Asia

Financial literacy and remittance behavior of skilled and unskilled immigrant groups in Australia

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: February 2014
Source:Journal of Asian Economics, Volume 30

Author(s): Wasana Karunarathne , John Gibson

Studies of financial literacy show that many people are poorly prepared for making major financial decisions. One important sub-group rarely examined by financial literacy studies is immigrants, who have specialized financial needs related to remittances. This paper examines variation in financial literacy amongst two actively remitting immigrant groups in Australia – Sri Lankans and Samoans – using surveys designed and supervised by the authors. Paying attention to remittance-related and credit-related literacy, large gaps in the level of financial literacy of the two groups are shown, which are due especially to differences in educational attainment. The wide variation in transactions costs of various remittance channels suggest that many immigrants could save several hundred dollars per year if improved financial literacy helped to produce more efficient remittance choices.





Categories: Asia, Economics

Monetary regime choice in Singapore: Would a Taylor rule outperform exchange-rate management?

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: February 2014
Source:Journal of Asian Economics, Volume 30

Author(s): Hwee Kwan Chow , G.C. Lim , Paul D. McNelis

A DSGE–VAR approach was adopted to examine the managed exchange-rate system at work in Singapore and to ask if the country had any reason to fear floating the exchange rate and adopting a Taylor rule. The results showed that, in terms of overall inflation volatility, the exchange rate rule had a comparative advantage over the Taylor rule when export-price shocks were the major sources of real volatility while a Taylor rule was preferable when domestic productivity shocks were dominant. The exchange-rate rule also dominated the Taylor rule for reducing inflation persistence.





Categories: Asia, Economics

Editorial Board

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29









Categories: Asia, Economics

A note on detecting biases in assessing the use of FTAs

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Shintaro Hamanaka

There has been much confusion, rather than debate, on the use of free trade agreements (FTAs). Unfortunately, a large part of the confusion is caused by the absence of consensus on the meaning of key terms such as the “utilization rate” and “usage rate” of FTAs, and the lack of knowledge on upward or downward biases from various data sources regarding the use of FTAs. Rather than making an original empirical contribution, this article reviews existing studies and attempts to identify the relevant methodologies for assessing the use of FTAs.





Categories: Asia, Economics

Regional disparity, transitional dynamics and convergence in China

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Tsun Se Cheong , Yanrui Wu

Most of the earlier studies on the convergence of income in China are based on provincial level data with a few papers focusing on intra-provincial units’ transitional dynamics. The objective of this study is to fill the void in the literature by using county-level data which cover 1485 counties and county-level cities in 22 provinces for the period of 1997–2007. This paper makes several contributions to the literature. The findings in this paper show high persistence in income distribution among many spatial groupings. Thus the poor county-level units may remain relatively poor over time. This study provides very little evidence of convergence to the mean income in various spatial groupings. Furthermore, the empirical analysis highlights differences in transitional dynamics between cities and counties.





Categories: Asia, Economics

Trade liberalisation and manufacturing wage premiums: Evidence from Thailand

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Kankesu Jayanthakumaran , Piyapong Sangkaew , Martin O’Brien

This paper investigates trade related industrial wage premiums. The procedure involves (1) estimating industrial wage premiums and (2) linking those estimated wage premiums to trade related variables. Results reveal that (1) in addition to workers’ characteristics, industry characteristics where workers are employed were important in determining the wages for workers, (2) falling output tariffs resulted in increased wage premiums, and (3) an increase in intermediate imports exerted a strong positive influence on wage premiums. Linked employer and employee micro data may provide further insights which are currently not available.





Categories: Asia, Economics

An empirical analysis of China's equilibrium exchange rate: A co-integration approach

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Christopher Gan , Bert Ward , Su Ting Ting , David A. Cohen

This paper estimates time specific values for China's long-run equilibrium exchange rate and develops measures of the direction and extent of misalignment based on a reduced-form real effective exchange rate (REER) model. An appropriately specified long-run equilibrium model is estimated and tested following Johansen and Juselius (1990) procedures, which is then used to construct an estimated time path for long-run equilibrium exchange rate values. Unit root tests indicated that each series can be considered as I(1) and that there was one cointegrating relationship linking the RMB series with its “fundamentals” – openness, money supply, productivity and government spending – with long-run elasticities of (0.41), (0.97), (0.51) and (0.75), respectively. The estimated error-correction model of REER determination showed that during China's latest exchange rate regime (from 2005:Q3) the RMB was undervalued by an average of 6.7 percent, which is modest compared to related studies. Estimation of the associated short-run error correction model shows that the error correction term has a statistically significant value of 0.85, implying that the actual real effective exchange rates would converge relatively quickly (just over one quarter, on average) towards their long-run equilibrium level in the absence of central bank intervention.





