Impact of foreign capital entry in the Indonesian banking sector

After the Asian financial crisis of 1997/98, the Indonesian banking sector experienced significant changes. Ownership structure of banking sector is substantially-changed. Currently, ownership of major commercial banks is dominated by foreign capital through acquisition. This paper examines whether foreign ownership changes a bank’s lending behavior and performance. Foreign banks tend to lend mainly to large firms; this paper examines whether the credit to small and medium-sized enterprises (SMEs) is affected by foreign capital entry into the Indonesian banking sector. Empirical results show that banks owned by foreign capital tend to decrease SME credit.

Transition from black to official markets for foreign exchange in Myanmar

We address the puzzle why the black market for foreign exchange thrives in Myanmar despite the successful unification of multiple exchange rates. A closer look at the black market reveals that its enduring competitiveness stems from its lower transaction costs. A question arising from this observation is how the official market, namely banks, can compete with and replace the black market. Our empirical analysis based on an original questionnaire survey of private export firms regarding their choices of currency trading modes suggests that banks can attract exporters by exploiting the economies of scope between currency trading and lending.

Avoiding the middle income trap : indigenous innovative effort vs foreign innovative effort

This paper investigates how innovation potential of a country contributes to avoid or escape the middle income trap. We measure innovation potentials of 77 countries from 1975 to 2010 from patent data. Then, we test whether indigenous innovative efforts or foreign ones help avoid and escape middle income traps

Regime survival strategies and the conduct of foreign policy in Egypt

エジプトではムバーラク大統領の国内政策と域内におけるエジプトの影響力低迷が引き金となって、2011年1月25日に抗議運動起こった。抗議運動はエジプト全土に拡がり、18日間の民衆的な反体制運動によってムバーラクは軍に見捨てられ、失脚に追い込まれた。この民衆蜂起によって警察は街頭から撤退し、シナイ半島の警察署は焼き放たれ、ムバーラクが率いていた国民民主党の建物や国内治安機関の本部は襲撃され、国家機関が数ヶ月にもわたって機能不全となり、ムバーラク体制の崩壊は国内的な混乱を招くこととなった。振り返れば、エジプトでの政治的大変動は社会的な革命へと展開することはできなかった。その理由は独裁体制からの移行を先導できる組織化された反体制勢力が存在しなかったためである。民衆による抗議運動は一時的に体制を転覆できても旧体制のエリートを分裂させることはできず、軍の影響下にある体制の復活を防ぐこともできなかった。2011年以降のエジプトは現在まで混乱状態に陥ったままであるが、1カ月に及ぶエジプト軍最高評議会(SCAF)の暫定統治、エジプト史上初の自由な大統領選挙によって選出された文民大統領のムルスィーによる一年余りの統治、そして2013年7月の軍事クーデターによって権力の座に就いたスィースィーの統治といった過程で、民衆蜂起がエジプトの外交関係に及ぼした影響はごく僅かであった。本稿は、現在のエジプトの外交政策が2011年の革命にほとんど影響を受けていないのはなぜか、またエジプトの統治者たちが政権の正統性、体制の強化および政治的な安定性を確保し、国内的な課題に対処するための戦略をいかに策定しているのかを説明することを試みる。本稿での主張は、ムバーラク以降のエジプトが体制の強化と保全のために外交政策を進めており、国内的な混乱によって地域内アクターへの依存度が高まっていることである。

Impacts of foreign exchange auctions on the informal market rate in Myanmar

Since the abolition of the official peg and the introduction of a managed float in April 2012, the Central Bank of Myanmar has operated the daily two–way auctions of foreign exchange aimed at smoothing exchange rate fluctuations. Despite the reforms to the foreign exchange regime, however, informal trading of foreign exchange remains pervasive. Using the daily informal exchange rate and Central Bank auction data, this study examines the impacts of auctions on the informal market rate. First, a VAR analysis indicates that the official rate did not Granger cause the informal rate. Second, GARCH models indicate that the auctions did not reduce the conditional variance of the informal rate returns. Overall, the auctions have only a quite modest impact on the informal exchange rate.

The impact of foreign firms on industrial productivity : evidence from Japan

With a newly constructed dataset on foreign firms in Japan for the period 1995-2008 from firm-level surveys, this paper estimates the impact of foreign firms on industrial productivity at the regional level. A Bayesian-model averaging approach is taken to account for model uncertainty resulting from various linkages between foreign firms and domestic industries. The results show that the foreign firms may contribute to industrial efficiency directly through their above-average productivity and indirectly through positive spillovers in intra-industry and local backward linkages. Forward linkages with foreign firms may have a negative impact on industrial productivity. However, these impacts depend on the nationality and entry mode of foreign investors. Aggregating foreign firms may mask their distinctive impacts on productivity.