Trade, Exchange Rates, and Macroeconomic Dynamics in East Asia: Why the Electronics Cycle Matters

Against the background of increasing regional trade and investment, there is growing interest in monetary and macroeconomic policy coordination in East Asia. Although there is a sizable literature on macroeconomic linkages among East Asian countries and the potential merit of policy coordination in the region, the existing studies tend to examine these issues exclusively in terms of macroeconomic variables and do not consider how these aggregate variables are influenced by one prominent feature of a number of East Asian economies: their heavy dependence on the electronics industry. Although active engagement in the global electronics industry has been a powerful growth engine for the Asian countries, it has also left their economies vulnerable to cyclical fluctuations in the world electronics market. As the cycle of the global electronics industry exerts profound impacts on the medium-term dynamics of the Asian economies, it is imperative to take an explicit account of its influence when studying the way in which the regional economies are linked to one another and how this relationship can be altered by a specific policy initiative. We illustrate the importance of this point by examining recent studies on: (1) trade competition between China andother Asian countries and the role of the Chinese renminbi therein; and (2) the effect offluctuations in the yen/dollar exchange rate on the regional economies.

Exploiting the Modularity of Value Chains: Inter-firm Dynamics of the Taiwanese Notebook PC Industry

This paper explores the inter-firm dynamics that govern the rise of capabilities of latecomer firms operating in global value chains. By extending and modifying the model proposed by Gereffi, Humphrey and Sturgeon [2005], I present a framework in which the rise of supplier capabilities is determined by interactions among the strategies of the firms. Based on a case study of the Taiwanese notebook PC industry, the paper will explore how the interactions among outsourcing strategies by lead firms from the developed countries, the learning strategies of Taiwanese suppliers, and the product strategy of powerful component vendors have driven the explosive growth of the industry after the 1990s. By so doing, the paper attempts to highlight the active roles firms play in determining the speed and direction of the rise in supplier capabilities.

Value Chain Dynamics and Growth of Local Firms:The Case of Motorcycle Industry in Vietnam

Vietnam’s burgeoning market for motorcycles has attracted global industry eaders,players from developing countries, and local firms. This has led to a dynamic evolution of value chains. This paper presents an explanation of the varieties of the growth patterns xperienced by the local suppliers, focusing on the roles of customer and local supplier strategies. Case studies showed that while the role of customers may be important, strategies of suppliers to improve the ompetitive edge in the production of otorcycle components and to diversify into other products account for important ariations of growth trajectories among local suppliers. Findings presented in this paper suggest the need to direct more attention to strategy that local firms use to boost their competitive edge in business.

Innovating global value chains : creation of the netbook market by Taiwanese firms

This paper explores the process of creation of the netbook market by Taiwanese firms as an example of a disruptive innovation by latecomer firms. As an analytical framework, I employ the global value chain perspective to capture the dynamics of vertical inter-firm relationships that drive some firms in the chain to change the status quo of the industry. I then divide the process of the emergence of the netbook market into three consecutive stages, i.e. (1) the launch of the first-generation netbook by a Taiwanese firm named ASUSTeK, (2) the response of the two powerful platform leaders of the industry, Intel and Microsoft Intel, to ASUSTeK’s innovation, and (3) the market entry by another powerful Taiwanese firm, Acer, and explain how Taiwanese firms broke the Intel-centric market and tapped into the market-creating innovation opportunities that had been suppressed by the two powerful platform leaders. I also show that the creation of the netbook industry was an evolutionary process in which a series of responses by different industry players led to changes in the status quo of the industry.

From foot-draggers to strategic counter-partners : the dynamics of U.S. and Chinese policies for tackling climate change

As can been seen from the U.S.'s non-ratification of the Kyoto Protocol, together with the negotiations toward the post-Kyoto Protocol framework, the U.S. and China have been quarrelling over their responsibilities and have contradicted one another over the introduction of compulsory domestic greenhouse gases emission reduction targets. Therefore, for a long time, it has been argued that the controversy between the two countries has hindered the process of forging an international agreement to deal with climate change. On the other hand, Sino-U.S. bilateral cooperation on climate change has significantly increased in recent years in summit talks and their Strategic & Economic Dialogue (S&ED), especially after the 15th Conference of Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC) in Copenhagen, one of whose aims was to facilitate positive negotiations for the post-Kyoto Protocol agreement. Analyzing this in the light of recent developments, we find that the U.S. and China have tended to address climate change and related issues from a pluralistic viewpoint and approach, by regarding the achievement of bilateral cooperation and global agreements as their common strategic objective.

Spatial linear global instability analysis of the HIFiRE-5 elliptic cone model flow

The linear instability of the three-dimensional boundary-layer over the HIFiRE-5 flight test geometry, i.e. a rounded-tip 2:1 elliptic cone, at Mach 7, has been analyzed through spatial BiGlobal analysis, in a effort to understand transition and accurately predict local heat loads on next-generation ight vehicles. The results at an intermediate axial section of the cone, Re x = 8x10 5, show three different families of spatially amplied linear global modes, the attachment-line and cross- ow modes known from earlier analyses, and a new global mode, peaking in the vicinity of the minor axis of the cone, termed \center-line mode". We discover that a sequence of symmetric and anti-symmetric centerline modes exist and, for the basic ow at hand, are maximally amplied around F* = 130kHz. The wavenumbers and spatial distribution of amplitude functions of the centerline modes are documented

Land cover dynamics and climate change implications on water resources in South Pacific Costa Rica

