scholarly journals Revisiting Determinants of Financial Development? The Role of Financial and Monetary Freedom: Empirical Evidence from the Asia-pacific Region

2021 ◽  
Vol 15 (2) ◽  
pp. 151-175
Author(s):  
Wajid Ali ◽  
Asif Javid ◽  
Shakeel Ahmad ◽  
Nauman Ahmad ◽  
Aamir Khan
Keyword(s):  
Financial Development ◽  
Financial Services ◽  
Government Regulation ◽  
Banking System ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Long Run ◽  
Dynamic Estimation ◽  
And Control

This study aims to assess what determines/improves the overall multidimensional nature of the financial development index and its sub-indices. For this purpose, we use data over the period 1998 to 2017 for 9 countries from the Asia-Pacific region. The hypothesis of no long run relationship between variables is tested via the three-panel co-integration test i.e. Kao test, the Pedroni test, and the Johansen test. We also examine the impact of these variables on each index through long-run dynamic estimation. We utilize FMOLS and DOLS for this purpose. All the three-panel co-integration tests suggest a long-run relationship among variables. Findings from long-run dynamic estimation indicate that efficient regulation of financial services and control over prices by the government significantly influences the financial depth, financial efficiency, and financial access indices. The financial freedom index measured by regulation of financial services negatively influences the indices, suggest that too much government regulation could distort the market. Also, an increasing probability of default of the country's banking system adversely affects the sub-indices of financial development. These findings suggest that too much government regulation of financial services and control over prices along with default of country banking system could worsen the country's financial development situation and vice versa. The promulgation of prudent regulatory policies by financial regulatory institutions is the need of the time to ensure full access to financial services, soundness, and stability of the financial sector.

Dynamic linkages among developed, emerging and frontier capital markets of Asia-Pacific region

2017 ◽  
Vol 14 (3) ◽  
pp. 332-351 ◽  
Author(s):  
Nisha Mary Thomas ◽  
Smita Kashiramka ◽  
Surendra S. Yadav
Keyword(s):  
Unit Root ◽  
Unit Root Test ◽  
Cointegration Analysis ◽  
Asia Pacific ◽  
Thin Body ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Content Type ◽  
Long Run ◽  
Global Investors

Purpose The purpose of this paper is to investigate the long-run equilibrium relationship between developed, emerging and frontier markets of the Asia-Pacific region during January 2000 to June 2016. Design/methodology/approach Zivot and Andrews’ unit root test is used to examine the existence of unit root in index series in the presence of a structural break. Gregory and Hansen’s test of cointegration is employed to examine the stable long-run relationship between the indices under study. Findings The results suggest that the emerging markets of China and Thailand and the frontier markets of Sri Lanka and Pakistan are fairly segmented from most of the markets in the Asia-Pacific region. Hence, these markets provide good diversification opportunities to global investors. Bidirectional cointegration analysis indicates that emerging and frontier markets influence developed markets. Hence, it can be inferred that the de facto position that only bigger markets influence small markets no longer holds true in the current environment. Practical implications The findings of this study will provide valuable inputs to global investors for creating an optimal investment portfolio. Originality/value This study does a comprehensive examination of market integration in the Asia-Pacific region. It also contributes to the thin body of work done on frontier markets. Unlike past studies, this paper analyzes the bidirectional cointegration relationship to examine if the notion that only bigger markets influence smaller markets holds true or not. Finally, this study employs advanced techniques of unit root test and cointegration test that consider structural breaks in the models.

