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on South East Asia |
| By: | Razmi, Arslan (Asian Development Bank Institute); Hernandez, Gonzalo (Asian Development Bank Institute) |
| Abstract: | Many developing countries have attempted to pursue the East Asian growth model in recent decades. This model is widely perceived to have been based on export-led growth. Given that developed countries are likely to grow at a slower rate and be less willing to run trade deficits in the post-financial-crisis world can this growth model be sustained? Using panel data for Asian countries, this paper contributes to addressing this question by distinguishing between different kinds of export- and tradable-led growth in order to more precisely identify the nature of growth in the pre-crisis decades. |
| Keywords: | export-led growth; tradable-led growth; global imbalances; industrialization; capital accumulation |
| JEL: | F43 O11 O53 |
| Date: | 2011–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0329&r=sea |
| By: | Edwin M. Truman (Peterson Institute for International Economics) |
| Abstract: | This paper addresses two central questions for Asia and the world: (1) What is the purpose of Asian regional policy coordination going forward? (2) Will Asian regional policy coordination substitute or complement global policy coordination? The paper examines the potential coverage and content of such policy coordination, what is meant by Asia in this context, and how Asia fits in with global policy coordination processes. I address three related aspects of Asian regional policy coordination: macroeconomic policies, reserve management, and crisis management. I conclude that while the countries in the Asian region have not completely exploited the scope for regional policy coordination, more ambitious efforts focused on close integration are not likely to bear fruit, in particular, if they are conceived and promoted under the banner of Asian exceptionalism. These conclusions are based on two main considerations: First, Asian economies differ, and will continue to differ, sufficiently in size and stage of development such that it is difficult to conceive of a successful voluntary blending of their interests. Second, the central lesson of the global financial crisis and its current European coda is that global economic and financial integration has advanced sufficiently that countries can run but they cannot hide individually or in sub-global groups of countries. |
| Keywords: | Asia, Emerging Asia, Regional Arrangements, International Monetary Fund, Group of Twenty (G-20), Global Financial Safety Net, Special Drawing Rights, Chiang Mai Initiative, Chiang Mai Initiative Multilateralized, Current Account Adjustment, Exchange Rates |
| JEL: | F02 F15 F32 F33 F36 F42 F53 F55 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp11-21&r=sea |
| By: | Mike Hobday |
| Abstract: | Many international organizations, governments and academics concerned with economic development look to Asia’s success, recommending that other poor countries follow similar models and paths of development. This study argues that such Asian ‘lesson-making’ is a grave mistake in policy-thinking—and in the historical understanding of the nature and process of development. In identifying what we can and cannot learn from the Asian experience, this study examines the various paths of successful growth in East and South East Asia and asks: what can other developing countries learn from Asia’s success, if anything? The study also examines the arguments of some of the great development thinkers of the past to ascertain what can be learned. Because technological and market circumstances facing today’s developing nations have changed it is a mistake to base any strategy on the achievements of past … |
| Keywords: | Asia, innovation, lessons, economic development |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2011-42&r=sea |
| By: | ITO Takatoshi; KOIBUCHI Satoshi; SATO Kiyotaka; SHIMIZU Junko |
| Abstract: | This paper provides a summary of the invoice currency choice and the exchange rate risk management of Japanese overseas subsidiaries based on the questionnaire survey sent and responded in August 2010. Our survey results show that the growing overseas production and sales network promotes U.S. dollar invoicing rather than Japanese yen invoicing, especially in Asia. Regarding currency risk management, most of the Japanese overseas subsidiaries, particularly located in Asia, manage currency risk on the basis of their own judgment. Under the circumstance that the world economy faces a turning point, these findings will give us important insights into the desirable currency regime of Asian countries and also provide meaningful policy implications for possible monetary cooperation in the region. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:11070&r=sea |
| By: | Yan, Isabel K.; Kakkar, Vikas |
| Abstract: | This paper examines a productivity-based explanation of the long run real exchange rate movements of six Asian economies. Using industry level data, we construct total factor productivities (TFPs) for the tradable and nontradable sectors. We find that (a) within each country the relative price of nontradable goods is cointegrated with the sectoral TFP differential, and (b) the real exchange rates are cointegrated with the home and foreign sectoral TFP differentials. Using the predicted real exchange rate as a measure of the "long-run equilibrium", we find that most Asian economiesreal exchange rates are overvalued before the Asian Financial Crisis. |
