Postcrisis policy responses tilted in favor of strengthening the global regulatory system and financial stability have limited the attention paid to the role of finance in supporting sustained economic growth and development. This has special implications for Asia which, despite being the new...

The expected slowdown in the economy of the United States (US) has ignited increasing concerns over the short-term growth prospect of East Asia. Historically, a US slowdown has often been associated with a global slowdown. East Asia has been particularly vulnerable to slowing US growth, given...

This paper aims to examine the factors that increase the likelihood of economic transition to higher income status; that is, it tries to answer the question of why some economies move to a higher income country group while others do not. Using a quintile income distribution approach, we identify...

The paper reexamines the issue of decoupling. By focusing on the recent trends of international trade and financial linkages in Asia, the paper reviews the evolution of regional business cycle synchronization and investigates macroeconomic interdependence between emerging East Asia and G3...

This paper employs a multidimensional approach to gauge the degree of regional integration and analyze impact on growth, inequality, and poverty. It constructs a multidimensional regional integration index (MDRII) series that embodies six key facets of regional integration: (i) trade and...

Postcrisis policy responses tilted in favor of strengthening the global regulatory system and financial stability have limited the attention paid to the role of finance in supporting sustained economic growth and development. This has special implications for Asia which, despite being the new...

Understanding the determinants of capital inflows is essential to designing an effective policy framework to manage volatile capital flows and their disruptive potential. This paper aims to identify factors that explain the size and volatility of various types of capital flows to developing Asia...

Developing Asia remains at the core of global payment imbalances. While the geographical concentration of current account imbalances is rather significant, with the People's Republic of China accounting for the lion's share of the region's current account surplus, how Asia contributes to global...

Monitoring the behavior of potential output helps policymakers implement appropriate policies in response to an economic crisis. In the short-run, estimates of the output gap can guide the timing of the implementation and withdrawal of stimulus measures. In the medium- to long-term, these...