Growth and Development Commons^™

Firm Boundaries And Financing With Opportunistic Stakeholder Behaviour, Madhav S. Aney, Elie Appelbaum, Sanjay Banerji

Research Collection School Of Economics

We explore the impact of strategic behaviour between three major stakeholders, namelyequity holders, debt holders, and a supplier of a critical input, on the choice of a firm’s capitalstructure and its organisational design, determining in-house production versus outsourcing theprocurement of the critical input. We show that an opportunistic coalition of the supplierand debt holders can trigger strategic bankruptcy even when the firm is solvent. Equity holdersrespond to this by either eliminating the supplier by producing the input in-house, or by reducingthe exposure to debt by funding the firm’s capital requirement through equity. Both responsescreate inefficiency since production of the input …

Local And Global Sd-Strategy-Proofness Of Ordinal Mechanisms On Block-Connected Domains, Peng Liu

Research Collection School Of Economics

The adjacency by Monjardet (2009) is weakened to a flip between two adjacently ranked blocks and called block-adjacency. The connectedness defined accordingly, blockconnectedness, covers some interesting unconnected domains. An ordinal mechanism on a block-connected domain is block-adjacent sd-strategy-proof if reporting the true preference always leads to a lottery that stochastically dominates the lottery delivered by reporting any preference block-adjacent to the sincere one.A condition on a block-connected domain called path-nestedness is proposed and shown sufficient for the equivalence between sd-strategy-proofness and block-adjacent sd-strategy-proofness. The sequentially dichotomous domain by Liu (2017) is an application. In addition, we systematically search for the …

Dissecting A Giant: The Commodification Of Rural China, Singapore Management University

Research@SMU: Connecting the Dots

Rapid growth is causing unprecedented transformations in the social fabric and market structure of rural China, Professors Forrest Zhang and John Donaldson, researchers at SMU investigate.

See the papers:

• Class differentiation in rural China: Dynamics of accumulation, commodification and state intervention;
• Political dynamics in land commodification: Commodifying rural land development rights in Chengdu, China
• The rise of agrarian capitalism with Chinese characteristics: Agricultural modernization, agribusiness and collective land rights
• China's agrarian reform and the privatization of land: A contrarian view

Smarter Banking: Blockchain Technology In The Indian Banking System, Suparna Dhar, Indranil Bose

Asian Management Insights

Indian banks are currently experiencing poor performance when it comes to debt risk. Burdened with high non-performing loans (NPL), they are putting at risk the funds of investors as well as India’s industrial and economic growth. In addition, the loan management process itself is riddled with inefficiencies. To overcome them, we propose to use blockchain technology.

Vietnam's Economic Transformation: Embracing Change, Vu Khoan, Philip Charles Zerrillo

Asian Management Insights

The former Deputy Prime Minister of Vietnam from 2002 to 2006, Mr Vu Khoan, talks about the transformation of the country from economic isolationism to its current economic strength, in this interview with Philip Zerrillo.

Asean's Digital Economy, Naveen Menon

Asian Management Insights

Transforming industries, enriching lives and propelling progress.

Connecting India, Sam Pitroda

Asian Management Insights

Great inventions will not be born in the absence of the will and intent to embrace change and solve wideranging societal problems.

The New Dragon Dance, Sarita Mathur

Asian Management Insights

Is China moving to a new normal?

Invitation Strategy For Cutting Edge Industries Through Mncs And Global Talents: The Case Of Singapore, Kim Song Tan

Research Collection School Of Economics

Singapore presents an interesting case of how a country achieves dynamic economic development and innovation through the "invitation" strategy of a business hub. Despite being a small city-state with limited domestic market size and no meaningful hinterland or natural resources to speak of, Singapore has managed to transform its economy dramatically over the past 50 years by leveraging the strengths of other economies. Specifically, it has been able to attract (or "invite") various types of productive resources, including foreign capital, foreign technology and foreign workers (both skilled and unskilled) to make up for what it lacks. This has helped Singapore …

New Skills At Work: Managing Skills Challenges In Asean-5, Kim Song Tan, James T. H. Tang

Research Collection School Of Economics

The dynamic economies of Singapore, Malaysia, Thailand, Indonesia and the Philippines (ASEAN-5) boasts a growth rate of close to 5% a year despite the sluggish global economy. However, whether ASEAN-5 can grow to be significant players in the global economy will depend critically on their abilities to train workers with relevant job skills required by growth-driving industries. This challenge requires governments and employers to work together and develop coherent policies and targeted incentive structures for workers to acquire general and job-specific skills. The report Managing Skills Challenges in ASEAN-5 provides insights and recommendations on how the ASEAN-5 countries can respond …

