A Tale of Two Countries: Openness and Growth in China and India

The policy by China and India to open their markets to international trade has been touted as the reason for their phenomenal growth. This paper investigates the impact of opening up the China and Indian economy on economic growth in these countries using new panel data sets for both the national economies and the regional economies of China. The policy change to a more liberalized economy is explicitly identified using instrumental variables. The results provide support that export growth does have a positive and statistically significant effect on economic growth in these countries. However, the growth rates of these countries are export and FDI inelastic, in the sense that a one percentage point increase in growth rate of export or FDI will have a less than one percentage point increase in economic growth rate of these countries. In the case of the Chinese regions, the presence of export processing zones may exert positive effect on the regional growth rate but the increase in regional growth is even more export inelastic than at the national level. The results dispel the popular view that adopting a policy of more openness in the economy has a “multiplier” effect on economic growth. Of the two phases of liberalization in both countries, the second stage is statistically significant. One possible reason is that the scale of liberalization is greater in the second phase. Additionally, increasing the number of SEZs has very negligible effect on economic growth. Taken together, these results suggest that what contributes to greater growth is a greater scale of liberalization, rather than increasing the number of SEZs.

Capitalism and Economic Growth: A Game-Theoretic Perspective

Why has capitalism prevailed as an institution in promoting economic growth despite its apparent unfairness? In this paper, we argue that within a neoclassical framework, capitalism is fairer compared to collectivism due to the absence of a rationally acceptable collective solution. This is demonstrated using a dynamic game with a vote-maximizing government(G) and profit-maximizing representative firm(F). In this GF game, collectivism or cooperation between the players appears to trump capitalism at the aggregate level. Developing countries operating below the steady state may be better off cooperating as they will enjoy positive long term economic growth and profit growth once their capital stock exceeds the steady state level. But this requires them to sacrifice short term growth and possible inequity as the firm's profits grow. Developed countries operating above the steady state will find the cooperative solution attractive since both economic growth and profit growth will be positive. So, from an aggregate level, collectivism or cooperation performs better than capitalism. However, a fair imputation of cooperative or collective solutions which is rationally acceptable for all players does not exist. In every stage of development, the firm always finds it rationally unacceptable to cooperate because the profits earned by the firm under the feedback Nash equilibrium always dominate the profits under cooperation. On the other hand, the government only finds the cooperative solution to be rationally acceptable when the economy is above the steady state. Hence, collectivist cooperation between the government and the firm are not rationally acceptable for both and a fair equilibrium cannot be attained with collectivism.Fairness; Dynamic Games; Economic Growth; Capitalism

Scattering and Bound States of a Deformed Quantum Mechanics

We construct the exact position representation of a deformed quantum mechanics which exhibits an intrinsic maximum momentum and use it to study problems such as a particle in a box and scattering from a step potential, among others. In particular, we show that unlike usual quantum mechanics, the present deformed case delays the formation of bound states in a finite potential well. In the process we also highlight some limitations and pit-falls of low-momentum or perturbative treatments and thus resolve two puzzles occurring in the literature

Generalized Relativistic Wave Equations with Intrinsic Maximum Momentum

We examine the nonperturbative effect of maximum momentum on the relativistic wave equations. In momentum representation, we obtain the exact eigen-energies and wavefunctions of one-dimensional Klein-Gordon and Dirac equation with linear confining potentials, and the Dirac oscillator. Bound state solutions are only possible when the strength of scalar potential are stronger than vector potential. The energy spectrum of the systems studied are bounded from above, whereby classical characteristics are observed in the uncertainties of position and momentum operators. Also, there is a truncation in the maximum number of bound states that is allowed. Some of these quantum-gravitational features may have future applications.Comment: 20 pages, 4 figure

A New Approach to Detect Spurious Regressions using Wavelets

In this paper, we propose the use of wavelet covariance and correlation to detect spurious regression. Based on Monte Carlo simulation results and experiments with real exchange rate data, it is shown that the wavelet approach is able to detect spurious relationship in a bivariate time series more directly. Using the wavelet approach, it is sufficient to detect a spurious regression between bivariate time series if the wavelet covariance and correlation for the two series are significantly equal to zero. The wavelet approach does not rely on restrictive assumptions which are critical to the Durbin Watson test. Another distinct advantage of the graphical wavelet analysis of wavelet covariance and correlation to detect spurious regression is the simplicity and efficiency of the decision rule compared to the complicated Durbin-Watson decision rules.Wavelet analysis, spurious regression

Purification and Characterization of Endoxylanases Cloned from Fibrobacter Succinogenes S85 and Expressed in Escherichia Coli HB101

The xylanase enzyme from Escherichia coli HB 101 containing the xylanolytic recombinant plasmid pBX6 was purified to homogeneity using ultrafiltration, DEAESepharose, CM-Sepharose and Sephadex 0-200 chromatography. Three xylanases, namely, Xyn A, Xyn BI and Xyn BII were obtained and were found to have the same molecular weight and optimum pH which were estimated to be 60.3 kDa and pH 7.0 respectively. The optimum assay temperature for both Xyn A and Xyn BI was 50°C, while for Xyn BII, it was 40°C. The xylanases were stable up to 45°C at pH 7.2 for 30 min. Approximately 80% of the enzyme activity was retained at the pH range of 5.0 to 8.0. The isoelectric point for Fraction A, Fraction BI and Fraction BII was 8.2, 8.5 and 5.5, respectively. The respective apparent K", and Vmax value on oat-spelt xylan was 12.2 mg/ml and 47.9 µmol xylose/min/mg protein for Xyn A; 10.8 mglml and 52.1 µmol xylose/min/mg protein for Xyn BI; 8.7 mg/ml and 54.2 µmol xylose/min/mg protein for Xyn BII. From the hydrolysis products of oat-spelt xylan analysed on thinlayer chromatography, the xylanases hydrolysed xylan through an endo-acting mechanism as no xylose, xylobiose or arabinose was detected. Thus, the xylanases were classified as an endoxylanase. The xylanases showed no activity toward carboxymethyl cellulose (CMC), crystalline cellulose (Avicel) and cellulose filter paper. The xylanases were not affected by potassium chloride, EDT A and EGTA at concentrations of 10 mM. Calcium chloride and magnesium chloride at the same concentrations enhanced the xylanase activities by 50%. Mercury chloride at 1.0 mM concentration completely inhibited the activities of all the purified xylanases. From zymogram analysis and characteristics of the xylanases investigated, multiplicity of xylanases in E. coli HB 101 (pBX6) was probably due to post-translational modification of a single gene product

