Industrial deepening in East Asia

Structural transformations are an indispensable element of sustained economic growth. Within the context of East Asia, this study focuses on industrial deepening, which refers to the formation of local linkages and the creation of a robust local supplier base. To investigate the progress of industrial deepening, this study introduces two kinds of domestic procurement measures in addition to the previously developed local content measures. Specifically, two kinds of vertical specialization measures are used to demonstrate the degree to which respective East Asian economies are specialized within their vertical production networks. The results clearly show that the advancement of production networks is likely to reduce domestic procurement ratios, even if local supplier bases are strengthened in the respective countries. Moreover, the trend of domestic procurement ratios differs depending on the characteristics of particular industries and the industrial policies adopted by individual countries.

The supply chain in East Asia

East Asia is a major tea-consuming and -producing area; however, few studies have examined the East Asian tea industry from the perspective of the supply chain. Based on field and desktop studies of the tea markets in Taiwan and China, this paper provides an overview of each market together with detailed case studies. In this analysis, the characteristics of the tea industry and the main problems in the current supply chain in terms of governance, upgrading, and food safety and quality control are identified. This paper will help fill the gap in studies of the East Asian tea industry from the perspective of the supply chain.

Asian genotypes of JC virus in Native Americans and in a Pacific Island population: Markers of viral evolution and human migration

The human polyomavirus JC (JCV) causes the central nervous system demyelinating disease progressive multifocal leukoencephalopathy. Previously, we showed that 40% of Caucasians in the United States excrete JCV in the urine as detected by PCR. We have now studied 68 Navaho from New Mexico, 25 Flathead from Montana, and 29 Chamorro from Guam. By using PCR amplification of a fragment of the VP1 gene, JCV DNA was detected in the urine of 45 (66%) Navaho, 14 (56%) Flathead, and 20 (69%) Chamorro. Genotyping of viral DNAs in these cohorts by cycle sequencing showed predominantly type 2 (Asian), rather than type 1 (European). Type 1 is the major type in the United States and Hungary. Type 2 can be further subdivided into 2A, 2B, and 2C. Type 2A is found in China and Japan. Type 2B is a subtype related to the East Asian type, and is now found in Europe and the United States. The large majority (56–89%) of strains excreted by Native Americans and Pacific Islanders were the type 2A subtype, consistent with the origin of these strains in Asia. These findings indicate that JCV infection of Native Americans predates contact with Europeans, and likely predates migration of Amerind ancestors across the Bering land bridge around 12,000–30,000 years ago. If JCV had already differentiated into stable modern genotypes and subtypes prior to first settlement, the origin of JCV in humans may date from 50,000 to 100,000 years ago or more. We conclude that JCV may have coevolved with the human species, and that it provides a convenient marker for human migrations in both prehistoric and modern times.

The Evolving Integration in East Asia - Too many reservations? CEPS Essay No. 5, 29 April 2013

East Asian economic integration is less well known in Europe than is desirable in the EU’s own enlightened self-interest. It is also badly understood, not least because a range of ‘soft’ cultural, historical and political aspects are insufficiently appreciated in Europe. This CEPS Essay offers a deeper personal reflection on the emergence and development of East Asian economic cooperation and market-driven integration. It attempts to address some of the lingering reservations on both sides and to render the reservations in East Asia more intelligible to Europeans.

Pliocene-Pleistocene stack of globally distributed benthic stable oxygen isotope records

We present a 5.3-Myr stack (the ''LR04'' stack) of benthic d18O records from 57 globally distributed sites aligned by an automated graphic correlation algorithm. This is the first benthic delta18O stack composed of more than three records to extend beyond 850 ka, and we use its improved signal quality to identify 24 new marine isotope stages in the early Pliocene. We also present a new LR04 age model for the Pliocene-Pleistocene derived from tuning the delta18O stack to a simple ice model based on 21 June insolation at 65 N. Stacked sedimentation rates provide additional age model constraints to prevent overtuning. Despite a conservative tuning strategy, the LR04 benthic stack exhibits significant coherency with insolation in the obliquity band throughout the entire 5.3 Myr and in the precession band for more than half of the record. The LR04 stack contains significantly more variance in benthic delta18O than previously published stacks of the late Pleistocene as the result of higher resolution records, a better alignment technique, and a greater percentage of records from the Atlantic. Finally, the relative phases of the stack's 41- and 23-kyr components suggest that the precession component of delta18O from 2.7-1.6 Ma is primarily a deep-water temperature signal and that the phase of d18O precession response changed suddenly at 1.6 Ma.

