nep-sea New Economics Papers
on South East Asia
Issue of 2007‒06‒30
nine papers chosen by
Kavita Iyengar
Asian Development Bank

  1. The Effects of IMF Supported-Program on the Asian Crisis By Tatsuyoshi Miyakoshi; Yoshihiko Tsukuda; Junji Shimada
  2. French banks in Hong Kong (1860s-1950s): Challengers to British banks? By Hubert BONIN (GREThA-GRES)
  3. Common and uncommon sources of growth in Asia Pacific By Weber, Enzo
  4. FDI, Market Structure and R&D Investments in China By Lundin, Nannan; Sjöholm, Fredrik; He, Ping; Qian , Jinchang
  5. Crises, Hegemony and Change in the International System: A Conceptual Framework By Dirk Nabers
  6. Technology, automation, and productivity of stock exchanges: International evidence By Hasan, Iftekhar; Malkamäki, Markku; Schmiedel, Heiko
  7. Developing Countries, Donor Leverage, and Access to Bird Flu Vaccines By CHAN Chee Khoon; Gilles de Wildt
  8. The cost of being landlocked : logistics costs and supply chain reliability By Marteau, Jean-Francois; Raballand, Gael; Arvis, Jean-Francois

  1. By: Tatsuyoshi Miyakoshi (Osaka School of International Public Policy (OSIPP), Osaka University); Yoshihiko Tsukuda (Graduate School of Economics, Tohoku University); Junji Shimada (School of Management, Aoyama Gakuin University)
    Abstract: We assess the IMF supported program on the structural reforms after the Asian crisis in 1997 in terms of the before-after, with-without and event study approaches with applying a time varying parameter model to the nine Asian stock markets. All the supported countries except for Thailand ( Indonesia, Korea and Philippine) remarkably improve market efficiency after the implementation of the program, implying positive assessment of the program in the before-after approach. Among the non-supported countries, China, Taiwan, and Malaysia do not improve efficiency after the breakout of the crisis, providing partially positive assessment in the with-without approach. The Thailand, Indonesia and Korean markets show the positive abnormal returns at the dates or at the next dates of programfs announcement, providing partially positive assessment of announcement effects in the event study approach.
    Keywords: IMF supported-programs; Asian crisis; structural reforms; assessment
    JEL: C40 F33 G14 G15
    Date: 2007–06
  2. By: Hubert BONIN (GREThA-GRES)
    Abstract: French banking expansion in China and South-East Asia had to respect the powerful influence of British banks there. From the 1860s French merchant and banking interests had been involved in Hong Kong business because of the colonial developments in Indochina and the links between this area and the Hong Kong centre. The growth of commercial links between the colony and China favoured further integration of banking and currency exchanges with Hong Kong, through the Banque de l’Indochine corporation, competing with Hsbc. It was itself committed to finance Asian-French commercial flows (silk, etc.) directly (Lyon, Bordeaux, Paris) or indirectly (London branch) took part to banking links with France. But Hong Kong also became a bridgehead for Banque de l’Indochine into southern China (Canton, etc.) from the1890s up to the 1930s and, in parallel with the Shanghai branch, its branch there asserted itself as a part of French expansion in the Far-East.
    Keywords: Imperialism, First Globalization, Bank, Overseas, China, Hong-Kong, Guangzhou
    JEL: G20 N25
    Date: 2007
  3. By: Weber, Enzo
    Abstract: This paper embarks to analyse the role of exports and investment supposed to be major sources of economic growth in Asia Pacific. Therefore at first, the cointegration properties of exports, capital formation and GDP are examined in vector error correction models (VECMs). The results confirm the crucial role of exports and investment in the Asian growth dynamics. In a second stage, the structural shocks are identified by short- and long-run restrictions. These shocks, as well as the corresponding dynamic responses, are then correlated across all sample countries to provide insight into the depth of regional coherence. At last, the identified trends are explained by various macroeconomic variables.
    Keywords: Economic Growth; Structural VECM; Export; Investment; Asia Pacific
    JEL: C32 F15 O11
    Date: 2006–09
  4. By: Lundin, Nannan (Research Institute of Industrial Economics (IFN)); Sjöholm, Fredrik (Research Institute of Industrial Economics (IFN)); He, Ping (National Bureau of Statistics of China); Qian , Jinchang (National Bureau of Statistics of China)
    Abstract: FDI can be an important channel for developing countries’ ability to get access to new technology. The impact of FDI on domestically-owned firms’ technology development is less examined but it is frequently argued that technology externalities or demonstration effects could have a positive impact. Another and so far little examined effect of FDI on technology development in domestically-owned firms is through the impact on competition. We examine the effect of FDI on competition in the Chinese manufacturing sector and the effect of competition on firms’ R&D. Our analysis is conducted on a large dataset including all Chinese large and medium sized firms over the period 1998-2004. Our results show that FDI increases competition but there are no strong indications of competition affecting investments in R&D.
    Keywords: China; FDI; Competition; R&D
    JEL: F23 L11 O31
    Date: 2007–06–21
  5. By: Dirk Nabers (GIGA Institute of Asian Studies)
    Abstract: The paper tries to shed light on the conceptual link between international crises like the one following September 11, 2001, the Asian financial crisis of 1997/1998, the end of the Cold War or major international conflicts, and processes of change in the international system. It argues that cultural structures rest on their continuous instantiation through social practices, thereby making them coterminous with process. Process is constituted by meaningful acts of social agents, and can thus only be grasped by analysing meaning. Meaning is transmitted by language. Meaningful language is never reducible to individual speakers; it is a social act. In the paper, I call this process discourse. Linking Critical Discourse Analysis (CDA) with the theory of hegemony developed by Ernesto Laclau and Chantal Mouffe, I will finally be able to show how hegemonic discourses serve as the nexus between crises and cultural structures and how they make cultural change possible.
