Modeling for the world crude oil and natural gas markets

Crude oil and natural gas have been essential energy sources and play a crucial role in the world economy. Changes in energy prices significantly impact economic growth. This study builds an econometric model to illustrate the substitute relation between crude oil and natural gas markets. Additionally, the determination of the oil and natural gas prices are endogenized, assuming imperfect competition to reflect a real market strategy. Our empirical results show that the overall performance of this system is acceptable, and the model can be applied to policy analysis for determining monetary or energy policy by introducing this model to the more comprehensive system.

Foreign Direct Investment Relations between Myanmar and ASEAN

Myanmar highly appreciates foreign direct investment (FDI) as a key solution reducing the development gap with leading ASEAN countries. Accordingly, it is welcomed by the government. Myanmar's Foreign Investment Law was enacted in 1988 soon after the adoption of a market-oriented economic system to boost the flow of FDI into the country. Foreign investors positively responded to these measures in the early years and FDI inflow into Myanmar gradually increased during the period from 1989 to 1996. However, after 1997, FDI inflow was dramatically reduced and markedly declined until 2004. In 2005, FDI inflow increased at an unprecedented rate and reached the highest level in the country's history. However, this growth was not sustainable in the subsequent years, as it declined again and turned stagnant at the previous level. In terms of source regions, ASEAN is a major investor in Myanmar, which investment is significantly exceeds the combined investment of other regions of the world. Among top ten countries, Thailand's investment alone is significantly more than combined total investments of the other nine countries. Next to Thailand in terms of investments in Myanmar are Singapore and Malaysia among ASEAN, at second and third places, respectively. The combined total FDI inflows into the power and oil and gas sector represent about 65 percent of the total investment. There are many opportunities for foreign investment in other sectors, which are not, yet exploited. ASEAN countries will certainly be source countries of Myanmar FDI in the future, and Myanmar should expand to other Asian countries like Japan, India, China, Korea, and Hong Kong where its FDI portfolio is concerned. To effectively attract FDI into the country, Myanmar needs to minimize the effect of policy while opening and encouraging other potential sectors of FDI to foreign investors in ASEAN and Asian countries.

Corruption in Kazakhstan and the quality of governance

In Kazakhstan, uncover of numerous corruption scandals involving government officials has become almost a normal feature of life. Behind the high-profile acts of waging a battle against corruption, however, is a serious and systemic phenomenon. The most endemic form of corruption is the various transfers of funds in the state structures and national companies which remain opaque and thus unaccounted for. There are questions about the volumes and spending of revenues earned from natural resources, and there is no independent monitoring and control of the flow of funds in national oil and gas companies. The main actors involved in the shadow economy are state officials and informal pressure groups, who distribute resources among themselves, and accumulate wealth by way of legalising informal incomes or obtaining official business using connections. While important decision making is carried out among the close circles of the elite, formal institutions remain weak and ineffective.

Myanmar's Economic Relations with China: Can China Support the Myanmar Economy?

Against the background of closer diplomatic, political and security ties between Myanmar and China since 1988, their economic relations have also grown stronger throughout the 1990s and up to 2005. China is now a major supplier of consumer and capital goods to Myanmar, in particular through border trade. China also provides a large amount of economic cooperation in the areas of infrastructure, energy and state-owned economic enterprises. Nevertheless, Myanmar’s trade with China has failed to have a substantial impact on its broad-based economic and industrial development. China’s economic cooperation apparently supports the present regime, but its effects on the whole economy will be limited with an unfavorable macroeconomic environment and distorted incentives structure. As a conclusion, strengthened economic ties with China will be instrumental in regime survival, but will not be a powerful force affecting the process of economic development in Myanmar.

ロシアの中東政策 -- プーチン大統領のシリア政策を通じて

The active initiative taken by Russian President Vladamir Putin by bombarding the antigovernment forces in Syria at the end of September 2015 startled the world by its precalculated boldness. Russian intervention has radically changed the dynamic of the war by empowering the Syrian government of Bashar Assad, and has resulted in a ceasefire agreement which starts on 27th February 2016, led by Russia and the US. No one can predict at present the next stage of conflicts in Syria or whether it will result in a positive solution to the tragic wars there. However, there is no denying the fact that Russia has played an important role in the development of the game. This paper analyzes the motivations of Putin in intervening in the Syrian crisis and the factors which have enabled Russia to play an enlarged role in the Middle East, seemingly beyond its objective capabilities. Legacies of international networks built during the Soviet period; shrewd tactics in making use of the inconsistency and vacillation of US policies, particularly towards the Middle East; its historical experience of interaction with the Muslim cultures, including domestic ones; its geopolitical perception of world politics, and the export of energy resources and military weapons as tools of diplomacy are some of the factors which explain Russian behavior. At the same time, the personal leadership and accumulated experience of President Putin in formulating Russian diplomacy and in manipulating different issues in a combined policy should be taken into account. His initiative in Syria succeeded to some extent in turning world attention away from the Ukrainian issue, aimed at changing the present sanctions imposed by the West. Another phenomenon to be noted in the international arena is the newly developed mutual interaction between Russia and the Arab countries in the Gulf. Frequent visits to Russia by autocratic leaders, including kings, emirsand princes do not always reflect a shared common interest between Russia and the Arab leaders. On the contrary, in spite of sharp and fundamental differences in their attitude toward the issues related to Syria, Iran and Yemen, the Arab leaders find it necessary to communicate with Russia and to know Russia’s expected strategies and intentions towards the Middle East, apart from its oil and gas policies. The Iran deal on the nuclear issue in July 2015 may have been a factor behind the phenomena.