Asia Pathways

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Asia Pathways
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Asia Pathways is a blog of the Asian Development Bank Institute (ADBI). ADBI welcomes contributions to Asia Pathways. Information on how to contribute to the blog is available at our guidelines for authors.

Located in Tokyo, Japan, ADBI is the think tank of the Asian Development Bank. Its mission is to identify effective development strategies and improve development management in ADB's developing members countries. ADBI has an extensive network of partners in the Asia and Pacific region and beyond. ADBI's activities are guided by its three strategic priority themes of inclusive and sustainable growth, regional cooperation and integration, and governance for policies and institutions.

If Solar is the Way Forward, Projects will need Financing

Date: 26 September 2016

World energy demand is forecasted to grow by nearly one-third between 2015 and 2040. A large share of this increase will be from the power sector, and the global demand for electricity is likely to increase by more than70%, leading to a 16% increase in energy-related carbon dioxide (CO2) emissions by 2040. Despite the diplomatic success of the Conference of the Parties (COP) 21, it is clear that the current pledges by various countries in the form of Nationally Determined Contributions fall way short of the “well below 2-degrees Celsius” goal agreed to by world leaders in Paris.

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Can Negative Interest Rates be Beneficial?

Date: 21 September 2016

The ultra-low and negative interest rate environment in advanced economies and its implications for the rest of the world are currently among the top concerns of financial market participants and policy makers worldwide. Mark Carney, the governor of the Bank of England, recently said the low interest rate equilibrium1 is one of the challenges in which the global economy risks becoming trapped.

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Mixed Results in the Rest of Asia over the BOJ's Policy Decisions

Date: 13 September 2016

Like other central banks in advanced countries, the Bank of Japan (BOJ) adopted an unconventional monetary policy after the 2007–2009 global financial crisis (GFC). After Prime Minister Abe advocated the new policy regime, Abenomics, the BOJ became highly aggressive in its unconventional policy (see, for example, Fukuda [2015] for details). On 4 April 2013, BOJ Governor Kuroda introduced quantitative and qualitative monetary easing (QQE) and committed to achieve a 2% inflation target in 2 years.

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Japan's Double Economic Whammy

Date: 26 August 2016

In February 2016, the Bank of Japan (BOJ), in order to reach a 2% inflation target, initiated a negative interest rate policy by increasing massive money supply through the purchase of long-term Japanese government bonds (JGBs).

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Stabilizing Philippine Economic Growth from the Bottom Up

Date: 23 August 2016

The local business community is upbeat with the passing into law of Republic Act 10744, otherwise known as the Credit Surety Fund Cooperative Act of 2015 on 6 February 2016. Essentially, the said law provides for the creation and organization of the Credit Surety Fund (CSF) cooperatives to manage and administer credit surety funds and to enhance the accessibility of micro, small, and medium-sized enterprises (MSMEs); cooperatives; and nongovernment organizations (NGOs) to bank credit facilities.

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South Asia Healthcare Innovation Moves Ahead

Date: 10 August 2016

The countries comprising the South Asian Association for Regional Cooperation (SAARC) region (India, Pakistan, Bangladesh, Nepal, Bhutan, Afghanistan, Sri Lanka, and the Maldives) commonly known as South Asia face serious healthcare affordability and accessibility challenges.

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External and Internal R&D would Benefit Pakistani and Indian SMEs

Date: 3 August 2016

Small and medium-sized enterprises (SMEs) play a vital role in the economic growth of a country. Specifically, in developing countries where poverty, unemployment, low income per capita, low literacy rate, and high inflation and interest rates can hinder economic growth, SMEs contribute significantly to the national income and provide employment opportunities (Moktan 2007).

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The Link between Outward-Looking Trade Policies and Rapid Economic Growth

Date: 28 July 2016

Since trade started being emphasized as a locomotive of growth, export promotion trade policies have become a popular option for countries in search of higher economic growth rates. East Asian countries in particular have witnessed a distinct success in terms of rapid economic growth after the adoption of outward-looking trade policies.