Categories: Asia, Economics

Can Asia sustain an export-led growth strategy in the aftermath of the global crisis? Exploring a neglected aspect

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Gonzalo Hernandez Jimenez , Arslan Razmi

Employing panel data for Asian countries to distinguish between different kinds of export- and tradable-led growth, we find that the proportion of a country's manufactured exports that is destined for industrialized countries, a variable largely ignored by existing studies, is robustly associated with growth. This finding has crucial implications given the expected deceleration of industrialized country import growth in the coming years. Most importantly, and contrary to some recent studies, prospects for continued growth, now centered on domestic tradable consumption or on developing countries as markets, may be limited. South–South trade may not be a good substitute for South–North trade.





Categories: Asia, Economics

Sources of spatial welfare disparities in Indonesia: Household endowments or returns?

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Emmanuel Skoufias , Sergio Olivieri

This article investigates (i) the extent to which the differences in the standard of living among districts in Indonesia are due to differences in the marginal welfare gains (returns) associated with household mobile endowments or differences in household endowments themselves; and (ii) whether the current allocation of fiscal expenditures by the central authorities is related to the main determinants of the spatial disparities in welfare among districts. Differences in the returns to household mobile characteristics are found to be the primary explanation of the welfare differences. The allocation of fiscal transfers to districts is found to be based on “needs” defined as low returns to household mobile endowments. This also suggests that the design of the fiscal transfer system is consistent with promoting the opportunities for welfare across districts as opposed to equalizing the level of welfare itself. Finally, the marginal welfare gains of most household mobile endowments are found to be higher in districts with more roads.





Categories: Asia, Economics

The determinants of Australian household debt: A macro level study

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Xianming Meng , Nam T. Hoang , Mahinda Siriwardana

This paper employs a cointegrated Vector Autoregression (CVAR) model to explore the determinants of Australian household debt. The results show that housing prices, GDP and the population in the economy have a positive effect on household borrowing. Meanwhile, interest rates, the unemployment rate, the number of new dwellings and inflation are found to have a negative effect on Australian household debt. Of these, interest rates are the most significant. Based on these results, it is judicious to rein in household debt during economic booms through monitoring and intervening in the assets market and using monetary policy in a timely, comprehensive, and careful manner.





Categories: Asia, Economics

Bank opacity, intermediation cost and globalization: Evidence from a sample of publicly traded banks in Asia

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Wahyoe Soedarmono , Amine Tarazi

This paper examines the relationship between opacity and the cost of intermediation in Asian banks. Using a sample of publicly traded commercial banks from 2002 to 2008, our empirical results show that higher opacity is associated with a lower intermediation cost in banking. Hence, bank managers in their efforts to overcome asymmetric information issues and to improve transparency tend to offset the higher cost of acquiring and disclosing information by increasing the cost of intermediation for entrepreneurs. Moreover, a deeper look at the country level indicates that the negative link between opacity and the cost of intermediation is reversed as globalization increases. Greater globalization therefore outweighs managerial entrenchment behavior to preserve bank opacity. Our findings highlight that bank opacity issues are even more costly in countries with higher globalization.





Categories: Asia, Economics

Family size, household shocks and chronic and transient poverty in the Philippines

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: December 2013
Source:Journal of Asian Economics, Volume 29

Author(s): Connie Bayudan-Dacuycuy , Joseph Anthony Lim

This research is one of the few attempts to analyze chronic and transient poverty in the Philippines. Results indicate that poverty in the Philippines is largely comprised of chronic poverty with households in rural areas and Mindanao regions being the most affected. Using quantile regressions, results show that both chronic and transient poverty are affected by negative shocks to households. Shocks in the labor market such as job loss or income reduction affect chronic poverty while natural disasters such as droughts affect transient poverty. Results also indicate that a higher dependency burden due to a large number of younger children positively affects chronic poverty but not transient poverty. Policy suggestions to lower both types of poverty in the Philippine context are provided.





Categories: Asia, Economics

Editorial Board

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: October 2013
Source:Journal of Asian Economics, Volume 28









Categories: Asia, Economics

ASEAN Regional Cooperation on Competition Policy

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: Available online 8 October 2014
Source:Journal of Asian Economics

Author(s): Cassey Lee , Yoshifumi Fukunaga

ASEAN member states intend to establish the ASEAN Community by 2015. A key component of this goal is the formation of the ASEAN Economic Community (AEC). The AEC Blueprint was initiated to facilitate and monitor the implementation of the AEC during the period 2008-2015. Competition policy will play an important role in the achievement of the AEC. There has been significant progress in regional cooperation to achieve the competition policy targets listed in the AEC Blueprint. Even though only half of AMSs have implemented competition laws, regional cooperation in this area has been fairly strong. The main emphasis has been on publishing regional guidelines and a handbook on competition policy in ASEAN as well as capacity building activities. There needs to be a renewed impetus to implement national competition laws in AMSs that have not done so. There also remain significant opportunities for enforcement cooperation and pooling of resources for capacity building in competition policy in the region.





