The transition from relation-based to rule-based governance in East Asia

2019 ◽  
Vol 14 (1) ◽  
pp. 171-186 ◽  
Author(s):  
Shaomin Li ◽  
Seung Ho Park ◽  
Rosey Shuji Bao
Keyword(s):  
South Korea ◽  
East Asian ◽  
World Market ◽  
Asian Countries ◽  
Governance System ◽  
Rule Based ◽  
Content Type ◽  
Asian Economies ◽  
Substantial Progress ◽  
East Asian Economies

Purpose The purpose of this paper is to use the framework of rule-based and relation-based governance to examine the evolution of governance environment in the East Asian region including China, South Korea and Taiwan. Design/methodology/approach Both qualitative and quantitative evidences are presented to demonstrate the paths these East Asian countries take in their transitions from relation-based governance to rule-based governance. Based on the framework, this analysis sheds light on the debate on whether East Asian economies will eventually move away from relation-based governance to rule-based societies. Findings The authors find that relation-based governance has helped East Asian countries achieve rapid economic growth in the early stages of their development. However, as the scale and scope of East Asian economies expand, continuing to rely on it may hinder their further development and therefore these countries should adopt a rule-based governance system in order to be efficient and competitive in the world market. While South Korea and Taiwan have made substantial progress in this transition, China has just embarked on the process. Originality/value This paper is among the first to systematically review the theories and evidence of the transition and the challenges East Asian countries face during the process.

Fed hike will hit South-east Asian liquidity and debt

2015 ◽  
Keyword(s):  
East Asian ◽  
Capital Controls ◽  
Capital Flight ◽  
Bond Markets ◽  
Content Type ◽  
Asian Economies ◽  
Market Contagion ◽  
Growth Prospects ◽  
Exchange Markets ◽  
East Asian Economies

Subject Implications of a US rates hike for South-east Asian economies. Significance Stress from the dollar's rapid appreciation could spill into ASEAN economies if a US Federal Reserve (Fed) interest-rate hike goes ahead in September. Fears of capital flight are already being realised in South-east Asia as foreign investors lose confidence in the growth prospects of key economies and withdraw their funds from stock and bond markets. The devaluation of the yuan last week has further destabilised ASEAN currencies by removing an anchor of stability. Commodity exporters Malaysia and Indonesia will suffer the deepest impacts, but market contagion could drag other industrialised South-east Asian economies into a currency crisis. Impacts Financial systems have adequate safeguards against market volatility, but liquidity would suffer. Capital controls could be employed if conditions deteriorate in foreign-exchange markets. Rising repayment costs on dollar loans could trigger debt defaults.

Emissions and trade in Southeast and East Asian countries: a panel co-integration analysis

2015 ◽  
Vol 7 (4) ◽  
pp. 460-475 ◽  
Author(s):  
Mansor H. Ibrahim ◽  
Syed Aun R. Rizvi
Keyword(s):  
Hong Kong ◽  
South Korea ◽  
East Asian ◽  
Estimation Method ◽  
The Philippines ◽  
Least Square ◽  
Trade Policies ◽  
Asian Countries ◽  
Content Type ◽  
Long Run

Purpose – The purpose of this paper is to analyse the implication of trade on carbon emissions in a panel of eight highly trading Southeast and East Asian countries, namely, China, Indonesia, South Korea, Malaysia, Hong Kong, The Philippines, Singapore and Thailand. Design/methodology/approach – The analysis relies on the standard quadratic environmental Kuznets curve (EKC) extended to include energy consumption and international trade. A battery of panel unit root and co-integration tests is applied to establish the variables’ stochastic properties and their long-run relations. Then, the specified EKC is estimated using the panel dynamic ordinary least square (OLS) estimation technique. Findings – The panel co-integration statistics verifies the validity of the extended EKC for the countries under study. Estimation of the long-run EKC via the dynamic OLS estimation method reveals the environmentally degrading effects of trade in these countries, especially in ASEAN and plus South Korea and Hong Kong. Practical implications – These countries are heavily dependent on trade for their development processes, and as such, their impacts on CO2 emissions would be highly relevant for assessing their trade policies, along the line of the gain-from-trade hypothesis, the race-to-the-bottom hypothesis and the pollution-safe-haven hypothesis. Originality/value – The analysis adds to existing literature by focusing on the highly trading nations of Southeast and East Asian countries. The results suggest that reassessment of trade policies in these countries is much needed and it must go beyond the sole pursuit of economic development via trade.

Prospects for ASEAN economies in 2018

2017 ◽  
Keyword(s):  
East Asian ◽  
Gdp Growth ◽  
International Organisations ◽  
Content Type ◽  
Goods And Services ◽  
Global Demand ◽  
Asian Economies ◽  
East Asian Economies

Subject Prospects for South-east Asian economies in 2018. Significance Stronger global demand for ASEAN’s goods and services exports and higher prices for commodity exports are fuelling faster South-east Asian GDP growth across the region; the international organisations expect growth to accelerate to at least 5.2% in 2018, picking up from close to 5.0% in 2017 and nearer 4.5% in 2014-16.