| Keywords: | Nontraded Goods; Balassa-Samuelson Model; Cointegration |
| JEL: | F41 F31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35218&r=sea |
| By: | Eiji Yamamura; Antonio R. Andrés |
| Abstract: | Using individual-level data for China, Korea, and Japan for 2006, this research examines how the age of children influences marital satisfaction for males and females in East Asian countries. Our results show that the marital satisfaction of males is barely affected by a child of the relationship, whereas the marital satisfaction of females with a young child is lower than that of females who do not have a child. This result holds for countries at different development stages. There is also a gender differential regarding the effect of young children on marital satisfaction. Furthermore, the more developed the country, the greater this difference becomes. |
| Keywords: | Marital satisfaction, child, East Asian countries, ordered probit. |
| JEL: | D19 J13 J16 |
| Date: | 2011–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2011_19&r=sea |
| By: | Christian von Luebke (Department of International Economic Policy, University of Freiburg) |
| Abstract: | Despite the introduction of competitive elections and decentralization, Indonesia’s democracy has yet to realize its promise of good government. Public reform efforts have been paralyzed by national political controversies. Meanwhile, corruption and inefficiency remains a rampant problem across many of Indonesia’s decentralized polities. In this paper I advance three interrelated arguments: First, that the coexistence of new democratic rules and entrenched clientelistic structures has given rise to elite-centered governance; second, that local government leadership has had strong effects, for better or worse, on district performance and probity; and third, that the quality of executive leadership is influenced, not only by individual-level characteristics of local mayors, but also by local ‘topographies’ of power – such as the concentration of and the connectivity to socio-economic assets. |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:fre:wpaper:15&r=sea |
| By: | Philip Abbott; Finn Tarp |
| Abstract: | Vietnam has been among the most successful East Asian economies, especially in weathering the external shocks of recent globalization crises—the 1997-98 Asian financial crisis and the 2008-09 great recession, financial crisis and collapse of global trade. Its success contradicts its characterization as an example of export-led growth and highlights the role of the state, particularly in maintaining and influencing investment. Examination of economic performance and policy responses shows rising dependence on foreign finance around each crisis, and actions by the government to counteract that dependence and bolster the domestic economy while continuing to restructure the economy toward greater emphasis on the private sector. Growth, employment and poverty alleviation have been maintained at the expense of renewed inflation, larger budget deficits, and currency depreciation. The ‘stop-go’ nature of present … |
| Keywords: | trade and development, trade liberalization, foreign direct investment, globalization, WTO accession, asian financial crisis, great recession, Vietnam |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2011-20&r=sea |
| By: | Joseph D. ALBA (Division of Economics, Nanyang Technological University, Singapore 637332, Singapore); Wai–Mun CHIA (Division of Economics, Nanyang Technological University, Singapore 637332, Singapore); Donghyun PARK (Asian Development Bank6 ADB Avenue, Mandaluyong City,Metro Manila, Philippines 1550) |
| Abstract: | East Asia’s small open economies were hit in varying degrees by the sharp drop in the output of major industrial countries during the global financial and economic crisis of 2008-2009. This highlights the role of monetary policy regimes in cushioning small open economies from adverse external output shocks. To assess the welfare impact of external shocks on key macroeconomic variables under different monetary policy regimes, we numerically solve and calculate the welfare loss function of a dynamic stochastic general equilibrium (DSGE) model. We find that CPI inflation targeting minimizes welfare losses for import-to-GDP ratios from 0.3 to 0.9. However, welfare under the pegged exchange rate regime is almost equivalent to CPI inflation targeting when the import-to-GDP ratio is one while the Taylor-type rule minimizes welfare when the import-to-GDP ratio is 0.1. We calibrate the model and derive welfare implications for eight East Asian small open economies. |
| Keywords: | Trade channel, Import-to-GDP ratio, small open economies, welfare, exchange rate regimes, inflation targeting, Taylor rule, foreign output shock |
| JEL: | F40 F41 E52 F31 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:nan:wpaper:1105&r=sea |
| By: | Carneiro, Pedro (University College London); Lokshin, Michael (World Bank); Ridao-Cano, Cristobal (World Bank); Umapathi, Nithin (World Bank) |
