The International Economy
Online ISSN : 1884-4367
Print ISSN : 2186-6074
ISSN-L : 1884-4367
Volume 18
Showing 1-4 articles out of 4 articles from the selected issue
2014 JSIE Presidential Address:
  • Takekazu Iwamoto
    2015 Volume 18 Pages 1-19
    Published: 2015
    Released: March 08, 2016
    To begin with, we analyzed the contrasting structure of the US and Japan's international investment positions (IIPs) and their asymmetric movements of “valuation effects” derived from different IIP structures (exorbitant privilege and duty) before and after the global financial crisis (GFC). Then, we realized that a significant impact on the GFC was not current account imbalances, which are equal to the net capital flows from Asian surplus countries to the US as a deficit country (global saving glut), but the gross capital flows between the US and Europe, both of which run current account deficits. Finally, we investigated the idea that the gross capital flows from the US to Europe represented the raising of wholesale funding through the US money market funds (MMFs) by European banks' US branches and subsidiaries and then shipping it to their headquarters. From the viewpoint of the banking sector, these gross capital flows are in a large part regarded as global liquidity, especially non-core liabilities supplied by the US shadow banking system.
    JEL Classification:F32, F33, G01
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2013 JSIE-Kojima Kiyoshi Prize Lectures:
  • Kenzo Abe, Hiroaki Ogawa
    2015 Volume 18 Pages 21-30
    Published: 2015
    Released: March 08, 2016
    We analyze the optimal level of privatization of a state-owned enterprise (SOE) in a renewable resource sector. We construct a model where a SOE and a foreign private enterprise compete in quantity in a market of a renewable resource good. In the short-run, a government should privatize the SOE when the foreign private enterprise is present, while it should keep the SOE when the foreign firm is absent. In the long-run, a government should privatize its SOE regardless of the presence or the absence of the foreign private competitor.
    JEL Classification:F23, H10, Q2
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  • Shigemi Yabuuchi
    2015 Volume 18 Pages 31-41
    Published: 2015
    Released: March 08, 2016
    This study investigates the combined effects of tourism promotion and environmental protection, via a pollution tax, in labor-surplus developing economies. While tourism is expected to provide employment and improve national welfare, the tax is expected to have the opposite effect. This paper is the first of its kind to examine the interaction between tourism and environmental protection by considering production as well as consumption externalities. The results show that, under certain conditions, tourism promotion expands the tourism sector, increases unemployment, and improves welfare. Conversely, under certain conditions, an increase in the pollution tax contracts the sector, decreases unemployment, and reduces welfare.
    JEL Classifications:F16, O13, O18
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  • Hiroaki Sasaki
    2015 Volume 18 Pages 43-67
    Published: 2015
    Released: March 08, 2016
    [Advance publication] Released: June 20, 2015
    This study builds a two-country, two-sector, non-scale growth model and investigates the relationship between trade patterns and the growth rate of per capita real consumption. Suppose that both countries have different population growth rates, that at least one country has a negative population growth rate, and that the home country has a comparative advantage in manufacturing at the initial point in time. Then, the following two patterns are sustainable in the long run: (1)the home country diversifies (i.e., produces both manufactured and agricultural goods), while the foreign country specializes in agriculture and (2)the home country specializes in agriculture, while the foreign country diversifies. By comparing the growth rate under autarky with that under free trade, we find that in the first case, the foreign country increases its growth rate by engaging in free trade, whereas the home country does so in the latter case.
    JEL Classification: F10; F43; O11; O41
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