The East Asian economies after the financial crisis: a role for the Japanese Yen?: Takahashi Wataru

2003 ◽  
pp. 148-166
Keyword(s):  
Financial Crisis ◽  
East Asian ◽  
Asian Economies ◽  
Japanese Yen ◽  
East Asian Economies

scholarly journals GLOBAL FINANCIAL CRISES AND ECONOMIC GROWTH : EVIDENCE FROM EAST ASIAN ECONOMIES

2012 ◽  
Vol 15 (2) ◽  
pp. 35-54
Author(s):  
Arisyi F. Raz ◽  
Tamarind P. K. Indra ◽  
Dea K. Artikasih ◽  
Syalinda Citra
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
East Asian ◽  
Economic Fundamentals ◽  
Short Period ◽  
Asian Economies ◽  
East Asian Economies ◽  
The Impact

As economies become more integrated in the midst of globalization, financial crisis that occurs in one country can easily transmit to other countries, becoming global financial catastrophe in a short period of time. In such event, strong economic fundamentals are particularly important to defend a country from the contagious effect of the crisis. As evidence, due to the fragile economic fundamentals and lacking government credibility, East Asian economies were easily attacked by the crisis in 1997 once the sentiment deteriorated. Nevertheless, the region had learned its lessons in 1997 thereby proofing its resilience in facing the global financial crisis that struck in 2008 by improving its economic fundamentals as well as policymakers’ credibility. This paper starts with theories on economic growth and financial crisis. Further, it empirically examines to what extent the financial crises in 1997 and 2008 affect East Asian economies by using panel data econometrics. The evidence shows that, even though both crises have contributed adverse impacts on East Asian economies, the magnitude of the 2008 crisis was relatively less severe than that in 1997. Finally, this study also provides further discussions regarding how East Asian economies had successfully minimized the impact of the global crisis in 2008. Keywords: Global Financial Crises; East Asian Economies; Economic Growth;Financial Market; Random and Fixed EffectsJEL Classification: C330, E440, G010

scholarly journals Spillover Effects of Japan’s Quantitative and Qualitative Easing on East Asian Economies

2019 ◽  
pp. 66-98 ◽  
Author(s):  
Shin-Ichi Fukuda
Keyword(s):  
East Asian ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Policy Regime ◽  
Positive Spillover ◽  
Asian Economies ◽  
Japanese Yen ◽  
East Asian Economies ◽  
East Asian Stock Markets ◽  
Neighbour Effect

This chapter explores the spillover effects of Japan’s quantitative and qualitative easing (QQE) on East Asian economies. Under the new monetary policy regime, the Japanese yen depreciated substantially, raising concerns that it would have a regional beggar-thy-neighbour effect. It is thus important to see what effects the QQE had on neighbouring economies. Our empirical investigation of East Asian stock markets finds that they first reacted to the yen’s depreciation negatively, yet came to respond positively as the QQE progressed, implying that the QQE had a much smaller beggar-thy-neighbour effect than was originally feared. We show that the QQE benefited East Asian economies because the positive spillover effect of Japan’s stock market recovery dominated the beggar-thy-neighbour effect in the region.

Post-Crisis Asia: Economic Recovery and the Challenges Ahead

2002 ◽  
Vol 101 (654) ◽  
pp. 177-183 ◽  
Author(s):  
Shalendra D. Sharma
Keyword(s):  
Financial Crisis ◽  
East Asian ◽  
Economic Recovery ◽  
Economic Downturn ◽  
Asian Economies ◽  
Almost All ◽  
East Asian Economies

Almost all the East Asian economies have recaptured the economic momentum disrupted by the 1997 financial crisis in the region. Although that momentum was slowed with the global economic downturn in 2001, the process of financial and corporate rebuilding and restructuring in response to the crisis has not.

