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on South East Asia |
| By: | Hirnissa, M.T; Habibullah, M.S.; Baharom, A.H. |
| Abstract: | This study explores the inter-relationship between military expenditure, education expenditure and health expenditure in eight selected Asian countries namely Malaysia, Indonesia, Singapore, Philippines, Bangladesh, Nepal, Sri Lanka and South Korea. Autoregressive Distributed Lag-Restricted Error Correction Model (ARDL-RECM) procedure was utilized in the analysis. The empirical results suggest that, except for the case of Malaysia and Sri Lanka, whereby no meaningful interrelationship was detected between these three variables, the results for the rest of the countries are mixed, with differing granger causality being detected among these variables. The mixed results obtained in this study is an indicator of differing policy being implemented and will result in varying implication. Generally the error correction term is significant. Implying there is long-run relationship between defense spending, education and health expenditure. |
| Keywords: | defense spending; health expenditure; education |
| JEL: | E62 H51 H56 H52 |
| Date: | 2008–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13107&r=sea |
| By: | Hirnissa, M.T; Habibullah, M.S.; Baharom, A.H. |
| Abstract: | In this study we employ the bounds testing procedure suggested by Pesaran (2001) and dynamic OLS (DOLS) proposed by Stock and Watson (1993) to test the robustness of the causal effect and long-run relationships between military expenditure and economic growth in ASEAN-5 countries from the year 1965 to 2006. Generally, our results suggest that: (1) there are only three (Indonesia, Thailand, Singapore) out of five countries analyzed exhibit long–run relationship between military expenditure and economic growth; (2) While for the case of Singapore, the causality is bidirectional, for Indonesia and Thailand it is unidirectional from military expenditure to economic growth; and (3) For the remaining countries, (Malaysia and Philippines), no meaningful relationship could be detected. The results are robust, producing similar results employing both ARDL and DOLS. |
| Keywords: | military expenditure; economic growth; Asean-5 |
| JEL: | H56 E00 |
| Date: | 2008–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13108&r=sea |
| By: | Coxhead, Ian (U of Wisconsin and Norwegian University of Life Sciences); Li, Muqun (U of Wisconsin) |
| Abstract: | In an integrated global economy, specialisation in trade is an increasingly prominent strategy. A labour-abundant, resource-rich economy like Indonesia faces stiff competition for labourintensive manufactures; meanwhile, rapid growth in demand for resources from China and India exposes it to the ‘curse’ of resource wealth. This diminishes prospects for more diversified growth based on renewable resources like human capital. Using an international panel data set we explore the influence of resource wealth, foreign direct investment, and human capital on the share of skill-intensive products in total exports. FDI and human capital increase this share; resource wealth diminishes it. We use the results to compare Indonesia with Thailand and Malaysia. Indonesia’s reliance on skill-intensive exports would have been higher had it achieved higher levels of FDI and skills. Indonesia’s performance in accumulating these endowments, and its relative resource abundance, impede diversification in production and trade. Finally, we discuss policy lessons and options. |
| JEL: | F14 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:wisagr:524&r=sea |
| By: | Coxhead, Ian (U of Wisconsin and Norwegian University of Life Sciences); Jayasuriya, Sisira (La Trobe U) |
| Abstract: | The rapid growth of China and, more recently, of India, is having major effects on every facet of the global economy. The supply of labor-intensive manufactured exports (from China in particular) has been accompanied by a huge expansion in their imports both of raw materials and of skill-intensive manufactured parts and components. This ‘offshoring’ of intermediates production by large, labor-abundant economies has economic and environmental implications for other developing economies drawn into their trade networks. We sketch a trade-theoretic model showing how the growth of the ‘giants’ generates adjustment pressures on their trading partners and competitors among developing economies. We discuss in particular how differences in relative factor endowments of resource-rich economies can produce quite different outcomes in the context of product fragmentation and expanding commodity trade. We also explore the effects on production, trade, environment and prospects for future growth, recognizing that commodity extraction and production can have strong environmental impacts, particularly in the context of weak institutions and other market failures. We illustrate these different impacts by considering the cases of Indonesia, Malaysia and Thailand and highlight implications for growth, development and policy. |
| JEL: | F14 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:wisagr:528&r=sea |
| By: | Killion, M. Ulric |
| Abstract: | The Article first presents a brief history or survey of the some of the earlier problems that associate with China’s banking and financial institutions. The Article then addresses specific problems, in the context of the rules, procedures, and practices of the banking and finance sector, which widely range from non-performing loans, to China’s money market and interbank lending business. These problems also directly associate with the liberalization of the banking and finance sector of the economy, and the requirements of both the WTO rules and China’s WTO Protocol on accession. The Article also briefly explores the US sub-prime mortgage crisis and its contagion effect throughout the world, including the Asian region. In the context of China and the subprime crisis, the Article summarizes some of the problems that associate with China banking and financial institutions, by focusing on the policy implications of the history of banking and finance in China, and what this means in terms of both WTO compliance and greater liberalization of banking and financial institutions, especially pursuant to the WTO GATS, as service industries. All of this, eventually, allows for the presentation of certain conclusions concerning China banking and finance in the new era of a global subprime crisis. |
| Keywords: | China; banking; finance; WTO; GATT; GATS; subprime crisis; Interbank lending |
