Currencies of greater interest for central Asian economies:an analysis of exchange market pressure amid global and regional interdependence

Central Asian Economies(CAEs)have diverse exchange rate policies.They have recorded higher volatility in the foreign exchange market since inception.High volatility of the transition era has drifted these economies towards partial dollarization.Monetary authorities in CAEs,(already have a challenge of maintaining monetary policy autonomy)have a gigantic task of price stability and stopping the spread of dollarization.This study is directed towards assessing the drivers and the determinants of foreign exchange market pressure in CAEs.The results,based on panel data analysis and the System GMM model,have provided useful insights about the exchange market pressure determinants particularly USD,Euro,Ruble,and Renminbi.The results show that China and Russia exchange market pressure has a negative effect on the exchange market pressure of CAEs.While the dollar index shows a positive impact on the exchange market pressure of CAEs.Overall,the findings imply that China and Russia currency appreciation results in a trade deficit across CAEs.The policy implication suggests that the floating exchange rate regime(inflation targeting regime)is not in favor of CAEs,and they must use managed-float to reduce their trade deficits.

Disequilibrium Analysis of Money Market in China

By the disequilibrium economic theory,this paper first investigates the disequilibrium mathematical economic model of the money market in China.Then,we study the disequilibrium transition of Chinese money market from 1954 to 1993 using a non parametric local fitting technique.Without assuming explicit functional forms,the method of locally weighted maximum likelihood is applied to estimate and test the variations in demand and supply during the period between 1954 to 1993.Furthermore,the disequilibrium state and mechanism of Chinese money market are inspected and the direction,the strength and the fluctuation of the disequilibrium are discussed respectively.Finally the policy suggestions are given about adjusting effectively money demand and supply under the condition of co existing of plan and market economy.In this paper,a brief review on the disequilibrium researches on money market in foreign countries is also given.

Can the improvement of competitive adequacy and fairness reduce discriminatory M&A behavior?Evidence from the market access negative list pilot in China

Corporate mergers and acquisitions(M&As)are subject to skewed logic due to excessive government regulation.China is progressively adopting the Market Access Negative List(MANL)pilot to transfer the power of resource allocation from the government to the market.Using the DID method,we examine the impact of relaxing market access regulation on firms’M&A behavior against China’s institutional background and the M&A events of listed companies from 2012 to 2019.The MANL significantly increases firms’M&A tendency and amount and strengthens the competitive adequacy and fairness of market-oriented M&A decisions.Post-M&A financial performance does not increase,but human capital productivity,innovation effectiveness and total factor productivity do,demonstrating the dynamic balance of profit and efficiency in M&As.

Urbanization,economic development,and environmental changes in transitional economies in the global south:a case of Yangon

Background:Transitional economies in Southeast Asia—a distinct group of developing countries—have experienced rapid urbanization in the past several decades due to the economic transition that fundamentally changed the function of their economies,societies and the environment.Myanmar,one of the least developed transitional economies in Southeast Asia,increased urbanization substantially from 25%in 1990 to 31%in 2019.However,major knowledge gaps exist in understanding the changes in urban land use and land cover and environment and their drivers in its cities.Methods:We studied Yangon,the largest city in Myanmar,for the urbanization,environmental changes,and the underlying driving forces in a radically transitioned economy in the developing world.Based on satellite imagery and historic land use maps,we quantified the expansion of urban built-up land and constructed the land conversion matrix from 1990 through 2020.We also used three air pollutants to illustrate the changes in environmental conditions.We analyzed the coupled dynamics among urbanization,economic development,and environmental changes.Through conducting a workshop with 20 local experts,we further analyzed the influence of human systems and natural systems on Yangon’s urbanization and sustainability.Results:The city of Yangon expanded urban built-up land rapidly from 1990 to 2000,slowed down from 2000 to 2010,but gained momentum again from 2010 to 2020,with most newly added urban built-up land appearing to be converted from farmland and green land in both 1990–2000 and 2010–2020.Furthermore,the air pollutant concen-tration of CO decreased,but that of NO_(2)and PM_(2.5)increased in recent years.A positive correlation exists between population and economic development and the concentration of PM_(2.5)is highly associated with population,the economy,and the number of vehicles.Finally,the expert panel also identified other potential drivers for urbanization,including the extreme climate event of Cyclone Nargis,capital relocation,and globalization.Conclusions:Our research highlights the dramatic expansion of urban land and degradation of urban environment measured by air pollutants and interdependent changes between urbanization,economic development,and environmental changes.

How Market-Guanxi Ambidexterity Affects Adaptive Capability in China＇s Transition Economy

Whether market- and guanxi-based strategies are complementary or substitutable in shaping adaptive capability is a critical yet controversial issue. This paper tackles this problem by adopting the ambidexterity perspective. Specifically, using a sample of 185 Chinese private firms, this study examines the independent and interactive effects of market orientation （MO） and guanxi orientation （GO, i.e., emphasizing on building business and political ties） on adaptive capability of firms in transition economies. Our results suggest that both direct impacts and complementary impacts of MO and GO strongly exist in shaping firms＇ adaptive capability, indicating the importance of ＂strategic ambidexterity.＂ These findings have several theoretical implications for studies on ambidexterity and adaptive capability, and practical implications for finn strategies in transition economies.

Social capital and folk lending in China’s hottest financial market

In 2011,respnding to a credit crunch,Wenzhou became the first and only municipality to institute complete financial reform.Wenzhou had been the fastest growing municipal economy in China's fastest-growing province for two decades.But the global financial crisis hit hard the informal financial networks which funded small and medium-sized enterprises.The so-called'Wenzhou model'has long been dependent on financial capital from other parts of China funnelled through these networks to fund local entrepreneurs,especially the person-to-person financing known as folk lending.These informal financial networks relied heavily on interpersonal connections,reputation and trust,the major ingredients of social capital in banking and finance.In order to generate the social capital lost in the credit crunch,Wenzhou created govermment financial intermediaries,but these have not had much success.However,peer-to-peer on-line financing companies(P2P platforms),established concurrently by private entre preneurs with ltte capital,have been highly succesful.In effect,P2P platforms have capitalised on the"Wenzhou model'by using the Wenzhou brand name to create a new form of financing net-work channel.