Pliocene-Pleistocene biostratigraphic datums of ODP Site 184-1148

Based on the stable isotopic analysis of planktonic and benthic foraminifers from Ocean Drilling Program Core 1148 of the northern South China Sea (SCS), Pliocene-Pleistocene isotope stratigraphy and events have been reconstructed. The benthic foraminiferal delta18O record shows that the Pacific intermediate water had a greater influence upon the SCS or the Pacific deep water above ~2600 m was warmer before ~3.2Ma than at present. After that, the benthic delta18O conspicuously increased during the ~3.2-2.5 Ma period, in correspondence to the formation of the Northern Hemisphere ice sheet, whereas the planktonic delta18O signal suggests a stepwise overall decrease of sea surface temperature during the ~2.2-0.9 Ma period. Compared to the equatorial Pacific records, the decrease in planktonic (Globigerinoides ruber) delta13C during the ~3.2-2.2 Ma period is particularly striking, suggesting that fertility of surface water increased noticeably. According to the modern delta13C distribution of G. ruber in the northern SCS, it is inferred that the East Asian winter monsoon strengthened during this interval. Afterwards, there were several conspicuous decreases of G. ruber delta13C at ~1.7, 1.3, 0.9, 0.45 and 0.15 Ma BP, that is, about every 0.4 Ma, suggesting that the East Asian winter monsoon became episodically stronger. This is confirmed by changes in relative abundance of planktonic foraminifer species Neogloboquadrina dutertrei, a typical East Asian winter monsoon proxy. The deepwater delta13C of the SCS is close to that of the Pacific, but lighter than that of the Atlantic, implying that the pattern of deep water originating mainly from the Atlantic and through the Pacific entering the SCS existed at least since the early Pliocene. After 1.4 Ma, the benthic delta13C signal decreased conspicuously but with a periodicity of ~100 ka, suggesting that the deep-water ventilation of the SCS was reduced, probably corresponding to a decrease of the North Atlantic Deep Water and/or further isolation of the SCS deep basin from the Pacific during glaciations.

Food composition table for use in East Asia.

Includes bibliographical references.

The evolving role of research consortia in East Asia

Research consortia have played an important role in the economic success of several East Asian countries. This paper looks at the ways these consortia - which are created for strategic rather than cost-saving purposes - have evolved over time. Three models for institutional learning are suggested, and three case studies are presented of research consortia in each model. The cases demonstrate the centrality of learning in facilitating the development then transition from innovation diffusion capabilities to innovation generation capabilities in East Asian firms. Cases are provided of the Samsung Electronics in Korea, the clusters of firms that are associated with ITRI in Taiwan, and the technological development of Ericsson China. Reference is made to the use of institutional innovations in the East Asian context such as patent pools that supplement more conventional forms of R&D collaboration.

Evolution of capital structure in East Asia - corporate inertia of endeavours?

The paper examines the capital structure adjustment dynamics of listed non-financial corporations in seven east Asian countries before, during and after the crisis of 1997–1998. Our methodology allows for speeds of adjustment to vary, not only among firms, but also over time, distinguishing between cases of sudden and smooth adjustment.Whereas, compared with firms in the least affected countries, average leverages were much higher, generalized method-ofmoments analysis of the Worldscope panel data suggests that average speeds of adjustment were lower in the worst affected countries. This holds also for the severely financially distressed firms in some worst affected countries, though the trend reversed in the post-crisis period. These findings have important implications for the regulatory environment as well as access to market finance.

