Capital Inflows and the Real Exchange Rate: A Comparative Study of Asia and Latin America

The nexus of real exchange rate (RER) and capital inflows is examined through a comparative analysis of the experiences of emerging market economies in Asian and Latin America during the period 1985‐2000. It is found that the degree of appreciation in RER associated with capital inflow is uniformly much higher in Latin American countries compared to their Asian counterparts, despite the fact that the latter experienced far greater foreign capital inflows relative to the size of the economy. The econometric evidence suggests that both the composition of capital flows and differences in the degree of response of RER to capital flows matter in explaining these contrasting experiences. While RER appreciation is a phenomenon predominantly associated with other (non‐FDI) forms of capital inflows (OCFW), a given level of OCFW brings about a far greater degree of appreciation of the real exchange rate in Latin America where the importance of these flows in total capital inflow is also far greater. On the policy front, Asian countries seem to have used fiscal contraction and nominal exchange rate adjustment more effectively to cushion the RER against the appreciation pressure of capital inflows. There is, however, no evidence to suggest that sterilised intervention can generate a lasting impact on the real exchange rate.     

Can the Japanese Economy Rebound?

The Japanese economy has begun to show signs of recovery from its deepest post WWII recession. Although it is generally acknowledged that the recovery is not based on solid foundations, there is elation within Japan regarding the prospects for renewed economic growth. Yet little or no attention seems to be paid to what is happening to Japanese technological innovation, the engine that drives growth. The article shows that the impressive technological excellence of the famed Japanese companies is simultaneously accompanied by a decline in overall Japanese technological innovation. This is attributed to the dual nature of the Japanese economy, where super‐strong exporting industries co‐exist with super‐weak domestic sectors, and to Japan's adherence to outdated perceptions and policies. However, the potential for recovery is within reach: galvanise the backward leg of the dual economy and healthy growth would ensue; restore confidence in the healthy leg and things would be better still; add to this a recipe for responsible macroeconomic management and the prospects would be rosier.     

EFFECT OF IT JOB TRAINING ON EMPLOYMENT AND WAGE PREMIUM: EVIDENCE FROM KOREA PANEL DATA

In this paper, we examine whether IT job training raises the probability of getting employed and enables the trainee to obtain a high wage. In this paper, it is reported that, in the Republic of Korea, IT job training as a whole affects not only employment but also wage premium, even though the effect on wage premium is somewhat less conspicuous. In particular, the intensity of IT job training is more instrumental in the opportunity of getting employed than simply whether receiving IT job training or not. This effect is intensified in the low‐education group. In this group, the probability for the persons who undergo IT job training for more than six months of getting employed is higher than that for a person without any job training. Additionally, provision of IT job training by a private institute and cost sharing with the government enhances the opportunity of employment.     

Competence‐based management development in small and medium‐sized enterprises: a multi‐stakeholder analysis

Small and medium‐sized enterprises (SMEs) are considered increasingly important for economic growth (Wilson, 1995) and effective management of them is regarded as essential for their survival and success (Jennings and Beaver, 1995). This study adopted a multi‐stakeholder perspective in order to explore the promotion, via Training and Enterprise Councils (TECs); provision and (potential for) purchase of competence‐based management training and development (MTD) in the SME sector in the United Kingdom. Survey data from (551) and interviews with (12) SMEs; plus interviews (6) with TECs and interviews (29) with providers of MTD are reported. ‘Product’ deficiencies in competence‐based MTD are identified and recommendations for promotion made.