Categories: Asia, Economics

The Impact of AFTA on Intra-AFTA Trade

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: Available online 8 October 2014
Source:Journal of Asian Economics

Author(s): Misa Okabe , Shujiro Urata

ASEAN countries have liberalized intra-ASEAN trade over the last 20 years by establishing the ASEAN Free Trade Area (AFTA). This paper aims to examine the impact of trade liberalization under AFTA on intra-ASEAN trade. By applying a gravity model, we find positive and significant trade creation effects from the tariff elimination for a wide range of products. In addition, the analysis reveals that the elasticity of tariff reduction on imports tends to be much larger than that on exports. Trade creation effects for the new ASEAN members are relatively small compared to those for the old members. Our results show that AFTA has been successful in promoting intra-AFTA trade, while we argue that further expansion may be achieved by increasing the use of AFTA and by reducing/removing non-tariff measures (NTMs) through such ways as improving customs procedures and harmonizing/mutually recognizing product standards.





Categories: Asia, Economics

Impact of Liberalization and Improved Connectivity and Facilitation in ASEAN

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: Available online 6 October 2014
Source:Journal of Asian Economics

Author(s): Ken Itakura

This study attempts to evaluate the potential economic effects of liberalization and improved connectivity and facilitation of trade in goods and services among the ASEAN member states (AMSs) by applying economy-wide simulation analysis based on a recursively dynamic computable general equilibrium (CGE) model. We conduct a set of simulations to capture the effects of establishing free trade agreements (FTAs) in which the AMSs participate. Three key components affecting the impacts of FTAs are reduction of tariffs on goods, lowering of barriers to trade in services, and saving time-costs arising from logistics. Simulation results revealed that reducing trade barriers has a significantly positive impact on economic welfare. Although there are differences in the magnitude of positive contributions to welfare, all of the FTAs in which the AMSs participate tend to raise welfare. Among the FTAs examined in this study, the Regional Comprehensive Economic Partnership (RCEP) leads to the largest positive effects on real GDP for most of the AMSs.





Categories: Asia, Economics

Does AFAS have Bite? Comparing Services Trade Commitments with Actual Practice

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: Available online 6 October 2014
Source:Journal of Asian Economics

Author(s): Philippa Dee

The paper reviews the commitments achieved so far in selected sectors under the ASEAN Framework Agreement on Services (AFAS), and compares these commitments with actual regulatory practice. The aim is to identify whether significant services trade liberalization has been achieved in reality, rather than merely on paper. The paper also identifies the sticking points, and assesses whether current services trade restrictions remain uncommitted because of sectoral sensitivities, features of the negotiating framework, or gaps in the broader regulatory environment. In each of the sectors examined, there are examples of all three problems. The paper concludes with suggestions for additional directions that could be taken and negotiating strategies that could be employed to deal with these problems, and thus accelerate the reform process towards an ASEAN Economic Community.





Categories: Asia, Economics

Editorial Board

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: October 2014
Source:Journal of Asian Economics, Volume 34









Categories: Asia, Economics

The Indonesian macroeconomy and the yield curve: A dynamic latent factor approach

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: October 2014
Source:Journal of Asian Economics, Volume 34

Author(s): Leslie Djuranovik

We develop a fine representation of the term structure of interest rates in Indonesia and create a link between the yield curve and macroeconomic fundamentals. We construct a state-space representation of the yield curve as a function of three time-varying parameters: level, slope, and curvature factors. The model is then expanded to include three macroeconomic variables: real activity, inflation, and interest rates. We find that the dynamic latent factor model provides a very good fit to characterise the Indonesian yield curve in terms of the statistical properties for each maturity, and in terms of the properties of three latent yield-curve factors. With regards to the relationship to the macroeconomy, we find that there is a large amount of idiosyncratic variation in the yield curve movements. Therefore, macroeconomic variables can only explain small dynamics in the yield curve.





Categories: Asia, Economics

Inflation dynamics and monetary policy transmission in Vietnam and emerging Asia

Journal of Asian Economics - Sun, 10/12/2014 - 11:23
Publication date: October 2014
Source:Journal of Asian Economics, Volume 34

Author(s): Rina Bhattacharya

This paper provides an overview of inflation developments in Vietnam in the years following the doi moi reforms, and uses empirical analysis to answer two key questions: (i) what are the key drivers of inflation in Vietnam, and what role does monetary policy play? and (ii) why has inflation in Vietnam been persistently higher than in most other emerging market economies in the region? It focuses on understanding the monetary policy transmission mechanism in Vietnam, and in understanding the extent to which monetary policy can explain why inflation in Vietnam has been higher than in other Asian emerging markets over the past decade.





Categories: Asia, Economics
Syndicate content

FutureofUSChinaTrade.com is a program of The Kearny Alliance