Pub Date : 2019-09-30DOI: 10.11644/kiep.eaer.2019.23.3.363
Jai-Young Choi,Eden S. H. Yu
{"title":"International Outsourcing, Unemployment and Welfare: A Re-Examination","authors":"Jai-Young Choi,Eden S. H. Yu","doi":"10.11644/kiep.eaer.2019.23.3.363","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.3.363","url":null,"abstract":"","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"8 1","pages":"261-284"},"PeriodicalIF":0.8,"publicationDate":"2019-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138496281","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-09-30DOI: 10.11644/kiep.eaer.2019.23.3.362
Pilar Poncela, Michela Nardo, Filippo M. Pericoli
This paper offers a comprehensive view of international risk sharing and of related policy issues from the perspective of the European Union. The traditional analyses contemplate three risk-sharing channels: the capital markets channel (through cross border portfolio investments), international transfers and the credit markets channel (via savings). Comparative analyses reveal that, on average, about 80% of the shock remains unsmoothed in Europe while only about 18% of the shock is transmitted to consumers within the US. From aggregated figures, there is space for improving, particularly, the cross-border investments channel in Europe. In this sense, the completion of the Banking and Capital Markets Union are expected to boost risk sharing across European member states. We also review new additional issues usually not contemplated by the traditional literature as depreciation, migration and the role of sovereigns and two new additional channels recently considered in the literature: government consumption and the real exchange rate. Finally, we also examine recent analysis related to the geographic distribution of risk sharing.
{"title":"A Review of International Risk Sharing for Policy Analysis","authors":"Pilar Poncela, Michela Nardo, Filippo M. Pericoli","doi":"10.11644/kiep.eaer.2019.23.3.362","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.3.362","url":null,"abstract":"This paper offers a comprehensive view of international risk sharing and of related policy issues from the perspective of the European Union. The traditional analyses contemplate three risk-sharing channels: the capital markets channel (through cross border portfolio investments), international transfers and the credit markets channel (via savings). Comparative analyses reveal that, on average, about 80% of the shock remains unsmoothed in Europe while only about 18% of the shock is transmitted to consumers within the US. From aggregated figures, there is space for improving, particularly, the cross-border investments channel in Europe. In this sense, the completion of the Banking and Capital Markets Union are expected to boost risk sharing across European member states. We also review new additional issues usually not contemplated by the traditional literature as depreciation, migration and the role of sovereigns and two new additional channels recently considered in the literature: government consumption and the real exchange rate. Finally, we also examine recent analysis related to the geographic distribution of risk sharing.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"9 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138496279","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-09-30DOI: 10.11644/kiep.eaer.2019.23.3.364
Gongpil Choi, Meeyoung Park
Unlike the popular belief, digital transformation mainly gets stymied by legal and regulatory issues related with legacy institutions in Asia rather than technical difficulties. The real challenges triggered by the PSD2 (Payment Services Directive 2) are how the region would overcome the overly fragmented, centralized, and hierarchical legacy framework to allow necessary changes to respond to the digital single market initiatives as promulgated by the European counterpart. The PSD2 is expected to bring about substantial changes in the payment ecosystem by allowing payment service providers to access customers’ accounts and transactions information via API that have been traditionally controlled by banks. This paper suggests an incentive-compatible mechanism design for open collaboration among legacy institutions in the region to help them adapt to the PSD2. As evidenced by case studies in Korea, the Asian equivalent of PSD2 can be implemented and further expanded to create region-wide PCS (payment-clearing-settlement) network by reconnecting the dots of legacy infrastructures. These decentralized, diverse, small payment networks can be further combined with the expanded RTGS-CDS platform to evolve into the next phase of Asian Financial Network.
