Margit Molnar

The Contribution of Economic Geography to GDP Per Capita

This article examines how much of the dispersion in economic performance across OECD countries can be accounted for by the proximity to areas of dense economic activity. To do so, various indicators of distance to markets and transportation costs are added as determinants in an augmented Solow model, which serves as a benchmark. Measures of distance to markets are found to have a statistically significant effect on GDP per capita. And the estimated economic impact is far from negligible. The reduced access to markets relative to the OECD average could contribute negatively to GDP per capita by as much as 11% in Australia and New Zealand. Conversely, a favourable impact of around 6-7% of GDP is found in the case of two centrally-located countries: Belgium and the Netherlands. The paper provides also some tentative evidence that spending on R&D and human capital might have a stronger effect on GDP per capita in countries with a higher degree of urban concentration.

Economic impacts of the phase-out in 2005 of quantitative restrictions under the Agreement on textiles and Clothing

this chapter explains teh differences between specialization, reorientation of markets adn relocation overseas.

Post-Crisis Changes in Banking and Corporate Landscapes in Dynamic Asia

This study investigates the changing relations between banks and their business customers in selected Asian emerging economies. These changes are manifest in declining bank lending growth and can be attributed to three major driving forces: cyclical factors, the fallout from the 1997 Asian crisis and structural factors affecting both the supply of and demand for bank credit. In response to declining lending growth and profits, banks have been diversifying their customer base and scope of activities. Alternative strategies to restore profitability and stay afloat in the global competition arena are consolidation and branching overseas. Faced with more stringent bank lending conditions in some cases, and seeking to reduce their debt loads, larger firms have been turning to capital markets as part of an effort to diversify their sources of funding. The measures taken by banks and firms to recover from the crisis and the 2001 downturn can be considered effective, but not sufficient to ... Les changements apres la crise dans le paysage des banques et des entreprises en Asie dynamique Cette etude analyse les relations changeantes entre les banques et leurs clients dans certaines economies emergentes d’Asie. Ces changements sont manifestes dans le declin de la croissance des prets et peuvent etre attribue a trois facteurs majeurs : des facteurs cycliques, les retombees de la crise asiatique de 1997 et des facteurs structurels affectant l’offre et la demande du credit bancaire. En reponse au declin de la croissance des prets et des profits, les banques ont diversifie leurs champs de clientele et d’activites. Les strategies alternatives pour restaurer la rentabilite et rester a flot dans le contexte global de competition sont la consolidation et l’extension a l’etranger. Confrontees a des conditions de prets bancaires plus rigoureuses dans certains cas, et cherchant a reduire la charge de leurs dettes, les grandes firmes se sont tournees vers les marches de capitaux comme un effort pour diversifier leurs sources de financement. Les mesures prises par les banques et ...

Recovery and Beyond: Enhancing Competitiveness to Realise Indonesia's Trade Potential

As Indonesia recovered from the 1997-98 Asian Financial Crisis, the economy underwent significant political and structural changes, and the role of trade policy evolved. It is clear that there is much scope for trade to enhance economic growth. However, there remain significant challenges in realising this potential, including the need to improve external competitiveness. This paper analyses Indonesian trade policy following the crisis, and identifies some key reforms that may help to increase competitiveness. In view of the evolving domestic and global environment, a comprehensive policy approach will be required involving trade policy reform moving in tandem with reforms in other policy areas. Suggested reforms include, among others, complementing applied tariff cuts with reductions in non-tariff barriers and bound tariffs, reducing trade costs by easing behind-the-border regulations, and further improving the investment climate.

Post-Crisis Changes in Banking and Corporate Landscapes

This study investigates the relative importance of factors shaping banking and corporate landscapes in Thailand after 1997 through an empirical analysis of micro-data of Thai banks and firms. The results of the analysis of the bank data show that the deceleration of bank credit growth is mainly attributable to the fallout from the Asian crisis and postcrisis regulatory changes. While high non-performing loans (NPLs) and foreclosed assets on balance sheets hinder the resumption of lending, those banks that were well capitalised, larger or domestic could resume lending faster. The analysis also showed that big, domestic, well-capitalised banks with higher NPLs are more prone to diversify into securities investments. The analysis of the firm sample indicates that Thai firms have diversified their sources of financing over the period of 1997-2000, which is reflected in the rise of the share of debt securities and trade financing. As a conclusion from the above analyses, the ... Les changements apres la crise dans le paysage des banques et des entreprises en Asie dynamique : Le cas de la Thailande Cette etude analyse l’importance relative des facteurs modelant le paysage des banques et des entreprises en Thailande apres 1997 par le biais d’une analyse empirique de micro donnees des banques et entreprises thailandaises. Le resultat de l’analyse des donnees bancaires montre que la deceleration de la croissance du credit bancaire est principalement attribuable aux retombees de la crise asiatique et aux changements de reglementation apres la crise. Tandis que les prets non productifs eleves et les avoirs saisis sur les bilans retardent la reprise des prets, les banques qui etaient bien capitalisees, plus grandes ou nationales ont pu reprendre les prets plus vite. L’analyse montre egalement que les grandes banques, nationales, bien capitalisees avec des prets non productifs eleves sont plus enclines a se diversifier en des investissements en titres. L’analyse de l’echantillon des entreprises indique que les firmes thailandaises ont diversifie leur source de financement sur la ...