Pacific Economic Research Articles

Kava, the anxiolytic herb: back to basics to prevent liver injury?

The use of the anxiolytic herb kava has caused toxic liver injury in Western countries and economic problems in South Pacific Islands due to tthe regulatory ban on kava. This analysis shows poor quality of kava raw material as a cause for its toxicity and suggests preventative measures by going back to the traditional use of kava for the sake of the patients and the South Pacific economy.

Evaluasi Komoditi Ekspor di Bandara Soekarno Hatta

Seeing of free trade in several continental markets such as of the establishment of the European Economic Community (EEC). The Asian Pacific Economy (Pasific Economy Community) NORTH America Free Trade Are (NAFTA), ASEAN Free Trade Area (AFTA), ASEAN free market with China is indirectly effect on determination of Indonesian strategy in exploting oppurtunities commodities what can penetrate the international market.With the opening of free markets Asean plus China which commenced in the year 2010 was the air transport sector has an important role in supporting efforts to increase exports, especially in the provision of adequate transport service.Soekarno Hatta airport is one of the airport that serves as the gates way of trade via air transport network, that plays an important role in supporting and smoth export and import of commodities.

Towards a Single Market: A 21st Century Vision for Asia Pacific Economic Integration

APEC leaders can take pride in progress towards free and open trade. There will always be more to do to integrate Asia Pacific economies. 2010 is the time to look beyond border barriers to trade and adopt a new post-Bogor vision of a single market. Traditional border barriers to trade in some sensitive products remain costly, but affect only a rapidly shrinking part of international commerce. Today, it is more efficient to concentrate on problems of communications and logistics, combined with the lack of efficiency, transparency and sometimes arbitrary implementation of economic policies in different economies. The effective constraint on collective action to deal with these problems is not political will. It is limited capacity to design and implement the necessary policy reform. Creating the necessary capacity needs a unifying vision to deal all obstacles to genuine economic integration, that is, to build a single market. In doing so, Asia Pacific governments can learn from the European Union experience. But they need to promote ever-deeper economic integration without relying on a supra-national authority. Like free and open trade, a single market is a vision which can only be approached, rather than reached by any deadline－it is a point of reference for the many things that need to be done to integrate Asia Pacific economies in a meaningful way. Asia Pacific governments should be encouraged to set their own medium-term targets for progress towards well-defined ingredients of a single market. Strict selection criteria should be used to identify options for cooperation which build on what APEC is already doing and which are in line with the priorities of most member economies. An ambitious program to enhance the efficiency of supply chains could set a successful example and generate the confidence to do more.

Towards a Single Market: A 21st Century Vision for Asia Pacific Economic Integration

APEC leaders can take pride in progress towards free and open trade. There will always be more to do to integrate Asia Pacific economies. 2010 is the time to look beyond border barriers to trade and adopt a new post-Bogor vision of a single market. Traditional border barriers to trade in some sensitive products remain costly, but affect only a rapidly shrinking part of international commerce. Today, it is more efficient to concentrate on problems of communications and logistics, combined with the lack of efficiency, transparency and sometimes arbitrary implementation of economic policies in different economies. The effective constraint on collective action to deal with these problems is not political will. It is limited capacity to design and implement the necessary policy reform. Creating the necessary capacity needs a unifying vision to deal all obstacles to genuine economic integration, that is, to build a single market. In doing so, Asia Pacific governments can learn from the European Union experience. But they need to promote ever-deeper economic integration without relying on a supra-national authority. Like free and open trade, a single market is a vision which can only be approached, rather than reached by any deadline－it is a point of reference for the many things that need to be done to integrate Asia Pacific economies in a meaningful way. Asia Pacific governments should be encouraged to set their own medium-term targets for progress towards well-defined ingredients of a single market. Strict selection criteria should be used to identify options for cooperation which build on what APEC is already doing and which are in line with the priorities of most member economies. An ambitious program to enhance the efficiency of supply chains could set a successful example and generate the confidence to do more.

How Will Rebalancing Demand Change Production in the Asia Pacific?