{"title":"Reconnecting the Dots for the Payment Service Directive 2 - Compatible Asian Financial Network","authors":"Gongpil Choi, Meeyoung Park","doi":"10.11644/kiep.eaer.2019.23.3.364","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.3.364","url":null,"abstract":"Unlike the popular belief, digital transformation mainly gets stymied by legal and regulatory issues related with legacy institutions in Asia rather than technical difficulties. The real challenges triggered by the PSD2 (Payment Services Directive 2) are how the region would overcome the overly fragmented, centralized, and hierarchical legacy framework to allow necessary changes to respond to the digital single market initiatives as promulgated by the European counterpart. The PSD2 is expected to bring about substantial changes in the payment ecosystem by allowing payment service providers to access customers’ accounts and transactions information via API that have been traditionally controlled by banks. This paper suggests an incentive-compatible mechanism design for open collaboration among legacy institutions in the region to help them adapt to the PSD2. As evidenced by case studies in Korea, the Asian equivalent of PSD2 can be implemented and further expanded to create region-wide PCS (payment-clearing-settlement) network by reconnecting the dots of legacy infrastructures. These decentralized, diverse, small payment networks can be further combined with the expanded RTGS-CDS platform to evolve into the next phase of Asian Financial Network.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"8 2‐3","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138496280","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-09-30DOI: 10.11644/kiep.eaer.2019.23.3.365
Dimitrios Karkanis
Since China’s opening to international trade, the rapid growth of the country’s export sector has been coupled by an intensification of migratory outflows of ethnic Chinese. The literature has already stressed the beneficial role of migration in enhancing bilateral trade. The present paper applies a gravity model in order to capture the impact of migration on Chinese exports for a relatively long period of time (1995-2017) where significant developments take place. We estimated four regressions, each of them confirming the positive network effects of migration for boosting export growth. Apart from the main finding, it appears that the role of institutional and geographical proximity can prove to be complementary for trade enhancement. The results finally suggest mixed effects due to the countries’ import openness, indicating that China’s free trade agreements acts as a substitute for smoothing trade competition from third countries.
{"title":"International Migration and Export Flows: Evidence from the People’s Republic of China","authors":"Dimitrios Karkanis","doi":"10.11644/kiep.eaer.2019.23.3.365","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.3.365","url":null,"abstract":"Since China’s opening to international trade, the rapid growth of the country’s export sector has been coupled by an intensification of migratory outflows of ethnic Chinese. The literature has already stressed the beneficial role of migration in enhancing bilateral trade. The present paper applies a gravity model in order to capture the impact of migration on Chinese exports for a relatively long period of time (1995-2017) where significant developments take place. We estimated four regressions, each of them confirming the positive network effects of migration for boosting export growth. Apart from the main finding, it appears that the role of institutional and geographical proximity can prove to be complementary for trade enhancement. The results finally suggest mixed effects due to the countries’ import openness, indicating that China’s free trade agreements acts as a substitute for smoothing trade competition from third countries.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47747060","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-30DOI: 10.11644/KIEP.EAER.2019.23.2.360
Jaehan Cho, Z. Ge
Productivity in agriculture or services has long been understood as playing an important role in the growth of manufacturing. In this paper we present a general equilibrium model in which manufacturing growth is stimulated by non-manufacturing sectors that provides goods used in both research and final consumption. The model permits the evaluation of two policy options for stimulating manufacturing growth: (1) a country imports more non-manufacturing goods from a foreign country with higher productivity and (2) a country increases productivity of domestic non-manufacturing. We find that both policies improve welfare of the economy, but depending on the policy the manufacturing sector responses differently. Specifically, employment and value-added in manufacturing increase with policy (1), but contract with policy (2). Therefore, specialization of the import nonmanufactured goods helps explain why some Asian economies experience rapid growth in the manufacturing sector without progress in other sectors.
