A Roadmap for Policy Dialogue and Economic Surveillance in East Asia

I. IntroductionOn 4th May, 2005, the Association of Southeast Asian Nations, China, Japan and Korea(ASEAN+3) decided to take a significant step toward financial cooperation in East Asia.The Finance Ministers of the 13 ASEAN+3 countries agreed to strengthen the Chiang MaiInitiative (CMI) into a more effective and disciplined framework by: (1) integrating the CMIwith an enhanced economic surveillance process for the ASEAN+3 countries; (2) adoptinga collective activation and decisio…     

The Analysis on the Process of Organization Transformation through Knowledge Convening ＆ Fermenting Model

The complex and flexible environment that organizations tace now is never seen betore, and the ability of radical transforming is becoming absolutely necessary to an organization. The organization transformation process is also anatomized here by means of ＂knowledge convening ＆ fermenting model＂. In the knowledge-based economy times, organization transformation must focus on the knowledge management and the acquirement of the knowledge employees. Through the ＂knowledge convening ＆ fermenting model＂, we put forwards the system thinking way of organization transformation. The key point of organization transformation is reconsidering, and the thinking of the knowledge carriers obtaining is widened by the definition of ＂knowledge matrix＂, so the leader should do well in the reconsidering during the process of the organization transformation, confirming the organization＇s development direction, searching for the knowledge matrix, meanwhile, he also should be good at the creation of the favorable knowledge innovation environment for knowledge employees.     

Financial crisis and saving–investment dynamics in the presence of cross-sectional dependence: The case of East Asia

Using the common correlated effects mean group (CCEMG) technique to a set of balanced panel error correction model, we examine the effects of the Asian financial crisis of 1997, and the global financial crisis of 2008 on the behavior of saving and investment in East Asian countries. Our results show that saving and investment rates are highly dependent across countries of East Asia. This finding underlines the importance of taking into account cross-sectional dependence when analyzing saving–investment relationship. The results also indicate that the adverse financial shock of 1997 has negatively affected the short run correlation between saving and investment, but has not influenced their long run relationship. Our finding, hence, verifies the prediction of new open economy macroeconomic theories regarding the divergence of short run saving–investment from its long run trend for East Asia. Moreover, we find that the global financial crisis of 2008 has not affected the saving–investment dynamics in this region. It means that the consequences of the Asian and global financial crises for saving–investment dynamics are not the same in East Asia. One might attribute these differences to the origins of these two shocks, i.e., internal versus external to the region. These findings may have some policy implications for those countries that rely heavily on foreign investment and are subject to various internal and external financial shocks.     

Should East Asia’s currencies be pegged to the yen? The role of invoice currency

Growing concern that a dollar peg exposes East Asian economies to fluctuations in the dollar–yen exchange rate has stimulated research on currency basket regimes as alternatives for these economies. However, existing studies have mostly ignored an important characteristic of East Asia, i.e., most of its international trade is invoiced in the U.S. dollars. This paper investigates how the preponderance of dollar invoicing affects optimal currency basket regimes for East Asian economies. I develop a three-country center-periphery sticky-price dynamic stochastic general equilibrium model for the analysis. The model is solved numerically by taking second-order approximations to the policy functions with the expected lifetime utility of households chosen as the welfare criterion. Contrary to the conjecture of existing literature, I show that predominance of dollar invoicing implies that the dollar should receive a smaller weight than suggested by bilateral trade shares between emerging markets in East Asia and the United States. The results hinge on the interaction of different degrees of pass-through implied by the choice of invoice currency and endogenous responses of monetary policies in the center countries.     

The Relationship of Network Economy and Economic Growth

This paper begins with the characteristics of network economy, theoretically analyzes how networks change economic growth mode, then illustrates how networks promote it thus achieving dynamic equilibrium of national economy consequently.     

The Cost of Intra-firm Transaction and Organization of Economic Activities

The internal market transaction and the external market transaction have quite different characteristics. The cost of internal market transaction is decided by the inspection cost within a firm, while the inspection cost is mainly decided by the rationality of procedures assessing simple labor in a firm and the fairness in fixing every coefficient.     

Impact of Globalization on Economic Disparity：Comparisons between Southeast Asia and China

This paper studies the issue of develop ment disparity and its relationship to the effect ofglobalization by comparing the cases of selected South-east Asian countries and China.Policy recommenda-tions are made based on our analysis.     

Is an Optimum Currency Area Feasible in East and South East Asia?

Abstract

In the backdrop of the recent economic crisis in the European Union, this study attempts to assess the degree of regional integration and the suitability of a monetary union in the East and South-East Asian (ESEA) region. For this purpose, we analyse the issue in a variety of ways. First, a long-run linkage of real output of the countries is tested using the cointegration analysis. Results suggest that real output of most of the countries in the region is cointegrated and move together in the long-run. To analyse the issue in detail, we focus on the impact of three different shocks, namely global, regional and country-specific, on real output of the countries. Results of impulse response and variance decomposition analysis reveal that regional shocks do not dominate in the sample countries, which is an indication of unfavourable condition to form an optimal currency area (OCA) in the region. These results are further confirmed by the outcome of computation of the modified Bayoumi and Eichengreen's Indices. Finally, we employ the concept of Generalized Purchasing Power Parity (G-PPP), which however reveals that the bilateral real exchange rate of ESEA countries move together in the long-run and share a common stochastic trend, which in turn provides some empirical support for an OCA in the region.     