| Abstract: | This paper estimates average and marginal returns to schooling in Indonesia using a non-parametric selection model. Identification of the model is given by exogenous geographic variation in access to upper secondary schools. We find that the return to upper secondary schooling varies widely across individuals: it can be as high as 50 percent per year of schooling for those very likely to enroll in upper secondary schooling, or as low as -10 percent for those very unlikely to do so. Average returns for the student at the margin are well below those for the average student attending upper secondary schooling. |
| Keywords: | returns to schooling, marginal return, average return, marginal treatment effect |
| JEL: | J31 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6162&r=sea |
| By: | Carneiro, Pedro; Lokshin, Michael; Ridao-Cano, Cristobal; Umapathi, Nithin |
| Abstract: | This paper estimates average and marginal returns to schooling in Indonesia using a non-parametric selection model. Identification of the model is given by exogenous geographic variation in access to upper secondary schools. We find that the return to upper secondary schooling varies widely across individuals: it can be as high as 50 percent per year of schooling for those very likely to enroll in upper secondary schooling, or as low as -10 percent for those very unlikely to do so. Average returns for the student at the margin are well below those for the average student attending upper secondary schooling. |
| Keywords: | average return; Marginal return; marginal treatment effect; Return to Education |
| JEL: | J2 J3 J31 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8689&r=sea |
| By: | Fratzscher, Marcel; Mehl, Arnaud |
| Abstract: | This paper assesses whether the international monetary system is already tri-polar and centred around the US dollar, the euro and the Chinese renminbi (RMB). It focuses on what we call China’s" dominance hypothesis", i.e. whether the renminbi is already the dominant currency in Asia, exerting a large influence on exchange rate and monetary policies in the region, a direct reference to the old "German dominance hypothesis" which ascribed to the German mark a dominant role in Europe in the 1980s-1990s. Using a global factor model of exchange rates and a complementary event study, we find evidence that the RMB has become a key driver of currency movements in emerging Asia since the mid-2000s, and even more so since the global financial crisis. These results are consistent with China’s dominance hypothesis and with the view that the international monetary system is already tri-polar. However, we also find that China’s currency movements are to some extent affected by those in the rest of Asia. |
| Keywords: | China; euro; exchange rates; German dominance hypothesis; International monetary system; renminbi; tri-polarity; US dollar |
| JEL: | F30 F31 F33 N20 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8671&r=sea |
| By: | Hamanaka, Shintaro (Asian Development Bank) |
| Abstract: | What kind of technical assistance and capacity building benefits do developing countries enjoy if they sign a free trade agreement (FTA) with developed countries? This is a frequently asked question among developing country officials involved in FTA policymaking. While we tend to normatively insist that an FTA should lead to a win-win situation for all contracting parties and that developed members should provide technical assistance to developing partners so that the latter can maximize the benefits and minimize the costs of an FTA, empirical assessments of technical assistance mechanisms under FTAs have not been thoroughly conducted. This paper presents a detailed textual analysis of World Trade Organization (WTO) Agreements and several FTAs in Asia, and identifies how much additional technical assistance developing member countries can enjoy if they enter into FTAs with developed countries. |
| Keywords: | Technical Assistance; FTAs; North-South Cooperation; WTO Agreements |
| JEL: | F51 F53 K33 |
| Date: | 2011–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0089&r=sea |
| By: | Keesookpuna, Chutipong; Mitomob, Hitoshi |
| Abstract: | The cloud computing model is a modern concept of computation that provides a number of benefits for its adopters. This online computing model has been widely used in the western world and accepted to have some business and economic impacts. This paper provides some basic knowledge about cloud computing along with its economic benefits. The author proposes that there is an endogenous relationship between the cloud computing and each of the business and economic variables, namely output, employment, and labour productivity. In order to forecast the impacts of the cloud computing adoption, the Vector Autoregressive (VAR) model is constructed. Thailand is selected as ground for investigation. Apart from the bi-directional causality, the results also show prospective positive impacts of the cloud computing adoption on the growth of output, employment, and labour productivity. Despite the macroeconomic benefits, some policy implications include the encouragement of the cloud computing adoption in universities and banks in order to realise the benefit of scalability and efficient usage of computing resources. -- |