Rebalancing expenditures among and within surplus and deficit countries has emerged as a key global policy priority. This paper examines the implications of rebalancing expenditure categories in 10 Asia Pacific economies for the structure of production. An aggressive rebalancing scenario is constructed (based on 2007 current account data, since more recent imbalances are smaller) and its detailed production implications are analyzed using a large international input-output system. The changes associated with eliminating excessive international imbalances are found to be modest relative to major expenditure categories in the Asia Pacific. Moreover, significant overlaps in the production induced by different types of expenditures dampen the output effects of shifts among them. This does not mean that rebalancing will be easy to accomplish - spending reallocations are politically difficult - but the need to reinvent Asia's growth model appears to be overstated.

How does the US credit crisis affect the Asia–Pacific economies?—Analysis based on a general equilibrium model

The current financial crisis differs from most post-war recessions in that the balance sheets of both households and banks have been severely damaged, which could lead to structural changes in the behavior of households. Therefore, it may exert some far-reaching effects on regional economies in the short run as well as in the medium term. This paper studies these effects using a multi-country dynamic structural model. In the short run, the US credit crisis weighs heavily upon the Asia–Pacific economies through financial linkages in addition to the traditional trade channel due to the deepening global financial integration. The relative importance of various financial channels differs notably across economies. While stock market contagion is more important for advanced economies, flight to quality across borders plays a key role in less developed economies. From a medium-term perspective, changes in the US household behavior caused by the credit crisis can help correct global imbalances, but the effectiveness hinges largely upon how long US households can maintain a reasonably higher savings rate. In addition, although the declining American public savings rate may not exert material impacts on the global imbalances, it can darken regional growth prospects due to a potentially higher world real interest rate.

Responding to High Commodity Prices

The recent commodity price boom resulted from rising demand in the face of a long period of low supply growth and market distortions. Structural factors are expected to return international commodity prices to relatively high levels as the global economy recovers. The Asian and Pacific economies and the region's poor will be among the most exposed to a rebound in prices. The recent response to high commodity prices can be improved upon. At the global level, the priority for Asian and Pacific governments is to seek a commitment to lessening distortions favouring bio‐fuels. At the regional level, there is a need to address the use of trade restrictions on food commodities in Asia, notably rice. At a national level, the long‐term neglect of the rural economy warrants correction; and efforts to expand and make social safety nets more ‘market friendly’ are called for.

Note from the New Managing Editor

As the Journal of the Asia Pacific Economy (JAPE) enters its 14th year of publication, I have taken up the position of Managing Editorship from Anis Chowdhury, who has moved to a new position in th...

Infrastructure Investment in Rural China: Is Quality Being Compromised during Quantity Expansion?

