“Physical Capital Estimates for China’s Provinces, 1952-2015 and Beyond” by Carsten A. Holz & Sun Yue

Carsten A. Holz & Sun Yue

CESifo Working Paper No. 6472 (May 2017)

Abstract:
Capital estimates are widely used in economic growth and productivity studies, for profitability considerations and wealth accounting exercises. Yet the calculation of “capital” frequently receives only cursory attention, despite the challenges posed by conceptual difficulties, the complexity of calculations, and the extensive data requirements. This paper (i) calculates long-run provincial (and national) physical capital series for China, (ii) distinguishes between capital services and wealth capital stock, and (iii) applies the most recent methodology advanced by the OECD, the U.S. Bureau of Labor Statistics, and the Australian Bureau of Statistics. The complete set of data is available online and is expected to be updated on an annual basis in the future.

[You find the paper here]

“Institutional Quality, Trade Openness, and Financial Sector Development in Asia: An Empirical Investigation” by Thai-Ha Le, Jungsuk Kim & Minsoo Lee

Thai-Ha Le, Jungsuk Kim & Minsoo Lee

published in:
Emerging Markets Finance & Trade, 52:1047–1059, 2016

We examine the determinants of financial sector development in Asia and the Pacific from 1995 to 2011. In terms of economic growth, over the last twenty years the region has outperformed other parts of the world and has also experienced major developments in its traditionally bank-dominated financial system since the 1997 Asian financial crisis. We apply the dynamic generalized method of moments to a panel data set of twenty-six economies in the region. The estimations were done for the whole panel as well as for subpanels of developed and developing economies. We find that better governance and institutional quality foster financial sector development in developing economies while economic growth and trade openness are key determinants of financial depth in developed economies.

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“Effectiveness of Macroprudential Policies in Developing Asia: An Empirical Analysis” by Minsoo Lee, Ruben Carlo Asuncion & Jungsuk Kim

Minsoo Lee, Ruben Carlo Asuncion & Jungsuk Kim

published in:
Emerging Markets Finance & Trade, 52:923–937, 2016

Before the 2008 global financial crisis, bank monitoring focused primarily on risks to individual institutions, or what are generally referred to as prudential risks. Regulators thus failed to consider that a buildup of macroeconomic risks and vulnerabilities could pose systemic risk to the financial sector. The global credit crisis showed the inadequacy of purely prudential surveillance systems and the need for bank supervisors to better detect the buildup of macroeconomic risks before they can threaten the financial system. This article presents an empirical framework for analyzing how effectively macroprudential policies control credit growth, leverage growth, and housing price appreciation. Two significant findings emerge. Broadly, macroprudential policies can indeed promote financial stability in Asia. More specifically, different types of macroprudential policies are proved effective for different types of macroeconomic risks.

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