nep-sea New Economics Papers
on South East Asia
Issue of 2008‒01‒12
eleven papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Investment Regulation through Trade Agreements:Lessons from Asia By Pierre Sauve
  2. Trade and Investment Liberalization Effects on SME Development: A literature Review and a Case Study of Indonesia By Tulus Tambunnan
  3. Investment Provisions in Regional Trading Arrangements in Asia: Relevance, Emerging Trends, and Policy Implications By Nagesh Kumar
  4. Services Trade in Developing Asia:A case study of the Banking and Insurance Sector in Malaysia By Muthi Samudram
  5. A Panel Data Approach to the Demand for Money and the Effects of Financial Reforms in the Asian Countries By Rao, B. Bhaskara; Kumar, Saten
  6. Political Economy Origins of Financial Markets in Europe and Asia By Svetlana Andrianova; Panicos Demetriades; Chenggang Xu
  7. How Does Corporate Governance Risk at Home Affect Investment Choices Abroad? By Woochan Kim; Taeyoon Sung; Shang-Jin Wei
  8. Trade and Investment Linkages in Higher Education Services in Malaysia By Tham Siew Yean; Andrew Kam Jia Yi
  9. Banking and Insurance Services Liberalization and Development in Bangladesh, Nepal, and Malaysia: A Comparative Analysis By Dilli Raj Khanal
  10. Imports, Exports and Foreign Direct Investment Interactions and Their Effects By Santi Chaisrisawatsuk; Wisit Chaisrisawatsuk
  11. International Islamic Banking By saleem, shahid

  1. By: Pierre Sauve (World Trade Institute, Berne, Switzerland)
    Abstract: This article takes stock of recent trends in the investment dimensions of deepening economic integration in Asia.
    Keywords: Investment, Regulation, Trade Agreements, Lessons, Asia
    JEL: F1
    Date: 2007–11
  2. By: Tulus Tambunnan (Centre for Industry and SME Studies, University of Trisakti)
    Abstract: As this research seeks to bring to the fore benefits that have been or may be derived for SMEs from international trade and investment liberalization in Indonesia, it has three main questions: (1). how international trade and investment policy reforms affect local SMEs; (2) has growth of exports of SMEs accelerated since the reforms; and (3) does investment liberalization generate more subcontracting between local SMEs and FDI.?
    Keywords: Trade and Investment, SME, Indonesia
    JEL: F1
    Date: 2007–08
  3. By: Nagesh Kumar (Research Information System for Developing Countries (RIS, India))
    Abstract: To exploit the locational advantages or synergies between the member countries of the regional trading bloc besides facilitating businesses reaping the economies of scale and specialization.
    Keywords: Investment, Provisions, Regional, Trading Arrangements, Asia, Emerging Trends, policy Implications
    JEL: F1
    Date: 2007–10
  4. By: Muthi Samudram (Monash University)
    Abstract: This study reviews the development of the banking and insurance sectors in Malaysia since the 1980s, with a particular attention to the effects and sequencing of the various reforms as well as the impact of services trade liberalization and related commitments.
    Keywords: Service Trade, Malaysia
    JEL: F1
    Date: 2007–07
  5. By: Rao, B. Bhaskara; Kumar, Saten
    Abstract: Three panel data estimation methods are used to estimate the cointegrating equations for the demand for money (M1) in 14 developing Asian countries. Tests for the effects of financial reforms are made with estimates for two sub-samples of 1970-1985 and 1986-2005. Our results show that money demand functions in these Asian countries are stable and financial reforms have yet to have any significant effects. This implies that the central banks of these countries should use money supply, instead of the rate of interest, as the monetary policy instrument.