Surmounting the Individual: Establishing a Common Currency in Asia – A Case Study of East Asian Economies

2013 ◽  
Vol 13 (1) ◽  
pp. 63-88
Author(s):  
Maryam Ishaq ◽  
Muhammad Atiq Ur Rehman
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
East Asian ◽  
Currency Union ◽  
Structural Var ◽  
Forecast Errors ◽  
Common Currency ◽  
North East ◽  
Asian Economies ◽  
East Asian Economies

In the Ministerial meeting of ASEAN held in 1998, the devastation caused by Asian financial crisis remained the point of contemplation. The participants enthusiastically discussed the need to establish common currency and exchange rate system in order to counter any financial crisis anticipated. The ever-growing financial crisis threatening every region in the world has compelled the economists to acknowledge the elevating need of financial cooperation in their respective territories. This is certainly meant to ensure economic stability at both economic and political level. The authors, in the course of this paper, have focused the need to materialize the ideal of promoting monetary integration in the major economies of South, South East, and North East Asia. Calculating Optimum Currency Area (OCA) Index, the authors in a way present costs and benefits associated with the adoption of this currency union. Demand and supply sides of each economy are tested as a pre requisite of OCA in order to provide a good rationale in favor of selection of regions. For this purpose, Structural VAR Analysis (SVAR) method was employed and innovation accounting is done through variance decomposition of forecast errors, impulse response function and correlation matrix. The theory of OCA has been tested by (i) calculating the OCA index estimated by simple OLS method and (ii) following Bayoumi and Eichengreen extrapolating the variability of exchange rate data. The common consensus drawn from the two approaches adopted implies that there is a good potential in the region excluding China to construct a currency union particularly amongst South and North East Asian economies. It is worth mentioning, however, that some of these will have to work harder to join and become an effective member of this currency merger.

Taiwan's Role in the Asian Financial Crisis

1998 ◽  
Vol 01 (04) ◽  
pp. 529-544 ◽  
Author(s):  
Rong-I Wu
Keyword(s):  
Financial Crisis ◽  
East Asian ◽  
Asian Financial Crisis ◽  
Share Price ◽  
The World ◽  
Asian Economies ◽  
Almost All ◽  
East Asian Economies

The depth of the 1997 Asian financial crisis has taken the world by surprise. Almost all major East Asian economies had experienced significant falls both in currency and share price. Some countries have been left with tremendous economic difficulties after their currencies were severely battered. Taiwan has emerged from the crisis as a stabilizing force in the region with its economy comparatively unscathed. This paper discusses the performance of Taiwan's economy throughout the crisis by looking at several factors underlying the financial turmoil. Meanwhile, it gives evidence to support the devaluation of the New Taiwan dollar as of October 1997.

scholarly journals Are Family Firms More Levered? An Analysis of Family and Non-Family Firms

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110223
Author(s):  
Jahanzaib Haider ◽  
Abdul Qayyum ◽  
Zalina Zainudin
Keyword(s):  
Family Firms ◽  
East Asian ◽  
Ordinary Least Squares ◽  
Maturity Structure ◽  
The Family ◽  
Asian Economies ◽  
The Board Of Directors ◽  
East Asian Economies ◽  
Combined Data

This study analyzes the leverage policies of the family and non-family firms of eight East Asian Economies (Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, and Taiwan) by using combined data of 690 family and non-family firms with 3,224 firm–years over the period 2006–2010. This study has used an ordinary least squares (OLS) regression for analyzing the data for the first question, while for the second question, logit regression has been used as the dependent variable (a binary variable). Prior research on family and non-family firms has revealed that family firms issue less (high) debt than non-family firms. Our analysis on a sample of East Asian Economies discloses that family firms have significantly different leverage levels than non-family firms, but their signs are not consistent. On the contrary, when the owner works as CEO/Chairman or member of the Board of Directors, then the family firms issue less debt than the non-family firms. Besides that, this study adds a new question that has not been addressed in the prior studies. The new question has focused on the speed of leverage adjustment. It is found that family firms and non-family firms regarding their debt maturity structure (short-term debt and long-term debt), the speed of leverage adjustments, and their decision to issue securities (i.e., debt vs. equity) are not significantly different. This study concluded that though family firms have a strong influence on each economy, but in South-East Asian countries, leverage policies of the family firms are not much different than that of non-family firms.

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