South and Southeast Asian economic integration via increased trade flows has been increasing significantly over the past 2 decades, but the level of trade continues to be relatively low. This underperformance has been due to both policy-related variables—relatively high tariff and...

South and Southeast Asian economic integration via increased trade flows has been increasing significantly over the past 2 decades, but the level of trade continues to be relatively low. This underperformance has been due to both policy-related variables—relatively high tariff and...

We present a theoretical framework for policy making based on the “impossible trinity†or the “trilemma†hypothesis. A simple optimization model shows that placing more weight in terms of preference for each of the three open macroeconomic policies—exchange rate...

This paper extends our previous paper (Aizenman, Chinn, and Ito 2008) and explores some of the unexplored questions. First, we examine the channels through which the trilemma policy configurations affect output volatility. Secondly, we investigate how trilemma policy configurations affect the...

In Pacific Asia, globalization has resulted in rapidly growing international flows of goods, portfolio capital, and direct investments. At the same time, several countries shift from a command to market economy. Against this background, we analyze the perhaps most popular model used to depict...

In this paper I review the use of precautionary measures aimed at mitigating emerging markets exposure to fragility associated with financial integration. The discussion draws possible lessons from the ongoing global liquidity crisis. The fear of losing international reserves (IR) constrained...

Realizing its importance, the South Asian region has also embarked upon various processes of regional economic integration. However, the South Asian regional integration process is fraught with difficulties, especially due to a lack of understanding about the very economics of regional economic...

The comparison of the key features of trade integration processes and the economic outcomes in China and India reveals that while much has already been achieved in both these economies, the Chinese reforms, especially with respect to manufacturing trade, have gone further and that this is likely...

It is generally believed that Japan's cost-oriented and export-oriented direct investment has introduced a bilateral intra-industry trade pattern in ChinaJapan trade through which China imports accessories from Japan, processes them and exports the product to Japan. Based on investment and trade...

Japanese foreign direct investment (FDI) into China is an important aspect of one of the largest bilateral economic relationships in the world. The bilateral FDI is analysed using an FDI model combined with stochastic frontier analysis to explain the determinants of FDI, measure the performance...