    Keywords: Pedroni; Mark and Sul and Breitung methods; Demand for money; Asian countries; Effects of financial reforms and Choice of monetary policy instruments
    JEL: E5 E1
    Date: 2008–01–07
  6. By: Svetlana Andrianova; Panicos Demetriades; Chenggang Xu
    Abstract: This paper contributes to the finance-growth literature by examining the political economy origins of some of the most successful financial markets in Europe and Asia. It provides historical evidence from London, Amsterdam and Hong Kong that highlights the essential role played by the government sector in kick-starting financial development. We show that the emergence of financial systems did not occur through laissez-faire approaches and that secure property rights alone were not sufficient for financial development. In the cases of London and Amsterdam, governments created large trade monopolies which were responsible for all the major financial innovations of the time. In the case of Hong Kong, where the financial developmentmodel was bank-based, large banking monopolies with close links to the state were created. We argue that the three examples are not special cases and the role of government in the early stages of financial development has been widespread world-wide.
    Keywords: Monopoly; politics; institutions; finance
    JEL: G18 N20 O16
    Date: 2008–01
  7. By: Woochan Kim; Taeyoon Sung; Shang-Jin Wei
    Abstract: Disparity between control and ownership rights gives rise to the risk of tunneling by the controlling shareholder. This disparity is prevalent in many emerging market economies and present in some developed countries. This paper studies whether and how the degree of control-ownership disparity in investors' home countries affects their portfolio choice in an emerging market. It combines two unique data sets on ownership and control in business groups, and investor-stock level foreign investment in Korea. A key finding is that, investors from low-disparity countries disfavor high-disparity stocks in Korea, but investors from high-disparity countries are indifferent. Moreover, investors from low-disparity countries became averse to disparity only after the Asian financial crisis. These results suggest that the nature of corporate governance in international investors' home countries affects their portfolio choice abroad, and therefore that these investors should not be lumped together in analyses of their portfolio choice.
    JEL: F3 G1 G3
    Date: 2008–01
  8. By: Tham Siew Yean; Andrew Kam Jia Yi (Institute of Malaysian and International Studies, Malaysia)
    Abstract: This study aims to explore the trade and investment links in private higher education in Malaysia. Specifically, the study assesses whether, and if so, how trade and investment policies in general, and in the education sector in particular, are coordinated at the national level.
    Keywords: Trade and Investment, Education Services,Mode 1,Malaysia
    JEL: F1
    Date: 2007–09
  9. By: Dilli Raj Khanal (Institute for Policy Research and Development)
    Abstract: This paper draws from three country case studies of the liberalization and development of the banking and insurance service sectors in Bangladesh, Nepal and Malaysia undertaken as part of an ARTNeT regional study on trade in services led by the author.
    Keywords: Service Trade, Bangladesh,Nepal, Malaysia
    JEL: F1
    Date: 2007–07
  10. By: Santi Chaisrisawatsuk; Wisit Chaisrisawatsuk (School of Development Economics, NIDA, Bangkok, Thailand.)
    Abstract: This study explores how international trade and investment flows affect each other, using data from OECD and 6 ASEAN countries , and examines whether trade and investment linkages are different between developed and developing economies, or between countries that participate actively in bilateral and/or regional trade agreements.
    Keywords: Imports, Exports, Foreign, Investment, Interactions, Effects
    JEL: F1
    Date: 2007–10
  11. By: saleem, shahid
    Abstract: The purpose of this exploratory and to some extent descriptive analysis is to highlight the Islamic banking & finance theory, and to explain the practical disparity all over the Muslim Umma along with commonalities of Islamic banking in them. Islamic banking has been now become a value proposition which transcends cultures and will do speedily in next decades despite of cutting throat competition expected in global banking scenario. The size of Islamic Financial Industry has now reached size of US$ 250 Billion and its growing annually @ 15% per annum. Institutions like Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Finance Services Board (IFSB) have been formed. Due to these collective efforts, Islamic banking is now recognized by IMF,World Bank and Basel Committee. While, 27 Muslim countries including Bahrain, UAE, Saudi Arabia, Malaysia, Brunei and Pakistan 15 non-Muslim countries including USA, UK, Canada, Switzerland, South Africa and Australia has already adopted it, but in all these countries a lot of diversities lie over theory “ Shariah Principles” and their implementation as bank products/services. In such context our effort is expected to be fruitful for not only local but international policymakers and scholars to overcome these disparities and to really make it a value proposition which transcends cultures……….
    Keywords: Islamic; Banking; Shahid; Finance; shariah; trade; international
    JEL: G2 P4
    Date: 2007–05–25

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