An Overview of the East-Asian Economic Crisis

The objective of this project is to analyse the possible causes and the effects of the economic crisis in East-asian region with particular emphasis of the impact on Malaysia in respect of the RINGGIT and the KUALA LUMPUR STOCK EXCHANGE; how the crisis affects countries in other regions. The issues of whether the I MF can solve the prevailing problems in this region and how Mexican's crisis is different from the East-asian are also discussed. Lastly, several recommendations are made with a view to strengthen and improve the economic fundamentals of Malaysia. The possible causes of the crisis incudes: poor financial and banking system resulting in substantial non-performing loans, Investors' loss of confidence, less competitive exports, unproductive investments and over-dependence on the foreign capital. Malaysia was hit badly by this crisis. The value of Ringgit fell from 2. 6450 in July 1997 to 4. 1 550 against the US Dollar in July 1998 whilst the Composite Index fell from 1,0 1 2. 84 in July 1997 to 402.65 in July 1998 . The Gross Domestic Product ( GDP ) growth rate was forecasted to be - 1% to -2% compared with the average GDP growth rate of 8.8 % for the period between 1988 to 1997.It is evident that IMF cannot provide solution to East-asian countries as countries who resorted to I MF's bail-out do not seem to recover from their crisis. East-asian's crisis is by nature different from that of the Mexican's crisis in 1995. The former is solvency crisis whereas the latter is liquidity crisis. Malaysian government should strengthen its economic fundamentals by implementing several measures such as making it compulsory to make use of local manufactured parts. Agriculture sector should be revived as it can save the country for RM 9 billion on food. To develop Information Technology, Education and Tourism sectors to generate foreign exchange for the country. Regulations should be imposed to prevent sudden outflow of foreign portfoliofunds. The Banking sectors has to be strengthen and not to allow politicians to have hands in the Banking industry loans should only be approved based on its merit only

Experimental And Finite Element Analyses Of Corrugated Web Steel Beams Subjected To Bending Loads

The behaviour of beams with corrugated web has been investigated throughout this study. They are commonly used in structural steel works to enhance the momentcarrying capability and weight reduction. Experimental tests and finite element analysis were conducted on beams with plane web (PW), horizontally corrugated (HC) and vertically corrugated (VC) webs. Throughout the experimental tests, semicircular shape corrugation of 22.5 mm mean radius and 4.0 mm thickness was used. Two cases were considered for the HC beams, one are (HC 1) and two arcs (HC2) corrugation, while semicircular wholly corrugated was used for the VC type beams. All specimens were fabricated using tubes and flat plates of mild steel material (AlSI 1020). The 1nstron testing machine was used for the three-point bending tests where three tests for each case have been carried out to obtain the load-displacement relations. The plane web I-section beams with the mass per unit length value of 19.3 (kgm-l) was also tested to act as the benchmark result. In the analytical work, finite element models were generated and analysed by using LUSAS software. The material datasets were defined based on the actual stressstrain data obtained from the tensile tests. A series of elastic-plastic nonlinear analysis were carried out with the boundary settings similar to the experiment setup. Three corrugation radii of 22. 50 mm, 33.75 mm and 67.50 mm were considered for the HC beams while five radii, in the range of 11 .25 mm to 33.75 mm for the VC beams. From the results obtained, the VC beams has yield loads of 60.62 1 kN to 73.308 kN or 13.3% to 32.8% higher than the welded plane web beams and 1 .32-1.89 times and 1 .56-3.26 times higher compared to the HCl and HC2 beams respectively. The yield load increases as the larger size of radius was used, which is true for the sizes taken in this study. Moreover, as much as 13.6% of reduction in weight was achieved for the VC beams at the largest value of corrugation radius. A good agreement was found between the experimental and finite element analysis results where the percentage difference obtained was 7.28% to 28.37%

The adoption and use of internet banking by Malaysian consumers: An empirical investigation

Bank Negara Malaysia (BNM) removed the restrictions on providing banking transactions through the Internet on June 2000.This has enabled Internet banking to be emerged as a popular financial service delivery platform in Malaysia. The success of this new distribution channel for banking products and services depends on the adoption rate by Malaysian consumers.Thus, this paper examines the key determinants that critically affect consumers’ decision in adopting Internet banking.It also aims at forming a model describing the relationships among these determinants in order to evaluate which determinants have a direct/ indirect impact on Internet banking adoption.It has revealed that convenience and accessibility of the Internet banking service have a significant impact on the adoption.In addition, simplification and ease of use of Internet banking, security and trust concerns as well as consumers’ prior technology experience are found affecting their decision indirectly in adopting Internet banking.Finally, implications of results were highlighted and future research directions were outlined