Saving,investment, and capital mobility among OECD countries

Historically investigations of the international mobility of capital have studied rates of return on similar assets denominated in different currencies. Recently, however, efforts directed at ascertaining the degree of international capital mobility have examined the relationship between domestic saving and investment rates. The first approach assesses the mobility of groups of financial assets which represent the existing capital stock while the latter actually scrutinizes the mobility of new physical capital.This paper employs the second approach in a times series study of capital mobility among OECD countries. Implementation of four different tests of the saving-investment relationship suggest that physical capital is more mobile than previous studies have indicated.     

Saving,investment, and capital mobility: A comment on Leachman

In this note we use a consistent long-run data set recently published by Maddison (1991) for 10 countries to examine the long-run relationship between saving and investment. In contrast to recent findings of Leachman (1991) we conclude that saving and investment are cointegrated in many countries. Our results suggest that aggregate demand and supply shocks explain much of the time series correlation between total saving and investment.     

Savings,investment, and capital mobility within China

This paper addresses the capital mobility among regions within China. Using a range of panel estimators which deals with the non-stationarity of time series components, individual heterogeneity and common unobserved factors, we show that the savings and investment (both expressed as ratios to GDP) are positively correlated for a sample of 28 Chinese provinces over the period of 1978 to 2006. According to the Feldstein-Horioka's argument (1980, Economic Journal (90), pp.314–329), such a correlation can be interpreted as evidence of low capital mobility. In addition, by means of Granger causality test, we fail to provide consistent evidence to support the hypothesis of efficient capital allocation in China. Combining the results given above, it is believed that the capital may be inefficiently retained within the provincial confines. We conjecture that the intermarriage between financial power and local authorities is primarily responsible for this worrying phenomenon.     

International monetary transmission in East Asia: Floaters,non-floaters,and capital controls

This paper analyzes the impacts of the United States (US) monetary shocks on East Asian countries using structural vector-autoregression (VAR) model. We find that the impacts of the US monetary shocks on East Asian domestic interest rates and exchange rates contradict conventional wisdom. The conventional exchange rate channel is unlikely to play much role in the transmission of the US monetary policy shocks to floaters in East Asian countries, excluding Japan. In these countries, the domestic interest rates respond strongly to the US interest rate changes, by giving up monetary autonomy, probably because of fear of floating. However, the domestic interest rate does not respond much in countries with fixed exchange rate regimes and capital account restrictions, such as China and Malaysia. This may suggest that the countries with fixed exchange rate regimes enjoy a higher degree of monetary autonomy, most likely with the help of capital account restrictions.     

Vertical intra-industry trade and foreign direct investment in East Asia

As economic integration in East Asia progresses, trade patterns within the region are displaying an ever-greater complexity: Though inter-industry trade still accounts for the majority, its share in overall trade is declining. Instead, intra-industry trade (IIT), which can be further divided into horizontal IIT (HIIT) and vertical IIT (VIIT), is growing in importance.In this paper, we set out to measure and examine vertical intra-industry trade patterns in the East Asian region and compare these with the results of previous studies focusing on the EU, to which such analyses so far have been confined. Based on the supposition that VIIT is closely related to offshore production by multinational enterprises, we then develop a model to capture the main determinants of VIIT that explicitly includes the role of FDI. The model is tested empirically using data from the electrical machinery industry. The findings support our hypothesis, showing that FDI plays a significant role in the rapid increase in VIIT in East Asia seen in recent years. J. Japanese Int. Economies 17 (4) (2003) 468–506.     

秦东民间资本投资环境问题及改善思路

秦东地区民间资本投资环境存在诸多问题,良好的投资环境是促进秦东民间资本投资发展和经济水平提升的重要保障。通过分析秦东地区目前民间资本投资环境的问题,进而提出可行性对策,才能为秦东民间资本投资环境的改善提供良好的契机。     

Foreign direct investment and growth in East Asia: lessons for Indonesia

Foreign direct investment (FDI) has been important in the growth and global integration of developing economies. Both Northeast and Southeast Asia, especially the latter, have been part of this development, with increasing inflows of FDI and greater foreign participation in local economies. However, Indonesia has been an outlier within the region. Inflows of FDI have been lower to Indonesia than to other countries, especially in manufacturing, and they have been lower than could be expected from Indonesia's size, population and other country characteristics. We show that the inflows that have occurred have benefited Indonesia, and use the East Asian experience to identify measures that are likely to increase these flows. A relatively poor business environment, inefficient government institutions, low levels of education and poor infrastructure all seem to be important explanations for the low inflows of FDI to Indonesia.     

东亚经济的国际竞争力分析

东亚的一些国家和地区在经济高速增长的同时，国际竞争力也在日益增强，近年来在全球竞争力排行榜上的地位相当突出。以定期公布国际竞争力排名的权威性机构-国际管理开发学院（International Institute for Management Development,IMD)和世界经济论坛（World Economic Forum,WEF)的排名来看，新加坡和中国香港已与美国一样地名列前茅，中国台湾，马来西亚也都有较好的表现，然而东亚经济中菲律宾和印尼的竞争力仍相对落后，韩国也未能达到其应有的水平，此外亚洲金融危机也使泰国等一些国家和地区的国际竞争力深受影响，因此本文对新加坡，中国香港、中国台湾、韩国、马来西亚，泰国、菲律宾等印尼这8个具有相似特征的东亚国家和地区的国际竞争力进行比较和分析。并且针对东亚经济的特点提出综合部分力与出口竞争力的概念。     

