nep-sea New Economics Papers
on South East Asia
Issue of 2005‒09‒17
three papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Just how Undervalued is the Chinese Renminbi By Michael Funke; Jörg Rahn
  2. Growth and Convergence in a Two-Region Model: The Hypothetical Case of Korean Unification By Michael Funke; Holger Strulik
  3. Correlating Growth with Well-Being during Economic Reforms Evidence from India and China By Sudip Ranjan Basu

  1. By: Michael Funke; Jörg Rahn
    Abstract: Given that the value of China´s currency has been hot topic recently, this paper explores the equilibrium levels of China´s real and nominal exchange rates. Employing a Johansen cointegration framework, we focus on the behavioral equilibrium exchange rate (BEER) and permanent equilibrium exchange rate (PEER) models. Our results suggest that, while the renminbi is somewhat undervalued against the dollar, the misalignment is not nearly as exaggerated as many popular claims.
    Date: 2005–04
  2. By: Michael Funke; Holger Strulik
    Abstract: The paper discusses the impact and implications of Korean unification by setting up a two-region endogenous growth model. The numerical solutions are based on the formal analytical model, and have been calibrated so that it reflects the observed features of the North and South Korean economies. The numerical solutions provide evidence about the speed of convergence and the large amount of interregional transfers that are required to make the North Korean economy economically viable.
    Keywords: Korean Unification, Regional Convergence; Economic Growth
    JEL: O41 O52 H31 H40
    Date: 2005–05
  3. By: Sudip Ranjan Basu (Graduate Institute of International Studies HEI , Geneva)
    Abstract: This paper investigates the hypothesis that economic growth is critical in inducing well-being during economic reforms. The regional (16 Indian states and 28 Chinese provinces) level study of India and China show that the quality of growth has been essential for well-being. We estimate level of economic well-being by aggregating different socio- economic indicators through multivariate statistical method of factor analysis. We estimate economic growth (per capita income, real) along with their well-being level for four different sub-periods since 1978/80-2001 for all regions. Our empirical results confirm that differential level of well-being across regions is correlated with the quality of growth.
    Keywords: Growth, Well-being, Economic Reforms, Multivariate statistical method, India, China
    JEL: O C R11
    Date: 2005–09–08

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