|
on Central and Western Asia |
| By: | Richard Pomfret |
| Abstract: | What is often abbreviated to GFC included three distinct crises: the 2007-8 North Atlantic financial crisis, a 2008-9 global economic crisis and public finance crises which became increasingly focussed on the eurozone in 2010-12. The relative weight of emerging market economies in the global economy, which had been increasing for several decades, grew even more rapidly in 2008-11 as the economies of the USA and Europe faltered, and other open economies recovered rapidly from the global economic crisis. This poses challenges for global economic governance, although there are constraints on Asia being a more assertive force. For the EU the greater dangers are, first, that if EU leaders see their economies as victims of a GFC then they will fail to address their economies’ own shortcomings, and, second, that preoccupation with internal crises will distract EU leaders from rising to the challenges and opportunities associated with the evolving multipolar global economy. |
| Keywords: | Financial crises, Global economy, Multipolar world |
| JEL: | G01 O53 F40 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0439&r=cwa |
| By: | Spencer, Thomas; Lucas , Chancel; Emmanuel , Guerin |
| Abstract: | This paper investigates the synergies between the policy response to the European crisis and the green economy. We begin by examining the causes of the European crisis, including the potential role played by resource constraints, in particular the rise in oil prices 2004-2008. Then we develop a matrix to assess the synergies between the crisis response and the green economy. We survey the literature on three green economy instruments, namely environmental fiscal reform, green investment and environmental innovation. We then assess their coherence with and potential contribution to the current crisis response. |
| Keywords: | European crisis; green economy; european climate policy; environmental fiscal reform; green stimulus |
| JEL: | H54 Q56 H23 Q43 |
| Date: | 2012–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38802&r=cwa |
| By: | Layal Mansour (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon) |
| Abstract: | The primary aim of this paper is to explore the effectiveness of Hoarding International Reserves and Sterilization in dollarized and indebted countries such as Turkey and Lebanon, by measuring the sterilization coefficient, and the offset coefficient. It also focuses on exploring the link between the sources of Reserves and the external debt. Using monthly data collected from the International Monetary Fund and from the Central Banks of Turkey and Lebanon between January 1994 and February 2011, we applied a 2SLS regression models and we identified explanatory variables that enabled us to estimate the aforementioned coefficients. Our results showed that despite their theoretical practice of sterilization policy, economic constrains of these countries contribute to weaken the efficacy expected from monetary policies. |
| Keywords: | Monetary policy; International Reserve; Sterilization; Foreign Liabilities; Dollarized countries; Turkey; Lebanon |
| Date: | 2012–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00695611&r=cwa |
| By: | Helmy, Mohamed |
| Abstract: | The use of financial services and products that comply with the Shariah principles cause special issues for supervision and risk management. Efficient risk management in Islamic banking has assumed particular importance as they try to cope with the challenges of globalization. This paper highlights the special and general risks surrounding Islamic banking. It also explains the key challenges ahead to promote further development of Islamic banking in the global financial system. As The developing of managing risks tool becomes very essential especially in Islamic banking as most of the products is depending on PLS principle , so identifying and measuring each type of risk is highly important and critical in any Islamic financial based system . Another approach on the recommendation is showing how the Islamic banking can be an ideal alternative than the current conventional banking system . emphasizing the role of Islamic banking on hedging against the economic crisis and the how it can be an add value to the nationals economics in terms of making the society more productive . |
| Keywords: | Risk Management in Islamic Banks |
| JEL: | G32 |
| Date: | 2012–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38706&r=cwa |
| By: | Klaus Schmidt-Hebbel |
| Abstract: | Resource-rich economies in general, and Arab oil exporters in particular, are at a critical juncture, facing the challenge of revamping their fiscal policy institutions and conduct to strengthen macroeconomic and financial stability, raise growth, and improve intra/inter-generational equity. This paper starts by reviewing the international evidence on fiscal policies and outcomes in resource-rich economies at large and Arab oil-exporting countries in particular, which suggests that strong fiscal (and political) institutions can turn the resource curse into a blessing. Then the paper provides comparative reviews of Chile’s and Norway’s decade-long experience in setting up new fiscal institutions and rules to manage their resource rents, aiming at and, in fact, attaining more macroeconomic and financial stability, higher growth, and improved equity. Specific reform lessons to strengthen fiscal institutions and policies are drawn for resource-rich economies and Arab oil exporters. |
| Keywords: | Fiscal institutions, Fiscal rules, Resource-rich economies, Chile, Norway |
| JEL: | E61 E62 E63 H61 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:416&r=cwa |
| By: | Athanasios Orphanides (Central Bank of Cyprus) |