| Keywords: | Cloud computing,Macroeconomic indicators,Forecast,Thailand |
| JEL: | E37 L86 O53 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse11:52181&r=sea |
| By: | Angela Cipollone (Department of Ecoomics and Finance, LUISS University) |
| Abstract: | By using data from the latest wave of the Indonesia Life Family Survey, this paper investigates whether child time allocation depends on the joint impact of liquidity constraints, risk attitudes and time preferences. We employ a double selection model of school hours to control for endogeneity of borrowing constraints and sample selection in school enrolment. Our measures of time preferences and risk attitudes are elicited from individuals’ responses to hypothetical gambles, and households’ risk profile is proxied by the past occurrence of shocks. It will be shown that, under liquidity constraints, risk averse parents raise a precautionary demand for education as an ex-ante risk coping strategy in order to insure future consumption through higher returns from children’s work. |
| JEL: | D10 D91 J01 J22 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lui:celegw:1108&r=sea |
| By: | Cut Dian R.D. Agustina; Wolfgang Fengler; Guenther G. Schulze (Department of International Economic Policy, University of Freiburg) |
| Abstract: | This paper analyzes the regional impact of Indonesia’s fuel policy. It discusses how the sharing of oil and gas revenue and taxes on oil and gas between the center and the regions affect sub-national fiscal position and what the regional incidence of the fuel subsidies is. It also analyzes the regional impact of president’s recent proposal to discontinue subsidizing vehicle fuel as well as the proposal to eliminate the fuel subsidies altogether and shows how the regions are affected by these suggestions. |
| Keywords: | Oil policy, fuel subsidies, regional transfers, regional incidence of intergovernmental fiscal transfers |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:fre:wpaper:18&r=sea |
| By: | Wataru Takahashi (Research Institute for Economics and Business Administration, Kobe University) |
| Abstract: | After looking back the achievements of financial cooperation in Asia, this paper argues its future direction. Despite recent financial turmoil of "Euro", the financial integration in Europe still has the aspects from which we should learn. The other aspect of the financial integration besides the single currency is to develop the good market infrastructure at regional scale. In this respect, Euro has attained good achievement. Financial service has improved much in Europe, which supports the promotion of trade and investment. In Asia, economic integration has progressed in trade and production, while cross border financial service is far behind. There remain many impediments in the financial services. In order to improve them, the priority should be put on the development of financial infrastructure |
| Keywords: | financial cooperation, the single currency, financial integration |
| JEL: | F36 F55 O19 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2011-31&r=sea |
| By: | Gustav Ranis (Economic Growth Center, Yale University) |
| Abstract: | Human development, in combination with technology, yields economic growth which, in turn, is necessary to generate further advances in human development. This paper focuses on the first channel above and finds the relationship significant. Secondly, the paper tries to investigate what affects technology change, as represented by TFP. We examine the influence of openness, FDI, patents and R&D in a 22 country sample and also contrast Asian and Latin American experience. |
| Keywords: | Technology, Human Development |
| JEL: | F00 F16 J24 O10 O15 O30 O31 O32 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:1004&r=sea |
| By: | Gustav Ranis (Economic Growth Center, Yale University); Mallory Irons (Johns Hopkins University); Yanjing Huang (Yale University) |
| Abstract: | There is little doubt that technology change, both in terms of its process and quality dimensions, represents the principal driving force to explain comparative economic performance at both micro and macro levels. This paper examines the sources of technology change and the impediments to the full realization of its opportunities, both abstractly and in the context of a comparison among six typologically diverse developing countries. Among the external sources, we examine the roles of trade, foreign patents and FDI; among the internal sources we examine the roles of investment, domestic R&D, domestic patents, S&T personnel and secondary education alternatives. Among impediments, we analyze certain public and private policy frameworks which tend to impede the realization of technological opportunities. We detect some reasons for the better TFP performance of the East Asian in comparison with the Latin American countries. |
| Keywords: | Development, Technological Change |
| JEL: | O11 O14 O33 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:1002&r=sea |
| By: | Lin, Trisha T. C. |