How does ownership structure affect capital structure and firm value?:Recent evidence from East Asia

The present paper examines the effects of ownership structures on capital structure and firm valuation. It argues that the effects of separation of control from cash flow rights on capital structure and firm value also depend on the separation of control from management as well as on legal rules and enforcement defining investors' protection. We obtain firm-level panel data (three stage least squares, 3SLS) estimates from four of the East Asian countries worst affected by the last crisis. There is evidence that the general wisdom that higher control than cash flow rights may lower firm value may be reversed among owner-managed family firms in the sample countries. © 2007 The Authors Journal compilation © 2007 The European Bank for Reconstruction and Development.

(Table 1) Age determination of sediment core KY07-04-PC1

Variations in Mg/Ca-based sea surface temperature and oxygen isotope ratio (d18O) of the surface water in the northern East China Sea (ECS) were reconstructed with high resolution during the last 18 kyr using planktic foraminifera. Millennial-scale variations between warmer, more saline surface water and cooler, less saline surface water were recognized during the early deglacial period and the Holocene, suggesting changes in the mixing ratio between the Kuroshio Water and the Changjiang Diluted Water. Stronger East Asian summer monsoon (EASM) precipitation events in south China are identified at 10.5, 8.8, 7.0, 5.3, 4.7, 2.9, 1.7, and 0.5 ka, based on sea surface salinity (SSS) records of the northern ECS. Weaker EASM precipitation events are also detected at 9.3, 8.3, 7.3, 6.0, 3.3, 2.3, 0.7, and 0.4 ka during the Holocene. These events agree with the maxima in d18O records of stalagmites from various parts of the Changjiang (Yangtze) River drainage. This agreement supports that our SSS record properly captures the millennial-scale dry (less EASM precipitation) events over the drainage basin of the Changjiang River during the Holocene. These dry events are also in good agreement with North Atlantic ice-rafted events, suggesting a teleconnection between North Atlantic climate and the EASM during the Holocene.

Neodymium isotopic ratios and clay mineral composition from ODP Hole 1147A and Site 184-1148

Ocean Drilling Program sampling of the distal passive margin of South China at Sites 1147 and 1148 has yielded clay-rich hemipelagic sediments dating to 32 Ma (Oligocene), just prior to the onset of seafloor spreading in the South China Sea. The location of the drill sites offshore the Pearl River suggests that this river, or its predecessor, may have been the source of the sediment in the basin, which accounts for only not, vert, similar ~1.8% of the total Neogene sediment in the Asian marginal seas. A mean erosion depth of not, vert, similar ~1 km over the current Pearl River drainage basin is sufficient to account for the sediment volume on the margin. Two-dimensional backstripping of across-margin seismic profiles shows that sedimentation rates peaked during the middle Miocene (11-16 Ma) and the Pleistocene (since 1.8 Ma). Nd isotopic analysis of clays yielded epsilonNd values of -7.7 to -11.0, consistent with the South China Block being the major source of sediment. More positive epsilonNd values during and shortly after rifting compared to later sedimentation reflect preferential erosion at that time of more juvenile continental arc rocks exposed along the margin. As the drainage basin developed and erosion shifted from within the rift to the continental interior epsilonNd values became more negative. A rapid change in the clay mineralogy from smectite-dominated to illite dominated at not, vert, similar 15.5 Ma, synchronous with middle Miocene rapid sedimentation, mostly reflects a change to a wetter, more erosive climate. Evidence that the elevation of the Tibetan Plateau and erosion in the western Himalaya both peaked close to this time supports the suggestion that the Asian monsoon became much more intense at that time, much earlier than the 8.5 Ma age commonly accepted.

Description of loess sections in China

The magnetic susceptibility of loess and paleosols in central China represents a proxy climate index closely related to past changes of precipitation and vegetation, and thus to summer monsoon intensity. Time series of magnetic susceptibility constructed for three loess-paleosol sequences in the southern part of the Chinese Loess Plateau document the history of summer monsoon variation during the last 130,000 yr. They correlate closely with the oxygen isotope record of stages 1 to 5 in deep-sea sediments. Soils were forming during intervals of strong summer monsoon, whereas loess units were deposited at times of reduced monsoon intensity. The Chinese loess-paleosol sequence can thus be viewed as a proxy record of Asian monsoon variability extending over the last 2.5 myr.