A rapid export growth in East Asia was once identified as a source of the sustainable economic development that the region enjoyed. However, the current global recession has turned exports from an economic virtue to a vice. There is a growing awareness that a heavy reliance on exports has caused...

: This study employs panel data analysis to examine the relationship between exports and economic growth in five ASEAN (Association of South East Asian Nations) countries (i.e., Malaysia, Indonesia, the Philippines, Singapore and Thailand). Three separate methods have been used: (1) Pooled...

The Japanese government introduced new foreign aid guidelines in 1991 and it pledged to impose aid sanctions on those aid recipient countries whose governments violated human rights or democratic principles. The introduction of the new aid guidelines is expected to produce a certain effect on...

In this paper, Japan’s positive and negative aid sanctions policy toward Asian countries since the introduction of new aid guidelines will be examined and discussed. Japan can choose to impose negative aid sanctions (the suspension or a decrease in foreign aid) on recipient countries where...

Despite the availability of extensive research on Wagner s Law, a systematic empirical testing of the hypothesis in the context of developing countries, especially South-East Asian nations, is still lacking. Thus, the current paper attempts to reduce this gap and chooses Malaysia as a case study...

This paper uses the Generalized Method of Moments (GMM)-type of estimator of Arellano and Bond (1991) to analyze the dynamics of adjustment in foreign aid allocation over the period 2000-2005. The empirical findings reveal a complex nature of foreign aid allocations. On the one hand, the static...

For decades, the conventional wisdom for a developing nation striving to achieve an impressive economic growth has been to carve a niche in the global marketplace. However, empirical findings of various research studies on the “export-led growth†hypothesis do not provide a solid...

The hypothesized trade-off relationship between inflation rate and unemployment rate has been known as the “Phillips curveâ€. Though the Phillips curve has played an important role in the decision-making process on macroeconomic policy, there have been critics who doubted the existence...

At the end of the 1990s, the Japanese government distributed annually more than US$10 billion as foreign aid directly or indirectly to developing countries. Japan’s ODA can be divided into the following four groups: 1) Bilateral Grants, 2) Technical Co-operation, 3) Multilateral Aid, and 4)...

This paper examines Japan’s foreign aid sanction policy toward China. The Japanese government seems to be reluctant to take strict measures against China. Only due to strong criticisms from other aid donors did Japan cut aid to China. However, economic assistance was resumed as soon as Japan...