全球经济失衡态势下的东亚地区资本流动

在全球经济失衡背景下,东亚地区的资本流动呈现出与以往完全不同的特征,一方面是私人资本不断流入东亚地区且结构均衡,另一方面是大量的资本又从官方储备以购买美国国债的渠道流出东亚地区。今后东亚地区的这种资本流动将受到官方外汇储备变动、美国利率的变化、美元贬值、东亚汇率及其制度的调整等因素的影响。     

Exporting, capital investment and financial constraints

Many firms cite financial constraints as some of the most important impediments to their investment and growth. Using a unique data set from the Czech Republic this paper investigates the importance of financing constraints in the context of exporters. It finds that exporters are less financially constrained than non-exporters. However, after carefully correcting for possible endogeneity and selection issues, the evidence points to less constrained firms self-selecting into exporting rather than exporting alleviating firms’ financial constraints.     

亚太地区国际资本流动的主要特点

20世纪50年代以来，亚太地区各经济体充分利用外国资本发展本国（地区）经济，取得了显著的效果，也促进了本地区的国际资本流动规模，提高了本地区在国际资本流动中的地位。本文将二战后亚太地区的国际资本流动划分为四个阶段，探讨了各个阶段国际资本流动的主要特点。     

The effect of exchange rate volatility on international trade in East Asia

In this paper, we empirically investigate the relationship between exchange rate volatility and international trade, focusing on East Asia. Our findings are summarized as follows: first, intra-East Asian trade is discouraged by exchange rate volatility more seriously than trade in other regions. Second, one important source of the discouragement is that intermediate goods trade in international production networks, which is quite sensitive to exchange rate volatility compared with other types of trade, occupies a significant fraction of East Asian trade. Third, the negative effect of the volatility is greater than that of tariffs and smaller than that of distance-related costs in East Asia.     

Home-product bias, capital mobility, and macroeconomic volatility

This paper uses a dynamic general equilibrium two-country optimizingmodel to analyse the consequences of international capital mobilityfor macroeconomic volatility. To this end, the dynamic macroeconomiceffects of a monetary policy, a fiscal policy, and a labor supplyshock are analysed. Simulations are used to analyse the implicationsof changes in the degree of capital mobility for the propagationof shocks. The simulation results obtained for a bond economyare compared with the simulation results obtained for a complete-marketeconomy. It is shown that allowing for a home-product bias inpreferences has a number of interesting implications for theway changes in international capital mobility and in the structureof international financial markets affect how shocks propagatethrough an open economy.     

Empirical study on intra-regional bond investment: an application to East Asia

Since the 1997 Asian financial crisis, bond market development has been one of the central pillars of financial cooperation in East Asia, with concerted efforts made by the East Asian economies to integrate regional bond markets. As a result, aggregate intra-regional bond investment expanded from US$49.56 billion in 2003 to US$352.18 billion in 2017. This paper examines the pattern and determinants of intra-regional bond investment in East Asia. We analyse regional foreign holdings of long-term and short-term bonds in eight East Asian economies. Bond market size turns out to be the main concern of regional foreign investors participating in East Asian long-term bond markets. This analysis also highlights the importance of bond issuance and bond yield volatility in attracting regional foreign short-term bond investment. Therefore, initiatives to improve regional bond market development may be crucial to stimulating intra-regional bond investment and in turn enhance East Asian financial stability.     

东亚各国的储蓄、投资和资本流动性——基于面板协整分析

本文在对Feldstein-Horioka之谜及其相关研究的基础上,以东亚各国作为研究对象,利用各国1987-2006年的年度数据,通过建立、估计和检验面板协整模型,考察各国储蓄-投资之间的相关性,从而度量国际资本流动性。研究结果表明:东亚各国的国内储蓄和投资之间相关性要高于OECD国家,而资本流动性要低于OECD国家。     

The role of production fragmentation in international business cycle synchronization in East Asia

This paper analyzes factors contributing to the observed increase in international business cycle synchronization between eight East Asian developing countries and the major developed economies of Japan and the United States. To this end, a two-country dynamic general equilibrium (DGE) model is proposed which focuses on the role of production fragmentation among these countries. A key feature of the model is that it includes the trade in differentiated capital goods, which are added to the capital stock for production, and the technology embodied in these capital goods. The parameters of the model are calibrated using actual data of the countries included. Model simulations are conducted for two periods (1993–1997 and 1999–2005), before and after the Asian financial crisis, showing that the increase in business cycle synchronization can be attributed mainly to the growing fragmentation of production activities.     

Health investment,physical capital accumulation,and economic growth

This paper analyzes the effect of health investment, and hence of health capital, on physical capital accumulation and long-run economic growth in an extended Ramsey model with an Arrow–Romer production function and a Grossman (1972) utility function. The paper concludes that economic growth is related to both the health growth rate and the health level. While growth in health capital always facilitates economic growth, the gross effect of health level on the rate of economic growth depends on how it affects physical capital accumulation. If the negative effect of health on economic growth through its influence on physical capital accumulation is not taken into consideration, then health level has a positive effect on the rate of economic growth by improving the efficiency of labor production. However, since health investment may crowd out physical capital investment and thus influence physical capital accumulation, excessive investment in health may have a negative effect on economic growth. Empirical tests of these theoretical hypotheses using panel data from individual provinces of China produce results that are consistent with our theoretical conclusions.