Previous articleNext article No AccessInfrastructure Investment in Rural China: Is Quality Being Compromised during Quantity Expansion?Chengfang Liu, Linxiu Zhang, Renfu Luo, Scott Rozelle, and Linxiu ZhanChengfang Liu Search for more articles by this author , Linxiu Zhang Search for more articles by this author , Renfu Luo Search for more articles by this author , Scott Rozelle Search for more articles by this author , and Linxiu Zhan Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by The China Journal Volume 61Jan., 2009 Published on behalf of the Australian Centre on China in the World at the Australian National University Article DOIhttps://doi.org/10.1086/tcj.61.20648047 Views: 78Total views on this site Citations: 15Citations are reported from Crossref Copyright The China JournalPDF download Crossref reports the following articles citing this article:Zubda Zia Ur Rehman, Mahin Ahmad E-commerce growth in Pakistan: A critical review in light of Abhijeet Banerjee’s poverty alleviation theory, Journal of Management Info 9, no.22 (Nov 2022): 189–201.https://doi.org/10.31580/jmi.v9i2.2640Xuexin Yu, Wei Zhang Neighborhood’s locality, road types, and residents’ multimorbidity: evidence from China’s middle-aged and older adults, BMC Public Health 20, no.11 (Nov 2020).https://doi.org/10.1186/s12889-020-09876-yJesse Turiel, Edward Cunningham, Anthony Saich To Serve the People: Income, Region and Citizen Attitudes towards Governance in China (2003–2016), The China Quarterly 240 (Apr 2019): 906–935.https://doi.org/10.1017/S0305741019000377Lingli Xiao, Jing Li, Jing Wang Does the type of investor matter? An analysis of fixed-asset investments in rural China, Journal of the Asia Pacific Economy 24, no.44 (Sep 2019): 530–555.https://doi.org/10.1080/13547860.2019.1664535Yuehua Zhang, Xudong Rao, H. Holly Wang Organization, technology and management innovations through acquisition in China’s pork value chains: The case of the Smithfield acquisition by Shuanghui, Food Policy 83 (Feb 2019): 337–345.https://doi.org/10.1016/j.foodpol.2017.08.004Ho Lun Wong, Yu Wang, Renfu Luo, Linxiu Zhang, Scott Rozelle Local governance and the quality of local infrastructure: Evidence from village road projects in rural China, Journal of Public Economics 152 (Aug 2017): 119–132.https://doi.org/10.1016/j.jpubeco.2017.06.006Sara A. Newland Which Public? Whose Goods? What We Know (and What We Don't) About Public Goods in Rural China, The China Quarterly 228 (Dec 2016): 881–904.https://doi.org/10.1017/S030574101600148XFei He, Yaojiang Shi, Renfu Luo, Linxiu Zhang, Natalie Johnson, Scott Rozelle Irrigation investment in China: trends, correlates and impacts, China Agricultural Economic Review 7, no.33 (Sep 2015): 344–359.https://doi.org/10.1108/CAER-09-2014-0084Fangbin Qiao, Scott Rozelle, Jikun Huang, Linxiu Zhang, Renfu Luo Road Expansion and Off-Farm Work in Rural China, The China Quarterly 218 (May 2014): 428–451.https://doi.org/10.1017/S0305741014000629Weiming Tian, Chengfang Liu, Linxiu Zhang, Jikun Huang, Renfu Luo, Hongmei Yi, Yaojiang Shi, Scott Rozelle Project design, village governance and infrastructure quality in rural China, China Agricultural Economic Review 5, no.22 (May 2013): 248–280.https://doi.org/10.1108/17561371311331124Hengyun Ma, Jikun Huang, Les Oxley Capital Formation and Agricultural Growth in China, Asian Economic Papers 12, no.11 (Jan 2013): 166–190.https://doi.org/10.1162/ASEP_a_00200Zhou Xingwu, Jane T. Bertrand, Li Bingcheng, Guo Linfeng, Gabriel Cohen Analysis of Rural Drinking Water Status and Improving Strategies in Pu’er Municipality, Yunnan Province of China, Chinese Studies 02, no.0404 (Jan 2013): 185–192.https://doi.org/10.4236/chnstd.2013.24030Jikun Huang, Xiaobing Wang, Huayong Zhi, Zhurong Huang, Scott Rozelle Subsidies and distortions in China’s agriculture: evidence from producer-level data*, Australian Journal of Agricultural and Resource Economics 55, no.11 (Jan 2011): 53–71.https://doi.org/10.1111/j.1467-8489.2010.00527.xGregory Veeck Westward ho: chasing rural China across time and space, Journal of Cultural Geography 27, no.33 (Oct 2010): 249–259.https://doi.org/10.1080/08873631.2010.516917Stig Thøgersen Revisiting a Dramatic Triangle: The State, Villagers, and Social Activists in Chinese Rural Reconstruction Projects, Journal of Current Chinese Affairs 38, no.44 (Dec 2009): 9–33.https://doi.org/10.1177/186810260903800402

Drivers and impacts of ICT adoption on transport and logistics services

Summary The availability of high‐quality transport and logistics services (TLS) is of paramount importance for the growth and competitiveness of an economy. The objective of this paper is to describe how European companies in this industry use information and communication technology (ICT) for conducting business and to assess the impact of this development for firms and the industry as a whole. A comparison with some important Asia Pacific economies is also presented, indicating that some of these countries (Singapore, Hong Kong, Japan, Taiwan, and Korea) boast very good transport infrastructure compared with the most developed European economies. Using the structure‐conduct‐performance (SCP) model and the bi‐directional relationships of its elements, the paper identifies the links between ICT adoption and market structure, innovation dynamics, and firm performance. A set of recommendations on how to further improve the actual scenario of e‐business in the TLS industry is also presented. The model could also be implemented in Asian countries.

Global production networks, the developmental state and the articulation of Asia Pacific economies in the commercial aircraft industry

Abstract: Asia Pacific economies – particularly Japan, South Korea, China and Singapore – play a large and growing role in the commercial aircraft industry, despite the fact that the region has no major independent plane‐maker. Instead, Asia has secured a significant position in the increasingly elaborate global production networks of Boeing and Airbus. The wider Asian significance in those networks has been fostered not only by the region's deep capital and human resource assets but also by the catalytic actions of developmental states in the region. Moreover, decades of rapid air traffic growth have made Asia a crucial market for Boeing and Airbus. In response, the American and European giants have been compelled to outsource more of their business to Asia in order to win sales and to design new airliners tailored to the needs of Asian customers. Together, the increased importance of Asia in both the design and the manufacture of commercial aircraft point to a future in which Asia will capture an ever‐larger share of the value created in one of the world's most technologically sophisticated and strategically significant industries.