Economic Cooperation Organization Member Countries＇ Economic Development： The Importance of Assessing Technoparks

Advanced technologies in the world, especially in the last quarter century of rapid change, radical innovation were required to compete in important decisions, triggered by the national network of cooperation structures which is a very significant changes in participates in the regional country or new technology generation and transfer systems to be released; starting from the most basic research on the effect of knowledge production, commercialization, distribution of the total well-being of society is an important dating ＂shining knowledge value chain＂. This important change has become the main formative element of the economies. Recent advances in the knowledge economy and the resulting new strategic theories, knowledge, technology transfer, and increased mobility at the long distances, the concept of regional development is a brand new technological cooperation aims and information focusing on the transformation processes of growth of the economies of developed nations, which is the most important technological innovation in the vision of the economic development advanced plays an important role, evolving processes trigger in all aspects of the right to read most threats and opportunities that might be the best analysis, by passing the appropriate policies for countries in their visions, and entrusted a vital importance. In this context, Azerbaijan, Turkey, Afghanistan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Yajikistan, Yurkmenistan, and Uzbekistan in addition to research, technology development and production partner countries＇ and these countries sharing innovation structures with R＆D Center in technoparks and to serve together in the development of the total synergies ＂of the economic cooperation organization＂.     

The Development of TV ＆ Internet in China

By reviewing the historical development process of TV ＆ Internet and comparing the different characteristics and functions of the two most important mass media in the 21st century, the paper focuses on the crucial competition and challenge between them and then puts forward some constructive innovation strategies on how to manage and develop the two mass media more effectively and more harmoniously for a wide and prosperous future.     

The determinants of bilateral FDI: Is Asia different?

Intra-Asian foreign direct investment (FDI) is dominated by flows from high technology economies to medium technology economies, while FDI elsewhere primarily consists of flows among high technology economies. This distinctive pattern is not due simply to differences in the relative distribution of Asian FDI recipients by technology, or to systematic differences in Asia's technology characteristics. A gravity model analysis is used to explore whether Asian FDI patterns differ significantly from those elsewhere, and if so, in what ways. The results show that Asian FDI flows, in contrast to other FDI flows, systematically favor hosts with relatively low technology achievement and relatively strong intellectual property rights regimes. This type of “Asian exceptionalism” is consistent with “flying geese” theories that have argued that Asian development is the result of technology flows among economies that occupy nearby rungs of the technology ladder.     

An Empire of Wealth：The Epic History of American Economic Power

From the publish.Throughout time, from ancient Rome to modern Britain, the great empires built and maintained their dominion through force of arms and political power over alien peoples. In this illuminating work of history, John Steele Gordon tells the extraordinary story of how the United States, a global power without precedent, became the first country to dominate the world through the creation of wealth.The American economy is by far the world‘s largest,but it is also the most dynamic and innovative. The nation used its English political inheritance, as well as its diverse, ambitious population and seemingly bottomless imagination, to create an unrivaled economy capable of developing more wealth for more and more people as it grows.     

The Impact of Economic Development on Higher Education in China

I. IntroductionThe development of higher education in China is relatively new in comparison to that inwestern countries; so far it only has a history of over one hundred years. The first institutionsof higher education in China were Jingshi Tongwen House and Zhongxi School. JingshiTongwen House was established in 1862 in Beijing and Zhongxi School was established in1895 in Tianjin. During modern times, they can be regarded as a primitive form of Chinascolleges and universities. In 18…     

Does East Asia Have a Working Financial Safety Net?

Financial safety nets in Asia have come a long way since the Asian financial crisis (AFC) of 1997/1998. With Asian countries not wanting to rely solely on the IMF again, the Chiang Mai Initiative (CMI) was created in 2000. When the CMI also proved inadequate following the global financial crisis, it was first multilateralized (CMIM), and then doubled in size to US$240bn, while the IMF de‐linked portion was increased to 30 percent of the available country quotas. A surveillance unit, the ASEAN+3 Macroeconomic Research Office, was set up in 2001. These are impressive developments, but are they enough to make the CMIM workable? Without clear and rapid‐response procedures to handle a fast‐developing financial emergency, we argue that it is unlikely that the CMIM will be used even as a complement to the IMF. To serve as a stand‐alone option, however, its size or the IMF de‐linked portion of funds needs to be further increased, as does its membership, to add diversity. Only if the ASEAN+3 Macroeconomic Research Office can develop into an independent and credible surveillance authority would it then perhaps be in a position to lead the next rescue.     

Several Queries about the Weston Model of Valuation in M ＆ A

Weston model supposes ＂Income after tax will grow at the same velocity as sales and capital＂. However, due to the inappropriate forecast procedure, the forecast results of several significant parameters contradict to the assumption and the change for value can＇t be calculated properly when making the sensitivity analysis. On the other hand, the model supposes that ‘＂There is no growth since N＋1 year＂, but this disagrees with the DCF （discounted cash flow） formula under the zero growth after supernormal increasing period and it will overestimate the corporation value.     

Exploring dimensions of regional economic integration in East Asia: More than the sum of its parts?

No single measure of real or financial integration sufficiently captures all of the salient characteristics of the extent of integration between individual economies and of economies within particular regional groups. This paper introduces the idea of utilising and combining the effects of a number of individual measures of integration and, in doing so, presents an assessment of the stylised facts around bilateral and regional real and financial integration for the ASEAN5 and the large industrial Asian countries for the period 2000–2009. By using many measures, one should be able to achieve two objectives. The first is to capture many of the main attributes of integration in order to further provide insight into the integration landscape in East Asia. The second is to investigate which individual (if any) measure drives the overall level of integration and, as such, address the question of what might be the possible sources of integration between countries in the region. This has significant policy implications about how to best target policies of liberalisation in both goods and financial markets as well as informing the ongoing debate about optimal currency areas (OCA) and a possible monetary union in Asia.