondition, multi-pillar pension system, financial system, Chile, X-DOI: 10.1080/12265080601053843 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053843 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:413-424 Template-Type: ReDIF-Article 1.0 Author-Name: T. K. Jayaraman Author-X-Name-First: T. K. Author-X-Name-Last: Jayaraman Author-Name: Chee-Keong Choong Author-X-Name-First: Chee-Keong Author-X-Name-Last: Choong Title: Growth Constraints and Determinants of a South Pacific Island in a Global Economy: A Study of Fiji Abstract: In a global economy, the South Pacific islands face unique constraints to growth. The study investigates whether Fiji was benefited by three-decade old open trade policies. Through a multivariate cointegration analysis, the study establishes the existence of a long-run relationship between open trade policy and physical and human capital resources. Although physical capital had a positive impact on growth, the existing complementary relationship between two kinds of capital requires that a threshold between physical and human capital needs to be attained before any negative influence on growth can be transformed into positive impact. Journal: Global Economic Review Pages: 425-444 Issue: 4 Volume: 35 Year: 2006 Keywords: open trade policy, endogenous growth, physical capital, human capital, cointegration, X-DOI: 10.1080/12265080601053850 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053850 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:425-444 Template-Type: ReDIF-Article 1.0 Author-Name: Miron Mushkat Author-X-Name-First: Miron Author-X-Name-Last: Mushkat Author-Name: Roda Mushkat Author-X-Name-First: Roda Author-X-Name-Last: Mushkat Title: The Transfer of Property Rights from the Public to the Private Sector in Hong Kong: A Critical Assessment Abstract: The privatization idea may have lost some of its luster in recent years, but it remains relevant in today's socio-economic environment and is pursued consistently in industrialized and industrializing countries alike. Hong Kong has followed the general pattern in a manner reflecting its particular circumstances and its institutional modus operandi. The underlying logic may not appear highly compelling, from a short-term perspective, yet there are sound grounds for approaching the task positively, if viewed from a multi-year standpoint. Rather surprisingly, for such a quintessentially capitalist society, Hong Kong has not confronted the privatization challenge astutely on the political front and has handled it somewhat mechanically in managerial terms. The benefits to the community may have thus been more modest than one could legitimately expect, given the historical backdrop. Journal: Global Economic Review Pages: 445-461 Issue: 4 Volume: 35 Year: 2006 Keywords: privatization, liberalization, competition, ownership, divestiture, efficiency, distributive justice, macro-economic stabilization, public choice, X-DOI: 10.1080/12265080601053876 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:445-461 Template-Type: ReDIF-Article 1.0 Author-Name: Jaleel Ahmad Author-X-Name-First: Jaleel Author-X-Name-Last: Ahmad Title: Monetary Policy in the Industrial World: Reflections on some Basic Issues Abstract: This paper is a general assessment of monetary policy in major OECD countries during the 1990s. Within a simple policy framework that combines money growth, nominal income, and an open economy IS-LM type Mundell-Fleming model, the paper discusses the major strands in the conduct of monetary policy in developed industrial economies. It throws light on such problems as “rules versus discretion”, management of exchange rates, the effect of monetary changes on income and prices, and the rupture of monetary policy with other instruments of economic policy that also affect the economy. Journal: Global Economic Review Pages: 463-475 Issue: 4 Volume: 35 Year: 2006 Keywords: monetary policy, industrial world, operating procedure, X-DOI: 10.1080/12265080601053959 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:463-475 Template-Type: ReDIF-Article 1.0 Author-Name: Hyungdo Ahn Author-X-Name-First: Hyungdo Author-X-Name-Last: Ahn Author-Name: Sanghack Lee Author-X-Name-First: Sanghack Author-X-Name-Last: Lee Title: Service Industries in the North-east Asian Countries: Strengthening the Competitiveness through Competition and Opening Abstract: This paper reviews the current status of service industries in the north-east Asian countries: China, Japan and Korea. The paper recognizes the need to increase the efficiency and competitiveness of service industries in the region. The paper then discusses Korean experience in deregulation and opening of service industries to foreign direct investment (FDI). Specifically, the paper examines FDI inflows into Korean service industries, identifying effects of recent regulatory changes in service industries in Korea. The paper derives policy implications regarding service industries in the region. Balanced view on service industries and broader approach to free trade agreement (FTA) are suggested. Journal: Global Economic Review Pages: 1-15 Issue: 1 Volume: 36 Year: 2007 Keywords: North-east Asia, service industry, efficiency, deregulation, foreign direct investment (FDI), free trade agreement (FTA), X-DOI: 10.1080/12265080701217108 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701217108 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 Author-Name: Bas Daamen Author-X-Name-First: Bas Author-X-Name-Last: Daamen Author-Name: Jean-Francois Hennart Author-X-Name-First: Jean-Francois Author-X-Name-Last: Hennart Author-Name: Dong-Jae Kim Author-X-Name-First: Dong-Jae Author-X-Name-Last: Kim Author-Name: Young-Ryeol Park Author-X-Name-First: Young-Ryeol Author-X-Name-Last: Park Title: Sources of and Responses to the Liability of Foreignness: The Case of Korean Companies in the Netherlands Abstract: This study aims to investigate the liability of foreignness, or the additional difficulties of foreign companies compared to their local competitors. Past studies have found fair amount of empirical evidences for the liability of foreignness. The present study attempts to take one step further by addressing two questions: what are the sources of such disadvantages and what are the solutions sought by the companies? To do this, we conducted a field study exploring the on-going dynamics of foreign multinationals. Specifically, we collected primary data through interviews with Dutch and Korean managers of Korean multinational companies. Through the interviews, we found evidence for the existence of such disadvantages. We identified four sources of the liability of foreignness—cross-border transfer, interaction with the local government, local discrimination, and interaction within the multinational—and two ways in which these companies actively reduced their exposure to the problem—localization and unfamiliarity reduction. This study should be useful to both practitioners and theorists in international business with an interest in disadvantages connected to the foreign status of a company. Journal: Global Economic Review Pages: 17-35 Issue: 1 Volume: 36 Year: 2007 Keywords: Liability of foreignness, Korean multinationals, the Netherlands, X-DOI: 10.1080/12265080701217165 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701217165 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:1:p:17-35 Template-Type: ReDIF-Article 1.0 Author-Name: Omar M. Al Nasser Author-X-Name-First: Omar M. Al Author-X-Name-Last: Nasser Title: The Determinants of the U.S. Foreign Direct Investment: Does the Region Matter? Abstract: This study seeks to explain the variation in U.S. foreign direct investment (FDI) in Latin America and Asia. The analysis focuses on 19 Latin American and Asian countries for the period of 1979-1999. The results show that the variation in the U.S. FDI can largely be attributed to the differences in fundamental economic and social factors such as market size, gross domestic product (GDP) growth, macro-economic stability, the degree of trade openness, and both school enrollment and infrastructure availability. Separating the data into two time periods reveals interesting results about the location decisions for U.S. investors. In addition, the results from the comparison between the two regions show that Latin American countries clearly attract U.S. FDI for different reasons than Asian countries. Journal: Global Economic Review Pages: 37-51 Issue: 1 Volume: 36 Year: 2007 Keywords: Foreign direct investment, U.S, Latin America, Asia, panel data analysis, X-DOI: 10.1080/12265080701217181 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701217181 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:1:p:37-51 Template-Type: ReDIF-Article 1.0 Author-Name: Fu-Lai Tony Yu Author-X-Name-First: Fu-Lai Tony Author-X-Name-Last: Yu Title: The Architect of Taiwan's Economic Miracle: Evolutionary Economics of Li Kuo-Ting Abstract: Taiwan has been referred to by the World Bank as one of the East Asia's “economic miracles”. Many quantitative models on Taiwan's economic growth have been conducted by neo-classical mainstream economists. However, none of them investigates in detail the thinking of those policy-makers who work behind the economic success of Taiwan. Li Kuo-Ting is generally regarded as the architect of Taiwan's economic “miracle”. In this paper, an evolutionary perspective has been used to understand the economic management of Li Kuo-Ting in particular and the learning government in Taiwan in general. It will be argued that a policy change is a matter of learning, experimenting, and a process of trial and error, involving subjective aspects such as the policy-makers' perception, vision and experiences, and objective factors such as environmental, geographical or international constraints. Furthermore, Taiwan has been able to succeed because its policy-makers are willing to learn and unlearn. Though the right policy has not always been adopted, Taiwan's policy-makers are willing to experiment with a new policy in a pragmatic way. Policies that did not work were either modified or abandoned. Policies that did work were adopted. This paper concludes that Taiwan's economic “miracle” has been the result of a long-term evolutionary process of entrepreneurial vision by the government, careful policy experimentation and market selection. Journal: Global Economic Review Pages: 53-67 Issue: 1 Volume: 36 Year: 2007 Keywords: Li Kuo-Ting, Taiwan, evolutionary economics, economic development, government policy, X-DOI: 10.1080/12265080701217249 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701217249 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:1:p:53-67 Template-Type: ReDIF-Article 1.0 Author-Name: Choon Yin Sam Author-X-Name-First: Choon Yin Author-X-Name-Last: Sam Title: Economic Management in Taiwan and Mainland China: Why and How They Have Been Politicized Abstract: This paper investigates the causes and consequences of politicized economic management in the cross strait. The first half of the paper briefly reviews the cross-strait political and economic environment. The passage of the anti-secession law by Mainland China in March 2005 marked a new high in the political tension in the cross strait. From the economic standpoint, cross-strait relation has registered a more positive outlook. But this is merely on the surface. As the second half of the paper shows, politicians from both sides are still exerting much influence on how firms are to conduct their business with their counterparts. Hence, economics are highly politicized. The result is destructive. Firms face a high degree of vulnerability and uncertainty in the conduct of their business because political tension makes it difficult for them to make economic decisions independent of politics. As long as political differences remain unresolved, it would not be easy for full economic integration between Taiwan and the Mainland. Military confrontations cannot be ruled out in spite of greater economic integration when future economic outlook between the two economies remains uncertain. Journal: Global Economic Review Pages: 69-87 Issue: 1 Volume: 36 Year: 2007 Keywords: China, Taiwan, international political economy, X-DOI: 10.1080/12265080701217389 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701217389 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:1:p:69-87 Template-Type: ReDIF-Article 1.0 Author-Name: Jarita Duasa Author-X-Name-First: Jarita Author-X-Name-Last: Duasa Title: Determinants of Malaysian Trade Balance: An ARDL Bound Testing Approach Abstract: This paper examines the short- and long-run relationships between trade balance, real exchange rates, income and money supply in the case of Malaysia. The inclusion of income and money variables in the study is purposely to examine the monetary and absorption approaches to the balance of payments beside the conventional approach of elasticity, using exchange rates. Using the bound testing approach to cointegration and error correction models, developed within an autoregressive distributed lag (ARDL) framework, we investigate whether a long-run equilibrium relationship exists between trade balance and the determinants. Additionally, we adopt an innovation accounting by simulating variance decompositions (VDC) and impulse response functions (IRF) for further inferences. Using this approach, we find evidence of a long-run relationship between trade balance and income and money supply variables but not between trade balance and real exchange rate. The findings also suggest that Marshall-Lerner condition does not hold in the long-run for Malaysia and for policy wise the Malaysian trade balance/balance of payments should be viewed from absorption and monetary approaches. Journal: Global Economic Review Pages: 89-102 Issue: 1 Volume: 36 Year: 2007 Keywords: Trade balance, cointegration, ARDL, variance decompositions, impulse response functions, X-DOI: 10.1080/12265080701217405 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701217405 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:1:p:89-102 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmad Zubaidi Baharumshah Author-X-Name-First: Ahmad Zubaidi Author-X-Name-Last: Baharumshah Author-Name: Raj Aggarwal Author-X-Name-First: Raj Author-X-Name-Last: Aggarwal Author-Name: Chan Tze Haw Author-X-Name-First: Chan Tze Author-X-Name-Last: Haw Title: East Asian Real Exchange Rates and PPP: New Evidence from Panel-data Tests Abstract: This paper empirically tests purchasing power parity (PPP) using panel unit root designed for heterogeneous panels. Monthly data of six East Asian countries (South Korea, Thailand, Indonesia, Malaysia, Singapore and the Philippines) were used to test the long-run PPP relationship. This study documents the fact that unlike the pre-crises period, mean reversion in real Asian exchange rates is a feature of the post-crises period in all six countries considered in this study. It turns out that the results found in this study based on an array of panel unit root tests appears to be invariant to the choice of the numeraire currency, namely the US and Japanese yen. Journal: Global Economic Review Pages: 103-119 Issue: 2 Volume: 36 Year: 2007 Keywords: Purchasing power parity (PPP), panel unit root tests, Asian financial crisis, X-DOI: 10.1080/12265080701374024 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701374024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:2:p:103-119 Template-Type: ReDIF-Article 1.0 Author-Name: Saibal Ghosh Author-X-Name-First: Saibal Author-X-Name-Last: Ghosh Title: Loan Loss Provisions, Earnings, Capital Management and Signalling: Evidence from Indian Banks Abstract: The debate on bank capital regulation has in recent years devoted specific attention to the role that bank loan loss provisions play as a part of the overall minimum capital regulatory framework. The paper examines this issue in the Indian context, exploring the available evidence about bank loan loss provisioning in the Indian context. Using data on Indian banks for 1997-2005, evidence is found in favour of both earnings and capital management by Indian banks. Journal: Global Economic Review Pages: 121-136 Issue: 2 Volume: 36 Year: 2007 Keywords: Loan loss provisions, income smoothing, capital management, signaling, banking, India, X-DOI: 10.1080/12265080701374040 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701374040 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:2:p:121-136 Template-Type: ReDIF-Article 1.0 Author-Name: Albert Wijeweera Author-X-Name-First: Albert Author-X-Name-Last: Wijeweera Author-Name: Stuart Mounter Author-X-Name-First: Stuart Author-X-Name-Last: Mounter Title: AVAR Analysis of the Impacts of Company Tax Rates on Foreign Direct Investment and other Macro-economic Variables in Australia Abstract: Taxation policy has been recognized as a main determinant of foreign direct investment (FDI). However, the effect of taxation policy on other key macro-economic variables of interest has received little attention in the literature. This paper seeks to establish the long-run effects of a change in the Australian company tax rate on inbound FDI and other Australian macro-economic variables using vector autoregression (VAR) analysis to account for the interrelatedness of the variables under consideration. Results indicate that FDI, real gross domestic product (GDP) and trade with the rest of the world are all responsive to a change in the company tax rate. Journal: Global Economic Review Pages: 137-145 Issue: 2 Volume: 36 Year: 2007 Keywords: FDI, company tax rate, VAR, Australia, X-DOI: 10.1080/12265080701374073 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701374073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:2:p:137-145 Template-Type: ReDIF-Article 1.0 Author-Name: Shaomin Li Author-X-Name-First: Shaomin Author-X-Name-Last: Li Author-Name: Anil Nair Author-X-Name-First: Anil Author-X-Name-Last: Nair Title: A Comparative Study of the Economic Reforms in China and India: What Can We Learn? Abstract: The last quarter of the twentieth century was characterized by economic reforms in many formerly state-dominated economies. Among them, the reform attempts by China and India have attracted increasing attention in the popular media and academic research. This paper contribute to this research by using institutional theory to analyse the reforms in China and India and develop a framework to explain how reforms evolve. This study contributes to the theoretical understanding of the dynamics of reform, helps policy-makers to formulate reform strategy, and international business executives to project the developmental trends in two of the world's largest emerging markets. Journal: Global Economic Review Pages: 147-166 Issue: 2 Volume: 36 Year: 2007 Keywords: China, India, economic reform, institutional change, X-DOI: 10.1080/12265080701374099 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701374099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:2:p:147-166 Template-Type: ReDIF-Article 1.0 Author-Name: George Emm. Halkos Author-X-Name-First: George Emm. Author-X-Name-Last: Halkos Author-Name: Nickolaos G. Tzeremes Author-X-Name-First: Nickolaos G. Author-X-Name-Last: Tzeremes Title: International Competitiveness in the ICT Industry: Evaluating the Performance of the Top 50 Companies Abstract: Given the importance of global competition in the information and communication technology (ICT) industry and its contribution to national economies, this paper examines the competitive structure of the global ICT market. By examining the effect of global strategies of the top 50 ICT multinationals, benchmarks, performances and key characteristics of multinational strategic behaviour in the ICT industry is established. The results indicate that there is higher rivalry among the competitors in communication and electronics/equipment segments. Additionally, the most efficient global strategies are adopted from the US and Japanese multinationals imposing a “policy gap” on corporate governance between US, Japan and the European countries. Journal: Global Economic Review Pages: 167-182 Issue: 2 Volume: 36 Year: 2007 Keywords: International competitiveness, ICT, market structure, multinational corporations, DEA, X-DOI: 10.1080/12265080701374115 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701374115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:2:p:167-182 Template-Type: ReDIF-Article 1.0 Author-Name: Jaime Alvarado Author-X-Name-First: Jaime Author-X-Name-Last: Alvarado Author-Name: Patrick Mendis Author-X-Name-First: Patrick Author-X-Name-Last: Mendis Title: New Multilateralism in Action for Peace: A Case Study of the US-led Operation Unified Assistance in the Asian Tsunami Disaster Abstract: In the aftermath of the Indian Ocean earthquake and tsunami in December 2004, the ensuing multinational relief, humanitarian, and rebuilding efforts of the Operation United Assistance (OUA) are new examples of international cooperation to sustain and rebuild Asian communities in the post-9/11 security environment. An analysis of the cooperative efforts in light of differing theoretical perspectives provides a forum for debate on the nature of cooperation in the international arena and the implications for ethnic and civil wars in Indonesia and Sri Lanka. Once described and explained by multiple theories, the relief operations can then be used to predict and perhaps even prescribe future international cooperation in natural disasters and conflict resolution in civil war environments. As a case study, this paper also examines international security strategies and the implications for economic prosperity and political stability in sovereign but weak nation states. Journal: Global Economic Review Pages: 183-192 Issue: 2 Volume: 36 Year: 2007 X-DOI: 10.1080/12265080701374180 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701374180 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:2:p:183-192 Template-Type: ReDIF-Article 1.0 Author-Name: Phillip J. Bryson Author-X-Name-First: Phillip J. Author-X-Name-Last: Bryson Author-Name: Keren Sun Author-X-Name-First: Keren Author-X-Name-Last: Sun Title: Provincial Development in China: Lessons from EU Regional Policy Experience Abstract: This article evaluates and compares regional development in the Chinese provinces and in the regions of the European Union (EU) countries. Development efforts in southern Italy, northeast England and eastern Germany are reviewed along with EU, Community-wide regional development programmes. Equity concerns suggest promotion of regional policy, but the pursuit of maximum national economic growth would avoid it, since it sacrifices some economic growth. The impact of foreign direct investment (FDI) and domestic investments on individual Chinese provinces is compared with their impact in Europe. There is an implicit contrast between public sector regional development programs and more effective private foreign direct investments. Journal: Global Economic Review Pages: 193-215 Issue: 3 Volume: 36 Year: 2007 Keywords: Regional economic development, European Union, FDI, economic growth, regional development programs, lagging regions, X-DOI: 10.1080/12265080701561935 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701561935 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:3:p:193-215 Template-Type: ReDIF-Article 1.0 Author-Name: Sunghee Choi Author-X-Name-First: Sunghee Author-X-Name-Last: Choi Author-Name: Arthur T. Denzau Author-X-Name-First: Arthur T. Author-X-Name-Last: Denzau Title: Some Methodological Issues on Estimating Foreign Exchange Exposure of US Multinational Firms: Evidence from the Asian Crisis Abstract: This article asks whether sample specification of firm, period, and exchange rate matters in estimating foreign exchange exposure of US multinational firms. By sampling US firms that had Asian sales and assets from 1996 to 1998, we find that the firms' returns are more likely to be significantly exposed to the Asian-oriented exchange rate changes for the Asian crisis, when the exchange rate changes were unexpectedly sizable. Also, by examining firms' exposure in the share of Asian sales and assets, we find that the firms are more exposed as their operations are more involved in the Asian region. Journal: Global Economic Review Pages: 217-227 Issue: 3 Volume: 36 Year: 2007 Keywords: Foreign exchange exposure, multinational firms, Asian crisis, X-DOI: 10.1080/12265080701561943 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701561943 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:3:p:217-227 Template-Type: ReDIF-Article 1.0 Author-Name: Jangryoul Kim Author-X-Name-First: Jangryoul Author-X-Name-Last: Kim Author-Name: Gieyoung Lim Author-X-Name-First: Gieyoung Author-X-Name-Last: Lim Title: The Non-equivalence Revisited: Staggered Price and Wage Contracts Abstract: Staggered wage-setting and price-setting have frequently been used to construct business cycle models that can replicate long-lasting real effects of monetary shocks. We examine how the two seemingly equivalent sources of nominal rigidities compare in generating persistence in real output following monetary expansion. We show that staggered wage-setting is in general better able to generate persistence, because it can lower the procyclicality of marginal cost considerably more than staggered price-setting does. Journal: Global Economic Review Pages: 229-243 Issue: 3 Volume: 36 Year: 2007 Keywords: nominal rigidities, staggered wage-setting, staggered price-setting, persistence in output, X-DOI: 10.1080/12265080701561968 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701561968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:3:p:229-243 Template-Type: ReDIF-Article 1.0 Author-Name: Klimis Vogiatzoglou Author-X-Name-First: Klimis Author-X-Name-Last: Vogiatzoglou Title: Vertical Specialization and New Determinants of FDI: Evidence from South and East Asia Abstract: By estimating a dynamic panel-gravity model of bilateral foreign direcr investment (FDI), this article investigates the location determinants of inward FDI in South and East Asia and assesses their short-run and long-run effects. The econometric results highlight the importance of the vertical specialization-, trade-, and international integration-related location factors. The gravity-specific variables are also found to be significant location determinants, whilst some of the traditional determinants are found to have either a weak or statistically insignificant effect (except host-market size) on inward FDI in South and East Asia. Journal: Global Economic Review Pages: 245-266 Issue: 3 Volume: 36 Year: 2007 Keywords: Foreign direct investment (FDI), vertical specialization links, location determinants, South &East Asia, international economic integration, X-DOI: 10.1080/12265080701561984 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701561984 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:3:p:245-266 Template-Type: ReDIF-Article 1.0 Author-Name: Choon Yin Sam Author-X-Name-First: Choon Yin Author-X-Name-Last: Sam Title: Corporate Governance Reforms in the Post-1997 Asian Crisis: Is There Really a Convergence to the Anglo-American Model? Abstract: Following the 1997-Asian crisis, a number of crisis-hit countries were committed to the rapid transformation of the corporate governance system to one that is modeled after the Anglo-American system. This, as the article argues, is based on a false premise, that what may have worked in the United States/United Kingdom can also be applied in East Asia. In this regard, the convergence at the firm level is seen to be more in “form” rather than in “substance”. This study assesses Singapore's corporate system in terms of its recognition of the merits of the Western model. It then details the corporate governance style of Temasek Holdings Limited (THL), a state- owned enterprise (SOE) in charge of monitoring government investments in companies. The choice of THL as a case study is based on the premise that THL operates very much like a private sector corporation. In addition, it has the ability to influence the standard of corporate governance of Singaporean SOEs. Because the SOEs are large players in their respective industries, the corporate governance of SOEs establish the standards and expectations for monitoring in non-SOEs. There are indications to suggest that the THL has taken into consideration certain aspects of corporate governance practices that may not necessarily be in line with those advocated by the Singapore government. The article argues that selective adaptation such as the style adopted in the THL more realistically portrays the corporate governance practices of East Asian corporations. Journal: Global Economic Review Pages: 267-285 Issue: 3 Volume: 36 Year: 2007 Keywords: corporate governance, Asian crisis, convergence, Temasek Holdings Limited, X-DOI: 10.1080/12265080701562008 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701562008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:3:p:267-285 Template-Type: ReDIF-Article 1.0 Author-Name: Amit Ghosh Author-X-Name-First: Amit Author-X-Name-Last: Ghosh Author-Name: Ramkishen S. Rajan Author-X-Name-First: Ramkishen S. Author-X-Name-Last: Rajan Title: A Comparative Analysis of Export Price Pass-through in Three Open Asian Economies: Korea, Singapore and Thailand Abstract: The degree of exchange rate pass-through is of paramount importance to small and open economies as it has a direct impact on domestic inflation as well as the effectiveness of exchange rate as an adjustment tool. High exchange rate pass-through (ERPT) is often cited as a reason for a “fear of floating”. This article analyzes the degree of ERPT into the export prices of three Asian economies—Korea, Thailand and Singapore for the period 1980: Q1-2006: Q4 using both US dollar bilateral rates as well as nominal effective exchange rates. The study also examines whether there are asymmetries in ERPT between exchange rate appreciation and depreciation. Journal: Global Economic Review Pages: 287-299 Issue: 3 Volume: 36 Year: 2007 Keywords: Asia, exchange rate, export prices, inflation, pass-through (ERPT), nominal effective exchange rate (NEER), pricing-to-market (PTM), X-DOI: 10.1080/12265080701562016 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701562016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:3:p:287-299 Template-Type: ReDIF-Article 1.0 Author-Name: Jeong-Dong Lee Author-X-Name-First: Jeong-Dong Author-X-Name-Last: Lee Author-Name: Almas Heshmati Author-X-Name-First: Almas Author-X-Name-Last: Heshmati Title: Manufacturing Sector Productivity Growth in the Asia Pacific Region Abstract: Journal: Global Economic Review Pages: 301-303 Issue: 4 Volume: 36 Year: 2007 X-DOI: 10.1080/12265080701694645 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701694645 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:4:p:301-303 Template-Type: ReDIF-Article 1.0 Author-Name: Elsadig Musa Ahmed Author-X-Name-First: Elsadig Musa Author-X-Name-Last: Ahmed Title: The Impact of Biochemical Oxygen Demand Emissions on Malaysia's Manufacturing Productivity Growth Abstract: This study examines the impact of organic water pollutant biochemical oxygen demand (BOD) emissions on Malaysia's manufacturing sector productivity growth and the factors that determine its growth. Exclusion of externalities such as BOD pollutant emissions created a deficiency in growth accounting models as those BOD pollutant emissions were internalized in order to calculate the green total factor productivity (TFP). The results show a slowdown in the contribution of TFP growth and a negative impact of BOD pollutant emissions produced by the sector on productivity growth in general and TFP growth in particular in comparison with other productivity indictors of the sector. Journal: Global Economic Review Pages: 305-319 Issue: 4 Volume: 36 Year: 2007 Keywords: Malaysia, biochemical oxygen demand (BOD), economic impact, manufacturing, green total factor productivity (TFP), X-DOI: 10.1080/12265080701694439 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701694439 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:4:p:305-319 Template-Type: ReDIF-Article 1.0 Author-Name: Mohamad Ikhsan Author-X-Name-First: Mohamad Author-X-Name-Last: Ikhsan Title: Total Factor Productivity Growth in Indonesian Manufacturing: A Stochastic Frontier Approach Abstract: This paper examines the patterns of total factor productivity (TFP) growth and technical efficiency changes in Indonesia's manufacturing industries over the period 1988-2000. A stochastic frontier production has been employed to decompose the sources of TFP growth into technical progress, technical efficiency change and the effects of scale economies. The analysis takes into consideration the impact of the economic crisis in 1997. Journal: Global Economic Review Pages: 321-342 Issue: 4 Volume: 36 Year: 2007 Keywords: Indonesian manufacturing, total factor productivity, stochastic frontier analysis, technical efficiency, X-DOI: 10.1080/12265080701694488 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701694488 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:4:p:321-342 Template-Type: ReDIF-Article 1.0 Author-Name: Keunjae Lee Author-X-Name-First: Keunjae Author-X-Name-Last: Lee Author-Name: Sang-Mok Kang Author-X-Name-First: Sang-Mok Author-X-Name-Last: Kang Title: Innovation Types and Productivity Growth: Evidence from Korean Manufacturing Firms Abstract: The purpose of this paper is to investigate productivity growth according to three types of innovation: product innovation, product improvement, and process innovation, using firm-level data from the Korea Innovation Survey 2002 about Korean manufacturing companies. This study is conducted in two steps. The first step measures firm-level Malmquist productivity index by data envelopment analysis (DEA). The second step estimates econometric regression models by weighted least square utilizing the productivity index as a dependent variable and each of the innovation types and other characteristics of firms as independent variables. The empirical results partly support the idea that the types of innovation matter in productivity growth. Specifically, process innovation may result in higher productivity performance than product innovation in the short run. This result stems from the difference in efficiency growth when productivity growth is decomposed into two components: efficiency growth and technical growth. That is, product innovation by definition involves product development and radical innovation and so, it can deteriorate efficiency growth relative to other types of innovation due to the process of product development and the adjustments that are needed to new innovations whereas process innovation is implemented to reduce defects, lead time, costs and other factors, and as such is very efficiency orientated. Consequently it helps improve efficiency growth. Journal: Global Economic Review Pages: 343-359 Issue: 4 Volume: 36 Year: 2007 Keywords: Productivity growth, innovation types, product innovation, process innovation, product improvement, X-DOI: 10.1080/12265080701694512 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701694512 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:4:p:343-359 Template-Type: ReDIF-Article 1.0 Author-Name: Hailin Liao Author-X-Name-First: Hailin Author-X-Name-Last: Liao Author-Name: Bin Wang Author-X-Name-First: Bin Author-X-Name-Last: Wang Author-Name: Tom Weyman-Jones Author-X-Name-First: Tom Author-X-Name-Last: Weyman-Jones Title: Neural Network Based Models for Efficiency Frontier Analysis: An Application to East Asian Economies' Growth Decomposition Abstract: There has been a long tradition in business and economics to use frontier analysis to assess a production unit's performance. The first attempt utilized the data envelopment analysis (DEA) which is based on a piecewise linear and mathematical programming approach, whilst the other employed the parametric approach to estimate the stochastic frontier function. Both approaches have their advantages as well as limitations. This paper sets out to use an alternative approach, i.e. artificial neural networks (ANNs) for measuring efficiency and productivity growth for seven East Asian economies at manufacturing level, for the period 1963 to 1998, and the relevant comparisons are carried out between DEA and ANN, and stochastic frontier analysis (SFA) and ANN in order to test the ability of ANNs to assess the performance of production units. The results suggest that ANNs are a promising alternative to traditional approaches, to approximate production functions more accurately and measure efficiency and productivity under non-linear contexts, with minimum assumptions. Journal: Global Economic Review Pages: 361-384 Issue: 4 Volume: 36 Year: 2007 Keywords: Total factor productivity, neural networks, stochastic frontier analysis, DEA, East Asian economies, X-DOI: 10.1080/12265080701694561 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701694561 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:4:p:361-384 Template-Type: ReDIF-Article 1.0 Author-Name: Enrico Tanuwidjaja Author-X-Name-First: Enrico Author-X-Name-Last: Tanuwidjaja Author-Name: Shandre Thangavelu Author-X-Name-First: Shandre Author-X-Name-Last: Thangavelu Title: Structural Change and Productivity Growth in the Japanese Manufacturing Industry Abstract: This paper analyses the relationship between structural changes and productivity performances of the manufacturing sector in the Japanese economy, the primary driver of productivity growth in Japan that absorbs a large fraction of the labour force. Using the shift-share analysis, we decompose the total labour productivity growth in Japan into two components: labour productivity growth and structural change across in the manufacturing sector to assess the interaction between them. The analysis provides greater detail on structural changes by classifying the manufacturing industries into four sectors according to the degree of technological sophistication: low-technology, medium-low-technology, medium-high-technology, and high-technology. We found that the superior productivity performance in the Japanese economy takes place most notably in the medium-high-technology sector, as results of fundamental structural change occurred in the late 1990s. This has brought a shift in Japan's comparative advantage from lower-technology to higher-technology manufacturing. Finally, some implications will be discussed with respect to this empirical finding. Journal: Global Economic Review Pages: 385-405 Issue: 4 Volume: 36 Year: 2007 Keywords: Japan, structural changes, productivity growth, manufacturing, shift-share, X-DOI: 10.1080/12265080701694603 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080701694603 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:36:y:2007:i:4:p:385-405 Template-Type: ReDIF-Article 1.0 Author-Name: Junghoon Lee Author-X-Name-First: Junghoon Author-X-Name-Last: Lee Author-Name: Chihoon Lee Author-X-Name-First: Chihoon Author-X-Name-Last: Lee Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Title: Governance Inhibitors in IT Strategy and Management: An Empirical Study of Korean Enterprises Abstract: In recent years, increasing numbers of businesses worldwide have standardized their governance practices in an attempt to improve control over their corporate assets. The term “IT Governance (ITG)” indicates businesses' growing need to find a balance between the conformance (or conformity to regulatory standards) and performance goals mandated by their boards. Many leading organizations have turned to ITG to pursue gains in efficiency, accountability, and compliance; they have not, however, succeeded in implementing coherent information technology (IT) schemes on account of a number of challenging issues. Korean companies in particular face an urgent need to formulate workable modes of ITG, as the disproportion between Korea's extremely high IT capability and poor ITG practices is especially marked. Despite academics and practitioners' growing interest in ITG, few studies to date have characterized the practical inhibitors frustrating the implementation of effective ITG. This paper, therefore, aims to examine empirically how inhibiting features associated with ITG affect the maturity level of IT activities. A survey of 96 leading enterprises in Korea, who generally saw ITG as an innovative enabler but lacked a good ITG structure themselves, showed a strong relationship at a causal level between an enterprise's “lack of IT principles and policies” and its ITG success. Journal: Global Economic Review Pages: 1-22 Issue: 1 Volume: 37 Year: 2008 Keywords: IT Governance, inhibitors, causal relationship, IT Governance success, linear regression analysis, X-DOI: 10.1080/12265080801911899 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801911899 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Inha Oh Author-X-Name-First: Inha Author-X-Name-Last: Oh Author-Name: Jeong-Dong Lee Author-X-Name-First: Jeong-Dong Author-X-Name-Last: Lee Author-Name: Almas Heshmati Author-X-Name-First: Almas Author-X-Name-Last: Heshmati Title: Total Factor Productivity in Korean Manufacturing Industries Abstract: In this study, parametric and non-parametric methods are employed to measure the total factor productivity (TFP) growth in the Korean manufacturing industry from 1993 to 2003. The analysis period contains both periods before and after the Asian financial crisis. The TFP growth rate is decomposed into different components. Also different elasticities are reported. By classifying the results by period and classifying a number of time invariant firm characteristics, such as sector, size, and location of firms, we observe systematic heterogeneity for each characteristic. We discuss the underlying causal factors. The results from a non-parametric approach are also compared with those of a parametric approach. Journal: Global Economic Review Pages: 23-50 Issue: 1 Volume: 37 Year: 2008 Keywords: Time trend, general index, production function, total factor productivity, chained multilateral index, X-DOI: 10.1080/12265080801911907 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801911907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:23-50 Template-Type: ReDIF-Article 1.0 Author-Name: Jaleel Ahmad Author-X-Name-First: Jaleel Author-X-Name-Last: Ahmad Title: Why are there so many Preferential Trade Areas? A Political Economy Perspective Abstract: This paper investigates the causes of the phenomenal growth of preferential trade areas (PTAs) in the world economy during recent decades. A political economy analysis suggests that the attraction of PTAs may be due, in large parts, to (a) a preference for manufacturing industry, rather than merely the gross domestic product (GDP), and (b) the prospect of greater foreign direct investments, in countries forming or joining a PTA. Journal: Global Economic Review Pages: 51-62 Issue: 1 Volume: 37 Year: 2008 X-DOI: 10.1080/12265080801911915 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801911915 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:51-62 Template-Type: ReDIF-Article 1.0 Author-Name: Idan Moskovitch Author-X-Name-First: Idan Author-X-Name-Last: Moskovitch Author-Name: Dong-Jae Kim Author-X-Name-First: Dong-Jae Author-X-Name-Last: Kim Title: Building an Entrepreneurial Economy: The Case of Korea 1998-2005 Abstract: This paper examines how entrepreneurship takes place in an economy where traditional structural settings are not favorable to entrepreneurial activities. Specifically, it investigates the case of Korea during 1998-2005, when the national economy experienced fairly dramatic upsurge of start-ups and related changes. The paper argues that a national economy may achieve significant structural changes when diverse conditions are in place, including not only intentional efforts, e.g. governmental policies, but factors of serendipity triggering potential disruption to the economy, e.g. an external shock such as the Asian financial crisis in 1997. During the observation period, Korea went through notable changes in terms of entrepreneurship. Although limited, the Korean economy looks at possibilities of having small and medium-sized companies co-evolve with large ones such as chaebols. Journal: Global Economic Review Pages: 63-73 Issue: 1 Volume: 37 Year: 2008 Keywords: Entrepreneurship, start-up, Korea, X-DOI: 10.1080/12265080801911923 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801911923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:63-73 Template-Type: ReDIF-Article 1.0 Author-Name: Gwanghoon Lee Author-X-Name-First: Gwanghoon Author-X-Name-Last: Lee Title: Panel Cointegration Estimation of International Knowledge Spillovers Abstract: This paper estimates the effect of international knowledge spillovers through import on a country's productivity, using panel data from 13 Organizations for Economic Cooperation and Development (OECD) countries during 1981-1999 and two alternative estimation methods for the panel cointegration model. The results confirm the robust effect of international knowledge spillovers through the flows of intermediate goods import. The magnitude of the effect is much greater in the non-G7 countries than in the G7 countries according to the fully modified ordinary least squares (OLS) estimation. By contrast, domestic knowledge capital stocks help enhance a country's productivity only in the G7 countries. Journal: Global Economic Review Pages: 75-84 Issue: 1 Volume: 37 Year: 2008 Keywords: Intermediate goods, imports, knowledge spillovers, panel cointegration, X-DOI: 10.1080/12265080801911931 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801911931 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:75-84 Template-Type: ReDIF-Article 1.0 Author-Name: Younkyoo Kim Author-X-Name-First: Younkyoo Author-X-Name-Last: Kim Author-Name: Gu-Ho Eom Author-X-Name-First: Gu-Ho Author-X-Name-Last: Eom Title: The Geopolitics of Caspian Oil: Rivalries of the US, Russia, and Turkey in the South Caucasus Abstract: This study attempts to discern the overall direction of regional reorganization in Eurasia through looking at regional cooperation and the strategies and roles of powers in the South Caucasus from a sub-regional point of view. This study will attempt to look at sub-regional level cooperation of the countries in the South Caucasus region and the strategies of powers in the region, through the rivalry and difficulties between the United States, Turkey and Russia brought about through their construction of oil pipeline routes in differing directions to transport oil from Azerbaijan and Kazakhstan to the world market, as well as the national strategies of the innerregional countries that are choosing this option. Journal: Global Economic Review Pages: 85-106 Issue: 1 Volume: 37 Year: 2008 Keywords: Caspian energy, Eurasia, South Caucasus, Pipelines, international oil, X-DOI: 10.1080/12265080801911956 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801911956 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:85-106 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Jose Arcas Author-X-Name-First: Maria Jose Author-X-Name-Last: Arcas Author-Name: Patricia Bachiller Author-X-Name-First: Patricia Author-X-Name-Last: Bachiller Title: Performance and Capital Structure of Privatized Firms in Europe Abstract: The objective of this paper is to analyze whether there are differences in performance between private firms and recently privatized firms in the European Union, as well as to determine whether ownership (state-owned versus private) and regulation affect capital structure. Focusing on economic reasons that justify privatizations, we analyze whether there are differences between recently privatized state-owned enterprises (SOEs) and private firms in their profitability, leverage and efficiency during the period 1999-2002. Also, we analyze the determinants of the capital structure of these firms. Contrary to previous studies, our results show that privatized firms are not less efficient than firms with private ownership. Journal: Global Economic Review Pages: 107-123 Issue: 1 Volume: 37 Year: 2008 Keywords: Privatization, efficiency, capital structure, regression, Wilcoxon test, X-DOI: 10.1080/12265080801911980 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801911980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:107-123 Template-Type: ReDIF-Article 1.0 Author-Name: Tuck Cheong Tang Author-X-Name-First: Tuck Cheong Author-X-Name-Last: Tang Title: Determinants of Malaysian Trade Balance: An ARDL Bound Testing Approach - A Commentary Abstract: This commentary is served as an additional light both from theoretical and empirical perspectives, on the study by Duasa (Global Economic Review, 2007, 36, pp. 89-102) who examined the short- and long-run relationships between trade balance, real exchange rates, income, and money supply for Malaysia. The final words I would like to make are that the results documented by Duasa require further investigation before it can be generalized. Journal: Global Economic Review Pages: 125-133 Issue: 1 Volume: 37 Year: 2008 Keywords: Trade balance, open macro economy equilibrium, Malaysia, X-DOI: 10.1080/12265080801912152 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080801912152 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:1:p:125-133 Template-Type: ReDIF-Article 1.0 Author-Name: Yoon-Zi Kim Author-X-Name-First: Yoon-Zi Author-X-Name-Last: Kim Author-Name: Keun Lee Author-X-Name-First: Keun Author-X-Name-Last: Lee Title: Sectoral Innovation System and a Technological Catch-up: The Case of the Capital Goods Industry in Korea Abstract: This paper deals with the question of why making a catch-up is even more difficult in capital goods industries that are usually led by small or middle-sized companies. It relies upon the sectoral systems of innovation as a theoretical framework for analysis. From the findings, the paper has identified three sources of difficulties in the catch-up of the capital goods industry, particularly in machine tools. First, while small firms in the capital goods industry are usually specialized suppliers to big final goods assembly firms in the consumer goods industry or other industries, and thus the tacit knowledge accumulated from the interface between the producer and the customer firms is very important, a serious difficulty lies in the fact that local client firms are reluctant to use locally made capital goods due to their poor quality and low precision level. Second, while a successful catch-up first requires the ability to produce goods of better quality and lower prices than those produced by incumbent firms from advanced countries, a typical difficulty arises because incumbent foreign firms often react by charging predatory prices upon news of the local development of capital goods by latecomers. Third, if the catch-up firms overcome this barrier, then the next strategy used by incumbent firms is to charge latecomers with legal actions for patent violations. Despite these intrinsic difficulties, the Korean economy has achieved a very slow but gradual catch-up in the capital goods industry. The paper has attributed such achievement to several factors, including the strenuous efforts of the government, niche markets in general-purpose machine tools and emerging economies, and finally, the increasing introduction and adoption of information technology (IT) or digital technologies in machine tools. Furthermore, the three sources of barriers to catch-up imply that any latecomer firms that wish to record a successful catch-up should have these barriers in mind from the beginning of the road towards catch-up. We observe that a successful catch-up requires the ability to produce goods of better quality and lower prices than those produced by incumbent firms from advanced countries. After the initial success, they should also be well prepared against eventual or possible attacks by the incumbent firms in the forms of predatory pricing and intellectual property rights (IPR) charges. Journal: Global Economic Review Pages: 135-155 Issue: 2 Volume: 37 Year: 2008 Keywords: Machine tools industry, catch-up, sectoral systems of innovation, X-DOI: 10.1080/12265080802021151 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021151 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:135-155 Template-Type: ReDIF-Article 1.0 Author-Name: Hee-Ryang Ra Author-X-Name-First: Hee-Ryang Author-X-Name-Last: Ra Title: Modeling the Dollarization: A Case Study for Cambodia, Laos, and Vietnam Abstract: We model the dollarization of three transitional economies in south-east Asia: Cambodia, Laos, and Vietnam which have been experiencing the transition and reform process of the economy for the time period 1992-2007. Based on Rojas-Suarez (IMF Working Paper WP/92/33, 1992) work, we examine whether the holdings of US dollars depend on the effect of the expected rate of depreciation in market exchange rates as expected by the model. Also, we examine whether the effects are proportional to the degree of the dollarization of the economy. The empirical results present that there are positive effects (expected) of the expected rate of depreciation in market exchange rates on the holdings of US dollars. The coefficients are statistically significant only for Cambodia and Laos, not for Vietnam. The effect is strongest for Cambodia, and this may reflect the fact that Cambodia's dollarization is stronger than those of Laos and Vietnam. Journal: Global Economic Review Pages: 157-169 Issue: 2 Volume: 37 Year: 2008 Keywords: Dollarization, foreign currency deposits, expected rate of depreciation in market exchange rates, Cambodia, Laos, Vietnam, X-DOI: 10.1080/12265080802021177 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:157-169 Template-Type: ReDIF-Article 1.0 Author-Name: Alice Ouyang Author-X-Name-First: Alice Author-X-Name-Last: Ouyang Author-Name: Ramkishen Rajan Author-X-Name-First: Ramkishen Author-X-Name-Last: Rajan Author-Name: Tom Willett Author-X-Name-First: Tom Author-X-Name-Last: Willett Title: Managing the Monetary Consequences of Reserve Accumulation in Emerging Asia Abstract: The huge increase in international reserve holdings by Asian countries since the 1997 crisis has been one of the most important recent developments on the international financial scene. These buildups have contributed substantially to concerns about the creation of excessive global liquidity. How justified these concerns are depends heavily on the extent to which the reserve accumulating countries have been able to sterilize the effects on their domestic monetary aggregates. We use a unified theoretical framework to undertake dynamic estimations of the magnitude of sterilization and offset coefficients (which measure the degree of capital mobility) for a large set of Asian economies. We find that despite substantial capital mobility there has been a high degree of effective sterilization to date. Journal: Global Economic Review Pages: 171-199 Issue: 2 Volume: 37 Year: 2008 Keywords: Asia, balance of payments function, capital mobility, monetary reaction function, reserves, sterilization, X-DOI: 10.1080/12265080802021185 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021185 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:171-199 Template-Type: ReDIF-Article 1.0 Author-Name: M. Shabri Abd. Majid Author-X-Name-First: M. Author-X-Name-Last: Shabri Abd. Majid Author-Name: Ahamed Kameel Mydin Meera Author-X-Name-First: Ahamed Author-X-Name-Last: Kameel Mydin Meera Author-Name: Mohd. Azmi Omar Author-X-Name-First: Mohd. Author-X-Name-Last: Azmi Omar Title: Interdependence of ASEAN-5 Stock Markets from the US and Japan Abstract: This study empirically examines market integration among five selected ASEAN (Association of South-east Asian Nations) emerging markets (i.e. Malaysia, Thailand, Indonesia, the Philippines, and Singapore) and their interdependencies from the US and Japan based on a two-step estimation, cointegration and Generalized Method of Moments (GMM). Closing daily stock indices starting from 1 January 1988 to 31 December 2006 are used. The study reveals that the ASEAN stock markets are going towards a greater integration either among themselves or with the US and Japan, particularly in the post-1997 financial turmoil. This implies that the long-run diversification benefits that can be gained by investors across the ASEAN markets tend to diminish. As for the long run causal relations between ASEAN stock markets with the US and Japan, the study discovers that Indonesia was relatively independent of both the US and Japan; Malaysia was more dependent on Japan rather than the US; Thailand was relatively independent of the US, but to some extent dependent on Japan; the Philippines is more affected by the US than Japan; and the US and Japan have bidirectional Granger causalities with Singapore. Journal: Global Economic Review Pages: 201-225 Issue: 2 Volume: 37 Year: 2008 Keywords: Stock market integration, cointegration, Generalized Method of Moments (GMM), diversification benefit, ASEAN-5, X-DOI: 10.1080/12265080802021201 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021201 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:201-225 Template-Type: ReDIF-Article 1.0 Author-Name: Saibal Ghosh Author-X-Name-First: Saibal Author-X-Name-Last: Ghosh Title: Regulatory Pressure, Market Discipline, and Bank Spreads in India: An Empirical Exploration Abstract: Employing data on commercial banks for 1992 to 2006, the paper examines the factors influencing bank spreads in India. The findings indicate that variations in bank size, composition of loan portfolio and bank liquidity are important determinants of bank margins. Second, the evidence is strongly supportive of the relative market power hypothesis. Finally, the evidence reveals that state-owned, de novo private and old private banks exhibit lower spreads as compared to their foreign counterparts. The analysis concludes with the policy implications of the aforesaid findings. Journal: Global Economic Review Pages: 227-247 Issue: 2 Volume: 37 Year: 2008 Keywords: Spreads, banking, regulatory pressure, relative market power, India, X-DOI: 10.1080/12265080802021227 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021227 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:227-247 Template-Type: ReDIF-Article 1.0 Author-Name: Philippe De Lombaerde Author-X-Name-First: Philippe Author-X-Name-Last: De Lombaerde Title: The Paradoxes of Thailand's Pre-crisis Export Performance Abstract: Starting from the observation that Thailand succeeded in developing its exports in a spectacular way in the decades preceding the 1997 financial crisis, the author points to a number of apparent paradoxes that become apparent when looking at Thai trade policies in detail. For example, Thai trade policy was characterized by an anti-export bias, the causal effect of inward foreign direct investment (FDI) on exports could not clearly be demonstrated, and the effects of discriminatory tariff reductions were apparently very poor. Elements of an explanation are suggested. Journal: Global Economic Review Pages: 249-264 Issue: 2 Volume: 37 Year: 2008 Keywords: Thailand, trade policy, tariffs, exports, foreign direct investment (FDI), financial crisis, ASEAN, X-DOI: 10.1080/12265080802021235 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021235 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:249-264 Template-Type: ReDIF-Article 1.0 Author-Name: Lutao Ning Author-X-Name-First: Lutao Author-X-Name-Last: Ning Title: State-led Catching up Strategies and Inherited Conflicts in Developing the ICT Industry: Behind the US-East Asia Semiconductor Disputes Abstract: Moving from labour to some capital and knowledge intensive sectors, East Asian countries have actively pursued strategic industrial policies and successfully promoted targeted sectors. However, their growth in high tech sectors challenged the US leadership and the World Trade Organization (WTO)-supported neo-liberal development “wisdom”. Tensions over trade and technology issues eventually exploded into fierce policy conflicts. This study explores the role of the state in a single information and communication technology (ICT) sector, the semiconductor industry, over the course of its evolution in Japan, Korea, Taiwan and China. It is hoped to tackle the issues surrounding the conflicts between the Western economic orthodoxy and East Asian development policies through explaining the ICT development pathway of these countries. The finding shows that the international frictions in both ICT trade and technology were inevitable and reflect the divergence of development visions held by latecomers and developed countries. Journal: Global Economic Review Pages: 265-292 Issue: 2 Volume: 37 Year: 2008 Keywords: Trade disputes, semiconductors, industrial strategies, China, East Asia, X-DOI: 10.1080/12265080802021243 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021243 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:265-292 Template-Type: ReDIF-Article 1.0 Author-Name: Dilip Das Author-X-Name-First: Dilip Author-X-Name-Last: Das Title: A Kiss of Life for the Withering Doha Round of the Multilateral Trade Negotiations? Abstract: Notwithstanding the gallant intensions, the Doha Round of multilateral trade negotiations (MTNs) proved to be egregiously problem-prone. It went down in the history of multilateral trade as the first round to be suspended. Potsdam was the final link in this chain of breakdowns. While the G-8 leaders supported the DDA, their trade delegations did not seem to abide by the public pronouncements of their leaders. This article delves into the anatomy of this failure and points toward the salient factors that led to it. There is an imperious need for resuscitating the Doha Round and for the key players to be flexible and take some decisive steps forward. The round is too important for the community of trading economies to be allowed to collapse. Revival is a possible and credible objective. A two-stage revival process is suggested in this article. Journal: Global Economic Review Pages: 293-310 Issue: 2 Volume: 37 Year: 2008 Keywords: Doha Round, Doha Development Agenda, multilateral trade negotiations (MTNs), failure, revival, X-DOI: 10.1080/12265080802021250 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802021250 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:2:p:293-310 Template-Type: ReDIF-Article 1.0 Author-Name: Hee-Ryang Ra Author-X-Name-First: Hee-Ryang Author-X-Name-Last: Ra Title: Financial Market Volatility and International Reserve Holding Behaviour: A Case Study for Korea, Indonesia, the Philippines, and Thailand Abstract: The effects of financial market volatility on the international reserve holding behaviour of four Asian countries that experienced the financial crisis in 1997—Korea, Indonesia, the Philippines, and Thailand are investigated. The financial market volatility is modelled and the effect on reserve dynamics, reserve accumulation, and reserve volatility is estimated. Estimations are taken for two periods—pre- and post-crisis—and the structural break test is performed to examine the change in the effects on reserve holding behaviour. The empirical results, in general, support the evidence for the structural change in the effects on reserve holding behaviour after the crisis. This would be one of the evidences of the precautionary motive for reserve holdings after the crisis. Journal: Global Economic Review Pages: 311-332 Issue: 3 Volume: 37 Year: 2008 Keywords: Precautionary motive international reserve holdings, international reserve dynamics, international reserve accumulation, international reserve volatility, financial market volatility, GARCH model, X-DOI: 10.1080/12265080802273299 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802273299 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:3:p:311-332 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-X-Name-First: Yu Author-X-Name-Last: Hsing Title: Test of the Response of the Overnight Rate to the Real Exchange Rate: The Case of Korea, Hong Kong, and Singapore Abstract: For Korea, the overnight rate responds positively to the inflation rate, the output gap, the lagged real exchange rate, and the lagged overnight rate and negatively to the current real exchange rate. For Hong Kong, the overnight rate reacts positively to the inflation rate and the lagged overnight rate and does not react to other variables. For Singapore, the overnight rate is affected positively by the output gap and the lagged overnight rate and is not influenced by other variables. Hence, interest rate rules for some industrialized countries may not apply to Korea, Hong Kong, and Singapore. Journal: Global Economic Review Pages: 333-339 Issue: 3 Volume: 37 Year: 2008 Keywords: Interest rate or monetary policy rule, inflation rate, output gap, exchange rate, partial adjustment process, X-DOI: 10.1080/12265080802273307 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802273307 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:3:p:333-339 Template-Type: ReDIF-Article 1.0 Author-Name: Mahinda Siriwardana Author-X-Name-First: Mahinda Author-X-Name-Last: Siriwardana Author-Name: Jinmei Yang Author-X-Name-First: Jinmei Author-X-Name-Last: Yang Title: GTAP Model Analysis of the Economic Effects of an Australia-China FTA: Welfare and Sectoral Aspects Abstract: The Australia-China Free Trade Agreement (ACFTA) is already in the process of being negotiated by the two governments. This paper employs the Computable General Equilibrium (CGE) model using Global Trade Analysis Project (GTAP) database version 6 for a quantitative analysis of the economic effects of proposed ACFTA. Four scenarios are examined in the paper focusing on flexible and fixed current account positions within short run and long run. Equivalent variation (EV) and real consumption are used to measure the welfare effects resulting from the formation of the ACFTA. The results from the GTAP simulations show positive welfare effects for both Australia and China in all cases. Sectoral results show mixed outcomes. Journal: Global Economic Review Pages: 341-362 Issue: 3 Volume: 37 Year: 2008 Keywords: GTAP model, Australia-China FTA, welfare effects, sectoral aspects, X-DOI: 10.1080/12265080802273315 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802273315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:3:p:341-362 Template-Type: ReDIF-Article 1.0 Author-Name: Tuck Cheong Tang Author-X-Name-First: Tuck Author-X-Name-Last: Cheong Tang Title: Aggregate Import Demand Function for Japan: A Cointegration Re-investigation Abstract: Applying a rolling windows approach, this study aims to re-visit the existing literature on cointegration of aggregate import demand function in Japan. In contrary to many studies, the results of cointegration tests suggest that the presence of cointegration relationship for Japan's aggregate import demand function is not stable over the sample period, 1973.Q1-2007.Q2. Again, the estimated elasticities of income and relative prices of imports are varying over the sample period—the income variable is elastic while, the price is found to be inelastic, on average. Journal: Global Economic Review Pages: 363-377 Issue: 3 Volume: 37 Year: 2008 Keywords: Aggregate import demand, cointegration, Japan, rolling windows, X-DOI: 10.1080/12265080802273331 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802273331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:3:p:363-377 Template-Type: ReDIF-Article 1.0 Author-Name: Khaled Elmawazini Author-X-Name-First: Khaled Author-X-Name-Last: Elmawazini Author-Name: Pran Manga Author-X-Name-First: Pran Author-X-Name-Last: Manga Author-Name: Samir Saadi Author-X-Name-First: Samir Author-X-Name-Last: Saadi Title: Multinational Enterprises, Technology Diffusion, and Host Country Absorptive Capacity: A Note Abstract: Previous empirical studies show mixed support for the hypothesis that the impact of technology diffusion from multinational enterprises (MNEs) on host country productivity growth depends on host country absorptive capacity. One explanation is that the results of these empirical studies are sensitive to the measures of absorptive capacity used. This paper contributes to the empirical literature by investigating average years of schooling and total factor productivity gap as measures of host country absorptive capacity in 38 developed and developing countries. Panel data regression equations are estimated using a cross-sectionally heteroskedastic and timewise autoregressive (CHTA) model. The paper has two main results. The first result does not support the hypothesis that the technology diffusion from MNEs has a positive impact on the productivity growth in developing countries. The second result is that the total factor productivity gap is more appropriate than average years of schooling to measure host country absorptive capacity. This may suggest that the results of previous studies that used average years of schooling should be interpreted with caution. Journal: Global Economic Review Pages: 379-386 Issue: 3 Volume: 37 Year: 2008 Keywords: Multinational enterprises, technology diffusion, absorptive capacity, productivity growth, human capital, X-DOI: 