Global Economic Review 

About: Global Economic Review is an academic journal published by Taylor & Francis. The journal publishes majorly in the area(s): China & Foreign direct investment. It has an ISSN identifier of 1226-508X. Over the lifetime, 813 publications have been published receiving 5957 citations.

Determinants of Malaysian Trade Balance: An ARDL Bound Testing Approach

Abstract: This paper examines the short- and long-run relationships between trade balance, real exchange rates, income and money supply in the case of Malaysia. The inclusion of income and money variables in the study is purposely to examine the monetary and absorption approaches to the balance of payments beside the conventional approach of elasticity, using exchange rates. Using the bound testing approach to cointegration and error correction models, developed within an autoregressive distributed lag (ARDL) framework, we investigate whether a long-run equilibrium relationship exists between trade balance and the determinants. Additionally, we adopt an innovation accounting by simulating variance decompositions (VDC) and impulse response functions (IRF) for further inferences. Using this approach, we find evidence of a long-run relationship between trade balance and income and money supply variables but not between trade balance and real exchange rate. The findings also suggest that Marshall–Lerner condit...

India's Global Trade Potential: The Gravity Model Approach

Abstract: In this article an augmented gravity model equation has been used to analyze the world trade flows using a sample of 146 countries. The coefficients thus obtained are then used to predict trade potential for India. Ordinary Least Squares with cross-section data for the year 2000 have been used for estimation. The results show that all three traditional “gravity” effects are intuitively reasonable, with statistically significant t-statistic often exceeding 50 in absolute value. Alternative measures of gross national product (GNP) dollar value and purchasing power parity do not alter either the sign or significance of different explanatory variables. Historical and cultural similarities also impact positively upon bilateral trade. As concerns India's trade potential, the model shows that there is tremendous potential with China and trade can more than double if barriers and constraints are removed. Our estimates also indicate a huge potential, of the order of US$6.5 billion, with Pakistan.

ICT, CO2 Emissions and Economic Growth: Evidence from a Panel of ASEAN

Abstract: This study examines relationships among information communications technology (ICT), carbon dioxide (CO2) emissions and economic growth. The panel annual data are constructed from 1991 to 2009 for nine members from the Association of Southeast Asian Nations. The study examines the long-run equilibrium relationship using cointegration techniques and the short-run relationships using cointegrating regression estimation methods. Test results indicate a long-run equilibrium relationship exists among these variables. Among these relationships, ICT shows significant to highly significant positive effects on both economic growth and CO2 emissions. Significant to highly significant inverse bidirectional relationships between economic growth and CO2 emissions are found in the region. Based on these empirical findings, further policy implications for economic growth, ICT and CO2 emissions are discussed.

Globalization and Economic Growth: A Political Economy Analysis for OECD Countries

Abstract: Globalization is commonly defined as a strict economic path by most previous works, but it is really a fuzzy concept with unrestrained dimensions. While the ideological location of an incumbent political party is a powerful predictor of its policy position, the role of a political party in the globalization-growth nexus has never been fully empirically investigated. By applying Pedroni's panel cointegration technique instead of a time-series or traditional panel data approach, this paper aims to empirically re-examine the co-movement and the causal relationship among economic growth, the overall globalization index, and its three main dimensions—economic, social, as well as political integrations—by using panel data for 23 Organization for Economic Cooperation and Development (OECD) countries for 1970 to 2006. Certainly, the political party variable is taken into account as the advanced test is promoted, and we finally discover that all variables move together in the long run. Based on the result...

Interdependence of ASEAN-5 Stock Markets from the US and Japan

Abstract: This study empirically examines market integration among five selected ASEAN (Association of South-east Asian Nations) emerging markets (i.e. Malaysia, Thailand, Indonesia, the Philippines, and Singapore) and their interdependencies from the US and Japan based on a two-step estimation, cointegration and Generalized Method of Moments (GMM). Closing daily stock indices starting from 1 January 1988 to 31 December 2006 are used. The study reveals that the ASEAN stock markets are going towards a greater integration either among themselves or with the US and Japan, particularly in the post-1997 financial turmoil. This implies that the long-run diversification benefits that can be gained by investors across the ASEAN markets tend to diminish. As for the long run causal relations between ASEAN stock markets with the US and Japan, the study discovers that Indonesia was relatively independent of both the US and Japan; Malaysia was more dependent on Japan rather than the US; Thailand was relatively independ...