Water is fundamental to human life and the availability of freshwater is often a constraint on human welfare and economic development. Consequently, the potential effects of global changes on hydrology and water resources are considered among the most severe and vital ones. Water scarcity is one of the main problems in the rural communities of Central America, as a result of an important degradation of catchment areas and the over-exploitation of aquifers. The present Thesis is focused on two critical aspects of global changes over water resources: (1) the potential effects of climate change on water quantity and (2) the impacts of land cover and land use changes on the hydrological processes and water cycle. Costa Rica is among the few developing countries that have recently achieved a land use transition with a net increase in forest cover. Osa Region in South Pacific Costa Rica is an appealing study site to assess water supply management plans and to measure the effects of deforestation, forest transitions and climate change projections reported in the region. Rural Community Water Supply systems (ASADAS) in Osa are dealing with an increasing demand of freshwater due to the growing population and the change in the way of life in the rural livelihoods. Land cover mosaics which have resulted from the above mentioned processes are characterized by the abandonment of marginal farmland with the spread over these former grasslands of high return crops and the expansion of secondary forests due to reforestation initiatives. These land use changes have a significant impact on runoff generation in priority water-supply catchments in the humid tropics, as evidenced by the analysis of the Tinoco Experimental Catchment in the Southern Pacific area of Costa Rica. The monitoring system assesses the effects of the different land uses on the runoff responses and on the general water cycle of the basin. Runoff responses at plot scale are analyzed for secondary forests, oil palm plantations, forest plantations and grasslands. The Oil palm plantation plot presented the highest runoff coefficient (mean RC=32.6%), twice that measured under grasslands (mean RC=15.3%) and 20-fold greater than in secondary forest (mean RC=1.7%). A Thornthwaite-type water balance is proposed to assess the impact of land cover and climate change scenarios over water availability for rural communities in Osa Region. Climate change projections were obtained by the downscaling of BCM2, CNCM3 and ECHAM5 models. Precipitation and temperature were averaged and conveyed by the A1B, A2 and B1 IPCC climate scenario for 2030, 2060 and 2080. Precipitation simulations exhibit a positive increase during the dry season for the three scenarios and a decrease during the rainy season, with the highest magnitude (up to 25%) by the end of the 21st century under scenario B1. Monthly mean temperature simulations increase for the three scenarios throughout the year with a maximum increase during the dry season of 5% under A1B and A2 scenarios and 4% under B1 scenario. The Thornthwaite-type Water Balance model indicates important decreases of water surplus for the three climate scenarios during the rainy season, with a maximum decrease on May, which under A1B scenario drop up to 20%, under A2 up to 40% and under B1 scenario drop up to almost 60%. Land cover scenarios were created taking into account current land cover dynamics of the region. Land cover scenario 1 projects a deforestation situation, with forests decreasing up to 15% due to urbanization of the upper catchment areas; land cover scenario 2 projects a forest recovery situation where forested areas increase due to grassland abandonment on areas with more than 30% of slope. Deforestation scenario projects an annual water surplus decrease of 15% while the reforestation scenario projects a water surplus increase of almost 25%. This water balance analysis indicates that climate scenarios are equal contributors as land cover scenarios to future water resource estimations.

Global research alliance modelling platform (GRAMP): an open web platform for modelling greenhouse gas emissions from agro-ecosystems

Carbon (C) and nitrogen (N) process-based models are important tools for estimating and reporting greenhouse gas emissions and changes in soil C stocks. There is a need for continuous evaluation, development and adaptation of these models to improve scientific understanding, national inventories and assessment of mitigation options across the world. To date, much of the information needed to describe different processes like transpiration, photosynthesis, plant growth and maintenance, above and below ground carbon dynamics, decomposition and nitrogen mineralization. In ecosystem models remains inaccessible to the wider community, being stored within model computer source code, or held internally by modelling teams. Here we describe the Global Research Alliance Modelling Platform (GRAMP), a web-based modelling platform to link researchers with appropriate datasets, models and training material. It will provide access to model source code and an interactive platform for researchers to form a consensus on existing methods, and to synthesize new ideas, which will help to advance progress in this area. The platform will eventually support a variety of models, but to trial the platform and test the architecture and functionality, it was piloted with variants of the DNDC model. The intention is to form a worldwide collaborative network (a virtual laboratory) via an interactive website with access to models and best practice guidelines; appropriate datasets for testing, calibrating and evaluating models; on-line tutorials and links to modelling and data provider research groups, and their associated publications. A graphical user interface has been designed to view the model development tree and access all of the above functions.

On the role of global flow instability analysis in closed loop flow control

Control of linear flow instabilities has been demonstrated to be an effective theoretical flow control methodology, capable of modifying transitional flows on canonical geometries such as the plane channel and the flat-plate boundary layer. Extending the well-developed theoretical flow control techniques to flows over or through complex geometries requires addressing the issue of efficient capturing of the leading members of the global eigenspectrum pertinent to such flows. The present contribution describes state-of-the-art modal global instability analysis methodologies recently developed in our group, based on matrix formation and time-stepping, respectively. The relative performance of these algorithms is assessed on the recovery of BiGlobal and TriGlobal eigenspectra in the spanwise periodic and the cubic lid-driven cavity, respectively; the adjoint eigenspectrum in the latter flow is recovered for the first time. For three-dimensional flows without any homogeneous spatial direction, the time-stepping methodology was found to outperform the matrix-forming approach and permit recovering the leading TriGlobal eigenmodes in an three-dimensional open cavity of aspect ratio L : D : W = 5 : 1 : 1; theoretical flow control of this configuration is underway.