10.1080/12265080802273356 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802273356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:3:p:379-386 Template-Type: ReDIF-Article 1.0 Author-Name: Osama Sweidan Author-X-Name-First: Osama Author-X-Name-Last: Sweidan Title: The Asymmetric Loss Function and the Central Banks' Ability in Developing Countries Abstract: This paper seeks to develop a theoretical strand of research in monetary economics by modelling central bank ability in the loss function. Recently, many working papers issued by the International Monetary Fund (IMF) prove that some central banks, particularly from developing countries, are suffering from serious operational problems that might affect their abilities to control the economy. Simultaneously, a literature review shows that the movements are toward using asymmetric loss function. Therefore, we utilize this function in the standard monetary approach. The results proved that both central bank ability and preference in developing countries are fundamental to explain inflation bias and the movement of monetary policy instrument. Journal: Global Economic Review Pages: 387-403 Issue: 3 Volume: 37 Year: 2008 Keywords: Asymmetric loss function, central bank ability, central bank losses, inflation rate, developing countries, X-DOI: 10.1080/12265080802273364 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802273364 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:3:p:387-403 Template-Type: ReDIF-Article 1.0 Author-Name: George Halkos Author-X-Name-First: George Author-X-Name-Last: Halkos Author-Name: Nickolaos Tzeremes Author-X-Name-First: Nickolaos Author-X-Name-Last: Tzeremes Title: Does the Home Country's National Culture Affect MNCs' Performance? Empirical Evidence of the World's Top 100 East-West Non-financial MNCs Abstract: The question of why some multinational corporations (MNCs) perform better than others is at the centre of the analysis of many international business disciplines and the subject of a never-ending debate of policy-makers. The dilemma of whether the MNC's organizational culture differs from home countries' national culture is the subject of our research. We provide empirical evidence that MNCs' national cultures shape and dominate MNCs' organizational cultures with a direct impact on their performances. For the first time by using performance measurement techniques and reconstructing cultural distance indexes, we are providing empirical evidence of the impact of home country's national culture on MNCs' performance. Journal: Global Economic Review Pages: 405-427 Issue: 4 Volume: 37 Year: 2008 Keywords: MNC performance, national culture, cultural distance, data envelopment analysis, X-DOI: 10.1080/12265080802480811 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802480811 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:405-427 Template-Type: ReDIF-Article 1.0 Author-Name: Leah Green Author-X-Name-First: Leah Author-X-Name-Last: Green Author-Name: Patrick Mendis Author-X-Name-First: Patrick Author-X-Name-Last: Mendis Title: Chindia: Does Culture Matter in Hindu and Confucian Economies? Abstract: China and India (Chindia) have begun in recent years to enjoy growing measures of economic success, reversing centuries of structural poverty and negligible rates of economic growth. This article examines the influence of varying cultural propensities—Hinduism in India and Confucianism in China—and their impact on each country's economic turnaround. It discusses the historical circumstances that shaped Chindia's perspectives on foreign direct investment and how external forces contributed to domestic policy-making. It also addresses three ways in which culture can affect economy and two major events that cemented the direction of Chindian economic growth. Finally, the paper presents a comparative analysis of China and India and their respective impact of culture on development. It asserts that the forces of culture and its historical development do matter, especially when it comes for a nation to reverse its deprived and stagnated situation and to achieve a status of economic powerhouse. Journal: Global Economic Review Pages: 429-445 Issue: 4 Volume: 37 Year: 2008 Keywords: Chindia, economic growth, Confucian economies, Hindu economies, culture, historical development, X-DOI: 10.1080/12265080802480845 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802480845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:429-445 Template-Type: ReDIF-Article 1.0 Author-Name: Evelyn Devadason Author-X-Name-First: Evelyn Author-X-Name-Last: Devadason Title: China and India in World Trade: Are the Asia Giants a Threat to Malaysia? Abstract: With higher shares in world merchandise trade and improvements in product quality, China is better positioned than India in the near term for influencing global trade. From the Malaysian perspective, China represents a non-negligible share in Malaysia's trade. The trends in bilateral trade with both Giants however suggest that competition has intensified. Relative to India, China appears to promulgate a more influential role on Malaysia via higher commodity overlap in external markets, greater matched trade that is of vertical differentiation, distinct quality shifts and negative adjustment pressures. Within this broad rubric of trade-induced changes, there is no evidence of skill upgrading for Malaysia in trade expansion with both Giants. This mirrors the lack of product quality improvements and the low levels of export values of high quality varieties in matched trade. Hence trade induced changes from the Giants that have been cited to be favourable from the Malaysian perspective in previous studies, may have been grossly overstated. Journal: Global Economic Review Pages: 447-467 Issue: 4 Volume: 37 Year: 2008 Keywords: Product quality changes, high quality varieties, skill upgrading, X-DOI: 10.1080/12265080802480936 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802480936 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:447-467 Template-Type: ReDIF-Article 1.0 Author-Name: Ho-Don Yan Author-X-Name-First: Ho-Don Author-X-Name-Last: Yan Title: Taiwan's Yacht Industry: A Tale of Two Entrepreneurial Firms Abstract: This paper studies the evolution of Taiwan's yacht industry in general, and in particular we focus on two entrepreneurial firms, the Horizon Yacht Company and the Jade Yacht Company. Our purposes are two-fold. First, most research studies on Taiwan's economic success are based on the neoclassical economic model, which uses a proportional input-output production function, and emphasizes aggregate data to explain economic growth. We instead emphasize the role of entrepreneurship, which allows us to investigate closely how each individual firm discovers opportunities, exploits profits, and accumulates its capabilities to create perpetual wealth. Second, Taiwan is a very entrepreneurial society and its entrepreneurial spirit permeates into every corner with successful stories not just confined to some champion industries, such as integrated circuits (ICs), personal computers (PCs), etc. Taiwan's yacht industry, though it sailed through stormy periods in the late 1980s, has learned to grow to be a much more competitive player on the world stage. We show two cases of yacht corporations, Horizon and Jade, to shed light on how the firms use variant strategies to build their continuous competitive advantages, to meet challenges, and to galvanize their capabilities on their pathway to growth. Journal: Global Economic Review Pages: 469-486 Issue: 4 Volume: 37 Year: 2008 Keywords: entrepreneurship, Competitive advantages, strategic entrepreneurship, entrepreneurial learning, fiber-reinforced plastic (FRP) yacht, metal yacht, vertical integration, X-DOI: 10.1080/12265080802480969 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802480969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:469-486 Template-Type: ReDIF-Article 1.0 Author-Name: Jangryoul Kim Author-X-Name-First: Jangryoul Author-X-Name-Last: Kim Author-Name: Gieyoung Lim Author-X-Name-First: Gieyoung Author-X-Name-Last: Lim Title: Which Method Should the Central Bank Choose to Estimate the Model Economy? A Korean Monetary Policy Example Abstract: To understand how the macro economy evolves, the central bank has two options in choosing how to estimate the economic model against actual data: one is to estimate each sector of the model piece-by-piece, and the other is to estimate the whole model altogether. This paper demonstrates the advantage for the central bank of estimating the whole model in terms of the estimation accuracy and the robustness of the resulting policy recommendations. For that aim, we construct a macro model for the monetary policy analysis of the Korean economy and estimate the model via the system approach and single-equation approach. We evaluate the data fits of the two estimation results and show that the fit of the system approach is far better than the other and comparable to other methods such as vector autoregressions. It is also shown that, if the two estimated models are equally likely, conducting the policy tailored for the model estimated by the system approach delivers better stabilization results for the Korean economy. Journal: Global Economic Review Pages: 487-495 Issue: 4 Volume: 37 Year: 2008 Keywords: Monetary policy, estimation accuracy, robustness, X-DOI: 10.1080/12265080802480985 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802480985 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:487-495 Template-Type: ReDIF-Article 1.0 Author-Name: Bihong Huang Author-X-Name-First: Bihong Author-X-Name-Last: Huang Title: International Dependency and Economic Fluctuations in East Asian NIEs Abstract: This paper investigates the sources of economic fluctuations in the four Asian newly industrialized economies (NIEs), namely Hong Kong, Republic of Korea, Singapore and Taiwan. As small open economies, their macro-economic development is highly dependent on technology as well as markets of large countries. Using the common trends model, we examine the impacts of external supply shock, internal supply shock and trade shock on the key national macro-economic variables of these four economies, i.e. output, consumption, investment, export and import. Our empirical evidence suggests that supply-side disturbances, both the country-specific supply shocks and international supply shocks explain the bulk of fluctuations in output. Journal: Global Economic Review Pages: 497-506 Issue: 4 Volume: 37 Year: 2008 Keywords: Common trends model, East Asian NIEs, economic fluctuations, international dependency, X-DOI: 10.1080/12265080802481017 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802481017 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:497-506 Template-Type: ReDIF-Article 1.0 Author-Name: Dilip Das Author-X-Name-First: Dilip Author-X-Name-Last: Das Title: Contemporary Phase of Globalization: Does It Have a Serious Downside? Abstract: There are many who logically or illogically regard the contemporary phase of economic globalization as a negative, harmful, destructive, marginalizing and malevolent influence. Notwithstanding its positive welfare implications, it has been a serious source of national, regional and global economic problems for many economies, both developing and advance industrial ones. Partial blame for the fall 2008 meltdown of the global financial market does justly go to globalization. It is also blamed for uneven distribution of income within and between countries. Consequently global policy environment has turned globalization-unfriendly. Without negating the affirmative aspects of globalization and its welfare-enhancing contributions, this article focuses on the negative aspects of the contemporary phase of economic globalization. Journal: Global Economic Review Pages: 507-526 Issue: 4 Volume: 37 Year: 2008 Keywords: Contemporary globalization, malevolent economic force, uneven income distribution, sinking real wages, financial crises, X-DOI: 10.1080/12265080802481058 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802481058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:507-526 Template-Type: ReDIF-Article 1.0 Author-Name: Mark David Witte Author-X-Name-First: Mark David Author-X-Name-Last: Witte Title: When is a Global Currency Optimal? Abstract: The purpose of this paper is to examine what factors make an individual, exporting firm choose to denominate its price(s) in the same currency for multiple markets in different countries. The unique model herein maintains an endogenous frequency of price adjustment, price discrimination and currency of denomination. The representative firm is likely to choose a global price (one price in one currency for all countries) based mostly on macro economic and industry-specific characteristics. Exchange rate transaction costs, exchange rate volatility and market size consistently impact the optimality of the use of a global currency. Journal: Global Economic Review Pages: 1-11 Issue: 1 Volume: 38 Year: 2009 Keywords: Exchange rate, invoicing, currency, PCP, VCP, X-DOI: 10.1080/12265080802692639 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802692639 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:1-11 Template-Type: ReDIF-Article 1.0 Author-Name: Miron Mushkat Author-X-Name-First: Miron Author-X-Name-Last: Mushkat Author-Name: Roda Mushkat Author-X-Name-First: Roda Author-X-Name-Last: Mushkat Title: The Political Economy of Chinese “Federalism”: New Analytical Directions Abstract: Decentralized politico-administrative structures may be dissected and assessed by employing a variety of conceptual tools. In the case of China, researchers have displayed a distinct preference for operating within a framework grounded in political sociology. Substantial insights have been generated in the process, but it may be argued, and empirically demonstrated, that a complementary approach, seeking inspiration from political economy, may shed additional light on the functioning of the Chinese quasi-federal system. Journal: Global Economic Review Pages: 13-28 Issue: 1 Volume: 38 Year: 2009 Keywords: Fragmentation, centre, periphery, cellular model, administrative decentralization, marketization, utility maximization, regime, governance, environment, X-DOI: 10.1080/12265080802692647 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802692647 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:13-28 Template-Type: ReDIF-Article 1.0 Author-Name: Jean-Claude Maswana Author-X-Name-First: Jean-Claude Author-X-Name-Last: Maswana Title: A Contribution to the Empirics of Finance-growth Nexus in China: A Complex System Perspective Abstract: The paper empirically examines the causal interactions between Chinese financial development and economic growth using the perspective of complex systems as a metaphor in an attempt to provide a better understanding of the co-evolution of China's real and financial sectors. Using Hsiao's version of the Granger causality tests, the empirical results support a complex set of bidirectional causality between the financial development proxies and economic growth variables. Despite numerous alleged financial intermediation's inefficiencies, bidirectional causality would suggest a coherent and effective finance-growth ecosystem. Journal: Global Economic Review Pages: 29-47 Issue: 1 Volume: 38 Year: 2009 Keywords: Financial development, economic growth, financial intermediation, China, granger causality, ecosystems, complex systems, X-DOI: 10.1080/12265080802692662 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802692662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:29-47 Template-Type: ReDIF-Article 1.0 Author-Name: Fu-Lai Tony Yu Author-X-Name-First: Fu-Lai Author-X-Name-Last: Tony Yu Title: Taiwan's Entrepreneurs and International Coordination: Evolution of Global Production Network in Electronics and IT Industries Abstract: This study applies the concept of coordinating entrepreneurship to explain the emergence of global production network. More specifically, this study explains and illustrates how Taiwan-born technopreneurs move between Silicon Valley and Taiwan's Hsinchu, thereby promoting Taiwan's computer and information technology (IT) industries. With their entrepreneurial spirit and social network, Taiwan-born technopreneurs even turn Dongguan, a farming village in south China, into a modern IT industrial city. This paper concludes that as a result of the coordinating efforts of these entrepreneurs, electronics and computer plants scattered around the globe are integrated into a global production network, as illustrated by IT firms in Silicon Valley, Hsinchu and Dongguan. Journal: Global Economic Review Pages: 49-62 Issue: 1 Volume: 38 Year: 2009 Keywords: International entrepreneurship, global production network, electronics and IT industries, Silicon Valley, Hsinchu (Taiwan), Dongguan (Pearl River Delta), X-DOI: 10.1080/12265080802692688 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802692688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:49-62 Template-Type: ReDIF-Article 1.0 Author-Name: Shun-Chiao Chang Author-X-Name-First: Shun-Chiao Author-X-Name-Last: Chang Title: Horizontal and Vertical Intra-industry Trade and Firm's Investment Strategies: Evidence from the IT Industry in the Asian, EU and US Markets Abstract: This study investigates the features and determinants of the horizontal and vertical intra-industry trade (HIIT and VIIT, respectively) and firms' investment strategies of the information technology (IT) industry in the Asian, European Union (EU) and US markets from 1996 to 2005. The respective evolutions of the HIIT and VIIT of the IT industry indicate that HIIT has often dominated VIIT in the IT industry, which is obviously contrary to the present pattern of world trade. The empirical results further reveal the principal pattern of the IT firms' foreign direct investment strategies as facilitating the market rather than seeking efficiency in the host regions. The effect of revealed comparative advantage in relation to VIIT and HIIT demonstrates that vertical specialization is significant between Asia and the EU whereas horizontal specialization plays a key role between Asia and the US. The Asian financial crisis significantly promoted VIIT in regard to Asian IT firms in the US market. Finally, regional trade associations such as the EU and Association of South East Asian Nations (ASEAN) have strengthened the vertical specialization of EU IT firms in Asian countries. Journal: Global Economic Review Pages: 63-76 Issue: 1 Volume: 38 Year: 2009 Keywords: IT industry, horizontal intra-industry trade, vertical intra-industry trade, foreign direct investment, regional trade associations, X-DOI: 10.1080/12265080802692696 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802692696 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:63-76 Template-Type: ReDIF-Article 1.0 Author-Name: Kuo-Chun Yeh Author-X-Name-First: Kuo-Chun Author-X-Name-Last: Yeh Title: Will Taiwan's Economy be Marginalized by China? A Macro-economic Policy Coordination Approach Abstract: In Taiwan, economic marginalization has become a major concern that has resulted from the fast growing Chinese economy, imbalanced cross-strait economic and political relations, and a failure to participate in important international trade and financial organizations. Is a China-Taiwan policy cooperative mechanism the best choice for Taiwan's economic welfare? This paper is to measure Taiwan's economic marginalization by an international policy coordination approach instead of the conventional free trade agreements. We simulate macro-economic adjustments of Taiwan and its main economic partners (China and the US) according to the different institutional scenarios and economic shocks. The baseline simulation and sensitivity analyses imply that at the current stage policy coordination between China and Taiwan cannot come into effect without the US's participation. Journal: Global Economic Review Pages: 77-99 Issue: 1 Volume: 38 Year: 2009 Keywords: China, Taiwan, marginalization, macro-economic policy coordination, X-DOI: 10.1080/12265080802692704 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802692704 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:77-99 Template-Type: ReDIF-Article 1.0 Author-Name: Hiroya Akiba Author-X-Name-First: Hiroya Author-X-Name-Last: Akiba Author-Name: Yukihiro Iida Author-X-Name-First: Yukihiro Author-X-Name-Last: Iida Title: Monetary Unions and Endogeneity of the OCA Criteria Abstract: This article examines an endogeneity issue within the Optimum Currency Area (OCA) theory. According to the cost-benefit analysis, we found that there are the upper and the lower bounds in the degree of monetary integration for a monetary union to be created. We also found that a country may secede from the monetary union, depending on its degree of integration. A country may also secede when production specialization is facilitated with monetary integration within a framework of the “OCA line”. We also consider the endogeneity of the “OCA Index”, and applied our analysis to the optimum number of world currencies. Journal: Global Economic Review Pages: 101-116 Issue: 1 Volume: 38 Year: 2009 Keywords: Monetary Union, OCA, endogeneity, X-DOI: 10.1080/12265080802692795 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080802692795 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:101-116 Template-Type: ReDIF-Article 1.0 Author-Name: Norifumi Kawai Author-X-Name-First: Norifumi Author-X-Name-Last: Kawai Title: Location Strategies of Foreign Investors in China: Evidence from Japanese Manufacturing Multinationals Abstract: The goal of this study is to examine the determinants of the industrial location of Japanese manufacturing foreign direct investment (FDI) in China for the period from 1998 to 2006 at the provincial level. We stress that the determinants of FDI strategies cannot be tested sufficiently without a fine-grained analysis of the association between institutions and organizations. In an extension of institution theory, we identified that institutions such as special economic zones (SEZs), a greater degree of protection of intellectual property rights, and the weak concentration of state-owned enterprises (SOEs) act as crucial determinants of recruiting Japanese manufacturing FDI. Journal: Global Economic Review Pages: 117-141 Issue: 2 Volume: 38 Year: 2009 Keywords: Japanese foreign direct investment, institution-specific location advantages, special economic zones, intellectual property rights protection, state-owned enterprises, X-DOI: 10.1080/12265080902891420 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080902891420 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:2:p:117-141 Template-Type: ReDIF-Article 1.0 Author-Name: Salah Nusair Author-X-Name-First: Salah Author-X-Name-Last: Nusair Title: Non-linear Co-integration between Nominal Interest Rates and Inflation: An Examination of the Fisher Hypothesis for Asian Countries Abstract: This paper examines the long-run relationship between nominal interest rates and inflation for a group of Asian countries over the period February 1973-April 2007. We argue that the empirical failure to find evidence supporting the Fisher effect in previous studies may be attributed to the presence of non-linearities in the long-run relationship between nominal interest rates and inflation. We present evidence that the Fisher relation contains significant logistic smooth transition autoregression (LSTAR)-type non-linearity. This type of non-linearity is consistent with inflation targeting and the opportunistic behavior of policy-makers. Applying a non-linear unit root test to the residuals obtained from the Fisher relation decisively rejects the null hypothesis of a unit root against the alternative of non-linear but globally stationary in all the cases. Journal: Global Economic Review Pages: 143-159 Issue: 2 Volume: 38 Year: 2009 Keywords: Fisher effect, non-linearity, co-integration, X-DOI: 10.1080/12265080902891446 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080902891446 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:2:p:143-159 Template-Type: ReDIF-Article 1.0 Author-Name: Jin Hwa Jung Author-X-Name-First: Jin Hwa Author-X-Name-Last: Jung Author-Name: Kang-Shik Choi Author-X-Name-First: Kang-Shik Author-X-Name-Last: Choi Title: Technological Change and Returns to Education: The Implications for the S&E Labor Market Abstract: This paper analyzes the earnings effect of skill-biased technological change (SBTC), focusing on the comparison of science and engineering (S&E) and non-S&E occupations. In the analysis, we assert that S&E occupations and non-S&E occupations differ in the nature of skill requirements and their susceptibility to technological change; and consequently the earnings effects of SBTC also demonstrate a similar impact. For the empirical analysis, the modified Mincerian earnings equations are estimated by quantile regressions as well as the ordinary least squares (OLS) and two-stage estimation method. Fitted to Korean panel data, the earning-enhancing effect of SBTC is observed for male workers, not only for those in S&E occupations but also for those in non-S&E occupations. Such an effect is not observed for women in S&E occupations, and rather turns even negative for women in non-S&E occupations; envisaging a relatively large occurrence of work interruption of married women in Korea, we conjecture that this may reflect women workers' skill deterioration taking place during a work interruption. The earnings effect of SBTC is most apparent for male workers in the higher quantiles of earnings distribution, implying that those who are highly educated and have high unobserved ability gain most from SBTC. Journal: Global Economic Review Pages: 161-184 Issue: 2 Volume: 38 Year: 2009 Keywords: Skill-biased technological change, returns to education, S&E labor market, quantile regression, X-DOI: 10.1080/12265080902891461 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080902891461 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:2:p:161-184 Template-Type: ReDIF-Article 1.0 Author-Name: Hong Park Author-X-Name-First: Hong Author-X-Name-Last: Park Author-Name: Geon-Cheol Shin Author-X-Name-First: Geon-Cheol Author-X-Name-Last: Shin Author-Name: Iksu Jurn Author-X-Name-First: Iksu Author-X-Name-Last: Jurn Title: Corporate Strategies and Performances of Korean Firms: The Unified Theory of the Firm Perspective Abstract: A good understanding of the nature of the firm is essential in developing corporate strategies, building corporate competitiveness, and establishing sound economic policy. Several theories have emerged on the nature of the firm: the neo-classical theory of the firm, the principal agency theory, the transaction cost theory, the property rights theory, the resource-based theory and the evolutionary theory. Each of these theories identify some elements that describe the nature of the firm, but no single theory is comprehensive enough to include all elements of the nature of the firm. Economists began to seek a theory capable of describing the nature of the firm within a single, all-encompassing, coherent framework. We propose a unified theory of the firm, which encompasses all elements of the firm. We then evaluate performances of Korean firms from the unified theory of the firm perspective. Empirical evidences are promising in support of the integrative theory of the firm. Journal: Global Economic Review Pages: 185-203 Issue: 2 Volume: 38 Year: 2009 Keywords: Unified theory, Korean firms, firm performance, corporate strategy, return on assets, integration, X-DOI: 10.1080/12265080902891818 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080902891818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:2:p:185-203 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-X-Name-First: Yu Author-X-Name-Last: Hsing Title: Modeling the Behavior of the KRW/USD Exchange Rate and Policy Implications Abstract: This paper examines the behavior of the KRW/USD exchange rate based on four major models. Using the mean absolute percent error (MAPE) as the criterion, the purchasing power parity (PPP) model using the relative producer price index (PPI) performs the best, followed by the extended investment saving-liquidity preference money supply (IS-LM) model, the Frankel model, the purchasing power parity model based on the relative consumer price index (CPI), the Dornbusch model, the Frenkel model, and the uncovered interest parity model. The generalized Box-Cox model indicates that the log-log form for the PPP model can be rejected. Journal: Global Economic Review Pages: 205-214 Issue: 2 Volume: 38 Year: 2009 Keywords: PPP, UIP, monetary model, extended IS-LM model, generalized Box-Cox model, X-DOI: 10.1080/12265080902891826 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080902891826 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:2:p:205-214 Template-Type: ReDIF-Article 1.0 Author-Name: Chor Foon Tang Author-X-Name-First: Chor Foon Author-X-Name-Last: Tang Title: An Examination of the Government Spending and Economic Growth Nexus for Malaysia Using the Leveraged Bootstrap Simulation Approach Abstract: The main objective of this study is to re-examine the government spending-growth nexus for Malaysia from the perspective of disaggregated government spending. The yearly data from 1960 to 2007 is used in this study. This study applied the bounds testing for co-integration and the leveraged bootstrap simulation approaches to examine the relationship between three different categories of government spending and national income in Malaysia. It is found that government spending on education and defence are co-integrated with national income. Nevertheless, there is no evidence of co-integrating relation between government spending on health and national income. The MWALD causality test shows strong evidence of unidirectional causal relationship running from national income to the three major government spending in Malaysia. However, bilateral causality evident exists only between government spending on health and national income. Journal: Global Economic Review Pages: 215-227 Issue: 2 Volume: 38 Year: 2009 Keywords: Government spending, growth, MWALD, leveraged bootstrap, X-DOI: 10.1080/12265080902903266 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080902903266 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:2:p:215-227 Template-Type: ReDIF-Article 1.0 Author-Name: George Verikios Author-X-Name-First: George Author-X-Name-Last: Verikios Author-Name: Kevin Hanslow Author-X-Name-First: Kevin Author-X-Name-Last: Hanslow Title: The Long-run Effects of Structural Change and the Treatment of International Capital Accumulation, Mobility and Ownership Abstract: Taking a commonly-used and commonly-available trade policy model as our starting point, we examine the long-run effects of large-scale structural change with and without international capital accumulation, mobility and ownership. We demonstrate the relative merits and limitations of different treatments of international capital accumulation, mobility and ownership. In doing so, we present a treatment of international capital accumulation, mobility and ownership that gives policy analysts an approach to analysing the effects of large-scale structural policies that is not too heavy in its theoretical and data demands. Our findings support the work of Baldwin and others who have demonstrated that ignoring capital accumulation, mobility and ownership underestimates net output and welfare effects of large-scale structural change. Journal: Global Economic Review Pages: 229-250 Issue: 3 Volume: 38 Year: 2009 Keywords: Computable general equilibrium models, capital accumulation, international capital mobility and ownership, structural change, X-DOI: 10.1080/12265080903157276 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903157276 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:229-250 Template-Type: ReDIF-Article 1.0 Author-Name: George Emm Halkos Author-X-Name-First: George Author-X-Name-Last: Emm Halkos Author-Name: Nickolaos Tzeremes Author-X-Name-First: Nickolaos Author-X-Name-Last: Tzeremes Title: Electricity Generation and Economic Efficiency: Panel Data Evidence from World and East Asian Countries Abstract: This paper investigates the effect of electricity generation on countries' economic efficiency. By using a sample of 42 World and East Asian countries for the time period 1996-2006 the paper employs Data Envelopment Analysis (DEA) window analysis and econometric panel techniques. The results reveal that there is an inverted U-shape relationship between electricity generation and countries' economic efficiency. Finally, the turning point for the European countries is much smaller compared to the one of East Asian countries indicating that the European countries shift in energy use from electricity to other sources of energy. In addition the electricity generation-economic efficiency relationship depends also on the structure of the economy. Journal: Global Economic Review Pages: 251-263 Issue: 3 Volume: 38 Year: 2009 Keywords: Electricity generation, economic growth, generalized least squares, DEA window analysis, X-DOI: 10.1080/12265080903157300 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903157300 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:251-263 Template-Type: ReDIF-Article 1.0 Author-Name: Koi Nyen Wong Author-X-Name-First: Koi Nyen Author-X-Name-Last: Wong Author-Name: Tuck Cheong Tang Author-X-Name-First: Tuck Cheong Author-X-Name-Last: Tang Author-Name: Dietrich Fausten Author-X-Name-First: Dietrich Author-X-Name-Last: Fausten Title: Foreign Direct Investment and Services Trade: Evidence from Malaysia and Singapore Abstract: Services trade is an important source of growth in Malaysia and Singapore. Both economies are export-oriented and actively court foreign direct investment (FDI) to advance their economic objectives of industrialization and economic development. This paper examines the causal linkages between inward FDI and the country's engagement in services trade in bi-variate and tri-variate VAR frameworks. The empirical findings for Singapore show evidence of bi-directional causality between inward FDI and the total trade volume in services (i.e. the absolute sum of payments and receipts) as well as between FDI and services imports (in the tri-variate specification). This may reflect her relative open foreign investment policy and free trade regime in services. For Malaysia, the evidence of causality is weaker and uni-directional, from inward FDI to services imports. These findings are consistent with the different stages of economic development and openness attained by the two sample countries, and they provide useful background for trade and foreign investment policies and development strategies. Journal: Global Economic Review Pages: 265-276 Issue: 3 Volume: 38 Year: 2009 Keywords: Causality, services trade, foreign direct investment, X-DOI: 10.1080/12265080903157318 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903157318 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:265-276 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Wook Lee Author-X-Name-First: Yong Wook Author-X-Name-Last: Lee Author-Name: Sun Young Kwak Author-X-Name-First: Sun Young Author-X-Name-Last: Kwak Title: Neo-liberal Korea and Still Developmentalist Japan: Myth or Reality? Abstract: In the “varieties of capitalism” debate, scholars have paid considerable attention to the question of whether Korea and Japan have left behind their interventionist political economy for neo-liberal reform. In this paper, we re-examine the scholarly consensus that Korea has become a neo-liberal state, while Japan has not changed much. On the basis of our comparison of the extent of the two countries' neo-liberal reforms using the “business systems framework” developed by Witt, we demonstrate that neo-liberal reforms observed in Korea and Japan are not substantially different enough to warrant the view that the two countries have taken divergent paths of institutional development. With this finding, we call for further empirical study, including the development and use of more qualitative data. We suggest that the future direction research should take on this issue in order to make theoretical contributions to the existing literature on institutional change and continuity in “non-liberal” capitalist countries. We do this by offering some methods in which future researchers could identify necessary and sufficient causes of Korea's and Japan's neo-liberal (or non-neo-liberal) shift. Journal: Global Economic Review Pages: 277-295 Issue: 3 Volume: 38 Year: 2009 Keywords: Varieties of capitalism, neo-liberal reform, developmental state, institutional change and continuity, financial liberalization, business systems framework, X-DOI: 10.1080/12265080903157334 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903157334 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:277-295 Template-Type: ReDIF-Article 1.0 Author-Name: Yi-Ping Lien Author-X-Name-First: Yi-Ping Author-X-Name-Last: Lien Title: An Empirical Study of OEM in Taiwan's Apparel Industry Abstract: This paper has examined the effectiveness of the original equipment manufacturing (OEM) system in Taiwan's apparel industry from the perspective of international competitiveness. For that purpose, this study uses the following three definitions as the dependent variables in the empirical analyzes: namely, the ratio of apparel's export value to real gross domestic product (GDP); apparel's export value per unit of labor cost; and trade specialization index of Taiwan's apparel industry. The indices constructed for statistical analysis in this study illustrate clearly that international competitiveness of Taiwan's apparel industry has deteriorated from 1989 to 2005. In addition, in order to clarify those factors that have influenced the fall of international competitiveness, this study identifies three important factors—namely, wage, labor productivity, and the real effective exchange rate (REER)—and four structural and policy dummies, and then conducted multiple regressions to clarify their statistical relations with each of the dependent variable. The analytical findings show that the Taiwanese apparel industry has lost its attractiveness as an OEM production base because of the rise of wages and the fall of labor productivity. In addition, our findings show that the appreciation of the New Taiwan Dollar (NTD) in terms of REER does not influence the movement of international competitiveness in Taiwan's apparel industry. Journal: Global Economic Review Pages: 297-319 Issue: 3 Volume: 38 Year: 2009 Keywords: Original equipment manufacturing (OEM), original design manufacturing (ODM), own-brand manufacturing (OBM), industrial development, apparel industry, international competitiveness, X-DOI: 10.1080/12265080903157359 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903157359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:297-319 Template-Type: ReDIF-Article 1.0 Author-Name: Deuk-Kyu Bok Author-X-Name-First: Deuk-Kyu Author-X-Name-Last: Bok Title: Changes and Determinants of Suppliers' Customer Scope in the Korean Automobile Industry after the Asian Financial Crisis Abstract: This paper investigates changes in suppliers' customer scope in the Korean automobile industry after the Asian financial crisis as well as causes for those changes. The paper found that the “customer scope” of suppliers, i.e. the number of assemblers that suppliers traded with, had increased compared with the past. This suggests that the closed and exclusive buyer-supplier relationship that existed in the Korean automobile industry before the crisis has somewhat loosened. Causes behind these changes can be attributed to the severe economic recession that occurred just after the Asian crisis and the changing competitiveness of suppliers in cost and quality. Foreign investments in Korean suppliers and the capability of suppliers in R&D did not have the expected influences in increasing customer scope. The results of this analysis can be used as a reference in analyzing the effect of current global financial crisis on the buyer-supplier relationship in the automobile industry. Journal: Global Economic Review Pages: 321-332 Issue: 3 Volume: 38 Year: 2009 Keywords: Buyer-supplier relationship, customer scope of suppliers, Korean automobile industry, Asian financial crisis, X-DOI: 10.1080/12265080903157367 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903157367 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:321-332 Template-Type: ReDIF-Article 1.0 Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Title: Special Issue on Global Financial Crisis and Its Policy Implication on East Asian Emerging Economies Abstract: Journal: Global Economic Review Pages: 333-333 Issue: 3 Volume: 38 Year: 2009 X-DOI: 10.1080/12265080903192513 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903192513 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:333-333 Template-Type: ReDIF-Article 1.0 Author-Name: Fadzlan Sufian Author-X-Name-First: Fadzlan Author-X-Name-Last: Sufian Author-Name: Muzafar Shah Habibullah Author-X-Name-First: Muzafar Shah Author-X-Name-Last: Habibullah Title: Asian Financial Crisis and the Evolution of Korean Banks Efficiency: A DEA Approach Abstract: In the mid-1990s, the East Asian countries experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to understand the nature of the Asian financial crisis. However, the impact of the 1997 Asian financial crisis on the efficiency of the financial industry has yet to be critically examined. By employing the Data Envelopment Analysis (DEA) approach the present study attempts to examine for the first time the impact of the 1997 Asian financial crisis on the efficiency of the Korean banking sector. The study focuses on three major approaches, namely, intermediation, value added, and operating approaches. The results clearly bring forth the high degree of inefficiency in the Korean banking sector, particularly a year after the Asian financial crisis. We find that the Korean banking sector has consistently exhibit higher technical efficiency levels under value added approach, while technical efficiency seems to be lowest under intermediation approach. Journal: Global Economic Review Pages: 335-369 Issue: 4 Volume: 38 Year: 2009 Keywords: Financial crisis, bank efficiency, data envelopment analysis, panel regression analysis, Korea, X-DOI: 10.1080/12265080903391735 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903391735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:4:p:335-369 Template-Type: ReDIF-Article 1.0 Author-Name: Jangryoul Kim Author-X-Name-First: Jangryoul Author-X-Name-Last: Kim Author-Name: Gieyoung Lim Author-X-Name-First: Gieyoung Author-X-Name-Last: Lim Title: House Prices and the Stance of Monetary Policy: The Case of Korea Abstract: This paper is an empirical investigation on whether the Bank of Korea should respond to the housing price developments in conducting monetary policy. For that aim, we construct a small scale empirical model of the Korean economy, simulate the estimated model with a set of alternative monetary policy rules, and compare the stabilization performances of those rules. There turns out to be ample room for further stabilization of inflation and output, if the central bank shifts from the historically conducted monetary policy rule to the optimal rule. The stabilization gains under the optimal rule, however, are not attributable to additional policy indicators (such as housing price inflation) the optimal rule involves. Rather, the optimal rule improves upon the historical one because the former takes a quite different reaction scheme toward the historical policy indicators. Moreover, as long as the Bank of Korea maintains appropriate reactions to the historical policy indicators, housing price inflation does not contain much extra information for further stabilization Journal: Global Economic Review Pages: 371-384 Issue: 4 Volume: 38 Year: 2009 Keywords: Housing prices, monetary policy rules, optimal monetary policy, X-DOI: 10.1080/12265080903391750 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903391750 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:4:p:371-384 Template-Type: ReDIF-Article 1.0 Author-Name: Venus Khim-Sen Liew Author-X-Name-First: Venus Khim-Sen Author-X-Name-Last: Liew Author-Name: Ahmad Zubaidi Baharumshah Author-X-Name-First: Ahmad Zubaidi Author-X-Name-Last: Baharumshah Author-Name: Chin-Hong Puah Author-X-Name-First: Chin-Hong Author-X-Name-Last: Puah Title: Monetary Model of Exchange Rate for Thailand: Long-run Relationship and Monetary Restrictions Abstract: This paper examines the long-run relationship between exchange rate and its determinants based on the flexible-price monetary model. The multivariate cointegration approach is adopted to attain our objective of this study. The empirical results provide evidence favoring the monetary approach to exchange rate for a small and open emerging economy, namely Thailand. In addition, the validity of the underlying assumptions of the monetary approach to the determination of exchange rate is established. The findings suggest that exchange rate players may effectively monitor and forecast the exchange rate movement via the money supplies, incomes, and interest rates variables of both Thailand and Japan. Besides, one has to follow the economic development of Thailand's major trading partner, Japan, to understanding the movement of exchange rate for Thailand. Moreover, our findings add new insights to accompany previous studies that documented the important influence of the US in the emerging Asian economies. Journal: Global Economic Review Pages: 385-395 Issue: 4 Volume: 38 Year: 2009 Keywords: Exchange rate, monetary model, Thailand, cointegration, X-DOI: 10.1080/12265080903391784 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903391784 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:4:p:385-395 Template-Type: ReDIF-Article 1.0 Author-Name: Dene Hurley Author-X-Name-First: Dene Author-X-Name-Last: Hurley Title: Linkages among US Interest Rates and East Asian Purchases of US Treasury Securities Abstract: Recent increases in East Asian purchases of US treasury securities has led to growing concern over its impact on the US economy, particularly on the US long-term and short-term interest rates. The vector error-correction model results revealed the presence of long-run causal relations among the federal funds rate, the 10-year Treasury rate and the East Asian demand in addition to a unidirectional short-run causal relation from the 10-year rate to the Federal funds rate. The variance decomposition and impulse response findings indicated that the Asian demand for US assets has a limited but negative impact on the 10-year US Treasury interest rate. The transmission of the East Asian demand shock on both interest rates was almost immediate. The Federal funds rate is found to have a significant negative impact on the long-term rate. Journal: Global Economic Review Pages: 397-408 Issue: 4 Volume: 38 Year: 2009 Keywords: Asian purchases of US treasury securities, US interest rates, causality, variance decomposition, impulse response function, X-DOI: 10.1080/12265080903391800 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903391800 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:4:p:397-408 Template-Type: ReDIF-Article 1.0 Author-Name: Sonia Wong Man Lai Author-X-Name-First: Sonia Author-X-Name-Last: Wong Man Lai Author-Name: Yong Yang Author-X-Name-First: Yong Author-X-Name-Last: Yang Title: From Scorned to Loved? The Political Economy of the Development of the Stock Market in China Abstract: This paper explains how and why the stock market, which is regarded as the embodiment of capitalism, has been allowed to develop and gain a prominent place among China's financial markets. That development has been consistent with the changing vested interests of the central government in its attempts to collect quasi-fiscal revenue from the financial sector, reflecting the stock market's growing importance as a tax-collection venue. Journal: Global Economic Review Pages: 409-429 Issue: 4 Volume: 38 Year: 2009 Keywords: Stock market, capitalism, financial markets, X-DOI: 10.1080/12265080903391826 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903391826 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:4:p:409-429 Template-Type: ReDIF-Article 1.0 Author-Name: Ki Young Park Author-X-Name-First: Ki Young Author-X-Name-Last: Park Title: Genes and Social Mobility: A Case for Progressive Income Tax Abstract: The effect of ability inheritance on income distribution and social mobility is analyzed with an emphsis on the role of progressive income tax. Epstein-Zin style utility function is used to highlight the role of risk aversion. The result shows that higher genetic inheritability leads to lower per capita income, higher income variance and lower aggregate welfare at the steady state. This tendency is intensified when the elasticity of a child's income to parent's educational investment is higher. In this setup, it is shown that progressive income tax can be a welfare-enhancing tool by increasing social mobility. The optimal progressive income tax rate is obtained in the benchmark model and its positive effect is discussed in the context of “Veil of ignorance”, a concept proposed by Rawls (A Theory of Justice (Cambridge, MA: Harvard, University Press), 1971). Journal: Global Economic Review Pages: 431-459 Issue: 4 Volume: 38 Year: 2009 Keywords: Progressive income tax, social mobility, veil of ignorance, X-DOI: 10.1080/12265080903391842 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903391842 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:38:y:2009:i:4:p:431-459 Template-Type: ReDIF-Article 1.0 Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Euysung Kim Author-X-Name-First: Euysung Author-X-Name-Last: Kim Title: The Global Financial Crisis: New Implications and Perspectives for Emerging Economies Abstract: The current global financial crisis offers a number of valuable lessons and perspectives. Most importantly, the current crisis shows us that globalization requires more prudential supervision and regulation not less. In other words, the role of governments is critical in this world environment where currency and financial crisis are a recurring phenomenon. Ironically, the institutions we created and conventional economic wisdoms that we have promoted to foster global prosperity have actually ended up tying up our own hands in dealing with many of the pressing issues in the global economy. The global imbalance problem is one prime area where appropriate government intervention could provide a simple solution. The new emphasis on government interventions in managing national and global economy does not suggest going back to the era of protectionism and anti-globalization. Journal: Global Economic Review Pages: 1-13 Issue: 1 Volume: 39 Year: 2010 Keywords: Financial crisis, global imbalance, government intervention, X-DOI: 10.1080/12265081003696379 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003696379 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 Author-Name: Mark David Witte Author-X-Name-First: Mark David Author-X-Name-Last: Witte Title: Asian Exchange Rates during the Credit Crisis: Policies to Avoid Depreciation Abstract: A few policy recommendations become apparent to avoid depreciation relative to other regional currencies when examining intra-Asian exchange rates during the most recent credit crisis. One, avoid large fiscal deficits. Two, avoid high inflation and current account deficits in order to maintain low interest rates to avoid depreciation from the unwinding of the carry trade. Third, build large official reserves or, more importantly, build large reserves of foreign currency assets. Additional results show an unexplained depreciation of the Australian dollar and the Indian rupee and appreciation of the Thai baht as the TED spread widened and credit crisis worsened. Journal: Global Economic Review Pages: 15-24 Issue: 1 Volume: 39 Year: 2010 Keywords: Interest rates, flexible exchange rates, credit crisis, carry trade, TED spread, X-DOI: 10.1080/12265081003701021 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003701021 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:15-24 Template-Type: ReDIF-Article 1.0 Author-Name: Yun Jeong Choi Author-X-Name-First: Yun Jeong Author-X-Name-Last: Choi Author-Name: Doyeon Kim Author-X-Name-First: Doyeon Author-X-Name-Last: Kim Author-Name: Taeyoon Sung Author-X-Name-First: Taeyoon Author-X-Name-Last: Sung Title: Global Crisis, Exchange Rate Response, and Economic Performance: A Story of Two Countries in East Asia Abstract: We consider Korea and Japan in East Asia as the representative country of each of the two groups: high- versus low-depreciation economies during the 2008 global financial crisis. Although the two countries have geographical and industrial similarities, their exchange rate change during the crisis was notably opposite, and so were the macro-economic performances. Particularly, exchange rate and trade flows turned out to have played a major role in creating such differences. Exporting firms significantly outperformed the stock market in Korea, while underperforming in the Japanese stock market during the crisis. However, we could not find this pattern prior to the crisis. The difference caused by the exchange rate change, particularly in time of turmoil of the substantial economic recession and depreciation. Journal: Global Economic Review Pages: 25-42 Issue: 1 Volume: 39 Year: 2010 Keywords: Global financial crisis, exchange rate, depreciation, Korea, Japan, X-DOI: 10.1080/12265081003701039 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003701039 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:25-42 Template-Type: ReDIF-Article 1.0 Author-Name: Wei-Bin Zhang Author-X-Name-First: Wei-Bin Author-X-Name-Last: Zhang Title: A Multi-country Monetary Economic Growth Model with International Trade and National Monetary Policies Abstract: This paper proposes a multi-country monetary growth model with capital accumulation. The real aspects of the model are based on the neo-classical growth theory. Money is introduced via the cash-in-advance (CIA) approach. We show that the dynamics of the J-country world economy can be described by 2J-dimensional differential equations. We also simulate equilibrium and motion of the global economy with three countries and Cobb-Douglas production functions. We demonstrate effects of changes in technology and inflation policy. For instance, our simulation demonstrates that as the developed economy improves its technology, its total output, product per worker and wage are increased over time; the corresponding variables of the other two economies are reduced. We also try to provide some possible implications of our model for the recent economic crisis. Journal: Global Economic Review Pages: 43-58 Issue: 1 Volume: 39 Year: 2010 Keywords: Monetary growth, trade pattern, capital accumulation, CIA approach, inflation policy, X-DOI: 10.1080/12265081003701047 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003701047 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:43-58 Template-Type: ReDIF-Article 1.0 Author-Name: Shikha Jha Author-X-Name-First: Shikha Author-X-Name-Last: Jha Author-Name: Guntur Sugiyarto Author-X-Name-First: Guntur Author-X-Name-Last: Sugiyarto Author-Name: Carlos Vargas-Silva Author-X-Name-First: Carlos Author-X-Name-Last: Vargas-Silva Title: The Global Crisis and the Impact on Remittances to Developing Asia Abstract: Remittances to Asia plunged during the 1997 Asian financial crisis, but the drop was temporary as the flows were increasing once again after just one year. The current crisis, however, is fundamentally different in that even the main remittance-sending countries have been adversely affected. The global nature of this crisis raises several questions such as whether the remittances slowdown will also last for a short time or developing Asia should prepare for a long period of remittance stagnation. This study examines remittances data of several Asian countries to shed light on such questions. The results suggest that while remittance flows to key recipients in the region have slowed down, there has not been a sharp drop. Furthermore, there is no indication that the remittance flows will slow down further, suggesting that the flows should be back on a higher growth path in a few years. It is unlikely, however, to see the same growth rates of the past, given that an important share of that growth during the last two decades was due to better recording of remittances and an increased use of wire transfers on the part of migrants. The study also provides policy options to deal with the future outlook of remittances. Journal: Global Economic Review Pages: 59-82 Issue: 1 Volume: 39 Year: 2010 Keywords: Global crisis, remittances, Asia, X-DOI: 10.1080/12265081003696395 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003696395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:59-82 Template-Type: ReDIF-Article 1.0 Author-Name: Wook Sohn Author-X-Name-First: Wook Author-X-Name-Last: Sohn Author-Name: Bobae Choi Author-X-Name-First: Bobae Author-X-Name-Last: Choi Title: An Equity Market Perspective on the Korean Financial Crisis Abstract: We examine the movement of Korean stock prices before and after the 1997 financial crisis. Unlike in Japan, as documented by Hamao et al. (Journal of Money, Credit and Banking, 39, pp. 901-923, 2007), we find an increase in firm-level volatility in Korea, which may make it easier for investors to distinguish low-quality from high-quality firms and thus encourage “cleansing” during recessions. The result appears to derive from government efforts to restructure the corporate sector, which targeted highly leveraged firms and chaebol affiliates immediately after the market crash. Journal: Global Economic Review Pages: 83-90 Issue: 1 Volume: 39 Year: 2010 Keywords: Stock market volatility, financial crisis, corporate restructuring, Korea, X-DOI: 10.1080/12265081003696403 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003696403 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:83-90 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Hsing Author-X-Name-First: Yu Author-X-Name-Last: Hsing Title: Test of the Marshall-Lerner Condition for Eight Selected Asian Countries and Policy Implications Abstract: Applying a general functional form, the Marshall-Lerner condition of the bilateral trade between the US and Hong Kong, India, Japan, Korea, Malaysia, Pakistan, Singapore, or Thailand is examined. In deriving the real exchange rate, both the relative consumer price index (CPI) and producer price index (PPI) are considered. The results show that the widely used log-log form can be rejected for Singapore and Malaysia using either the relative CPI or PPI and is also inappropriate for India and Pakistan using the relative PPI. The Marshall-Lerner condition holds for India, Korea, Japan and Pakistan, is confirmed for Hong Kong, Singapore and Thailand using the relative CPI, and cannot be confirmed for Malaysia. Thus, in examining the Marshall-Lerner condition or the exchange rate behavior, non-linearity or the appropriateness of the functional form needs to be tested Journal: Global Economic Review Pages: 91-98 Issue: 1 Volume: 39 Year: 2010 Keywords: Marshall-Lerner condition, exchange rate, bilateral trade, functional forms, X-DOI: 10.1080/12265081003696429 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003696429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:91-98 Template-Type: ReDIF-Article 1.0 Author-Name: Jarita Duasa Author-X-Name-First: Jarita Author-X-Name-Last: Duasa Author-Name: Nursilah Ahmad Author-X-Name-First: Nursilah Author-X-Name-Last: Ahmad Title: Predicting the Global Crisis Recovery Period: Lessons from the 1997 Crisis Abstract: The objective of this paper is to identify the best indicator in forecasting the recovery period from the current global crisis for Malaysia. Initially, to determine the best indicator for the recovery period, we construct a simple forecasting model that incorporates three indicators: lagging, leading and coincidence indices, with two proxies of economic performance, macroeconomic and financial variables. We estimate a two-variable vector error correction model (VECM) using monthly and quarterly data covering the period 1980 to 2000. We alternate between the three indicators and we evaluate each model using out-of-sample forecast. Using the results of the initial process of analysis, we predict the recovery period of Malaysian economy from the current global economic crisis. It is found that lagging index is the best indicator of financial performance of the economy. From the half-life calculation base on error correction term, the study found that Malaysia was able to recover from the previous 1997 crisis within a two to four year period after the crisis. Given that the current crisis environment is similar to the previous 1997 crisis, a similar time period could apply to the current global crisis recovery. Journal: Global Economic Review Pages: 99-113 Issue: 1 Volume: 39 Year: 2010 Keywords: Indicator, forecasting, crisis, recovery, Malaysia, X-DOI: 10.1080/12265081003696437 File-URL: http://www.tandfonline.com/doi/abs/10.1080/12265081003696437 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:99-113 Template-Type: ReDIF-Article 1.0 Author-Name: Mohsen Bahmani-Oskooee Author-X-Name-First: Mohsen Author-X-Name-Last: Bahmani-Oskooee Author-Name: Jia Xu Author-X-Name-First: Jia Author-X-Name-Last: Xu Title: The S-Curve Dynamics of US-Hong Kong Commodity Trade Abstract: It has been proved theoretically that correlation coefficients between future values of the trade balance and current exchange rate is positive where as those correlation coefficients between past values of the trade balance and the current exchange rate is negative, hence the S-Curve pattern. In this paper we tested the empirical validity of the curve using annual data from the period 1978-2006 of 104 industries that trade between the US and Hong Kong. We found evidence of the S-Curve in 34 industries. Included among the 34 industries one could see small and large industries as well as durable and non-durable ones. Journal: Global Economic Review Pages: 117-128 Issue: 2 Volume: 39 Year: 2010 Keywords: S-Curve, industry data, the US, Hong Kong, X-DOI: 10.1080/1226508X.2010.483833 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.483833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:2:p:117-128 Template-Type: ReDIF-Article 1.0 Author-Name: Gyu-Hyen Moon Author-X-Name-First: Gyu-Hyen Author-X-Name-Last: Moon Author-Name: Wei-Choun Yu Author-X-Name-First: Wei-Choun Author-X-Name-Last: Yu Title: Volatility Spillovers between the US and China Stock Markets: Structural Break Test with Symmetric and Asymmetric GARCH Approaches Abstract: The paper examines the short-run spillover effects of daily stock returns and volatilities between the Standard & Poor's (S&P) 500 stock index in the US and the Shanghai Stock Exchange (SSE) index in China. First, we find that a structural break occurred in the SSE stock return mean in December 2005. Second, by analyzing modified general autoregressive conditional heteroscedasticity (GARCH)(1,1)-M models, we find evidence of a symmetric and asymmetric volatility spillover effect from the US to the China stock market in the post-break period. Third, we observe the symmetric volatility spillover effect from China to the US in the post-break period. Journal: Global Economic Review Pages: 129-149 Issue: 2 Volume: 39 Year: 2010 Keywords: Volatility spillover, China stock market, structural break, GARCH model, X-DOI: 10.1080/1226508X.2010.483834 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.483834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:2:p:129-149 Template-Type: ReDIF-Article 1.0 Author-Name: Chun-Ping Chang Author-X-Name-First: Chun-Ping Author-X-Name-Last: Chang Author-Name: Chien-Chiang Lee Author-X-Name-First: Chien-Chiang Author-X-Name-Last: Lee Title: Globalization and Economic Growth: A Political Economy Analysis for OECD Countries Abstract: Globalization is commonly defined as a strict economic path by most previous works, but it is really a fuzzy concept with unrestrained dimensions. While the ideological location of an incumbent political party is a powerful predictor of its policy position, the role of a political party in the globalization-growth nexus has never been fully empirically investigated. By applying Pedroni's panel cointegration technique instead of a time-series or traditional panel data approach, this paper aims to empirically re-examine the co-movement and the causal relationship among economic growth, the overall globalization index, and its three main dimensions—economic, social, as well as political integrations—by using panel data for 23 Organization for Economic Cooperation and Development (OECD) countries for 1970 to 2006. Certainly, the political party variable is taken into account as the advanced test is promoted, and we finally discover that all variables move together in the long run. Based on the results of the panel causality test, though the evidence of short-run causality is very weak, it does show long-run unidirectional causality running from the overall index of globalization, economic globalization, and social globalization to growth. Finally, the critical role of the political party is deeply discussed in relation with our results. Journal: Global Economic Review Pages: 151-173 Issue: 2 Volume: 39 Year: 2010 Keywords: Globalization, economic growth, panel cointegration, causality, political party, OECD, X-DOI: 10.1080/1226508X.2010.483835 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.483835 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:2:p:151-173 Template-Type: ReDIF-Article 1.0 Author-Name: Chee-Keong Choong Author-X-Name-First: Chee-Keong Author-X-Name-Last: Choong Author-Name: Siew-Yong Lam Author-X-Name-First: Siew-Yong Author-X-Name-Last: Lam Title: The Determinants of Foreign Direct Investment in Malaysia: A Revisit Abstract: The paper re-examines the determinants of foreign direct investment (FDI) in Malaysia, for the period 1970-2006. The cointegration results show that market size of both Malaysia and China have major, and a statistically significant impact, on FDI inflow to Malaysia. The results seem to support the argument that foreign investors tend to be more attracted to the country with a higher growth rate of gross domestic product (GDP) because it indicates a laglecrv potential demand for their products. In addition, the results also demonstrate that openness level of the country has a positive and statistically significant effect on FDI inflow, which supports the hypothesis that FDI can be attracted to a country with more liberalized economic reforms. Finally, the results show that literacy rate (human capital development) has significant positive effect on FDI inflow. The finding suggests the need for labor force expansion and education policy to raise the stock of human capital in the country. Using Granger causality test, we also find that there exist unidirectional causality from real GDP of both Malaysia and China, degree of openness and literacy rate to FDI inflow. Journal: Global Economic Review Pages: 175-195 Issue: 2 Volume: 39 Year: 2010 Keywords: Foreign direct investment, market size, literacy rate, cointegration, causality, X-DOI: 10.1080/1226508X.2010.483837 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.483837 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:2:p:175-195 Template-Type: ReDIF-Article 1.0 Author-Name: Bae-Geun Kim Author-X-Name-First: Bae-Geun Author-X-Name-Last: Kim Author-Name: Kwang Hwan Kim Author-X-Name-First: Kwang Hwan Author-X-Name-Last: Kim Title: The Role of Manufacturing-specific Technology in Determining the Composition of Hours Worked in Korea Abstract: This paper investigates the role of manufacturing-specific and neutral technological changes in explaining the dramatic shift in hours worked from the manufacturing toward the service sector. The finding is that manufacturing-specific technological changes are the main contributor to the shift in hours worked while neutral technological changes seem to play only a minor role in explaining it. Journal: Global Economic Review Pages: 197-214 Issue: 2 Volume: 39 Year: 2010 Keywords: Manufacturing-specific technological changes, neutral technological changes, relative prices, structural VAR, X-DOI: 10.1080/1226508X.2010.483838 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.483838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:2:p:197-214 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Afzal Author-X-Name-First: Mohammad Author-X-Name-Last: Afzal Title: Exchange Rate and Reserves in Asian Countries: Causality Test Abstract: Countries hold foreign currency reserves to support and influence exchange rate. This paper examines the causal relationship between exchange rate and reserves in six Asian countries. We obtain divergent evidence regarding