{"title":"Specialization, Firm Dynamics and Economic Growth","authors":"Jaehan Cho, Z. Ge","doi":"10.11644/KIEP.EAER.2019.23.2.360","DOIUrl":"https://doi.org/10.11644/KIEP.EAER.2019.23.2.360","url":null,"abstract":"Productivity in agriculture or services has long been understood as playing an important role in the growth of manufacturing. In this paper we present a general equilibrium model in which manufacturing growth is stimulated by non-manufacturing sectors that provides goods used in both research and final consumption. The model permits the evaluation of two policy options for stimulating manufacturing growth: (1) a country imports more non-manufacturing goods from a foreign country with higher productivity and (2) a country increases productivity of domestic non-manufacturing. We find that both policies improve welfare of the economy, but depending on the policy the manufacturing sector responses differently. Specifically, employment and value-added in manufacturing increase with policy (1), but contract with policy (2). Therefore, specialization of the import nonmanufactured goods helps explain why some Asian economies experience rapid growth in the manufacturing sector without progress in other sectors.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"1 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47536135","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-30DOI: 10.11644/kiep.eaer.2019.23.2.358
Gnanaraj Chellaraj,Aaditya Mattoo
{"title":"Estimating the Knowledge Capital Model for Foreign Investment in Services: The Case of Singapore","authors":"Gnanaraj Chellaraj,Aaditya Mattoo","doi":"10.11644/kiep.eaer.2019.23.2.358","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.2.358","url":null,"abstract":"","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"118 1","pages":"111-147"},"PeriodicalIF":0.8,"publicationDate":"2019-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138516902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-31DOI: 10.11644/kiep.eaer.2019.23.1.354
Jisong Kim, Nah Youn Lee
This study investigates the effect of high-skilled inventor emigration rate on growth rate of the country of origin (COO). Inventor emigrants represent the human capital that can generate highly innovative work. The social network they form spurs knowledge diffusion and technology transfer back to their COOs, which in turn affects innovation and growth in their home countries. We run dynamic panel estimation for 154 countries during 1990–2011, and empirically show that a positive and statistically significant effect exists for the interaction of inventor emigration and trade. The result indicates that the direct negative impact of the brain drain can be mitigated by the positive feedback effect generated by the high-skilled inventor emigrants abroad. When coupled with an active trade policy that reinforces growth, countries can partially recoup the direct effect of the human capital loss. We stress the importance of international trade for successful technology transfer to occur, and offer insights for policies that can utilize the benefits of the rich social network of their high-skilled emigrants.
{"title":"High-Skilled Inventor Emigration as a Moderator for Increased Innovativeness and Growth in Sending Countries","authors":"Jisong Kim, Nah Youn Lee","doi":"10.11644/kiep.eaer.2019.23.1.354","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.1.354","url":null,"abstract":"This study investigates the effect of high-skilled inventor emigration rate on growth rate of the country of origin (COO). Inventor emigrants represent the human capital that can generate highly innovative work. The social network they form spurs knowledge diffusion and technology transfer back to their COOs, which in turn affects innovation and growth in their home countries. We run dynamic panel estimation for 154 countries during 1990–2011, and empirically show that a positive and statistically significant effect exists for the interaction of inventor emigration and trade. The result indicates that the direct negative impact of the brain drain can be mitigated by the positive feedback effect generated by the high-skilled inventor emigrants abroad. When coupled with an active trade policy that reinforces growth, countries can partially recoup the direct effect of the human capital loss. We stress the importance of international trade for successful technology transfer to occur, and offer insights for policies that can utilize the benefits of the rich social network of their high-skilled emigrants.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"7 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138517186","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-31DOI: 10.11644/kiep.eaer.2019.23.1.357
Jang C. Jin
This paper ranks higher education in Korea based upon research productivity in business and economics disciplines. The number of SCI-level journal articles are tabulated using the Web of Science search engine, over the sample period from 1990 to 2016. The league table shows that many private universities dominate top-tier ranks, which is consistent with the school reputations most commonly cited by the general public in Korea. In contrast, many national universities appear in the second-tier, and their scanty performance in business and economics is in sharp contrast with our earlier findings in which national universities performed well in science and engineering fields (Jin and Kim, 2018). In addition, the ranking order in lower-ranked schools is found to be sensitive to a small change in publications, whereas the publication gap among top-tier schools is relatively large. Finally, unlike our general perception, the size of school does not matter for collaborative research. Some policy implications are discussed as a conclusion.
