This chapter reviews and compares available measures of capital account and financial current acc... more This chapter reviews and compares available measures of capital account and financial current account openness, including de jure and de facto measures. While most are valid with their unique advantages and disadvantages, the various indicators differ from one another in both what they measure and how they are constructed. As a consequence, different measures may be appropriate in different applications, and investigators who fail to match the right measure to the theory being tested are vulnerable to a peculiar form of measurement error.
Since the mid-1990s, China, Japan, and Korea have come under severe pressure to restructure and r... more Since the mid-1990s, China, Japan, and Korea have come under severe pressure to restructure and reform their economic systems. In fact, across East Asia governments are attempting to address their structural problems with a variety of reform programs. After several years of their efforts, clear patterns are now emerging. The authors of this book conclude that the interaction between financial globalization and domestic politics is the key to unlocking the reform process. In particular, they address issues important to the study of East Asian political economies --receptivity to financial globalization, financial integration, the convergence or divergence of their economic institutions, and the impact that institutional transformations will have on national competitive advantage and the global economic system. This book identifies and accounts for empirical regularities across East Asian countries and sectors, which previous studies have left largely unexplained. Contributors include Jongryn Mo (Yonsei University), Daniel I. Okimoto (Stanford University), Jennifer Amyx (University of Pennsylvania),Yves Tiberghien (Harvard University and University of British Columbia), Wonhyuk Lim (Korea Development Institute), and Joon-Ho Hahm (Yonsei University).
2 The Asia/Pacific Research Center (A/PARC) is an important Stanford venue, where faculty and stu... more 2 The Asia/Pacific Research Center (A/PARC) is an important Stanford venue, where faculty and students, visiting scholars, and distinguished business and government leaders meet and exchange views on contemporary Asia and U.S. involvement in the region. A/PARC research results in seminars and conferences, published studies, occasional and discussion papers, special reports, and books. A/PARC maintains an active industrial affiliates and training program, involving more than twenty-five U.S. and Asian companies and public agencies. Members of A/PARC's faculty have held high-level posts in government and business. Their interdisciplinary expertise generates research of lasting significance on economic, political, technological, strategic, and social issues. A. Maria Toyoda is a research scholar with the Institute for International Studies and Stanford Japan Center–Research. Her research interests are the political economy of financial flows and political and economic reform in Japan. She is currently working on projects in both areas, including a new book on global finance, democracy, growth, and welfare. She is also part of a project based in Kyoto, Japan looking at innovation and entrepreneurship in Japan.
We utilize an empirical model of growth as a platform for examining the effects of capital accoun... more We utilize an empirical model of growth as a platform for examining the effects of capital account liberalization on growth. While we test for the direct effects of liberalization, we are equally interested in another facet of liberalization: sequencing. We ask what prior political, social, or economic conditions were required for capital account liberalization to have led to subsequent growth. Our key independent variable is a measure of capital account openness that comes in the form of five-year time-series, cross-sectional observations for 80 nations, 1950 (or independence) to 1997. Our focus is on change indicators of liberalization, as we argue that level indicators of government policies in political economic research are generally too imprecisely specified to exclude the influence of other collinear political economic variables. We focus not simply on the economic preconditions for beneficial liberalizations, but the political and social preconditions as well. We find that c...
The views expressed in this publication are those of the author(s) and do not necessarily reflect... more The views expressed in this publication are those of the author(s) and do not necessarily reflect those of the Institute. No part of this article may be used reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in articles and reviews. For information, please write to the Centre.
Media Technologies for Work and Play in East Asia, 2021
This is the second time that the New Zealand government, through its international development ag... more This is the second time that the New Zealand government, through its international development agency, NZAID, has supported the preparation and production of the Philippine Human Development Report (PHDR). It provided funding in 2005 for the 5th PHDR, which focused on the theme Peace, Human Security and Human Development. That report was well-regarded for its depth of analysis on the root causes of conflicts and current institutional responses to, and possible alternative actions and policies to help resolve, the armed Moro and communist conflicts. This year’s PHDR dissects the theme of Institutions and Politics in the context of human development, and reflects the same depth of analysis and critical thinking. Institutions matter because “they influence norms, beliefs and actions; therefore, they shape outcomes.” So it was appropriate for the PHDR to delve into critical institutions in the Philippines that include the Civil Service Commission, the Department of Budget and the Department of Education (DepEd), and key judicial and quasi-judicial agencies represented by the Office of the Ombudsman. The PHDR’s analysis of these institutions seeks to explain how and why these institutions behave and perform the way they do. Of particular note is how the report has linked the behavior and performance of the DepEd—the largest institution in the country’s bureaucracy with one of the most important contributions to human development—to civil service requirements, budget allocations, and enforcement of rules. Education and literacy are integral to human development as human development is all about acquiring the most basic capabilities to lead long and healthy lives, to be knowledgeable, to have access to the resources needed for a decent standard of living, and to be able to participate in the community. By understanding these nuances and links among institutions within the Philippine bureaucracy, we can, for instance, see how the DepEd may function better and thus fulfill its mandate in the development of human capital. This year’s PHDR is expected to contribute significantly to the reshaping of institutions in the Philippines in the context of the political situation. Understanding the link between politics and institutions is integral to the way forward in transforming institutions that function for human development. And in the light of the current global economic crisis where the goal of human development is greatly challenged, the 6th PHDR will contribute immensely in the search for solutions on how institutions can effectively respond to the crisis. I congratulate the Philippine Human Development Network and the United Nations Development Programme on the completion of this 6th PHDR. New Zealand is proud to be associated with this report, and remains committed to supporting efforts to enhance the quality and sustainability of Philippine human development.