the long-run and stable relationship between reserves and exchange rate in the sample countries. There is evidence of bidirectional causality between reserves and exchange rate in India, while no-causality in Bangladesh. There is unidirectional causality from reserves to exchange rate in Pakistan, Sri Lanka and Thailand and unidirectional causality from exchange rate to reserves in Philippines. It is concluded that holding of reserves is necessary for supporting exchange rate and vice versa. Journal: Global Economic Review Pages: 215-223 Issue: 2 Volume: 39 Year: 2010 Keywords: Exchange rate, reserves, causality, X-DOI: 10.1080/1226508X.2010.483839 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.483839 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:2:p:215-223 Template-Type: ReDIF-Article 1.0 Author-Name: Zhuo Qiao Author-X-Name-First: Zhuo Author-X-Name-Last: Qiao Author-Name: Weiwei Qiao Author-X-Name-First: Weiwei Author-X-Name-Last: Qiao Author-Name: Wing-Keung Wong Author-X-Name-First: Wing-Keung Author-X-Name-Last: Wong Title: Examining Stock Volatility in the Segmented Chinese Stock Markets: A SWARCH Approach Abstract: This study adopts the SWARCH model to examine the volatile behavior and volatility linkages among the four major segmented Chinese stock indices. We find strong evidence of a regime shift in the volatility of the four markets, and the SWARCH model appears to outperform standard generalized autoregressive conditional heteroskedasticity (GARCH) family models. The evidence suggests that, compared with the A-share markets, B-share markets stay in a high-volatility state longer and are more volatile and shift more frequently between high- and low-volatility states. In addition, the relative magnitude of the high-volatility compared with that of the low-volatility state in the B-share markets is much greater than the case in the two A-share markets. B-share markets are found to be more sensitive to international shocks, while A-share markets seem immune to international spillovers of volatility. Finally, analyses of the volatility spillover effect among the four stock markets indicate that the A-share markets play a dominant role in volatility in Chinese stock markets. Journal: Global Economic Review Pages: 225-246 Issue: 3 Volume: 39 Year: 2010 Keywords: Markov-switching ARCH, volatility, market segmentation, Chinese stock markets, volatility spillover, X-DOI: 10.1080/1226508X.2010.513138 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.513138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:3:p:225-246 Template-Type: ReDIF-Article 1.0 Author-Name: Joon Young Kim Author-X-Name-First: Joon Young Author-X-Name-Last: Kim Author-Name: Jungryol Kim Author-X-Name-First: Jungryol Author-X-Name-Last: Kim Author-Name: Sang Bong Kim Author-X-Name-First: Sang Bong Author-X-Name-Last: Kim Title: Transmission of Stock Prices and Volatility from the Influential Major Markets on the Emerging Market: A Case Study of the Korean Stock Market Abstract: This study investigates how the 1997 crisis has changed the Korean market by focusing on price and volatility spillovers from the US, Chinese, and Japanese markets. Using the exponential general autoregressive conditional heteroskedastic (EGARCH) model, new information on stock prices originating in the US market was transmitted to the Korean market for all periods. The price spillover effect from the Japanese market to the Korean market became stronger from the crisis period. Asymmetry in the spillover effect on market volatility was more pronounced in the Korean market after the financial crisis. Journal: Global Economic Review Pages: 247-268 Issue: 3 Volume: 39 Year: 2010 Keywords: Korean stock market, price and volatility spillovers, asymmetric volatility, X-DOI: 10.1080/1226508X.2010.513139 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.513139 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:3:p:247-268 Template-Type: ReDIF-Article 1.0 Author-Name: Sok-Gee Chan Author-X-Name-First: Sok-Gee Author-X-Name-Last: Chan Author-Name: Mohd Zaini Abd Karim Author-X-Name-First: Mohd Zaini Abd Author-X-Name-Last: Karim Title: Bank Efficiency and Macro-economic Factors: The Case of Developing Countries Abstract: This paper examines the effects of macro-economic factors on bank efficiency of commercial banks in Asia, Middle East/North Africa, and Africa. To achieve the objective, the stochastic frontier approach (SFA) was used to simultaneously estimate the parameters of the stochastic frontier and the inefficiency model. The results show that the effect of macro-economic factors on bank efficiency differs across region. Cost inefficiency of the commercial banks in the Asian region is negatively related to the real gross domestic product per capita, credit to the private sector, and market concentration but is positively related to trade openness. Banks cost inefficiency in the Middle East/North Africa is negatively related to trade openness but is positively related to market concentration suggesting that banking market in this region should be more open to competition. Journal: Global Economic Review Pages: 269-289 Issue: 3 Volume: 39 Year: 2010 Keywords: Bank efficiency, stochastic frontier approach, macro-economic factors, developing countries, X-DOI: 10.1080/1226508X.2010.513141 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.513141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:3:p:269-289 Template-Type: ReDIF-Article 1.0 Author-Name: Chyong Ling Judy Chen Author-X-Name-First: Chyong Ling Judy Author-X-Name-Last: Chen Author-Name: Susan Margaret Belcher Author-X-Name-First: Susan Margaret Author-X-Name-Last: Belcher Title: The Importance of Absorptive Capacity in the Road to Becoming a “Giant Lion”—ASUSTek Computer Inc Abstract: In Taiwan, small businesses, which account for about 97% of all firms, spawned Taiwan's economic miracle in the 1980s. For the past two decades, the information technology (IT) industry has formed the backbone of Taiwan's economy. There are many theories that have identified a plethora of factors which contribute to the success of a small business. This case study applies the theory of absorptive capacity to ASUSTek Computer Inc., a small Taiwanese business founded on April 2, 1990 by four engineers with capital of NT$30 million (US$950,000) which has grown to become a global leader in the IT industry with a total revenue of NT$755 billion (US$24 billion) and market capitalization of NT$49 billion (US$1.5 billion) as of December 31, 2007. (Based on exchange rate US$1=NT$31.5. ASUS's revenue dropped to NT$668 billion in 2008 mainly due to the global financial crisis.) ASUS' business significantly took off after Jonney Shih joined the company as CEO in 1993. He remains a key anchor of ASUS. ASUS' ability to not only absorb, transform, and utilize new knowledge but develop new technology in-house to create and sustain competitive advantage in the market place has ensured the company's continuing success as well as propelling it to a position of leadership in the IT industry worldwide. This paper will discuss how ASUS' in-house R&D; apprenticeship-style on-the-job training; management leadership's organizational culture and structure—all of which stress learning and innovation; financial resources and conservative fiscal policy; as well as pro-business government policies have provided the foundation and environment for great absorptive capacity to develop and adapt technology, enabling ASUS to become a “Giant Lion” in the global computer industry. Journal: Global Economic Review Pages: 291-315 Issue: 3 Volume: 39 Year: 2010 Keywords: ASUS, absorptive capacity, business culture, innovation, X-DOI: 10.1080/1226508X.2010.513142 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.513142 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:3:p:291-315 Template-Type: ReDIF-Article 1.0 Author-Name: Chew Ging Lee Author-X-Name-First: Chew Ging Author-X-Name-Last: Lee Title: Outward Foreign Direct Investment and Economic Growth: Evidence from Japan Abstract: This article aims at analysing the role of foreign direct investment (FDI) outflows in economic performance and the impact of economic growth on outward FDI with the data from Japan. Bivariate and multivariate Granger causality frameworks have been used in this study. The results suggest that the conclusion of bivariate framework may not be valid because it allows omission of important variables. The results of the multivariate framework show that there is a long-run positive unidirectional causality from outward FDI to gross domestic product (GDP) per capita. In the short-run, both per capita income and outward FDI do not allow Granger causality. Journal: Global Economic Review Pages: 317-326 Issue: 3 Volume: 39 Year: 2010 Keywords: Causality, outward FDI, growth, X-DOI: 10.1080/1226508X.2010.513143 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.513143 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:3:p:317-326 Template-Type: ReDIF-Article 1.0 Author-Name: Sunghee Choi Author-X-Name-First: Sunghee Author-X-Name-Last: Choi Title: Estimating Exchange Rate Exposure of Trade-intensive Firms: Application to Korean Oil-refiners and Petrochemicals Abstract: The purpose of this paper is to empirically investigate exchange rate exposure of Korean oil-refining and petrochemical firms whose profit structure highly depends on exchange rate changes. The primary finding is that about 50% out of the total sample firms is significantly exposed to exchange rate changes when the changes are sizable. In terms of exchange rate type, a bilateral rate between US dollar and Korean won is found to be more effective for estimating significant exposure of the Korean oil-refiners and petrochemicals rather than an industry-specific exchange rate index. In addition, using the Fama and French decomposition approach, this paper finds exposure sensitivity factors with results that conglomerate affiliation, number of employees, or business scope diversification significantly lowers degree of exposure. Journal: Global Economic Review Pages: 327-348 Issue: 3 Volume: 39 Year: 2010 Keywords: Exchange rate exposure, Korean oil-refining and petrochemical firms, exposure sensitivity factors, X-DOI: 10.1080/1226508X.2010.513144 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.513144 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:3:p:327-348 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmad Zubaidi Baharumshah Author-X-Name-First: Ahmad Zubaidi Author-X-Name-Last: Baharumshah Author-Name: Venus Khim-Sen Liew Author-X-Name-First: Venus Khim-Sen Author-X-Name-Last: Liew Author-Name: Ron Mittelhammer Author-X-Name-First: Ron Author-X-Name-Last: Mittelhammer Title: Non-linearities in Real Interest Rate Parity: Evidence from OECD and Asian Developing Economies Abstract: This paper investigates the validity real interest rate parity (RIP) for a sample of 19 OECD and Asian developing economies. The distinction of this paper is that we exploit both linearity and non-linear unit root tests as advocated by Dufrenot et al. (Applied Economics, 38, pp. 203-229, 2006) to validate the parity. The major finding are: (i) the alignments from real interest rate differentials (RIDs) are corrected in a non-linear fashion and that the adjustments is asymmetric in both size and speed; (ii) that RIP holds for the developed and developing countries; and (iii) the empirical results are invariant with respect to the US, Japan or Germany as the centre country. Journal: Global Economic Review Pages: 351-364 Issue: 4 Volume: 39 Year: 2010 Keywords: Real interest rate differentials, non-linear, non-stationarity, capital mobility, market integration, X-DOI: 10.1080/1226508X.2010.533842 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.533842 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:4:p:351-364 Template-Type: ReDIF-Article 1.0 Author-Name: Chang-Soo Lee Author-X-Name-First: Chang-Soo Author-X-Name-Last: Lee Author-Name: Don Moon Author-X-Name-First: Don Author-X-Name-Last: Moon Title: Impacts of Sequential Free Trade Agreements in East Asia: A CGE and Political Economy Analysis Abstract: This paper estimates the economic impacts of the various sequential liberalization scenarios in East Asia, emphasizing the significance of the “sequence” of the liberalization process in computable general equilibrium (CGE) analysis. The major findings are as follows: (1) “Sequence” matters in measuring the economic impacts of free trade agreement (FTA) scenarios in the region; (2) Scenario 1 (Korea-China FTA → Korea-Japan FTA → China-Japan FTA) is the sequence maximizing Korea's economic gains, whereas Scenario 3 (Korea-China-Japan FTA) is the one most preferred economically by China and Japan; (3) Korea's FTAs with the United States (US) and European Union (EU) can be evaluated as a preemptive strategic move, causing changes in FTA preferences of Korea and Japan; (4) the prediction of Bond and Baldwin (adjustment cost and juggernaut effect) and that of Evenett et al. (trade diversion effect) are supported by the empirical results that Korea's (China's) expected gains from northeast Asian FTA sequences increase (decrease) after Korea's FTAs with the US and EU are made; (5) predictions about the International Political Economy (IPE) theories (power consideration and domestic politics) upon the sequential FTA formations in East Asia are consistent with the findings above. Journal: Global Economic Review Pages: 365-381 Issue: 4 Volume: 39 Year: 2010 Keywords: FTA sequence, East Asia, CGE, political economy, X-DOI: 10.1080/1226508X.2010.533846 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.533846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:4:p:365-381 Template-Type: ReDIF-Article 1.0 Author-Name: Chor Foon Tang Author-X-Name-First: Chor Foon Author-X-Name-Last: Tang Title: The Money-prices Nexus for Malaysia: New Empirical Evidence from the Time-varying Cointegration and Causality Tests Abstract: The main objective of this study is to empirically re-investigate the money-prices nexus for Malaysia through the Johansen multivariate cointegration and the modified Wald (MWALD) causality techniques. This study covered the monthly dataset from 1971:M1 to 2008:M11. The Johansen cointegration test suggests that the variables under investigation are co-move in the long run. Furthermore, the MWALD causality test shows a bidirectional causal relationship between money supply (M2) and aggregate prices, meaning that both the monetarist's and also the structuralists' views are vindicated in the Malaysian economy. However, the time-varying cointegration and causality tests indicate that the cointegrating and also the causal relationships are not stable over the analysis period. These results suggest that inflation in Malaysia is not purely a monetary phenomenon. Therefore, implementing a tighter monetary policy may not be an effective macro-economic instrument in managing the inflationary behaviour in the Malaysian economy. Journal: Global Economic Review Pages: 383-403 Issue: 4 Volume: 39 Year: 2010 Keywords: Cointegration, inflation, money, MWALD test, rolling regression, X-DOI: 10.1080/1226508X.2010.533849 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.533849 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:4:p:383-403 Template-Type: ReDIF-Article 1.0 Author-Name: Jangryoul Kim Author-X-Name-First: Jangryoul Author-X-Name-Last: Kim Title: Efficiency and Stability Issues in Monetary Policy Abstract: This paper quantitatively evaluates the relative importance of the efficiency and stabilization effects of monetary policy. While maximum efficiency in the spirit of Friedman advocates long-run deflation so that the nominal interest rate is zero, business cycle consideration requires positive long-run inflation so that the nominal interest rate can be adjusted for stabilization without encountering the zero bound. In an estimated DSGE model for the US economy that can generate both effects, we find that the welfare-maximizing monetary policy rule is characterized with a steady-state inflation rate of 0.12% per annum, significantly above the rate required for maximal efficiency and significantly below what is believed to have been targeted by the Federal Reserve. It is also found that, if the monetary authority tries to minimize typical loss functions comprising volatilities of macro variables such as output and inflation, the resultant policy rules are flawed: they lead to too high long-run inflation and too much policy activism, compared to rules that maximize welfare. Journal: Global Economic Review Pages: 405-430 Issue: 4 Volume: 39 Year: 2010 Keywords: Monetary policy, welfare, efficiency, stability, optimal rules, X-DOI: 10.1080/1226508X.2010.533851 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.533851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:4:p:405-430 Template-Type: ReDIF-Article 1.0 Author-Name: Alper Aslan Author-X-Name-First: Alper Author-X-Name-Last: Aslan Author-Name: Hakan Kum Author-X-Name-First: Hakan Author-X-Name-Last: Kum Title: An investigation of cointegration between energy consumption and economic growth: Dynamic evidence from East Asian countries Abstract: This paper aims to investigate the relationship between energy consumption and economic growth for 11 East Asian countries over the period 1971-2005 by taking into account their strong relationships. Based on fully modified ordinary least squares (FMOLS) and dynamic OLS (DOLS) approaches, while there exists a strong relation running from economic growth to energy consumption, it is observed that the strong relationship which runs from energy consumption to economic growth is overwhelmingly rejected for all cases except Indonesia and the Philippines. Moreover the inverse relation between two variables is observed for these two countries. Journal: Global Economic Review Pages: 431-439 Issue: 4 Volume: 39 Year: 2010 Keywords: Energy consumption, GDP, East Asian countries, FMOLS, DOLS, X-DOI: 10.1080/1226508X.2010.533852 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.533852 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:4:p:431-439 Template-Type: ReDIF-Article 1.0 Author-Name: George Emm Halkos Author-X-Name-First: George Emm Author-X-Name-Last: Halkos Author-Name: Nickolaos Tzeremes Author-X-Name-First: Nickolaos Author-X-Name-Last: Tzeremes Title: Corruption and Economic Efficiency: Panel Data Evidence Abstract: This paper investigates empirically the effect of corruption on countries' economic efficiency. By using a sample of 79 countries for the time period 2000-2006 the paper applies DEA window analysis and econometric panel data techniques. The results reveal that there is a U-shaped relationship between countries' corruption perception levels and economic efficiency. Furthermore, it appears that corruption has a negative effect on countries' economic efficiency. For the first time the turning points of such a relationship are being produced indicating that on average terms and regardless of countries' economic structure, Corruption Perception Index (CPI) above five initiate a positive effect on a countries' economic efficiency. Journal: Global Economic Review Pages: 441-454 Issue: 4 Volume: 39 Year: 2010 Keywords: Corruption Perception Index (CPI), economic efficiency, generalized least squares, DEA window analysis, X-DOI: 10.1080/1226508X.2010.533854 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2010.533854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:39:y:2010:i:4:p:441-454 Template-Type: ReDIF-Article 1.0 Author-Name: Mamoru Nagano Author-X-Name-First: Mamoru Author-X-Name-Last: Nagano Title: The Regional Effects of Quantitative Easing Monetary Policy in Japan: Evidence from Post-Crisis Firm Data Abstract: This paper investigates the factors that support a funding demand increase in regional economies under easing monetary conditions. The following results were empirically obtained on the basis of individual firms and the 47 regional data in the 2000s in Japan. The first result is that funding demand regionally increases where the relative size of private capital stock is large. This result suggests that industrial agglomeration complements easing monetary policy to induce regional funding demand. The second result is that regional banking soundness in lending markets also contributes to an increase in the funding demand. This suggests that another possible requirement of the money suppliers must be fulfilled to induce the regional funding demand. Journal: Global Economic Review Pages: 1-19 Issue: 1 Volume: 40 Year: 2011 Keywords: Regional policy, regional banking market, X-DOI: 10.1080/1226508X.2011.559322 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.559322 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Donghun Joo Author-X-Name-First: Donghun Author-X-Name-Last: Joo Title: Determinants of the Informal Sector and their Effects on the Economy: The Case of Korea Abstract: In this study we adopt a general equilibrium model with occupational choice and incomplete contract enforcement in order to evaluate the effects of policies to reduce the size of the informal economy. More concretely, we try to quantify the effects of tax, entry cost, and contract enforcement on output, income distribution, and tax revenue. The model is specifically calibrated to the Korean economy. Under the assumption of an endogenously determined interest rate, the effects of policies on total output are restrictive. However, the demand effect shows that entry cost and contract enforcement have significant potential influences on output. Lowering the tax rate increases income inequality in spite of the shrinkage in size of the informal sector. There is no Laffer curve effect when the tax rate is lowered, despite the broadened tax base. Lowering the entry cost turns out to be a viable policy option for reducing the size of the informal sector, as it reduces inequality and increases tax revenue effectively. Journal: Global Economic Review Pages: 21-43 Issue: 1 Volume: 40 Year: 2011 Keywords: Informal economy, occupational choice, financial enforcement, entry cost, tax, income distribution, Korean economy, X-DOI: 10.1080/1226508X.2011.559326 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.559326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:1:p:21-43 Template-Type: ReDIF-Article 1.0 Author-Name: Vijay Vemuri Author-X-Name-First: Vijay Author-X-Name-Last: Vemuri Author-Name: Shahid Siddiqi Author-X-Name-First: Shahid Author-X-Name-Last: Siddiqi Title: An Estimation of the Latent Bilateral Trade between India and Pakistan Using Panel Data Methods Abstract: The aim of this paper is to estimate the potential for trade between India and Pakistan, assuming a normalized neighborly relationship. We used an augmented gravity model with a panel data for 21 years. This paper utilizes the panel fixed effects decomposition and Hausman and Taylor estimation methods to estimate the effect of time-invariant variables on the volume of potential trade. The present volume of trade is dwarfed by our estimates of the potential trade. This seems to ratify the expectation of businesses on both sides. It would appear that the development of a bilateral relationship between India and Pakistan, in the context of regionalization, should be motivated by strong economic considerations. It would include sector-driven as well as market-access approaches. While the theoretical background appears subtle, strategic market consequences arise from the dynamics of regional market structure. Assuming a positive relationship between trade and per capita income, here is a peace dividend that is difficult to ignore in a regional environment of oppressive poverty. Journal: Global Economic Review Pages: 45-65 Issue: 1 Volume: 40 Year: 2011 Keywords: Bilateral trade, trade potential, gravity model, regionalism, multinational enterprise, X-DOI: 10.1080/1226508X.2011.559327 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.559327 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:1:p:45-65 Template-Type: ReDIF-Article 1.0 Author-Name: Akihiko Nakano Author-X-Name-First: Akihiko Author-X-Name-Last: Nakano Author-Name: Donghun Kim Author-X-Name-First: Donghun Author-X-Name-Last: Kim Title: Dynamics of Growth and Profitability: The Case of Japanese Manufacturing Firms Abstract: This study investigates interaction between firm growth and profitability using panel data on 1633 Japanese manufacturing firms for 1987-2007. Our estimation results generally confirm that firms face a trade-off between growth and profitability and show that, in Japanese manufacturing firms, the link between prior growth and current profits is much stronger than the link between prior profits and current growth. Therefore, the study confirms that current profits are a pre-requisite for future growth while excessive current growth is detrimental to future profits. It is found, however, that in some sectors, such as the automobile industry and the chemical industry, high growth and high profit rates can be achieved at the same time without damaging profitability. Journal: Global Economic Review Pages: 67-81 Issue: 1 Volume: 40 Year: 2011 Keywords: Firm growth, profitability, law of proportionate effects, persistence of profits, X-DOI: 10.1080/1226508X.2011.559329 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.559329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:1:p:67-81 Template-Type: ReDIF-Article 1.0 Author-Name: Ku-Hsieh Chen Author-X-Name-First: Ku-Hsieh Author-X-Name-Last: Chen Author-Name: Hao-Yen Yang Author-X-Name-First: Hao-Yen Author-X-Name-Last: Yang Title: Revealing the International Spillovers Structure of Innovation for Asian Region Abstract: The objective of this study aims to provide an overall revelation of the magnitude, frame, flow, and output creation effect of cross-national and cross-sectoral spillover of innovation within Asia. Methodologically, Dietzenbacher's framework for evaluating the innovative spillover effect is modified and extended to a cross-national and cross-sectoral context for accommodating this purpose, accompanied by the utilization of the Asian International I/O (AIO) table for the year 2000. Several results are thus achieved: (1) For the spillover structure, it is understood that the inter-sectoral dependence and vertical specialization in production serves as the nexus for the skeleton of rent spillover. (2) The extent of process innovative spillover is at a level of approximately 90%, while the extent of product innovative spillover is roughly in the 40-50% range. (3) On average, a 1% process innovation would create the total Asian output by a 0.0025-0.1387% margin, and a 1% product innovation would contribute 0.0010-0.0575% of the total output. (4) The United States, Japan, and China rank as the top three countries equipped with the capability of creating the most plentiful innovative spillover effect on the Asian region overall. (5) The United States and Japan still occupy the position of leading flying geese to date, while China might emerge as an industrial innovative leading flying goose in the near future. (6) Under the prerequisite of regional development, this study has tabulated the sector rankings according to the strength of overall spillover effect by country as a reference for tactically reallocating industrial and innovative policy from a regional development perspective. Journal: Global Economic Review Pages: 83-121 Issue: 1 Volume: 40 Year: 2011 Keywords: Innovation, spillover effect, IO table, X-DOI: 10.1080/1226508X.2011.559330 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.559330 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:1:p:83-121 Template-Type: ReDIF-Article 1.0 Author-Name: Young-Ryeol Park Author-X-Name-First: Young-Ryeol Author-X-Name-Last: Park Author-Name: Jeoung Yul Lee Author-X-Name-First: Jeoung Yul Author-X-Name-Last: Lee Author-Name: Sunghoon Hong Author-X-Name-First: Sunghoon Author-X-Name-Last: Hong Title: Location Decision of Korean Manufacturing FDI: A Comparison between Korean Chaebols and Non-Chaebols Abstract: This study analysed the location selection determinants of Korean foreign direct investment (KFDI) from the perspectives of OLI paradigm and resource- and knowledge-based views. The study involved a sample of 1911 Korean multinational enterprises (MNEs) and their 3095 foreign subsidiaries during the period of 1999-2004. Specifically, the study compared the differences of foreign direct investment (FDI) location decisions (1) between less-developed and developed countries (LDCs and DCs) and (2) between chaebols and non-chaebols. The results showed that the partitioned sample model of chaebols versus non-chaebols was found to have more detailed effects on the location decision between the two regions than the combined full sample model. In addition, the results showed that there are clear, effectual differences for subsidiary scale and prior host country experience between chaebols and non-chaebols. Journal: Global Economic Review Pages: 123-138 Issue: 1 Volume: 40 Year: 2011 Keywords: Korean multinational enterprise (MNE), location decision, foreign direct investment (FDI), chaebol versus non-chaebol, X-DOI: 10.1080/1226508X.2011.559332 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.559332 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:1:p:123-138 Template-Type: ReDIF-Article 1.0 Author-Name: Jang-Sup Shin Author-X-Name-First: Jang-Sup Author-X-Name-Last: Shin Title: Finance and Economic Development in China: An Introduction Abstract: Journal: Global Economic Review Pages: 141-143 Issue: 2 Volume: 40 Year: 2011 X-DOI: 10.1080/1226508X.2011.585051 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.585051 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:2:p:141-143 Template-Type: ReDIF-Article 1.0 Author-Name: Kang Chen Author-X-Name-First: Kang Author-X-Name-Last: Chen Author-Name: Jang-Sup Shin Author-X-Name-First: Jang-Sup Author-X-Name-Last: Shin Title: The Pattern of Financing Industrialization in China: Understanding Sources of Fixed Investment Abstract: This paper explains a puzzling feature of China's industrial financing, i.e., an extremely low share of domestic loans and an unusually high share of 'self-raised funds and others' in a developing country. After an overview of historical patterns of financial industrialization in other countries, it looks into the details of sources of industrial finance in China and suggests some explanations on the country's unique pattern of financing industrialization based on data available. It also discusses implications to the future of China's industrial financing. Journal: Global Economic Review Pages: 145-160 Issue: 2 Volume: 40 Year: 2011 Keywords: China, finance, industrialization, informal market, X-DOI: 10.1080/1226508X.2011.585052 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.585052 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:2:p:145-160 Template-Type: ReDIF-Article 1.0 Author-Name: Charles Kwong Author-X-Name-First: Charles Author-X-Name-Last: Kwong Title: China's Banking Reform: The Remaining Agenda Abstract: Since 1994, China has endeavoured to establish a banking system that works more closely to commercial principles by transforming the specialized banks (SBs) into state-owned commercial banks (SOCBs). However, lending decisions of the SOCBs were still determined by state directives instead of profitability consideration. This paper argues that although the post-WTO banking reforms have accomplished staggering results, China's SOCBs need an overhaul of ownership structure if China aims to develop a full-fledged market-based banking system. It also argues that the current banking reforms are not comprehensive enough to sustain China's long-term economic development because there still remain noticeable capital constraints facing small- and medium-sized private enterprises, particularly those in rural areas. Journal: Global Economic Review Pages: 161-178 Issue: 2 Volume: 40 Year: 2011 Keywords: Chinese banks, state-owned commercial banks (SOCBs), banking reform, ownership reform, rural finance, X-DOI: 10.1080/1226508X.2011.585056 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.585056 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:2:p:161-178 Template-Type: ReDIF-Article 1.0 Author-Name: Ziliang Deng Author-X-Name-First: Ziliang Author-X-Name-Last: Deng Author-Name: Honglin Guo Author-X-Name-First: Honglin Author-X-Name-Last: Guo Author-Name: Guilan Kong Author-X-Name-First: Guilan Author-X-Name-Last: Kong Title: Efficiency Spillovers of Foreign Direct Investment in the Chinese Banking System Abstract: This research suggests that the efficiency spillovers of foreign banks in China have played an integral role in transforming the fragile banking system into a relatively robust one. Stochastic frontier analysis is employed to analyze the efficiency of the Chinese banks during 2001-2007 with the data of 126 banks. The study suggests that the presence of foreign banks has helped improve the overall profitability of the Chinese banks and has also effectively constrained the scale of loans. The findings manifest the importance of efficiency spillovers which can be brought to an economy in transition by cautious financial liberalization. Journal: Global Economic Review Pages: 179-191 Issue: 2 Volume: 40 Year: 2011 Keywords: Commercial bank, efficiency, spillover, foreign direct investment, stochastic frontier analysis, X-DOI: 10.1080/1226508X.2011.585053 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.585053 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:2:p:179-191 Template-Type: ReDIF-Article 1.0 Author-Name: Chen-Jui Huang Author-X-Name-First: Chen-Jui Author-X-Name-Last: Huang Title: Equity Financing and the Pecking Order Hypothesis in the Emerging Market: Evidence from Taiwan's Relocated Firms in China (TRFC) Abstract: This article examines two datasets of Taiwan's relocated firms in China (TRFC) and discusses the pros and cons of equity financing alternatives as well as cross-sectional heterogeneity and inter-temporal dynamics in the pecking order of capital structure. On-site listing, regardless of the board chosen, appears a sustainable approach for TRFC to expand in the emerging market of the Mainland. The pecking order hypothesis is mostly supported by evidence from moderately leveraged TRFC as variables are kept unscaled by net book assets, and the role of asymmetric information is confirmed from findings using sub-samples specified by firm size. Journal: Global Economic Review Pages: 193-210 Issue: 2 Volume: 40 Year: 2011 Keywords: Equity financing, pecking order hypothesis, emerging market, Taiwan, China, X-DOI: 10.1080/1226508X.2011.585055 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.585055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:2:p:193-210 Template-Type: ReDIF-Article 1.0 Author-Name: Barry Eichengreen Author-X-Name-First: Barry Author-X-Name-Last: Eichengreen Author-Name: Hui Tong Author-X-Name-First: Hui Author-X-Name-Last: Tong Title: The Impact of Chinese Exchange Rate Policy on the Rest of the World: Evidence from Firm-Level Data Abstract: This paper aims to gauge the global effect of renminbi revaluation on stock markets. Using data on 12,300 firms in operating in tradable sectors in 44 economies, we find that expectations of renminbi appreciation reduce the relative stock returns of firms providing components or raw materials to China as inputs for that country's exports. We also find some evidence that expectations of renminbi appreciation reduce the stock prices of financially constrained firms. Journal: Global Economic Review Pages: 211-225 Issue: 2 Volume: 40 Year: 2011 Keywords: China, exchange rate, firms, rest of the world, X-DOI: 10.1080/1226508X.2011.585054 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.585054 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:2:p:211-225 Template-Type: ReDIF-Article 1.0 Author-Name: Siti Nurazira Mohd Daud Author-X-Name-First: Siti Nurazira Author-X-Name-Last: Mohd Daud Author-Name: Jan M. Podivinsky Author-X-Name-First: Jan M. Author-X-Name-Last: Podivinsky Title: An Accumulation of International Reserves and External Debt: Evidence from Developing Countries Abstract: Abstract The main analytical contribution of this paper is to analyze the cost of the decision to jointly hold reserves and sovereign debt. By analyzing the impact of holding reserves and sovereign debt on sovereign credit ratings will provide the evidence of the costs of holding reserves and debt with respect to credit risk. It is found that the positive effect of accumulation reserves that aims to improve sovereign ratings has been crowding-out by the negative effect of accumulation external debt which resulted in a net negative effect. As such, it is suggested that countries reduce their sovereign debt in order to maintain a good credit risk position while holds international reserves at the optimal level of 3.67 in a month of imports which is slightly higher than the conventional rule. Journal: Global Economic Review Pages: 229-249 Issue: 3 Volume: 40 Year: 2011 Month: 9 X-DOI: 10.1080/1226508X.2011.601626 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.601626 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:3:p:229-249 Template-Type: ReDIF-Article 1.0 Author-Name: Zhuo Qiao Author-X-Name-First: Zhuo Author-X-Name-Last: Qiao Author-Name: Weiwei Qiao Author-X-Name-First: Weiwei Author-X-Name-Last: Qiao Author-Name: Wing-Keung Wong Author-X-Name-First: Wing-Keung Author-X-Name-Last: Wong Title: Examining the Day-of-the-Week Effects in Chinese Stock Markets: New Evidence from a Stochastic Dominance Approach Abstract: Abstract Many researchers have investigated the existence of day-of-the-week effects in different financial markets. However, they have usually adopted a parametric approach, which is known to have a few limitations. This paper adopts a non-parametric stochastic dominance (SD) approach to examine the day-of-the-week effects in Chinese stock markets. In contrast to the extensive evidence of day-of-the-week effects disclosed by a parametric mean-variance (MV) approach, our SD tests show that the day-of-the-week effect is much weaker. We find that there are only Wednesday effects in Chinese A-share and B-share stock markets. Journal: Global Economic Review Pages: 251-267 Issue: 3 Volume: 40 Year: 2011 Month: 9 X-DOI: 10.1080/1226508X.2011.601628 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.601628 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:3:p:251-267 Template-Type: ReDIF-Article 1.0 Author-Name: Fadzlan Sufian Author-X-Name-First: Fadzlan Author-X-Name-Last: Sufian Author-Name: Muzafar Shah Habibullah Author-X-Name-First: Muzafar Shah Author-X-Name-Last: Habibullah Title: Opening the Black Box on Bank Efficiency in China: Does Economic Freedom Matter? Abstract: Abstract The paper provides, for the first time, empirical evidence on the impact of economic freedom on bank efficiency in a developing economy. We employ the Data Envelopment Analysis method to compute the efficiency of the Chinese banking sector during 2000--2008. The empirical findings indicate that the inefficiency of the Chinese banking sector stems largely from scale rather than pure technical. By examining different dimensions of economic freedom, we find that not all are equally regressive on bank efficiency. We find that the impact of business freedom to be positive, implying that higher (lower) freedom for entrepreneurs to start businesses increases (reduces) bank efficiency. Similarly, monetary freedom is positively related to bank efficiency levels, indicating the importance of a stable and reliable monetary policy to business environment. On the other hand, the impact of financial freedom is negative, implying that higher (lower) financial freedom reduces (increases) the efficiency of banks operating in the Chinese banking sector. Journal: Global Economic Review Pages: 269-298 Issue: 3 Volume: 40 Year: 2011 Month: 9 X-DOI: 10.1080/1226508X.2011.601633 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.601633 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:3:p:269-298 Template-Type: ReDIF-Article 1.0 Author-Name: Gieyoung Lim Author-X-Name-First: Gieyoung Author-X-Name-Last: Lim Author-Name: Chong-Uk Kim Author-X-Name-First: Chong-Uk Author-X-Name-Last: Kim Title: The Role of Human Capital in Networks Effects: Evidence from US Exports Abstract: Abstract Previous literature suggested that immigrants have a positive impact on international transactions such as exports. However, even though previous studies emphasize the role of individual and families in enhancing networks effects, none of these studies, surprisingly, have considered the heterogeneity of immigrants. Since each individual has different social and educational backgrounds, the impact of immigrants on exports may differ among individuals depending on their personal attributes. The main contribution of this paper is to go one step further in discussing the role of immigrants in enhancing host country exports. This research attempts to answer the question of whether all immigrants encourage host country exports or not. Using US state-level data, we find that the human capital level of immigrants plays an important role in enhancing US exports. Furthermore, using the data-sorting method developed by Hansen, we find that immigrants from countries with a high level of human capital increase US exports while immigrants from countries with a low level of human capital do not. Journal: Global Economic Review Pages: 299-313 Issue: 3 Volume: 40 Year: 2011 Month: 9 X-DOI: 10.1080/1226508X.2011.601637 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.601637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:3:p:299-313 Template-Type: ReDIF-Article 1.0 Author-Name: Jaiho Chung Author-X-Name-First: Jaiho Author-X-Name-Last: Chung Title: Endogenous Lobbying and Protection under Monopolistic Competition Abstract: Abstract This paper studies the “Protection for Sale” model in the setting of monopolistic competition drawing on the quadratic sub-utility model. This model generates two new findings: (1) the average cross-price elasticity, in particular, only among foreign varieties in a sector negatively influences the level of protection; (2) the total number of domestic varieties over one of the foreign varieties in a sector, a new proxy for political power of domestic lobby groups in that sector, positively influences the level of protection. Journal: Global Economic Review Pages: 315-322 Issue: 3 Volume: 40 Year: 2011 Month: 9 X-DOI: 10.1080/1226508X.2011.601640 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.601640 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:3:p:315-322 Template-Type: ReDIF-Article 1.0 Author-Name: Magda Kandil Author-X-Name-First: Magda Author-X-Name-Last: Kandil Author-Name: Ida Aghdas Mirzaie Author-X-Name-First: Ida Aghdas Author-X-Name-Last: Mirzaie Title: Consumption, Credit, and Macroeconomic Policies: Theory and Evidence from the United States Abstract: Abstract The paper examines determinants of private consumption in the USA. The empirical model includes disposable income, the University of Michigan consumer sentiment index, the interest rate, and the real effective exchange rate. Anticipated movements in these determinants are likely to affect planned consumption, while unanticipated changes determine cyclical consumption. Fluctuations in private consumption are mostly cyclical with respect to changes in disposable income and the consumers’ sentiment index. In contrast, an increase in the interest rate decreases both planned and cyclical consumption. Fiscal policy has a direct negative effect on cyclical consumption, which is not dependent on the interest rate. Monetary growth, in contrast, increases liquidity to finance both planned and cyclical private consumption. Journal: Global Economic Review Pages: 323-360 Issue: 3 Volume: 40 Year: 2011 Month: 9 X-DOI: 10.1080/1226508X.2011.601645 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.601645 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:3:p:323-360 Template-Type: ReDIF-Article 1.0 Author-Name: Soo-Wah Low Author-X-Name-First: Soo-Wah Author-X-Name-Last: Low Author-Name: Si-Roei Kew Author-X-Name-First: Si-Roei Author-X-Name-Last: Kew Author-Name: Lain-Tze Tee Author-X-Name-First: Lain-Tze Author-X-Name-Last: Tee Title: International Evidence on the Link between Quality of Governance and Stock Market Performance Abstract: Abstract This paper examines the link between country-level governance and global stock market returns. We find a negative relation between governance quality and equity return. Countries with low governance scores, on average, have higher equity returns than those with high governance scores after controlling for global risk factors known to influence international equity returns. This implies that investors associate low governance quality with increased risk and thus demand higher risk premium. We find that the quality of governance as measured by Political Stability and Absence of Violence is key governance dimension affecting international equity returns, suggesting that heightened investor concerns over political risks have profound impact on equity markets. Interestingly, we find no evidence that variation in equity returns is affected by the governance indicator representing Voice and Accountability. The findings of this study provide important policy implications. Journal: Global Economic Review Pages: 361-384 Issue: 3 Volume: 40 Year: 2011 Month: 9 X-DOI: 10.1080/1226508X.2011.601646 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.601646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:3:p:361-384 Template-Type: ReDIF-Article 1.0 Author-Name: Dan Lee Author-X-Name-First: Dan Author-X-Name-Last: Lee Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Sean Chae Author-X-Name-First: Sean Author-X-Name-Last: Chae Title: Measuring Social Capital in East Asia and Other World Regions: Index of Social Capital for 72 Countries Abstract: Abstract Critics opine that social capital, despite its importance, provides little empirical insight because it is difficult to measure. This paper develops a broad measure of social capital, incorporating four major components: social trust, norms, social networks, and social structure. We constructed an index of social capital for 72 countries by extracting the principal components from 44 variables. Consistent with the social capital literature, the index of social capital is significantly associated with various social and economic indicators, such as income per capita, education, infant mortality, regulatory quality and even happiness. We compare the levels of social capital between East Asia and other world regions. The results suggest that although the level of social capital varies widely across countries, East Asia has markedly less social capital than Western Europe or North America. Journal: Global Economic Review Pages: 385-407 Issue: 4 Volume: 40 Year: 2011 Month: 12 X-DOI: 10.1080/1226508X.2011.626149 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.626149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:4:p:385-407 Template-Type: ReDIF-Article 1.0 Author-Name: Wenkai Sun Author-X-Name-First: Wenkai Author-X-Name-Last: Sun Author-Name: Xianghong Wang Author-X-Name-First: Xianghong Author-X-Name-Last: Wang Title: Liquidity Constraints, the Composition of Government Expenditure, and Economic Growth Abstract: Abstract This paper examines the impacts of liquidity constraints on economic growth and social welfare by incorporating the role of government expenditure into the overlapping-generations model developed by Jappelli and Pagano in 1990s. In our model, the government can provide funds to the young faced with liquidity constraints. Our theoretical findings are as follows: (1) with exogenous technical progress, liquidity constraints on households raise the saving rate; (2) with endogenous technical progress, liquidity constraints and economic growth rate show an inverted U-shaped relationship; (3) with both exogenous and endogenous technical progress, the steady state per capita income first increases and then declines with the increase of liquidity constraints. Our empirical analysis with cross-country data supported this conclusion; (4) given certain values of the model parameters, social welfare in steady state may decrease with the reduction of liquidity constraints. Journal: Global Economic Review Pages: 409-419 Issue: 4 Volume: 40 Year: 2011 Month: 12 X-DOI: 10.1080/1226508X.2011.626150 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.626150 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:4:p:409-419 Template-Type: ReDIF-Article 1.0 Author-Name: Chun-Ping Chang Author-X-Name-First: Chun-Ping Author-X-Name-Last: Chang Author-Name: Chien-Chiang Lee Author-X-Name-First: Chien-Chiang Author-X-Name-Last: Lee Author-Name: Meng-Chi Hsieh Author-X-Name-First: Meng-Chi Author-X-Name-Last: Hsieh Title: Globalization, Real Output and Multiple Structural Breaks Abstract: Abstract This paper adopts an advanced panel cointegration method which incorporates multiple structural breaks to examine the long-run relationship between real output (RGDP) and the Konjunkturforschungsstelle (KOF) index of globalization (overall and its three main sub-indices), employing annual data of G7 countries from 1970 to 2006. Our empirical findings provide strong evidence that overall globalization and its social dimension are cointegrated with RGDP, and most of the structural break points are discovered during the period of the oil crisis (the mid-1970s) and the process of European Union integration. In addition, in evaluating whether or not the structural breaks affect the RGDP through globalization, we discover that both the overall globalization index and the social globalization index have a directly positive impact on RGDP but indirectly exhibit negative impacts on real output via the channel of social globalization. Journal: Global Economic Review Pages: 421-444 Issue: 4 Volume: 40 Year: 2011 Month: 12 X-DOI: 10.1080/1226508X.2011.626154 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.626154 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:4:p:421-444 Template-Type: ReDIF-Article 1.0 Author-Name: Mansor H. Ibrahim Author-X-Name-First: Mansor H. Author-X-Name-Last: Ibrahim Title: Level and Volatility of Stock Prices and Aggregate Investment: The Case of Thailand Abstract: The present paper analyzes the aggregate investment behaviour for Thailand and its relations to real stock prices and stock market volatility. In the analysis, we focus on their long run relations as well as their dynamic causal interactions by means of time series techniques of cointegration and vector autoregression (VAR). Our basic framework consists of real aggregate investment, real output, lending rate, real stock prices and stock market volatility. We obtain evidence for their long run relation and that, in the long run, real aggregate investment is positively related to real stock prices and negatively related to the stock market volatility.The generalized impulse-response functions (IRF) generated from the VAR also paint similar picture in that the real aggregate investment reacts positively to shocks in real stock prices and negatively to innovations in stock market volatility. These results tend to be robust when we extend the framework to include alternatively real credits, real effective exchange rate and real government spending. Journal: Global Economic Review Pages: 445-461 Issue: 4 Volume: 40 Year: 2011 Month: 12 X-DOI: 10.1080/1226508X.2011.626155 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.626155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:4:p:445-461 Template-Type: ReDIF-Article 1.0 Author-Name: Taeha Kim Author-X-Name-First: Taeha Author-X-Name-Last: Kim Author-Name: Beomsoo Kim Author-X-Name-First: Beomsoo Author-X-Name-Last: Kim Title: Regulatory Policies and Business Strategies on Patent Protection: A General Model and Cases for the East Asian Economy Abstract: This paper proposes a general framework of patent protection which can be applied to most existing theories, and can be used to resolve various issues regarding the protection of information technology (IT)-enabled innovations, especially those involving business methods (BMs) and software. We suggest that one should consider that firms have many strategic choices or mixtures of appropriate combinations of innovations, examine different combinations of menu components rather than focusing on well-explored policies, revise market assumptions to make them more realistic and capture the complexity of policy-strategy assumptions by applying methodologies, such as experiments, system dynamics and intelligent agent theory. The work explores how these innovations are protected using the cases in the East Asian economy and find out that software and BMs are better protected in the nations that enforce strong patent rights. Journal: Global Economic Review Pages: 463-481 Issue: 4 Volume: 40 Year: 2011 Month: 12 X-DOI: 10.1080/1226508X.2011.626157 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.626157 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:4:p:463-481 Template-Type: ReDIF-Article 1.0 Author-Name: Ho-Don Yan Author-X-Name-First: Ho-Don Author-X-Name-Last: Yan Author-Name: Yu-Chen Kuo Author-X-Name-First: Yu-Chen Author-X-Name-Last: Kuo Author-Name: Shan-Yu Chen Author-X-Name-First: Shan-Yu Author-X-Name-Last: Chen Title: Entrepreneurship and an Apprentice-based Cluster: The Evolution of Houli's Saxophone Cluster in Taiwan Abstract: This paper analyses the relationship between entrepreneurship and an industrial cluster in general, by particularly examining one of Taiwan's industrial clusters, Houli's saxophone cluster. Our purpose is threefold. First, instead of investigating high-profile and chiefly government-directed clusters, such as science parks, we focus on a small and medium enterprise (SME) cluster. Second, unlike most studies that usually show how clusters foster entrepreneurship, we emphasize the role of entrepreneurship in the formation of the cluster industry. We discuss how a skilled artisan turns into an entrepreneur and how an apprentice-based cluster is formed. Third, we show that what used to be the competitive advantages of Houli's saxophone cluster -- a peculiar apprentice-based cluster and the supportive precision machine agglomeration in central Taiwan -- turn into its weaknesses when globalization surged in the 1980s. A three-year stint in government support, attempting to revitalize Houli's saxophone cluster by organizing a functional network and improving the technology, was unable to overturn the challenges from globalization. Although entrepreneurs learn to adapt to the changing environment, the current lackluster performance of Houli's saxophone industry demonstrates that regardless of how much glory there was in the past, it is inevitable in a “living” economy that a cluster cannot avoid its own ebb and flow. Journal: Global Economic Review Pages: 483-502 Issue: 4 Volume: 40 Year: 2011 Month: 12 X-DOI: 10.1080/1226508X.2011.626163 File-URL: http://hdl.handle.net/10.1080/1226508X.2011.626163 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:40:y:2011:i:4:p:483-502 Template-Type: ReDIF-Article 1.0 Author-Name: Eric M.P. Chiu Author-X-Name-First: Eric M.P. Author-X-Name-Last: Chiu Author-Name: Sirathorn B.J. Dechsakulthorn Author-X-Name-First: Sirathorn B.J. Author-X-Name-Last: Dechsakulthorn Author-Name: Stefanie Walter Author-X-Name-First: Stefanie Author-X-Name-Last: Walter Author-Name: Joshua C. Walton Author-X-Name-First: Joshua C. Author-X-Name-Last: Walton Author-Name: Thomas D. Willett Author-X-Name-First: Thomas D. Author-X-Name-Last: Willett Title: The Discipline Effects of Fixed Exchange Rates: Constraint versus Incentive Effects and the Distinction between Hard and Soft Pegs Abstract: There has been much interest in whether fixed exchange rates can provide a strong source of discipline over domestic monetary and fiscal policies. We argue that previous studies, however, have not paid sufficient attention to the distinction between constraint and incentive effects and that these operate quite differently for hard and soft fixes. Using annual data for 31 emerging and 32 developing countries during 1990--2003, our analysis implies that hard fixes should have much stronger discipline effects on money growth and inflation and our empirical study supports their prediction. Our theoretical analysis suggests that neither hard nor soft fixes are likely to provide strong discipline over fiscal policy and this is confirmed by our empirical analysis as well. Journal: Global Economic Review Pages: 1-31 Issue: 1 Volume: 41 Year: 2012 Month: 3 X-DOI: 10.1080/1226508X.2012.655026 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.655026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:1:p:1-31 Template-Type: ReDIF-Article 1.0 Author-Name: Jong-Hee Kim Author-X-Name-First: Jong-Hee Author-X-Name-Last: Kim Author-Name: Ki-Young Park Author-X-Name-First: Ki-Young Author-X-Name-Last: Park Author-Name: Taeyoon Sung Author-X-Name-First: Taeyoon Author-X-Name-Last: Sung Title: Does Fiscal Policy Help Those Who Need It Most? Evidence from the US and the Eurozone Abstract: With a notion that the eurozone does not have a fiscal federalist system, we analyze the effectiveness of fiscal policy at the country level of the eurozone and the state level of the US. Our empirical analysis shows that, not like the case of the US, the role of fiscal policy for counteracting regional income shocks is far weaker in low-income countries in the eurozone. In addition, the contagion effect of fiscal crises in the eurozone is stronger and this effect becomes stronger in the eurozone after the establishment of the European Union. Our finding provides empirical evidence for fiscal problems in a single-currency area without a fiscal federalist system. Journal: Global Economic Review Pages: 33-54 Issue: 1 Volume: 41 Year: 2012 Month: 10 X-DOI: 10.1080/1226508X.2012.655027 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.655027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:1:p:33-54 Template-Type: ReDIF-Article 1.0 Author-Name: Mohsen Bahmani-Oskooee Author-X-Name-First: Mohsen Author-X-Name-Last: Bahmani-Oskooee Author-Name: Hanafiah Harvey Author-X-Name-First: Hanafiah Author-X-Name-Last: Harvey Title: US--Malaysia Trade at Commodity Level and the Role of the Real Exchange Rate Abstract: Previous studies that were concerned with the impact of depreciation of the ringgit on the Malaysian trade balance employed data either between Malaysia and rest of the world or between Malaysia and each of her major trading partners. Specifically, the bilateral trade balance between Malaysia and the US is shown to be insensitive to the real bilateral ringgit--dollar rate. In this article we wonder if disaggregating trade flows between Malaysia and the US by commodity could help us to discover any significant effects that the real exchange rate could have. We consider 101 industries that export from US to Malaysia and 17 industries that import from Malaysia. While majority of the industries showed short-run sensitivity to the real bilateral exchange rate, short-run effects lasted into the long run almost in half of the industries in both group. Journal: Global Economic Review Pages: 55-75 Issue: 1 Volume: 41 Year: 2012 Month: 3 X-DOI: 10.1080/1226508X.2012.655028 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.655028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:1:p:55-75 Template-Type: ReDIF-Article 1.0 Author-Name: Junhee Lee Author-X-Name-First: Junhee Author-X-Name-Last: Lee Author-Name: Joonhyuk Song Author-X-Name-First: Joonhyuk Author-X-Name-Last: Song Title: Oil and Small Open Macroeconomy: A case of Korea Abstract: The world oil price has risen significantly since the late 1990s and reached a record high in 2008. The recent oil price hike raises concerns regarding the possible negative effects of the rising oil price on the economy as in the 1970s. We investigate the effects of the oil price hike on the Korean economy using a Bayesian dynamic stochastic general equilibrium (DGSE) model. We explicitly model the small open economy nature of the Korean economy and its oil usage and estimate the constructed model within a unified Bayesian framework. We also examine possible changes in the effects of world oil shocks on the Korean economy using counterfactual simulations. We find the adverse effects of world oil shocks as well as their importance in Korean business cycles have diminished due to reductions in the relative usage of crude oil in the economy, while world oil shocks themselves have changed relatively little over time. Journal: Global Economic Review Pages: 77-95 Issue: 1 Volume: 41 Year: 2012 Month: 3 X-DOI: 10.1080/1226508X.2012.655029 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.655029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:1:p:77-95 Template-Type: ReDIF-Article 1.0 Author-Name: Biru Paksha Paul Author-X-Name-First: Biru Paksha Author-X-Name-Last: Paul Title: Output relationships of China and India with the USA: How do the Asian giants respond to America? Abstract: With the advent of globalization, China and India, the two emerging giants of the world, are being integrated with the US, the leading economy, more than ever before. Hence, examining output relationships among them becomes necessary. This work finds a long run cointegrating relationship in output among these countries. The US economy remains exogenous in the short run error correction mechanism, but China and India correct any deviations from this equilibrium relationship. While theory expects a positive response of China and India to an output shock in America, India, and China respond in a significantly negative fashion to the US economy, as found in impulse responses. The US explains a major share of output variance in these Asian economies, but the reverse is not true. These findings have policy implications not only for India and China, but also for other developing nations that are growing fast through globalization and embracing further integration with the US economy. Journal: Global Economic Review Pages: 97-110 Issue: 1 Volume: 41 Year: 2012 Month: 12 X-DOI: 10.1080/1226508X.2012.655030 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.655030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:1:p:97-110 Template-Type: ReDIF-Article 1.0 Author-Name: Natàlia Valls Author-X-Name-First: Natàlia Author-X-Name-Last: Valls Author-Name: Helena Chuliá Author-X-Name-First: Helena Author-X-Name-Last: Chuliá Title: Volatility Transmission and Correlation Analysis between the USA and Asia: The Impact of the Global Financial Crisis Abstract: This paper examines volatility transmission and conditional correlations behaviour between the US and the Asian stock markets considering the effect of the Global Financial crisis. One Asian mature market and 10 emerging markets are included in the sample. To carry out the analysis, we use a multivariate asymmetric GARCH model. Results show that there exists volatility transmission between the US and the Asian markets. Moreover, it is found that, after the crisis, volatility transmission patterns have barely changed. Finally, results suggest that the lower the country‘s level of development, the lower the correlation with the USA. Journal: Global Economic Review Pages: 111-129 Issue: 2 Volume: 41 Year: 2012 Month: 6 X-DOI: 10.1080/1226508X.2012.686476 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.686476 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:2:p:111-129 Template-Type: ReDIF-Article 1.0 Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Author-Name: Donghun Kim Author-X-Name-First: Donghun Author-X-Name-Last: Kim Title: Mark-ups and Rent Sharing: The Case of Korean Manufacturing Firms Abstract: This article estimates firm mark-ups to evaluate market competition in Korean manufacturing industries for the period of 1982--2004 and analyzes how the mark-ups differ across industry sectors. For the manufacturing sector as a whole, our results lead us to reject the null hypothesis of a competitive market, although market imperfection varies across industry sectors. Meanwhile, the parameter for union bargaining power over firm profit was much smaller than those found in the previous studies and insignificant in some industry sectors. Our firm-level results indicate that intra-industry variation in mark-ups and returns to scale is greater than inter-industry variation as shown in the sector analysis. Also, we find that mark-ups respond counter-cyclically to aggregate demand shocks and that the magnitudes of responses differ from industry to industry. Journal: Global Economic Review Pages: 131-145 Issue: 2 Volume: 41 Year: 2012 Month: 6 X-DOI: 10.1080/1226508X.2012.684466 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.684466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:2:p:131-145 Template-Type: ReDIF-Article 1.0 Author-Name: Seref Bozoklu Author-X-Name-First: Seref Author-X-Name-Last: Bozoklu Author-Name: Sinem Kutlu Author-X-Name-First: Sinem Author-X-Name-Last: Kutlu Title: Linear and Nonlinear Cointegration of Purchasing Power Parity: Further Evidence from Developing Countries Abstract: In this study, we search for evidence of empirical validity of long-run purchasing power parity (PPP) in case of eight developing countries. We consider both a linear and non-linear model of PPP based on cointegration analysis and apply firstly Johansen's linear approach and then conduct Breitung's rank and score tests to search for any non-linear cointegrating relationship. The results obtained from Breitung's rank test suggest that once the sources of non-linearities are taken into account, the results provide stronger evidence on the empirical fulfillment of PPP. Journal: Global Economic Review Pages: 147-162 Issue: 2 Volume: 41 Year: 2012 Month: 6 X-DOI: 10.1080/1226508X.2012.684470 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.684470 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:2:p:147-162 Template-Type: ReDIF-Article 1.0 Author-Name: Insook Cho Author-X-Name-First: Insook Author-X-Name-Last: Cho Title: The Retirement Consumption in Korea: Evidence from the Korean Labor and Income Panel Study Abstract: This paper examines the retirement consumption in Korea using the Korean Labor and Income Panel Study. This paper reports a significant post-retirement consumption fall among elderly households. The empirical results of this paper suggest that a reduction in work-related expenses is an important factor to explain the observed post-retirement consumption fall. In addition, this paper finds that the post-retirement consumption growth rate varies depending on each household's pre-retirement wealth level. The findings of this paper provide empirical evidence on retirement consumption in an emerging market with no matured public pension programmes. Journal: Global Economic Review Pages: 163-187 Issue: 2 Volume: 41 Year: 2012 Month: 6 X-DOI: 10.1080/1226508X.2012.684472 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.684472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:2:p:163-187 Template-Type: ReDIF-Article 1.0 Author-Name: Ching-Chuan Tsong Author-X-Name-First: Ching-Chuan Author-X-Name-Last: Tsong Author-Name: Cheng-Feng Lee Author-X-Name-First: Cheng-Feng Author-X-Name-Last: Lee Title: Re-examining the Fisher Effect: An Application of Small Sample Distributions of the Covariate Unit Root Test Abstract: This article employs the covariate unit root test proposed by Elliott and Jansson to investigate the stationarity properties of real interest rates. Instead of blindly trusting the asymptotic distribution of the test, we extend Rudebusch's method to estimate its finite sample distributions under the null and alternative hypotheses. With these distributions, we can obtain the probabilities that the test statistic comes from the null and alternative hypotheses, and quantify the asymptotic size as well as the test power for each specific series. Our simulation experiments show that first, due to the higher power raised by the inclusion of covariates, the test can overwhelmingly reject the unit root null for the 16 industrialized countries; secondly, the Ng and Perron tests deliver lower powers in most countries, and thus lead to the false conclusion of non-stationary real interest rates. Finally, allowing for multiple endogenous breaks in the real interest rates provides only stationary evidence in half of the 16 countries. Journal: Global Economic Review Pages: 189-207 Issue: 2 Volume: 41 Year: 2012 Month: 6 X-DOI: 10.1080/1226508X.2012.686477 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.686477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:2:p:189-207 Template-Type: ReDIF-Article 1.0 Author-Name: Chandan Sharma Author-X-Name-First: Chandan Author-X-Name-Last: Sharma Author-Name: Ritesh Kumar Mishra Author-X-Name-First: Ritesh Kumar Author-X-Name-Last: Mishra Title: Is an Optimum Currency Area Feasible in East and South East Asia? Abstract: In the backdrop of the recent economic crisis in the European Union, this study attempts to assess the degree of regional integration and the suitability of a monetary union in the East and South-East Asian (ESEA) region. For this purpose, we analyse the issue in a variety of ways. First, a long-run linkage of real output of the countries is tested using the cointegration analysis. Results suggest that real output of most of the countries in the region is cointegrated and move together in the long-run. To analyse the issue in detail, we focus on the impact of three different shocks, namely global, regional and country-specific, on real output of the countries. Results of impulse response and variance decomposition analysis reveal that regional shocks do not dominate in the sample countries, which is an indication of unfavourable condition to form an optimal currency area (OCA) in the region. These results are further confirmed by the outcome of computation of the modified Bayoumi and Eichengreen's Indices. Finally, we employ the concept of Generalized Purchasing Power Parity (G-PPP), which however reveals that the bilateral real exchange rate of ESEA countries move together in the long-run and share a common stochastic trend, which in turn provides some empirical support for an OCA in the region. Journal: Global Economic Review Pages: 209-232 Issue: 3 Volume: 41 Year: 2012 Month: 9 X-DOI: 10.1080/1226508X.2012.709991 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.709991 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:3:p:209-232 Template-Type: ReDIF-Article 1.0 Author-Name: Bhaskar Goswami Author-X-Name-First: Bhaskar Author-X-Name-Last: Goswami Author-Name: Ranjanendra Narayan Nag Author-X-Name-First: Ranjanendra Narayan Author-X-Name-Last: Nag Title: Macroeconomics of Agricultural Trade Liberalization Abstract: In this article a macroeconomic model is built to examine interactions between the agricultural sector and the industrial sector in an emerging market economy. This article examines how monetary shock and real shocks produce agricultural price fluctuations and change in employment through multiple cross effects. Monetary shocks result in overshooting of primary commodity price while real shock in terms of rise in the production of primary commodity mitigates the volatility of primary price. Journal: Global Economic Review Pages: 233-242 Issue: 3 Volume: 41 Year: 2012 Month: 9 X-DOI: 10.1080/1226508X.2012.709992 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.709992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:3:p:233-242 Template-Type: ReDIF-Article 1.0 Author-Name: Jeong Ho Kwak Author-X-Name-First: Jeong Ho Author-X-Name-Last: Kwak Author-Name: Bong Gyou Lee Author-X-Name-First: Bong Gyou Author-X-Name-Last: Lee Title: How the Rapid Development of VoIP Technologies Affects Consumer Welfare and the Market Abstract: The impact of Voice over Internet Protocol (VoIP) growth on other telecommunication services, such as landlines and mobile telephony, has gained significant interest in Korea recently. An emerging alternative to landline telecommunications, VoIP is experiencing explosive growth in demand and is providing significant economic utility to consumers. The rapid growth of smart phones has also created a considerable amount of controversy regarding the potential impact of VoIP on the mobile phone market. This study provides quantitative estimations of consumer surplus for landline, mobile and VoIP services in the Korean telecommunications market using monthly call data from January of 2006 to June of 2009, a period when VoIP services grew rapidly. Empirical analyses are conducted to estimate consumer surplus based on the demand functions of each telecommunication service. Additional analyses are conducted on consumer surplus change as well. Policy implications for the rapid growth of VoIP and its impact on consumer surplus change are also discussed. Journal: Global Economic Review Pages: 243-257 Issue: 3 Volume: 41 Year: 2012 Month: 9 X-DOI: 10.1080/1226508X.2012.709993 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.709993 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:3:p:243-257 Template-Type: ReDIF-Article 1.0 Author-Name: Tze-Haw Chan Author-X-Name-First: Tze-Haw Author-X-Name-Last: Chan Author-Name: Chee-Wooi Hooy Author-X-Name-First: Chee-Wooi Author-X-Name-Last: Hooy Title: Malaysia--China in the Liberalization Era: Structural Modelling of International Parity Conditions and Transmission Mechanism Abstract: We construct a structural system that jointly examines Purchasing Power and Interest Parity conditions for Malaysia--China during 1996Q1--2010Q4. Structural VARX, VECMX, over-identifying restrictions, bootstrapping and persistent profiles are utilized in the analyses. We find support for interaction between the goods and capital markets of Malaysia--China, when Asia crisis and sub-prime crisis are taken into accounts. The faster pace of adjustment towards price instead of interest equilibrium implies the non-appearance of sequencing problem in economic integration. Nevertheless, it is of concern that maintaining a rigid foreign exchange with major trading partner could be costly with potentially contagious price instability and financial risk. Journal: Global Economic Review Pages: 259-277 Issue: 3 Volume: 41 Year: 2012 Month: 9 X-DOI: 10.1080/1226508X.2012.709994 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.709994 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:3:p:259-277 Template-Type: ReDIF-Article 1.0 Author-Name: Burcu Kiran Author-X-Name-First: Burcu Author-X-Name-Last: Kiran Title: Integration of Long-Term Interest Rates: Empirical Evidence for G7 Countries Abstract: This article investigates the fractional cointegration relationship between long-term interest rates of G7 countries over the period from 1990:01 to 2010:04 by estimating the cointegrating regressions for possible bivariate, trivariate and four-variate subsystems as well as the full system. The obtained results indicate that long-term interest rates are fractionally cointegrated for bivariate subsystems of Canada--France, Canada--Japan and Canada--UK and four-variate subsystem of Canada--USA--France--UK, implying integration. Journal: Global Economic Review Pages: 279-290 Issue: 3 Volume: 41 Year: 2012 Month: 9 X-DOI: 10.1080/1226508X.2012.709995 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.709995 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:3:p:279-290 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas D. Willett Author-X-Name-First: Thomas D. Author-X-Name-Last: Willett Title: Global Imbalances and Financial Stability Journal: Global Economic Review Pages: 293-297 Issue: 4 Volume: 41 Year: 2012 Month: 12 X-DOI: 10.1080/1226508X.2012.738780 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.738780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:4:p:293-297 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Bird Author-X-Name-First: Graham Author-X-Name-Last: Bird Title: Dealing with Global Economic Imbalances: The Political Economy of Policy Coordination Abstract: Global economic imbalances are not a new phenomenon. However, in the aftermath of the global financial and economic crisis in 2008/2009, they have become a matter of increased concern to the international community as reflected by the IMF and G20. They are seen as having contributed to causing the crisis. What can be done to reduce the imbalances? Attention has focused on the idea of internationally coordinating macroeconomic policy. This article assesses policy coordination from both a technical, but more particularly, a political economy angle. It concludes that the scope for formal and detailed policy coordination is strictly limited because of the underlying political constraints. The article examines alternative ways of dealing with global imbalances and offers a prognosis based on political economy considerations. Journal: Global Economic Review Pages: 299-317 Issue: 4 Volume: 41 Year: 2012 Month: 12 X-DOI: 10.1080/1226508X.2012.738781 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.738781 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:4:p:299-317 Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Hughes Hallett Author-X-Name-First: Andrew Hughes Author-X-Name-Last: Hallett Author-Name: Juan Carlos Martinez Oliva Author-X-Name-First: Juan Carlos Martinez Author-X-Name-Last: Oliva Title: Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls Abstract: This paper addresses the issue of international payments in a stock-flow framework, by capturing the interaction between the current account balance and international assets portfolios of domestic and foreign investors. It is argued that the stability of such interactions may be affected by shifts in the preferences of investors, by the relative rate of return of different assets and -- more generally -- by institutional settings. The model is then used for policy analysis purposes in order to derive the conditions for the existence of dynamic equilibria, and if they can be attained, under the assumption of various market-distorting policy choices. Journal: Global Economic Review Pages: 319-340 Issue: 4 Volume: 41 Year: 2012 Month: 12 X-DOI: 10.1080/1226508X.2012.738783 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.738783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:4:p:319-340 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas D. Willett Author-X-Name-First: Thomas D. Author-X-Name-Last: Willett Author-Name: Eric M. P. Chiu Author-X-Name-First: Eric M. P. Author-X-Name-Last: Chiu Title: Power Relationships and the Political Economy of Global Imbalances Abstract: Large global economic and financial imbalances have already contributed to the global financial crisis and the euro zone crisis. A substantial retreat into protectionism may be generated. Huge current account surpluses and deficits have caused economic and financial dislocations in both emerging and advanced economies. In this paper, we argue that such global problem is a result of domestic political pressures that generate strong incentives for governments to postpone needed policy adjustments and the inability of international power relationships to force such adjustments prior to the outbreak of crises. Our analysis leads to the pessimistic conclusion that the pressures from both the public and private sector to bring about substantial policy adjustments before a crisis breaks out are quite weak. In the case of U.S.