    Keywords: Crisis, change, discourse, poststructuralism, hegemony, international politics
    Date: 2007–05
  6. By: Hasan, Iftekhar (Rensselaer Polytechnic Institute and Bank of Finland Research); Malkamäki, Markku; Schmiedel, Heiko
    Abstract: The paper stresses on the importance of understanding the operational choices, strategies, and performances of stock exchanges as regular operating firms (Arnold et al (1999), and Pirrong (1999)) Using unbalanced panel data on 49 stock exchanges over the period 1989–1998, the paper traces the productivity of stock exchanges over time and across different types and groups of exchanges. We find significant variability in respect of the productivity – revenue and cost efficiency – across these exchanges. On average, North American exchanges are found to be most cost and revenue efficient. However, our findings also indicate that European exchanges have improved the most, in respect of cost efficiency, while exchanges in South America and Asia-Pacific regions are found to be lagging as regards both cost and revenue estimations. The evidence also indicates that investment in technology-related developments effectively influenced cost and revenue efficiency. Moreover, organisational structure and market competition are found to be significantly associated with both cost and revenue efficiency for the exchanges studied, whereas market size and quality are related only to revenue efficiency.
    Keywords: stock exchanges; technological progress; technical efficiency
    JEL: C23 G20 L20 O50
    Date: 2007–02–27
  7. By: CHAN Chee Khoon; Gilles de Wildt
    Abstract: In early 2007, the Indonesian government decided to withhold its bird flu virus samples from WHO’s collaborating centres pending a new global mechanism for virus sharing that had better terms for developing countries. The 60th World Health Assembly subsequently resolved to establish an international stockpile of avian flu vaccines, and mandated WHO to formulate mechanisms and guidelines for equitable access to these vaccines. Are there analogous opportunities for study volunteers or donors of biological materials in clinical trials or other research settings to exercise corresponding leverage to advance health equity?
    Keywords: avian flu vaccines, global health equity, international health security, essential medicines, public patents
    JEL: I18
    Date: 2007–06
  8. By: Marteau, Jean-Francois; Raballand, Gael; Arvis, Jean-Francois
    Abstract: A large proportion of the least developed countries are landlocked and their access to world markets depends on the availability of a trade corridor and transit systems. Based on empirical evidence from World Bank projects and assessments in Africa, Central Asia, and elsewhere, this paper proposes a microeconomic quantitative description of logistics costs. The paper theoretically and empirically highlights that landlocked economies are primarily affected not only by a high cost of freight services but also by the high degree of unpredictability in transportation time. The main sources of costs are not only physical constraints but widespread rent activities and severe flaws in the implementation of the transit systems, which prevent the emergence of reliable logistics services. The business and donor community should push toward implementation of comprehensive facilitation strategies, primarily at the national level, and the design of robust and resilient transport and transit regimes. A better understanding of the political economy of transit and a review of the implementation successes and failures in this area are needed.
    Keywords: Transport Economics Policy & Planning,Transport and Trade Logistics,Common Carriers Industry,Economic Theory & Research,Rural Roads & Transport
    Date: 2007–06–01
  9. By: Dorothée Boccanfuso (GREDI, Faculte d'administration, Université de Sherbrooke); Rodolphe Missinhoun (GREDI et Institut d'Etudes Politiques de Paris); Luc Savard (GREDI, Faculte d'administration, Université de Sherbrooke)
    Abstract: Dans la perspective d’une réduction accélérée de la pauvreté et l’atteinte des objectifs du millénaire pour le développement, une riche littérature sur la croissance pro-pauvre s’est développée à partir du milieu des années 90 et propose des réformes pour générer une croissance soutenue tout en améliorant les revenus et les conditions de vie des pauvres. Mais les analyses pour l’impact pro-pauvre des réformes sont souvent développées en équilibre partiel et abordent très peu à la fois les questions d’efficacité et d’équité dans la lutte contre la pauvreté. Elles se ont très peu intéressées aux interactions entre les politiques envisagées. Nous abordons ces questions à travers un modèle d’équilibre général calculable (MEGC) statique dans lequel nous générons la croissance par l’endogénéisation du travail (variation du chômage ou de l’emploi) et les dépenses publiques (externalités), en plus des réallocations des dotations factorielles. Nous lui combinons un modèle ménage, suivant l’approche top-down/bottom up, pour prendre en compte les effets rétroactifs des comportements des ménages et leur hétérogénéité. Sur la base de cet outil (appliqué aux Philippines) qui permet de prendre en compte les effets imbriqués de réformes économiques, nous montrons que la piste de complémentarité des politiques (au sens de Edgeworth) peut constituer une alternative intéressante dans la perspective d’accélération de la réduction de la pauvreté et d’atteinte des objectifs du millénaires, à travers une croissance soutenue et équitable. Les résultats mitigés (voire néfastes) obtenus de la simulation de réformes libérales (suppression des subventions agricoles dans les pays développés, promotion des exportations agricoles, libéralisation agricole dans les pays du Sud) suggèrent également une prise en compte des spécificités et contexte particuliers de chaque pays dans la mise en œuvre des réformes.
    Keywords: modèle d’équilibre général calculable, microsimulation, pauvreté, croissance pro-pauvre
    JEL: D58 D31 I30 E6
    Date: 2007

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