| Abstract: | This paper reviews whether and how the ongoing financial crisis has influenced central banking policy practice. Taking a historical perspective, it argues that throughout the existence of central banks the main objective has remained the same¯stability. What has been evolving over time, and has been influenced by the crisis, is our understanding about how to achieve and maintain stability over time. The paper focuses on the role and relative importance of price stability, economic stability and financial stability arguing that while the crisis has not materially shifted views regarding the monetary policy framework, it has highlighted the need for greater emphasis on financial stability than was appreciated before the crisis. It further argues that central banks must not only have a strong role in macro-prudential supervision but have more direct involvement in micro-supervision of the banking sector. Lastly, the paper argues that the crisis has reaffirmed that strong economic governance is a prerequisite for stability in a monetary union and, in the context of the euro area sovereign crisis, discusses the tremendous costs stemming from of lack of sufficient progress regarding economic governance going forward. |
| Keywords: | Monetary policy, financial stability, economic governance, micro-prudential supervision, macro-prudential supervision |
| JEL: | E52 E58 E63 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cyb:wpaper:2011-6&r=cwa |
| By: | Masino, Serena |
| Abstract: | This paper investigates the channels through which macroeconomic volatility prevents or hinders innovative investment undertakings financed by the domestic business sector. The analysis is based on a sample of 48 countries, representing all levels of development, and uses various measures of macroeconomic instability, such as political, real and monetary volatility. The results suggest a negative impact of macroeconomic instability on the share of R&D financed by the domestic business sector. These outcomes highlight the desirability of counter-cyclical policy interventions aiming to prevent the avoidance or abandonment of private R&D undertakings in unstable macroeconomic environments. |
| Keywords: | Macroeconomic Volatility; Political Instability; R&D Investment; Innovation |
| JEL: | O11 O33 O31 C33 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38830&r=cwa |
| By: | Naudé, Wim (UNU-MERIT / MGSOG, Maastricht University, and Maastricht School of Management); Szirmai, Adam (UNU-MERIT / MGSOG, Maastricht University) |
| Abstract: | The structural transformation of a traditional economy dominated by primary activities into a modern economy where high-productivity activities in manufacturing assume an important role remains a defining feature of economic development. The challenges to attain such structural transformation may be more daunting than in the past. Based on a recent UNU-WIDER/UNU-MERIT project on industrialization this paper discusses the past and present roles of the manufacturing sector in structural change and analyses new challenges facing industrial policy. New challenges discussed in the paper include: (i) integration into global value chains, (ii) the shrinking of policy space in the present international order, (iii) the rise of the Asian driver economies, (iv) new opportunities provided by resource-based industrialization, (v) the accelerating pace of technological change in manufacturing, (vi) how to deal with jobless growth in manufacturing, (vii) creating adequate systems of financial intermediation, and (viii) how to respond to the threats of global warming and climate change. We argue that structural transformation of developing countries requires a type of manufacturing sector development that can deliver high-quality employment, that is aligned with the international division of labour, and that would not lead to autarky, or a reversal of global gains in establishing openness in trade. Industrial policy can make valuable contributions in this regard if the lessons of the past and the challenges of the future are sufficiently taken into consideration. |
| Keywords: | manufacturing, industrialization, growth, development, structural change, industrial policy |
| JEL: | L60 O25 O40 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012041&r=cwa |
| By: | Serge REY; Jacques JAUSSAUD |
| Abstract: | FDI to Japan and Trade Flows: A Comparison of BRICs, Asian Tigers and Developed Countries |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:tac:wpaper:2011-2012_6&r=cwa |
| By: | Wyes, Heinrich-Wilhelm (Asian Development Bank Institute); Lewandowski, Michael (Asian Development Bank Institute) |
| Abstract: | Regional governance systems and national frameworks to address climate change and accelerate green growth in Asia are reviewed and tools to address climate change are outlined. Options for regional level political institutions and financial architecture needed to fulfill voluntary pledges and programs are suggested and potentials, options, and challenges regarding monitoring, reporting, and verification systems are analyzed. In conclusion, policy measures for adaption and mitigation to climate change are provided. |
| Keywords: | climate change; green growth; asia |
| JEL: | H87 |
| Date: | 2012–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0359&r=cwa |
| By: | Alessio Ciarlone (Bank of Italy) |
| Abstract: | In this paper, I investigate the characteristics of house price dynamics for a sample of 16 emerging economies from Asia and Central and Eastern Europe, over the period 1995-2011. Linking housing valuations to a set of conventional fundamental determinants – relative to both the supply and the demand side of the market, institutional factors and other asset prices – and modeling short-term price dynamics – which reflect gradual adjustment to underlying fundamentals – I draw conclusions about the existence, and the basic nature, of house price overvaluation (undervaluation). Overall, I find that actual house prices in the sample of emerging economies are not overly disconnected from fundamentals. Rather, they tend to reflect a somewhat slow adjustment to shocks to the latter. Moreover, the evidence that housing valuations may be driven by overly optimistic (or pessimistic) expectations is in general weak, even if this feature may have played a more prominent role up to the end of 2007, before the onset of the recent global real and financial crisis. |
| Keywords: | house prices, housing market, emerging markets, panel co-integration, asset prices |