| JEL: | F10 F30 G21 |
| Date: | 2009–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13091&r=sea |
| By: | Kristjanson, Patti (?); Reid, Robin (?); Dickson, Nancy (?); Clark, William C. (Harvard U); Vishnubhotla, Prasad (?); Romney, Dannie (?); Bezkorowajnyj, Peter (?); Said, Mohammed (?); Kaelo, Dickson (?); Makui, Ogeli (?); Nkedianye, David (?); Nyangaga, Julius (?); Okwi, Paul (?); Puskur, Ranjitha (?); Tarawali, Shirley (?); MacMillan, Susan (?); Grace, Delia (?); Randolph, Tom (?); Affognon, Hippolyte (?) |
| Abstract: | This paper asks "What kinds of approaches and institutions, under what sorts of conditions, are most effective for harnessing scientific knowledge in support of strategies for environmentally sustainable development and poverty alleviation?" In applying an innovative conceptual framework to a diverse set of sustainable poverty-focused projects undertaken in numerous African and Asian countries, we found that strategies key to closing gaps between knowledge and action include: combining different kinds of knowledge, learning and bridging approaches, strong and diverse partnerships that level the playing field, and building capacity to innovate and communicate. |
| JEL: | O13 O16 O17 O31 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-045&r=sea |
| By: | Waichmann, Israel; Requate, Tilman; Siang, Ch'ng Kean |
| Abstract: | We report results from a Cournot triopoly experiment with different subject pools: German students, Malaysian students, and Malaysian managers. While German students play Nash, we reject the hypothesis that both Malaysian students and managers select the Nash quantity. Moreover, Malaysian managers perform significantly less competitively than Malaysian students. Finally, the affect of gender is opposite for German and Malaysian subjects. |
| Keywords: | artefactual field experiment, subject pools, Cournot oligopoly, managers, non-cooperative behavior |
| JEL: | C72 C93 D21 D43 L13 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cauewp:7467&r=sea |
| By: | Totzek, Alexander |
| Abstract: | Currently, private trust in commercial banks declines as a consequence of today´s financial crisis. As past crises, e.g. the Asian crisis, show, the loss of confidence in the financial sector typically causes private agents to withdraw their capital from financial institutions. Thus, the purpose of this paper is to implement the feature of early deposit withdrawal in a New Keynesian framework with commercial banks in order to analyze the implications of a loss of confidence. In addition, we present the optimal monetary policy to ensure a stabilized system. |
| Keywords: | banks, financial crises, deposit withdrawal, optimal monetary policy |
| JEL: | E44 E50 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cauewp:7468&r=sea |
| By: | Bacha, Obiyathulla I.; Mohamed, Eskandar R.; Ramlee, Roslily |
| Abstract: | This paper undertakes a comprehensive evaluation of the efficacy of firm-specific trading halts in the Malaysian context. The paper examines a total of 291 trading halts that occurred over the five year period 2000 to 2004. In addition to examining the three variables commonly impacted by trading halts, stock price reaction, volatility of returns and trading volume, we also examine four additional parameters that could have material impact. These are (i) the type of halt whether voluntary or mandatory, (ii) type of news released, (iii) duration of halt and (iv) frequency. Based on our overall sample, trading halts result in a positive price reaction, increased volume and volatility. We find evidence of information leakage, significant difference between voluntary and mandatory halts and the type of news released during halt to have a huge impact. The duration of halt has isolated impact and is largely inconsequential. The frequency of halts does not seem to matter. While these results broadly conform with previous studies of trading halts in other markets, our refined analysis by subcategory showed some interesting differences. The two key differences were the significantly positive price reaction for the sample of mandatory halts and the lower volatility for voluntary halts. We attribute the positive price reaction of mandatory halts to the peculiarity of regulation and the resulting survivor bias. We argue that the lower volatility for voluntary halts particularly for those in the good news category, imply that these stocks are being repriced. With the exception of some subsets, our overall results appear to be strongly supportive of The Price Efficiency hypothesis of trading halts which argues that trading halts help disseminate information and enhance the price discovery process. |
| Keywords: | The effectiveness of firm specific stock trading halts. Malaysian Evidence. |
| JEL: | G14 G19 G10 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13077&r=sea |
| By: | Campante, Filipe R. (Harvard U); Chor, Davin (Singapore Management U) |
| Abstract: | We investigate how the link between individual schooling and political participation is affected by country characteristics. We introduce a focus on a set of variables--namely factor endowments--which influence the relative productivity of human capital in political versus production activities. Using micro data on individual behavior, we find that political participation is more responsive to schooling in land-abundant countries, and less responsive in human capital-abundant countries, even while controlling for country political institutions and cultural attitudes. We develop these ideas in a model where individuals face an allocation decision over the use of their human capital. A relative abundance of land (used primarily in the least skill-intensive sector) or a scarcity of aggregate human capital will increase both the level of political participation and its responsiveness to schooling, by lowering the opportunity cost of production income foregone. In an extension, we further consider the problem of how much schooling a utility-maximizing ruler would choose to provide. An abundance of land tends to increase political participation ex post, and hence will lead the ruler to discourage human capital accumulation, a prediction for which we find broad support in the cross-country data. Our model thus offers a framework which jointly explains patterns of political participation at the individual level and differences in public investment in education at the country level. |
| JEL: | D72 D78 I20 I21 O15 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-043&r=sea |