| Abstract: | This study examines Singapore's national media blueprint and industry stakeholders' coping strategies in response to multi-screen TV development. The findings show Singapore muti-screen TV development is still at a nascent stage after launching Media Fushion and FutureTV plans in mid 2009. The policymakers play a key role to follow national media blueprint to unify the inter-industry and cross-country collaboration. TV operators and telcos are found to remediate themselves by harnessing the power of internet and mobile technologies for content innovation and distribution. To tackle the complicated convergent issues in multi-screen TV industry, this study proposes to separately regulate the technology-neutral platforms and diverse audiovisual content. It also recommends a pro-innovative policy with the light-touch licensing scheme and loose content regulation to facilitate the development of the next TV. -- |
| Keywords: | three-screen TV,multi-screen TV,convergence,media fusion,IPTV,mobile TV,cross-platform,TV technologies,TV market,TV policy |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp11:52325&r=sea |
| By: | Marcus Noland (East-West Center & Peterson Institute for International Economics); ; |
| Abstract: | South Korea is arguably the premier development success story of the last half century. For 47 years starting in 1963, the economy averaged 7 percent real growth annually, and experienced only two years of economic contraction: 1980 after the second oil shock and the assassination of President Park Chung-hee, and 1998 at the nadir of the Asian financial crisis. At the start of that period South Korea had a per capita income lower than that of Mozambique or Bolivia; today it is richer than Spain or New Zealand, and was the first Asian and first non-G7 country to host a summit of the G20, the unofficial steering committee of the world economy. The South Korean case is of interest for a variety of reasons. Rapid growth coincided with extensive state interventions in the economy, and considerable controversy exists as to how much this performance should be credited to the country’s state-led development strategy and to what extent the lessons from that experience might be portable or applied elsewhere. The salience of this issue has grown as South Korea has become a more important provider of development assistance and advice. Now the country faces challenges in maintaining its superior economic performance in the face of an aging population domestically and a taxing external environment. Finally, the country confronts scenarios involving potential instability, collapse, and/or absorption of its neighbor, North Korea. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:ewc:wpaper:wp123&r=sea |
| By: | Rohman, Ibrahim Kholilul; Bohlin, Erik |
| Abstract: | The vast majority of the studies investigating telecommunication development (diffusion of mobile phone, Internet, the broadband, etc.) that have been carried out in the literatures aim at assessing the impact on economic indicators, mainly the Gross Domestic Product (GDP), whereas little attention has actually been paid to investigate the other measurement which reflects a more direct linkage to the individual welfare, for instance the quality of life (QOL) indicators. Following the current counterargument for using the GDP as the goal of economic development, this paper investigates a survey data in Indonesia, observing the relationships between the experience to technology (the length of mobile phone ownership) and technology adoption (internet access) in affecting quality of life (QOL) at individual level. The QOL index is proxied by two indicators which are equally weighted; the objective measurement represented by income level and subjective perceived QOL following the study by Costanza et al., (2007). To operationalize these aims, the model is investigated in two sequential ways; first by determining binomial probit on the Internet access demand equation and then putting the predicted probability of the first equation into second equation of the ordered probit model. The model is further analyzed through the return to education-type equation (Card, 2001) to see the impact of experience to technology and internet access on the QOL index. The results indicate that whereas the access to the Internet is not statistically significant affecting QOL, experience to technology plays an important role. Additionally, the experience of technology (measured at its mean value of 3.5 years) affects the likelihood to have a lower QOL index around 49% and to achieve a higher QOL index in Indonesia around 12%. A year additional of ownership reduces the likelihood on a lower QOL by 3.6% and increases the likelihood to obtain a higher QOL by 2%. -- |
| Keywords: | technology,quality of life,ordered-probit,Internet |
| JEL: | O11 O14 O32 O33 N84 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse11:52206&r=sea |
| By: | Safikhani, Qmars |
| Abstract: | -- |
| Keywords: | Broadband Tariffs,European Broadband,Fixed Broadband Tariffs,xDSL Tariffs,FTTx Tariffs,Cable Modem Tariffs,Mobile Broadband Tariffs,Broadband Statistics,Broadband Tariffs Elasticity and Forecast,Broadband Forecasts,Financial Broadband Analysis,Comparative Analysis of Broadband Market,World Broadband Tariffs,Middle East and Africa Broadband Tariffs and Analysis,Latin America Broadband Tariffs and Analysis,Asia-Pacific Broadband Tariffs and Analysis,Western Europe Broadband Tariffs and Analysis,Eastern Europe Broadband Tariffs and Analysis,North America Broadband Tariffs and Analysis,Econometrics modelling of Broadband take up,Broadband Economy,Broadband Content and Applications. |