Potential futures for road transportation CO2 emissions in the Asia Pacific

Abstract: Will future transportation carbon dioxide (CO2) emissions per capita in Asia Pacific economies follow historical trends of the now developed world? Evidence to date is inconclusive. A comparison at similar income levels (purchasing power parity) between recent emissions in Asia Pacific countries and historical emissions in developed countries suggests diverging patterns. (A) High‐income Asia economies (Japan, Hong Kong and Singapore –‘low emitters’) exhibit lower emissions than a selected sample of seven developed countries (United States, Australia, France, the Netherlands, Italy, Sweden and United Kingdom). (B) Another set of Asian countries (South Korea and Taiwan –‘medium emitters’) follow the emissions trends of European countries, which are lower than those of Australia and the United States. (C) A third Asian group (Malaysia and Thailand –‘high emitters’) exhibit emission trends comparable to that of Australia. We describe these trends, examine their causes and extrapolate likely futures for emissions in low‐income Asia Pacific economies (China, Indonesia, Philippines and Vietnam). Although such predictions are speculative, the available evidence suggests that road CO2 emissions for Indonesia, the Philippines and Vietnam will follow those of the third group (high emitters), while those for China may follow either Group B or Group C.

A Conversation with Helen Hughes

Helen Hughes was a founding member of the International Advisory Board of the Journal of the Asia Pacific Economy. She has been a leading thinker in development economics, especially in Asia Pacific economies. Helen Hughes was one of the few development economists to have foreseen the rapid transformation of East Asian economies in the 1960s. This interview with Helen Hughes, Distinguished Fellow of the Economic Society of Australia, was conducted in September 2006. It is a characteristically frank and open account of her career, her achievements in the profession and work at the World Bank.

Special issue on Socio-economic issues confronting Pacific island economies

Special issue on Socio-economic issues confronting Pacific island economies

The Asia Pacific Region's Security & Multilateral Negotiation on the North Korean Issue (2002 Through Dec. 8, 2006)

At the APEC's 14th Leaders' Conference in Hanoi Vietnam on November 19, 2006, leaders of member economies of the Asia - Pacific Economic Cooperation (APEC) outlined their commitment to encouraging and advancing free trade and investment. They also confirmed their intention to enhance human security and building stronger societies and harmonious communities throughout the regions. Foreign and trade ministers from 21 Pacific Rim economies affirmed their continued support for World Trade Organization (WTO) negotiations on the Doha Development Agenda. The leaders stressed that the consequences of the failure of the Doha Round would be too grave for their economies and for the global multilateral trading system. They also resolved to try to break current deadlocks and achieve an ambitious and overall balanced outcome of the Round by focusing on development issues.

Faster Growth of Road Transportation CO2 Emissions in Asia Pacific Economies: Exploring Differences in Trends of the Rapidly Developing and Developed Worlds

Researchers have identified how in some rapidly developing countries, road and aviation transportation CO2 emissions are rising faster (over time) when compared to the experiences of the USA at similar levels of economic development. While suggestive of how experiences of the rapidly developing Asia are different from those of the developed world these studies have used only one developed country for comparison, the USA, arguably a special case when it comes to transportation. To address this point this research compares the road transportation CO2 experiences of rapidly developing Asian economies (Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan and Thailand) with the USA and six other developed economies (Australia, France, the Netherlands, Italy, Sweden and the United Kingdom). The findings confirm previous results, to wit, Asian economies demonstrate faster annual growth of CO2 emissions in comparison to the experiences of the developed world.

Pacific Utopias and National Identities in the Twenty-first Century

Literary representations of the Pacific invariably present images of peaceful utopias/paradises especially in tourist brochures aimed at garnering the tourist dollar. These utopias are far removed from the tensions of a world haunted by the threat of terrorist activities and destruction which undermine global peace and security, especially since September 11th 2001. However, an examination of recent creative writing from writers of Oceania illustrate that these universal pressures and fears are evident in the local setting as well. Their fiction is full of the same angst, frustrations and dilemmas regarding cultural identities and cultural nationalism as those from their metropolitan neighbours in New Zealand and Australia. This essay will examine and analyse selected fiction from two such writers with a view to highlighting the conflicts emerging, especially in regards to the issues of political and cultural identities, indigeneity and the Pacific Paradise which is so much a part of the discourse of tourism, a major money earner for Pacific economies.