| JEL: | E20 E21 E32 E44 C23 D12 P25 R21 R31 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_863_12&r=cwa |
| By: | Dethier, Jean-Jacques; Moore, Alexander |
| Abstract: | This paper surveys the main issues and controversies in the economic literature on infrastructure in developing countries. Section I reviews the evidence on the role of infrastructure in promoting economic growth. It is argued that, although infrastructure may be more important for growth than other types of capital, the exact size and form of its effect is less clear than is often assumed. Section II looks at the issue of infrastructure “needs”, estimates of which are pervasive in both the academic and policy literature. It is argued that the preoccupation with such estimates is largely misplaced. More crucial is to develop systems of infrastructure enabling competition through an appropriate market structure. Therefore, section III reviews the economic fundamentals of infrastructure and the available market structure options and section IV considers means to attract and enable private investment. This is an important means of encouraging competition which has been amongst the top priorities of multilateral banks such as the World Bank or the European Investment Bank. Finally, section V reviews some of the literature debating whether public investment is fundamentally more cost-effective than private investment in infrastructure. There has been renewed interest in this question since the onset of the 2008 global financial crisis, with many countries now seriously questioning the rationale of replacing public with private finance. |
| Keywords: | Infrastructure, Developing Countries, Economic Growth, Regulation, Community/Rural/Urban Development, Institutional and Behavioral Economics, L9, L16, O16, O2, |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:123305&r=cwa |
| By: | Ciani Scarnicci, Manuela |
| Abstract: | Amartya Sen (1933-) is one of the greatest scholars who studied the relationship between ethics and economics and was held the Nobel Economics Prize thanks to this. At the awarding of the Nobel prize, while talking about his studies, the motive was: “...has been highly instrumental in restoring an ethical dimension to economics and related disciplines”. Precisely the theories of this binomial taken from the work of A. Sen “Economics and Ethics” are the basis of this work. Thanks to A. Sen there is proof that there has been a strong detachment of economics from ethics and this is to be considered as one of the greatest lack of the modern economic theory. The basis of the argument of the Nobel Prize winner is the idea that economy can be made more productive in paying more attention to ethical considerations which determine human beings’ behaviour and judgement. Sen, affirms that the predominant economic theory is the one based on individual interest aimed at the maximization of one’s own benefits, yet there aren’t proofs that this maximization is present in any choice of men. Moreover, it is not true that by only following one’s own interest it is possible to reach excellent economic trends. Adam Smith’s theory itself on self- interest, if careful interpretation is provided, do not represent a support for the defenders of human behavior which is only moved by self-interest. Obviously, there might be peculiar situations too where self-interest might lead to ethical approaches. Ethical economics is based on the behavior that individuals exercise in doing business practices. It is then useful to understand what causes such behaviors, therefore it is important to retrieve an interdisciplinary economic study, as Robert Skidelsky claims in his work “The return of the Master”. In this script he tries to give a perspective on the reasons which push an individual towards justice and equity. This dissertation arises from the theories of a few great political philosophers who found their teachings not only on the intrinsic reasons of the human nature but also on the role a State must have to make possible for a civil society to exercise those principles previously said. All the authors considered assume that the individual is a social animal and so the latter is analyzed and studied as integrated in a social context . |
| Keywords: | Aritotle; Sen; Hume; Hobbes; Kant; Rousseau; Calvin; D'Aquino; Smith; ASP; Sympathy; aurea medietas; Becker; Locke; |
| JEL: | D63 I18 Z10 N00 H30 A11 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38713&r=cwa |
| By: | Martin Wermelinger |
| Abstract: | This paper estimates to what extent "green" crisis-era measures have an impact on the "climate-friendliness" of imports in the Asia-Pacific region. Testable predictions and the empirical strategy are derived from the seminal paper of Eaton and Kortum (2002). The empirical results show that at the intensive margin implemented "green" measures are associated with an increase of sourcing from more rather than less energy intensive countries. One reason for this surprising result may be that governments have presented the state interventions as being "green" although the main purpose was not the environment. At the extensive margin, results are slightly more promising. The implementation of "green" measures seems to decrease the likelihood that imports are sourced from a relatively more energy intensive origin. However, the results are not very strong as to statistical and economic significance. In sum, only limited evidence for environmental benefits of "green" crisis-era interventions through the import channel exist. The implementation of such measures may in fact be associated with an environmental degradation of imports. Moreover, supplier countries being "close" competitors to the interventionist country (in terms of technology levels) relatively loose import share if discriminatory "green" measures are implemented. Stated differently, the alleged "green" measures protect domestic against foreign suppliers with similar technology levels. |
| Keywords: | international trade, trade policy, green growth |
| JEL: | F13 F18 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2012:i:079&r=cwa |