| JEL: | L96 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse11:52190&r=sea |
| By: | Prema-chandra Athukorala |
| Abstract: | Global production sharing—the division of production processes into geographically separated stages—is a central feature of economic globalization. This study seeks to broaden our understanding of global production sharing, and to explore policy options for developing countries to engage effectively in production networks through a case study of the export production hub in the State of Penang, Malaysia. The findings uphold Penang as a unique example of marrying national development strategy with emerging opportunities for international specialization within global production networks. The state government of Penang has not only attracted major multinational enterprises in global electronics industry but also helped them become deeply rooted in the economy through a well-design investment promotion strategy, infrastructure development, skills development and vocational training, and promoting a domestic vendor network around the branch plants of MNEs. |
| Keywords: | production sharing, production fragmentation, foreign direct investment, multinational enterprises |
| JEL: | F14 F20 F23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2011-13&r=sea |
| By: | Srinuan, Chalita; Srinuan, Pratompong; Bohlin, Erik |
| Abstract: | Mobile Internet is growing around the world without exception for developing countries like Thailand by passing the poor legacy wired infrastructure. This study attempts to provide guidance to a national regulatory agency (NRA) by addressing the following question: What are the key determining factors to explain the probability that individual consumer will use mobile Internet? The discrete choice model is employed to empirically examine whether the service and application attributes, socio-economic variables and service provider has systematic link with the decision of consumer. The data from a national survey in 2010 commissioned by the National Telecommunications Commission (NTC) of Thailand is used for the analysis. Based on the findings, fixed telephony, e-mail, age, area of living and mobile operator are recognized as the strongest determinants for mobile Internet adoption. The findings suggest that the mobile Internet becomes an alternative technology to bridge the digital divide since a group of people who have no fixed Internet connection at home they can connect the Internet via mobile Internet. As such, telecom regulator and policy makers need to consider the policies regarding to infrastructure investment frequency allocation, content and application development and competition in order to stimulate the growth of mobile Internet adoption and close the digital divide within country. -- |
| Keywords: | Mobile Internet,digital divide,developing country |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp11:52326&r=sea |
| By: | Keesookpuna, Chutipong; Mitomob, Hitoshi |
| Abstract: | It is widely acknowledged that there is a relationship between the use of ICT and economic growth. A number of works of literature point out such fact in the developed country. This study, however, attempts to examine the relationship of the use of ICT and labour productivity, which is one of the factors indicating the economic growth, in the developing country. Thailand is selected for the investigation with the country's data in the period of 1999 - 2010. The ICT is represented by communications consumption and investment throughout the paper. The author presumably proposes a framework in order to verify the relationship in an intuitive way. The quantitative analyses of OLS estimation and the bivariate autoregressive model, or the Granger-causality test, support the validity of the framework and clearly point out the one-way causal relationship flowing from the communications consumption to labour productivity; the communications investment to labour productivity, and the communications consumption to communications investment. -- |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp11:52329&r=sea |
| By: | Muhammad Naveed Tahir (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon) |
| Abstract: | In this paper we investigate the impact of financial globalization on the behaviour of inflation targeting emerging market economies with respect to exchange rate - do central banks respond to exchange rate movements or not. We use quarterly data for six emerging market inflation targeting economies from the date of their inflation targeting adoption to 2009 Q4. The study uses small open economy new Keynesian model à la Gali and Monacelli (2005), and employs multi-equation GMM technique to investigate the relationship. We find that the response of central bank to the exchange rate in case of Brazil, Chile, Mexico and Thailand is statistically significant while insignificant for Korea and Czech Republic. Theoretically, it should not be so as even under flexible inflation targeting central bank responds to inflation deviation and output gap; we think that the peculiar characteristics of emerging markets, like fear of floating, weak financial system and low level of central bank credibility make exchange rate important for these economies. |