On IMF debt and capital control: evidence from Malaysia, Thailand, Indonesia, the Philippines and South Korea

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Azhar Mohamad ◽  
Imtiaz Mohammad Sifat ◽  
Hassanudin Mohd Thas Thaker ◽  
Anwar Muhammad Noor
Keyword(s):  
Economic Growth ◽  
South Korea ◽  
Design Methodology ◽  
Econometric Model ◽  
East Asian ◽  
External Debt ◽  
The Philippines ◽  
Capital Control ◽  
Content Type ◽  
East Asian Economies

Purpose This study aims to investigate the effects of capital control and external debts after the 1997 financial crisis. Design/methodology/approach Using system estimation approach, the authors estimate a panel data-based econometric model for data on Malaysia, Thailand, Indonesia, the Philippines and South Korea from 1990 to 2017. Findings The authors find that on average, the crisis-hit South East Asian economies choosing external debt perform better in achieving greater economic growth and rebound better compared to economies imposing capital control. Originality/value This study attempts to answer whether a crisis-hit country should impose capital control or opt for external debt to recuperate from the crisis.

scholarly journals Exchange Rates Under The East Asia Dollar Standard: The Future Of East Asian Economies

2011 ◽  
Vol 6 (3) ◽  
Author(s):  
Ordean Olson
Keyword(s):  
Exchange Rate ◽  
Business Cycle ◽  
East Asia ◽  
East Asian ◽  
Asian Countries ◽  
Economic Stability ◽  
Dollar Exchange Rate ◽  
Asian Economies ◽  
The Business Cycle ◽  
East Asian Economies

The effects of fluctuations in the yen/dollar exchange rate on the business cycle of the smaller East Asian economies are examined in this paper. The cointegration error-correction model is employed to examine the nature of the interrelationship between the yen/dollar exchange rate and the economic stability of the East Asian countries. The empirical results reveal strong and lasting effects of changes in the yen/dollar exchange rate on the economic income and exchange rate stability of the East Asian countries. The results also indicate that stabilizing the yen/dollar exchange rate with the East Asian business cycle would benefit Japan as well as the economies of East Asia.

China's woes will hit South-east Asia's economies

2015 ◽  
Keyword(s):  
Interest Rates ◽  
East Asian ◽  
Tourism Industry ◽  
Content Type ◽  
Bank Of China ◽  
Chinese Investment ◽  
Asian Economies ◽  
Market Instability ◽  
East Asian Economies ◽  
China’S Economy

Subject China's currency depreciation and the effect on South-east Asian economies. Significance South-east Asian economies are coming under pressure from a global stock market sell-off triggered by concern that China's economy may be slowing faster than expected. The People's Bank of China has made efforts to manage the market instability, including devaluing the renminbi by 4% since August 11 and cutting interest rates on August 25. Nonetheless, regional confidence has been shaken. Impacts External debt repayments could become unsustainable if regional currencies weaken further. South-east Asia's tourism industry will suffer as outbound travel becomes more expensive for Chinese. Chinese investment in ASEAN will probably slow.

Microfinance demand will grow in South-east Asia

2016 ◽  
Keyword(s):  
East Asia ◽  
East Asian ◽  
South East Asia ◽  
Asian Countries ◽  
Industry Growth ◽  
Phnom Penh ◽  
Foreign Investors ◽  
Content Type ◽  
East Asian Economies

Subject Microfinance in South-east Asia. Significance Microfinance lending in Cambodia rose 45% last year, while the number of borrowers has doubled since 2010, a national summit on the industry was told in Phnom Penh last month. Other emerging South-east Asian economies will seek to emulate Cambodia's success as intra-regional financial ties heighten credit gaps, especially for small business. Most funding will come from abroad, but foreign investors are worried about regulatory shortcomings and high borrowing costs in some markets. Impacts Cambodia will see the fastest microfinance industry growth among South-east Asian countries. However, larger markets such as Indonesia have greater long-term potential microfinance demand. Microfinance could increase SMEs' viability by paying for efficiencies and boost their presence in exports and supply chains.

North and South Korea will vie for influence in Africa

2016 ◽  
Keyword(s):  
Economic Growth ◽  
South Korea ◽  
East Asian ◽  
Asian Countries ◽  
African Countries ◽  
Content Type ◽  
South Korean ◽  
Near Term ◽  
North And South

Significance Her African tour was designed to reinforce growing South Korean cooperation with African countries while countering North Korean links. Impacts Rivals, including other East Asian countries such as China, will increase interest in African opportunities. South Korean aid to African countries will remain below other larger donors' in the near term. Slowing economic growth in Africa could dissuade South Korean investment.

scholarly journals The readiness of industry for a transformative recovery from COVID 19

2020 ◽  
Vol 3 ◽  
Author(s):  
Sam Fankhauser ◽  
Raphaela Kotsch ◽  
Sugandha Srivastav
Keyword(s):  
South Korea ◽  
Manufacturing Sector ◽  
East Asian ◽  
Low Carbon ◽  
Growth Opportunities ◽  
Comparative Advantages ◽  
Asian Economies ◽  
Zero Carbon ◽  
Industrialised Countries ◽  
East Asian Economies

Non-technical summary Many countries are committed to emerge from COVID 19 on a more sustainable environmental footing. Here we explore what such a structurally transformative recovery would mean for the manufacturing sector of 14 major economies. We find that all countries have zero-carbon growth opportunities post-COVID and comparative advantages in some sectors, but industrialised countries and the East Asian economies, especially South Korea, appear best positioned, thanks a push in low-carbon innovation that predates the pandemic.

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