This article examines real exchange rate (RER) misalignment in Thailand in the lead-up to the 1997–1998 currency crisis. The methodology involves estimating the long-run equilibrium RER based on the internal and external balance approach. RER misalignment is measured by comparing the actual RER with the estimated long-run equilibrium RER. The results suggest that there was a persistent RER overvaluation ...

Many economists maintain that in order to advance economic growth Asian countries should focus more on basic research than on technology adoption, and more on the supply of skilled workers than the supply of unskilled workers. In this context, this paper presents a theoretical model and empirical evidence to explain the observation that a country in which the level of technology approaches the ...

The global economic and financial landscape has been transformed over the past decade by the growing economic size and financial power of emerging economies. The new Group of Twenty summit process, which includes the largest emerging economies, has established high-level international policy cooperation in this new setting. This article argues that effective global economic governance will also ...

This paper focuses on post-Soviet regional integration as a special case where integration projects are established by countries that originally comprised a single political entity after its collapse. It shows that in this framework the existing economic ties between countries are likely to affect adversely the interest of functional bureaucracy to support regional integration given that cutting ...

Since the Asian financial crisis in 1997–98, Asian countries have made continuous efforts to promote monetary and financial cooperation for developing regionally well-established bond markets. This paper empirically evaluates the developments of bond markets in the East-Asia region based on the recently developed empirical methodology of dynamic cross-country bond yield interactions. To this end, ...

In the present paper, we investigate whether capital flows induce domestic asset price hikes in the case of Korea. This issue is relevant for crisis-hit economies trying to prevent a boom–bust cycle as well as in the formulation of macroeconomic policy objectives in emerging market economies. Korea has recently experienced large capital inflows, in particular a surge in portfolio inflows. Furthermore, ...

In this paper, we examine the differences in the measures of: (i) profits of an enterprise obtained from a detailed set of questions on incomes and expenses of the enterprise, versus profits obtained through a single direct question; and (ii) gross value added (GVA) obtained using the production approach as the difference between output and intermediate consumption from a detailed set of questions ...

Financial safety nets in Asia have come a long way since the Asian financial crisis (AFC) of 1997/1998. With Asian countries not wanting to rely solely on the IMF again, the Chiang Mai Initiative (CMI) was created in 2000. When the CMI also proved inadequate following the global financial crisis, it was first multilateralized (CMIM), and then doubled in size to US$240bn, while the IMF de-linked ...

Private investment in Malaysia has never fully recovered from the impact of the Asian Financial Crisis (AFC). Both domestic and foreign investment have remained lackluster post-AFC; while foreigners continue to shun Malaysia, it seems even domestic investors are fleeing as well, with Malaysia having become a net exporter of capital since 2005. Malaysia continues to grow but, without private investment, ...

This article examines the prospects of regional economic integration in Central Asia from the point of view of the extent of actual economic interdependencies in the region, using a new and unique dataset. We find that Central Asian states tend to be integrated with other countries of the former Soviet Union rather than with each other; the advantage that the Central Asian states had in terms of ...