| Keywords: | Inflation Targeting; Exchange Rate; Emerging Markets |
| Date: | 2011–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00646601&r=sea |
| By: | Muhammad Naveed Tahir (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France) |
| Abstract: | In this paper we investigate the impact of financial globalization on the behaviour of inflation targeting emerging market economies with respect to exchange rate – do central banks respond to exchange rate movements or not. We use quarterly data for six emerging market inflation targeting economies from the date of their inflation targeting adoption to 2009 Q4. The study uses small open economy new Keynesian model à la Gali and Monacelli (2005), and employs multi-equation GMM technique to investigate the relationship. We find that the response of central bank to the exchange rate in case of Brazil, Chile, Mexico and Thailand is statistically significant while insignificant for Korea and Czech Republic. Theoretically, it should not be so as even under flexible inflation targeting central bank responds to inflation deviation and output gap ; we think that the peculiar characteristics of emerging markets, like fear of floating, weak financial system and low level of central bank credibility make exchange rate important for these economies. |
| Keywords: | Inflation Targeting; Exchange Rate; Emerging Markets |
| JEL: | E52 F41 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1130&r=sea |
| By: | Jurgen von Hagen (University of Bonn, Indiana University and CEPR. Lennestrasse. 37, D-53113 Bonn, Germany.); Haiping Zhang (School of Economics, Singapore Management Unversity) |
| Abstract: | Recent literature has proposed two alternative types of financial frictions, i.e., limited commitment and incomplete markets, to explain the patterns of international capital flows between developed and developing countries observed in the past two decades. This paper integrates both types of frictions into a two-country overlapping-generations framework to facilitate a direct comparison of their eects. In our model, limited commitment distorts the investment made by agents with different productivity, which creates a wedge between the interest rates on equity capital vs. credit capital; while incomplete markets distort the investment among projects with different riskiness, which creates a wedge between the risk-free rate and the mean rate of return to risky capital. We show that the two approaches are observationally equivalent with respect to their implications for international capital flows, production eciency, and aggregate output. |
| Keywords: | financial development, financial frictions, foreign direct investment, incomplete markets, limited commitment, international capital flows |
| JEL: | E44 F41 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:siu:wpaper:17-2011&r=sea |
| By: | Powdthavee, Nattavudh (Nanyang Technological University, Singapore); Boyce, Christopher J. (University of Manchester); Wood, Alex M. (University of Manchester) |
| Abstract: | The importance of noncognitive childhood skills in predicting higher wages is well documented in economics. This paper studies the reverse. Using surveys of lottery winners, we analyze the effects of unearned income on the Big Five personality traits. After correcting for potential endogeneity problems from prize sizes, we find that unearned income improves traits that predict pro-social and cooperative behaviors, preferences for social contact, empathy, and gregariousness, and reduces individuals' tendency toward negative emotional states: known in economics literature as incentive-enhancing personality traits. Our results support the possibility of scope for later interventions to improve the personality traits of adults. |
| Keywords: | noncognitive skills, personality traits, lottery winners, instrumental variables, unearned income |
| JEL: | D3 J24 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6131&r=sea |
| By: | Sugato Chakravarty (Purdue University); Chiraphol N. Chiyachantana (Singapore Management University); Christine Jiang (University of Memphis) |
| Abstract: | We address two important themes associated with institutions’ trading in foreignmarkets: (1) the choice of trading venues (between a company’s listing in its home market and that in theUnited States as anAmerican Depositary Receipt [ADR]) and (2) the comparison of trading costs across the two venues.We identify institutional trading in both venues using proprietary institutional trading data. Overall, our research underscores the intuition that the choice of institutional trading in a stock’s local market or as an ADR is a complex process that embodies variables that measure the relative adverse selection and liquidity at order, stock, and country levels. Institutions route a higher percentage of trades to more liquid markets, and these trades are associated with higher cumulative abnormal returns. We also find that institutional trading costs are generally lower for trading cross-listed stocks on home exchanges even after controlling for selection bias. |
| Keywords: | trading venues, trading costs |
| JEL: | G14 G18 G19 G20 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:csr:wpaper:1010&r=sea |