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Foreign direct investment and China's bilateral intra-industry trade with Japan and the US
Xing, Yuqing - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2007
This paper analyzes dynamic changes of China's intra-industry trade with its major trading partners, Japan and the US … empirical results show that, while shares of China's intra-industry trade with both Japan and U.S rose substantially, its intra … indicates that Japanese direct investment in China performed a significant role in enhancing intra-industry trade between Japan …
Persistent link: https://www.econbiz.de/10005648602
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Exchange rate policy and the relative distribution of FDI among host countries
Xing, Yuqing - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2006
This paper examines the FDI-exchange rate nexus in the context of one FDI source and two host countries. It focuses on … the effect of exchange rates on relative FDI inflows between the two host countries. The theoretical analysis shows … explicitly that relative FDI inflows are a function of relative real exchange rates. In particular, if one host country devalues …
Persistent link: https://www.econbiz.de/10005648617
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The credibility of Hong Kong’s currency board system: Looking through the prism of MS-VAR models with time-varying transition probabilities
Blagov, Boris; Funke, Michael - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2014
This paper takes seriously the idea that the coefficients of a VAR and the variance of shocks may be time-varying and so employs a Markov regime-switching VAR model to describe and analyse the time-varying credibility of Hong Kong’s currency board system. The endogenously estimated discrete...
Persistent link: https://www.econbiz.de/10010945006
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A DSGE-Based Assessment of Nonlinear Loan-to-Value Policies: Evidence from Hong Kong
Funke, Michael; Paetz, Michael - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2012
In the wake of the 2008-2009 global financial crisis, the macroeconomic discussion has returned to the topic of proactive macroprudential policies. One proactive approach, the use of loan-to-value (LTV) policies to curb booming property markets, has long been used by Hong Kong’s monetary...
Persistent link: https://www.econbiz.de/10010545768
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What Can an Open-Economy DSGE Model Tell Us about Hong Kong’s Housing Market?
Michael, Funke; Michael, Paetz - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2010
This paper develops an open-economy DSGE model with a housing-market sector and a borrowing constraint. Contrary to standard conventions, domestic households are allowed to invest in foreign housing and vice versa. Using Bayesian methods, the model is applied to data for Hong Kong. The results...
Persistent link: https://www.econbiz.de/10008727659
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Off-the-record target zones: Theory with an application to Hong Kong's currency board
Chen, Yu-Fu; Funke, Michael; Glanemann, Nicole - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2010
This paper provides a modelling framework for evaluating the exchange rate dynamics of a target zone regime with undisclosed bands. We generalize the literature to allow for asymmetric one-sided regimes. Market participants' beliefs concerning an undisclosed band change as they learn more about...
Persistent link: https://www.econbiz.de/10008516092
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Stock market wealth effects in an estimated DSGE model for Hong Kong
Funke, Michael; Paetz, Michael; Pytlarczyk, Ernest - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2009
This paper develops and estimates an open economy dynamic stochastic general equilibrium (DSGE) model of the Hong Kong economy. The model features short-run price rigidities generated by monopolistic competition and staggered reoptimisation. The model is enhanced with wealth effects due to stock...
Persistent link: https://www.econbiz.de/10008477161
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The regime-dependent evolution of credibility: A fresh look at Hong Kong’s linked exchange rate system
Blagov, Boris; Funke, Michael - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2013
An estimated Markov-switching DSGE modelling framework that allows for parameter shifts across regimes is employed to test the hypothesis of regime-dependent credibility of Hong Kong’s linked exchange rate system. The model distinguishes two regimes with respect to the time-series properties...
Persistent link: https://www.econbiz.de/10010818579
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A soft edge target zone model: Theory and application to Hong Kong
Chen, Yu-Fu; Funke, Michael; Glanemann, Nicole - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2009
Hong Kong’s currency is pegged to the US dollar in a currency board arrangement. In autumn 2003, the Hong Kong dollar appreciated from close to 7.80 per US dollar to 7.70, as investors feared that the currency board would be abandoned. In the wake of this appreciation, the monetary authorities...
Persistent link: https://www.econbiz.de/10008563372
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China in the world economy: Dynamic correlation analysis of business cycles
Fidrmuc, Jarko; Korhonen, Iikka; Bátorová, Ivana - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2008
We analyze the business cycles in China and in selected OECD countries between 1992 and 2006 using dynamic correlations … longer history of intensive trading links tend to show slightly higher correlations of business cycles with China. Even … though trade and financial flows do not really increase correlations of business cycles between China and OECD countries …
Persistent link: https://www.econbiz.de/10005190677