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Economics

Are financial statements effective in evaluating the creditworthiness of small and medium-sized enterprises?

Are Financial Statements Effective in Evaluating the Creditworthiness of Small and Medium-Sized Enterprises?
The credit risk database (CRD) was established in March 2001 as a membership organization to collect financial statements, some nonfinancial information, and default information of small and medium-sized enterprises (SMEs) in Japan. CRD members are composed of all credit guarantee corporations (CGCs) in Japan, government-affiliated or private financial institutions, and so on. Read more.

Economics

Rethinking the small and medium-sized enterprise financing model and the role of commercial banks

Rethinking the Small and Medium-Sized Enterprise Financing Model and the Role of Commercial Banks
At a time of much global uncertainty and economic slowdown, building internal resiliency is becoming increasingly important. Small and medium-sized enterprises (SMEs) play a central part in this, via its role in enhancing economic dynamism and creating employment opportunities in a country. SMEs usually make up a huge proportion of all businesses around the world. In Thailand, they account for as much as 99.7% of all enterprises, hire 80.3% of total labor force, and contribute 26.3% of export value. Read more.

Economics

Implications of negative interest rates for Asia

Implications of Negative Interest Rates for Asia
The ultra-low and negative interest rate environment in advanced economies and its implications for the rest of the world are currently among the top concerns of financial market participants and policy makers worldwide. Mark Carney, the governor of the Bank of England, recently said the low interest rate equilibrium is one of the challenges that the global economy risks becoming trapped in. The phenomenon started when the central banks of the eurozone, Switzerland, Sweden, and Denmark adopted negative interest rates from mid-2014 to early 2015. Japan followed in January 2016 and Hungary was the first emerging market to introduce negative rates in March 2016. Read more.

Economics

Spillover effects of Japan’s unconventional monetary policy on emerging Asia

Like other central banks in advanced countries, the Bank of Japan (BOJ) adopted an unconventional monetary policy after the 2007–2009 global financial crisis (GFC). After Prime Minister Abe advocated the new policy regime, Abenomics, the BOJ became highly aggressive in its unconventional policy (see, for example, Fukuda [2015] for details). On 4 April 2013, BOJ Governor Kuroda introduced quantitative and qualitative monetary easing (QQE) and committed to achieve a 2% inflation target in 2 years. Read more.

Economics, Finance

Does internal and external research and development affect innovation of small and medium-sized enterprises? Evidence from India and Pakistan

Does Internal and External Research and Development Affect Innovation of Small and Medium-Sized Enterprises? Evidence from India and Pakistan
Small and medium-sized enterprises (SMEs) play a vital role in the economic growth of a country. Specifically, in developing countries where poverty, unemployment, low income per capita, low literacy rate, and high inflation and interest rates can hinder economic growth, SMEs contribute significantly to the national income and provide employment opportunities (Moktan 2007). However, SMEs have low survival rates than large firms because of resource constraints. Read more.

Economics

Some knowledge economy lessons from the Republic of Korea for Africa

Some knowledge economy lessons from the Republic of Korea for Africa
Twenty-first century competition is centered on the knowledge economy, with Europe and North America inexorably charting the course of development in the international arena. In calculated steps, Latin America and Asia have been asserting the need for enhanced knowledge economy strategies in their own pursuits of national and regional development. Read more.

Economics

Uncertainty about Federal Reserve policy and its transmission to emerging economies: Evidence from Twitter

Uncertainty about Federal Reserve policy and its transmission to emerging economies: evidence from Twitter
If the United States Federal Reserve tightens or eases monetary conditions, this impacts emerging economies. Over the years since the global financial crisis, a second type of spillover has emerged: spillovers stemming from the uncertainty about future monetary policy. Uncertainty spillovers exist above and beyond those stemming from specific policy steps. It is the uncertainty about the likely course of monetary policy that led investors to adjust their portfolios, thus leading to side effects on emerging markets. Read more.

Economics

The effect of push/pull factors on the distribution of capital flows into Asia

The effect of pushpull factors on the distribution of capital flows into Asia
Earlier literature examined determinants of international capital flows especially during the period of high and persistent capital inflows to emerging economies during 2009–2013. The literature mainly identified the push and pull factors and explained how these factors affect the capital flows into emerging Asia “on average.” In other words, the literature calculated the effects of these factors “on the mean” of the distribution of capital flows. Read more.

Economics

The pattern of capital flows into Asia in the last decade

The pattern of capital flows into Asia in the last decade
Looking at the varying patterns of the capital flows into Asia in the last decade, the period after the taper tantrum on 21 May 2013 until 31 October 2015 is of particular interest from both global and local perspectives. Read more.

Economics

Spillover effects of quantitative easing on the Asian credit market and policy options

Spillover effects of quantitative easing on the Asian credit market and policy options
One of the most significant new developments in the global post-global financial crisis (GFC) economy is the enormous asset purchase programs implemented by central banks in the industrial world to stimulate their economies. Widely known as quantitative easing (QE) programs, their impact has been substantial. Read more.