-China economic imbalances, we find that although China does not have a major policy objective to maintain large current account surpluses as would be implied by the frequent charges that China is practicing mercantilism, political polarization in the USA might make it almost impossible to secure agreement on effective actions. In the case of euro crisis, nor are we optimistic that euro zone will undertake any time soon the types of forceful policy actions necessary to bring the euro crisis under control. Journal: Global Economic Review Pages: 341-360 Issue: 4 Volume: 41 Year: 2012 Month: 12 X-DOI: 10.1080/1226508X.2012.738782 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.738782 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:4:p:341-360 Template-Type: ReDIF-Article 1.0 Author-Name: Wenkai Sun Author-X-Name-First: Wenkai Author-X-Name-Last: Sun Title: The Evolutionary Pattern of Global Imbalance: Evidence from Cross Country Data from 1970 to 2010 Abstract: In this article, we emphasize that net foreign asset (NFA) is an important indicator that can nicely reflect global imbalance and has not received enough attention. We use a representative data-set to examine how the NFA varies with the development stages of different countries. We also investigate the determinants of NFA and the composition of external asset and liability. We have obtained some important findings. First, the change of NFA follows an inverse U-shaped curve with the increase of gross domestic product (GDP) per capita. This means that the most-watched global imbalance may decrease with economic development in the future. Second, industrial structure, openness to international market, inflation, development of domestic financial market and public debt are important factors that affect the ratio of NFA/GDP and compositions of external asset and liability. Third, the NFA/GDP ratio in China is currently at the early stage of the inverse U-shaped curve and is expected to decrease in the future. As for the compositions of external asset and liability, China is holding too much asset in the form of foreign exchange reserves (FER) and too much liability in the form of foreign direct investment (FDI). In contrast to some existing views, we believe that the restrictions on capital mobility, rather than NFA, affect the composition of external asset and liability. This study sheds some light on the imbalance issue and the corresponding policy-making. Journal: Global Economic Review Pages: 361-377 Issue: 4 Volume: 41 Year: 2012 Month: 12 X-DOI: 10.1080/1226508X.2012.738784 File-URL: http://hdl.handle.net/10.1080/1226508X.2012.738784 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:41:y:2012:i:4:p:361-377 Template-Type: ReDIF-Article 1.0 Author-Name: Mohsen Bahmani-Oskooee Author-X-Name-First: Mohsen Author-X-Name-Last: Bahmani-Oskooee Author-Name: Abera Gelan Author-X-Name-First: Abera Author-X-Name-Last: Gelan Title: Are Devaluations Contractionary in Africa? Abstract: As far as the impact of devaluation on domestic production is concerned, African countries have not received much attention in the literature. One study that used panel data arrived at a general conclusion that devaluations are contractionary in Africa. In this paper, we consider the experience of 22 African countries with devaluation and use time series data to show that devaluations are indeed expansionary in eight countries and contractionary in five countries. In the remaining countries, they have no effect. Journal: Global Economic Review Pages: 1-14 Issue: 1 Volume: 42 Year: 2013 Month: 3 X-DOI: 10.1080/1226508X.2013.769798 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.769798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:1:p:1-14 Template-Type: ReDIF-Article 1.0 Author-Name: Qichun He Author-X-Name-First: Qichun Author-X-Name-Last: He Author-Name: Meng Sun Author-X-Name-First: Meng Author-X-Name-Last: Sun Title: Does Financial Reform Promote the Inflow of FDI? Evidence from China's Panel Data Abstract: This paper empirically tests whether the host country's financial reform promotes the inflow of foreign direct investment (FDI). We test the hypothesis on the reform period Chinese provincial yearly panel data. The system generalized method of moments (GMM) estimation shows that the effect of financial reform on inward FDI to GDP ratios is not statistically significant after controlling for other variables and time and province effects. Consistent with the previous studies, market size and openness to international trade have significant effects on the FDI/GDP ratio in both Least squares dummy variables and system GMM estimations. Journal: Global Economic Review Pages: 15-28 Issue: 1 Volume: 42 Year: 2013 Month: 3 X-DOI: 10.1080/1226508X.2013.769800 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.769800 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:1:p:15-28 Template-Type: ReDIF-Article 1.0 Author-Name: Keun Lee Author-X-Name-First: Keun Author-X-Name-Last: Lee Author-Name: Jinyoung Kim Author-X-Name-First: Jinyoung Author-X-Name-Last: Kim Author-Name: Junbyoung Oh Author-X-Name-First: Junbyoung Author-X-Name-Last: Oh Author-Name: Kyoo-ho Park Author-X-Name-First: Kyoo-ho Author-X-Name-Last: Park Title: Economics of Intellectual Property in the Context of a Shifting Innovation Paradigm: A Review from the Perspective of Developing Countries Abstract: This paper discusses how the evolving nature of innovation has affected the way Intellectual Property Right (IPR) regime has affected economic growth in developing countries. Focusing more on utilization rather than protection of IPs for human society, it argues that the linkages from protection of knowledge to innovation incentives should be given more priority at the later stage of economic development when developing countries reach a certain level of technological capabilities. Despite the loose or open linkage between IP protection and economic growth, strong IP enforcement can still seriously decrease the catching-up probability of latecomer firms, especially small and medium-sized enterprises (SMEs). The lawsuits by patent trolls may be more damaging because cross-licensing or patent pooling strategy is not available at all as a settlement option. Thus, latecomer firms are facing heavier challenges than before, especially the SMEs with limited financial and human resources. In such circumstance, there can be a case for the active role of public policies and interventions. Journal: Global Economic Review Pages: 29-42 Issue: 1 Volume: 42 Year: 2013 Month: 3 X-DOI: 10.1080/1226508X.2013.769801 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.769801 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:1:p:29-42 Template-Type: ReDIF-Article 1.0 Author-Name: Eu Chye Tan Author-X-Name-First: Eu Chye Author-X-Name-Last: Tan Author-Name: Chor Foon Tang Author-X-Name-First: Chor Foon Author-X-Name-Last: Tang Title: The Extent of Growth Dependence of Selected East Asian Economies on the USA Abstract: This paper assesses the extent of economic growth dependence of a number of East Asian countries on the USA based upon the quarterly data series spanning from the early 1990s. Generally, the empirical results suggest weak links of these economies to the US contrary to a-priori expectations. Only the GDP of Taiwan has a long-run relationship with the USA. Though Granger causal links from the USA to Japan, Malaysia, the Philippines and Taiwan exist, they are projected as weak by the impulse response functions. Co-integration and short-run causal links with the USA are ruled out in the case of China, Hong Kong, South Korea, Singapore and Thailand. Contemporaneous correlations of output growth shocks merely exist between the USA on one hand and Indonesia and Taiwan on the other. Hence, all this would suggest that these East Asian economies are generally in a position to grow quite independently of the USA, barring a global economic crisis. Nevertheless, they should strive for greater resilience by raising domestic consumption so that they need not always count on countercyclical macroeconomic policy measures to provide a buffer against external shocks. Journal: Global Economic Review Pages: 43-54 Issue: 1 Volume: 42 Year: 2013 Month: 3 X-DOI: 10.1080/1226508X.2013.769802 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.769802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:1:p:43-54 Template-Type: ReDIF-Article 1.0 Author-Name: Kwang Hwan Kim Author-X-Name-First: Kwang Hwan Author-X-Name-Last: Kim Author-Name: Munechika Katayama Author-X-Name-First: Munechika Author-X-Name-Last: Katayama Title: Housing, Wealth Effects, and Monetary Policy Abstract: This paper examines the role that wealth effects on labour supply play in a two-sector sticky-price model that includes non-durables and housing. Careful analysis of a two-sector sticky-price model reveals that whether there are wealth effects on labour supply fundamentally changes the nature of the model in a way that has not been fully appreciated. In the presence of wealth effects on labour supply, as Barsky et al. study demonstrate, the pricing of housing is central to the behaviour of the model, whereas price rigidity in the non-durable goods sector is much less important. In the absence of these wealth effects, by contrast, the behaviour of the model depends critically on whether the non-durable goods, not the new housing, themselves have sticky prices. Journal: Global Economic Review Pages: 55-71 Issue: 1 Volume: 42 Year: 2013 Month: 3 X-DOI: 10.1080/1226508X.2013.769815 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.769815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:1:p:55-71 Template-Type: ReDIF-Article 1.0 Author-Name: Soo-Wah Low Author-X-Name-First: Soo-Wah Author-X-Name-Last: Low Author-Name: Yi-Bing Chin Author-X-Name-First: Yi-Bing Author-X-Name-Last: Chin Title: Refinements to the Sharpe Ratio -- Evidence from Malaysian Equity Funds Abstract: We apply M-squared measure to evaluate the performance of Malaysian equity funds. Specifically, we show how financial leverage can be applied to increase the returns or to reduce the risk exposures of funds. Several alternative refinements to the original Sharpe ratio are also employed to evaluate the funds during periods of negative excess returns. We find that modified versions of Sharpe measure generally lead to similar performance rankings as the original Sharpe ratio. Our findings imply that while Sharpe ratio has experienced several methodological improvements, its basic underlying concept remains remarkably intact. Journal: Global Economic Review Pages: 72-97 Issue: 1 Volume: 42 Year: 2013 Month: 3 X-DOI: 10.1080/1226508X.2013.769818 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.769818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:1:p:72-97 Template-Type: ReDIF-Article 1.0 Author-Name: Kazunobu Hayakawa Author-X-Name-First: Kazunobu Author-X-Name-Last: Hayakawa Author-Name: Hyun-Hoon Lee Author-X-Name-First: Hyun-Hoon Author-X-Name-Last: Lee Author-Name: Donghyun Park Author-X-Name-First: Donghyun Author-X-Name-Last: Park Title: The Role of Home and Host Country Characteristics in FDI: Firm-Level Evidence from Japan, Korea and Taiwan Abstract: There is a large and growing empirical literature that investigates the determinants of outward foreign direct investment (FDI). This literature examines primarily the effect of host country characteristics on FDI even though home country characteristics also influence the decision of firms to invest abroad. In this paper, we examine the role of both host and home country characteristics in FDI. To do so, we constructed a firm-level database of outward FDI from Japan, Korea and Taiwan. Our empirical analysis yields two main findings. First, host countries with better environment for FDI, in terms of larger market size, smaller fixed entry costs and lower wages, attract more foreign investors. Second, firms from home countries with higher wages are more likely to invest abroad. An interesting and significant policy implication of our empirical evidence is that policy-makers seeking to promote FDI inflows should prioritize countries with higher wages. Journal: Global Economic Review Pages: 99-112 Issue: 2 Volume: 42 Year: 2013 Month: 6 X-DOI: 10.1080/1226508X.2013.791470 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.791470 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:2:p:99-112 Template-Type: ReDIF-Article 1.0 Author-Name: Kaoru Natsuda Author-X-Name-First: Kaoru Author-X-Name-Last: Natsuda Author-Name: Noriyuki Segawa Author-X-Name-First: Noriyuki Author-X-Name-Last: Segawa Author-Name: John Thoburn Author-X-Name-First: John Author-X-Name-Last: Thoburn Title: Liberalization, Industrial Nationalism, and the Malaysian Automotive Industry Abstract: This paper examines the attempts by Malaysia to foster production by national automotive producers in a global industry dominated by a small number of major multinationals. Despite the use of a wide range of industrial policies, both standard import-substituting ones and more targeted policies, the main national producer, Proton, has been unable successfully to enter the automotive global value chain. We argue that Malaysia is probably faced with a choice of accepting foreign majority ownership, as with its second national producer, Perodua, or reconciling itself to Proton lagging in both technology and marketing. Journal: Global Economic Review Pages: 113-134 Issue: 2 Volume: 42 Year: 2013 Month: 6 X-DOI: 10.1080/1226508X.2013.791475 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.791475 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:2:p:113-134 Template-Type: ReDIF-Article 1.0 Author-Name: Doyeon Kim Author-X-Name-First: Doyeon Author-X-Name-Last: Kim Author-Name: Taehyun Kim Author-X-Name-First: Taehyun Author-X-Name-Last: Kim Author-Name: Taeyoon Sung Author-X-Name-First: Taeyoon Author-X-Name-Last: Sung Title: The Role of Intra-Conglomerate Equity Investment: Evidence from Korean Business Groups Abstract: This paper demonstrates that group-affiliated firms have financial attributes that are different from those of stand-alone firms and suggests that these differences are consistent with ex-post consequences of receiving equity investment (EI) in business groups. Therefore, intra-group EI serves as an important driver of these differences. The paper verifies the results by considering the case of Korea's EI regulation. EI recipients invest more, but are less profitable than firms receiving no such investment. Group-affiliated firms reduce their dividend payout and short-term debt after receiving EI. Finally, recipients increase capital investment when they perceive their EI to be persistent, and those receiving massive EI use funds differently from those receiving normal EI. The results suggest that massive EI may involve ownership-related intentions, not financial support. Journal: Global Economic Review Pages: 135-167 Issue: 2 Volume: 42 Year: 2013 Month: 6 X-DOI: 10.1080/1226508X.2013.791473 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.791473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:2:p:135-167 Template-Type: ReDIF-Article 1.0 Author-Name: Chung-Hui Lai Author-X-Name-First: Chung-Hui Author-X-Name-Last: Lai Title: Trade Union and Global Economic Growth Abstract: This paper develops a simple framework for examining the role of unions in a global economy. It builds on the model of different institutions by comparing America with a flexible wage and Europe with a rigid wage (the existence of union), where the two areas are integrated via perfect capital mobility. We find the necessary condition that the degree of wage orientation of the union is larger than the firm's bargaining power and determines the positive direction on global economic growth. In addition, the effect of union's bargaining power on global economic growth is ambiguous. If the sum of the elasticity of substitution between capital and labour and the output elasticity of labour is smaller than one, or the firms are characterized by a Leontief production function (Harrod--Domar growth model) or an extremely low substituting elasticity (much empirical literature is supported), the union's bargaining power will lead to an increase in the growth of the global economy. In the general Cobb--Douglas production function (Solow--Swan neoclassical growth model), the union's bargaining power will result in a decline in the growth of the global economy. Journal: Global Economic Review Pages: 168-181 Issue: 2 Volume: 42 Year: 2013 Month: 6 X-DOI: 10.1080/1226508X.2013.791474 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.791474 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:2:p:168-181 Template-Type: ReDIF-Article 1.0 Author-Name: Magda Kandil Author-X-Name-First: Magda Author-X-Name-Last: Kandil Title: Exchange Rate Variability and the Macro-economy: Evidence from Developing and Developed Countries Abstract: Using annual data, the paper studies the time-series evidence regarding the allocation of fluctuations in the exchange rate between demand components, real growth, and price inflation in a sample of developing and advanced countries. The evidence reveals patterns of interaction between the macro-economy and exchange rate variability. Across developing countries, appreciation decreases the cost of imports and price inflation, while depreciation shrinks the output supply, indicating high dependency on imported goods. The reduction in output supply correlates with higher inflation and an increase in the import value. In contrast, the evidence of the negative effect of currency appreciation on output growth is more prevalent across advanced countries, while depreciation stimulates competitiveness, resulting in higher demand for exports, investment and consumption. Across developing countries, exchange rate variability decreases trend real growth and increases trend price inflation. Across advanced countries, exchange rate variability decreases trend real growth while increasing the variability of price inflation and import growth. Minimizing variability of the exchange rate would be beneficial to sustain higher growth and reduce cyclical variability in developing and advanced countries. Journal: Global Economic Review Pages: 182-214 Issue: 2 Volume: 42 Year: 2013 Month: 6 X-DOI: 10.1080/1226508X.2013.791471 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.791471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:2:p:182-214 Template-Type: ReDIF-Article 1.0 Author-Name: Zaidi Author-X-Name-First: Author-X-Name-Last: Zaidi Author-Name: Karim Author-X-Name-First: Author-X-Name-Last: Karim Author-Name: Azman-Saini Author-X-Name-First: Author-X-Name-Last: Azman-Saini Title: Foreign and Domestic Shocks: Macroeconomic Responses of ASEAN-3 Countries Abstract: The study provides new empirical evidence on the relative importance of foreign and domestic shocks on selected ASEAN-3 (Malaysia, Indonesia, and Thailand) macroeconomic variables. Three structural vector auto regression models are estimated for each country. The focal point is given on the formulation of the sources of foreign factors. The first model uses trade-weighted foreign variables of both US and Japan to represent the foreign factors. The other two models use US and Japan by themselves, respectively, to represent the foreign factors. Two important results are emerged. First, foreign sectors play an important role in influencing macroeconomic variables of each of the ASEAN-3 country, especially in the medium and the long-run horizon. Second, most of the time, the Japanese factors are more dominant than the US factors in influencing domestic output and inflation for each of the ASEAN-3 countries. Journal: Global Economic Review Pages: 215-237 Issue: 3 Volume: 42 Year: 2013 Month: 9 X-DOI: 10.1080/1226508X.2013.835900 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.835900 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:3:p:215-237 Template-Type: ReDIF-Article 1.0 Author-Name: Bessey Author-X-Name-First: Author-X-Name-Last: Bessey Title: Religion and Educational Attainment in East Asia: First Evidence from the East Asian Social Survey Abstract: In this research note, I analyse the effects of religion on educational attainment in four East Asian countries (China, Japan, Korea and Taiwan) using the East Asian Social Survey. Controlling for a host of background variables, ordinary least squares (OLS) estimates of educational attainment show that Catholics and Orthodox Christians have on average more education than those with no religious affiliation, while the followers of other Eastern religions (including, among others, Taoism and syncretistic beliefs) have on average less education. The effects for Protestantism and Buddhism differ across the four different countries, probably because they both include various denominations and schools. Journal: Global Economic Review Pages: 238-250 Issue: 3 Volume: 42 Year: 2013 Month: 9 X-DOI: 10.1080/1226508X.2013.833844 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.833844 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:3:p:238-250 Template-Type: ReDIF-Article 1.0 Author-Name: Lee Author-X-Name-First: Author-X-Name-Last: Lee Title: How Does Social Capital Reduce the Size of the Shadow Economy? Abstract: This paper investigates the missing link between multi-dimensional components of social capital and the size of the shadow economy, an association generally considered to be ambiguous. A simple agency model shows that social capital and the shadow economy are connected through a mechanism reducing the perceived level of corruption. Using a sample of 65 countries, 1999 to 2007, the paper finds that social trust, social norms (e.g. tax morale), and a broad index of social capital are robust, negative determinants of the shadow economy. Journal: Global Economic Review Pages: 251-268 Issue: 3 Volume: 42 Year: 2013 Month: 9 X-DOI: 10.1080/1226508X.2013.833846 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.833846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:3:p:251-268 Template-Type: ReDIF-Article 1.0 Author-Name: Zulkhibri Author-X-Name-First: Author-X-Name-Last: Zulkhibri Title: Corporate Investment Behaviour and Monetary Policy: Evidence from Firm-level Data for Malaysia Abstract: Using a panel data-set of over 900 listed firms in Malaysia for the period 1991--2010, this paper examines the empirical evidence on the credit channel of the monetary transmission mechanism within the framework of corporate investment. The results suggest that monetary policy significantly impacts the firms' access to external finance during times of increasing interest rates, in particular, bank-dependent firms are the most vulnerable firms. The firms' investment sensitivity on external financing explains the relatively underdeveloped capital market and the prominent role played by the banking sector for capital allocation in the Malaysian economy. Internal finance is more important for high leverage firms during tight liquidity conditions. Journal: Global Economic Review Pages: 269-290 Issue: 3 Volume: 42 Year: 2013 Month: 9 X-DOI: 10.1080/1226508X.2013.833847 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.833847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:3:p:269-290 Template-Type: ReDIF-Article 1.0 Author-Name: Aw Author-X-Name-First: Author-X-Name-Last: Aw Author-Name: Song Author-X-Name-First: Author-X-Name-Last: Song Title: Firm's Choice between Export and R&D and its Effect on the Firm's Productivity and Survival Abstract: This paper examines the nature and process of technology upgrade among firms in South Korea and the underlying productivity dynamics by using micro panel data. In this paper, we see important aspects of the firm's behaviour on improving its productivity through internal and external knowledge creation activities represented by research and development (R&D) and export, respectively. Our results indicate that the level of a firm's productivity plays an important role in determining its decision on R&D investment and export. In addition, a firm's experiences involved exporting and/or investment in R&D increase the probability of its current decision on export and/or R&D investment. Firms that either export or invest in R&D show significantly high productivity level than other firms that do not involve in any of two activities. Furthermore, firms that export and invest in R&D simultaneously are more likely to have higher productivity than firms that only participate in one of two activities. These findings are consistent with the hypothesis of compounding effects of two types of knowledge creations, R&D and export. Journal: Global Economic Review Pages: 291-310 Issue: 3 Volume: 42 Year: 2013 Month: 9 X-DOI: 10.1080/1226508X.2013.833848 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.833848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:3:p:291-310 Template-Type: ReDIF-Article 1.0 Author-Name: Shin Author-X-Name-First: Author-X-Name-Last: Shin Title: New Economic Architectures after the Global Financial Crisis and Their Implications in East Asia Journal: Global Economic Review Pages: 311-313 Issue: 4 Volume: 42 Year: 2013 Month: 12 X-DOI: 10.1080/1226508X.2013.860706 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.860706 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:4:p:311-313 Template-Type: ReDIF-Article 1.0 Author-Name: Cohen Author-X-Name-First: Author-X-Name-Last: Cohen Author-Name: Shin Author-X-Name-First: Author-X-Name-Last: Shin Title: Positive Feedback Trading Under Stress: Evidence from the US Treasury Securities Market Abstract: A vector autoregression (VAR) is estimated on tick-by-tick data for quote-changes and signed trades of 2-year, 5-year and 10-year on-the-run US Treasury notes. Confirming the results found by Hasbrouck and others for the stock market, signed order flow tends to exert a strong effect on prices. More interestingly, however, there is often a strong effect in the opposite direction, particularly at times of volatile trading. Price declines elicit sales and price increases elicit purchases. An examination of tick-by-tick trading on an especially volatile day confirms this finding. At least in the US Treasury market, trades and price movements appear likely to exhibit positive feedback at short horizons, particularly during periods of market stress. This suggests that the standard analytical approach to the microstructure of financial markets, which focuses on the ways in which the information possessed by informed traders becomes incorporated into market prices through order flow, should be complemented by an account of how price changes affect trading decisions. Journal: Global Economic Review Pages: 314-345 Issue: 4 Volume: 42 Year: 2013 Month: 12 X-DOI: 10.1080/1226508X.2013.860707 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.860707 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:4:p:314-345 Template-Type: ReDIF-Article 1.0 Author-Name: Noh Author-X-Name-First: Author-X-Name-Last: Noh Title: BASEL III Counterparty Risk and Credit Value Adjustment: Impact of the Wrong-way Risk Abstract: During the financial crisis of 2007 through 2010, BIS estimated that two-thirds of the loss of the financial institutions was due to credit valuation adjustment (CVA). The CVA is the marked-to-market price of credit products which involve counterparties. Hence, in BASEL III, banks are required to capture and allocate CVA capital and wrong-way risk (WWR). In this paper, we show that BASEL III CVA capital charge increases as the credit rating of the counterparty deteriorates. We also show that the extreme WWR can increase the BASEL III CVA charge by 30 times in Davis and Pistorius model. Journal: Global Economic Review Pages: 346-361 Issue: 4 Volume: 42 Year: 2013 Month: 12 X-DOI: 10.1080/1226508X.2013.860708 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.860708 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:4:p:346-361 Template-Type: ReDIF-Article 1.0 Author-Name: Choi Author-X-Name-First: Author-X-Name-Last: Choi Title: The Global Financial Crisis Revisited: Competition and Regulation Abstract: Using data of the systematic banking crises from 1981 to 2008, we examine how competition and regulation are related to the crises. We find that countries with higher concentration and/or higher market power of the banking industry are less prone to crises. Further, they are more likely to have weathered the 2008 global financial crisis. However, regulatory and institutional factors play little role and the estimation results are shown to be sensitive to measures of the degree of competition or severity of the crisis, as well as the coverage of the crises. Journal: Global Economic Review Pages: 362-381 Issue: 4 Volume: 42 Year: 2013 Month: 12 X-DOI: 10.1080/1226508X.2013.860709 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.860709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:4:p:362-381 Template-Type: ReDIF-Article 1.0 Author-Name: Hyun Author-X-Name-First: Author-X-Name-Last: Hyun Author-Name: Yoshino Author-X-Name-First: Author-X-Name-Last: Yoshino Title: Identification of Systemically Important Financial Institutions and Implications for Financial Architecture in Korea Abstract: The global financial crisis has put a spotlight on concerns about financial system stability. Currently, there are discussions about how to identify systemically important financial institutions (SIFIs) and how to strengthen regulatory measures for these SIFIs. Against the backdrop, this study aims to identify SIFIs by measuring inter-sectoral financial transactions with the flow of funds (FOF) account as a measure of interconnectedness. The empirical results show that banks or insurance companies can be SIFIs only in terms of size. However, foreign banks' branches (FBB) and credit-specialized institutions can also be SIFIs in terms of interconnectedness. Especially the systemic importance of FBB in Korea has increased considering the fact that financial crisis in Korea resulted mainly from foreign exchange market. Therefore, more specific discussions and regulatory measures for SIFIs will be required from the perspective of capital market development and Korea's situation. Journal: Global Economic Review Pages: 382-395 Issue: 4 Volume: 42 Year: 2013 Month: 12 X-DOI: 10.1080/1226508X.2013.860710 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.860710 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:4:p:382-395 Template-Type: ReDIF-Article 1.0 Author-Name: Ha Author-X-Name-First: Author-X-Name-Last: Ha Author-Name: So Author-X-Name-First: Author-X-Name-Last: So Title: Influence of the Banks' Money Mediation Behavior on the Monetary Policy: A Study of Korean Case Abstract: This paper analyses how financial institutions' arbitrary intermediation behaviors, including adjustments in bank lending and deposit rates, influence monetary policy transmission channels. For the analysis, we develop a New Keynesian Dynamic Stochastic General Equilibrium (NK DSGE) model with parameters estimated to fit the Korean conditions. The role of banks is subsequently examined by classifying monetary policy transmission channels (real rate channel, nominal debt channel, financial accelerating channel, and banking attenuator channel). A notable part of this analysis is the inclusion of the banking sector in the model specifically with the intent to study transmissions from the financial sector to the real economy. This paper follows this line of inquiry with recent research in mind. Empirical analysis verifies the existence of the banking attenuator effect in Korea, which means banks act to reduce the effect of monetary policies. This indicates that if financial intermediaries strengthen arbitrary adjustment behaviors of lending and deposit rates, the effect of the monetary policy intended to relieve volatility in the business cycle may not be as high as expected. Journal: Global Economic Review Pages: 396-424 Issue: 4 Volume: 42 Year: 2013 Month: 12 X-DOI: 10.1080/1226508X.2013.860711 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.860711 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:4:p:396-424 Template-Type: ReDIF-Article 1.0 Author-Name: Lee Author-X-Name-First: Author-X-Name-Last: Lee Author-Name: Yi Author-X-Name-First: Author-X-Name-Last: Yi Author-Name: Park Author-X-Name-First: Author-X-Name-Last: Park Title: Impact of the Global Financial Crisis on the Degree of Financial Integration among East Asian Countries Abstract: This paper aims to gauge the impact of the global financial crisis on bilateral holdings of financial assets among East Asian countries. For this purpose, this paper uses the International Monetary Fund's Coordinated Portfolio Investment Survey (CPIS) data. We first present information about financial linkages between the CPIS-participating eight East Asian economies and other East Asian economies before and after the global financial crisis of 2008. We then apply the gravity model to assess the determinants of the cross-border holdings of foreign securities for four major East Asian financial investors -- Hong Kong, Japan, Korea and Singapore. We find only few changes in the bilateral holdings of financial assets among East Asian countries in the post-crisis period. In particular, our evidence does not indicate that intra-Asian financial integration has increased noticeably since the global crisis. Journal: Global Economic Review Pages: 425-459 Issue: 4 Volume: 42 Year: 2013 Month: 12 X-DOI: 10.1080/1226508X.2013.860712 File-URL: http://hdl.handle.net/10.1080/1226508X.2013.860712 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:42:y:2013:i:4:p:425-459 Template-Type: ReDIF-Article 1.0 Author-Name: Junyean Moon Author-X-Name-First: Junyean Author-X-Name-Last: Moon Author-Name: Udo Wagner Author-X-Name-First: Udo Author-X-Name-Last: Wagner Title: Digital Revolution, Marketing, and East Asia Economies Abstract: This special issue contains five articles that reflect the content shared during presentations at the 2012 Global Marketing Conference by Korean Scholars of Marketing Science held in Seoul, Korea. The authors of the twelve papers presented in relevant tracks of the 2012 Global Marketing Conference received an opportunity to revise their work for possible inclusion in this special issue. Through an independent round of double-blind reviews, the five articles that follow were developed, extended, and finalized. Journal: Global Economic Review Pages: 1-2 Issue: 1 Volume: 43 Year: 2014 Month: 3 X-DOI: 10.1080/17538963.2014.884044 File-URL: http://hdl.handle.net/10.1080/17538963.2014.884044 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 Author-Name: Haejung Kim Author-X-Name-First: Haejung Author-X-Name-Last: Kim Author-Name: Jiyoung Kim Author-X-Name-First: Jiyoung Author-X-Name-Last: Kim Author-Name: Ran Huang Author-X-Name-First: Ran Author-X-Name-Last: Huang Title: Social Capital in the Chinese Virtual Community: Impacts on the Social Shopping Model for Social Media Abstract: QQ, the largest virtual community in China, generates relational social capital that facilitates social shopping behaviours across channels. Based on social capital theory, this study assesses how social identification and knowledge creation influence social shopping behaviours; and how purchase motivation and intention from one channel transfer to another. Analysis of data collected from 216 QQ users supports the positive impacts of social identification and knowledge creation on purchase intention for virtual products within a channel, and positive cross-channel relationships between purchase motivations and intentions. This study provides an empirical social shopping model by facilitating the notion of social capital. Journal: Global Economic Review Pages: 3-24 Issue: 1 Volume: 43 Year: 2014 Month: 3 X-DOI: 10.1080/1226508X.2014.884046 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.884046 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:1:p:3-24 Template-Type: ReDIF-Article 1.0 Author-Name: Min-Sook Park Author-X-Name-First: Min-Sook Author-X-Name-Last: Park Author-Name: Jong-Kuk Shin Author-X-Name-First: Jong-Kuk Author-X-Name-Last: Shin Author-Name: Yong Ju Author-X-Name-First: Yong Author-X-Name-Last: Ju Title: The Effect of Online Social Network Characteristics on Consumer Purchasing Intention of Social Deals Abstract: This study aims to understand how the characteristics of online social network structure can impact consumer purchase intention through network involvement. We propose and analyse that a consumer's decision for purchasing from the deal-of-the-day Websites is affected by the characteristics of the online social network structure through consumers' network involvement. The results of this study are: Tie strength, network density, network centrality and homophily will increase both social networking service (SNS) users' affective involvement and cognitive involvement to the online social network, both of which will increase their purchase intention of the recommended deals by their friends in SNS. Journal: Global Economic Review Pages: 25-41 Issue: 1 Volume: 43 Year: 2014 Month: 3 X-DOI: 10.1080/1226508X.2014.884047 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.884047 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:1:p:25-41 Template-Type: ReDIF-Article 1.0 Author-Name: Ronnie Cheung Author-X-Name-First: Ronnie Author-X-Name-Last: Cheung Title: The Influence of Electronic Word-of-Mouth on Information Adoption in Online Customer Communities Abstract: This study focuses on the information adoption behaviours in online communities, and investigates how such behaviours affect the purchase intention of consumers. A research model was constructed to investigate the impact of electronic word-of-mouth on information adoption in online customer communities. A survey was conducted using a sample of 100 respondents and a partial least squares approach was used to validate the research model. The research results concluded that timeliness and comprehensiveness of information, trustworthiness and quality of information have positive influence on information usefulness, which in turn predicts the consumer purchase intention. Journal: Global Economic Review Pages: 42-57 Issue: 1 Volume: 43 Year: 2014 Month: 3 X-DOI: 10.1080/1226508X.2014.884048 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.884048 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:1:p:42-57 Template-Type: ReDIF-Article 1.0 Author-Name: Udo Wagner Author-X-Name-First: Udo Author-X-Name-Last: Wagner Author-Name: Jutatip Jamsawang Author-X-Name-First: Jutatip Author-X-Name-Last: Jamsawang Title: Culture-Specific Number Symbolism in Restaurant Prices Abstract: Most cultures assign additional meanings to numbers, beyond their prevalent (arithmetic) denotation. Such connotations might extend to other settings too, such as price perceptions. Therefore, this study summarizes the (positive and negative) characteristics associated with certain numbers by traditions, religious faith, and cultural heritage. The empirical investigation focuses on restaurant prices in three cultural settings (Chinese, Indian, and Islamic), facilitated by the increasing proportions of multicultural populations and numbers of ethnic restaurants. Consistent with predictions, the number 8 for Chinese, number 7 for Islamic, and numbers 5 and 9 for Indian products are more common in the cross-cultural comparison. Journal: Global Economic Review Pages: 58-72 Issue: 1 Volume: 43 Year: 2014 Month: 3 X-DOI: 10.1080/1226508X.2014.884049 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.884049 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:1:p:58-72 Template-Type: ReDIF-Article 1.0 Author-Name: Yi Xie Author-X-Name-First: Yi Author-X-Name-Last: Xie Title: The Effects of Corporate Ability and Corporate Social Responsibility on Winning Customer Support: An Integrative Examination of the Roles of Satisfaction, Trust and Identification Abstract: This research proposes an integrative model in which corporate social responsibility (CSR) and corporate ability (CA) influence customer supporting behaviours through three relational factors (i.e. customer satisfaction, trust and identification). A survey was conducted in China. Empirical results indicate that (1) satisfaction, trust and identification are all important routes through which positive perceptions on CSR/CA transfer into enhanced customer support; (2) CSR initiatives gain customer support more effectively through identification, while CA has stronger effect through changing satisfaction and trust; (3) No significant difference in the efficacy of CSR and CA exists across local and global corporations. Journal: Global Economic Review Pages: 73-92 Issue: 1 Volume: 43 Year: 2014 Month: 3 X-DOI: 10.1080/1226508X.2014.884050 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.884050 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:1:p:73-92 Template-Type: ReDIF-Article 1.0 Author-Name: Jung Wan Lee Author-X-Name-First: Jung Wan Author-X-Name-Last: Lee Author-Name: Tantatape Brahmasrene Author-X-Name-First: Tantatape Author-X-Name-Last: Brahmasrene Title: ICT, CO2 Emissions and Economic Growth: Evidence from a Panel of ASEAN Abstract: This study examines relationships among information communications technology (ICT), carbon dioxide (CO2) emissions and economic growth. The panel annual data are constructed from 1991 to 2009 for nine members from the Association of Southeast Asian Nations. The study examines the long-run equilibrium relationship using cointegration techniques and the short-run relationships using cointegrating regression estimation methods. Test results indicate a long-run equilibrium relationship exists among these variables. Among these relationships, ICT shows significant to highly significant positive effects on both economic growth and CO2 emissions. Significant to highly significant inverse bidirectional relationships between economic growth and CO2 emissions are found in the region. Based on these empirical findings, further policy implications for economic growth, ICT and CO2 emissions are discussed. Journal: Global Economic Review Pages: 93-109 Issue: 2 Volume: 43 Year: 2014 Month: 6 X-DOI: 10.1080/1226508X.2014.917803 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.917803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:2:p:93-109 Template-Type: ReDIF-Article 1.0 Author-Name: Young-Chul Kim Author-X-Name-First: Young-Chul Author-X-Name-Last: Kim Author-Name: Young-Joon Kim Author-X-Name-First: Young-Joon Author-X-Name-Last: Kim Author-Name: Glenn C. Loury Author-X-Name-First: Glenn C. Author-X-Name-Last: Loury Title: Widening Gap in College Admission and Improving Equal Opportunity in South Korea Abstract: As private education has become widespread over the last decade in South Korea, the education gap among regions and social classes has noticeably widened. The recent global financial crisis exacerbates the problem as the rich continue to utilize more private education, while the poor utilize it less. For the first time, we confirm the widening gap in academic achievement and college admission in recent years by using source materials on Korea's College Scholastic Ability Test (CSAT) and students admitted to Seoul National University (SNU). We also present a simple theory that suggests that, as the influence of socioeconomic background and educational environment on the entrance exam score rises over that of innate talents, labour productivity of overall society appears to decline. Controlling for student talent by using the scholastic ranking of the second year of middle school, we show that the socioeconomic status and learning environment exert a considerable influence on all college admissions criteria in this country. Finally, we discuss the importance of voluntary efforts by universities for expanding equal opportunity in higher education, as well as the government's response to the growing gap in college admissions. Journal: Global Economic Review Pages: 110-130 Issue: 2 Volume: 43 Year: 2014 Month: 6 X-DOI: 10.1080/1226508X.2014.920241 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.920241 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:2:p:110-130 Template-Type: ReDIF-Article 1.0 Author-Name: Won-Sik Hwang Author-X-Name-First: Won-Sik Author-X-Name-Last: Hwang Author-Name: Jeong-Dong Lee Author-X-Name-First: Jeong-Dong Author-X-Name-Last: Lee Title: Interindustry Knowledge Transfer and Absorption via Two Channels: The Case of Korea Abstract: This paper investigates interindustry knowledge spillovers using input-output (IO) data and patent information, since spillovers can arise from different types of sources and linkages. Economic transactions of intermediate goods are used to track embodied knowledge flows with the data derived from Korean IO tables. In terms of disembodied knowledge flows, a technology proximity matrix is constructed using patent information. The empirical results show that patterns of interdependences among industries are different and this implies that policy-makers should take into account the interdependences between industries even when planning industry-specific policies. Moreover, excessive concentration of R&D investment needs to be improved. Journal: Global Economic Review Pages: 131-152 Issue: 2 Volume: 43 Year: 2014 Month: 6 X-DOI: 10.1080/1226508X.2014.920239 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.920239 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:2:p:131-152 Template-Type: ReDIF-Article 1.0 Author-Name: Barbara Ermini Author-X-Name-First: Barbara Author-X-Name-Last: Ermini Author-Name: Raffaella Santolini Author-X-Name-First: Raffaella Author-X-Name-Last: Santolini Title: Does Globalization Matter on Fiscal Decentralization? New Evidence from the OECD Abstract: In this paper, we re-examine the effects of globalization on fiscal decentralization of Organisation for Economic Co-operation and Development (OECD) member countries by using the overall KOF index of globalization and its main subcomponents -- economic, political and social integration. Using different indicators of fiscal decentralization, we find a positive impact of the overall index of globalization on both tax revenue and expenditure decentralization side, although not robust across different panel data specifications. Focusing on the links between decentralization and subcomponents of globalization, we find that both economic and social integration foster fiscal decentralization, whereas political integration inhibits its growth. Journal: Global Economic Review Pages: 153-183 Issue: 2 Volume: 43 Year: 2014 Month: 6 X-DOI: 10.1080/1226508X.2014.920240 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.920240 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:2:p:153-183 Template-Type: ReDIF-Article 1.0 Author-Name: Taeyoon Sung Author-X-Name-First: Taeyoon Author-X-Name-Last: Sung Author-Name: Danbee Park Author-X-Name-First: Danbee Author-X-Name-Last: Park Title: Bankers on the Board, Market Competition, and Conflicts of Interest Abstract: Bankers on the board are expected to act as a fund-raiser and to help lowering financial costs, but they can impose conflicts of interest between shareholders and creditors. We empirically analyse the impact of banker-directors on corporate leverage and investment, using Korean firm data during the period from 2000 to 2012. Bankers on the board turn out to play different roles depending on market competition and macroeconomic circumstance. In less competitive industries where banks are less concerned about financial distress as a creditor, the presence of bankers on the board has higher leverage and more active investment, which can align with the interest of shareholders. However, in more competitive environment where firms are more concerned about financial distress and external financing, bankers on the board do not always increase leverage and investment, which can be divergent from the interest of shareholders. Journal: Global Economic Review Pages: 184-206 Issue: 2 Volume: 43 Year: 2014 Month: 6 X-DOI: 10.1080/1226508X.2014.920242 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.920242 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:2:p:184-206 Template-Type: ReDIF-Article 1.0 Author-Name: Keisuke Okada Author-X-Name-First: Keisuke Author-X-Name-Last: Okada Author-Name: Sovannroeun Samreth Author-X-Name-First: Sovannroeun Author-X-Name-Last: Samreth Title: How Does Corruption Influence the Effect of Foreign Direct Investment on Economic Growth? Abstract: We investigate the effect of foreign direct investment (FDI) on economic growth in 130 countries from 1995 to 2008, considering the role of corruption in each country as an absorptive factor. The estimation results indicate that although FDI alone does not promote economic growth, it has a significant effect on economic growth if the interaction term between FDI and corruption is considered. Specifically, FDI has a positive impact on economic growth when corruption is severe, but a negative impact if corruption is below a certain threshold. Journal: Global Economic Review Pages: 207-220 Issue: 3 Volume: 43 Year: 2014 Month: 9 X-DOI: 10.1080/1226508X.2014.930671 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.930671 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:3:p:207-220 Template-Type: ReDIF-Article 1.0 Author-Name: Chak Hung Jack Cheng Author-X-Name-First: Chak Hung Jack Author-X-Name-Last: Cheng Title: Exchange Rate Pass-through, Unemployment and Optimal Implementable Monetary Policy Rule for Emerging Economies Abstract: This paper develops a small open economy model with nominal rigidities and search-matching frictions to study the implications of exchange rate pass-through for monetary policy in emerging countries. I find that, with complete exchange rate pass-through, the optimal policy rule features unemployment targeting as well as inflation targeting. However, the welfare gain from responding to unemployment fluctuations diminishes as the rate of exchange rate pass-through to import prices decreases. With low exchange rate pass-through, the optimal monetary policy is strict inflation targeting. Journal: Global Economic Review Pages: 221-243 Issue: 3 Volume: 43 Year: 2014 Month: 9 X-DOI: 10.1080/1226508X.2014.930979 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.930979 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:3:p:221-243 Template-Type: ReDIF-Article 1.0 Author-Name: Shun-Chiao Chang Author-X-Name-First: Shun-Chiao Author-X-Name-Last: Chang Title: The Determinants and Motivations of China's Outward Foreign Direct Investment: A Spatial Gravity Model Approach Abstract: The study attempts to investigate the features and determinants of China's outward foreign direct investment (OFDI) into 138 countries and Chinese firms' investment strategies over the 2003-2009 period using an augmented gravity model with spatial linkages. The respective evaluations of China's OFDI are indicative of the important role played by non-financial OFDI. At the same time, Chinese firms prefer to invest in high-tech industries in developed countries while also focusing on the extraction of natural resources around the world. The empirical findings show that the host country's economic size has a significantly positive effect in terms of promoting Chinese OFDI. Chinese firms favour a complex-vertical platform in the developed countries while they prefer a market potential foreign direct investment (FDI) surrounding the host developing countries and an export-platform FDI in the petroleum exporting countries based on the surrounding market potential effect and spatial effect. The fuel extraction motive plays a key role in China's OFDI in line with the realities of Chinese FDI strategies in recent years. Journal: Global Economic Review Pages: 244-268 Issue: 3 Volume: 43 Year: 2014 Month: 9 X-DOI: 10.1080/1226508X.2014.930670 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.930670 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:3:p:244-268 Template-Type: ReDIF-Article 1.0 Author-Name: Joocheol Kim Author-X-Name-First: Joocheol Author-X-Name-Last: Kim Author-Name: Hyun-Oh Kim Author-X-Name-First: Hyun-Oh Author-X-Name-Last: Kim Title: Option Implied Tail Index and Volatility Based on Heavy-tailed Distributions: Evidence from KOSPI 200 Index Options Market Abstract: This paper compares the option implied tail indexes and volatilities from two option pricing formulas based on heavy-tailed distributions: generalized extreme value (GEV) distribution and generalized logistic (GLO) distribution. Option pricing models based on heavy-tailed distributions with three parameters overcome some well-known drawbacks of the Black-Scholes model when the realized underlying asset returns are not normally distributed. Both GEV-based and GLO-based option pricing formulas extract the implied volatilities successfully, indicating that they are compatible with the Black-Scholes formulas. However, GEV-based pricing model shows more unexpected patterns when extracting the implied tail indexes for put options than GLO-based pricing model including the credit crisis in 2008, implying that GEV-based pricing model is less capable of measuring the market sentiment during the extreme crisis events. Journal: Global Economic Review Pages: 269-284 Issue: 3 Volume: 43 Year: 2014 Month: 9 X-DOI: 10.1080/1226508X.2014.941377 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.941377 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:3:p:269-284 Template-Type: ReDIF-Article 1.0 Author-Name: Jing Zhou Author-X-Name-First: Jing Author-X-Name-Last: Zhou Author-Name: Mar&xed;a C. Latorre Author-X-Name-First: Mar&xed;a C. Author-X-Name-Last: Latorre Title: The Impact of Foreign Direct Investment on the Production Networks between China and East Asia and the Role of the USA and the Rest of the World as Final Markets Abstract: A three factor, four region and 15 sector computable general equilibrium (CGE) model is used to study the impact of foreign direct investment (FDI) accruing to China. We focus on the sectors of Electronics, Machinery and Textiles which account for 55.4% and 40% of Chinese overall exports and imports, respectively. Our data confirm the existence of production networks between China and East Asia and the role that the USA and the rest of the world (ROW) play as final markets. Based on these differentiated geographical roles and on the contrasting production technologies, we offer an in-depth analysis for macro- and micro-variables across the four regions. Journal: Global Economic Review Pages: 285-314 Issue: 3 Volume: 43 Year: 2014 Month: 9 X-DOI: 10.1080/1226508X.2014.939212 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.939212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:3:p:285-314 Template-Type: ReDIF-Article 1.0 Author-Name: Shang-Jin Wei Author-X-Name-First: Shang-Jin Author-X-Name-Last: Wei Title: Financial Systems and Economic Outcomes: A Comparative Perspective Journal: Global Economic Review Pages: 315-318 Issue: 4 Volume: 43 Year: 2014 Month: 12 X-DOI: 10.1080/1226508X.2014.985358 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.985358 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:4:p:315-318 Template-Type: ReDIF-Article 1.0 Author-Name: Xuehui Han Author-X-Name-First: Xuehui Author-X-Name-Last: Han Author-Name: Shang-Jin Wei Author-X-Name-First: Shang-Jin Author-X-Name-Last: Wei Title: Policy Choices and Resilience to International Monetary Shocks Abstract: The well-known trilemma theory states that the nominal exchange rate regime plays a crucial role in a country's ability to pursue monetary policy that is for its domestic objectives independent from other countries' influences. In particular, a flexible exchange rate is required for an independent monetary policy. Capital controls may help a country with a fixed exchange rate to gain some policy space but the effect of capital controls is leaky and often short-lived. We revisit these conventional wisdoms and find no strong evidence supporting them in practice. In particular, a flexible exchange rate does not reliably deliver monetary policy independence, but capital controls do. This is consistent with the view that most (developing) countries dislike either depreciation or appreciation of their currencies, and therefore would choose to follow US monetary policy moves even if they are on a flexible exchange rate regime. In other words, to build resilience to international monetary policy shocks, capital controls are a necessarily component. Journal: Global Economic Review Pages: 319-337 Issue: 4 Volume: 43 Year: 2014 Month: 12 X-DOI: 10.1080/1226508X.2014.982297 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.982297 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:4:p:319-337 Template-Type: ReDIF-Article 1.0 Author-Name: Iljoong Kim Author-X-Name-First: Iljoong Author-X-Name-Last: Kim Author-Name: Inbae Kim Author-X-Name-First: Inbae Author-X-Name-Last: Kim Title: Independence and Architecture of Financial Supervision: With Focus on the Effects on Banking Stability Abstract: Empirical work on the performances of supervisory governance and architecture is scarce relative to the intensifying debates on related institutional arrangements. Using an expansive panel data-set, this paper is a first attempt to explore the effects of governance, architecture and their interactions on banking stability. Empirical analyses reveal that independence matters, as a major governance factor, and the two critical architecture factors, the integration of authorities and the central bank' involvement undermine banking stability. Also, in spite of the interaction between independence and architecture, its effect appears to be limited. Journal: Global Economic Review Pages: 338-354 Issue: 4 Volume: 43 Year: 2014 Month: 12 X-DOI: 10.1080/1226508X.2014.982318 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.982318 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:4:p:338-354 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Kim Author-X-Name-First: Yong Author-X-Name-Last: Kim Title: Tsunami: Market Tightness and Asset Price Volatility Abstract: This paper considers an asset market subject to search frictions, where there are adjustment costs to the entry rate of buyers. An implication is that even in asset markets where the search frictions are very small, asset prices respond to changes in liquidity. Another implication is that asset liquidity is a state variable, the dynamics of which are analysed. I demonstrate that transition paths of liquidity to its (stable) steady state can exhibit dramatic divergence before convergence following small positive deviations in the measure of buyers in the market. Thus, adjustment costs of entry are a potential source of volatility by generating large waves of liquidity, or "tsunami", in asset markets. I quantitatively assess the ability of the mechanism to generate asset market booms and busts via