This paper considers a causality relationship from the global imbalances to the global financial crisis and asymmetric reactions of East Asian currencies to the global financial crisis. In addition, it is pointed out that regional monetary coordination is necessary for stability of intra-regional exchange rates among East Asian currencies. It considers what we should do for the regional monetary coordination in East Asia.
The paper presents the basic conceptual framework, whereby to comprehend a series of global financial crises since the early 1980s, i.e. absolute, relative, and absolute and relative surplus capital on the global scale. A short history of the birth of international surplus capital in the middle of the 1990s is followed by the author’s interpretation of the present global financial crisis beginning with subprime mortgage crisis in 2007. And finally, merits and advantages of dialectical conceptual analysis are advocated as an economic methodology.
This paper examines the effects of international trade in a model with global pollution that accumulates over time because of production emissions in each country. If countries cooperatively determine the national environmental policies, the long-run stock of global pollution under trade may or may not be higher than that under autarky, depending on abatement technologies and trade costs. If environmental policies are determined noncooperatively, there may be multiple equilibria. This means that the long-run effect of trade on the global environment may be indeterminate because it depends on, in addition to trade costs and abatement technologies, the actually implemented policy. The welfare consequences of trade are also discussed.
Using panel data for 17 Organization for Economic Co-operation and Development (OECD) countries for the period 1983-2003, this paper investigates the effects of financial integration on specialization and international structural similarity. Theoretically, financial integration motivates countries to specialize on the basis of their comparative advantages and decreases the structural similarity between them. Our empirical analyses support the hypothesis.
This article addresses plant location by a home firm and its impact on the home economy. Home-wage thresholds for the firm and the home consumer exist. If the foreign wage is below the level equating the two thresholds, the equilibrium plant location is FDI, some of which are involuntary for the firm. If the foreign wage is greater than this level, home production is chosen. A decrease in the fixed cost of FDI may benefit both the firm and the consumer, while an increase in the minimum wage in the home country is not always beneficial to the consumer.
This paper uses the new economic geography approach to analyze the effects of preferential trade agreements on industrial location and welfare. The tariff reductions lead to higher concentrations of firms in countries that enter a preferential trade agreement. Consequently, the welfare of member countries increases, but that of non-member countries may not. If preferential trade agreements have a hub-and-spoke structure, they will make more firms move to the hub, and welfare will increase in all countries