... 32 Jennifer Amyx, Harukata Takenaka, and A. Maria Toyoda 14. Yu¯bin Chokin in Kan suru Cho¯sa... more ... 32 Jennifer Amyx, Harukata Takenaka, and A. Maria Toyoda 14. Yu¯bin Chokin in Kan suru Cho¯sa Kenkyu¯kai (Study Group on Postal Sav-ings), Ministry of Posts and Telecommunications, March 1981, cited in Hiromitsu Ishii, Making Fiscal Policy in Japan: Economic Effects ...
Introduction Scholars have long argued that the spread of ideas and values matters for the adapta... more Introduction Scholars have long argued that the spread of ideas and values matters for the adaptation and reform of government policies. (See, for example, the essays in Hall 1989.) In this chapter, we investigate whether and how either liberal or restrictive international financial policies on capital account regulation spread globally, both through the direct effects of changes in global ideology on government policy and indirectly, through policy diffusion between other states. In the following sections we: (1) provide a detailed account of the mechanisms of diffusion, focusing on the theoretical basis for the global, grassroots spread of ideas that affect government policies; (2) identify valid indicators of ideological change that will aid in identifying the mechanisms through which it is diffused; (3) discuss our models and methods, focusing on how ideology is diffused indirectly and globally through influence on other governments' policies; and (4) report the results of our study, and offer concluding remarks. How ideas spread While global convergence toward political and economic liberalism might be a defining story of the last two decades of the twentieth century, we find scant evidence that convergence around a particular set of policies regarding capital account liberalization is consistent over time or space. During the entire twentieth century, many distinct waves of international financial openness and closure diffused worldwide. Based upon the work of many scholars, we know many of the domestic and international political and economic forces that account for change in international financial openness.
This chapter reviews and compares available measures of capital account and financial current acc... more This chapter reviews and compares available measures of capital account and financial current account openness, including de jure and de facto measures. While most are valid with their unique advantages and disadvantages, the various indicators differ from one another in both what they measure and how they are constructed. As a consequence, different measures may be appropriate in different applications, and investigators who fail to match the right measure to the theory being tested are vulnerable to a peculiar form of measurement error.
Since the mid-1990s, China, Japan, and Korea have come under severe pressure to restructure and r... more Since the mid-1990s, China, Japan, and Korea have come under severe pressure to restructure and reform their economic systems. In fact, across East Asia governments are attempting to address their structural problems with a variety of reform programs. After several years of their efforts, clear patterns are now emerging. The authors of this book conclude that the interaction between financial globalization and domestic politics is the key to unlocking the reform process. In particular, they address issues important to the study of East Asian political economies --receptivity to financial globalization, financial integration, the convergence or divergence of their economic institutions, and the impact that institutional transformations will have on national competitive advantage and the global economic system. This book identifies and accounts for empirical regularities across East Asian countries and sectors, which previous studies have left largely unexplained. Contributors include Jongryn Mo (Yonsei University), Daniel I. Okimoto (Stanford University), Jennifer Amyx (University of Pennsylvania),Yves Tiberghien (Harvard University and University of British Columbia), Wonhyuk Lim (Korea Development Institute), and Joon-Ho Hahm (Yonsei University).
2 The Asia/Pacific Research Center (A/PARC) is an important Stanford venue, where faculty and stu... more 2 The Asia/Pacific Research Center (A/PARC) is an important Stanford venue, where faculty and students, visiting scholars, and distinguished business and government leaders meet and exchange views on contemporary Asia and U.S. involvement in the region. A/PARC research results in seminars and conferences, published studies, occasional and discussion papers, special reports, and books. A/PARC maintains an active industrial affiliates and training program, involving more than twenty-five U.S. and Asian companies and public agencies. Members of A/PARC's faculty have held high-level posts in government and business. Their interdisciplinary expertise generates research of lasting significance on economic, political, technological, strategic, and social issues. A. Maria Toyoda is a research scholar with the Institute for International Studies and Stanford Japan Center–Research. Her research interests are the political economy of financial flows and political and economic reform in Japan. She is currently working on projects in both areas, including a new book on global finance, democracy, growth, and welfare. She is also part of a project based in Kyoto, Japan looking at innovation and entrepreneurship in Japan.
