This paper describes the <I>de facto</I> economic integration taking place between China, Hong Kong and Taiwan -- the "Chinese Economic Area" -- and analyses basic factors underlying the process. Even in the face of weak economic performance in OECD countries the integration has helped underpin rapid...</i>

In forecasting key economic indicators for the major industrial countries, the Bank's Economic Analysis and Prospects Division (IECAP) does not rely on a completely linked global macroeconomic model. This paper asks if IECAP forecasts are consistent with those produced by linked models. To...

Over the years, the term private sector development, has been misunderstood and misconstrued - variously vilified and sanctified. During the decade of the 1990s, the role of the private sector in economic development, received increased attention, with controversy surrounding such issues as...

Tax reform is an urgent priority, as Japan needs as much as 5% to 6% of GDP of additional government revenue just to stabilise public debt, which has risen to 180% of GDP. In addition to raising revenue, tax reform should promote economic growth, address the deterioration in income distribution...

Income inequality and relative poverty among the working-age population in Japan have risen to levels above the OECD average. This trend is partially explained by labour market dualism, with an increasing proportion of non-regular workers who are paid significantly less than regular workers, as...

A well-functioning labour market is essential to sustain rapid economic growth in the face of population ageing. Priorities are to reverse the rising share of non-regular workers, which has negative implications for both growth and equity, and encourage greater employment of women and youth, who...

Labour productivity growth in the service sector, which accounts for 70% of Japan’s economic output and employment, has slowed markedly in recent years in contrast to manufacturing. The disappointing performance is associated with weak competition in the service sector resulting from strict...

Faced with exceptionally rapid population ageing, Korea should address obstacles that lower fertility rates while encouraging higher labour force participation, particularly among women. While public social spending is currently very low, there is pressure for increased outlays on pensions,...

Globalisation through foreign direct investment (FDI), international trade and international movements of labour is a key force driving economic growth. Although Korea has become more integrated in the world economy over the past decade, it still ranks low in terms of import penetration, the...

Labour productivity growth in the service sector has been low relative to manufacturing. This is explained in part by weak competition in services resulting from strict product market regulation and the low level of import penetration and inflows of foreign direct investment (FDI). Increasing...