Developing Asia's New Sovereign Wealth Funds and Global Financial Stability
Sovereign wealth funds (SWFs) and their investment activities have emerged as one of the most controversial issues in international finance. As their name implies, SWFs are characterized by two defining qualities - ownership and control by the government, and pursuit of high risk-adjusted returns as the central objective. Although the term SWF was coined only 3 years ago by Rozanov (2005), these funds have actually been around for quite some time. The oldest SWF, the Kuwait Investment Authority, goes all the way back to 1953.
Effects of Hub-and-Spoke Free Trade Agreements on Trade: Panel Data Analysis
This study investigates the effect of hub-and-spoke free trade agreements (FTAs) on trade using panel data. It finds that hub-and-spoke FTAs increase trade above and beyond FTAs.
Prospects of an ASEAN-People's Republic of China Free Trade Area: A Qualitative and Quantitative Analysis
As a vehicle to promote trade between the Association of Southeast Asian Nations (ASEAN) and the People’s Republic of China, this paper assesses the prospects of the ASEAN–People’s Republic of China Free Trade Area (ACFTA).
Capital Outflows, Sovereign Wealth Funds, and Domestic Financial Instability in Developing Asia
This paper points out that developing Asia’s new sovereign wealth funds face a wide range of downside risks. The realization of those risks may have serious adverse repercussions for the balance sheets of regional commercial banks.
Globalization, Erosion of Tax Base, and the Revenue Potential of Developing Asia's Foreign Exchange Reserve Build-Up
Global tax competition is eroding the tax bases of governments. In developing Asia, this paper notes that one potential source of nontax fiscal revenues is investment income from surplus foreign exchange reserves.
Inflation in Developing Asia: Demand-Pull or Cost-Push?
Developing Asia's current inflation surge is largely homegrown and due to excess aggregate demand and inflation expectations, rather than external commodity price shocks. The region can and should use monetary policy to tame inflation.
Productivity and Employment in a Developing Country: Evidence from Republic of Korea
This paper finds that productivity-enhancing technology shocks have a significant positive effect on employment in the Republic of Korea. Supply-side policies that promote technological progress and innovation should be given higher priority.
Beyond Liquidity: New Uses for Developing Asia's Foreign Exchange Reserves
This paper aims to explain the context within which developing Asia could use its foreign exchange assets in new ways so that these can contribute more effectively to the region’s growth, development, and welfare.
Could Imports be Beneficial for Economic Growth? Some Evidence from Republic of Korea
This study uses data from the Republic of Korea, a classic export-driven economic growth example in East Asia, to empirically investigate the relationship between imports and productivity growth.
An Empirical Analysis of East Asia's Pre-crisis Daily Exchange Rates
This paper confirms that the exchange rate peg to the United States dollar is widely believed to have been a major cause of the Asian financial crisis of 1997–1998.