Thailand's economy developed into an economic bubble fueled by hot money. More and more was required as the size of the bubble grew. The same type of situation happened in Malaysia and Indonesia, which had the added complication of what was called " crony capitalism ". Development money went in a largely uncontrolled manner to certain people only - not necessarily the best suited or most efficient, but those closest to the centers of power.
The paper argues that managerial incentives, disciplining and corporate finance are not the fundamental distinguishing features of different financial systems. Instead, differences in ownership and control emerge as important influences on the formulation, implementation and adaptation of corporate strategy.
Ownership and control structures are interrelated with competition in product markets: Innovation, firm size and market structure: Shumpeterian hypotheses and some new themes George Symeonidis This paper surveys the empirical literature on the links between innovation, market structure and firms size.
The review shows that there is little evidence in support of the Schumpeterian hypothesis that market power and large firms stimulate innovations. Recent empirical work suggests that RGD intensity and market structure are jointly determined by technology, the characteristics of demand, the institutional framework, strategic interaction and chance.
Mark-up pricing, market structure and the business cycle Joaquim Oliveira Martins, Stefano Scarpetta and Dirk Pilat This paper presents estimates of mark-ups of prices over marginal costs for 36 manufacturing industries and 7 service sectors in 14 OECD countries.
It applies a recently developed methodology, and finds that positive mark-ups are common in both manufacturing and services.
The level of the estimated mark-ups can partly be related to competitive conditions by type of market structure. The paper also finds evidence of counter-cyclical behaviour of mark-ups, providing a possible explanation for the pro-cyclicality of employment and real wages.
Competition, productivity and efficiency Dirk Pilat This paper discusses the empirical evidence on cross-country productivity gaps and analyses the link between productivity and competition.
It finds that inefficiency and low productivity levels are widespread in both manufacturing and services, and throughout the OECD area. The variation in productivity levels and growth rates appears related to the degree of competition facing industries. International competition is an important element in achieving high productivity levels, but domestic factors also play a role.
High entry rates appear conducive to productivity, but high concentration is not. In service sectors, government-imposed regulations are often an important restriction on competition and productivity growth.
First, reasons for spending differences over time and across countries in transfer programmes are examined.
A general finding is that differences in eligibility and entitlement conditions are usually more important than underlying population and risk characteristics. Moreover, eligibility conditions, reflecting policy goals and programme administration, often appear to be more important than benefit levels in explaining spending patterns.
The second part of the paper reflects on these results, giving a brief overview of policy reforms that might allow programme objectives to be reached more efficiently.
Alternative approaches to reducing the well-known "poverty trap" are identified and assessed, including Credit and Negative Income Tax programmes, earnings supplementation, and two marginal employment subsidy plans.
It is concluded that a judicious combination of a moderate income guarantee plus programmes to stimulate the supply of and the demand for lower skilled labour could yield gains in a number of dimensions relative to existing income protection arrangements.
A stylised "blueprint" which illustrates such an approach is presented.
Assessing the role of labour market policies and institutional settings on unemployment: The results suggest that these factors do matter for the level of structural unemployment and for the speed of labour market adjustment after an exogenous shock.The best opinions, comments and analysis from The Telegraph.
cyclical fiscal policy in an emerging market country could play an important role in promoting higher growth and productivity.2 The presence of such mechanisms could be particularly useful in boosting the efficacy of fiscal policy in the aftermath of an economic crisis, .
the Asian financial crisis in A series of economic order to reduce the deficit caused by an expansionary fiscal policy.
The crowding out effects of fiscal policy on Sectoral Impact of Fiscal Policy in Malaysia 83 Q4) and showed that tax and government spending. A nail in the coffin for the largest QE trade Weekly investor research.
29 October The rise in US company costs exposed by the latest round of results is by far the most important change in the global financial landscape in the past couple of weeks.
Malaysia may not be maximizing the bang for buck of fiscal policy through policy ill discipline during boom times by expanding fiscal expenditures. The government, as part of the fiscal prudence policy, will closely monitor its spending.
Malaysia, the only middle-income countries in the region where GDP had contracted in and percent respectively in these countries in , driven equally by domestic demand (supported by expansionary fiscal and monetary policies) and external demand.
In the Philippines, a surge in consumer and business Percent, 3m/3m saar.