本文根据商业和经济学科的研究生产力对韩国高等教育进行了排名。使用Web of Science搜索引擎将1990年至2016年样本期间的sci级别期刊文章数量制成表格。排名显示，很多私立大学占据了前几名，这与韩国国民最常提到的学校声誉一致。相比之下，许多国立大学出现在二线，它们在商业和经济方面的薄弱表现与我们早期的发现形成鲜明对比，其中国立大学在科学和工程领域表现良好(Jin和Kim, 2018)。此外，排名较低的学校的排名顺序对出版物的微小变化很敏感，而排名靠前的学校之间的出版物差距相对较大。最后，与我们的普遍看法不同，学校的规模对合作研究并不重要。作为结论，讨论了一些政策影响。
{"title":"Research Productivity in Business and Economics: South Korea, 1990-2016","authors":"Jang C. Jin","doi":"10.11644/kiep.eaer.2019.23.1.357","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.1.357","url":null,"abstract":"This paper ranks higher education in Korea based upon research productivity in business and economics disciplines. The number of SCI-level journal articles are tabulated using the Web of Science search engine, over the sample period from 1990 to 2016. The league table shows that many private universities dominate top-tier ranks, which is consistent with the school reputations most commonly cited by the general public in Korea. In contrast, many national universities appear in the second-tier, and their scanty performance in business and economics is in sharp contrast with our earlier findings in which national universities performed well in science and engineering fields (Jin and Kim, 2018). In addition, the ranking order in lower-ranked schools is found to be sensitive to a small change in publications, whereas the publication gap among top-tier schools is relatively large. Finally, unlike our general perception, the size of school does not matter for collaborative research. Some policy implications are discussed as a conclusion.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"9 3","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138496360","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-31DOI: 10.11644/kiep.eaer.2019.23.1.356
Hoan Quang Truong, Chung Van Dong, Hoang Huy Nguyen
Our paper contributes to existing literature by empirically investigate the trade structure and trade performance between Korea and ASEAN. Overall, trade activities between Korea and almost major ASEAN economies have significantly focused on capital goods, medium and high technology goods, while the remaining ASEAN countries’ exports over Korea have been mainly primary and low technology goods. There has been a higher complementarity in between Korea’s exports and ASEAN’s imports compared with between ASEAN’s exports and Korea’s imports. Estimation results show that ASEAN’s GDP and income have larger impacts than those of Korea on aggregate trade flows as well as sectoral level between two sides. Additionally, geographical conditions are critical factors impeding Korea-ASEAN trade. Meanwhile, other factors in the estimation model have mixed impacts on components of Korea-ASEAN trade structure. Finally, there is a significant room for Korea’s trade expansion with ASEAN, particularly new and less developed members in future.
{"title":"Determinants of Trade Flows and Trade Structure between Korea and ASEAN","authors":"Hoan Quang Truong, Chung Van Dong, Hoang Huy Nguyen","doi":"10.11644/kiep.eaer.2019.23.1.356","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2019.23.1.356","url":null,"abstract":"Our paper contributes to existing literature by empirically investigate the trade structure and trade performance between Korea and ASEAN. Overall, trade activities between Korea and almost major ASEAN economies have significantly focused on capital goods, medium and high technology goods, while the remaining ASEAN countries’ exports over Korea have been mainly primary and low technology goods. There has been a higher complementarity in between Korea’s exports and ASEAN’s imports compared with between ASEAN’s exports and Korea’s imports. Estimation results show that ASEAN’s GDP and income have larger impacts than those of Korea on aggregate trade flows as well as sectoral level between two sides. Additionally, geographical conditions are critical factors impeding Korea-ASEAN trade. Meanwhile, other factors in the estimation model have mixed impacts on components of Korea-ASEAN trade structure. Finally, there is a significant room for Korea’s trade expansion with ASEAN, particularly new and less developed members in future.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"10 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2019-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138496359","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-12-31DOI: 10.11644/kiep.eaer.2018.22.4.351
Seongman Moon
We propose a simple identification scheme for the causes of the violations of uncovered interest parity. Our method uses the serial dependence patterns of excess returns as a criterion for judging performance of economic models. We show that a mean reverting component in excess returns, representing a violation of uncovered interest parity, mainly contributes to generating different serial dependence patterns of excess returns: rational expectations risk premium models tend to generate negative serial dependence of excess returns, while expectational errors models tend to generate positive serial dependence.
{"title":"Foreign Exchange Return Predictability: Rational Expectations Risk Premium vs. Expectational Errors","authors":"Seongman Moon","doi":"10.11644/kiep.eaer.2018.22.4.351","DOIUrl":"https://doi.org/10.11644/kiep.eaer.2018.22.4.351","url":null,"abstract":"We propose a simple identification scheme for the causes of the violations of uncovered interest parity. Our method uses the serial dependence patterns of excess returns as a criterion for judging performance of economic models. We show that a mean reverting component in excess returns, representing a violation of uncovered interest parity, mainly contributes to generating different serial dependence patterns of excess returns: rational expectations risk premium models tend to generate negative serial dependence of excess returns, while expectational errors models tend to generate positive serial dependence.","PeriodicalId":41122,"journal":{"name":"East Asian Economic Review","volume":"15 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2018-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138542689","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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