the implied price movements. Journal: Global Economic Review Pages: 355-380 Issue: 4 Volume: 43 Year: 2014 Month: 12 X-DOI: 10.1080/1226508X.2014.982846 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.982846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:4:p:355-380 Template-Type: ReDIF-Article 1.0 Author-Name: Zhiguo Li Author-X-Name-First: Zhiguo Author-X-Name-Last: Li Author-Name: Xiaorong Zhang Author-X-Name-First: Xiaorong Author-X-Name-Last: Zhang Title: Evaluating the Effectiveness and Efficiency of the Four-trillion Yuan Stimulus Package: Evidence from Stock Market Returns of Chinese Listed A Shares Abstract: Using stock returns of individual Chinese A shares as dependent variables, we confirm that the 2008 global financial crisis hit China through the demand channel and find that the four-trillion yuan stimulus package had a larger and more lasting effect on stimulating the real economy than on encouraging stock market speculation. The package, implemented with tremendous credit expansion in 2009 and 2010, is both effective and efficient in facilitating the financing of firms' working capital, but has weaker effects on the financing of investments. Long-term capital allocation is not efficient in that it goes to firms that idiosyncratically invested heavily before the financial crisis but not to those that are in need of capital for investment determined by industry features. Specifically, state-owned companies are privileged in long-term financing but significantly underperform non-state-owned ones. Journal: Global Economic Review Pages: 381-407 Issue: 4 Volume: 43 Year: 2014 Month: 12 X-DOI: 10.1080/1226508X.2014.982319 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.982319 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:4:p:381-407 Template-Type: ReDIF-Article 1.0 Author-Name: Yeon Joon Kim Author-X-Name-First: Yeon Joon Author-X-Name-Last: Kim Author-Name: Joo Young Lee Author-X-Name-First: Joo Young Author-X-Name-Last: Lee Title: Sluggish Recovery from the Financial Crisis: Crowding-out Effect and Contagion Abstract: The stimulus plans by the US Government after the financial crisis in 2008 may decrease private investment by means of a crowding-out effect. The US Federal Reserve utilized quantitative easing policies to maintain the interest rate as low as possible to minimize crowding-out. The 2008 financial crisis also affects other economies through contagion effects. This paper investigates the existence of the crowding-out effect and contagion effect after the crisis using Temin and Voth's models. The empirical results from vector autoregession show that there is a crowding-out effect in the US economy as well as a contagion effect of the crisis on the Korean and Japanese economies. Journal: Global Economic Review Pages: 408-428 Issue: 4 Volume: 43 Year: 2014 Month: 12 X-DOI: 10.1080/1226508X.2014.982320 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.982320 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:4:p:408-428 Template-Type: ReDIF-Article 1.0 Author-Name: Daehwan Kim Author-X-Name-First: Daehwan Author-X-Name-Last: Kim Author-Name: Jeffrey Nilsen Author-X-Name-First: Jeffrey Author-X-Name-Last: Nilsen Title: Why is the Inter-firm Credit Market in Korea Special? An Agency View of Trade Credit Use by Chaebols Abstract: We study inter-firm credit (also known as trade credit (TC) or the delayed payment a supplier allows its downstream customer on a product sale) with an emphasis on its unique features in Korea. It is the prominence of chaebol-affiliated firms in the Korean economy that makes Korea unique because chaebol firms are linked together by common ownership and thus distort the assumption common to all theories of TC that the input supplier is independent from its customer. We find several aspects of TC use by chaebols. First, viewed as input purchasers, these firms take more TC (the chaebol effect). The amount of TC taken is positively related to purchases from other chaebol affiliates (the affiliate effect), and with the degree of the chairman's ownership-control disparity (the ownership multiplier effect). Also TC as proportion of short-term debt increases significantly after profit growth (the profit effect). Furthermore, chaebol members give less TC although this is strongly correlated with transactions with affiliates. We suggest a unifying interpretation of these patterns based on agency cost: TC, by substituting for external financing and reducing monitoring by outsiders, presents controlling minority owners the opportunity to misuse their greater control for their own benefit. Journal: Global Economic Review Pages: 429-452 Issue: 4 Volume: 43 Year: 2014 Month: 12 X-DOI: 10.1080/1226508X.2014.982321 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.982321 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:43:y:2014:i:4:p:429-452 Template-Type: ReDIF-Article 1.0 Author-Name: Jihong Zhang Author-X-Name-First: Jihong Author-X-Name-Last: Zhang Author-Name: Ding Du Author-X-Name-First: Ding Author-X-Name-Last: Du Author-Name: Walter G. Park Author-X-Name-First: Walter G. Author-X-Name-Last: Park Title: How Private Property Protection Influences the Impact of Intellectual Property Rights on Economic Growth? Abstract: Although policy-makers typically assume a positive relationship between intellectual property rights (IPRs) and economic growth, the empirical evidence on the IPR-growth relationship is rather inconclusive. We conjecture in this paper that the weak IPR-growth evidence in previous studies may be due to a neglect of the role of finance markets and private property rights. Our conjecture is motivated by the recent law-and-finance literature. We test our conjecture with a cross-section of 98 countries and find that once we modify our measure of IPRs to take into account general property rights, there is stronger evidence for a positive relationship between IPRs and economic growth. Our findings not only help explain the IPR-innovation puzzle but also have significant theoretical as well as policy implications. Journal: Global Economic Review Pages: 1-30 Issue: 1 Volume: 44 Year: 2015 Month: 3 X-DOI: 10.1080/1226508X.2014.961093 File-URL: http://hdl.handle.net/10.1080/1226508X.2014.961093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:1:p:1-30 Template-Type: ReDIF-Article 1.0 Author-Name: Chien-Chiang Lee Author-X-Name-First: Chien-Chiang Author-X-Name-Last: Lee Author-Name: Chi-Chuan Lee Author-X-Name-First: Chi-Chuan Author-X-Name-Last: Lee Author-Name: Chun-Ping Chang Author-X-Name-First: Chun-Ping Author-X-Name-Last: Chang Title: Globalization, Economic Growth and Institutional Development in China Abstract: Unlike most previous works which commonly define globalization as a strict economic characteristic, using the overall globalization index and its three sub-dimensions - economic, social and political integrations to proxy openness, this paper examines the effect of globalization on economic growth associated with autocratic institutional in China, using the a two-step dynamic panel generalized method of moments technique in a panel of 30 provinces, municipalities and the autonomous regions over the period of 1970-2006. We find that different globalization indices have different impacts on regional economic growth. Also, autocracy may harm regional development, but these conclusions are very sensitive to different globalization variables specifications. Further, considering the interactive effects between globalization and economic growth, we show that in the period of higher global integration, the higher democracy (lower autocracy) may harm economic growth in the case of China. We emphasize that democracy is clearly not a necessary condition for the purpose of economic growth in China. Journal: Global Economic Review Pages: 31-63 Issue: 1 Volume: 44 Year: 2015 Month: 3 X-DOI: 10.1080/1226508X.2015.1011777 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1011777 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:1:p:31-63 Template-Type: ReDIF-Article 1.0 Author-Name: Yuwei Hu Author-X-Name-First: Yuwei Author-X-Name-Last: Hu Title: Population Ageing and Saving Rates in China, Japan and Korea: A Panel Granger Causality Analysis Abstract: The world is ageing fast and East Asia is not an exception. Among the three major East Asian countries, Japan features the eldest society in the world, while China and Korea also witness a dramatic demographic transformation. One important impact of population ageing is on saving rates. In this paper we seek to investigate the causal relationship between demographics and savings in those three countries by employing a panel of data-set and innovative econometric technique - panel Granger causality test. On balance there is evidence supporting the argument that a growing younger population causes an increase in national saving, albeit not necessarily in household saving. The results are robust against different estimation procedures and parameters. Journal: Global Economic Review Pages: 64-73 Issue: 1 Volume: 44 Year: 2015 Month: 3 X-DOI: 10.1080/1226508X.2015.1012092 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1012092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:1:p:64-73 Template-Type: ReDIF-Article 1.0 Author-Name: Pei Pei Tan Author-X-Name-First: Pei Pei Author-X-Name-Last: Tan Author-Name: Don U.A. Galagedera Author-X-Name-First: Don U.A. Author-X-Name-Last: Galagedera Title: Dynamics of Idiosyncratic Volatility and Market Volatility: An Emerging Market Perspective Abstract: Estimating idiosyncratic volatility (IVOL) using various model-dependent and model-independent measures, we investigate the characteristics of aggregate IVOL in Malaysia over the period 1990-2008. The IVOL estimated in all models have similar patterns and has no trend over the sample period. There is evidence of episodic phenomenon. During financial crisis periods, market volatility is relatively higher than IVOL - a plausible reason is high correlation between firms' returns. Small firms and low-priced stocks appear to influence IVOL more than large firms and high-priced stocks. In Malaysia, market volatility and IVOL may predict GDP growth. Journal: Global Economic Review Pages: 74-100 Issue: 1 Volume: 44 Year: 2015 Month: 3 X-DOI: 10.1080/1226508X.2015.956404 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.956404 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:1:p:74-100 Template-Type: ReDIF-Article 1.0 Author-Name: Danbee Park Author-X-Name-First: Danbee Author-X-Name-Last: Park Author-Name: Joocheol Kim Author-X-Name-First: Joocheol Author-X-Name-Last: Kim Title: Financial Derivatives Usage and Monetary Policy Transmission: Evidence from Korean Firm-level Data Abstract: This study empirically investigates the impacts of the financial derivative usage on corporate debt capability and stock return using Korean non-financial firms' data from 2002 to 2012. Empirical results support the conjecture that financial derivatives tend to increase debt capability by transferring risks and reducing financial cost. Derivative user firms turn out to have better stock market performance especially during period with the tight credit market. Unexpected contractionary monetary policy is negatively correlated with corporate stock return and the negative relationship becomes more significant in case of the derivative non-user firms. Financial derivatives usage of the individual firm plays an important role in increasing debt capability and achieving better stock performances. Journal: Global Economic Review Pages: 101-115 Issue: 1 Volume: 44 Year: 2015 Month: 3 X-DOI: 10.1080/1226508X.2015.1012093 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1012093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:1:p:101-115 Template-Type: ReDIF-Article 1.0 Author-Name: Qaiser Munir Author-X-Name-First: Qaiser Author-X-Name-Last: Munir Author-Name: Sook Ching Kok Author-X-Name-First: Sook Ching Author-X-Name-Last: Kok Title: Purchasing Power Parity of ASEAN-5 Countries Revisited: Heterogeneity, Structural Breaks and Cross-sectional Dependence Abstract: This paper tests the purchasing power parity (PPP) hypothesis for a collection of ASEAN-5 countries using monthly data spanning the period 1968:1-2009:11. For this purpose, a number of recently developed more powerful panel unit root tests that permit for dependence among the individual countries are employed. In addition to this, we utilize the Lagrange multiplier (LM) cointegration test developed by Westerlund, which is flexible enough to accommodate a large degree of country specific heterogeneity, cross-country dependence as well as multiple structural breaks. The main results derived from this study are: first, our findings from panel unit root tests which do not control for cross-sectional dependence appear to be clearly showing evidence against PPP. Second, the evidence from panel tests controlling for cross-sectional dependence is against PPP over the whole and 1997 pre-financial crisis periods. On the other hand, we find sufficient evidence to support PPP for ASEAN-5 countries over the post-financial crisis period. Third, in stark contrast stand the results obtained from the application of the panel cointegration test provide strong evidence of panel cointegration in whole and sub-periods, providing evidence for PPP; however, these findings have become apparent after allowing for multiple structural breaks as well as for general forms of cross-sectional dependence through bootstrap methods. We provide a detailed description of the breaks identified in the analysis, which appear to be closely associated with some macroeconomic shocks and institutional arrangements. The findings of this study offer important policy implications. Journal: Global Economic Review Pages: 116-149 Issue: 1 Volume: 44 Year: 2015 Month: 3 X-DOI: 10.1080/1226508X.2015.1012091 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1012091 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:1:p:116-149 Template-Type: ReDIF-Article 1.0 Author-Name: Hiroya Akiba Author-X-Name-First: Hiroya Author-X-Name-Last: Akiba Title: Stability of Monetary Union with Outsiders Abstract: This article examines stability of a three-country model which comprises a monetary union with two "ins" (i.e. members) and an "out" (i.e. non-member). This stability issue was examined by McAvinchey and McCausland who considered a hypothetical enlargement of Eurozone with a new member country, and empirically showed that the effects of enlargement are "predominantly destabilizing". Using the Argy's method of exact log-linearization, we show that the model is intrinsically unstable. A numerical example is given with the 2010 parameter values. We found that the stability could ironically be rehabilitated when uncovered interest parity and purchasing power parity are violated. Journal: Global Economic Review Pages: 151-166 Issue: 2 Volume: 44 Year: 2015 Month: 6 X-DOI: 10.1080/1226508X.2015.1019537 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1019537 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:2:p:151-166 Template-Type: ReDIF-Article 1.0 Author-Name: Sung Jun Park Author-X-Name-First: Sung Jun Author-X-Name-Last: Park Author-Name: Howard Kahm Author-X-Name-First: Howard Author-X-Name-Last: Kahm Title: Sovereignty and Central Banking: Evidence from the East Asian Region in the Early 1900s Abstract: This paper examines the connection between sovereignty and central banking through a case study of the Bank of Chosŏn in colonial Korea during the 1910s and 1920s. Using historical and statistical analysis, this study shows the particular characteristics and limitations of the Bank of Chosŏn and its operations, both within the specific colonial context and under the political and economic conditions imposed by Japanese imperialism, such as a fixed exchange rate and the subordination of the Korean economy to Japan. While the Bank of Chosŏn was unable to ultimately exercise independent policy-making, this particular case offers avenues for exploring the historical and policy-making effects upon the relationship between sovereignty and central banking. Journal: Global Economic Review Pages: 167-183 Issue: 2 Volume: 44 Year: 2015 Month: 6 X-DOI: 10.1080/1226508X.2015.1029506 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1029506 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:2:p:167-183 Template-Type: ReDIF-Article 1.0 Author-Name: Tuck Cheong Tang Author-X-Name-First: Tuck Cheong Author-X-Name-Last: Tang Title: General Equilibrium Perspective on Twin Deficits Hypothesis: An Empirical Study with US Results Abstract:  This study proposes an alternative analytical framework for testing the so-called twin deficits hypothesis from the general equilibrium perspective. The income-expenditure equilibrium takes both the behavioural relationships of the saving and investment into consideration. The empirical results of cointegration tests show that the US fiscal balance, current account balance, real income and interest rates (short- and long-run) are co-movement for the observed periods between 1970Q2 and 2011Q4. Also, the causality tests suggest that budget deficit does indirectly Granger-cause current account deficit via short-run interest rate and real income. The real income and interest rates variables determining the behavioural relationships are important in understanding the US twin deficit slogan. In short, the empirical results validate the twin deficits hypothesis in the USA. Some policy implications have been drawn, especially on the implementation of the "fiscal cliff" policy. This study also recommends portfolio balance approach for future twin deficits research. Journal: Global Economic Review Pages: 184-201 Issue: 2 Volume: 44 Year: 2015 Month: 6 X-DOI: 10.1080/1226508X.2015.1015041 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1015041 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:2:p:184-201 Template-Type: ReDIF-Article 1.0 Author-Name: Hae Won Byun Author-X-Name-First: Hae Won Author-X-Name-Last: Byun Title: The Size of the Affiliation Effect Abstract: The objective of this paper is to investigate whether the affiliation effect is of only marginal importance or it is of the same order of magnitude as the winner's curse and competition effects. This paper is an application of Pinkse and Tan in which they show that bids can be decreasing in the number of bidders in private value auctions provided that the bidders' private values are affiliated. They argue that the affiliation effect is also present in common value auctions. If the affiliation effect is substantial then a regression of bids on the number of bidders will not help in distinguishing between the common and private value paradigms. We use the Offshore Continental Shelf auction data-set to estimate these effects and find that the affiliation effect is smaller than the other two effects in terms of size. Therefore, at least in this application it appears unlikely that the affiliation effect would often offset the competition effect. Journal: Global Economic Review Pages: 202-218 Issue: 2 Volume: 44 Year: 2015 Month: 6 X-DOI: 10.1080/1226508X.2015.1033731 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1033731 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:2:p:202-218 Template-Type: ReDIF-Article 1.0 Author-Name: Siew-Voon Soon Author-X-Name-First: Siew-Voon Author-X-Name-Last: Soon Author-Name: Ahmad Zubaidi Baharumshah Author-X-Name-First: Ahmad Zubaidi Author-X-Name-Last: Baharumshah Author-Name: Sung K. Ahn Author-X-Name-First: Sung K. Author-X-Name-Last: Ahn Title: Real Exchange Rate Dynamics in the Asian Economies: Can Regime Shifts Explain Purchasing Power Parity Puzzles? Abstract: We show that the strong version of the purchasing power parity (PPP) hypothesis holds in most of the US dollar real exchange rates using cointegration method that accounts for breaks in the models. The break dates in seven of the Asian currencies coincide with the two rounds of currency depreciation recorded during the 1997-1998 financial crises. We obtain a mean half-life estimate of about 10 months for PPP to converge to its long-run equilibrium level. Our confidence intervals based on persistence profile approach for the half-lives is much narrower than previous evidence might indicate. Taken together, these results show that mean reversion is stronger than commonly thought. Journal: Global Economic Review Pages: 219-236 Issue: 2 Volume: 44 Year: 2015 Month: 6 X-DOI: 10.1080/1226508X.2015.1012729 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1012729 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:2:p:219-236 Template-Type: ReDIF-Article 1.0 Author-Name: Indrani Chakraborty Author-X-Name-First: Indrani Author-X-Name-Last: Chakraborty Title: The Effect of Business Risk on Capital Structure of Indian Corporate Firms: Business Groups vs. Stand-alone Firms Abstract: This study estimates the relationship between leverage and business risk for Indian corporate firms by applying semi-parametric regression method for three time points, namely 2001, 2007 and 2012. We observe that the relationship is non-linear for all the three measures of RISK in 2001 and 2012. Since we get different results for different measures of risk, we lay more emphasis on RISK2 as the better measure of risk here. From the graphical plots, we find that the relationship between leverage and RISK2 appears to be a polynomial of degree 5 or more. Thus, it invalidates the previous argument of a quadratic relationship between leverage and risk. We then check if the quadratic specification between leverage and risk, as proposed in the existing studies, is appropriate by applying Hardle and Mammen's test. We observe that the relationship varies over the measures of risks and it differs between group-affiliated firms and stand-alone firms. Moreover, the relationship changes over time. Thus, our findings raise questions about the predictions of Castanias, Kale et al. and others on the relationship between capital structure and business risk as a U-shaped one. We conclude that the generalization of a U-shaped relationship between capital structure and business risk is not true. Journal: Global Economic Review Pages: 237-268 Issue: 2 Volume: 44 Year: 2015 Month: 6 X-DOI: 10.1080/1226508X.2015.1013486 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1013486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:2:p:237-268 Template-Type: ReDIF-Article 1.0 Author-Name: Yingkai Yin Author-X-Name-First: Yingkai Author-X-Name-Last: Yin Author-Name: Yahua Zhang Author-X-Name-First: Yahua Author-X-Name-Last: Zhang Author-Name: Xiaotian Tina Zhang Author-X-Name-First: Xiaotian Tina Author-X-Name-Last: Zhang Author-Name: Fang Hu Author-X-Name-First: Fang Author-X-Name-Last: Hu Title: Does Foreign Bank Entry Make Chinese Banks Stronger? Abstract: China has encouraged its domestic banks to introduce foreign investment since the early 2000s. In the meantime, China has gradually fulfilled its World Trade Organisation (WTO) accession commitment to give foreign banks the same treatment as their Chinese counterparts in the last decade. This research has examined the effects of the two modes of foreign bank entry, namely, minority ownership participation, and setting up branches and subsidiaries, on the performance of Chinese banks. Our results suggest that there is no systematically significant impact of the minority ownership participation on the performance indicators of Chinese banks. However, it appears that the physical presence of foreign banks has been a significant driver for domestic banks to improve profitability and efficiency. Opening the country to foreign banks appears to have made Chinese banks stronger and more competitive. Journal: Global Economic Review Pages: 269-285 Issue: 3 Volume: 44 Year: 2015 Month: 9 X-DOI: 10.1080/1226508X.2015.1055779 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1055779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:3:p:269-285 Template-Type: ReDIF-Article 1.0 Author-Name: Kok Fong See Author-X-Name-First: Kok Fong Author-X-Name-Last: See Author-Name: Yong He Author-X-Name-First: Yong Author-X-Name-Last: He Title: Determinants of Technical Efficiency in Chinese Banking: A Double Bootstrap Data Envelopment Analysis Approach Abstract: The main objective of this study is to measure the technical efficiency level of the Chinese banking industry. It uses a double bootstrap data envelopment analysis approach to compute bias-corrected efficiency scores and investigate the determinants of bank efficiency in China between 2003 and 2010. We observe that Chinese commercial banks regardless of ownership have shown improved efficiency from 2003 to 2010. Our results show a significant difference in the performance between state-owned banks and joint-stock banks over the period analyzed. Moreover, the equity-to-asset ratio also significantly explains variations in inefficiency across Chinese commercial banks. Initial public offering is considered one of the effective ways to improve bank efficiency in China. Overall, the present study provides valuable empirical information that can be used to help guide deliberations regarding future reform policies. Journal: Global Economic Review Pages: 286-307 Issue: 3 Volume: 44 Year: 2015 Month: 9 X-DOI: 10.1080/1226508X.2015.1014392 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1014392 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:3:p:286-307 Template-Type: ReDIF-Article 1.0 Author-Name: Donghun Kim Author-X-Name-First: Donghun Author-X-Name-Last: Kim Title: Offshore Banking and Economic Growth: A Cross-Country Analysis Abstract: This paper investigates the effect of an offshore banking sector on economic growth. For this purpose, we specified a growth equation for the 41 countries that report their external positions to the Bank for International Settlements and evaluated how the size of an offshore banking sector, measured by external assets or liabilities contributed to the countries' per capita income growth. The distinctive features of this paper are that compared to previous studies, we used more comprehensive data and more flexible empirical specifications to investigate the effects of offshore banking. We find that the size of an offshore banking sector and economic growth have a nonlinear relationship, and the growth effect tends to increase as the scale of offshore banking increases. Journal: Global Economic Review Pages: 308-323 Issue: 3 Volume: 44 Year: 2015 Month: 9 X-DOI: 10.1080/1226508X.2015.1072472 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1072472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:3:p:308-323 Template-Type: ReDIF-Article 1.0 Author-Name: Chin-Chia Liang Author-X-Name-First: Chin-Chia Author-X-Name-Last: Liang Author-Name: Ming-Yung Chen Author-X-Name-First: Ming-Yung Author-X-Name-Last: Chen Author-Name: Cheng-Hua Yang Author-X-Name-First: Cheng-Hua Author-X-Name-Last: Yang Title: The Interactions of Stock Prices and Exchange Rates in the ASEAN-5 Countries: New Evidence Using a Bootstrap Panel Granger Causality Approach Abstract: Using a data-set from the ASEAN-5 countries over the January 2000-August 2013 period, this paper revisits the Granger causal nexus between the equity and foreign exchange markets by employing the bootstrap panel Granger causality approach developed by Kònya, which allows for both cross-sectional dependency and heterogeneity across countries. The results indicate a unidirectional causality from stock prices to exchange rates in Malaysia, the Philippines and Thailand and from exchange rates to stock prices in Indonesia. These findings have important implications for policy-makers and institutional investors who should rigidly monitor the dynamic linkages between stock price and exchange rate movements across the ASEAN-5 financial markets when making policy decisions and investing in these countries. Journal: Global Economic Review Pages: 324-334 Issue: 3 Volume: 44 Year: 2015 Month: 9 X-DOI: 10.1080/1226508X.2015.1035300 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1035300 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:3:p:324-334 Template-Type: ReDIF-Article 1.0 Author-Name: Mu-Jen Chen Author-X-Name-First: Mu-Jen Author-X-Name-Last: Chen Author-Name: Yung-ho Chiu Author-X-Name-First: Yung-ho Author-X-Name-Last: Chiu Author-Name: Chyanlong Jan Author-X-Name-First: Chyanlong Author-X-Name-Last: Jan Author-Name: Yu-Chuan Chen Author-X-Name-First: Yu-Chuan Author-X-Name-Last: Chen Author-Name: Hsiang-Hsi Liu Author-X-Name-First: Hsiang-Hsi Author-X-Name-Last: Liu Title: Efficiency and Risk in Commercial Banks - Hybrid DEA Estimation Abstract: The hybrid DEA model can solve the difference between radial inputs and non-radial inputs and evaluate efficiency. This is a pioneering study that uses the hybrid DEA model, evaluating the proportionate inputs with a radial measure and the non-proportionate inputs with a non-radial measure, in order to examine the impact of non-performing loans (NPLs) on the efficiency of Taiwan's banking sector from 2006 to 2010. In summary, this research demonstrates the following: (1) Only nine banks remained in the top efficiency list during these years: China Development Industrial Bank, Mega International Commercial Bank, Chinatrust Commercial Bank, Cathay United Bank, Bank of Kaohsiung, Industrial Bank of Taiwan, Taiwan Cooperative Bank, Land Bank, and Bank of Taiwan. (2) Risk is an important factor that should be taken into consideration when evaluating banking efficiency. (3) From the hybrid DEA model, we find that most of the inefficient banks have an inefficiency factor caused primarily by too many NPLs (risk). (4) The efficiency of Taiwan's large-scale banks is significantly better than the small-scale bank. By looking at the inefficiency index, the large-scale bank's inefficiency is caused by NPLs. For the small-scale bank, both radial variables and non-radial variables have equal importance in improving its efficiency. Journal: Global Economic Review Pages: 335-352 Issue: 3 Volume: 44 Year: 2015 Month: 9 X-DOI: 10.1080/1226508X.2015.1067865 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1067865 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:3:p:335-352 Template-Type: ReDIF-Article 1.0 Author-Name: Wen Chung Hsu Author-X-Name-First: Wen Chung Author-X-Name-Last: Hsu Author-Name: Chengqi Wang Author-X-Name-First: Chengqi Author-X-Name-Last: Wang Author-Name: Jeremy Clegg Author-X-Name-First: Jeremy Author-X-Name-Last: Clegg Title: The Effects of Outward Foreign Direct Investment on Fixed-Capital Formation at Home: The Roles of Host Location and Industry Characteristics Abstract: This paper pursues the idea that the relationship between foreign and domestic investments may be not as uniform as many studies suggest. By examining the case of Taiwanese outward foreign direct investment (OFDI), this paper is marked out from existing studies in the following three respects. First, it examines the extent to which the relationship between OFDI and domestic investment varies with the location of investment. Second, this research allows the results to vary between Heckscher-Ohlin (H-O) industries and Schumpeter industries. Finally, its breakdown of data will reveal sub-relationships in the data that up to now have remained hidden within the aggregate relationships reported in most studies. This study suggests that OFDI in China has a positive impact on domestic investment in H-O industries, while OFDI in other countries (OFDIO) has a negative impact on domestic investment in the same industries. These findings are in marked contrast to Schumpeter industries where a positive effect is observed only for OFDIO. Our findings also suggest that the Taiwanese government should design policies to adjust the level of liberalisation for overseas investment through legislation on an industry-by-industry basis in order that OFDI stimulates domestic investment in relevant industries more effectively. Journal: Global Economic Review Pages: 353-368 Issue: 3 Volume: 44 Year: 2015 Month: 9 X-DOI: 10.1080/1226508X.2015.1077720 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1077720 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:3:p:353-368 Template-Type: ReDIF-Article 1.0 Author-Name: K.C. Fung Author-X-Name-First: K.C. Author-X-Name-Last: Fung Title: Introduction Journal: Global Economic Review Pages: 369-375 Issue: 4 Volume: 44 Year: 2015 Month: 12 X-DOI: 10.1080/1226508X.2015.1108512 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1108512 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:4:p:369-375 Template-Type: ReDIF-Article 1.0 Author-Name: K.C. Fung Author-X-Name-First: K.C. Author-X-Name-Last: Fung Title: Europe, Germany and "The German Model": Economic Links and Implications for China Abstract: In this paper, I examine the economic links first between the European Union (EU) and China and then I focus on the economic relationships between Germany and China. The links I will consider include international trade and direct investment. Lastly I highlight some elements of the so-called "German Model" or the "Berlin Way" and examine if they can be of policy relevance to China. There are four main results: first, EU-China trade and investment relationships are strong, deepening rapidly but they are somewhat unbalanced and asymmetric. Second, the economic relationships between Europe and China are focused on manufacturing. Third, the EU-China relationships are primarily Deutschland-centric. Lastly, elements of the "German Model" such as Mitbestimmung, Mittelstand and the German apprenticeship system can have important structural and policy implications as China continues to grow and experiment with reforms aiming at combining stability, harmony and competitiveness. Journal: Global Economic Review Pages: 376-386 Issue: 4 Volume: 44 Year: 2015 Month: 12 X-DOI: 10.1080/1226508X.2015.1106059 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1106059 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:4:p:376-386 Template-Type: ReDIF-Article 1.0 Author-Name: Sandra Poncet Author-X-Name-First: Sandra Author-X-Name-Last: Poncet Title: China's Emergence and Its Implications for Europe's Economies Abstract: This paper assesses how the competition between China and the EU in export markets has affected the trade performance of European countries. It first draws on a comparison between Germany and France before turning to discuss the economic and social impact of China's internationalization on Europe's economies. The results suggest that even in the recent years when China has gained prominence, it should not be blamed for more than half of the measured effects for emerging countries. Journal: Global Economic Review Pages: 387-419 Issue: 4 Volume: 44 Year: 2015 Month: 12 X-DOI: 10.1080/1226508X.2015.1099237 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1099237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:4:p:387-419 Template-Type: ReDIF-Article 1.0 Author-Name: Heli Simola Author-X-Name-First: Heli Author-X-Name-Last: Simola Title: Tracing Trade Interdependence between EU and East Asia Abstract: There have been two related trends shaping global trade during the past couple of decades: the increasing role of international supply chains and the rise of China. Increased complexity in global trade has generated a need to construct more processed trade data -- trade in value added -- in order to deepen our understanding of trade relations between countries. In this article, we present a broad picture of trade in value added between the EU28 and East Asian countries. We find that East Asia is important as a final demand and supply chain export destination, especially for Northern European countries, while for CEE countries it is more important as an import source for both final demand and supply chain trade. Trade with East Asia is least important for Southern European countries. The production structure of an EU country seems to be one of the main factors explaining the importance of supply chain trade with East Asian countries. The data also suggest that supply chain trade could support the growth of domestic value-added exports to the supply chain trade partner country as well as to other countries. Journal: Global Economic Review Pages: 420-430 Issue: 4 Volume: 44 Year: 2015 Month: 12 X-DOI: 10.1080/1226508X.2015.1103053 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1103053 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:4:p:420-430 Template-Type: ReDIF-Article 1.0 Author-Name: Chang-Soo Lee Author-X-Name-First: Chang-Soo Author-X-Name-Last: Lee Author-Name: Backhoon Song Author-X-Name-First: Backhoon Author-X-Name-Last: Song Title: Expansion of EU's Free Trade Agreements into Asian Countries and Its Impact on the Chinese Economy Abstract: This study investigates the macroeconomic impact of EU's free trade agreements with Asian countries and the US on the Chinese economy. In addition we examine the impacts on the Chinese industry output based on the framework of production network and production fragmentation. The expansion of the EU's economic reach toward ASEAN and Japan through free trade agreement will generate a positive macroeconomic effect on negotiation participants while it generates a negative effect on the Chinese economy: Some portions of existing trade and foreign direct investment will be shifted to partner countries from non-partner countries. However, according to a sectorial analysis, EU's free trade agreements with three countries result in a positive impact on China's electronics and machinery industry, because China's industry is linked to the production fragmentation and foreign affiliates play a crucial role. Journal: Global Economic Review Pages: 431-451 Issue: 4 Volume: 44 Year: 2015 Month: 12 X-DOI: 10.1080/1226508X.2015.1099248 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1099248 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:4:p:431-451 Template-Type: ReDIF-Article 1.0 Author-Name: Vito Amendolagine Author-X-Name-First: Vito Author-X-Name-Last: Amendolagine Author-Name: Claudio Cozza Author-X-Name-First: Claudio Author-X-Name-Last: Cozza Author-Name: Roberta Rabellotti Author-X-Name-First: Roberta Author-X-Name-Last: Rabellotti Title: Chinese and Indian Multinationals: A Firm-Level Analysis of their Investments in Europe Abstract: This paper contributes to the literature on Chinese and Indian multinationals investing in Europe through an empirical investigation about their identity, their characteristics and the association between their features and their international strategies. The investigation exploits a database, named EMENDATA (Emerging Multinationals' Events and Networks DATAbase), at the level of the investing firms. In relation to the mode of entry, we find that greenfield investments are a more likely option for large-sized companies. Moreover a high propensity for innovation is associated with a high probability to enter with an acquisition and with technological asset-seeking investments. Finally, high profitability is needed to invest in the EU-core countries. Journal: Global Economic Review Pages: 452-469 Issue: 4 Volume: 44 Year: 2015 Month: 12 X-DOI: 10.1080/1226508X.2015.1099235 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1099235 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:44:y:2015:i:4:p:452-469 Template-Type: ReDIF-Article 1.0 Author-Name: Guan-Chun Liu Author-X-Name-First: Guan-Chun Author-X-Name-Last: Liu Author-Name: Chien-Chiang Lee Author-X-Name-First: Chien-Chiang Author-X-Name-Last: Lee Author-Name: Lei He Author-X-Name-First: Lei Author-X-Name-Last: He Title: The Synergistic Effects Between Insurance and Credit Markets on Economic Growth: Evidence from China Abstract: Insurance and credit markets share some common roles in stimulating economic growth, whether they are complementary or not is worth researching further. Based on the generalized method of moments, this paper investigates the synergistic effects between insurance and credit markets on economic growth in Chinese different regions using an interaction term in the regression model. Moreover, to understand the different economic roles of life and nonlife insurance sectors, we include them into estimation model as well. The results indicate that total insurance and credit markets are substituted, life insurance and credit markets are substituted, and nonlife insurance and credit markets are complementary in the whole region. Specifically, the synergistic effects between insurance and credit markets on economic growth vary considerably across different regions. These findings offer several useful insights for policy-makers. Journal: Global Economic Review Pages: 1-18 Issue: 1 Volume: 45 Year: 2016 Month: 3 X-DOI: 10.1080/1226508X.2015.1075897 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1075897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:1:p:1-18 Template-Type: ReDIF-Article 1.0 Author-Name: Hongshik Lee Author-X-Name-First: Hongshik Author-X-Name-Last: Lee Author-Name: Soonhyung Sim Author-X-Name-First: Soonhyung Author-X-Name-Last: Sim Title: Global Outsourcing and Wage Inequality in Middle-Income Countries: Evidence from South Korea Abstract: A substantial number of studies have suggested that global outsourcing can induce wage inequality. As Feenstra and Hanson [(1996a) Foreign investment, outsourcing, and relative wage, in: R. C. Feestra, G. M. Hanson, and D. A. Irwin (Eds.) Political Economy of Trade Policy: Essays in Honor of Jagdish Bhagwati (Cambridge: The MIT Press), pp. 89--127] argued, global outsourcing is comparable to skill-biased technological change in that global outsourcing is more likely to increase the wage of skilled workers rather than their unskilled counterparts. We examine the effects of outsourcing on wage of skilled and unskilled workers in Korea's manufacturing sector with a focus on the dissimilar effects of outsourcing to developed countries (DCs) and less developed countries (LDCs) on relative wage. The results of system and difference GMM estimation based on manufacturing data from 1992 to 2006 indicate that outsourcing to DCs and LDCs have opposite (and significant) effects on relative wage, that is, outsourcing to DCs (LDCs) decreases the wage of skilled (unskilled) workers. Journal: Global Economic Review Pages: 19-41 Issue: 1 Volume: 45 Year: 2016 Month: 3 X-DOI: 10.1080/1226508X.2015.1081075 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1081075 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:1:p:19-41 Template-Type: ReDIF-Article 1.0 Author-Name: H. Young Baek Author-X-Name-First: H. Young Author-X-Name-Last: Baek Author-Name: Florence Neymotin Author-X-Name-First: Florence Author-X-Name-Last: Neymotin Title: International Involvement and Production Efficiency among Startup Firms Abstract: The economic theory of small firms often requires a reasoning process distinct from those typically used for large multinational enterprises (MNEs), since small firms typically do not possess the resources MNEs commonly employ to outperform similar domestic firms. In the current analysis, we argue that new small firms with international sales can better predict their revenue stream than can comparably aged firms with only domestic sales, and, as a result, international selling firms have higher levels of technical productive efficiency. We employ 7829 firm-year observations from the 2007 to 2011 years of the Kauffman Firm Survey microdata sample in our analysis. A stochastic frontier model empirically supports the result that technical productive efficiency is positively related to the foreign sales ratio. These results hold after controlling for multiple relevant owner and firm characteristics, as well as accounting for potential endogeneity concerns. Journal: Global Economic Review Pages: 42-62 Issue: 1 Volume: 45 Year: 2016 Month: 3 X-DOI: 10.1080/1226508X.2015.1084240 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1084240 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:1:p:42-62 Template-Type: ReDIF-Article 1.0 Author-Name: Mingyue Fang Author-X-Name-First: Mingyue Author-X-Name-Last: Fang Author-Name: Yuxiao Zhang Author-X-Name-First: Yuxiao Author-X-Name-Last: Zhang Title: Union and Debt: Evidence from Chinese Private Firms Abstract: Do unions really matter in China? Using a dataset containing more than 110 thousand Chinese private manufacturing firms, this paper is the first attempt to examine how unions' bargaining power affects firms' capital structures. We find that: (1) the firms' debt levels are often positively associated with their unions' bargaining powers; (2) when a firm is in financial distress, the management is more likely to issue more debt to strengthen its bargaining power against the union and increase its residual income; (3) compared with long-term debt, short-term debt is a better option for the management to increase its bargaining power and residual income. Our research indicates that the unions of private Chinese firms are an important policy instrument for the management rather than useless decorations, which provides valuable insights for us to understand the employee--employer relations and firms' capital structures in emerging economies. Journal: Global Economic Review Pages: 63-77 Issue: 1 Volume: 45 Year: 2016 Month: 3 X-DOI: 10.1080/1226508X.2015.1137482 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1137482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:1:p:63-77 Template-Type: ReDIF-Article 1.0 Author-Name: Taiyo Yoshimi Author-X-Name-First: Taiyo Author-X-Name-Last: Yoshimi Title: Welfare Implications of Currency Integration: Labor Mobility and Pricing-to-Market Abstract: In this paper, we examine the welfare cost of renouncing monetary policy autonomy in a model that includes labor mobility and pricing-to-market (PTM) behavior in firms. We find that renouncing monetary policy autonomy becomes a cost of currency integration when the consumption basket weights differ between candidate countries and when country-specific total factor productivity (TFP) shocks hit economies, even when the union fulfills the classic optimum currency area theory of labor mobility. We also found that a firm's PTM behavior has a significant effect on the welfare implications of currency integration combined with labor mobility. For instance, currency integration does not produce greater welfare losses in the PTM case (where the labor input weights differ across member countries and asymmetric labor disutility shocks occur), although greater welfare losses arise in the case of producer currency pricing. Journal: Global Economic Review Pages: 78-96 Issue: 1 Volume: 45 Year: 2016 Month: 3 X-DOI: 10.1080/1226508X.2015.1137481 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1137481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:1:p:78-96 Template-Type: ReDIF-Article 1.0 Author-Name: Ling Zhang Author-X-Name-First: Ling Author-X-Name-Last: Zhang Author-Name: Sheng Zhang Author-X-Name-First: Sheng Author-X-Name-Last: Zhang Author-Name: Na Tao Author-X-Name-First: Na Author-X-Name-Last: Tao Title: Financial System Risk Tolerance Capacity and Economic Growth: Evidence from a Cross-country Analysis Abstract: This article develops a new indicator of financial system risk tolerance capacity to see how the financial risk management function mechanism reacts to economic growth by applying a system generalized method of moments estimation technique. Based on a sample of 49 countries for the period 1998--2011, we find that both bank and stock market risk tolerance capacity can significantly promote long-run economic growth through absorbing and bearing real economic risks. These findings indicate that financial system risk tolerance capacity, which provides a powerful trial and error system, has a positive effect on long-term growth. Therefore, the policy implication is that releasing controllable financial risks actively and moderately beforehand may support scientific and technological innovation, maintain financial stability and, finally, promote long-run economic growth. Journal: Global Economic Review Pages: 97-115 Issue: 2 Volume: 45 Year: 2016 Month: 6 X-DOI: 10.1080/1226508X.2015.1124343 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1124343 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:2:p:97-115 Template-Type: ReDIF-Article 1.0 Author-Name: Sammo Kang Author-X-Name-First: Sammo Author-X-Name-Last: Kang Author-Name: Soyoung Kim Author-X-Name-First: Soyoung Author-X-Name-Last: Kim Author-Name: Jeong Wook Lee Author-X-Name-First: Jeong Wook Author-X-Name-Last: Lee Title: Reexamining the Exchange Rate Exposure Puzzle by Classifying Exchange Rate Risks into Two Types Abstract: The “exchange rate exposure puzzle” refers to the phenomenon in which the proportion of firms with significant exchange rate exposure tends to be lower than expected figures. Some studies use changes in exchange rate to indicate exchange rate risks relevant to firm value. However, a different measure of exchange rate risks, which is the volatility in exchange rate changes, can also affect the value of firms because exchange rate uncertainty can affect international trade and investments of firms. This study classifies exchange rate risks into two types, namely, changes in exchange rate and the standard deviation of exchange rate changes, and empirically examines exchange rate exposure of firms in 12 countries. The results suggest that the proportion of firms with significant exchange rate exposure increases substantially, and thus, weakens the exchange rate exposure puzzle when we also count the cases in which the standard deviation of exchange rate changes affects stock return significantly. Journal: Global Economic Review Pages: 116-133 Issue: 2 Volume: 45 Year: 2016 Month: 6 X-DOI: 10.1080/1226508X.2015.1072730 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1072730 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:2:p:116-133 Template-Type: ReDIF-Article 1.0 Author-Name: David Hudgins Author-X-Name-First: David Author-X-Name-Last: Hudgins Author-Name: Deniz Gevrek Author-X-Name-First: Deniz Author-X-Name-Last: Gevrek Title: Dynamic Labor Scheduling in Japan: Underemployment Reduction and Karoshi Avoidance Through Optimal Tracking Control Abstract: This study uses an optimal tracking control framework to design a dynamic labor schedule that determines the optimal balance between labor, leisure, and consumption. The analysis generates proactive policy rules through deterministic, stochastic, robust, and compromise specifications of a Linear-Quadratic tracking model. Our model allows workers to optimally transition away from karoshi overwork and away from underemployment. Our study provides guidance for labor scheduling by quantitatively addressing the conflicts between health, work-life balance (WLB), and productivity. In Japan, this approach can be utilized by discussion bases and WLB initiatives, whereas the previous regulatory proposals for karoshi relief have created adversarial relationships that have not merged firm objectives with worker motives. Journal: Global Economic Review Pages: 134-169 Issue: 2 Volume: 45 Year: 2016 Month: 6 X-DOI: 10.1080/1226508X.2016.1156008 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1156008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:2:p:134-169 Template-Type: ReDIF-Article 1.0 Author-Name: Byeong-Il Ahn Author-X-Name-First: Byeong-Il Author-X-Name-Last: Ahn Author-Name: Rodolfo M. Nayga Author-X-Name-First: Rodolfo M. Author-X-Name-Last: Nayga Title: Market Power of Domestic Marketers and its Influence on the Consequences of the Korea--US and Korea--Australia FTAs on the Beef Market Abstract: Domestic, US and Australian beef, which are differentiated by country of origin, are sold in Korea. In this differentiated product market, tariff reductions through Free Trade Agreements (FTAs) are expected to strengthen the competitiveness of imported beef and, therefore, to mitigate the effects arising from the market power of domestic marketers. The present study develops a simulation model that evaluates this mitigating effect by explicitly reflecting the market structure that domestic beef marketers constitute. The simulation results indicate that the farm-retail marketing margin would decrease by 10.59% or 6.79% due to the Korea--US and Korea--Australia FTAs, respectively, if domestic beef marketers formed a cartel or an oligopoly market (i.e. the degree of market power is 0.5), while the marketing margin under a competitive market scenario is simulated to have no change. The value of beef production would decrease by 1009 million dollars if the marketers form a cartel and hence exercise monopoly power. The FTAs are simulated to reduce the value of beef production by 564 million dollars under the competitive market scenario. Journal: Global Economic Review Pages: 170-188 Issue: 2 Volume: 45 Year: 2016 Month: 6 X-DOI: 10.1080/1226508X.2016.1152561 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1152561 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:2:p:170-188 Template-Type: ReDIF-Article 1.0 Author-Name: Hyun Jin Lee Author-X-Name-First: Hyun Jin Author-X-Name-Last: Lee Author-Name: Insook Cho Author-X-Name-First: Insook Author-X-Name-Last: Cho Title: Corporate Governance and Corporate Bond Liquidity Abstract: Using a unique dataset of corporate bond trading information and corporate governance evaluation scores, this study examines the determinants of corporate bond market liquidity in Korea. In particular, this study explores whether corporate governance performance of a company influences liquidity of bonds issued by the company. The paper reports three important findings. First, the issue size and age of bond are important determinants of bond liquidity. Second, liquidity of corporate bonds is influenced by changes in macroeconomic conditions. Third, and most importantly, better corporate governance increases liquidity of corporate bonds. This result suggests that corporate governance is an important determinant of bond liquidity, as it lowers transaction costs by improving transparency and reducing asymmetry of information. This paper contributes to the literature by providing new evidence that corporate governance performance is an important determinant of liquidity in corporate bond markets. Journal: Global Economic Review Pages: 189-205 Issue: 2 Volume: 45 Year: 2016 Month: 6 X-DOI: 10.1080/1226508X.2015.1137483 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1137483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:2:p:189-205 Template-Type: ReDIF-Article 1.0 Author-Name: Nicolás Cachanosky Author-X-Name-First: Nicolás Author-X-Name-Last: Cachanosky Author-Name: Andreas Hoffmann Author-X-Name-First: Andreas Author-X-Name-Last: Hoffmann Title: Monetary Policy, the Composition of GDP and Crisis Duration in Europe Abstract: This paper analyzes the effects of changes in interest rates on the composition of production in 10 European countries during the boom period of the 2000s. We find that output elasticity differs across industries and across countries for similar industries. The paper suggests that in the run-up to the 2008 crisis, the European Central Bank's low interest rate policy affected the allocation of resources across industries. This may explain the sluggish overall recovery from the crisis in Europe. Journal: Global Economic Review Pages: 206-219 Issue: 2 Volume: 45 Year: 2016 Month: 6 X-DOI: 10.1080/1226508X.2015.1137484 File-URL: http://hdl.handle.net/10.1080/1226508X.2015.1137484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:2:p:206-219 Template-Type: ReDIF-Article 1.0 Author-Name: Richard Rogerson Author-X-Name-First: Richard Author-X-Name-Last: Rogerson Title: Taxes, Health Care Provision and Aggregate Hours of Work Abstract: A recent literature has studied the role of increases in labor taxes and transfers on the evolution of hours of work across OECD countries. Much of this literature studies this issue in a one sector model. This paper develops a two sector model in order to assess various features of health care financing on aggregate hours of work. A key result is that when health care is publicly financed but rationed, the distortion on aggregate hours of work is large and independent of the tax required to finance the system. Moreover, this effect increases over time as aggregate income increases. Journal: Global Economic Review Pages: 222-232 Issue: 3 Volume: 45 Year: 2016 Month: 7 X-DOI: 10.1080/1226508X.2016.1211806 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1211806 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:3:p:222-232 Template-Type: ReDIF-Article 1.0 Author-Name: Jay Pil Choi Author-X-Name-First: Jay Pil Author-X-Name-Last: Choi Title: FRAND Royalties and Injunctions for Standard Essential Patents Abstract: I develop a stylized model of court procedures that resolve disputes concerning FRAND-encumbered standard essential patents (SEPs). I analyze the effects of injunctions and potential court-imposed FRAND rates on negotiated royalty rates. The SEP holders’ ability to hold-up is constrained by the prospect of the court-imposed license terms in case of disputes, but is not completely eliminated. Possible mechanisms to address the residual hold-up power of the SEP holders are discussed. Journal: Global Economic Review Pages: 233-250 Issue: 3 Volume: 45 Year: 2016 Month: 7 X-DOI: 10.1080/1226508X.2016.1211809 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1211809 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:3:p:233-250 Template-Type: ReDIF-Article 1.0 Author-Name: Manuel Arellano Author-X-Name-First: Manuel Author-X-Name-Last: Arellano Author-Name: Jinyong Hahn Author-X-Name-First: Jinyong Author-X-Name-Last: Hahn Title: A likelihood-Based Approximate Solution to the Incidental Parameter Problem in Dynamic Nonlinear Models with Multiple Effects Abstract: We discuss a modified objective function strategy to obtain estimators without bias to order 1/T in nonlinear dynamic panel models with multiple effects. Estimation proceeds from a bias-corrected objective function relative to some target infeasible criterion. We consider a determinant-based approach for likelihood settings, and a trace-based approach, which is not restricted to the likelihood setup. Both approaches depend exclusively on the Hessian and the outer product of the scores of the fixed effects. They produce simple and transparent corrections even in models with multiple effects. We analyze the asymptotic properties of both types of estimators when n and T grow at the same rate, and show that they are asymptotically normal and centered at the truth. Our strategy is to develop a theory for general bias-corrected estimating equations, so that we can obtain asymptotic results for a specific bias correction method using the first-order conditions. Journal: Global Economic Review Pages: 251-274 Issue: 3 Volume: 45 Year: 2016 Month: 7 X-DOI: 10.1080/1226508X.2016.1211811 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1211811 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:3:p:251-274 Template-Type: ReDIF-Article 1.0 Author-Name: Yongsung Chang Author-X-Name-First: Yongsung Author-X-Name-Last: Chang Author-Name: Sun-Bin Kim Author-X-Name-First: Sun-Bin Author-X-Name-Last: Kim Title: On the Aggregate Labor Supply: A Progress Report Abstract: At the aggregate level, the labor supply elasticity can significantly depart from the micro elasticity. In an economy where households make decisions on the labor market participation, the slope of the aggregate labor supply curve is determined by the distribution of reservation wages rather than by the willingness to substitute leisure intertemporally. We present a model economy where earnings and wealth distributions are comparable to those in the micro data. We find that the aggregate labor supply elasticity of such an economy is around 1, which is greater than the typical micro estimates but smaller than those often assumed in the aggregate models. Our model also sheds some light on the recent debate on the failure of the representative agent model. Journal: Global Economic Review Pages: 275-293 Issue: 3 Volume: 45 Year: 2016 Month: 7 X-DOI: 10.1080/1226508X.2016.1211813 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1211813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:3:p:275-293 Template-Type: ReDIF-Article 1.0 Author-Name: Jinhee Jo Author-X-Name-First: Jinhee Author-X-Name-Last: Jo Author-Name: Kyoungwon Seo Author-X-Name-First: Kyoungwon Author-X-Name-Last: Seo Title: Bayesian Analysis of Entry Games: A Simulated Likelihood Approach Without Simulation Errors Abstract: This paper provides a practical guide to Bayesian estimation of simultaneous entry games of complete information with heterogeneous firms. Bayesian inference requires computation of the likelihood, which is carried out by simulating unobservables. To avoid errors from finite simulations, we apply Andrieu and Roberts’s [2009. The pseudo-marginal approach for efficient Monte Carlo computations, Annals of Statistics, 37(2), pp. 697–725] pseudo-marginal approach. We rely also on adaptive Markov chain Monte Carlo algorithms that improve computational performance. Journal: Global Economic Review Pages: 294-309 Issue: 3 Volume: 45 Year: 2016 Month: 7 X-DOI: 10.1080/1226508X.2016.1211814 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1211814 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:3:p:294-309 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Commemorating 10 Years of the R. K. Cho Economics Prize Journal: Global Economic Review Pages: 221-221 Issue: 3 Volume: 45 Year: 2016 Month: 7 X-DOI: 10.1080/1226508X.2016.1218206 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1218206 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:3:p:221-221 Template-Type: ReDIF-Article 1.0 Author-Name: Usman Ali Author-X-Name-First: Usman Author-X-Name-Last: Ali Author-Name: Jian-Jun Wang Author-X-Name-First: Jian-Jun Author-X-Name-Last: Wang Title: Does Outbound Foreign Direct Investment Crowd Out Domestic Investment in China? Evidence from Time Series Analysis Abstract: China’s rising outbound foreign direct investment (ODI) has raised concerns as to whether it substitutes or complements domestic investment (DI). We demonstrated specification weaknesses in the previous studies and present fresh evidence on ODI–DI nexus for China. Utilizing ARDL approach for time series macroeconomic data, the study detects long-run negative one-way causality running from ODI to DI. The results provide robust evidence supporting the view that Chinese outbound foreign direct investment crowds out DI in the long run. Journal: Global Economic Review Pages: 419-433 Issue: 4 Volume: 47 Year: 2018 Month: 10 X-DOI: 10.1080/1226508X.2018.1492431 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1492431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:4:p:419-433 Template-Type: ReDIF-Article 1.0 Author-Name: Kyung-woo Lee Author-X-Name-First: Kyung-woo Author-X-Name-Last: Lee Author-Name: Younghun Shim Author-X-Name-First: Younghun Author-X-Name-Last: Shim Title: Fiscal and Welfare Effects of Balanced-budget Reforms of Korea’s National Pension System Abstract: This paper evaluates the fiscal sustainability of the benchmark pension system in Korea, which will come into effect in 2028 following the 2007 pension reforms, and the welfare effects of pension reforms aimed at a balanced budget over the life cycle. To this end, we measure the lifetime pension deficit, i.e. the difference between total pension benefits and total pension contributions in an individual’s lifetime. We find that the benchmark pension system is expected to run an average lifetime deficit of 22.36 million won (approximately $22,360), and the current pension fund is unlikely to finance the sum of future deficits. The optimal pension reform for the zero average lifetime deficit reduces social welfare by as much as a 2.06% fall in consumption and is characterised with the contribution rate of 20.3% and an average replacement rate of 66.4%. These values are much higher than the respective benchmark values, 9% and 40%, because the increase in pension benefits, combined with the increase in pension contributions, can reduce the income inequality due to the progressivity of pension benefits and the proportionality of pension contributions. Journal: Global Economic Review Pages: 367-394 Issue: 4 Volume: 47 Year: 2018 Month: 10 X-DOI: 10.1080/1226508X.2018.1507753 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1507753 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:4:p:367-394 Template-Type: ReDIF-Article 1.0 Author-Name: Joseph Han Author-X-Name-First: Joseph Author-X-Name-Last: Han Title: Long-Term Effects of Labour Market Entry Conditions: The Case of Korea Abstract: This study investigates the effects of labour market conditions at the time of graduation, proxied by the local unemployment rate, on long-term family and labour market outcomes in Korea. The examination yields four main findings. Labour market entry conditions have strong and persistent effects among high school graduates. Male college graduates have a persistently lower probability of working at large firms if the demand for local labour shrinks at the time of graduation. Self-employment can be persistently hampered by adverse economic conditions at graduation. Family formation and childbearing are temporarily affected by labour market entry conditions, especially for less educated women. The first three findings highlight the notable segmentation of the Korean labour market into protected jobs in large firms – mostly part of business groups (chaebols) – and unprotected jobs. Journal: Global Economic Review Pages: 434-463 Issue: 4 Volume: 47 Year: 2018 Month: 10 X-DOI: 10.1080/1226508X.2018.1512417 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1512417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:4:p:434-463 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Ma Author-X-Name-First: Yong Author-X-Name-Last: Ma Title: Financial Development, Financial Structure, and the Growth Effect of Monetary Policy: International Evidence Abstract: This paper investigates how financial development and financial structure affect the growth effect of monetary policy using panel data from 49 countries over the period 1980–2014. We find robust evidence that financial development has a significantly negative impact on the growth effect of monetary policy. We also find that the growth effect of monetary policy tends to be more pronounced as the financial structure of a country becomes more market-based. These results not only add interesting new evidence to the recent literature on the growth effects of monetary policy, but also provide some important insights into the financial determinants of monetary policy effects on economic growth, which have largely been ignored in the previous literature. Journal: Global Economic Review Pages: 395-418 Issue: 4 Volume: 47 Year: 2018 Month: 10 X-DOI: 10.1080/1226508X.2018.1521297 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1521297 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:4:p:395-418 Template-Type: ReDIF-Article 1.0 Author-Name: Carla Blázquez-Fernández Author-X-Name-First: Carla Author-X-Name-Last: Blázquez-Fernández Author-Name: David Cantarero-Prieto Author-X-Name-First: David Author-X-Name-Last: Cantarero-Prieto Author-Name: Marta Pascual-Saez Author-X-Name-First: Marta Author-X-Name-Last: Pascual-Saez Title: Does Rising Income Inequality Reduce Life Expectancy? New Evidence for 26 European Countries (1995–2014) Abstract: An open debate these days is about how national income inequality could affect individuals’ health outcomes. Therefore, the present study aims to provide new evidence regarding life expectancy determinants and how they are related to the income inequality hypothesis. Precisely, it is provided new evidence on this relationship for 26 European countries during the period 1995–2014. The analysis is based on panel data techniques, with the latest data from both Eurostat and the OECD Health Statistics. Furthermore, data from the World Bank is also applied. Besides, we have tested the sensitivity of the estimates in our empirical analysis using three clusters of countries. Our results suggest that income inequality does not significantly reduce health in developed societies, like the European ones. Notwithstanding, as income inequality can be sometimes harmful for population health, these issues must be taken into account in order to improve health care policies. Journal: Global Economic Review Pages: 464-479 Issue: 4 Volume: 47 Year: 2018 Month: 10 X-DOI: 10.1080/1226508X.2018.1526098 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1526098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:4:p:464-479 Template-Type: ReDIF-Article 1.0 Author-Name: Fangzhao Zhou Author-X-Name-First: Fangzhao Author-X-Name-Last: Zhou Author-Name: Yajing Fu Author-X-Name-First: Yajing Author-X-Name-Last: Fu Author-Name: Yunbi An Author-X-Name-First: Yunbi Author-X-Name-Last: An Author-Name: Jun Yang Author-X-Name-First: Jun Author-X-Name-Last: Yang Title: Impacts of Ownership Balance and Nonexecutive Directors on Bank Performance and Risk Taking: Evidence from City Commercial Banks in China Abstract: This paper investigates the impacts