International Economics Studies
Volume:34 Issue: 1, Spring and Summer 2009

This paper examines the impasse in the current Doha Development Round negotiations and asks how the rules of the WTO could be changed to facilitate multilateral negotiations and to increase the welfare of the Member countries. It considers possible changes to the method of negotiation. As examples of rules which are outdated, it considers the rules relating to regional trade agreements and to anti-dumping actions. Economic theory suggests strongly that changes to these rules could increase international trade and benefit member countries. Then to the rolling Heav’n itself I cried, Asking, “What lamp had destiny to guide Her little Children stumbling in the Dark?” And – “A blind understanding!” Heav’n replied. The Rubaiyat of Omar Khayyam by Omar Khayyam, translated by Edward Fitzgerald, First Edition, Quatrain XXXIII

While energy especially oil, crises and economic integration have been playing an important role in development and growth in East West Asia economies and their intertwining relations, only limited quantitative research on their impact has been carried out and reported for improved debate and credible policy use. This paper uses an econometric modeling innovation with features superior to existing methodologies, namely the generalized or endogenous gravity theory (eg, Tran Van Hoa, 2004), to provide rigorous substantive evidence satisfying Kydland (2006) data-model consistency criterion to this impact study for reliable regional policy analysis. The paper first analyses the major economic and trade patterns between the Gulf States and Asian NIEs over the past three decades for relevant historical correlative support. Second, a new endogenous growth model for these economies is constructed and estimated to provide substantive causal evidence on the impact. Implications of the findings for economic and trade policy development between the Gulf States and Asian NIEs are then discussed for possible uses by academic, business and government decision-makers.

Over the past decade the economies of East Asia and APEC more generally have been increasingly opening up their markets, and in the process have achieved significant gains in exports and economic growth. In conjunction with this increased economic integration, there has been increased recognition by regional governments of the potential for a substantial increase in the participation by small businesses in the generation of regional income, employment, exports, investment and expanded economic growth. Advances in information and communications technology add credence to this potential. In addition, developing economies are especially seeing small businesses as potential instruments for the alleviation of poverty and regional development. While in developed economies the formation of horizontal and vertical clusters of small businesses can form the basis for internationally competitive regions, and this can be further enhanced through the construct of networks with similar small businesses locally or internationally.This viewpoint was given further stimulus after the financial and economic crisis of 1997-98, arising from which there has been a growing recognition of the need for the East Asian economies to engage in comprehensive restructuring of their corporate sectors, with the objective of achieving transparency, improving corporate governance and developing globally competitive enterprises. Small and medium enterprises (SMEs) can play a key role in the attainment of such objectives. This paper reviews the contribution of the SME sector to the growth and development of the East Asian economies, and their important contribution to economic growth, employment, trade and investment and the development of globally competitive economies. In doing so identification of the potentially important role of SMEs in facilitating and bringing about the practical benefits of closer economic integration are also emphasized. To enable this to occur it is important to identify within the East Asian region: barriers to their development; key factors essential for their capacity building; strategies to enhance their competitiveness in the global marketplace; key components relating to their export success; and their role and importance in facilitating regional economic development, reducing income inequality, and empowering regional involvement in the global economy.

We define as South Asian countries those countries that start with Iran and end with Bangladesh in Asia. We then use export statistics in terms of revealed comparative advantage (RCA) for 14 industrial sectors to measure distances of export capabilities for these countries in relation to the “Western” developed and East Asian countries. Statistical methods such as multidimensional scaling and factor analysis are used for this purpose. In parallel, a set of economic variables are used to compare the trade performance with economic development.The results are revealing for several reasons. First, although India is far ahead from the rest of the South Asian countries, all of them are still very behind in relation to both Western and East Asian countries. Exact distances are measured in this respect (distance from the leaders of exports and economic development performance). Second, most countries in South Asia are specialized in clothing, textiles, and leather, whereas several of tem are specialized as well in resources. Third, it seems that the current economic boom in East Asian countries does not affect the economies of South Asia as much as expected.In the light of the these results, some policies are recommended in order to alleviate the relative setback of South Asian countries and in order for them to catch up with the other booming Asian countries.

This study examines the significant impact of exchange rate shock on prices of Malaysian imports and exports. In methodology, the study adopts vector error correction (VECM) model using monthly data of nominal exchange rates, money supply, prices of imports and prices of exports covering the period of M1:1999 to M12:2006. For further analysis, we adopt an innovation accounting by simulating variance decompositions (VDC) and impulse response functions (IRF). VDC and IRF serve as tools for evaluating the dynamic interactions and strength of causal relations among variables in the system. In fact, IRF is used to calculate the exchange rate pass-through on import prices and export prices. The findings indicate that, while the exchange rate shock is significantly affect the fluctuation of import prices, the degree of pass-through is incomplete.

Time preference has a peculiar role in determining the level of economic activities. Time preference is the most important origin of interest rate. In this paper we study the founders and defender's viewpoints about time preference and then we try to criticize them. It seems that discounting future utilities is resulting from irrationality and it is ethically indefensible too. From mathematical aspect, discounting is necessary because it convergences sum of social welfare function to some finite number and so the optimal time path for consumption is attained. But this isnt true for a growing population. It seems that there arent any rational reasons for preferring current generation's welfare to future generations'. If we have time preference, in intertemporal allocation, it reduces available resources for future consumption and so the level of saving will be decreased. We study a numerical example for affecting time path of an ore extraction of a nonrenewable resource. Results show that the higher the time preference, the higher the rate of extraction will be occurred. Because with a high rate for time preference, present value of cash flows will be discounted more strongly and it increases the incentive to mine the more quickly

The paper begins by noting that proposals involving significant developments in the regional trade architecture are being developed within regional processes that in some cases are simultaneously pursuing other dimensions of regional economic integration: monetary and financial cooperation in the case of ASEAN + 3, and the establishment of a common market in the case of ASEAN. At least three of these regional processes (ASEAN, ASEAN +3, and APEC) count among their ultimate objectives the development of some form of regional “community”, with a scope in that each case includes but also goes beyond traditional elements of regional economic integration.This paper then considers the economic analysis and evidence relating to the choice of optimal regional trade architecture for the Asia-Pacific region, and the extent to which it might correspond to any of the trade architectures currently being proposed. The analysis will include the possibility that optimal regional trade architecture might extend beyond the conventionally-defined boundaries of the Asia-Pacific region. The paper then goes on to consider questions of coherence between an optimal regional trade architecture and the ongoing pursuit of other elements of regional economic integration within other regional processes. This leads to a discussion of coherence between the different regional integration processes themselves and their variously specified objectives, including any changes that might be proposed to enhance coherence.

The general perception of Islamic finance is that it prohibits the practice of paying and receiving interest, but Islamic finance is much broader than interest rate prohibition. Islamic financial services can be viewed as a set of financial services which are diversified based on the needs of society.Since in THE Iranian Economy most of the enterprises are micro and/or small, micro financing seems to be very important. Among different modes of financing which are designed in Iran’s Interest Free Banking System, Qard Hasan has been discussed in this paper as a way of micro financing. With a brief review of Iran’s latest Banking Act, a history of Qard Hasan has been presented and due to data availability the performance of the Iran Agricultural Bank (Bank Keshavarzi) has been discussed in this regard.