Guest Editor's Introduction: iSERVO-The International Solid Earth Research Virtual Observatory

The international Solid Earth Virtual Observatory (iSERVO; www.iservo.edu.au) is a planned partnership of primarily Asia Pacific economies interested in studying, forecasting, and mitigating the damaging effects of large and great earthquakes as well as the tsunamis they produce. The iSERVO concept is founded on the use of modern information technology to simulate the nonlinear dynamical earthquake and tsunami processes at all relevant scales, and to organize, collate, and interpret the massive new data sets that will be available in the partner countries beginning within the next three years.

ASSESSMENT OF PROGRESS IN CORPORATE RESTRUCTURING IN KOREA SINCE THE 1997–98 CRISIS

This paper shows, based on firm-level data, that by the time of the 1997–98 crisis, Korea's corporate sector, particularly chaebols, became highly vulnerable to bankruptcy. Evidence is presented showing that between the late 1980s and 1997 the debt servicing capacity of Korea's corporate sector was on a decreasing trend due to both deteriorating profit performance and a rising debt leverage. What accounted for the declining profitability in Korea's entire corporate sector? It is argued that the declining profitability was due to rising labor costs in Korea and increasing competition from abundant, developing countries such as China. We also provide evidences that the chaebols with ownership of non-bank financial institutions (NBFIs) had systemically higher debt leverage than the firms without any ownership in NBFIs. This paper moves to assess the interim progress of corporate restructuring since the onset of the crisis. First, the financial vulnerabilities of chaebols have improved significantly during the post-crisis period. Indeed, all indicators show that chaebols consistently out-performed non-chaebol companies following the crisis. In particular, chaebols were able to rapidly reduce their debts. Furthermore, although non-chaebols reduced their debt but at a lower extent, there were no signs of improvement in profitability. Second, the transition matrix based on interest payment coverage ratios shows that a high proportion of firms in the bottom quintile moved up to the upper quintiles, implying that the financially vulnerable firms are able to move up rather than being stuck with poor performance. Third, despite the considerable progress made in corporate restructuring, there remained quite a small number of impaired firms as of 2002; in that year, 25.2 percent of the sample firms are not able to even cover interest payments, let alone the principle, with earnings. Also, in the 2000–2002 period, there were 550 firms suffering similar conditions for three consecutive years. The number of financially weak firms clearly indicates that there still remains the need for further corporate restructuring. Finally, from our study it is reasonable to suggest that rehabilitation proceedings in Korea have made considerable improvements as a result of reform measures implemented following the crisis. The following reforms have worked to enhance rehabilitation procedures, including the introduction of an economic efficiency criterion for the selection of firms for corporate organization, shortened periods for proceedings, the improvement in the due diligence process, and preventing large firms with complex capital structures in entering composition. With all of these measures in place following the crisis, our study shows that the firms in the 1998 cohorts that entered both corporate reorganization and composition out-performed those in the respective cohort in 1997. Though it may be premature to make a definitive assessment, empirical tests suggest that the relatively poor performance of the firms in the workout may be attributed to a slower rate of debt reduction. This may be as a result of the slow progress in devising restructuring plans in the absence of a legal enforceability in workout programs.

Is there a yen optimum currency area? Evidence from 18 Asian and Pacific economies

This paper examines the macroeconomic costs and benefits of adopting a common currency (the yen) for 18 Asian and Pacific countries. Economic theory suggests that the main benefit is enhanced price stability, while the main cost is higher business-cycle volatility if the adopting country’s output is not sufficiently correlated with that of Japan. Using data from 1960–2001, the paper finds that the estimated cost and benefit measures exhibit substantial variability across the countries and are often positively correlated: countries (such as Bangladesh or Nepal) that have a lot to gain from adopting the yen, also have a lot to lose from it; while other economies (such as Singapore, Thailand, or Taiwan) that have little to lose by adopting the yen, have also little to gain by it. The empirical results can be also used to compare net benefits for individual countries, showing, for example, that Korea is a more promising candidate for adopting the yen than Pakistan or Malaysia.