Economists increasingly stress the importance of investment in intangibles such as human and knowledge capital as a way to stimulate economic growth. This column examines how intangibles contribute to economic growth in Japan and Korea. Though intangible investment has increased in both countries in recent decades, the amount of tangible investment has been greater. This is different from what is observed in western advanced economies, which can be explained by the less developed financial markets in eastern Asia.
Hyunbae Chun, Tsutomu Miyagawa, Hak K. Pyo, Konomi Tonogi, Friday, October 9, 2015 - 00:00
Joshua Aizenman, Yothin Jinjarak, Donghyun Park, Saturday, February 14, 2015 - 00:00
Matthias Helble, Boon-Loong Ngiang, Monday, September 8, 2014 - 00:00
Ayako Saiki, Sunghyun Henry Kim, Sunday, February 2, 2014 - 00:00
Before the introduction of the euro, it was hoped that by promoting increased intra-regional trade it would increase business-cycle synchronisation within the Eurozone, and thus help it to fulfil the criteria for an optimum currency area. This column presents recent research that compares the evolution of business-cycle synchronisation in the Eurozone and east Asia. While the euro has had some impact on business-cycle synchronisation in the Eurozone, it has done so not through increased intra-regional trade intensity, but rather through some other channel – most likely financial integration.
Philipp Hühne, Birgit Meyer, Peter Nunnenkamp, Wednesday, July 31, 2013 - 00:00
One of the few areas where multilateral trade talks are making progress is the so-called Aid-for-Trade Initiative designed to remove frictional barriers to trade such as in transportation, communication and energy infrastructure. This column discusses research suggesting that both donors and recipients benefit from the aid. Aid-for-Trade, however, seems to best promote the exports of middle-income countries rather than, for instance, sub-Saharan African ones.
Pradumna B. Rana, Chia Wai Mun, Monday, April 1, 2013 - 00:00
The global economy was once dominated by north-north relations, with some limited concern for north-south relations. This column argues that south-south economic relations now matter and explains what new ‘look east’ policies that are being implemented in south Asia mean for the global south and the global economy.
Ganeshan Wignaraja , Thursday, February 21, 2013 - 00:00
Until 2012, the past decade saw Indonesia’s growth maintain a respectable momentum. This column argues that recent hints of political dirigisme presents Indonesia with a stark development choice. Policymakers can continue their tightening of political control – staving off the trade effects of a global crisis in the run up to elections next year – or they can orient the economy outward, with complementary policies to sustain long-term growth.
Alicia García-Herrero, Tuuli Koivu, Friday, April 16, 2010 - 00:00
If China’s currency does appreciate, what impact will it have? This column argues that while Chinese exports will fall, so will Chinese imports, because China imports components from other East Asian countries that are then processed before being exported to western markets. A 10% rise in the renminbi would reduce imports of components by 6%.
Joshua Aizenman, Monday, November 30, 2009 - 00:00
The spectacular increase in hoarding of international reserves by emerging markets since the East Asian crisis has been one of the defining features of global imbalances. This column explores lessons from the crisis regarding alternatives to massive hoarding. It says that the crisis validates the need for external debt management policy and that the presence of fire-sale externalities associated with deleveraging, optimal external borrowing-tax cum international reserves hoarding-subsidy reduces the cost and the scale of hoarding international reserves.
Masahiro Kawai, Ganeshan Wignaraja , Tuesday, September 15, 2009 - 00:00
East Asian economies adopted numerous preferential trade agreements over the last decade. This column summarises the results of a survey of firms in the region examining the effects of those trade deals. The region’s exporting manufacturers largely view trade preferences positively, though further policy action is needed to maximise the potential benefits.
Peter Drysdale, Hadi Soesastro, Tuesday, April 7, 2009 - 00:00
This column says the G20 summit was a remarkable event as leaders crafted a coherent set of strategies to address the crisis. The Asian participants emerged as a constructive force, agreeing to expand their role in IMF funding and governance, ease the trade credit bottleneck, and advocate the standstill on trade barriers.
Hadi Soesastro, Tuesday, March 10, 2009 - 00:00
The G20 has stepped up to provide political guidance to global economic governance. This column argues that East Asian members should embrace a pro-active role aimed not only at securing their role in global economic governance but also at increasing East Asia’s effectiveness in projecting the region’s strategic efforts towards global economic recovery.