China, Japan and Economic Interdependence in the Asia Pacific Region

1990 ◽  
Vol 124 ◽  
pp. 662-693 ◽  
Author(s):  
Christopher Howe
Keyword(s):  
Asia Pacific ◽  
Economic Interdependence ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Long Run

China, Japan and Economic Interdependence in the Asia Pacific RegionIn expressing their gratitude for economic co-operation from Japan, Chinese leaders noted that such assistance would also be profitable to Japan in the long run. We in Japan certainly have no objection to this view. (Sakutaro Tanino, The Japan Times, 1 October 1988.)

scholarly journals The bridging role of regional headquarters. Multinational companies in the Asia-Pacific region

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bruno Amann ◽  
Jacques Jaussaud ◽  
Johannes Schaaper
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Multinational Companies ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Content Type ◽  
Regional Headquarters ◽  
And Control ◽  
Coordination And Control

Purpose Large multinational companies (MNCs) are strongly formalized, often standardized and complex with multiple hierarchical levels. Over the past few decades, MNCs have strengthened their coordination and control systems by creating regional headquarters (RHQs). This study aims to investigate how MNCs rearticulate control dimensions at RHQs, to coordinate and exert control over subsidiaries in the Asia-Pacific region. Design/methodology/approach Based on a survey of 86 French MNCs in the Asia-Pacific region, this study applies a structural equation model to determine RHQs’ roles in the field of regional decision-making, coordination and control. Findings Large MNCs, with a significant presence in Asia, transfer coordination and control to RHQs, in a way that leads us to propose the use of the expression “regio-centralization.” RHQs become socialization hubs, where most regional decisions are taken and where international managers meet. MNCs mobilize at the same time expatriates, short-term assignees and local managers who intensively interact at RHQs. Thus, informal control at RHQs increases, partly substituting formal control by HQs. Smaller MNCs, without RHQs, on the contrary, base their control and coordination on the formalization of HQs-subsidiary relations, especially through strong reporting, in combination with centralized decision-making at HQs. Research limitations/implications This study is based on MNCs from one specific country, France, and focuses only on the dynamic Asia-Pacific host region. Coordination and control in less dynamic regions may reveal different results. Originality/value This study leads to a better understanding of how large MNCs reorganize dispersed activities in the Asia-Pacific region by creating RHQs, where important control and coordination functions are relocated.

TIME-FREQUENCY NEXUS BETWEEN BITCOIN AND DEVELOPED STOCK MARKETS IN THE ASIA-PACIFIC

2020 ◽  
pp. 1-26
Author(s):  
NGO THAI HUNG
Keyword(s):  
Equity Markets ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Causality Test ◽  
Time Frequency ◽  
Long Run ◽  
Portfolio Managers ◽  
Developed Stock Markets ◽  
Additional Support

This study investigates the connectedness between Bitcoin prices and major stock indices in the Asia-Pacific region from February 2012 to August 2019. Based on the wavelet transform framework, we find evidence of significant unidirectional association from Bitcoin to the selected markets in the short, medium, and long-run in the Asia-Pacific region. Overall, Asia-Pacific equity markets and Bitcoin cryptocurrency are weakly correlated at higher frequencies throughout the sample period, but the dependence of Bitcoin on the equity markets steadily increases at lower frequencies. Further, we construct the wavelet-based Granger causality test at different time scales to provide additional support to our connectedness results. Our findings provide important implications for policymakers, portfolio managers, and investors who are invited to take into account the dynamic linkages between Bitcoin and equity markets.

scholarly journals Crisis of Regional Leadership and Stagnation of Mega-projects in Asia-Pacific: Consequences for Russia

2019 ◽  
Vol 12 (1) ◽  
pp. 6-25
Author(s):  
A. N. Fedorovsky
Keyword(s):  
Regional Integration ◽  
The United States ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Regional Economic ◽  
Long Run ◽  
The Usa ◽  
The Republic