of nongovernmental stake, ownership balance, and nonexecutive directors on bank performance and risk taking in city commercial banks (CCBs) in China. We find that ownership balance can improve CCBs’ financial performance and reduce their bankruptcy risk as well as nonperforming loan level. Nonexecutive directors can help reduce bankruptcy risk, but have no significant effect on performance or nonperforming loans. The impacts of ownership balance and nonexecutive directors become more prominent when the nongovernmental stake is relatively high, suggesting that mixed ownership reform can promote bank performance and risk control via these two avenues. Journal: Global Economic Review Pages: 1-24 Issue: 1 Volume: 48 Year: 2019 Month: 1 X-DOI: 10.1080/1226508X.2018.1528170 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1528170 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 Author-Name: Nüket Kırcı Çevik Author-X-Name-First: Nüket Author-X-Name-Last: Kırcı Çevik Author-Name: Asuman Koç Yurtkur Author-X-Name-First: Asuman Author-X-Name-Last: Koç Yurtkur Author-Name: Sel Dibooglu Author-X-Name-First: Sel Author-X-Name-Last: Dibooglu Title: The Relationship Between Price Stability and Financial Stability: Evidence From Major Emerging Economies Abstract: We examine the relationship between price stability and financial stability for major emerging economies using a Markov regime-switching model. Empirical results suggest that monetary policy is consistent with the Taylor rule in all countries except for India and all countries followed both low and high inflation targeting monetary policy regimes. Low inflation targeting regime seems to be more persistent and has higher duration than high inflation targeting regimes except for Indonesia and South Africa. All countries seem to have had financial stability concerns when they formulated their monetary policy as the coefficient of the financial stress index is statistically significant at least in one regime. Overall the results suggest that Taylor rule-based monetary policies have been implemented to various degrees in major emerging economies to achieve economic stability, price stability, and financial stability. Journal: Global Economic Review Pages: 25-45 Issue: 1 Volume: 48 Year: 2019 Month: 1 X-DOI: 10.1080/1226508X.2018.1531353 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1531353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:1:p:25-45 Template-Type: ReDIF-Article 1.0 Author-Name: Sung Jun Park Author-X-Name-First: Sung Jun Author-X-Name-Last: Park Author-Name: Taehyun Kim Author-X-Name-First: Taehyun Author-X-Name-Last: Kim Title: Seeking a Better Portfolio with Industry Recommendations Abstract: This paper provides novel evidence that investors can build a better performing portfolio by exploiting industry level consensus recommendations. A minimum variance portfolio, combined with consensus recommendations, yields a higher Sharpe ratio and certainty equivalent returns. A minimum variance portfolio with no short-selling constraint consistently outperforms an equally weighted portfolio when exploiting consensus recommendations, which is an innovation compared to the existing literature. Our results suggest that sell-side analysts and brokers provide valuable information in the financial market and we benefit from incorporating the information in the portfolio optimisation. Journal: Global Economic Review Pages: 46-62 Issue: 1 Volume: 48 Year: 2019 Month: 1 X-DOI: 10.1080/1226508X.2018.1553112 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1553112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:1:p:46-62 Template-Type: ReDIF-Article 1.0 Author-Name: Ki Young Park Author-X-Name-First: Ki Young Author-X-Name-Last: Park Title: Unintended Consequences of Well-Intentioned Policies of South Korea: Lessons for Emerging Economies on Capital Market Liberalisation Abstract: While South Korea has achieved remarkable economic and democratic transformation during the past decades, it has suffered from two major economic crises, both of which are essentially liquidity crises. In this regard, the purpose of this study is twofold: one is to review the debates on capital market liberalisation and highlight the dark sides of South Korea’s experience. The other is to explain why South Korea has experienced another crisis in 2008 even though it already experienced the same liquidity crisis in 1997. We highlight the unintended consequences of policies with their own legitimate purposes and provide lessons on capital market liberalisation for emerging economies. Journal: Global Economic Review Pages: 63-87 Issue: 1 Volume: 48 Year: 2019 Month: 1 X-DOI: 10.1080/1226508X.2018.1559074 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1559074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:1:p:63-87 Template-Type: ReDIF-Article 1.0 Author-Name: Yu-cheng Lai Author-X-Name-First: Yu-cheng Author-X-Name-Last: Lai Title: Effect of Participation of Foreign Migrant Workers in Labour Market on Native Workers: Evidence Based on Change Noticed in College Premium in Taiwan ROC Abstract: Using Manpower Utilization Survey data for 14 years from 1999 to 2012, we applied the DDDD (Differences–in–differences–in–differences–in–differences) estimation method to check if rising presence of foreign migrant workers in Taiwan’s domestic labour market had any impact on employment opportunities and wages earned by native Taiwanese workers over time. We used the data capturing the effect of college premium (viz., the additional cost to be borne for getting admission into college) paid by the natives on domestic wage rate during this period. College premium is an indicator of demand and supply for educated labour and we intend to see if the premium has grown with time when influx of foreign migrant workers has grown too. From the results, two interesting phenomena caught our attention. First, labour policy adopted by the Government in Taiwan has played an important role in increasing the influx of foreign workers into domestic labour market, which resulted in significant change in college premium paid by the natives. And, this effect lasted even when instances of strikes and reported cases of labour disputes were relatively higher. Second, the effect of the policy has been varying across genders as our data shows that policy on employment of foreign workers has affected job opportunities of native men workers more than it affected job opportunities of their female counterpart. Journal: Global Economic Review Pages: 88-110 Issue: 1 Volume: 48 Year: 2019 Month: 1 X-DOI: 10.1080/1226508X.2019.1571429 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1571429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:1:p:88-110 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Global Economic Review: SPECIAL ISSUE ON NEW INDUSTRIAL PLATFORM AND INNOVATION IN EAST ASIA: ECONOMICS OF THE 4 INDUSTRIAL REVOLUTION Journal: Global Economic Review Pages: 111-111 Issue: 1 Volume: 48 Year: 2019 Month: 1 X-DOI: 10.1080/1226508X.2019.1575582 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1575582 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:1:p:111-111 Template-Type: ReDIF-Article 1.0 Author-Name: Siew Mei Chan Author-X-Name-First: Siew Mei Author-X-Name-Last: Chan Author-Name: Tuck Cheong Tang Author-X-Name-First: Tuck Cheong Author-X-Name-Last: Tang Title: Foreign Direct Investment Inflows and Intellectual Property Rights: Empirical Evidence from Different Income Groups Abstract: This study examines the impact of intellectual property rights (IPRs) on Foreign direct investment (FDI) inflows by considering global data with three income groups classified by World Bank (i.e. high-, middle-, and low-income groups). The empirical model relates FDI inflows to IPRs, controlled by a set of known variables, namely GDP per capital, trade openness, real exchange rate, and real interest rate. The study covers panel data of between 35 and 100 countries for the period 1980–2014. The panel cointegration tests suggest that FDI inflow and IPRs with the other control variables are cointegrated for full countries and high-income group. Their estimated (long-run) coefficients are 0.04 and 0.18, respectively, but insignificant in the short-run. The impact (short-run) of TRIPS agreement is positive for full countries, but negative for low-income group. Non-causality tests further support the role of IPRs on FDI. Various transmission channels have been identified, in particularly for low-income countries. This study enlightens policymakers about the policy on creating a conducive and sustainable environment for IPRs in order to encourage FDI inflows to their countries. Journal: Global Economic Review Pages: 372-401 Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1340183 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1340183 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:372-401 Template-Type: ReDIF-Article 1.0 Author-Name: Oyebola Fatima Etudaiye-Muhtar Author-X-Name-First: Oyebola Fatima Author-X-Name-Last: Etudaiye-Muhtar Author-Name: Rubi Ahmad Author-X-Name-First: Rubi Author-X-Name-Last: Ahmad Author-Name: Bolaji Tunde Matemilola Author-X-Name-First: Bolaji Tunde Author-X-Name-Last: Matemilola Title: Corporate Debt Maturity Structure: The Role of Firm Level and Institutional Determinants in Selected African Countries Abstract: An appropriate debt maturity structure is essential for firms to enable them align asset structure to liabilities to prevent a mismatch. This study investigates the role of firm-level and institutional variables on debt maturity structure in selected African countries. Using panel generalised method of moment that addresses endogeneity problem; our findings reveal a dynamic process of adjustment to optimal debt maturity structure. Furthermore, firm-level variables (leverage, asset structure and firm size) provide support for the contracting cost, signalling and matching principle theories of debt maturity structure. Results of institutional variables suggest that better developed institutions promote long-term debt maturity structures. Journal: Global Economic Review Pages: 422-440 Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1350589 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1350589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:422-440 Template-Type: ReDIF-Article 1.0 Author-Name: Tao Chen Author-X-Name-First: Tao Author-X-Name-Last: Chen Title: Stock Return Anomalies from Ending-Digit Effects Around the World Abstract: Ending-digit effects describe the presence of abnormal returns when the ending digits of stock prices are one penny below or above the zero-ending round number. Using data from 68 countries, I find abnormal positive returns when stock prices surpass the zero-ending threshold (i.e. when the ending digit is 1) but abnormal negative returns when prices drop below the same threshold (i.e. when the ending digit is 9). My findings survive alternative robustness checks. This ending-digit effect is more prominent in countries with more active innovation and better governance. Journal: Global Economic Review Pages: 464-494 Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1355739 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1355739 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:464-494 Template-Type: ReDIF-Article 1.0 Author-Name: Jinho Shin Author-X-Name-First: Jinho Author-X-Name-Last: Shin Author-Name: Young-Han Kim Author-X-Name-First: Young-Han Author-X-Name-Last: Kim Title: Optimal Exit Costs of Foreign Direct Investment Abstract: This paper examines the optimal policy on exit costs of foreign direct investment for a host country considering the impact of varying income level and host country’s risk aversion against volatile FDI flows. Based on a dynamic model about the impact of the exit costs on FDI inflows and capital formation, we demonstrate that a host country should determine the exit cost considering two counterbalancing factors, that is, facilitating higher FDI inflows and reducing volatility of FDI inflows. When a host country is less vulnerable to volatility with inelastic risk aversion against FDI volatility, it is optimal for the host country with a negative income shock to take a more aggressive approach to induce FDI inflows by lowering exit costs. However, if the host country is more vulnerable to volatility with elastic risk aversion, the host country is advised to take a conservative approach by increasing exit costs to reduce FDI volatility. These findings, supported by the OECD data on 42 countries’ exits costs, implicate that developing countries are recommended to lower exit costs to induce higher FDI inflows when they are not highly vulnerable to volatility shocks. Journal: Global Economic Review Pages: 402-421 Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1355740 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1355740 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:402-421 Template-Type: ReDIF-Article 1.0 Author-Name: Youngwan Kim Author-X-Name-First: Youngwan Author-X-Name-Last: Kim Author-Name: Taehee Whang Author-X-Name-First: Taehee Author-X-Name-Last: Whang Title: The Effects of the President’s Emergency Plan for AIDS Relief on the Economies and Domestic Politics of Focus Countries Abstract: President G.W. Bush’s Emergency Plan for AIDS Relief (PEPFAR) has been rated as one of the successful US aid interventions of recent decades. We investigate the impact of PEPFAR on economic development, democracy, and human rights by comparing focus countries that received PEPFAR with other countries that did not receive PEPFAR from 2003 to 2008. Moreover, we examine specific changes made within focus countries after the implementation of PEPFAR using Difference-in-Difference estimation. Our results show that PEPFAR did improve economic conditions in focus countries but had a limited impact on political conditions, that is, on democracy and human rights. Journal: Global Economic Review Pages: 441-463 Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1367316 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1367316 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:441-463 Template-Type: ReDIF-Article 1.0 Author-Name: Suk Hyun Author-X-Name-First: Suk Author-X-Name-Last: Hyun Author-Name: Donghyun Park Author-X-Name-First: Donghyun Author-X-Name-Last: Park Author-Name: Shu Tian Author-X-Name-First: Shu Author-X-Name-Last: Tian Title: Infrastructure Bond Markets Development in Asia: Challenges and Solutions Abstract: To sustain economic growth momentum, Asia needs to continue investing heavily in infrastructure such as roads, ports, and power plants. Financing the region’s huge demand for infrastructure investments is an essential issue for policy-makers across the region. Against the backdrop of expanding fiscal burdens of Asian governments and more stringent capital requirements on bank lending, local currency bonds can serve as an alternative for infrastructure financing in Asia. In this paper, we use empirical analysis to identify the major determinants of infrastructure bond market development. Evidence indicates that an economy’s size is positively related to infrastructure bond market development. Furthermore, we find that Project Bond Initiative, a European Union initiative, contributed significantly to infrastructure development in Europe. The implication for Asian policy-makers is that deepening regional integration of Asian bond markets would help Asian economies to reach an efficient economic scale to foster infrastructure bond market and policy measures in the forms of credit enhancement would facilitate issuance of infrastructure bonds. Journal: Global Economic Review Pages: 351-371 Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1379910 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1379910 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:351-371 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: The 11th R.K. Cho Economics Prize Principle of Nomination Journal: Global Economic Review Pages: 495-496 Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1386819 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1386819 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:495-496 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Global Economic Review Pages: ebi-ebi Issue: 4 Volume: 46 Year: 2017 Month: 10 X-DOI: 10.1080/1226508X.2017.1389459 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1389459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Panayiotis Tzeremes Author-X-Name-First: Panayiotis Author-X-Name-Last: Tzeremes Title: Does the Environmental Kuznets Curve Exist in the Chinese Regions? Abstract: This paper disentangles the existence of Environmental Kuznets Curve across the Chinese regions as autonomous areas. First it makes use of the time-varying method to measure that strand for thirty Chinese regions over the period 1997–2012. The influence of income on CO2 emissions diminishes steadily from Western regions to Middle and Eastern regions. Lastly, we can observe that the validity of Environmental Kuznets Curve is exerted for one region, whilst the N-shaped curve is valid for the majority of the rest of the Chinese regions. Journal: Global Economic Review Pages: 363-377 Issue: 4 Volume: 48 Year: 2019 Month: 10 X-DOI: 10.1080/1226508X.2019.1656543 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1656543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:4:p:363-377 Template-Type: ReDIF-Article 1.0 Author-Name: Tae Bong Kim Author-X-Name-First: Tae Bong Author-X-Name-Last: Kim Title: Reconciling Output and Unemployment Fiscal Multipliers Abstract: This paper provides a macroeconomic model that can simultaneously explain output and unemployment multipliers which are consistent with empirical evidence. To this end, this paper has merged and investigated a model with deep habit formation in private and public consumptions and a model with a labour market friction that generates involuntary unemployment stemming from the monopolistic power of differentiated labour services. The model with a baseline calibration seems to produce quantitatively plausible responses of key macroeconomic variables in response to a government expenditure shock. Journal: Global Economic Review Pages: 378-395 Issue: 4 Volume: 48 Year: 2019 Month: 10 X-DOI: 10.1080/1226508X.2019.1605922 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1605922 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:4:p:378-395 Template-Type: ReDIF-Article 1.0 Author-Name: Wei Cui Author-X-Name-First: Wei Author-X-Name-Last: Cui Author-Name: Insook Cho Author-X-Name-First: Insook Author-X-Name-Last: Cho Title: Household’s Happiness and Financial Market Participation Abstract: Using the 2014 China Family Panel Studies, this study examines the impact of household’s subjective well-being on financial decision. It investigates whether happiness affects household’s decision to participate in risky financial market. This study finds a non-linear relationship between happiness and the probability of financial market participation. The probability of risky financial market participation increases as self-reported happiness measure increases. However, the probability declines slightly at the highest level of self-reported happiness measure. In order to address a potential endogeneity problem, this study uses the Two Stage Least Squaredmodel with two sets of instrumental variables. These findings provide a strong support for the hypothesis that a person’s subjective well-being is one of the major determinants of household’s economic behaviours, and provide an important implication on household portfolio research. Journal: Global Economic Review Pages: 396-418 Issue: 4 Volume: 48 Year: 2019 Month: 10 X-DOI: 10.1080/1226508X.2019.1640629 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1640629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:4:p:396-418 Template-Type: ReDIF-Article 1.0 Author-Name: Chun-Teck Lye Author-X-Name-First: Chun-Teck Author-X-Name-Last: Lye Author-Name: Jiunn-Shyan Khong Author-X-Name-First: Jiunn-Shyan Author-X-Name-Last: Khong Author-Name: Chee-Wooi Hooy Author-X-Name-First: Chee-Wooi Author-X-Name-Last: Hooy Title: Board Gender Diversity, Investor Protection, and Private Information-Based Trading Abstract: This study examines the effects of board gender diversity and investor protection on private information-based trading and its persistent form. The results generally show that board gender diversity plays a significant part in preventing stock trading activities based on private information as well as persistent private information-based trading. Investor protection is also found to be significant and more pronounced in mitigating private information-based trading, but its function is hindered by the persistence of private information-based trading. Overall, the findings suggest that, besides strengthening the investor protection, policymakers should also encourage the involvement of women on boards of directors. Journal: Global Economic Review Pages: 419-439 Issue: 4 Volume: 48 Year: 2019 Month: 10 X-DOI: 10.1080/1226508X.2019.1636701 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1636701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:4:p:419-439 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Kim Author-X-Name-First: Yong Author-X-Name-Last: Kim Title: Skill Accumulation in the Search Unemployment Model Abstract: I analyze general skill accumulation (training) and its financing among labor market entrants in a search unemployment equilibrium. Becker's general skill finance rule is modified for a search economy: although skill accumulation is associated with a hold-up problem, since it benefits future job vacancies which workers expect to be matched with, if vacancies direct their search to workers of different skill levels, workers internalize this externality. An extended model analyzes whether to accumulate skills through training or education. Small differences in the relative cost of acquiring education can lead to large differences in skill levels in the labor market. Journal: Global Economic Review Pages: 440-462 Issue: 4 Volume: 48 Year: 2019 Month: 10 X-DOI: 10.1080/1226508X.2019.1678395 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1678395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:4:p:440-462 Template-Type: ReDIF-Article 1.0 Author-Name: Soh Young In Author-X-Name-First: Soh Young Author-X-Name-Last: In Author-Name: Dane Rook Author-X-Name-First: Dane Author-X-Name-Last: Rook Author-Name: Ashby Monk Author-X-Name-First: Ashby Author-X-Name-Last: Monk Title: Integrating Alternative Data (Also Known as ESG Data) in Investment Decision Making Abstract: What is environmental, social, and governance (ESG) data and how do we evaluate its quality and effectiveness? This form of evaluation is important, as it is a precondition for investors trying to integrate ESG in investment decisions. Previous literature describes intrinsic properties of ESG data (e.g. multifaceted-ness and context dependence) and highlights a trade-off between the validity and reliability of ESG data, which is often tied to the lack of theoretical foundations and scarcity of high-quality ESG data. Encouragingly, new data technologies have improved the accessibility, availability, and transparency of ESG data, but an agreed theoretical framework to evaluate ESG data quality is still lacking. This paper seeks to fill that theoretical gap by proposing a ‘user-oriented’ approach to evaluate ESG data. In this framework, we consider ESG data to be a ‘continuous concept with limitless boundaries’ and characterise it in terms of its width and depth. The bearing of width and depth on ESG data quality is ultimately a function of the investment decisions in which such data is used: the approach we endorse is therefore user-centric. This study then shows how ESG data, when it is of high quality, maps onto the investment decision-making processes. Journal: Global Economic Review Pages: 237-260 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1643059 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1643059 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:237-260 Template-Type: ReDIF-Article 1.0 Author-Name: Jaehoon Lee Author-X-Name-First: Jaehoon Author-X-Name-Last: Lee Title: New Revolution in Fund Management: ETF/Index Design by Machines Abstract: Two ETFs were listed to track the secondary-battery industry on 12 September 2018 in the Korea Stock Exchange market. They are virtually identical except that one is designed by humans while the other is made by machines. This paper compares the two ETFs and find little difference in their investment strategies except that machines are more likely to pick high book-to-market stocks than humans. Machines are also more likely to pick past losers and outperform human-designed ETF afterwards. The results suggest that machines can do equally good as humans as ETF/index designers. Journal: Global Economic Review Pages: 261-272 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1632217 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1632217 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:261-272 Template-Type: ReDIF-Article 1.0 Author-Name: Hyelin Choi Author-X-Name-First: Hyelin Author-X-Name-Last: Choi Author-Name: Semin Kim Author-X-Name-First: Semin Author-X-Name-Last: Kim Author-Name: Taehwan Jung Author-X-Name-First: Taehwan Author-X-Name-Last: Jung Title: The Role of Innovation in Upgrading in Global Value Chains Abstract: We examine the role of innovative efforts in industries from the perspective of global value chains (GVCs). We set up a simple model and empirically test it using patent and bilateral export decomposition data. The model shows that innovative activities assumed to decrease the cost of conducting high-skilled tasks can upgrade the position of the industry in GVCs. This is also supported by data on patents and GVC-related data from the OECD and the Asian Development Bank. The empirical results reveal that a higher number of patent applications are closely related to more production of intermediate goods rather than assembly. Journal: Global Economic Review Pages: 273-283 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1636703 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1636703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:273-283 Template-Type: ReDIF-Article 1.0 Author-Name: Denis Yongmin Joe Author-X-Name-First: Denis Yongmin Author-X-Name-Last: Joe Author-Name: Frederick Dongchuhl Oh Author-X-Name-First: Frederick Dongchuhl Author-X-Name-Last: Oh Author-Name: Heechan Yoo Author-X-Name-First: Heechan Author-X-Name-Last: Yoo Title: Foreign Ownership and Firm Innovation: Evidence from Korea Abstract: This study examines whether foreign equity investment promotes domestic firms’ innovation activities. Using panel data on the Korean firms during the 1999–2013 period, we find that foreign ownership has a positive effect on firms’ innovation activities. Furthermore, we also show that, as compared to non-chaebol firms, chaebol firms’ innovation activity becomes much greater with the increase of foreign ownership. Finally, we investigate industry-level spillover effects of innovation. Specifically, we find that foreign ownership promotes innovation activities via forward linkage, the effect of which is also more pronounced in chaebol firms. Journal: Global Economic Review Pages: 284-302 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1632729 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1632729 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:284-302 Template-Type: ReDIF-Article 1.0 Author-Name: Jungho Kim Author-X-Name-First: Jungho Author-X-Name-Last: Kim Title: Does Foreign Direct Investment Matter to Domestic Entrepreneurship? The Mediating Role of Strategic Alliances Abstract: This study investigates the impact of foreign direct investment (FDI) on domestic entrepreneurship in a host country by analysing a unique panel dataset of FDI and startup rates in Korean industries. It finds that FDI with a time lag has a positive effect on the startup rate, implying that inward FDI promotes domestic entrepreneurship. It shows that the strategic alliances moderate the relationship between FDI and the startup rate, depending upon the types of FDI and alliances. Both intra- and inter-industry alliances enhance the positive effect of foreign greenfield investment, while inter-industry alliances mitigate the effect of foreign acquisition. Journal: Global Economic Review Pages: 303-319 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1635037 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1635037 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:303-319 Template-Type: ReDIF-Article 1.0 Author-Name: Won Hyeok Kim Author-X-Name-First: Won Hyeok Author-X-Name-Last: Kim Author-Name: Seohyun Lee Author-X-Name-First: Seohyun Author-X-Name-Last: Lee Author-Name: Myungkyu Shim Author-X-Name-First: Myungkyu Author-X-Name-Last: Shim Author-Name: Hee-Seung Yang Author-X-Name-First: Hee-Seung Author-X-Name-Last: Yang Title: Technological Progress and Youth Employment in South Korea Abstract: This paper analyzes the extent to which technology progress and youth employment are related. In doing so, we divide workers into two groups – young workers and old (prime-aged) workers - and then estimate the elasticity of substitution between (physical) capital and workers à la Jaimovich et al. (2013. “The Demand for Youth: Explaining Age Differences in the Volatility of Hours.” American Economic Review 103 (7): 3022–3044) by using the Korean labour market data between 2000 and 2014. Our findings indicate that the elasticity of substitution is greater (or at least not smaller) for young workers than for old workers. Journal: Global Economic Review Pages: 320-333 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1633377 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1633377 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:320-333 Template-Type: ReDIF-Article 1.0 Author-Name: Hye Yeon Kwon Author-X-Name-First: Hye Yeon Author-X-Name-Last: Kwon Author-Name: Illoong Kwon Author-X-Name-First: Illoong Author-X-Name-Last: Kwon Title: R&D Spillovers for Public R&D Productivity Abstract: This paper empirically investigates whether the productivity of a public (government-funded) R&D project improves when the aggregate R&D investment in the same technology field increases. Based on the unique project level data that cover almost entire public R&D projects in Korea, this paper shows that aggregate investment in other public R&D projects in the same technology field increases a public R&D project’s outputs both independent of its project expenditure (additive spillover effects) and interactive with its project expenditure (multiplicative spillover effects). The spillover effects from the aggregate private R&D investment in the same technology field also exist, but to a much lesser extent. Journal: Global Economic Review Pages: 334-349 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1638812 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1638812 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:334-349 Template-Type: ReDIF-Article 1.0 Author-Name: Taehyun Kim Author-X-Name-First: Taehyun Author-X-Name-Last: Kim Title: Financing Technological Innovation: Evidence from Patent-Intensive Firms Abstract: Equityholders of firms with high debt loads have an incentive to underinvest, a distortion that can be most costly for firms with attractive growth options. Using a novel patent-based measure of a firm's growth options, we find that firms issue more equity and shy away from debt financing when they have larger investment opportunities sets. The results are more pronounced among firms in patent-intensive industries. The findings suggest the existence of conflicts of interest between debtholders and equityholders. Our results are consistent with the use of conservative debt policies by technology-intensive firms to mitigate the debt overhang associated with their future growth options. Journal: Global Economic Review Pages: 350-362 Issue: 3 Volume: 48 Year: 2019 Month: 7 X-DOI: 10.1080/1226508X.2019.1636702 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1636702 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:3:p:350-362 Template-Type: ReDIF-Article 1.0 Author-Name: Tomoko Hamada Author-X-Name-First: Tomoko Author-X-Name-Last: Hamada Title: Introduction: Anthropology and Business in Asia Abstract: The theme of this volume is “Culture, Corporation, and Economy in Asia.” It introduces seven articles written by leading business anthropologists. Anthropology is the study of humans, past and present. The central concern of anthropologists is the application of anthropological knowledge to the solution of human problems. This introductory article briefly summarizes the history of anthropology and business studies in Japan, Korea, and China, and examines the intertwined relationship of this branch of anthropology with the history of East Asian colonialism. The author then introduces anthropology’s methodology and perspective that emphasize holistic, comparative, empirical, inductive, and ethno-historically oriented mode of inquiry. Anthropology regards the economic organization not only as an entity dealing with financial issues, but also as a cultural-emitter that operates in a nexus of multiple stakeholder-agencies. To study companies and economic activities in Asia anthropologically is to explore organizationally mediated, symbol-producing practices, schemes, actions, and consequences, that interact with politico-economic forces and institutional assemblage, both locally and globally. The author argues for combining the critical ethnography of Asian business on the ground, with the macro-level analyses of economic conditions and socio-political movements. Journal: Global Economic Review Pages: 1-19 Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1393719 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1393719 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Ann Jordan Author-X-Name-First: Ann Author-X-Name-Last: Jordan Title: The Significance of Enterprise Anthropology in Asia Abstract: Anthropology is known for its qualitative methods and its body of theory which is based on 150 years of study of human origins and cultures. This vast body of knowledge provides a base for the continuing study of humans in all contexts and twenty-first-century anthropology includes an array of subfields specializing in human behavior in diverse contexts. Enterprise anthropology is one of these subfields and this volume captures some of the valuable work being conducted in this field in Asia. It is a welcome addition to the literature on business anthropology not only for the quality of the research but also because it demonstrates the growth of the field in Asia. In this chapter, I first discuss enterprise anthropology and its relation to the field of business anthropology. Then I provide a brief history of the field’s development to put the importance of this current volume in context. Journal: Global Economic Review Pages: 20-27 Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1393721 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1393721 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:20-27 Template-Type: ReDIF-Article 1.0 Author-Name: Hirochika Nakamaki Author-X-Name-First: Hirochika Author-X-Name-Last: Nakamaki Title: Gyōki as a Religious Entrepreneur: An Activist Who Linked Development and Buddhism, the Public and Private Sectors Abstract: This paper aims to clarify managerial aspects of a Buddhist monk who was successful in recruiting commoners for the construction works in Nara Period (712–784). He is well known for his contribution to the construction of Great Bronze Buddha at Toudaizi Temple in Nara. Gyouki/Gyougi (668–749) was a Buddhist priest, born in Kawati Province, as a descendant of Wang In who came from Paekche. Gyouki’s religious enterprise is characterised by Buddhist activity of merit making with definite purpose, plan, and management for the common people. It was based on altruism of deeds, such as donation of field, money and labour by the community of believers who were willing to offer. His community was engaged in the construction works of roads and bridges, nourishment to the patients, and benevolence to the poor and the suffered. From the management perspectives, Gyouki carried the ball by himself, but organised his projects which were supported by voluntary associations. It was a project based enterprise of men and women, but also assisted by the craftsmen’s groups of Korean descent. Journal: Global Economic Review Pages: 28-36 Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1393722 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1393722 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:28-36 Template-Type: ReDIF-Article 1.0 Author-Name: Jijiao Zhang Author-X-Name-First: Jijiao Author-X-Name-Last: Zhang Title: Cultural Preservation and Urban Development: Case Studies on Chinese Old Brand Enterprise Abstract: When we talk about “City Development, Preservation, and Hospitality”, we do not forget to discuss Chinese Old Brand Enterprises. These enterprises, labeled with distinctive historical character, enjoy high reputation and wide recognition, are very important parts of urban cultural preservation and economic development. Nowadays, China is called an emerging economy in the world. In fact, China has a long history of business tradition for thousands of years. Especially, Chinese Old Brand Enterprises are those that inherit Chinese traditional culture and bear unique techniques, products, and services in their operations. The urban system in most countries is influenced by market forces and enterprises. Cities that produce goods and services that are in demand and attract people to live in them will have faster growth than those that do not. Journal: Global Economic Review Pages: 37-46 Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1393723 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1393723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:37-46 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Yotova Author-X-Name-First: Maria Author-X-Name-Last: Yotova Title: Ethnographic Heritage as a Branding Strategy: A Case Study of Yogurt in Bulgaria and Japan Abstract: This article explores the various ways in which ethnographic images are deployed in branding strategies by Bulgarian and Japanese companies to frame industrial food as cultural heritage. Examining the history and marketing strategies of yogurt in Japan, I demonstrate how international marketing and cooperation has influenced the definitions, meanings and values of yogurt. In Japan, companies turn to ethnographic images of Bulgaria to sell their products, emphasizing visions of rural life over Bulgarian yogurt-making technology. At the same time, the fact that Bulgarian yogurt has turned into a symbol of health and wellbeing in one of the world’s economic powers is a source of national pride for consumers in post-socialist Bulgaria. The branding strategies of yogurt show how companies transform foods into culturally meaningful products, thereby doing much more than making profitable commodities of them. In educating and offering consumers new lifestyles, they change established systems of consumption and influence people’s imaginations. Journal: Global Economic Review Pages: 47-62 Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1393724 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1393724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:47-62 Template-Type: ReDIF-Article 1.0 Author-Name: Tomoko Hamada Author-X-Name-First: Tomoko Author-X-Name-Last: Hamada Title: Japanese Company’s Cultural Shift for Gender Equality at Work Abstract: The article provides an overview of Japanese Prime Minister Abe’s womanomics policy for gender equality (GD), and poses a question as to why despite a large amount of GD initiatives, Japan’s GD progress has been painfully slow. It then introduces an ethnography of the GD implementation by a Japanese multinational firm (2013–2017). It analyzes the firm’s pedagogical effort to correct the unconscious cultural bias to retool the existing habitus of managers and employees. The firm’s cultural strategies parallel its human resources (HR) reforms in its attempt to change organizational norms regarding how corporate men and women should work. Deploying theoretical perspectives of cultural neuroscience, semiotics, learning theory and interpretive anthropology, the author then identifies seven strategic foci for this firm’s cultural transformation, and terms this habitus-shifting program as MRS-PARC: M = magical messages and messengers; R = rites of passage and rituals; S = signs and symbols; P = rewarding and punishing task performances; A = clarifying alternatives and affordance; R = dealing with unexpected results, resistance and rear guards; and C = communication, complexity and continuity. Once MRS-PARC starts, corporate social drama and critical incidents lead the observer to the nexus of symbolic resistance and representation that in turn helps clarify how to modify the existing accommodation-and-redress mechanism for reform. MRS-PARC offers an empirically derived, action-oriented, process-based, analysis for those interested in moderating the people’s referential frameworks and cognitive/emotional orientations for organizational transformation. Journal: Global Economic Review Pages: 63-87 Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1393725 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1393725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:63-87 Template-Type: ReDIF-Article 1.0 Author-Name: Suhong Chae Author-X-Name-First: Suhong Author-X-Name-Last: Chae Title: The Political Processes of the Distinctive Multinational Factory Regime and Recent Strikes in Vietnam Abstract: The period from the mid-2000s to the early 2010s is noteworthy in the history of industrial relations in Vietnam. On the one hand, the number of strikes increased, reaching its peak in 2011. On the other hand, there were much stronger signs that both the management and the workers were not satisfied with their “factory regime”, as a stable and predictable process to resolve labor disputes was yet to emerge. In addition to the previous economic and political explanations focused on macroeconomic conditions and political institutional arrangements at the national level, this article attempts to ethnographically explore and describe the political-economic conditions of both the workers and the managements on a micro level to answer the following questions: Why do some workers have to resort to uncomfortable and troublesome means such as wildcat strikes despite their better working conditions compared to those of workers in other factories? In contrast, what are the reasons that some factories do not offer their workers particularly favorable working conditions and wages and can still avoid strikes? While answering these questions, this article attempts to address the necessity of recognizing the distinctive political structure and processes in the multinational factory regime and to suggest ways of establishing more stable and productive industrial relations more suitable to the particularity of the factory regime. Journal: Global Economic Review Pages: 88-104 Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1393731 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1393731 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:88-104 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Corrigendum Journal: Global Economic Review Pages: x-x Issue: 1 Volume: 47 Year: 2018 Month: 1 X-DOI: 10.1080/1226508X.2017.1402155 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1402155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:1:p:x-x Template-Type: ReDIF-Article 1.0 Author-Name: Zan Zhang Author-X-Name-First: Zan Author-X-Name-Last: Zhang Author-Name: Su-Ling Tsai Author-X-Name-First: Su-Ling Author-X-Name-Last: Tsai Author-Name: Tsangyao Chang Author-X-Name-First: Tsangyao Author-X-Name-Last: Chang Title: New Evidence of Interest Rate Pass-through in Taiwan: A Nonlinear Autoregressive Distributed Lag Model Abstract: We adopt the newly developed nonlinear autoregressive distributed lag model, advanced by Shin, Yu and Greenwood-Nimmo [(2014) Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework, in: Festschrift in Honor of Peter Schmidt, pp. 281–314 (New York: Springer)], to investigate the interest rate(IR) pass-through (IRPT) mechanism in Taiwan from 1971 M07 to 2014 M11. We find that the incomplete IRPT mechanism of deposit markets shows an asymmetric adjustment in the short run and symmetric adjustments in the long run. The deposit rate is rigid downward, which supports the customer reaction hypothesis. Moreover, we find that both the short-run and the long-run IRPT channels from the policy rate to the lending rate are also incomplete in the short run but not in the long run. The purpose of this paper is to provide accurate assessment criteria for the central bank to understand the nonlinear dynamics among the policy IR and the retail IR, thus leading to more efficient policy-making and forecasting for the Taiwanese government. Journal: Global Economic Review Pages: 129-142 Issue: 2 Volume: 46 Year: 2017 Month: 4 X-DOI: 10.1080/1226508X.2017.1278710 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1278710 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:2:p:129-142 Template-Type: ReDIF-Article 1.0 Author-Name: Chak Hung Jack Cheng Author-X-Name-First: Chak Hung Jack Author-X-Name-Last: Cheng Title: Export Currency Pricing and Fiscal Multipliers Abstract: This paper develops a small open economy dynamic stochastic general equilibrium model to study the implications of the use of foreign currency in export pricing for fiscal policy in East Asian economies. The result shows that external currency pricing amplifies the effect of an exogenous government spending shock on output. The impact and cumulative multipliers are larger under external currency pricing. However, the result depends on the government policy regime. When the government allows for a systematic response of government spending to public debt, the multipliers in the medium-term are smaller under external currency pricing. Journal: Global Economic Review Pages: 81-100 Issue: 2 Volume: 46 Year: 2017 Month: 4 X-DOI: 10.1080/1226508X.2017.1278713 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1278713 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:2:p:81-100 Template-Type: ReDIF-Article 1.0 Author-Name: Young Moo Cho Author-X-Name-First: Young Moo Author-X-Name-Last: Cho Title: The Categorization of Small Open Economies and the Response to Foreign Interest Rate Shocks: Based on Financial Integration and Net External Credit Abstract: To analyze precisely effects of foreign interest rate hike shocks, this paper categorizes small open economies into four kinds of types based on the net external credit (or debt) level and the financial integration level. The empirical result shows that responses of macroeconomic variables tend to differ substantially depending on the type of a small open economy. These findings imply that we need to consider the net external credit (or debt) level and the financial integration level of a small open economy when we predict the effect of a foreign interest rate hike shock. Journal: Global Economic Review Pages: 101-128 Issue: 2 Volume: 46 Year: 2017 Month: 4 X-DOI: 10.1080/1226508X.2017.1282322 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1282322 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:2:p:101-128 Template-Type: ReDIF-Article 1.0 Author-Name: Mohsen Bahmani-Oskooee Author-X-Name-First: Mohsen Author-X-Name-Last: Bahmani-Oskooee Author-Name: Hanafiah Harvey Author-X-Name-First: Hanafiah Author-X-Name-Last: Harvey Title: Bilateral Trade Balances of Malaysia with Her 11 Largest Trading Partners: New Evidence from Asymmetry Cointegration Abstract: Research on the effects of exchange rate changes on the trade balance is now moving in a new direction, by investigating whether exchange rate changes have symmetric or asymmetric effects. The approach that relies upon separating depreciations from appreciations introduces nonlinearity into the adjustment process and relies upon the nonlinear ARDL approach of Shin et al. [2014. Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework, in: R. Sickels and W. Horrace (Eds), Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications, 281–314 (Springer)]. When we applied this new method to the bilateral trade balances of Malaysia with each of her 11 largest partners, we found adjustment asymmetry in all models, short-run impact asymmetry effects and long-run asymmetry effects in the trade balance models between Malaysia and Asian countries. Journal: Global Economic Review Pages: 143-161 Issue: 2 Volume: 46 Year: 2017 Month: 4 X-DOI: 10.1080/1226508X.2017.1285713 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1285713 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:2:p:143-161 Template-Type: ReDIF-Article 1.0 Author-Name: Sok-Gee Chan Author-X-Name-First: Sok-Gee Author-X-Name-Last: Chan Author-Name: Zulkufly Ramly Author-X-Name-First: Zulkufly Author-X-Name-Last: Ramly Author-Name: Mohd Zaini Abd Karim Author-X-Name-First: Mohd Zaini Abd Author-X-Name-Last: Karim Title: Government Spending Efficiency on Economic Growth: Roles of Value-added Tax Abstract: This study examines the impact of government spending efficiency on the economic growth of 115 countries with value-added tax (VAT) system. We seek to examine the moderating role of the VAT system on the relationship between public spending efficiency and the economic growth. Using Generalized Method of Moments estimation based on two-step estimate, we found (1) government spending efficiency promotes economic growth, (2) the VAT system is found to enhance the effect of an efficient government spending on the economic growth and (3) the moderating role of the VAT system is further enhanced by quality of democracy and legislative strength of the government. Journal: Global Economic Review Pages: 162-188 Issue: 2 Volume: 46 Year: 2017 Month: 4 X-DOI: 10.1080/1226508X.2017.1292857 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1292857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:2:p:162-188 Template-Type: ReDIF-Article 1.0 Author-Name: Koji Kubo Author-X-Name-First: Koji Author-X-Name-Last: Kubo Title: Impacts of Foreign Exchange Auctions on the Informal Market Rate in Myanmar Abstract: Since the abolition of the official peg and the introduction of a managed float in April 2012, the Central Bank of Myanmar has operated the daily auctions of foreign exchange aimed at smoothing exchange rate fluctuations. Despite the reforms, however, informal trading of foreign exchange remains pervasive. Using the daily informal exchange rate and Central Bank auction data, this study examines the impacts of auctions on the informal rate. Generalized autoregressive conditional heteroskedasticity models indicate that the auctions did not reduce the conditional variance of the informal rate returns. Overall, the auctions have only a quite modest impact on the informal exchange rate. Journal: Global Economic Review Pages: 189-202 Issue: 2 Volume: 46 Year: 2017 Month: 4 X-DOI: 10.1080/1226508X.2017.1292858 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1292858 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:2:p:189-202 Template-Type: ReDIF-Article 1.0 Author-Name: Jung Hur Author-X-Name-First: Jung Author-X-Name-Last: Hur Author-Name: Haeyeon Yoon Author-X-Name-First: Haeyeon Author-X-Name-Last: Yoon Author-Name: Taehyun Ahn Author-X-Name-First: Taehyun Author-X-Name-Last: Ahn Title: Occupational Composition Within Multinational Firms: Evidence From Korean Employer-Employee Matched Data Abstract: Using Korean employer-employee matched data, we investigate the difference in occupational structure between domestic and multinational firms in manufacturing sectors. The main result shows that the occupational composition of the multinational firms is more skewed toward high-skills and service occupations than domestic firms. Furthermore, we find the heterogeneous labour structure among multinational firms upon types and locations of foreign affiliates. The multinationals that are establishing production plants or locating their affiliates in emerging countries tend to be composed of relatively smaller share of high-skills and service occupations than those with foreign R&D centres or business branch or with affiliates located in advanced countries. Journal: Global Economic Review Pages: 144-160 Issue: 2 Volume: 48 Year: 2019 Month: 4 X-DOI: 10.1080/1226508X.2019.1581073 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1581073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:2:p:144-160 Template-Type: ReDIF-Article 1.0 Author-Name: Woong Lee Author-X-Name-First: Woong Author-X-Name-Last: Lee Author-Name: Yeo Joon Yoon Author-X-Name-First: Yeo Joon Author-X-Name-Last: Yoon Title: The Role of Trade Negotiating Objectives in TPA-2015 Voting Abstract: This paper analyzes 2015-TPA voting patterns of Congress in the context of the trade negotiating objectives. By setting them Congress lays out important trade agenda that the administration is expected to address when it is negotiating trade deals with foreign countries. Therefore it is an important part of the TPA. The probit model is used to evaluate the importance of each objective in Congress’s voting decision. The objective of promoting U.S. exports in agriculture, transportation equipment and metal affected the voting decision. Also the issues of labour rights and intellectual property rights mattered. Journal: Global Economic Review Pages: 161-179 Issue: 2 Volume: 48 Year: 2019 Month: 4 X-DOI: 10.1080/1226508X.2019.1583590 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1583590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:2:p:161-179 Template-Type: ReDIF-Article 1.0 Author-Name: Miao Wang Author-X-Name-First: Miao Author-X-Name-Last: Wang Author-Name: Hong Zhuang Author-X-Name-First: Hong Author-X-Name-Last: Zhuang Title: How Do Firms in the Private Sector Perceive Constraints to Doing Business in China? Abstract: This paper studies perceptions of business constraints in China using rich firm-level data from the 2005 and 2012 World Bank Enterprise Surveys conducted jointly by the China National Bureau of Statics and the World Bank. In addition, we focus on the variations of perceptions across foreign and indigenous Chinese firms. Our results show that there exist significant differences in perceptions between foreign and domestic firms in China in the 2005 survey, but such differences are no long present in the 2012 survey. Our analysis also identifies several elements perceived as more severe constraints by both domestic and foreign firms. Journal: Global Economic Review Pages: 113-143 Issue: 2 Volume: 48 Year: 2019 Month: 4 X-DOI: 10.1080/1226508X.2019.1584762 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1584762 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:2:p:113-143 Template-Type: ReDIF-Article 1.0 Author-Name: Inbin Hwang Author-X-Name-First: Inbin Author-X-Name-Last: Hwang Author-Name: Deokjong Jeong Author-X-Name-First: Deokjong Author-X-Name-Last: Jeong Author-Name: Sunyoung Park Author-X-Name-First: Sunyoung Author-X-Name-Last: Park Title: Crossing Borders: Foreign Investment and Sentiment in Korea Abstract: This study examines the effect of global investor sentiment on capital inflows in the Korean stock and bond markets using textual analysis. First, we conclude that global investor sentiment about Korea causes fluctuations in capital inflows to the Korean stock market. Second, global investor sentiment about Korea causes foreign investors to modify their investments but not by enough to cause drastic changes. Third, positive sentiment about Asia-Pacific countries results in more foreign investment in Korea. The results suggest that research on global investor sentiment provides insight into the determinants of capital flows and has implications for capital flow management policies. Journal: Global Economic Review Pages: 213-236 Issue: 2 Volume: 48 Year: 2019 Month: 4 X-DOI: 10.1080/1226508X.2019.1587310 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1587310 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:2:p:213-236 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Quang My Author-X-Name-First: Nguyen Quang Author-X-Name-Last: My Author-Name: Mustafa Sayim Author-X-Name-First: Mustafa Author-X-Name-Last: Sayim Author-Name: Hamid Rahman Author-X-Name-First: Hamid Author-X-Name-Last: Rahman Title: Debt Financing and the Failure of Innovation Companies: The Application of the CHS Model in U.S. Stock Markets Abstract: This study aims to determine whether increasing a firm’s leverage significantly changes its level of bankruptcy risk in the innovative industry by using the CHS model [Campbell, J. Y., J. Hilscher, and J. Szilagyi. 2008. “In Search of Distress Risk.” The Journal of Finance 63 (6): 2899–2939] to test 395 American innovation companies. These companies are categorised into four groups based on their debt ratios and their performance on the NYSE and NASDAQ stock exchanges is analysed in three separate periods. The findings reveal that innovation companies with a higher debt level are no riskier than those with a lower debt level. Journal: Global Economic Review Pages: 180-212 Issue: 2 Volume: 48 Year: 2019 Month: 4 X-DOI: 10.1080/1226508X.2019.1588767 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1588767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:48:y:2019:i:2:p:180-212 Template-Type: ReDIF-Article 1.0 Author-Name: Weng Chang Lee Author-X-Name-First: Weng Chang Author-X-Name-Last: Lee Author-Name: Siong Hook Law Author-X-Name-First: Siong Hook Author-X-Name-Last: Law Title: Roles of Formal Institutions and Social Capital in Innovation Activities: A Cross-Country Analysis Abstract: This paper investigates the roles of formal institutions and social capital in countries’ innovation activities. The sample consists of 62 developed and developing countries, using the ordinary least squares robust standard error estimations, instrumental variable (IV) estimators, and quantile regression. The empirical results indicate that formal institutions and social capital complement one another in influencing countries’ innovations level. In terms of the relative importance of both in promoting innovation activities, the social capital has greater role compared to formal institutions. Furthermore, the empirical result suggests that innovation level tends to be higher in countries with higher social capital. We also use the quantile regression to estimate whether the relationship among formal institutions, social capital, and innovation differs at different points in the conditional distribution of innovation. The results demonstrate that formal institutions yield a significant positive impact only after exceeding in 50th quantile, whereas social capital do so at lower 10th quantile. Therefore, in addition to a policy focus on improving the formal institutions, countries with a low level of innovation should enrich social capital in their promotion of innovation activity. Journal: Global Economic Review Pages: 203-231 Issue: 3 Volume: 46 Year: 2017 Month: 7 X-DOI: 10.1080/1226508X.2017.1292859 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1292859 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:203-231 Template-Type: ReDIF-Article 1.0 Author-Name: Kien Trung Nguyen Author-X-Name-First: Kien Trung Author-X-Name-Last: Nguyen Author-Name: Eric D. Ramstetter Author-X-Name-First: Eric D. Author-X-Name-Last: Ramstetter Title: Wage Differentials among Ownership Groups and Worker Quality in Vietnamese Manufacturing Abstract: Wholly foreign multinational enterprises (WFs), joint-venture multinationals (JVs), state-owned enterprises (SOEs) pay higher wages than domestic private firms in Vietnamese manufacturing. In large samples of medium–large (20+ employees) firms, conditional differentials accounting for worker education and occupation, as well as capital intensity, size, and shares of female workers, were substantially smaller, but positive and significant. Wage levels and differentials varied substantially among industries. Conditional differentials remained positive and significant for WFs and JVs in most of the 11 industries examined, but estimates of SOE-private differentials were insignificant in most industries. Robustness checks using 2007 data yielded similar results. Journal: Global Economic Review Pages: 232-250 Issue: 3 Volume: 46 Year: 2017 Month: 7 X-DOI: 10.1080/1226508X.2017.1298459 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1298459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:232-250 Template-Type: ReDIF-Article 1.0 Author-Name: Jin Hwa Jung Author-X-Name-First: Jin Hwa Author-X-Name-Last: Jung Author-Name: Kang-Shik Choi Author-X-Name-First: Kang-Shik Author-X-Name-Last: Choi Title: Gender Discrimination and Worker Selectivity: A Comparison of the Self-employed and Wage Earners Abstract: This study compares the size and nature of the gender earnings differentials for the self-employed and wage earners in Korea, taking into account the workers’ self-selection of each employment type. The two-stage estimates of the earnings equation, corrected for worker selectivity, are used to decompose the gender earnings differentials into productivity-related and discriminatory factors. Our results suggest that the size of the gender earnings gap is larger in the wage sector than in the self-employment sector, but not by large margin, and so is the discrimination effect when not controlled for worker selectivity. With worker selectivity controlled, the discrimination effect is greatly intensified in the wage sector, while it becomes not significant in the self-employment sector. These findings imply that the observed gender earnings gap in the wage sector is largely ascribed to discrimination against women, while the gender earnings gap in the self-employment sector is mostly due to productivity difference that, in part, is caused by worker selectivity. Journal: Global Economic Review Pages: 251-270 Issue: 3 Volume: 46 Year: 2017 Month: 7 X-DOI: 10.1080/1226508X.2017.1305284 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1305284 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:251-270 Template-Type: ReDIF-Article 1.0 Author-Name: Shu-Bing Liu Author-X-Name-First: Shu-Bing Author-X-Name-Last: Liu Author-Name: Shun-Jen Hsueh Author-X-Name-First: Shun-Jen Author-X-Name-Last: Hsueh Author-Name: Tsung-Pao Wu Author-X-Name-First: Tsung-Pao Author-X-Name-Last: Wu Title: Shareholdings of Board Members and Corporate Performance: A Panel Quantile Regression Analysis Abstract: This paper investigates the impact of board member shareholdings on corporate performance in China and Taiwan, and employs unbalanced panel data over the period 2005–2009. In view of the inconsistent empirical findings in the literature and the limitations of least squares regressions, this study adopts a quantile regression method including fixed effects (FE) models. An important finding is that a significant, positive relationship exists between the shareholdings of board members and accounting measures of performance, and this relationship only exists for the more profitable firms in China, while a uniformly significant and positive relationship exists across all quantiles between the shareholdings of board members and accounting measures of performance in Taiwan. These findings, which cannot be obtained using a FE model, suggest that board members can influence firm performance through holding shares in most Taiwan firms and profitable Chinese firms. Journal: Global Economic Review Pages: 271-298 Issue: 3 Volume: 46 Year: 2017 Month: 7 X-DOI: 10.1080/1226508X.2017.1312477 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1312477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:271-298 Template-Type: ReDIF-Article 1.0 Author-Name: Huong Thi Trinh Author-X-Name-First: Huong Thi Author-X-Name-Last: Trinh Author-Name: Makoto Kakinaka Author-X-Name-First: Makoto Author-X-Name-Last: Kakinaka Author-Name: Donghun Kim Author-X-Name-First: Donghun Author-X-Name-Last: Kim Author-Name: Tae Yong Jung Author-X-Name-First: Tae Yong Author-X-Name-Last: Jung Title: Capital Structure and Investment Financing of Small and Medium-Sized Enterprises in Vietnam Abstract: Insufficient sources of internal financing and inaccessibility of external financing are acknowledged as crucial constraints on new investment for small and medium-sized enterprises (SMEs). This study examines how capital structure is related to investment decision for SMEs in Vietnam. In particular, we investigate the effect of capital structure on the decision to seek new investment as well as the choice of its financing sources. The main results reveal that SMEs with high financial leverage tend to engage more in seeking new investment. Moreover, empirical results demonstrate that among SMEs seeking new investment, those with higher financial leverage are more likely to choose external financing rather than internal financing. These results confirm the dynamic feature of the pecking order theory in the context of SMEs’ capital structure in Vietnam. Journal: Global Economic Review Pages: 325-349 Issue: 3 Volume: 46 Year: 2017 Month: 7 X-DOI: 10.1080/1226508X.2017.1340184 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1340184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:325-349 Template-Type: ReDIF-Article 1.0 Author-Name: Ki Young Park Author-X-Name-First: Ki Young Author-X-Name-Last: Park Title: The Wealthy Hand-to-Mouth Households in South Korea Abstract: This study establishes the stylized facts on household balance sheets in South Korea and empirically investigates their macroeconomic implications based on the concept of ‘wealthy hand-to-mouth (HtM)’ households that hold little liquid wealth with owning large amount of illiquid assets. Using a household-level panel data for the period of 2000–2014, we find that (1) there are neither deleveraging of household debts nor a sharp decline in house price even during the financial crisis, (2) run-up in household debt in 2000s is led by high-income group, (3) regardless of net worth level, wealth is highly concentrated on illiquid assets such as housing and real estate, (4) the share of wealthy HtM households is very high compared to the cases of other advanced countries. We estimate the marginal propensity to consume out of a transitory shock and find that the consumption response of HtM households is larger compared to the non-credit-constrained group, posing a threat to macroeconomic stability. Using discrete choice models with fixed effects, we also find that a household that acquire more real estate assets is more likely to become wealthy HtM when its income is relatively lower or its indebtedness is relatively higher. We discuss the characteristics of HtM households and the role of macroprudential policy. Journal: Global Economic Review Pages: 299-324 Issue: 3 Volume: 46 Year: 2017 Month: 7 X-DOI: 10.1080/1226508X.2017.1340185 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1340185 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:3:p:299-324 Template-Type: ReDIF-Article 1.0 Author-Name: George Verikios Author-X-Name-First: George Author-X-Name-Last: Verikios Title: Capital Account Liberalisation by China and the Effects on Global FDI and Trade Abstract: We model the partial liberalisation of the capital account by China using a dynamic computable general equilibrium model of the world economy. Our results indicate that a reduced capital controls on foreign direct investment (FDI) would lead to a significant increase in FDI capital in China and a significant reduction in the cost of capital in China relative to the rest of the world. Furthermore, we observe an increase in capital stocks in most regions, which benefits most regions in terms of GDP and GNP. The Chinese economy grows by 3.3% driven by a significant fall in the rental price of capital that, in turn, lowers domestic costs, causes a real depreciation of the exchange rate and thus increased exports relative to other regions. We also observe an across-the-board increase in the saving rate driven by the rise in the price of consumption relative to investment (saving) in all regions. Journal: Global Economic Review Pages: 245-269 Issue: 3 Volume: 47 Year: 2018 Month: 7 X-DOI: 10.1080/1226508X.2018.1436459 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1436459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:3:p:245-269 Template-Type: ReDIF-Article 1.0 Author-Name: Ting Xu Author-X-Name-First: Ting Author-X-Name-Last: Xu Author-Name: Zhike Lv Author-X-Name-First: Zhike Author-X-Name-Last: Lv Author-Name: Luoqi Xie Author-X-Name-First: Luoqi Author-X-Name-Last: Xie Title: Does Country Risk Promote the Informal Economy? A Cross-National Panel Data Estimation Abstract: This article investigates whether country risk plays an important role in determining the size of the