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For Africa, South Korea Sets a Knowledge-Economy Example

Date: 22 July 2016

Twenty-first century competition is centered on the knowledge economy, with Europe and North America inexorably charting the course of development in the international arena. In calculated steps, Latin America and Asia have been asserting the need for enhanced knowledge economy strategies in their own pursuits of national and regional development. The historic pattern formulated by Japan has set the course for the People’s Republic of China (PRC), Malaysia, and the newly industrialized economies of Asia.

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Digital Finance's Rapid Growth Across Asia

Date: 20 July 2016

Over 31 million consumers in Vietnam researched or purchased a product online in 2015. Just ten years ago, internet connectivity was only starting to become common. Digitization is changing how people trade. There are even more dramatic changes happening under the hood. The way trade is financed, processed and regulated has entered a period of disruption. We take this opportunity to consider the short and long-term implications of digitization of the trade process. They’re not what you’d expect.

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Federal Reserve Decisions Effect on Emerging Markets

Date: 14 July 2016

If the United States Federal Reserve tightens or eases monetary conditions, this impacts emerging economies. Over the years since the global financial crisis, a second type of spillover has emerged: spillovers stemming from the uncertainty about future monetary policy. Uncertainty spillovers exist above and beyond those stemming from specific policy steps.

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Government Support of SME's is not a Bad Thing

Date: 8 July 2016

Small and medium-sized enterprises (SMEs) in developing economies often have difficulties improving their technological capabilities in terms of product or process innovation. Therefore, some kind of government support is necessary.

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Some Asian Economies can Enjoy the TPP and RCEP

Date: 5 July 2016

Talks just concluded in Auckland, New Zealand on Saturday show that plans for the Regional Comprehensive Economic Partnership (RCEP) are advancing. Just as both Hillary Clinton and Donald Trump, the next potential leaders of the Trans-Pacific Partnership’s (TPP) biggest partner—the US—have distanced themselves from the agreement. Some even suggest that the US Congress won’t ratify the TPP agreement, and warn that the world economy risks US isolationism.

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Asian Capital Flow Determinants

Date: 1 July 2016

Earlier literature examined determinants of international capital flows especially during the period of high and persistent capital inflows to emerging economies during 2009–2013.1 The literature mainly identified the push and pull factors and explained how these factors affect the capital flows into emerging Asia “on average.” In other words, the literature calculated the effects of these factors “on the mean” of the distribution of capital flows.

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WTO: The U.S. Must Really not Like Seung Wha Chang

Date: 27 June 2016

A U.S. decision to block the reappointment of Seung Wha Chang, a South Korean member of the appellate body of the World Trade Organization, has put at risk the independence and credibility of the WTO’s dispute settlement mechanism — the crown jewels of the multilateral trading system. After the de facto collapse of the Doha round of talks on further trade liberalization the U.S. move is a serious blow for the WTO.

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When Unconventional Monetary Policy Becomes Conventional

Date: 9 June 2016

One of the most significant new developments in the global post-global financial crisis (GFC) economy is the enormous asset purchase programs implemented by central banks in the industrial world to stimulate their economies. Widely known as quantitative easing (QE) programs, their impact has been substantial.

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Is the Slowing Asian Economy Secular in Nature?

Date: 3 June 2016

A gloomy outlook is enveloping the world’s economies. There are concerns too that countries are failing to sufficiently focus on long term policy responses to reverse the decline in global growth. Some argue that the global growth slowdown may be permanent, highlighting the danger of a period of chronically low growth, or what economists term “secular stagnation.”

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If Trade Costs Rise, SMEs will Suffer

Date: 20 May 2016

Small and medium-sized enterprise (SME) exporters have the potential to change the world. They are innovative, they are often young, and they are competitive. Yet globally, they can expect more than half (52%) of their proposals to finance trade transactions to be rejected by banks.

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