Human-Scale Economics: Economic Growth And Poverty Reduction In Northeastern Thailand, Joel D. Moore, John A. Donaldson

Research Collection School of Social Sciences

Under what conditions does economic growth benefit the poor? One way to answer this question is to identify and compare positive and negative outlier areas, those that experience greater and lesser poverty reduction, respectively, compared to what was anticipated given their levels of economic growth. The more similar these areas, the more leverage there is to unearth the factors that allow the poor to benefit from growth. In this paper, we employ an inductive approach to glean possible pathways out of poverty from two highly similar underdeveloped neighboring provinces in northeastern Thailand. Using extensive fieldwork and interviews, we explore factors …

Strategic Interactions In A One-Sector Growth Model, Eric Fesselmeyer, Leonard J. Mirman, Marc Santugini

Research Collection College of Integrative Studies

We study the effect of dynamic and investment externalities in a one-sector growth model. In our model, two agents interact strategically in the utilization of capital for consumption, savings, and investment in technical progress. We consider two types of investment choices: complements and substitutes. For each case, we derive the equilibrium and provide the corresponding stationary distribution. We then compare the equilibrium with the social planner's solution.

Grandparents: The Silent Engine Behind China’S Economic Growth, Singapore Management University

Perspectives@SMU

Migrant workers leave behind children to be taken care of by the elderly in villages – it is a win-win arrangement for all involved

Uniform Consistency Of Nonstationary Kernel-Weighted Sample Covariances For Nonparametric Regression, Degui Li, Peter C. B. Phillips, Jiti Gao

Research Collection School Of Economics

We obtain uniform consistency results for kernel-weighted sample covariances in a nonstationary multiple regression framework that allows for both fixed design and random design coefficient variation. In the fixed design case these nonparametric sample covariances have different uniform asymptotic rates depending on direction, a result that differs fundamentally from the random design and stationary cases. The uniform asymptotic rates derived exceed the corresponding rates in the stationary case and confirm the existence of uniform super-consistency. The modelling framework and convergence rates allow for endogeneity and thus broaden the practical econometric import of these results. As a specific application, we establish …

Strategic Interactions In A One-Sector Growth Model, Eric Fesselmeyer, Leonard J. Mirman, Marc Santugini

Research Collection College of Integrative Studies

We study the effect of dynamic and investment externalities in a one-sector growth model. In our model, two agents interact strategically in the utilization of capital for consumption, savings, and investment in technical progress. We consider two types of investment choices: complements and substitutes. For each case, we derive the equilibrium and provide the corresponding stationary distribution. We then compare the equilibrium with the social planner's solution.

China: Growth Slowing But In Good Shape, Singapore Management University

Perspectives@SMU

It is still a developing economy with room to grow out of trouble

Education And Leadership: Indispensable For Nigeria's Economic Development, Olusegun Obasanjo, Philip Charles Zerrillo

Asian Management Insights

The former President of Nigeria (1999 to 2007), Olusegun Obasanjo, talks about the nation’s evolving transformation in this interview with Philip Zerrillo.

The Trans-Pacific Partnership And Vietnam, Duong Nhu Hung, Tran Quang Dang

Asian Management Insights

Opening up a bold new world for Vietnam’s trade and industry may not be so easy.

Investment-Specific Technical Change And Growth Around The World, Roberto M. Samaniego, Juliana Yu Sun

Research Collection School Of Economics

Investment-specific technical change (ISTC) contributes little to growth in most countries. This is because in many countries the investment process does not become notably more efficient over time. Still, cross-country differences in the contribution of ISTC to growth are significant. Differences in the rate of ISTC appear due to cross-country variation in the use of R&D intensive capital goods, as well as trade costs.

Sanctions Under The Eu Generalised System Of Preferences And Foreign Policy: Coherence By Accident?, Clara Portela, Jan Orbie

Research Collection School of Social Sciences

This article investigates the relationship between the European Union's withdrawal of trade benefits for developing countries under the Generalised System of Preferences (GSP) and its sanctions under the Common Foreign and Security Policy (CFSP). Our expectation is that GSP withdrawals and CFSP sanctions will not cohere. However, our research reveals that GSP suspension has been coherent with CFSP sanctions when the latter exist prior to the decision-making process on GSP sanctions and when the International Labour Organisation has set up a Commission of Inquiry condemning the country, as with Myanmar/Burma and Belarus. The presence of separate institutional frameworks explains the …

Contributions To The Committee On The Future Economy, Singapore Management University

Research Collection School Of Economics

In response to the call to contribute to the dialogue initiated by the Committee on The Future Economy (CFE), SMU has held a series of engagement sessions with faculty and staff to brainstorm and propose recommendations to add to the government’s deliberations on strategies for the next stage of Singapore’s economic growth. Through the leadership of SMU Provost, Professor Lily Kong, faculty and senior staff produced various recommendations on five key areas namely Corporate Capabilities and Innovation, Future Growth Industries & Markets, Future of Connectivity, Future City and Future Jobs and Skills.