informal economy. Using annualized panel data for a sample of 131 countries and regions covering 1999–2007, and controlling for a set of control variables, we find that country risk is a robust and significant determinant of the informal economy: a 1% increase in the country risk rating (decrease in the country risk) causes a 0.1% fall in the informal economy, and political risk has the largest effect, followed by economic risk. Moreover, the estimation results provide little evidence in support of an inverted-U relationship between urbanization and the share of the informal sector, which shed new light on the urbanization-the informal economy nexus. Journal: Global Economic Review Pages: 289-310 Issue: 3 Volume: 47 Year: 2018 Month: 7 X-DOI: 10.1080/1226508X.2018.1450641 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1450641 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:3:p:289-310 Template-Type: ReDIF-Article 1.0 Author-Name: Minjung Kim Author-X-Name-First: Minjung Author-X-Name-Last: Kim Author-Name: Wook Sohn Author-X-Name-First: Wook Author-X-Name-Last: Sohn Author-Name: Byeong Mook Sung Author-X-Name-First: Byeong Mook Author-X-Name-Last: Sung Title: The Effects of Central Banks’ Rate Change Patterns on Financial Market Variables Abstract: This study examines whether different patterns of change to the benchmark interest rates of central banks are associated with their contributions to variances in the forecast errors of three financial market variables: the long-term interest rate, the foreign exchange rate, and the stock market index. On average, the central bank’s interest rate accounts for approximately 20% of the variance in each variable. We find that the total range of changes is more important than the frequency of changes. The panel regression shows that the range and frequency of policy rate changes is positively associated with the volatility of long-term interest rates but no association with the volatility of stock prices and exchange rates. These results suggest that small and frequent adjustments of policy rates are desirable for reducing the volatility of interest rates. The panel VAR represents interest rate channel is a more important than exchange rate and stock price channel. Journal: Global Economic Review Pages: 311-336 Issue: 3 Volume: 47 Year: 2018 Month: 7 X-DOI: 10.1080/1226508X.2018.1455525 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1455525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:3:p:311-336 Template-Type: ReDIF-Article 1.0 Author-Name: Donghun Kim Author-X-Name-First: Donghun Author-X-Name-Last: Kim Author-Name: Dongwon Lee Author-X-Name-First: Dongwon Author-X-Name-Last: Lee Author-Name: Kap-Young Jeong Author-X-Name-First: Kap-Young Author-X-Name-Last: Jeong Title: A New Approach to Measuring a Multidimensional Productivity Index: An Application for 60 Selected Countries Abstract: This study aims to develop a productivity index which takes into account the multidimensional characteristics of productivities. Our multidimensional productivity index (MPI) not only measures individual productivities of economic resources but also evaluate productivity enhancing general capacities of economy. Individual productivity indices such as labor productivity are limited because they do not consider the factors, such as the globalization of economies and the market and institutional variables, that could have profound impacts on productivity. The multidimensional Productivity Index (MPI) is measured for 60 countries including 23 OECD countries and 10 Asian countries. Our methodology employs the concept of technical efficiency that allows us to measure the extent to which institutional and market factors contribute to the economic performance. Our findings indicate that standard productivity measures such as labor productivity may overestimate the overall productivity differences across the economies. Journal: Global Economic Review Pages: 270-288 Issue: 3 Volume: 47 Year: 2018 Month: 7 X-DOI: 10.1080/1226508X.2018.1455526 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1455526 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:3:p:270-288 Template-Type: ReDIF-Article 1.0 Author-Name: Ki Young Park Author-X-Name-First: Ki Young Author-X-Name-Last: Park Author-Name: Soohyon Kim Author-X-Name-First: Soohyon Author-X-Name-Last: Kim Title: Allocation of Time and Household-level Consumption Equivalent Welfare: A Case of South Korea Abstract: Using “2014 Time Usage and Quality of Life” of 17th KLIPS (Korean Labour and Income Panel Study), the first and most detailed time use survey of its kind in South Korea, we first document the patterns of time use in market work, nonmarket work (household work), child care, and a variety of definitions in leisure. We find that, while men work longer hours, men’s additional market work is well compensated by more leisure and less hours in nonmarket work and child care. We also find within-household unequal distribution of time use in nonmarket work, child care, and leisure in favour of men. Consistent with the cases of the US and other advanced economies, high-income earners tend to enjoy less hours of leisure while they spend more money on leisure activities. Secondly, we calculate the household-level consumption equivalent measure that considers consumption, leisure, life expectancy, and uncertainty. We find that taking into account non-separable preference over leisure and consumption and the quality of leisure is important and household-level welfare measures based solely on income or consumption are both incomplete and misleading. Journal: Global Economic Review Pages: 337-365 Issue: 3 Volume: 47 Year: 2018 Month: 7 X-DOI: 10.1080/1226508X.2018.1493941 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1493941 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:3:p:337-365 Template-Type: ReDIF-Article 1.0 Author-Name: Jang Hoon Choi Author-X-Name-First: Jang Hoon Author-X-Name-Last: Choi Author-Name: Joseph H.T. Kim Author-X-Name-First: Joseph H.T. Author-X-Name-Last: Kim Title: Designing an Alternative Public Pension Scheme: A Korean Case Study Abstract: The trends of ageing population and slow economic growth have become a major concern for public pension schemes with the defined benefit (DB) type. To mitigate the impact of this trend and secure long-term financial sustainability, several countries have recently adopted notional defined contribution (NDC) schemes. In this paper, we show how to apply an NDC scheme to the public pension system of Korea, arguably the fastest ageing country. In particular, we create a new pension system by combining the current Korean pension scheme and an NDC. Through simulations it is shown that the proposed scheme can reduce the financial instability caused by the changes in demographic and economic factors, while retaining the income redistribution component. We further consider applying a German-type automatic balancing mechanism to the proposed scheme, by using the average income to determine the return rate of the fund, to make it sustainable in the long term. Journal: Global Economic Review Pages: 380-404 Issue: 4 Volume: 45 Year: 2016 Month: 10 X-DOI: 10.1080/1226508X.2016.1166346 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1166346 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:4:p:380-404 Template-Type: ReDIF-Article 1.0 Author-Name: Dong Jin Lee Author-X-Name-First: Dong Jin Author-X-Name-Last: Lee Author-Name: Jong Chil Son Author-X-Name-First: Jong Chil Author-X-Name-Last: Son Title: Economic Growth and Income Inequality: Evidence from Dynamic Panel Investigation Abstract: This paper empirically investigates the effect of income inequality on economic growth using extended panel data covering a broad range of developing and developed countries. We use system generalized method of moments (GMM) techniques in a dynamic panel analysis, which alleviates the possible positive bias in difference GMM due to the persistence of lagged dependent variables as instruments. We find strong evidence of a negative effect on growth from income inequality, which contradicts the findings of Forbes [2000, September. A reassessment of the relationship between inequality and growth, American Economic Review, 90(4), pp. 869–887] and Li and Zou [1998, October. Income inequality is not harmful for growth: Theory and evidence, Review of Development Economics, 2(3), pp. 318–34]. Further analyses using combined Gini coefficients show that the difference can be overall attributed to the problem of omitted control variables and the differences in how the variations in inequality across countries are reflected. We also find that the negative effects of inequality on economic growth can be of great significance when using a sample of less developed countries or more recent inequality data set. Journal: Global Economic Review Pages: 331-358 Issue: 4 Volume: 45 Year: 2016 Month: 10 X-DOI: 10.1080/1226508X.2016.1181980 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1181980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:4:p:331-358 Template-Type: ReDIF-Article 1.0 Author-Name: Navaz Naghavi Author-X-Name-First: Navaz Author-X-Name-Last: Naghavi Author-Name: Wee-Yeap Lau Author-X-Name-First: Wee-Yeap Author-X-Name-Last: Lau Title: Financial Liberalization and Stock Market Efficiency: Causality Analysis of Emerging Markets Abstract: This paper studies the long- and short-run relationship between financial liberalization and stock market efficiency. It expands the extant body of knowledge by investigating Granger causality relationship applying mean group, common correlated effect mean group and common correlated effect pooled estimator to balanced panel data for 27 emerging markets over the period 1996–2011. We find evidence of financial liberalization Granger causes stock market efficiency, which is consistent with liberalization leads to efficiency hypothesis. Subsequently, our work makes a fresh contribution to the literature by focusing on informational efficiency of stock markets rather than financial development. Furthermore, we find that a negative long-term relationship between financial liberalization and stock return autocorrelation coexists with a positive short-term relationship between the two. The findings that financial liberalization, which has a deteriorated effect on stock market efficiency in the short-run, but positive impact in the long-run, allow us to draw an analogy similar to the J-curve hypothesis. Journal: Global Economic Review Pages: 359-379 Issue: 4 Volume: 45 Year: 2016 Month: 10 X-DOI: 10.1080/1226508X.2016.1198921 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1198921 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:4:p:359-379 Template-Type: ReDIF-Article 1.0 Author-Name: Judy Hsu Author-X-Name-First: Judy Author-X-Name-Last: Hsu Title: Firm Productivity and Mode of Foreign Expansion: Evidence from Taiwanese Manufacturing Firms Abstract: This paper builds on the recent literature on firm heterogeneity in international trade and foreign direct investment (FDI), and aims to empirically examine how firm productivity affects a firm’s foreign market entry strategy beyond the simple binary choice between exporting and FDI. Utilizing the panel data of Taiwanese manufacturing firms during 2002–2012, we further classify FDI methods by whole ownership or a joint venture to investigate a firm’s foreign expansion decision. By performing Kolmogorov–Smirnov (KS) tests, we find that if a firm is more productive, it is more likely to choose FDI rather than exporting. However, productivity of firms choosing whole ownership is not so different from choosing a joint venture. Furthermore, a more productive firm is more likely to conduct both whole ownership of the foreign subsidiary and a joint venture formation in the case of FDI. Journal: Global Economic Review Pages: 405-415 Issue: 4 Volume: 45 Year: 2016 Month: 10 X-DOI: 10.1080/1226508X.2016.1218293 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1218293 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:4:p:405-415 Template-Type: ReDIF-Article 1.0 Author-Name: Qayoom Khachoo Author-X-Name-First: Qayoom Author-X-Name-Last: Khachoo Author-Name: Ruchi Sharma Author-X-Name-First: Ruchi Author-X-Name-Last: Sharma Title: FDI and Innovation: An Investigation into Intra- and Inter-industry Effects Abstract: It is often believed that transfer of technology and know-how resulting from foreign direct investment (FDI) goes beyond the actual projects undertaken by foreign investors and, spills over to domestic firms affecting their knowledge base and productivity. This paper is an endeavour to investigate the existence of spillovers and their impact on the innovative performance of domestic firms active in the manufacturing sector of India. By employing data on FDI by industry and merging it with information on time-variant buyer–supplier linkages obtained from a series of national input–outputs tables, the study develops intra-industry and inter-industry measures to capture the effects of FDI on innovation performance of the incumbent firms’ active in the same sector as the MNC and in upstream and downstream sectors. The econometric analysis after accounting for endogeneity issues reveals that FDI has a moderate impact on innovative performance of firms residing in identical industries. However, impact on the innovative performance of firms in supplying sectors appears to be statistically strong. Journal: Global Economic Review Pages: 311-330 Issue: 4 Volume: 45 Year: 2016 Month: 10 X-DOI: 10.1080/1226508X.2016.1218294 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1218294 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:4:p:311-330 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Global Economic Review Pages: ebi-ebi Issue: 4 Volume: 45 Year: 2016 Month: 10 X-DOI: 10.1080/1226508X.2016.1254937 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1254937 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:45:y:2016:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Po-Chin Wu Author-X-Name-First: Po-Chin Author-X-Name-Last: Wu Author-Name: Shiao-Yen Liu Author-X-Name-First: Shiao-Yen Author-X-Name-Last: Liu Author-Name: Ming-Fang Yang Author-X-Name-First: Ming-Fang Author-X-Name-Last: Yang Title: Nonlinear Exchange Rate Pass-Through: The Role of National Debt Abstract: This study uses the panel smooth transition regression model with a debt ratio as the transition variable to evaluate the level of exchange rate pass-through. This model can investigate the threshold effect of the debt ratio on the pass-through. To perform the empirical estimation, we choose the 22 Organization for Economic Co-operation and Development member countries during 1994–2013 as sample objects. The empirical results show that the exchange rate pass-through displays a nonlinear and smooth transition process, depending on each period of debt ratio of the export country in different regimes. That is, the pass-through is nonlinear and varies with time and across countries. The larger the debt ratio is, the lower the pass-through would be. The threshold for the pass-through to generate smooth regime switching is 36.62% of debt ratio. Journal: Global Economic Review Pages: 1-17 Issue: 1 Volume: 46 Year: 2017 Month: 1 X-DOI: 10.1080/1226508X.2016.1254057 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1254057 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 Author-Name: Masahiko Hattori Author-X-Name-First: Masahiko Author-X-Name-Last: Hattori Author-Name: Yasuhito Tanaka Author-X-Name-First: Yasuhito Author-X-Name-Last: Tanaka Title: Competitiveness and Subsidy or Tax Policy for New Technology Adoption in Duopoly Abstract: We consider a problem of subsidy or tax policy for new technology adoption by duopolistic firms. The technology is developed in and transferred by a foreign country to the domestic country. It is free but each firm must expend some fixed set-up cost for education of its staff to adopt and use it. Assuming that each firm maximizes the weighted average of absolute and relative profits, we examine the relationship between competitiveness and subsidy or tax policies for technology adoption, and show that when firm behavior is not competitive (the weight on the relative profit is small), the optimal policy of the government may be taxation; when firm behavior is competitive (the weight on the relative profit is large), the optimal policy is subsidization or inaction and not taxation. However, if firm behavior is extremely competitive (close to perfect competition), taxation case re-emerges. Journal: Global Economic Review Pages: 18-32 Issue: 1 Volume: 46 Year: 2017 Month: 1 X-DOI: 10.1080/1226508X.2016.1256787 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1256787 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:1:p:18-32 Template-Type: ReDIF-Article 1.0 Author-Name: Danbee Park Author-X-Name-First: Danbee Author-X-Name-Last: Park Title: Credit Rating and Monetary Policy Transmission to Equity Markets: Evidence from the Emerging Market Abstract: This study empirically estimates credit channel of the monetary policy and corporate stock return using daily stock return data including the sample with non-financial firms listed in Korea stock exchange (KOSPI). Empirical results support that changes in the basis rate turn out to increase equity returns in case of the firms with higher credit rating compared to the previous year. The estimation results confirm the conjecture that monetary policy has a significant impact on stock market through the channel of changes in credit rating. Journal: Global Economic Review Pages: 33-46 Issue: 1 Volume: 46 Year: 2017 Month: 1 X-DOI: 10.1080/1226508X.2016.1259008 File-URL: http://hdl.handle.net/10.1080/1226508X.2016.1259008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:1:p:33-46 Template-Type: ReDIF-Article 1.0 Author-Name: Chi-Wei Su Author-X-Name-First: Chi-Wei Author-X-Name-Last: Su Author-Name: Li Lu Author-X-Name-First: Li Author-X-Name-Last: Lu Author-Name: Hsu-Ling Chang Author-X-Name-First: Hsu-Ling Author-X-Name-Last: Chang Author-Name: Yanping Zhao Author-X-Name-First: Yanping Author-X-Name-Last: Zhao Title: Reserve Accumulation and Money Supply in China: A Time-Varying Analysis Abstract: This study investigates the causal relationship between reserve accumulation and money supply in China over the period of 1999 M1–2015 M6. First, we use a Granger causality test and find that there is a unidirectional relationship from money supply growth to reserve accumulation growth; however, taking structural changes into account, we assess stability of parameters of the estimated vector autoregressive models. We find both the short-run and long-run relationships between money supply growth and reserve accumulation growth estimated using full-sample data are unstable over the sample period. This suggests that full-sample causality tests cannot be relied upon. We turn to propose a time-varying (bootstrap) rolling-window approach to revisit the dynamic causal relationship between the two variables. We find that two variables have causal relationships in some sub-periods. We argue that reserve accumulation growth has put pressure on money supply growth. However, in general, sterilization is effective, but not in few months 2006–2007. And money supply has a positive reserve accumulation from the second half of 2001–2003 because RMB was undervalued under the fixed exchange rate regime. We argue that the improvements of monetary policy and the exchange rate regime are crucial to break the relationship between reserve accumulation growth and the money supply growth. Journal: Global Economic Review Pages: 47-64 Issue: 1 Volume: 46 Year: 2017 Month: 1 X-DOI: 10.1080/1226508X.2017.1278711 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1278711 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:1:p:47-64 Template-Type: ReDIF-Article 1.0 Author-Name: Seyyedsajjad Seyyedi Author-X-Name-First: Seyyedsajjad Author-X-Name-Last: Seyyedi Title: Analysis of the Interactive Linkages Between Gold Prices, Oil Prices, and Exchange Rate in India Abstract: This study investigates the co-movements and linkages among gold prices, oil prices, and Indian rupee–dollar exchange rates for the time span of 12 January 2004 to 30 April 2015 to investigate whether Indian economic policy-makers should detach financial policies from energy policies. Various econometrical methods such as Johansen’s cointegration test, vector autoregressive model, Granger causality test, and impulse response were used to explain the co-movements among the variables. We find that gold prices, oil prices, and rupee–dollar exchange rates stay substantially independent from each other, which denotes energy policies and financial policies must be detached. Journal: Global Economic Review Pages: 65-79 Issue: 1 Volume: 46 Year: 2017 Month: 1 X-DOI: 10.1080/1226508X.2017.1278712 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1278712 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:46:y:2017:i:1:p:65-79 Template-Type: ReDIF-Article 1.0 Author-Name: Hyun-Jung Nam Author-X-Name-First: Hyun-Jung Author-X-Name-Last: Nam Author-Name: Yohan An Author-X-Name-First: Yohan Author-X-Name-Last: An Title: The Effect of Interlocking Directors Network on Firm Value and Performance: Evidence from Korean-Listed Firms Abstract: This study examines the impact of network of interlocking directors’ network on firm value and performance using panel dataset drawn from 7307 firm-year observations during the period 2000–2014. We conduct social network analysis to analyze the interlocking directors’ network and focus on how interlocking directors’ network and existence of interlocking directors affect firm value and performance. We find that interlocking director network has significant and negative effects on firm values measured as Tobin’s Q and performance measured as return of assets and total factor productivity. This result suggests that the interlocking directors maintain and use vested right to pursue their own interests. It is seen that this can be a chance to impose a symbolic meaning for what kind of effect the interlocking directors make on performance in the Korean-listed firms. Journal: Global Economic Review Pages: 151-173 Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2017.1374197 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1374197 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:151-173 Template-Type: ReDIF-Article 1.0 Author-Name: Chor Foon Tang Author-X-Name-First: Chor Foon Author-X-Name-Last: Tang Author-Name: Eu Chye Tan Author-X-Name-First: Eu Chye Author-X-Name-Last: Tan Title: Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia? Abstract: Foreign direct investment (FDI) is often viewed as a potential contributor to a country’s economic growth and development. However, the extent of the contribution may depend upon the source of such investment inflows. This paper assesses the contribution of inward FDI to Malaysia’s economic growth using investment data disaggregated by source over the period, 2008:Q1–2016:Q3. Due to the mixed orders of integration of the series involved, the autoregressive distributed lag (ARDL) framework is employed to conduct the assessment. The econometric results indicate that the source of the FDI does matter greatly when considering the extent of its spin-off for the local economy. Specifically, FDI flows from North America and Southeast Asia contribute more significantly to Malaysia’s economic growth than FDI flows from Central and South America, Northeast Asia and Oceania. Journal: Global Economic Review Pages: 174-181 Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2017.1406815 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1406815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:174-181 Template-Type: ReDIF-Article 1.0 Author-Name: Helena Chuliá Author-X-Name-First: Helena Author-X-Name-Last: Chuliá Author-Name: Andrés D. Pinchao Author-X-Name-First: Andrés D. Author-X-Name-Last: Pinchao Author-Name: Jorge M. Uribe Author-X-Name-First: Jorge M. Author-X-Name-Last: Uribe Title: Risk Synchronization in International Stock Markets Abstract: We explore international risk synchronization in global stock markets over the last two decades. To this end, we construct global indices of risk synchronization based on individual estimations of market risk and their aggregation via spatial correlations. We then use these indices to analyze the effects of several financial crises on market risk synchronization. Our results reveal different risk-profile dynamics for mature and emerging markets. Contrary to general reports, we also find that not all financial crises induce a higher level of synchronization among markets, at least in relative terms. Indeed, some crises had the opposite effect, that is, a decoupling of market risk. Journal: Global Economic Review Pages: 135-150 Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2017.1407952 File-URL: http://hdl.handle.net/10.1080/1226508X.2017.1407952 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:135-150 Template-Type: ReDIF-Article 1.0 Author-Name: Hyeonmi Ahn Author-X-Name-First: Hyeonmi Author-X-Name-Last: Ahn Author-Name: Doyeon Kim Author-X-Name-First: Doyeon Author-X-Name-Last: Kim Title: Do Stock Price Reactions to Public Information Reflect its Long-run Effect on the Firms’ Fundamental Value? The Case of an Emerging Market Abstract: This paper examines the relationship between the cumulative abnormal returns (CARs) induced by various events and long-term operating performances in the post-event period. We gather six events from KRX Disclosure System over 2000–2011 and then ascertain the different CAR patterns. While most of other studies have focused on a single type of events, we deal with various types of events. Based on the general valuation model, stock return or price should reflect the firm’s fundamental value and we expect CARs to show a close relationship with the firm’s fundamental value over a long horizon. However, no distinct relationship between CARs and operating performances is found. The stock price reactions which are temporary and unrelated to the firm’s fundamental values may be explained by market inefficiency in Korea. Journal: Global Economic Review Pages: 182-223 Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2018.1424011 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1424011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:182-223 Template-Type: ReDIF-Article 1.0 Author-Name: Habib Hussain Khan Author-X-Name-First: Habib Hussain Author-X-Name-Last: Khan Author-Name: Abdul Ghafoor Author-X-Name-First: Abdul Author-X-Name-Last: Ghafoor Author-Name: Fiza Qureshi Author-X-Name-First: Fiza Author-X-Name-Last: Qureshi Author-Name: Ijaz Ur Rehman Author-X-Name-First: Ijaz Ur Author-X-Name-Last: Rehman Title: Bank Competition, Financial Development and Growth of Financially Dependent Industries: Fresh Evidence from China Abstract: We empirically examine the role of the banking market structure and financial development for the growth of manufacturing and the financially dependent industries in China over the period of 1999–2014. We use both structural and non-structural approaches to assess the banking market structure and relate them to the growth of the manufacturing industries. The results of the study indicate that bank competition inspires industrial growth, particularly the growth of the financially dependent industries. Our findings further suggest that bank concentration undermines the growth of manufacturing industries in general and growth of the financially dependent industries in particular. These results are consistent across a number of sensitivity checks covering alternative measures of financial dependence, institutional factors such as property rights, quality of accounting standards and bank ownership and endogeneity consideration. Journal: Global Economic Review Pages: 108-134 Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2018.1436458 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1436458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:108-134 Template-Type: ReDIF-Article 1.0 Author-Name: Woon Kan Yap Author-X-Name-First: Woon Kan Author-X-Name-Last: Yap Author-Name: Siong Hook Law Author-X-Name-First: Siong Hook Author-X-Name-Last: Law Author-Name: N.A.M. Naseem Author-X-Name-First: N.A.M. Author-X-Name-Last: Naseem Title: Effects of Credit Market Freedom on the Convergence of Chinese Banks’ Profits Abstract: Using an unbalanced panel of 96 banks that operate in the Chinese banking sector from 2007 to 2014, we first seek to uncover the relation between credit market freedom and bank profit. Thereafter, we further analyse the freedom effects on the convergence of bank profit so as to explain the prevailing persistent fall in the profit growth of Chinese banks. Two types of convergence are considered in this study: beta-convergence and sigma-convergence, which are estimated by using dynamic panel data estimator. Our results suggest that beta-convergence does not take place for all ownership structures until discrepancies on their traits and structural parameters are conditioned out, suggesting that it is the conditional beta-convergence rather than the absolute beta-convergence that transpires in China’s banking sector. While freedom is found to reduce profit growth significantly, its negative impact on the speed of beta-convergence is arguably negligible. This alludes that China has done reasonably well in balancing its liberalization initiatives with stabilization measures so that the fall in profits instigated by freedom does not significantly overshoot its long-run equilibrium path. Credit market freedom is also found to be a significant catalyst for sigma-convergence for all ownership structures but state-owned commercial banks and foreign banks. Journal: Global Economic Review Pages: 224-244 Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2018.1436460 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1436460 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:224-244 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Corrigendum Journal: Global Economic Review Pages: x-x Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2018.1440955 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1440955 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:x-x Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: In Memory of Professor Jean-Pierre Lehmann Journal: Global Economic Review Pages: 105-107 Issue: 2 Volume: 47 Year: 2018 Month: 4 X-DOI: 10.1080/1226508X.2018.1455360 File-URL: http://hdl.handle.net/10.1080/1226508X.2018.1455360 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:47:y:2018:i:2:p:105-107 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Min Kim Author-X-Name-First: Yong Min Author-X-Name-Last: Kim Author-Name: Ki Seong Park Author-X-Name-First: Ki Seong Author-X-Name-Last: Park Title: Labour Share and Economic Growth in OECD Countries Abstract: We propose a theoretical model that economic growth rate is a strictly concave function of labour share: Growth rate increases with labour share and decreases after reaching the peak. If wage rates are determined through bargaining between labour unions and employers instead of competition in markets, the labour share deviates from the competitive equilibrium level. When this occurs, the economic growth rate is lower than that in the competitive equilibrium, and the growth rate decreases with the increasing labour share. Our empirical analyses of the 23 OECD countries’ balanced panel between 1980 and 2008 confirm our theoretical model. Journal: Global Economic Review Pages: 1-22 Issue: 1 Volume: 49 Year: 2020 Month: 1 X-DOI: 10.1080/1226508X.2019.1699847 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1699847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Diem Thi Hong Vo Author-X-Name-First: Diem Thi Hong Author-X-Name-Last: Vo Author-Name: Sizhong Sun Author-X-Name-First: Sizhong Author-X-Name-Last: Sun Author-Name: Chung Thanh Phan Author-X-Name-First: Chung Thanh Author-X-Name-Last: Phan Title: Does Export Destination Affect Firm Productivity? Evidence From Small- and Medium-Sized Enterprises in the Vietnamese Manufacturing Sector Abstract: This study investigates the impact of export destinations on the productivity of small- and medium-sized enterprises (SMEs) in the Vietnamese manufacturing sector (2007–2013), using fixed effects and instrumental variables to control for possible endogeneity of export in our estimation. Empirical results indicate that export does not significantly improve the productivity of SMEs. In addition, we also consider whether export to developed (and developing) countries differently affects firm productivity in our exercise, and our results suggest no evidence of learning by exporting to developed (and developing) countries. For other factors, firm age and capital intensity are found to have negative impacts on firm productivity, while human capital-related factors, innovation activities, and government assistances show positive and significant productivity effects. Journal: Global Economic Review Pages: 23-42 Issue: 1 Volume: 49 Year: 2020 Month: 1 X-DOI: 10.1080/1226508X.2020.1726197 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1726197 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:1:p:23-42 Template-Type: ReDIF-Article 1.0 Author-Name: Jong-Hee Kim Author-X-Name-First: Jong-Hee Author-X-Name-Last: Kim Title: A Study on the Relationship between the Investment of Institutional Investors and Macroeconomic Prudence Abstract: This paper analyses the financial assets of institutional investors and pension funds to estimate how the change in portfolio affects returns and whether the realisation of returns can improve macroeconomic prudence. From the analysis, this paper offers several findings. First, the increase in the weighted return rates of institutional investors and pension funds lowers GDP volatility and improves macroeconomic prudence. Second, the portfolio composition effect of institutional investors and pension funds can also affect improving macroeconomic prudence. And the effect of composition effect in macroeconomic prudence improvement is greater in countries with high financial openness, for both institutional investors and pension funds. Journal: Global Economic Review Pages: 43-59 Issue: 1 Volume: 49 Year: 2020 Month: 1 X-DOI: 10.1080/1226508X.2020.1726789 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1726789 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:1:p:43-59 Template-Type: ReDIF-Article 1.0 Author-Name: Bongseok Choi Author-X-Name-First: Bongseok Author-X-Name-Last: Choi Author-Name: Seon Tae Kim Author-X-Name-First: Seon Tae Author-X-Name-Last: Kim Title: Financial Intermediation, Costly Information Production, and Small Industry Growth Abstract: This paper studies the mechanism of financial intermediaries' information production and its impact on industry-level growth, especially its difference between industries that differ in the technological composition of small firms. We build a growth model in which (i) both loan contracts and production of information on borrowing firms' productivities are endogenously determined, and (ii) the smaller firm's productivity is more costly to assess. Analytic results show that the smaller firm's innately greater degree of informational opaqueness hinders its growth, especially in the early stage of a country's financial development. We provide some evidence supporting the key mechanism. Journal: Global Economic Review Pages: 60-96 Issue: 1 Volume: 49 Year: 2020 Month: 1 X-DOI: 10.1080/1226508X.2019.1681287 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1681287 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:1:p:60-96 Template-Type: ReDIF-Article 1.0 Author-Name: Meeta Keswani Mehra Author-X-Name-First: Meeta Author-X-Name-Last: Keswani Mehra Author-Name: Swati Saini Author-X-Name-First: Swati Author-X-Name-Last: Saini Title: Implications of Quality of Schooling on Economic Growth and Convergence – A System Dynamics Perspective Abstract: This paper formulates a growth model to study the interlinkages among quality of schooling, human capital and technical progress of a stylised developing economy such as India. The simulation results reveal that under the technology regimes of innovation and imitation, the quality of schooling triggers a child quantity–quality trade-off wherein parents invest in educating their children and bear lesser number of children when schooling quality exceeds an endogenously determined threshold. Consequently, the stylised economy reaches a self-sustaining growth path under both the regimes by investing in human capital of the young generation in the long run. Journal: Global Economic Review Pages: 97-126 Issue: 1 Volume: 49 Year: 2020 Month: 1 X-DOI: 10.1080/1226508X.2019.1699845 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1699845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:1:p:97-126 Template-Type: ReDIF-Article 1.0 Author-Name: Lei Wang Author-X-Name-First: Lei Author-X-Name-Last: Wang Author-Name: Geoffrey J. D. Hewings Author-X-Name-First: Geoffrey J. D. Author-X-Name-Last: Hewings Title: Will Increasing Tariffs on China Really Bring the Manufacturing Plants Back to the U.S.? Abstract: This paper investigates whether the recent rise in tariffs on goods produced in China will lead processing trade manufacturing plants now located in China to delocate to the U.S. By using a hypothetical extraction method and examining the global value chains of income, we compare the factor payments in the Chinese and U.S. manufacturing sectors. Our estimates indicate that the average tariff rate necessary to move the processing trade firms is 48.15%, i.e. well above the current 25% rate. However, the average tariff rate needed for shifting China's processing plants to Mexico decease to 20.32%. Journal: Global Economic Review Pages: 127-149 Issue: 2 Volume: 49 Year: 2020 Month: 4 X-DOI: 10.1080/1226508X.2020.1744464 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1744464 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:2:p:127-149 Template-Type: ReDIF-Article 1.0 Author-Name: Kaun Y. Lee Author-X-Name-First: Kaun Y. Author-X-Name-Last: Lee Author-Name: Chune Young Chung Author-X-Name-First: Chune Young Author-X-Name-Last: Chung Author-Name: Justin Morscheck Author-X-Name-First: Justin Author-X-Name-Last: Morscheck Title: Does Geographic Proximity Matter in Active Monitoring? Evidence from Institutional Blockholder Monitoring of Corporate Governance in the Korean Market Abstract: We examine institutional blockholders’ active monitoring influence using a proprietary corporate governance score (CGS) provided by the Korea Corporate Governance Service (KCGS). We find that institutional blockholders effectively exert monitoring influence to improve CSG scores of investee firms. The evidence of effective monitoring is particularly evident for domestic institutional blockholders and is strongest in the shareholder rights category of the CSG score. Consistent with domestic blockholders having an informational advantage over their foreign counterparts, the evidence of active monitoring is stronger (weaker) in firms with lower (higher) earnings management (higher information quality) and for firms with lower (higher) stock liquidity. Our robust findings shed light on the specific monitoring role of institutional blockholders in emerging markets, where sound corporate governance is essential to firms’ long-term sustainability. Journal: Global Economic Review Pages: 150-170 Issue: 2 Volume: 49 Year: 2020 Month: 4 X-DOI: 10.1080/1226508X.2019.1699846 File-URL: http://hdl.handle.net/10.1080/1226508X.2019.1699846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:2:p:150-170 Template-Type: ReDIF-Article 1.0 Author-Name: Sangho Kim Author-X-Name-First: Sangho Author-X-Name-Last: Kim Title: Productivity Growth in Dynamic Factor Adjustment for the Japanese Manufacturing Industry Abstract: By utilising a dynamic adjustment-cost framework, this study analyses dynamic productivity growth in the Japanese manufacturing industry. Empirical results show that labour and capital are very slow in converging toward the long-run equilibrium, and that output supply and factor demand elasticities vary greatly, depending on the time horizon considered. The results also show that disequilibrium effects of quasi-fixed factors are positively biased toward productivity growth measured in a static equilibrium model. The bias results largely from negative adjustment costs related to the decreasing investment in the factors. There is an almost steady decrease in returns to scale, causing negative scale effects on productivity growth. Journal: Global Economic Review Pages: 171-185 Issue: 2 Volume: 49 Year: 2020 Month: 4 X-DOI: 10.1080/1226508X.2020.1744466 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1744466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:2:p:171-185 Template-Type: ReDIF-Article 1.0 Author-Name: Zhiwei Peng Author-X-Name-First: Zhiwei Author-X-Name-Last: Peng Author-Name: Ziliang Yu Author-X-Name-First: Ziliang Author-X-Name-Last: Yu Author-Name: Huifu Nong Author-X-Name-First: Huifu Author-X-Name-Last: Nong Title: Inter-Type Investment Connectedness: A New Perspective on China’s Booming Real Estate Market Abstract: This study explores the inter-type real estate investment connectedness in China. We document that: (1) connectedness is strong and time-varying; (2) the residential investment is instrumental in the inter-type investment connectedness network; (3) the total connectedness has dropped since 2008; and (4) the November 2008 Chinese stimulus package has significantly enhanced the influence of the residential and the industrial and other real estate investments. These results reflect both the economic development strategy of Chinese local governments and the importance of central government intervention, therefore providing a new perspective to understand China's booming real estate market during the past two decades. Journal: Global Economic Review Pages: 186-204 Issue: 2 Volume: 49 Year: 2020 Month: 4 X-DOI: 10.1080/1226508X.2020.1744465 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1744465 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:2:p:186-204 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Kim Author-X-Name-First: Yong Author-X-Name-Last: Kim Title: Asset Ownership, Investor Protection and Technology Adoption Abstract: In market economies, agents who provide labour are distinct from investors who own assets. This paper highlights how such an ‘investor ownership’ arrangement mitigates an external finance problem, especially when new ideas and technologies are adopted in production. When agents are credit constrained, assigning asset ownership to investors, and hold up can be seen as a commitment device that leads to better outcomes. The feature that assets can be used to hold up agents is a productive attribute which I model as an output of production: assets which have been used in past production embody this attribute, and assets which have not, do not. The analysis predicts (i) the share of project specific assets owned by investors increases over time, and (ii) project specific asset values increase then decrease over time, both resulting from a staged financing of new projects. The paper emphasises the importance of investor protection: bargaining power vis-à-vis the agents who produce. Lowering investor protection results in lower production scale and TFP, through partial and general equilibrium effects. Journal: Global Economic Review Pages: 205-222 Issue: 2 Volume: 49 Year: 2020 Month: 4 X-DOI: 10.1080/1226508X.2020.1759115 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1759115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:2:p:205-222 Template-Type: ReDIF-Article 1.0 Author-Name: Jinqing Zhang Author-X-Name-First: Jinqing Author-X-Name-Last: Zhang Author-Name: Hui Chen Author-X-Name-First: Hui Author-X-Name-Last: Chen Author-Name: Yunbi An Author-X-Name-First: Yunbi Author-X-Name-Last: An Title: Does Expropriation of Large Shareholders Change Corporate Investment Behaviors? Evidence from Chinese Listed Companies Abstract: This paper presents a three-period dynamic model establishing the expropriation-investment relation for firms with financing constraints. Focusing on Chinese listed companies, we find that firms with less tight financing constraints overinvest before expropriation if the intended expropriation level is below a threshold, and underinvest if otherwise, while expropriation in these firms does not impact inefficient investment during and after expropriation even after relevant sanctions are imposed. We also find that expropriation in firms with tight financing constraints has no significant impacts on inefficient investment before expropriation, but further tightens firms’ financing constraints during and after expropriation, leading to underinvestment. Journal: Global Economic Review Pages: 223-250 Issue: 3 Volume: 49 Year: 2020 Month: 7 X-DOI: 10.1080/1226508X.2020.1792330 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1792330 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:3:p:223-250 Template-Type: ReDIF-Article 1.0 Author-Name: Yangsoo Jin Author-X-Name-First: Yangsoo Author-X-Name-Last: Jin Title: Exclusionary Effects of Internal Transactions of Large Business Groups Abstract: Antitrust law in Korea regulates internal transactions by the owner and his family, or ‘Person with Special Interest (PSI)’ of a large business group. Its regulatory grounds, however, are not well-established. This paper analyses internal transactions from the perspective of competition policy, particularly, exclusionary effects. Internal transactions between the upstream- and downstream-affiliates of a business group shrink the size of the upstream market and hence squeeze the profitability of potential entrants. Thus, it may exclude the entrants which, absent the transactions, would enter the market and contribute to consumers. In addition, it may lead to a breach of the fiduciary duty of PSI. We provide some policy implications by analysing the optimal behaviour of PSI. Journal: Global Economic Review Pages: 251-272 Issue: 3 Volume: 49 Year: 2020 Month: 7 X-DOI: 10.1080/1226508X.2020.1745085 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1745085 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:3:p:251-272 Template-Type: ReDIF-Article 1.0 Author-Name: Zhihui Wen Author-X-Name-First: Zhihui Author-X-Name-Last: Wen Author-Name: Lijuan Zhuang Author-X-Name-First: Lijuan Author-X-Name-Last: Zhuang Author-Name: Rixin Zhang Author-X-Name-First: Rixin Author-X-Name-Last: Zhang Title: The Empirical Analysis on the Import and Export Technology Effect of Agricultural FDI in China Abstract: The paper analyzes the formative mechanism of the import and export technology effect, the trade contribution and squeezing effect on technology of agricultural FDI, and further regionally discusses this issue in China. The contribution of agricultural FDI to the import and export of agricultural products is remarkable. The agricultural FDI and growth rate of international trade had crowding out effects on domestic agricultural investment. There is a significant positive correlation in the study of regional technical spillover. Agricultural FDI investment enhances the ability of agricultural research and development, to produce technology spillover. Midwest regional technology spillover is not obvious. Journal: Global Economic Review Pages: 273-285 Issue: 3 Volume: 49 Year: 2020 Month: 7 X-DOI: 10.1080/1226508X.2020.1792327 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1792327 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:3:p:273-285 Template-Type: ReDIF-Article 1.0 Author-Name: Trinh Quang Long Author-X-Name-First: Trinh Quang Author-X-Name-Last: Long Title: Brexit and Asian Exports: A Value Chains Perspective Abstract: The UK departure from EU (Brexit) has profound economic implications for all countries engaged in the global value chains. Using a new decomposition approach, this study examines the position of Asian exports in the EU27-UK supply chains trade. We find that total Asian VA embedded in the EU27-UK supply chains trade increased during 2000–2014, mostly due to the emergence of China. Although Japan’s position in the EU27-UK supply chains trade declined, her positions in the supply chains trade between EU27 (the UK) and all EU27’s (the UK’s) trading partners have increased. Some Asian industries, including computer and electronic and electrical equipment or textile and garment apparel, may affect heavily due the EU27-UK trade disruptions. Journal: Global Economic Review Pages: 286-308 Issue: 3 Volume: 49 Year: 2020 Month: 7 X-DOI: 10.1080/1226508X.2020.1792328 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1792328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:3:p:286-308 Template-Type: ReDIF-Article 1.0 Author-Name: Eugene Beaulieu Author-X-Name-First: Eugene Author-X-Name-Last: Beaulieu Author-Name: Zeng Lian Author-X-Name-First: Zeng Author-X-Name-Last: Lian Author-Name: Shan Wan Author-X-Name-First: Shan Author-X-Name-Last: Wan Title: Presidential Marketing: Trade Promotion Effects of State Visits Abstract: This paper studies the trade promotion effects of state visits paid by Chinese political leaders by analyzing China’s trade flow with 184 countries between 1998 and 2014. International events are used to instrument state visits. The results find that trade promotion effects come two years after the visits. Moreover, the promotion effects are biased towards the industries and firms with connections to the government. Trade barriers offset the promotion effects of state visits. Journal: Global Economic Review Pages: 309-327 Issue: 3 Volume: 49 Year: 2020 Month: 7 X-DOI: 10.1080/1226508X.2020.1792329 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1792329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:3:p:309-327 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Call for Papers Journal: Global Economic Review Pages: 328-328 Issue: 3 Volume: 49 Year: 2020 Month: 7 X-DOI: 10.1080/1226508X.2020.1793517 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1793517 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:3:p:328-328 Template-Type: ReDIF-Article 1.0 Author-Name: Yuichiro Kamada Author-X-Name-First: Yuichiro Author-X-Name-Last: Kamada Author-Name: Michihiro Kandori Author-X-Name-First: Michihiro Author-X-Name-Last: Kandori Title: Cooperation in Revision Games and Some Applications Abstract: The present paper provides some examples that illustrate how cooperation is achieved among rational and selfish agents when (i) they prepare their actions in advance and (ii) they have some opportunities to revise their actions. Specifically, we use the framework of revision games introduced by Kamada and Kandori [(2020). “Revision Games.” Econometrica 88: 1599–1630]. To judge the sustainability of cooperation in the examples, we show and utilise a simple and useful lemma. Journal: Global Economic Review Pages: 329-348 Issue: 4 Volume: 49 Year: 2020 Month: 10 X-DOI: 10.1080/1226508X.2020.1836783 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1836783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:4:p:329-348 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Special Publication by the R. K. Cho Economics Prize Recipient Journal: Global Economic Review Pages: 349-349 Issue: 4 Volume: 49 Year: 2020 Month: 10 X-DOI: 10.1080/1226508X.2020.1838088 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1838088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:4:p:349-349 Template-Type: ReDIF-Article 1.0 Author-Name: Ly Dai Hung Author-X-Name-First: Ly Dai Author-X-Name-Last: Hung Title: Public Safe Assets Determination Abstract: On a sample of 150 economies, we characterise the safety of public debt by both ordinary least square and instrument variable regressions. For demand analysis, the public debt is safer for a larger financial market size, a higher financial development level, a lower inflation rate and greater political stability. For supply analysis, the safety of debt improves for a huger debt stock in economies with high income per capita but deteriorates in economies with low income per capita. Cases studies record that, compared with the prediction by economic fundamentals, the investors overestimate the debt safety of China but underestimate that of Greece and Japan. Journal: Global Economic Review Pages: 350-368 Issue: 4 Volume: 49 Year: 2020 Month: 10 X-DOI: 10.1080/1226508X.2020.1748083 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1748083 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:4:p:350-368 Template-Type: ReDIF-Article 1.0 Author-Name: R. Rijesh Author-X-Name-First: R. Author-X-Name-Last: Rijesh Title: Trade Liberalisation, Technology Import, and Indian Manufacturing Exports Abstract: The study examines the impact of embodied (capital goods) and disembodied (royalties, technical fees etc.) technology import on Indian manufacturing exports during 1995-2016. The panel econometric analysis based on OLS, RE, FGLS, and Tobit regression revealed a significant impact of both forms of technology purchase on overall manufacturing exports. The use-based classification of manufacturing revealed that the embodied technology facilitated the exports of intermediate and capital goods while the disembodied technology helped theexports of consumer goods and capital goods. In all cases, the impact of technology import on the exports of basic goods is negligible. We also find a statistically significant impact of R&D on Indian exports. Journal: Global Economic Review Pages: 369-395 Issue: 4 Volume: 49 Year: 2020 Month: 10 X-DOI: 10.1080/1226508X.2020.1798267 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1798267 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:4:p:369-395 Template-Type: ReDIF-Article 1.0 Author-Name: Goran M. Muhamad Author-X-Name-First: Goran M. Author-X-Name-Last: Muhamad Author-Name: Almas Heshmati Author-X-Name-First: Almas Author-X-Name-Last: Heshmati Author-Name: Nabaz T. Khayyat Author-X-Name-First: Nabaz T. Author-X-Name-Last: Khayyat Title: The Dynamics of Private Sector Development in Natural Resource Dependent Countries Abstract: This paper discusses the role of private sector development in overcoming the challenges of the resource curse. It identifies the developmental factors in the private sector in natural resource dependent countries by adapting a dynamic flexible adjustment model. Its empirical results are based on panel data from 110 natural resource producers in developed, developing, and emerging countries during the period 1990–2017. The findings show that natural resource rents can foster private sector development, and the speed of adjustment towards the target level of development is faster in oil and gas exporting countries. Journal: Global Economic Review Pages: 396-421 Issue: 4 Volume: 49 Year: 2020 Month: 10 X-DOI: 10.1080/1226508X.2020.1821745 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1821745 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:4:p:396-421 Template-Type: ReDIF-Article 1.0 Author-Name: Chune Young Chung Author-X-Name-First: Chune Young Author-X-Name-Last: Chung Author-Name: Dongnyoung Kim Author-X-Name-First: Dongnyoung Author-X-Name-Last: Kim Author-Name: Junyoup Lee Author-X-Name-First: Junyoup Author-X-Name-Last: Lee Title: Do Institutional Investors Improve Corporate Governance Quality? Evidence From the Blockholdings of the Korean National Pension Service Abstract: Institutional investors dissatisfied with weak firm governance can directly or indirectly intervene in management to maximise profits. However, no study has investigated the effects of such interventions on corporate governance. This study therefore examines the effect of Korean National Pension Service blockholdings on firms’ corporate governance quality in the Korean market. This setting is interesting because the market is dominated by chaebols, which have ineffective internal governance mechanisms. We find that blockholdings reduce corporate governance quality under various endogeneity checks and empirical models; this finding in an emerging market implies that regulatory authorities should support institutional blockholders’ active market participation. Journal: Global Economic Review Pages: 422-437 Issue: 4 Volume: 49 Year: 2020 Month: 10 X-DOI: 10.1080/1226508X.2020.1798268 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1798268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:49:y:2020:i:4:p:422-437 Template-Type: ReDIF-Article 1.0 Author-Name: Jinho Kim Author-X-Name-First: Jinho Author-X-Name-Last: Kim Author-Name: Taehoon Kim Author-X-Name-First: Taehoon Author-X-Name-Last: Kim Title: Family Formation and Dissolution During the COVID-19 Pandemic: Evidence From South Korea Abstract: This study explores the short-term effects of COVID-19 on marriage and divorce rates in Korea. We document a 9.6–13.9% reduction in the provincial crude marriage rate in March-June 2020 after the surge in COVID-19 cases. On top of this overall decline, a one-unit increase in the number of confirmed cases per 1,000 people in a given province decreased the marriage rate by 3.8–6.2%. The crude divorce rate decreases by 3.2–7.1% after the surge of COVID-19. Our results imply that the decline in marriage rates due to COVID-19 can lead to a significant decrease in fertility rates in the near future. Journal: Global Economic Review Pages: 1-19 Issue: 1 Volume: 50 Year: 2021 Month: 01 X-DOI: 10.1080/1226508X.2021.1874466 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1874466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Dawis Kim Author-X-Name-First: Dawis Author-X-Name-Last: Kim Author-Name: Minseung Kim Author-X-Name-First: Minseung Author-X-Name-Last: Kim Author-Name: Myungkyu Shim Author-X-Name-First: Myungkyu Author-X-Name-Last: Shim Title: The Macroeconomic Consequences of Stimulating Offline Consumption during COVID-19 Abstract: This paper analyses the macroeconomic consequences of a fiscal policy implemented in South Korea during COVID-19, ‘Korean Economic Impact Payment (KEIP)’ program, that aims to stimulate offline consumption. In doing so, we modify a SIR-macro model by explicitly distinguishing online- and offline consumption goods. Benchmark analysis predicts that (1) there are positive effects on key macro variables at the impact while progress of the epidemic hardly changes and (2) the transfer multiplier from the KEIP is estimated to be about 0.5 at the impact, a value with what we expect from the usual neo-classical business cycle model. Journal: Global Economic Review Pages: 20-42 Issue: 1 Volume: 50 Year: 2021 Month: 01 X-DOI: 10.1080/1226508X.2021.1875868 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1875868 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:1:p:20-42 Template-Type: ReDIF-Article 1.0 Author-Name: Syed Hasanat Shah Author-X-Name-First: Syed Author-X-Name-Last: Hasanat Shah Author-Name: Waqar Ameer Author-X-Name-First: Waqar Author-X-Name-Last: Ameer Author-Name: Guo Wei Jiao Author-X-Name-First: Guo Wei Author-X-Name-Last: Jiao Author-Name: Azka Amin Author-X-Name-First: Azka Author-X-Name-Last: Amin Title: The Impact of Covid-19 Induced Decline in Consumer Durables and Mobility on NO2 Emission in Europe Abstract: This study explores links between NO2 emission and Covid-19 induced decline in consumption and mobility in Europe by using satellite images and various indices. This study discovered that strict lockdown in the wake of Covid-19 reduced consumption and mobility and thus, paved way for decline in NO2 emission in Europe. Satellite images show that NO2 emission is low in countries with strict bans on mobility. Similarly, decline in consumption is correlated in NO2 emission. This shows that despite its adverse socio-economic impact, Covid-19 is a blessing in disguise for environment, at least in short-run. Journal: Global Economic Review Pages: 43-53 Issue: 1 Volume: 50 Year: 2021 Month: 01 X-DOI: 10.1080/1226508X.2021.1877562 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1877562 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:1:p:43-53 Template-Type: ReDIF-Article 1.0 Author-Name: Mustafa Tevfik Kartal Author-X-Name-First: Mustafa Tevfik Author-X-Name-Last: Kartal Author-Name: Serpil Kiliç Depren Author-X-Name-First: Serpil Author-X-Name-Last: Kiliç Depren Author-Name: Özer Depren Author-X-Name-First: Özer Author-X-Name-Last: Depren Title: How Main Stock Exchange Indices React to Covid-19 Pandemic: Daily Evidence from East Asian Countries Abstract: This study investigates whether the Covid-19 and the financial indicators affect the main stock exchange indices of East Asian countries. Number of cases and deaths caused by Covid-19, uncertainty, volatility, foreign exchanges, and mobility are examined by using Quantile Regression and comparing the pre-pandemic and the pandemic periods. The results shows that (i) the indicators have a significant negative impact as expected; (ii) the impact of mobility and pandemic indicators has significance in the trend of the indices whereas they differentiate among countries; (iii) the impact of the variables is significantly differentiated from the low level to the high level. Journal: Global Economic Review Pages: 54-71 Issue: 1 Volume: 50 Year: 2021 Month: 01 X-DOI: 10.1080/1226508X.2020.1869055 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1869055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:1:p:54-71 Template-Type: ReDIF-Article 1.0 Author-Name: Jiseob Kim Author-X-Name-First: Jiseob Author-X-Name-Last: Kim Author-Name: Minji Kwak Author-X-Name-First: Minji Author-X-Name-Last: Kwak Title: Changes in Demographic, Social, and Economic Structure in North Korea and Policy Direction for Improving Residential Environment Abstract: This paper analyses structural changes in demographic, social, and economic conditions in North Korea and draws policy implications on housing supply and residential environment. Demographic and social structures in North Korea, such as population aging, low fertility rate, and increases in nuclear families, are changing, just as many developed countries have experienced. At the same time, there is a high demand for house and infrastructure redevelopment. Meanwhile, there are significant differences in household wealth, living infrastructure, and family compositions across North Korean provinces. Hence, policymakers in North Korea must take into account such regional heterogeneities when they consider the house supply and residential improvement policies. Journal: Global Economic Review Pages: 93-125 Issue: 2 Volume: 50 Year: 2021 Month: 04 X-DOI: 10.1080/1226508X.2020.1862691 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1862691 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:2:p:93-125 Template-Type: ReDIF-Article 1.0 Author-Name: Youjin Hahn Author-X-Name-First: Youjin Author-X-Name-Last: Hahn Author-Name: Stephen Matteo Miller Author-X-Name-First: Stephen Author-X-Name-Last: Matteo Miller Author-Name: Hee-Seung Yang Author-X-Name-First: Hee-Seung Author-X-Name-Last: Yang Title: Household Inequality and Risk Sharing in Australia Abstract: This study presents estimates of multidimensional household inequality in Australia from 2001 to 2017. Earnings inequality declines through the sample, while disposable income, non-durable consumption expenditures, food expenditures and net worth inequality exhibit relatively flat trends. The relatively flat trend for non-durable expenditures inequality, even over the life cycle, suggests households insure consumption against idiosyncratic shocks. Standard regression estimates of consumption growth against income shocks confirm this finding. Quantile regression estimates indicate households experiencing negative (positive) consumption growth have more sensitivity to negative (positive) income shocks than households with positive (negative) consumption growth, but coefficient estimates have small magnitudes, confirming standard tests. Journal: Global Economic Review Pages: 169-191 Issue: 2 Volume: 50 Year: 2021 Month: 04 X-DOI: 10.1080/1226508X.2020.1862692 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1862692 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:2:p:169-191 Template-Type: ReDIF-Article 1.0 Author-Name: Heeho Kim Author-X-Name-First: Heeho Author-X-Name-Last: Kim Author-Name: Hongxia Zhang Author-X-Name-First: Hongxia Author-X-Name-Last: Zhang Title: Determination of Strategic Spreads in East Asia Abstract: This study develops a simple spread model to explain whether market dealers behave strategically when using electronic broking services. Our spread model stresses the role of an unexpected liquidity imbalance and its volatility for inventory risk, which contrasts sharply with previous studies that emphasised price volatility as the inventory risk. To capture a dealer’s strategic behaviour, we introduce a new concept of a strategic weighted spread and test this new spread using the full information maximum likelihood method with the GARCH (1,1) process. Daily spread data from 1 January 2006 to 20 December 2016 is used to explore strategic spreading at the end of a trading day in East Asia. Different effects on strategic spreads of liquidity depth in Asian financial markets are also investigated by comparing strategic spreads between the thin and deep markets. The evidence provides support for our hypothesis that a dealer behaves strategically to avoid the unexpected inventory risk, and that the magnitude of this influence depends on the depth of the financial market. Journal: Global Economic Review Pages: 73-92 Issue: 2 Volume: 50 Year: 2021 Month: 04 X-DOI: 10.1080/1226508X.2020.1862693 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1862693 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:2:p:73-92 Template-Type: ReDIF-Article 1.0 Author-Name: Benjamas Jirasakuldech Author-X-Name-First: Benjamas Author-X-Name-Last: Jirasakuldech Author-Name: Riza Emekter Author-X-Name-First: Riza Author-X-Name-Last: Emekter Title: Empirical Analysis of Investors’ Herding Behaviours during the Market Structural Changes and Crisis Events: Evidence from Thailand Abstract: This study investigates herding behaviour of investors in Thailand under different market conditions, crisis periods, and major market structural changes. The results show that herding behaviour occurs during an extreme market movement of negative or positive returns, in the declining market environment, on days with high trading volume, and during economic downturn as measured by negative GDP output gap. The structural break point analysis and rolling regression technique further shows that herding behaviour gathered heavily around 1997 Asian crisis. The establishments of internet trading platform, bond electronic trading exchange, and future electronic exchanges in Thailand do not make investors herd. Journal: Global Economic Review Pages: 139-168 Issue: 2 Volume: 50 Year: 2021 Month: 4 X-DOI: 10.1080/1226508X.2020.1821746 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1821746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:2:p:139-168 Template-Type: ReDIF-Article 1.0 Author-Name: Hye Rim Yi Author-X-Name-First: Hye Rim Author-X-Name-Last: Yi Author-Name: Myungkyu Shim Author-X-Name-First: Myungkyu Author-X-Name-Last: Shim Author-Name: Hee-Seung Yang Author-X-Name-First: Hee-Seung Author-X-Name-Last: Yang Title: Is Job Polarisation ICT-Driven? Evidence from the US Abstract: This paper investigates the effects of automation on job polarisation. Automation has been claimed to be one of the main causes for the job polarisation observed in many countries such as the US since the mid-1980s. Using the US Census data, we show that between 1980 and 2007 the increase in the usage of ICT capital is not statistically associated with changes in the employment and wage bill share of routine workers, although there is heterogeneity across industries. The main findings imply that ICT capital per se might not be the main factor driving job polarisation in the US. Journal: Global Economic Review Pages: 126-138 Issue: 2 Volume: 50 Year: 2021 Month: 04 X-DOI: 10.1080/1226508X.2020.1867610 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1867610 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:2:p:126-138 Template-Type: ReDIF-Article 1.0 Author-Name: Won-Sik Hwang Author-X-Name-First: Won-Sik Author-X-Name-Last: Hwang Author-Name: Dongnyok Shim Author-X-Name-First: Dongnyok Author-X-Name-Last: Shim Title: Measuring the Impact of ICT-driven Product and Process Innovation on the Korean Economy Abstract: This study analyses the impact of information and communication technology (ICT)-driven product and process innovation on productivity and economic output growth at the sectoral level in Korea. A traditional growth accounting framework is applied with a quality-adjusted price index on ICT capital and ICT intermediate goods. In the productivity analysis, the impact of ICT-driven process innovation weakens over time in both the manufacturing and service sectors. In the economic output growth analysis, ICT-driven product innovation largely influences the ICT producing manufacturing