We utilize an empirical model of growth as a platform for examining the effects of capital accoun... more We utilize an empirical model of growth as a platform for examining the effects of capital account liberalization on growth. While we test for the direct effects of liberalization, we are equally interested in another facet of liberalization: sequencing. We ask what prior political, social, or economic conditions were required for capital account liberalization to have led to subsequent growth. Our key independent variable is a measure of capital account openness that comes in the form of five-year time-series, cross-sectional observations for 80 nations, 1950 (or independence) to 1997. Our focus is on change indicators of liberalization, as we argue that level indicators of government policies in political economic research are generally too imprecisely specified to exclude the influence of other collinear political economic variables. We focus not simply on the economic preconditions for beneficial liberalizations, but the political and social preconditions as well. We find that c...
The views expressed in this publication are those of the author(s) and do not necessarily reflect... more The views expressed in this publication are those of the author(s) and do not necessarily reflect those of the Institute. No part of this article may be used reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in articles and reviews. For information, please write to the Centre.
Media Technologies for Work and Play in East Asia, 2021
This is the second time that the New Zealand government, through its international development ag... more This is the second time that the New Zealand government, through its international development agency, NZAID, has supported the preparation and production of the Philippine Human Development Report (PHDR). It provided funding in 2005 for the 5th PHDR, which focused on the theme Peace, Human Security and Human Development. That report was well-regarded for its depth of analysis on the root causes of conflicts and current institutional responses to, and possible alternative actions and policies to help resolve, the armed Moro and communist conflicts. This year’s PHDR dissects the theme of Institutions and Politics in the context of human development, and reflects the same depth of analysis and critical thinking. Institutions matter because “they influence norms, beliefs and actions; therefore, they shape outcomes.” So it was appropriate for the PHDR to delve into critical institutions in the Philippines that include the Civil Service Commission, the Department of Budget and the Department of Education (DepEd), and key judicial and quasi-judicial agencies represented by the Office of the Ombudsman. The PHDR’s analysis of these institutions seeks to explain how and why these institutions behave and perform the way they do. Of particular note is how the report has linked the behavior and performance of the DepEd—the largest institution in the country’s bureaucracy with one of the most important contributions to human development—to civil service requirements, budget allocations, and enforcement of rules. Education and literacy are integral to human development as human development is all about acquiring the most basic capabilities to lead long and healthy lives, to be knowledgeable, to have access to the resources needed for a decent standard of living, and to be able to participate in the community. By understanding these nuances and links among institutions within the Philippine bureaucracy, we can, for instance, see how the DepEd may function better and thus fulfill its mandate in the development of human capital. This year’s PHDR is expected to contribute significantly to the reshaping of institutions in the Philippines in the context of the political situation. Understanding the link between politics and institutions is integral to the way forward in transforming institutions that function for human development. And in the light of the current global economic crisis where the goal of human development is greatly challenged, the 6th PHDR will contribute immensely in the search for solutions on how institutions can effectively respond to the crisis. I congratulate the Philippine Human Development Network and the United Nations Development Programme on the completion of this 6th PHDR. New Zealand is proud to be associated with this report, and remains committed to supporting efforts to enhance the quality and sustainability of Philippine human development.
... 32 Jennifer Amyx, Harukata Takenaka, and A. Maria Toyoda 14. Yu¯bin Chokin in Kan suru Cho¯sa... more ... 32 Jennifer Amyx, Harukata Takenaka, and A. Maria Toyoda 14. Yu¯bin Chokin in Kan suru Cho¯sa Kenkyu¯kai (Study Group on Postal Sav-ings), Ministry of Posts and Telecommunications, March 1981, cited in Hiromitsu Ishii, Making Fiscal Policy in Japan: Economic Effects ...
Introduction Scholars have long argued that the spread of ideas and values matters for the adapta... more Introduction Scholars have long argued that the spread of ideas and values matters for the adaptation and reform of government policies. (See, for example, the essays in Hall 1989.) In this chapter, we investigate whether and how either liberal or restrictive international financial policies on capital account regulation spread globally, both through the direct effects of changes in global ideology on government policy and indirectly, through policy diffusion between other states. In the following sections we: (1) provide a detailed account of the mechanisms of diffusion, focusing on the theoretical basis for the global, grassroots spread of ideas that affect government policies; (2) identify valid indicators of ideological change that will aid in identifying the mechanisms through which it is diffused; (3) discuss our models and methods, focusing on how ideology is diffused indirectly and globally through influence on other governments' policies; and (4) report the results of our study, and offer concluding remarks. How ideas spread While global convergence toward political and economic liberalism might be a defining story of the last two decades of the twentieth century, we find scant evidence that convergence around a particular set of policies regarding capital account liberalization is consistent over time or space. During the entire twentieth century, many distinct waves of international financial openness and closure diffused worldwide. Based upon the work of many scholars, we know many of the domestic and international political and economic forces that account for change in international financial openness.
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