Inference In Near-Singular Regression, Peter C. B. Phillips

Research Collection School Of Economics

This paper considers stationary regression models with near-collinear regressors. Limit theory is developed for regression estimates and test statistics in cases where the signal matrix is nearly singular in finite samples and is asymptotically degenerate. Examples include models that involve evaporating trends in the regressors that arise in conditions such as growth convergence. Structural equation models are also considered and limit theory is derived for the corresponding instrumental variable (IV) estimator, Wald test statistic, and overidentification test when the regressors are endogenous. It is shown that near-singular designs of the type considered here are not completely fatal to least squares …

Hot Property In New Zealand: Empirical Evidence Of Housing Bubbles In The Metropolitan Centres, Ryan Greenaway-Mcgrevy, Peter C. B. Phillips

Research Collection School Of Economics

Using recently developed statistical methods for testing and dating exuberant behaviour in asset prices we document evidence of episodic bubbles in the New Zealand property market over the past two decades. The results show clear evidence of a broad-based New Zealand housing bubble that began in 2003 and collapsed over mid-2007 to early 2008 with the onset of the worldwide recession and the financial crisis. New methods of analysing market contagion are also developed and are used to examine spillovers from the Auckland property market to the other metropolitan centres. Evidence from the latest data reveals that the greater Auckland …

Real Estate Investments In Asia: More Than A Place To Call Home, John Lim

Asian Management Insights

Real estate investment in Asia is currently trending. But what does the future hold?

Peru: Open For Business, Singapore Management University

Perspectives@SMU

South America’s third-largest economy seeks to capitalise on growing global trade

Europe: Ready To Rebound, Singapore Management University

Perspectives@SMU

Increasing trade, investment, and immigrant integration are keys to Europe’s economic vitality

Of Land, Food, And Scale, Singapore Management University

Perspectives@SMU

The competing needs for infrastructure, agriculture, and scale could decide the success of The Asian century

The Role Of The State In Singapore: Pragmatism In Pursuit Of Growth, Kim Song Tan, Manu Bhaskaran

Research Collection School Of Economics

This paper looks at how government intervention shapes the evolution of the Singapore economy and accounts for its successes and failures over the past 50 years. Compared with other dynamic Asian economies, the Singapore government's approach to intervene in the economy is both more extensive and more intrusive, but with a narrow focus on GDP growth and surplus accumulation as the primary objectives. The ruling government's near complete dominance in politics has enabled it to mobilize resources to create the preconditions for strong GDP growth and high savings. But the impact on the broader development of the economy and the …

The Thailand Report: National Landscape, Current Challenges And Opportunities For Growth, Institute For Societal Leadership, John W. Ellington, Serene Chen

Institute of Societal Leadership Research Collection

Thai migrants first began trickling into the Chao Phraya river valley from Southern China in the eleventh century. Thai chieftains established petty kingdoms in modern-day Myanmar, Thailand and Laos, initially as tributaries to more established Burmese and Khmer rulers. However, both the diminishing influence of the Khmer Empire and the Mongols’ sacking of the Burmese capital Bagan in 1287 left a political vacuum in mainland Southeast Asia, which was soon filled by Thai kingdoms such as Sukhothai (1238–1463), Chiang Mai (1296–1775), Ayutthaya (1351–1767) and eventually Bangkok (f. 1 782). In the process, the up-and-coming Thai polities supplanted the Khmer Empire …

The Metro Manila Report: National Landscape, Current Challenges And Opportunities For Growth, Institute For Societal Leadership, John W. Ellington

Institute of Societal Leadership Research Collection

Although Western colonisers have, to varying degrees, shaped the political structures and economies of nearly all modern Southeast Asian nations, they achieved an unmatched level of cultural and institutional penetration in the Philippines. Far from the Indic influences that inspired Angkor Wat, Borobudur and Bagan, the island group was only marginally sanskritised during the pre-colonial period. With some notable exceptions in the south, Muslim communities were also never able to establish firm roots. Mindanao, Sulu and even southern Luzon were home to maritime sultanates beginning in the late 14th century, but a Spanish victory over the Muslim Rajah of Maynila …