sector, and national economic growth has benefited from ICT-driven product innovation almost four times as much as from ICT-driven process innovation during 2000–2012. Journal: Global Economic Review Pages: 235-253 Issue: 3 Volume: 50 Year: 2021 Month: 07 X-DOI: 10.1080/1226508X.2021.1884114 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1884114 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:3:p:235-253 Template-Type: ReDIF-Article 1.0 Author-Name: Jungho Kim Author-X-Name-First: Jungho Author-X-Name-Last: Kim Title: Local Multipliers in New Firm Creation: Inter-Sectoral Spillovers of Entrepreneurship and Startup Agglomeration Abstract: This paper investigates the local multiplier effects in new firm creation by analysing a unique panel dataset of new firms and patents at the regional level in Australia. It finds that new firms in the tradable sector such as low-technology manufacturing and knowledge-intensive services industries have local multiplier effects on new firm creation in the non-tradable sector such as other services industries. It also shows that the local multiplier effect in new firm creation exists between manufacturing and knowledge-intensive services industries in the tradable sector. The local multipliers are greater in regions with more patents than in other regions. Journal: Global Economic Review Pages: 213-234 Issue: 3 Volume: 50 Year: 2021 Month: 07 X-DOI: 10.1080/1226508X.2021.1874465 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1874465 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:3:p:213-234 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Ma Author-X-Name-First: Yong Author-X-Name-Last: Ma Author-Name: Hang Zhang Author-X-Name-First: Hang Author-X-Name-Last: Zhang Title: Finance and Productivity Growth: Evidence from China Abstract: This paper examines the effects of finance on total factor productivity (TFP) growth based on panel data of 30 Chinese provinces from 2000 to 2016. We find that financial volatility has a significantly negative effect on TFP growth while the effect of financial development on TFP growth is nonlinear and inverted U-shaped. Further analysis shows that the effect of financial volatility on TFP growth is strengthened during boom periods of financial and business cycle but weakened during the bust periods. We also find that better developed financial systems are more capable of absorbing financial and business cycle shocks. Journal: Global Economic Review Pages: 273-292 Issue: 3 Volume: 50 Year: 2021 Month: 07 X-DOI: 10.1080/1226508X.2020.1863833 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1863833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:3:p:273-292 Template-Type: ReDIF-Article 1.0 Author-Name: Upalat Korwatanasakul Author-X-Name-First: Upalat Author-X-Name-Last: Korwatanasakul Author-Name: Youngmin Baek Author-X-Name-First: Youngmin Author-X-Name-Last: Baek Title: The Effect of Non-Tariff Measures on Global Value Chain Participation Abstract: This study takes a novel approach by using an additional compliance requirement indicator as a relative proxy for non-tariff measures (NTMs) to measure the impact of NTMs on global value chain (GVC) participation. We conduct a cross-sectional analysis at the industry level, spanning 30 countries with 19 industrial sectors in the year 2015. Our analysis finds that both NTMs and tariffs have negative impacts on backward GVC participation, and the impact of NTMs is greater than that of tariff measures. Therefore, policies that reduce trade costs from policy barriers, especially NTMs, can help promote participation in GVCs. Journal: Global Economic Review Pages: 193-212 Issue: 3 Volume: 50 Year: 2021 Month: 07 X-DOI: 10.1080/1226508X.2020.1862694 File-URL: http://hdl.handle.net/10.1080/1226508X.2020.1862694 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:3:p:193-212 Template-Type: ReDIF-Article 1.0 Author-Name: Jooyoung Kwak Author-X-Name-First: Jooyoung Author-X-Name-Last: Kwak Author-Name: Heejin Lee Author-X-Name-First: Heejin Author-X-Name-Last: Lee Author-Name: Sukhee Han Author-X-Name-First: Sukhee Author-X-Name-Last: Han Title: The Role of Standardisation Initiatives in Local Industrial Development: The Chinese Ginseng Experience Abstract: China's emergence in international standardisation has led scholars to debates over its intensifying techno-nationalism. This paper examines ginseng standardization using interviews and archives. Standardisation on the ginseng production started in low-income regions, which later changed into the techno-nationalism agenda over the product origin. Upon international standardisation, the sales volume and unit price in ginseng production increased. Yet the effects occurred in the domestic market and the market leader countries moved to the premium segment by product differentiation. The ginseng standard initiative did not achieve the commercial dominance in the global market but was a local development policy tool. Journal: Global Economic Review Pages: 254-272 Issue: 3 Volume: 50 Year: 2021 Month: 07 X-DOI: 10.1080/1226508X.2021.1884115 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1884115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:3:p:254-272 Template-Type: ReDIF-Article 1.0 Author-Name: Myung Hyun Park Author-X-Name-First: Myung Hyun Author-X-Name-Last: Park Author-Name: Joseph H. T. Kim Author-X-Name-First: Joseph H. T. Author-X-Name-Last: Kim Title: Modelling Healthcare Demand Count Data with Excessive Zeros and Overdispersion Abstract: In healthcare economics count datasets often exhibit excessive zeros or right-skewed tails. When covariates are available, such datasets are typically modelled using the zero-inflated (ZI) or finite mixture (FM) regression models. However, neither model performs adequately when the dataset has both excessive zeros and a long tail, which is often the case in practice. In this paper we combine these two models to create a more flexible, versatile class of ZIFM models. With this model we perform a comprehensive analysis on the number of visits to a physician’s office using the US healthcare demand dataset that has been used in numerous healthcare studies in the literature. After comparing to other existing models which have been reported to perform well on this dataset, we find that the ZIFM model substantially outperforms alternative models. In addition, the model offers a new interpretation that is in contrast to previous empirical findings regarding the factors associated with the demand for the physicians, which can shed a fresh light on the healthcare utilisation policies. Journal: Global Economic Review Pages: 358-381 Issue: 4 Volume: 50 Year: 2021 Month: 10 X-DOI: 10.1080/1226508X.2021.2004907 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.2004907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:4:p:358-381 Template-Type: ReDIF-Article 1.0 Author-Name: Fan Shi Author-X-Name-First: Fan Author-X-Name-Last: Shi Author-Name: Leyi Chen Author-X-Name-First: Leyi Author-X-Name-Last: Chen Title: Global Financial Risk Thresholds and Business Cycle Fluctuations: A Dynamic Heterogeneity Model Approach Abstract: This study constructs a dynamic heterogeneity threshold model using unbalanced panel data from 146 countries/regions (1984–2017). The findings show that (1) financial risk has a non-linear effect on business cycle fluctuations and a significant global financial risk threshold effect; (2) the threshold of financial risk is significantly lower in emerging market economies than in developed and latecomer market economies; (3) in the long-run, regardless of the threshold effect, once financial risk expands, it will exacerbate business cycle fluctuations; and (4) the threshold effect of different potential financial risks on business cycle fluctuations is heterogeneous. Journal: Global Economic Review Pages: 382-407 Issue: 4 Volume: 50 Year: 2021 Month: 10 X-DOI: 10.1080/1226508X.2021.2004906 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.2004906 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:4:p:382-407 Template-Type: ReDIF-Article 1.0 Author-Name: Hyelin Choi Author-X-Name-First: Hyelin Author-X-Name-Last: Choi Author-Name: Danbee Park Author-X-Name-First: Danbee Author-X-Name-Last: Park Title: The Effect of Multinationals’ Downsizing on the Domestic Labour Market Abstract: This study examines the effect of foreign-owned firms’ downsizing on the domestic labour market using Korean firm-level data during 2006–2017. We identify horizontal and vertical effects of foreign firms on the domestic employment within the region and across regions. Empirical results support that foreign firms’ downsizing leads to a decrease in domestic firms’ employment in the same industry. Domestic firms in the upstream industries reduce employment in response to foreign firms’ downsizing. Displaced workers from foreign firms may be transferred to domestic firms in the downstream industries. These results are more pronounced within the region. Journal: Global Economic Review Pages: 340-357 Issue: 4 Volume: 50 Year: 2021 Month: 10 X-DOI: 10.1080/1226508X.2021.1947341 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1947341 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:4:p:340-357 Template-Type: ReDIF-Article 1.0 Author-Name: Illoong Kwon Author-X-Name-First: Illoong Author-X-Name-Last: Kwon Author-Name: Chan-Young Park Author-X-Name-First: Chan-Young Author-X-Name-Last: Park Title: Corporate Governance and the Efficiency of Government R&D Grants Abstract: Using the unique grant level data, this paper shows that government R&D grants to private firms lead to more innovation when independent monitoring (e.g. outside directors) in the grant receiving firms is stronger, but to less innovation when chaebol influence (e.g. affiliated ownership) is stronger. However, the direct effect of independent monitoring on reported innovation is negative, while that of chaebol influence is positive. These results are consistent with the hypotheses that independent monitoring reduces the misuse of grant money; increases the efficiency of managing R&D grants; and reduces the overstatement of grant outcomes, while chaebol influence does the opposite. Journal: Global Economic Review Pages: 293-309 Issue: 4 Volume: 50 Year: 2021 Month: 10 X-DOI: 10.1080/1226508X.2021.1908156 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1908156 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:4:p:293-309 Template-Type: ReDIF-Article 1.0 Author-Name: Yunqi Fan Author-X-Name-First: Yunqi Author-X-Name-Last: Fan Author-Name: Fangzhao Zhou Author-X-Name-First: Fangzhao Author-X-Name-Last: Zhou Author-Name: Yunbi An Author-X-Name-First: Yunbi Author-X-Name-Last: An Author-Name: Jun Yang Author-X-Name-First: Jun Author-X-Name-Last: Yang Title: Investor Sentiment and Stock Price Crash Risk: Evidence from China Abstract: We study the cross-sectional effects of investor sentiment on stock price crash risk from the perspective of investor behavioural biases. We develop a firm-specific investor sentiment measure, and find that stocks with stronger investor sentiment are more prone to a future price crash. The positive relation is more pronounced for stocks eligible for margin trading, as higher investor sentiment induces greater margin buy/cover by optimistic investors. Short interest moderates the impact of optimistic sentiment on crash risk. The positive relation is also particularly prominent for stocks with a more speculative appeal, especially for those with lower institutional ownership. Journal: Global Economic Review Pages: 310-339 Issue: 4 Volume: 50 Year: 2021 Month: 10 X-DOI: 10.1080/1226508X.2021.1947340 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.1947340 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:50:y:2021:i:4:p:310-339 Template-Type: ReDIF-Article 1.0 Author-Name: Jin Yeub Kim Author-X-Name-First: Jin Yeub Author-X-Name-Last: Kim Title: A Unique and Robust Social Contract: An Application to Negotiations with Probabilistic Conflicts Abstract: This paper considers social contracts (or mechanisms) in negotiations with incomplete information in which an outside option is a probabilistic conflict and a peaceful agreement is ex ante efficient. I compute the set of interim incentive efficient mechanisms, the ex ante incentive efficient mechanism, as well as the neutral bargaining solution. I numerically illustrate that the focus on the ex ante incentive efficient mechanism as the most reasonable prediction is not robust. This paper justifies the neutral bargaining solution as the unique, robust solution among all interim incentive efficient mechanisms. Journal: Global Economic Review Pages: 61-74 Issue: 1 Volume: 51 Year: 2022 Month: 01 X-DOI: 10.1080/1226508X.2021.2006739 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.2006739 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:1:p:61-74 Template-Type: ReDIF-Article 1.0 Author-Name: Duk Gyoo Kim Author-X-Name-First: Duk Gyoo Author-X-Name-Last: Kim Author-Name: Jinhyuk Lee Author-X-Name-First: Jinhyuk Author-X-Name-Last: Lee Author-Name: Euncheol Shin Author-X-Name-First: Euncheol Author-X-Name-Last: Shin Title: Collective Proofreading and the Optimal Voting Rule Abstract: Policy decisions often involve a repeated proofreading process before implementation. We present a dynamic model of proofreading decisions by a heterogeneous committee before implementing a risky policy. The proofreading process is necessary because the risky policy contains an unknown number of errors. Proofreading continues as long as a qualified majority votes for continuation. Once the proofreading process ends, and the policy is implemented, members receive heterogeneous penalties based on the remaining errors. We characterize the optimal voting rule given the costs and penalties for the committee. We find that any qualified voting rule, including majority rule, for proofreading is inefficient. Journal: Global Economic Review Pages: 1-17 Issue: 1 Volume: 51 Year: 2022 Month: 01 X-DOI: 10.1080/1226508X.2022.2040379 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2040379 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 Author-Name: Hyunsoo Joo Author-X-Name-First: Hyunsoo Author-X-Name-Last: Joo Author-Name: Hyunjin Lee Author-X-Name-First: Hyunjin Author-X-Name-Last: Lee Title: IPO Underpricing Analysis Using a Selection Model: Korean Evidence Abstract: Using IPO and external audit companies’ data in Korea from 2001 to 2020, we used an empirical test to understand which factors can explain underpricing in Korean stock markets. Our conclusions are as follows: first, selection bias is important in the IPO analysis and the sample selection model shows the best results. Second, we find that nonlinear relationships between explanatory variables and cumulative adjusted returns (CARs). Surprisingly, almost all of the variables included in the model were statistically significant. Finally, this clear relation persists upto 1 year after the IPO. Journal: Global Economic Review Pages: 43-60 Issue: 1 Volume: 51 Year: 2022 Month: 01 X-DOI: 10.1080/1226508X.2021.2015420 File-URL: http://hdl.handle.net/10.1080/1226508X.2021.2015420 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:1:p:43-60 Template-Type: ReDIF-Article 1.0 Author-Name: Jia Li Author-X-Name-First: Jia Author-X-Name-Last: Li Author-Name: Zhengying Luo Author-X-Name-First: Zhengying Author-X-Name-Last: Luo Title: A Quasi-Natural Experiment: Product Market Competition and Stock Price Crash Risk Abstract: This paper uses the sample companies in China, taking the promulgation and implementation of the <> as an external event shock, and studies the impact of product market competition on stock price crash risk. The result shows that product market competition significantly reduces stock price crash risk, which is quite different from the conclusion under the American economic environment. Further research finds that high management agency problems and opacity of enterprise information may be the impact channel of product market competition to reduce stock price crash risk. Journal: Global Economic Review Pages: 18-42 Issue: 1 Volume: 51 Year: 2022 Month: 01 X-DOI: 10.1080/1226508X.2022.2040043 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2040043 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:1:p:18-42 Template-Type: ReDIF-Article 1.0 Author-Name: Kyu Y. Lee Author-X-Name-First: Kyu Y. Author-X-Name-Last: Lee Author-Name: Hyun Park Author-X-Name-First: Hyun Author-X-Name-Last: Park Title: Illegal Immigration, Labour Supply, and Fiscal Policies Abstract: This paper explores the economic impact of illegal immigration in a dynamic general equilibrium model when the domestic labour supply is elastic and the fiscal policies include various taxes and income transfers. We first find that despite the mixed effects of illegal immigration on endogenous leisure-labour and saving-investment decisions, illegal immigration improves the welfare of domestic households in a dynamic competitive economy. The countervailing effects, however, show the wage differential improves individual welfare but hurts aggregate production. We then examine how the fiscal policies of illegal immigration influence a decentralised competitive equilibrium. Whereas the equivalence of economic incidence requires taxation on illegal immigrants, partial compliance causes the nonequivalence between labour income taxes and payroll taxes. Again, due to the countervailing effects, fiscal burden causes an adversary effect on the welfare of domestic households but stimulates aggregate economic performance. The opposite effects also arise in the fiscal contribution of illegal immigrants. Journal: Global Economic Review Pages: 75-113 Issue: 2 Volume: 51 Year: 2022 Month: 04 X-DOI: 10.1080/1226508X.2022.2040378 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2040378 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:2:p:75-113 Template-Type: ReDIF-Article 1.0 Author-Name: Yunqing Wang Author-X-Name-First: Yunqing Author-X-Name-Last: Wang Author-Name: Linsen Yin Author-X-Name-First: Linsen Author-X-Name-Last: Yin Author-Name: Xinyu Sui Author-X-Name-First: Xinyu Author-X-Name-Last: Sui Author-Name: Wenjie Pan Author-X-Name-First: Wenjie Author-X-Name-Last: Pan Title: Oil Price Shocks and Inflation Targeting in China Abstract: We develop a small open economy DSGE-based New Keynesian model incorporating the demand for oil, to focus on whether the PBoC targets core inflation or headline inflation including oil price inflation, and investigating the macroeconomic effect of oil price shocks. Based on both counterfactual simulations and welfare evaluations, our results indicate that targeting both core inflation and non-core inflation are inferior to the one purely pegged to core inflation, suggesting the central bank should target core inflation instead of headline inflation. Our paper contributes to a growing literature on monetary policy in China and other emerging market economies. Journal: Global Economic Review Pages: 114-141 Issue: 2 Volume: 51 Year: 2022 Month: 04 X-DOI: 10.1080/1226508X.2022.2060277 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2060277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:2:p:114-141 Template-Type: ReDIF-Article 1.0 Author-Name: Deokki Ko Author-X-Name-First: Deokki Author-X-Name-Last: Ko Title: Financial Stress in the Foreign Exchange Market and its Real Effect on Firm Investments: Evidence from South Korea Abstract: This study proposes an exogenous financial stress index for South Korea’s foreign exchange market (EXO-FSIFX) and explores its effect on firm investments using panel data on manufacturing firms listed on the Korea Exchange from 2000 to 2019. The empirical results show that EXO-FSIFX negatively affects firm investments on average, and the strength of this relationship varies by firm characteristics. Specifically, the negative impact of EXO-FSIFX on firm investments increases in firms with procyclical sales and financial unsoundness. Journal: Global Economic Review Pages: 142-158 Issue: 2 Volume: 51 Year: 2022 Month: 04 X-DOI: 10.1080/1226508X.2022.2079544 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2079544 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:2:p:142-158 Template-Type: ReDIF-Article 1.0 Author-Name: Babar Nawaz Abbasi Author-X-Name-First: Babar Nawaz Author-X-Name-Last: Abbasi Author-Name: Zhimin Luo Author-X-Name-First: Zhimin Author-X-Name-Last: Luo Author-Name: Ali Sohail Author-X-Name-First: Ali Author-X-Name-Last: Sohail Author-Name: Wang Shasha Author-X-Name-First: Wang Author-X-Name-Last: Shasha Title: Research on Non-Cognitive Ability Disparity of Chinese Adolescent Students: A Rural-Urban Analysis Abstract: This paper has examined rural-urban Chinese student’s non-cognitive abilities using the China Education Panel Survey (CEPS) by employing include Two-Sample t-Test, Regression analysis, and Oaxaca–Blinder Decomposition analysis. The results reveal a significant gap in the non-cognitive abilities of rural and urban students in which that of the urban students is higher. Furthermore, irrespective of whether rural or urban, male students have higher non-cognitive ability than female students. Moreover, it discovered that about 52% of the rural-urban non-cognitive abilities gap accounted by the following factors, namely region, gender, whether the student is the only child, school grade, and ethnic minority. Journal: Global Economic Review Pages: 159-174 Issue: 2 Volume: 51 Year: 2022 Month: 04 X-DOI: 10.1080/1226508X.2022.2085134 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2085134 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:2:p:159-174 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2121936_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yeonjin Shin Author-X-Name-First: Yeonjin Author-X-Name-Last: Shin Author-Name: Jung Hur Author-X-Name-First: Jung Author-X-Name-Last: Hur Title: Effects of Financial Soundness on Export Activities: Evidence from Firm-Level Data of Korea Abstract: We examine effects of financial soundness on various export activities of manufacturing firms in South Korea. The main results are as follows. First, the export-starters prepared to have a better financial soundness a few years before becoming export-starter. Second, the better financial soundness at a given year increases a probability for a firm to become a new exporter at the following year. Third, the better financial soundness is related to covering export market entry costs rather than export continuation costs. Our findings imply that the financial soundness plays a self-selection role in increasing numbers of export firms in manufacturing sectors. Journal: Global Economic Review Pages: 175-194 Issue: 3 Volume: 51 Year: 2022 Month: 07 X-DOI: 10.1080/1226508X.2022.2121936 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2121936 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:3:p:175-194 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2085135_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Karen Meng Li Author-X-Name-First: Karen Meng Author-X-Name-Last: Li Author-Name: Sang-Hyun Kim Author-X-Name-First: Sang-Hyun Author-X-Name-Last: Kim Title: Performance Feedback with Team Incentive: A Field Experiment in Chinese Factories Abstract: This paper employs a field experiment to investigate in which information environment team-based incentives work better. The experiment was conducted in two spinning factories in Henan, China. We focus on workers who were doing the same individualistic task but still were paid according to team performances. For about three months, we have given three different types of performance feedback, baseline, intra-team, and inter-team feedbacks. We find that workers’ productivity was highest with the intra-team feedback and lowest with the baseline feedback, which suggests that peer pressure and group status concern are of importance in making team incentives work. Journal: Global Economic Review Pages: 216-231 Issue: 3 Volume: 51 Year: 2022 Month: 07 X-DOI: 10.1080/1226508X.2022.2085135 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2085135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:3:p:216-231 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2120517_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yunqi Fan Author-X-Name-First: Yunqi Author-X-Name-Last: Fan Author-Name: Guanglei Hu Author-X-Name-First: Guanglei Author-X-Name-Last: Hu Title: Capital Market Consequence of Institutional Investment Constraint: Evidence from the Stock Price Crash Risk in China Abstract: This study finds that institutional investment constraint increases stock price crash risk. We employ both instrumental variable approach and a quasi-experiment to identify the causal effect. We also find institutions are more likely to sell stocks with stronger institutional investment constraint in response to firm’s bad news. In addition, the positive relationship between institutional investment constraint and crash risk is less pronounced for institutions of larger size and better past performance. These results are consistent with managerial catering explanation rather than career concern and soft information explanations. Finally, the channel analysis shows that the effect of institutional investment constraint on crash risk is mediated by predatory selling and investor information competition. Journal: Global Economic Review Pages: 232-264 Issue: 3 Volume: 51 Year: 2022 Month: 07 X-DOI: 10.1080/1226508X.2022.2120517 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2120517 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:3:p:232-264 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2120518_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dan Li Author-X-Name-First: Dan Author-X-Name-Last: Li Author-Name: Xinyao Wang Author-X-Name-First: Xinyao Author-X-Name-Last: Wang Author-Name: Yubing Xu Author-X-Name-First: Yubing Author-X-Name-Last: Xu Author-Name: Yutian Ren Author-X-Name-First: Yutian Author-X-Name-Last: Ren Title: Analysis of Export Diversification and Impact of Globalisation on Income Inequality: Evidence from Asian Countries Abstract: Due to the importance of product and geographical diversification of exports, the gravity equation was used to predict export diversification for 19 Asian countries from 2004 to 2017 and the System Generalised Method of Moments was used to analyse the dynamic impact of globalisation at the disaggregated level of the diversification of sectoral exports and the goods specialisation on income inequalities. The results show that sectoral diversification of exports is the driving force of inequality. Furthermore, increased diversification of exports in the highly-income countries of Asia increases inequality and has little impact on low-income countries in Asia. Journal: Global Economic Review Pages: 195-215 Issue: 3 Volume: 51 Year: 2022 Month: 07 X-DOI: 10.1080/1226508X.2022.2120518 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2120518 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:3:p:195-215 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2102055_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ajaya Kumar Panda Author-X-Name-First: Ajaya Kumar Author-X-Name-Last: Panda Author-Name: Swagatika Nanda Author-X-Name-First: Swagatika Author-X-Name-Last: Nanda Author-Name: Satyananda Sahoo Author-X-Name-First: Satyananda Author-X-Name-Last: Sahoo Title: Transmission of Monetary Policy Impulses to a Firm’s Profitability: An Empirical Analysis of Manufacturing Firms Abstract: The study aims to examine the evidence of transmission of monetary policy impulses to a firm’s profitability and highlights that short-term financing decision fails to enhance the profitability of the firms during tight monetary policy except for the firms with high quantile of profitability. During tight monetary policy, the profitability of firms from median quantiles of profitability and above is negatively impacted. After incorporating price-cost margin, we find that the short-term financing decisions of high price-cost margin firms are hardly responsive to monetary policy. However, for long-term financing, firms with high mark-up and high profitability support profitability positively. Journal: Global Economic Review Pages: 265-285 Issue: 3 Volume: 51 Year: 2022 Month: 07 X-DOI: 10.1080/1226508X.2022.2102055 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2102055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:3:p:265-285 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2143703_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Kwangyong Park Author-X-Name-First: Kwangyong Author-X-Name-Last: Park Title: Macroeconomic Impacts of COVID-19 and Universal Transfer Programs: The Case of Korea Abstract: In this paper, we analyse the impacts of COVID-19 and the policy response to it in Korea based on a version of a Macro-SIR model with labour friction, and with multiple types of jobs and households. Due to substantial uncertainty in the model and parameters that govern the interaction between epidemiological and macroeconomic developments, we rely on a prior predictive analysis when simulating the model. We find that the model successfully predicts an endogenous rise in the number of confirmed cases in the second half of 2020, and a sharp decline in economic activity followed by a temporary recovery caused by the government transfer program. It also turns out that low-wealth households are more damaged from the pandemic due to larger losses in terms of labour income. In addition, it is shown that the consumption multiplier of the universal transfer program is around 0.09. Journal: Global Economic Review Pages: 304-332 Issue: 4 Volume: 51 Year: 2022 Month: 10 X-DOI: 10.1080/1226508X.2022.2143703 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2143703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:4:p:304-332 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2122530_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Chang Hwan Choi Author-X-Name-First: Chang Hwan Author-X-Name-Last: Choi Author-Name: Narantsetseg Chinzorigt Author-X-Name-First: Narantsetseg Author-X-Name-Last: Chinzorigt Author-Name: Noori Park Author-X-Name-First: Noori Author-X-Name-Last: Park Title: How Mobiles Affect International Trade, FDI and Economic Growth: Comparative Analysis of Income Level Abstract: Mobile is a key sector promoting international trade, FDI and economic growth in the modern era. The objective of this paper is to examine the dynamic nexus between Mobile, trade, FDI and economic growth by employing a panel vector error correction model. Empirical results suggest that Mobile has more positively contributed to international trade in the low income country group than other groups, and it has a more positive impact on FDI inflow in the higher-income country group than other groups, it has a more powerful impact on economic growth in the middle-income country group than other groups. Journal: Global Economic Review Pages: 287-303 Issue: 4 Volume: 51 Year: 2022 Month: 10 X-DOI: 10.1080/1226508X.2022.2122530 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2122530 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:4:p:287-303 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2151030_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Chune Young Chung Author-X-Name-First: Chune Young Author-X-Name-Last: Chung Author-Name: Amirhossein Fard Author-X-Name-First: Amirhossein Author-X-Name-Last: Fard Title: Institutional Investors and Earnings Management in the Korean Stock Market Abstract: This study investigates whether the effectiveness of institutional monitoring varies depending on the economic conditions of emerging capital markets. By analysing the Korean context, we find that the proportion of institutional trading negatively correlates with income smoothing. This finding indicates that, given the Korean market’s structural characteristics (high ownership concentration, large systematic risk, and a high proportion of individual investors), institutional investors, on average, have a strong preference for short-term investments, which may lead to an increase in managers’ opportunistic earnings reporting to meet institutional investors’ earnings expectations. We select our sample period, with the 2008 financial crisis at its centre, and compare the relationship between the proportion of institutional trading and income smoothing across periods before and after the crisis. Notably, our findings show that, in Korea, the diminished effectiveness of institutional monitoring is more pronounced in the post-financial crisis period, characterised by sluggish market growth. Therefore, within emerging capital markets in a period of low market growth, institutional investors’ long-term investment preferences and monitoring may be subdued because the costs of institutional monitoring may outweigh its benefits. This study provides an improved understanding of the variations in institutional monitoring in emerging capital markets brought on by the market’s structural properties and conditions. Journal: Global Economic Review Pages: 333-354 Issue: 4 Volume: 51 Year: 2022 Month: 10 X-DOI: 10.1080/1226508X.2022.2151030 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2151030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:4:p:333-354 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2151029_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yunok Cho Author-X-Name-First: Yunok Author-X-Name-Last: Cho Author-Name: Jungho Kim Author-X-Name-First: Jungho Author-X-Name-Last: Kim Title: Strategic Alliances between Foreign-Owned Firms and Local Firms: The Role of Partner and Industry Types Abstract: This article investigates how a firm’s foreign equity share affects its likelihood of strategic alliances with local firms, discussing the benefits and costs of such strategic alliances. Analysing a panel dataset of Korean firms, we find the inverted U-shaped relationship between foreign equity share and the likelihood of alliance involvement. We also find that the relationship depends on the types of alliance partner and industry. This relationship is relatively steeper when the foreign-owned firm collaborates with a local firm in a different industry. The negative effect of foreign equity share on the likelihood of strategic alliances dominates in high-technology industries. Journal: Global Economic Review Pages: 355-376 Issue: 4 Volume: 51 Year: 2022 Month: 10 X-DOI: 10.1080/1226508X.2022.2151029 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2151029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:51:y:2022:i:4:p:355-376 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2171459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hyun-Hoon Lee Author-X-Name-First: Hyun-Hoon Author-X-Name-Last: Lee Author-Name: Kazunobu Hayakawa Author-X-Name-First: Kazunobu Author-X-Name-Last: Hayakawa Author-Name: Cyn-Young Park Author-X-Name-First: Cyn-Young Author-X-Name-Last: Park Title: The Effect of COVID-19 on Foreign Direct Investment Abstract: This study empirically examines how the coronavirus disease (COVID-19) has impacted foreign direct investment (FDI), using the quarterly data on bilateral FDI flows from 173 home to 192 host economies from the first quarter of 2019 to the second quarter of 2021. The severity of COVID-19 in host economies adversely affected FDI in the manufacturing sector regardless of the entry mode, but the effect of home economies’ COVID-19 situation on FDI was insignificant. On the other hand, in the services sector, the severity of COVID-19 in both host and home economies has significantly negative impact on greenfield FDI, not on cross-border M&A. Journal: Global Economic Review Pages: 1-17 Issue: 1 Volume: 52 Year: 2023 Month: 01 X-DOI: 10.1080/1226508X.2023.2171459 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2171459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2171458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hyun-Jung Nam Author-X-Name-First: Hyun-Jung Author-X-Name-Last: Nam Author-Name: Yohan An Author-X-Name-First: Yohan Author-X-Name-Last: An Title: Interlocking Network, Banker Interlocking Director and Cost of Debt Abstract: This study examines whether the cost of debt decreases when a banker interlocking director sits on the boards and exists within interlocking directors' network using a panel dataset during the period from 1998 to 2014.This study finds that the interlocking directors' network in Korea has gradually increased each year, and Korean firms' cost of debt is reduced when a banker interlocking director is participating on the boards and within interlocking directors' network. Specifically, Chaebols more strategically use a banker interlocking directors to lower the cost of debt than non-Chaebols. This result suggests that a banker interlocking director on boards with a strong firm network alleviates the burden of the cost of debt. Journal: Global Economic Review Pages: 71-92 Issue: 1 Volume: 52 Year: 2023 Month: 01 X-DOI: 10.1080/1226508X.2023.2171458 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2171458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:1:p:71-92 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2155421_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Correction Journal: Global Economic Review Pages: 93-93 Issue: 1 Volume: 52 Year: 2023 Month: 01 X-DOI: 10.1080/1226508X.2022.2155421 File-URL: http://hdl.handle.net/10.1080/1226508X.2022.2155421 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:1:p:93-93 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2166973_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaohong Yu Author-X-Name-First: Xiaohong Author-X-Name-Last: Yu Author-Name: Maonan Chen Author-X-Name-First: Maonan Author-X-Name-Last: Chen Author-Name: Liping Zhang Author-X-Name-First: Liping Author-X-Name-Last: Zhang Title: Cash Dividend, Principal-agent Problem and Local Chairperson: Evidence from China Abstract: This paper studies the relationship between the local chairperson of the board and the cash dividend distribution level by using annual data from A-share listed firms in China. Firstly, the empirical results show a firm’s cash dividend distribution level will increase when the firm has a local chairperson. The analysis of mediating effect concludes that the local chairperson can improve corporate performance by alleviating the first type of principal-agent problems, and this ultimately increases its cash dividend distribution level. Secondly, the cross-sectional tests show this consistency has a greater effect on the cash dividend distribution levels of state-owned enterprises and those that embraced high-quality external audits. Finally, this relationship will be weakened in firms that have the more serious second type of principal-agent problems. Journal: Global Economic Review Pages: 51-70 Issue: 1 Volume: 52 Year: 2023 Month: 01 X-DOI: 10.1080/1226508X.2023.2166973 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2166973 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:1:p:51-70 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2181845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Hyung Kim Author-X-Name-First: Jun Author-X-Name-Last: Hyung Kim Author-Name: Yu Kyung Koh Author-X-Name-First: Yu Author-X-Name-Last: Kyung Koh Author-Name: Jinseong Park Author-X-Name-First: Jinseong Author-X-Name-Last: Park Title: Mental Health Consequences of Working from Home during the Pandemic Abstract: This paper examines the effects of working from home on mental health, with particular attention to the role of home environments. Using unique real-time survey data from South Korea collected during the COVID-19 pandemic, we find that working from home negatively affects the mental health of workers, with greater effects on women and those who are primarily responsible for housework while also maintaining market work. Surprisingly, workers who live with children in the household do not suffer from the negative effects of working from home. Our findings suggest that family-work interaction may be an important factor in the optimal design of working from home. Journal: Global Economic Review Pages: 18-50 Issue: 1 Volume: 52 Year: 2023 Month: 01 X-DOI: 10.1080/1226508X.2023.2181845 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2181845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:1:p:18-50 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2215786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yize Xie Author-X-Name-First: Yize Author-X-Name-Last: Xie Author-Name: Penglong Zhang Author-X-Name-First: Penglong Author-X-Name-Last: Zhang Author-Name: Zhusong Yang Author-X-Name-First: Zhusong Author-X-Name-Last: Yang Author-Name: Wenyin Cheng Author-X-Name-First: Wenyin Author-X-Name-Last: Cheng Title: Redistributive Capacity and International Trade: A Cross-Country Analysis Abstract: Existing studies have shown that the deterioration of domestic income distribution is an important cause for the decline in international trade. This paper investigates whether alleviating domestic income inequality could promote international trade. From the redistribution perspective, this study examines the relationship between state redistributive capacity and international trade by using unbalanced panel data of 153 countries from 1960 to 2018. According to our empirical findings, strengthening redistributive capacity promotes international trade by enhancing domestic society's perception of free trade. In addition, this promoting effect is independent of trade mode but varies with trade content, trade period, and trade subjects. Journal: Global Economic Review Pages: 167-186 Issue: 2 Volume: 52 Year: 2023 Month: 04 X-DOI: 10.1080/1226508X.2023.2215786 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2215786 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:2:p:167-186 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2215807_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lei Wang Author-X-Name-First: Lei Author-X-Name-Last: Wang Author-Name: Xinya Gao Author-X-Name-First: Xinya Author-X-Name-Last: Gao Author-Name: Thomas Stephen Ramsey Author-X-Name-First: Thomas Stephen Author-X-Name-Last: Ramsey Author-Name: Geoffrey J. D. Hewings Author-X-Name-First: Geoffrey J. D. Author-X-Name-Last: Hewings Title: The Role of the Domestic Market Scale in Enhancing Self-Resilience: Analysis based on the PageRank centrality of RCEP and G7 Countries Abstract: How emerging economies could improve their self-resilience is our focus. This paper employs the hypothetical extraction method, PageRank algorithm and the 2005–2019 Comtrade database to analyse the impacts of domestic market scale on the economy’s resilience in the value chains and conditions under which it is affected. The empirical results show that expanding the scale of the domestic market would significantly improve the economy’s resilience in both the RCEP and G7 value chains. Our conclusions support the enrichment of pathways for economies with relatively backward technologies to cope with unexpected shocks and gradually restore economic vitality. Journal: Global Economic Review Pages: 134-166 Issue: 2 Volume: 52 Year: 2023 Month: 04 X-DOI: 10.1080/1226508X.2023.2215807 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2215807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:2:p:134-166 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2190339_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yueyang Zhao Author-X-Name-First: Yueyang Author-X-Name-Last: Zhao Author-Name: Jinbao Yang Author-X-Name-First: Jinbao Author-X-Name-Last: Yang Author-Name: Qian Wang Author-X-Name-First: Qian Author-X-Name-Last: Wang Author-Name: Yung-ho Chiu Author-X-Name-First: Yung-ho Author-X-Name-Last: Chiu Author-Name: Tai-Yu Lin Author-X-Name-First: Tai-Yu Author-X-Name-Last: Lin Title: Digital Financial Coverage, Depth of Usage, and Financial Efficiency Abstract: This research analyses the improvement and differences of digital financial coverage and depth of usage on financial efficiency using the SBM dynamic DEA method. The results show that digital finance’s depth of usage having bigger influence on improving the financial system efficiency. The breadth of digital financial coverage is more conducive to improving input efficiency, while its depth of usage is more conducive to improving output efficiency. Considering both the depth of usage and breadth of coverage, in the east region the financial industry efficiency is higher than that in the non-east region. . Journal: Global Economic Review Pages: 95-113 Issue: 2 Volume: 52 Year: 2023 Month: 04 X-DOI: 10.1080/1226508X.2023.2190339 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2190339 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:2:p:95-113 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2215795_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yanzhao Liu Author-X-Name-First: Yanzhao Author-X-Name-Last: Liu Author-Name: Chee-Wooi Hooy Author-X-Name-First: Chee-Wooi Author-X-Name-Last: Hooy Title: Components of CEO Power and Corporate Social Responsibility: The Moderating Role of Board Independence Abstract: The purpose of this research is to explore the relationship between overall and components of CEOs power and Corporate Social Responsibility (CSR). Besides, we test the moderating influence of board independence on CEOs power and CSR relationship. We focused on public listed companies in China over a sample period of 2010–2020 with 22,182 firm-year observations. Our analysis shows that the total of CEOs power and structural power are negatively correlated with CSR, but ownership, expert and prestige power are positively correlated with CSR. Moreover, we find that board independence has different moderating effects on CEOs power and CSR. Journal: Global Economic Review Pages: 114-133 Issue: 2 Volume: 52 Year: 2023 Month: 04 X-DOI: 10.1080/1226508X.2023.2215795 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2215795 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:2:p:114-133 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2243066_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dooyeon Cho Author-X-Name-First: Dooyeon Author-X-Name-Last: Cho Author-Name: Husang Kim Author-X-Name-First: Husang Author-X-Name-Last: Kim Author-Name: Kyung-woo Lee Author-X-Name-First: Kyung-woo Author-X-Name-Last: Lee Title: Dynamic Spillovers of Economic Policy Uncertainty Across the US, Europe, and East Asia Abstract: This study investigates the dynamic spillovers and asymmetric connectedness of economic policy uncertainty across different economies that primarily affect Korea, that is, the US, Europe, China, and Japan. We find that dynamic connectedness over time is closely associated with substantial economic disruptions because shocks to economic policy uncertainty tend to spill over to a greater extent during turbulent times. The investigation of the economic policy uncertainty transmission mechanism reveals that while the US and Europe are the main transmitters of uncertainty shocks, China, Japan, and Korea are the receivers over the sample period. However, China became a strong transmitter to other economies in 2020. Overall, our findings suggest that economic circumstances can lead to asymmetric connectedness among the corresponding economies and significant spillovers from major economies to Korea through economic policy uncertainty. Journal: Global Economic Review Pages: 187-201 Issue: 3 Volume: 52 Year: 2023 Month: 07 X-DOI: 10.1080/1226508X.2023.2243066 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2243066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:3:p:187-201 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2217551_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Eunju Hwang Author-X-Name-First: Eunju Author-X-Name-Last: Hwang Title: Does COVID-19 Affect the Growth of the Fourth Industrial Revolution? Abstract: The COVID-19 pandemic might accelerate Fourth Industrial Revolution such as FinTech, AI and Robotics. This study explores impact of the COVID-19 on Fourth Industrial Revolution by quantifying such an impact on stock market. Stock indices and ETFs are handled to find log-return distributions via kernel estimation. Before, during and after outbreak of the COVID-19, distributions and related measures are investigated. Results reveal that E-commerce and Fourth Industrial Revolution have grown 1.5-1.7 times in increase rates of daily net returns, compared to main stock indices. A statistical test supports that AI & Robotics sector has grown under influence of the COVID-19. Journal: Global Economic Review Pages: 220-235 Issue: 3 Volume: 52 Year: 2023 Month: 07 X-DOI: 10.1080/1226508X.2023.2217551 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2217551 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:3:p:220-235 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2230984_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jin Yeub Kim Author-X-Name-First: Jin Yeub Author-X-Name-Last: Kim Author-Name: Yongjun Kim Author-X-Name-First: Yongjun Author-X-Name-Last: Kim Author-Name: Myungkyu Shim Author-X-Name-First: Myungkyu Author-X-Name-Last: Shim Title: Do Financial Analysts Herd? Abstract: Financial analysts may have strategic incentives to herd or to anti-herd when issuing forecasts of firms' earnings. This paper develops and implements a new test to examine whether such incentives exist and to identify the form of strategic behaviour. We use the equilibrium property of the finite-player forecasting game of Kim and Shim [2019. “Forecast Dispersion in Finite-Player Forecasting Games.” The B.E. Journal of Theoretical Economics 19 (1).] that forecast dispersion decreases (resp. increases) as the number of forecasters increases if and only if there is strategic complementarity (resp. substitutability) in their forecasts. Using the I/B/E/S database, we find strong evidence that supports strategic herding incentive of financial analysts through a plausible natural experiment setting of brokerage house mergers. We show further that this finding is robust to different forecast horizons and is more pronounced for firms with low initial coverage. Journal: Global Economic Review Pages: 202-219 Issue: 3 Volume: 52 Year: 2023 Month: 07 X-DOI: 10.1080/1226508X.2023.2230984 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2230984 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:3:p:202-219 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2249918_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guangdong Yu Author-X-Name-First: Guangdong Author-X-Name-Last: Yu Author-Name: Zhibin Zhou Author-X-Name-First: Zhibin Author-X-Name-Last: Zhou Author-Name: Jingwen Niu Author-X-Name-First: Jingwen Author-X-Name-Last: Niu Author-Name: Jing Xu Author-X-Name-First: Jing Author-X-Name-Last: Xu Title: The Impact of COVID-19 Outbreak on the RMB Exchange Rate: Evidence from TVP-SV-VAR Model Abstract: Using the Time-Varying Parameter-Stochastic Volatility-Vector Auto Regression model, this study examines the dynamic relationship between Non-deliverable Forwards, Stock Index Gap, Interest Rate Gap, and short-term fluctuations of the RMB exchange rate during the early stage of the COVID-19 outbreak. Our findings indicate that these variables exhibit time-varying characteristics and a relatively significant stable trend. Additionally, in the initial phase of the pandemic, there were substantial capital outflows from the Chinese stock market. However, as the Chinese economic situation improved and the government intervened in a timely manner, exchange rate and Non-deliverable Forwards volatility decreased, leading to a slowdown in outflows. Journal: Global Economic Review Pages: 236-250 Issue: 3 Volume: 52 Year: 2023 Month: 07 X-DOI: 10.1080/1226508X.2023.2249918 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2249918 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:3:p:236-250 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2283878_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Kui Wang Author-X-Name-First: Kui Author-X-Name-Last: Wang Author-Name: Yang Hu Author-X-Name-First: Yang Author-X-Name-Last: Hu Author-Name: Jing Zhou Author-X-Name-First: Jing Author-X-Name-Last: Zhou Author-Name: Feng Hu Author-X-Name-First: Feng Author-X-Name-Last: Hu Title: Fintech, Financial Constraints and OFDI: Evidence from China Abstract: We examined how Fintech affects Chinese firms’ OFDI. By using the regional Fintech index, we identified potential channels through which Fintech affects firms’ OFDI. We show that firms that are more financially constrained exhibit a disproportionally higher OFDI level in cities with better-developed Fintech services. We further find that Fintech development promotes lending to firms and facilitates OFDI because Fintech intensifies bank loan competition. Our research emphasises the importance of financial innovation driven by technology on the behaviour of enterprise internationalisation. Journal: Global Economic Review Pages: 326-345 Issue: 4 Volume: 52 Year: 2023 Month: 10 X-DOI: 10.1080/1226508X.2023.2283878 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2283878 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:4:p:326-345 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2272244_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Hyeseung Wee Author-X-Name-First: Hyeseung Author-X-Name-Last: Wee Author-Name: Daehwan Kim Author-X-Name-First: Daehwan Author-X-Name-Last: Kim Title: Health and Labour Market Outcomes of North Korean Refugees in South Korea Abstract: This study utilises the National Health Insurance Service of Korea (NHIS) data which include the results of annual and bi-annual health screening of North Korean refugees together with indicators of their employment and earnings and investigates the relationship between the refugees’ health and labour market outcomes. We find that the refugees with poor health significantly underperform healthy refugees in the labour market, and the impact of poor health at the time of entry lasts longer than 10 years. We also find that poor health has greater detrimental effects on refugees than on non-refugees. Journal: Global Economic Review Pages: 251-278 Issue: 4 Volume: 52 Year: 2023 Month: 10 X-DOI: 10.1080/1226508X.2023.2272244 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2272244 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:4:p:251-278 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2282622_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Hyoungchul Kim Author-X-Name-First: Hyoungchul Author-X-Name-Last: Kim Author-Name: Seung Hoon Lee Author-X-Name-First: Seung Hoon Author-X-Name-Last: Lee Author-Name: Ji Sub Park Author-X-Name-First: Ji Sub Author-X-Name-Last: Park Title: The Well-Being of Cities: Estimating Migration Attractiveness From Internal Migration Across Korean Cities Abstract: We adopt the methodology proposed by Lee, Lee and Lin [2021. “The Well-Being of Nations: Estimating Welfare from International Migration.” International Economic Review 62:1111-1130] to estimate the migration attractiveness of Korean cities using internal migration data. Our approach has two advantages over traditional methods. First, it is cost-effective as it uses pre-existing administrative data, unlike surveys. Second, It also gives a more comprehensive view of city's viability by accounting for migration costs and patterns. Our findings confirm the ongoing regional imbalance and indicate that some rural areas' migration attractiveness are lower than what their population growth suggests. Journal: Global Economic Review Pages: 313-325 Issue: 4 Volume: 52 Year: 2023 Month: 10 X-DOI: 10.1080/1226508X.2023.2282622 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2282622 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:4:p:313-325 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2272274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Changkyu Choi Author-X-Name-First: Changkyu Author-X-Name-Last: Choi Author-Name: Hojin Jung Author-X-Name-First: Hojin Author-X-Name-Last: Jung Title: Did Republican-Led States Perform Better at Protecting Jobs Against COVID-19 in the United States? Abstract: This study investigated the short-term effects of partisan control by state governments on employment during the 2020 COVID-19 pandemic in the United States. Specifically, we examined whether Republican control of the state government was associated with lower unemployment rates and higher employment-to-population ratios. Our results revealed that party control exerted a weak effect but that the interaction with the number of pandemic-related deaths had a strong negative (positive) impact on unemployment rates (employment-to-population ratios). The moderation effect of our state partisan control variables supports the conclusion that Republican-led states produced better employment outcomes against the pandemic. Journal: Global Economic Review Pages: 279-289 Issue: 4 Volume: 52 Year: 2023 Month: 10 X-DOI: 10.1080/1226508X.2023.2272274 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2272274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:4:p:279-289 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2281917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Marco Di Cintio Author-X-Name-First: Marco Author-X-Name-Last: Di Cintio Author-Name: Sucharita Ghosh Author-X-Name-First: Sucharita Author-X-Name-Last: Ghosh Author-Name: Emanuele Grassi Author-X-Name-First: Emanuele Author-X-Name-Last: Grassi Title: Exports, Irreversible Investments and Product Market Uncertainty: The Role of Trade Intermediaries Abstract: This paper uses the theoretical underpinnings of the real options theory framework to investigate whether uncertainty affects a firms’ decision to directly export versus indirectly export and to determine whether indirect exports may offset the negative effects of uncertainty on export intensity. Using firm-level survey data of 40 emerging countries, we find that uncertainty and firms’ export intensity are negatively correlated. We also find that an increase in uncertainty increases a firms’ willingness to export through trade intermediaries. These results when considered holistically imply that trade intermediaries are able to countervail the negative effect of uncertainty on firms’ export intensity. Journal: Global Economic Review Pages: 290-312 Issue: 4 Volume: 52 Year: 2023 Month: 10 X-DOI: 10.1080/1226508X.2023.2281917 File-URL: http://hdl.handle.net/10.1080/1226508X.2023.2281917 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:52:y:2023:i:4:p:290-312 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2305464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Yulin Hou Author-X-Name-First: Yulin Author-X-Name-Last: Hou Author-Name: Wenjun Xue Author-X-Name-First: Wenjun Author-X-Name-Last: Xue Author-Name: Xin Zhang Author-X-Name-First: Xin Author-X-Name-Last: Zhang Title: The Impact of Geopolitical Risk on Trade Costs Abstract: This paper investigates the impact of geopolitical risk on trade costs across 43 countries from 1995 to 2019. The results show that geopolitical risk enters trade costs regressions positively and significantly. These findings are robust to the consideration of the different sub-periods, the sub-samples ex US and countries with the highest geopolitical risk, more control variables, the alternative estimation method, and the endogeneity issue. Given the importance of trade costs for welfare gains from trade, our results suggest a potential role for policy reforms that aim to reduce the geopolitical risk across the countries. Journal: Global Economic Review Pages: 1-24 Issue: 1 Volume: 53 Year: 2024 Month: 01 X-DOI: 10.1080/1226508X.2024.2305464 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2305464 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2305468_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Miao Grace Wang Author-X-Name-First: Miao Grace Author-X-Name-Last: Wang Author-Name: M.C. Sunny Wong Author-X-Name-First: M.C. Sunny Author-X-Name-Last: Wong Author-Name: Hong Zhuang Author-X-Name-First: Hong Author-X-Name-Last: Zhuang Author-Name: Reinhard Cate Author-X-Name-First: Reinhard Author-X-Name-Last: Cate Title: The Impact of Armed Conflict on Inward Foreign Direct Investment (FDI): An Analysis of Conflict Over Government, Conflict Over Territory, and FDI Abstract: We examine the relationship between armed conflict and foreign direct investment (FDI) in host countries. With data from 113 nations from 1984 to 2014, system GMM and macro-panel CCEMG estimators show that intrastate armed conflict decreases FDI in conflict-ridden hosts. Further, we distinguish two types of armed conflict – conflict over government and conflict over territory. Conflict over government has significant short-term and long-term negative impacts on FDI, while the effect of territorial conflicts appears insignificant. Our results also suggest that armed conflict's harmful impact on FDI mainly occurs in middle- and low-income host countries. Journal: Global Economic Review Pages: 25-51 Issue: 1 Volume: 53 Year: 2024 Month: 01 X-DOI: 10.1080/1226508X.2024.2305468 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2305468 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:1:p:25-51 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2306161_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Sangheon Ahn Author-X-Name-First: Sangheon Author-X-Name-Last: Ahn Author-Name: Soojin Jo Author-X-Name-First: Soojin Author-X-Name-Last: Jo Title: Transmissions of Structural Oil Shocks to Core Prices Abstract: This paper investigates how structural oil market shocks transmit through real oil price changes to the U.S. core prices. Separating out the sources of oil price increases reveals that supply shocks lead to significant and persistent increases in core prices while oil inventory demand shocks pull them down. Other demand-driven shocks do not cause any significant core price fluctuations. Examining different sample periods, we find empirical evidence supporting the strengthening of the oil price pass-through to some degree since mid-1980; however, not much change in the pass-through has been observed since the outbreak of Covid-19. Our findings highlight that understanding the sources of oil price changes is crucial for gauging their impacts on core prices and furthermore, for the conduct of monetary policy. Journal: Global Economic Review Pages: 52-71 Issue: 1 Volume: 53 Year: 2024 Month: 01 X-DOI: 10.1080/1226508X.2024.2306161 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2306161 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:1:p:52-71 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2318783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Youngjae Lee Author-X-Name-First: Youngjae Author-X-Name-Last: Lee Title: Breaking the Vicious Circle: Macroeconomic Perspectives on Policy Interventions for Female Labor Supply and the Gender Wage Gap Abstract: This paper examines the interplay between the female labour supply and wages through human capital accumulation in South Korea, highlighting the significant gender wage gap and low female labor participation. Our findings suggest that wage subsidies alone are insufficient for narrowing the gender wage gap. Targeted wage subsidies for households with infants and toddlers can mitigate career interruptions and enhance human capital for women. However, it also attracts lower-productivity women into the labor market, further exacerbating the gender wage gap. Therefore, direct labour market structural reforms, such as the Anti-Gender Discrimination Act, are essential. Journal: Global Economic Review Pages: 72-98 Issue: 1 Volume: 53 Year: 2024 Month: 01 X-DOI: 10.1080/1226508X.2024.2318783 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2318783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:1:p:72-98 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2351797_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Tri VuPhu Author-X-Name-First: Tri Author-X-Name-Last: VuPhu Author-Name: Keun Lee Author-X-Name-First: Keun Author-X-Name-Last: Lee Author-Name: Donghyun Park Author-X-Name-First: Donghyun Author-X-Name-Last: Park Title: Several Modes of Digitalisation of Value Chains and Their Effects on Firm Behaviour and Performance: Case Studies of Apparel and Video Game Industries Abstract: This paper analyses the digitalisation of the global value chain (GVC) in the apparel and video game industries and its effects on firm behaviour and performance. It elaborates on several modes of digitalisation, namely, thin digitalisation, platform digitalisation and full-range digitalisation. Digitalisation contributes to the expansion of the volume of sales and profits while reducing labour costs. However, its impacts on profitability remain uncertain, with the benefits and costs offsetting each other. GVC digitalisation benefits startups by lowering entry costs and facilitating upgrading, whereas it may be detrimental to incumbent companies since it can enable platform providers to transform into competitors. Journal: Global Economic Review Pages: 116-149 Issue: 2 Volume: 53 Year: 2024 Month: 04 X-DOI: 10.1080/1226508X.2024.2351797 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2351797 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:2:p:116-149 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2351793_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Hiroki Aso Author-X-Name-First: Hiroki Author-X-Name-Last: Aso Title: Effects of Endogenous Longevity on Transitional Dynamics of Intergenerational Mobility Abstract: This paper explains the mechanism that causes the two motions of intergenerational mobility, monotonic motion and cyclical motion. Increasing longevity encourages incentives for education investment while decreasing transfers, which is the funding source for education. If longevity increases slowly, mobility increases monotonically. However, if longevity increases rapidly with economic development, mobility is cyclical owing to a largely decreasing transfer. This result is consistent with the empirical evidence in the literature on intergenerational mobility. In fact, China, where longevity increased rapidly, experienced a cyclical motion of mobility, whereas Norway, where longevity increased slowly, has experienced a monotonic motion of mobility. Journal: Global Economic Review Pages: 150-169 Issue: 2 Volume: 53 Year: 2024 Month: 04 X-DOI: 10.1080/1226508X.2024.2351793 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2351793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:2:p:150-169 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2317123_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Chung Choe Author-X-Name-First: Chung Author-X-Name-Last: Choe Author-Name: Dongwoo Kang Author-X-Name-First: Dongwoo Author-X-Name-Last: Kang Author-Name: Heesun Lee Author-X-Name-First: Heesun Author-X-Name-Last: Lee Title: The Impact of e-commerce on Local Retail Employment: Examining Heterogeneous Impacts by Employment and Regional Types Abstract: This paper examines the impact of e-commerce on local retail employment and its heterogeneity by employment and regional types, using Korean retail survey. Our findings reveal that the positive impact of online sales expansion is mainly confined to the growth of wage workers, though its elasticity with respect to online sales is much smaller than that of offline sales. When dividing the full sample by regional type, the positive employment effect of online sales on wage workers is significant only in non-metropolitan regions. In addition, the negative impact of online sales on non-wage workers is found only in metropolitan regions. Journal: Global Economic Review Pages: 99-115 Issue: 2 Volume: 53 Year: 2024 Month: 04 X-DOI: 10.1080/1226508X.2024.2317123 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2317123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:2:p:99-115 Template-Type: ReDIF-Article 1.0 # input file: RGER_A_2351799_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Ki Bo Ku Author-X-Name-First: Ki Bo Author-X-Name-Last: Ku Author-Name: Byung-Mun Lee Author-X-Name-First: Byung-Mun Author-X-Name-Last: Lee Author-Name: Ki Suk Hong Author-X-Name-First: Ki Suk Author-X-Name-Last: Hong Title: Preference of a Currency for International Payments among the Three Major SDR Currencies Abstract: This paper empirically examines the role of USD, EUR, and CNY as international payment currencies in Korea, China, and Japan. Our survey of business people in those countries finds that higher convertibility and stability of these currencies in the SDR enhance their acceptability and usability for international payments. However, even during times of instability, USD remains highly accepted and usable as a trade payment currency unlike the cases of EUR and CNY. Therefore, maintaining exchange rate stability is essential for improving the acceptability and usability of EUR and CNY as international payment currencies. Journal: Global Economic Review Pages: 170-189 Issue: 2 Volume: 53 Year: 2024 Month: 04 X-DOI: 10.1080/1226508X.2024.2351799 File-URL: http://hdl.handle.net/10.1080/1226508X.2024.2351799 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:glecrv:v:53:y:2024:i:2:p:170-189