Analyses of modern trade and economic relations in Asia-Pacific region. Research of the roles of the United States of America and China under the conditions of protectionism initiated by the D. Tramp’s administration and stagnation of mega-projects. Crisis of leadership and role of USA and China in regional mega-project (APEC, TPP, RCPEC). Ability of the USA and the PRC to create regional economic priorities, as well as to determine the course of integration processes. Analysis of the main obstacles of realization of American and Chinese leadership potential. Regional integration project initiated by Japan, India and the Republic of Korea and prospects for Indo-Pacific Asia. China-USA competition and main trends of regional integration. Comparative study of opportunitiesand prospects for bilateral and mega-regional economic projects. As an example, observation of South Korean initiative “New Economic Map” is presented and analyzed. Role of “New Economic Forum” initiated by Bloomberg with support of global big business is examined also. Initiative of Indo-Pacific region, Japan-India economic cooperation are examined, as well as Washington policy to counterweight China foreign economic and political expansion. Analyzing of prospects and consequences of competition between USA and the PRC in Pacific regions. Main issues, opportunities and challenges of Russia’s economic expansion in Asia-Pacific region. Close interconnection between policy, security and economiccooperation in the region: influence on Russia’s Pacific priorities and diplomacy. Characteristics of some problems of Russian “East Policy” during last several years. Some arguments are presented in favor of Russia’s strategy of “policy of focused partnerships”. This kind of policy means prevail of business activity in some special projects as well as in some geographic areas. It is also stressed that it is in Russia’s long-run interests to use of all kind of diplomatic measures in order to minimize any attempts to oppose India to China. But try its best to support cooperation between Russia, China and India in Pacific, as well as in Indo-Pacific region. 

scholarly journals The Financial Inclusion Landscape in the Asia-Pacific Region

2019 ◽  
Vol 19 (79) ◽  
Author(s):  
Sarwat Jahan ◽  
Jayendu De ◽  
Fazurin Jamaludin ◽  
Piyaporn Sodsriwiboon ◽  
Cormac Sullivan
Keyword(s):  
Financial Services ◽  
Holistic Approach ◽  
The State ◽  
Financial Inclusion ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Current State ◽  
Multidimensional Concept ◽  
Specific Country

Financial inclusion is a multidimensional concept and countries have chosen diverse methods of enhancing financial inclusion with varying degrees of results. The heterogeneity of financial inclusion is particularly striking in the Asia-Pacific region as member countries range from those that are at the cutting edge of financial technology to others that are aiming to provide access to basic financial services. The wide disparity is not only inter-country but also intra-country. The focus of this paper is to take stock of the current state of financial inclusion in the Asia-Pacific region by highlighting twelve stylized facts about the state of financial inclusion in these countries. The paper finds that the state of financial inclusion depends on several factors, but a holistic approach calibrated to specific country conditions may lead to greater financial inclusion.

scholarly journals Does the Kuznets curve apply for financial development and environmental degradation in the Asia-Pacific region?

Heliyon ◽  
2021 ◽  
Vol 7 (4) ◽  
pp. e06708
Author(s):  
Duc Hong Vo ◽  
Nhan Thien Nguyen ◽  
Anh The Vo ◽  
Chi Minh Ho ◽  
Thang Cong Nguyen
Keyword(s):  
Financial Development ◽  
Environmental Degradation ◽  
Asia Pacific ◽  
Kuznets Curve ◽  
Pacific Region ◽  
Asia Pacific Region

Trends and risks of development of the Fintech market in the Asia-Pacific region on the example of alternative lending

2020 ◽  
Vol 2020 (6) ◽  
pp. 70-89
Author(s):  
Sergey Barykin
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Global Market ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Fraud Risk ◽  
Client Data ◽  
Technology Market

The article attempts to identify and systematize trends and risks in the development of the alternative lending market in the countries of the Asia-Pacific region. Alternative lending as a segment of financial technology market (Fintech) in Asia has significantly increased its share in the global market over the past 5 years. During the period from 2017 to 2018, the share of Asia-Pacific countries increased in all 4 key Fintech segments. The research methodology is based on the methods of statistical data analysis, comparative analysis and correlation analysis. As a result of the analysis, the author identifies three main trends: an increase in the level of internationalization of alternative lending, an increase in the role of large technology companies (BigTech) in providing financial services to the population, and outsourcing of storage and client data processing to third parties. Along with these trends, new emerging risks may have an impact on financial stability in Asian countries: the risk of spillover onto other participants in the financial sector, procyclicality and the risk of moral hazard for systemically important organizations, etc. The author comes to the conclusion that in order to minimize the effects of fraud risk as well as other key risks, it is worth introducing a special regime regulating alternative lending in the country.

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