Corporate Governance, Evolution of Corporate Laws and Asian Economic Development into the 21st Century

The purpose of this paper is to build on the Wellon - Piston analysis and to make two specific proposals for the further evolution of corporate law in Asian countries. The first of these proposals is designed to deal with important aspects of the current economic and financial crisis in South East and East Asia. It addresses the problem of corporate restructuring in these countries in the wake of the economic crisis and considers specifically the case of South Korea. The second proposal is concerned with the more general issue of corporate governance in semi-industrial countries and refers particularly to the Indian situation. The two proposals are not, however, entirely independent. The first proposal could potentially have significant implications for corporate governance while the second proposal is also likely to be helpful in the restructuring of the Asian economies as they begin to recover from the crisis

FDI, Globalisation and Economic Development - Towards Reforming National and International Rules of the Game

The key analytical and policy question examined in this paper is whether multinational companies and their overseas investment need to be regulated at the national or the international level, in order to address market failures, and to enhance their potential contribution to world welfare. The paper examines two kinds of regulatory regimes: first the current regime and second, a new regime proposed by the European community and Japan at the WTO (ECJ) to institute fresh global rules of the game which will effectively allow multinationals unfettered freedom to invest where they like, whenever they like, how much and in what products. Very briefly, the central conclusion of the paper is that ECJ, despite its important concession of confining itself to only one source of external finance namely FDI, is a flawed proposal both from the perspective of developing and developed countries. Its shortcomings are particularly serious with respect to developing countries as it essentially ignores the developmental dimension altogether. It is emphasized that although the current post-Uruguay Round FDI regime is to be preferred in relation to the ECJ, the former has, nevertheless severe deficits from a developmental perspective. These need prompt action by the international communityglobalisation, foreign direct investment, trade flows, WTO

Competition and competition policy in emerging markets: international and developmental dimensions

This paper examines the role of competition policy in emerging markets from a developmental and international perspective. Its main conclusion include: contrary to conventional wisdom, evidence suggests that the intensity of competition in leading emerging markets is certainly no less than that observed in advanced countries; analysis and evidence indicates that maximum competition is not necessarily optimal, in terms of dynamic efficiency; developing countries need a competition policy today, because of (a)privatization and deregulation, and (b) the huge international merger movement; there is little evidence to indicate that the current international merger wave will enhance global economic efficiency; the current competition policies in the UK and the EU are unsuitable for developing countries - countries at different levels of development and governance capacities require different types of competition policies. The paper presents a proposal for a development-oriented international competition authority to control anti-competitive conduct and growth by mergers of large multi-national companies.Competition, Competition Policy, Development, Mergers

Capital account liberalization, free long-term capital flows, financial crises and economic development

The first part of this paper examines the theoretical and empirical case for full capital account liberalisation in developing countries(DCs) and finds it unconvincing. Indeed, analysis and evidence presented here point to a compelling case against it. The second part considers the liberalisation of only the long-term capital account, particularly FDI - a form of in-flow favoured by most economists. This paper, however, argues that even FDI, if unregulated, may do more harm than good. It is suggested that DCs should, therefore, resist the new advanced country proposals for a multilateral agreement on FDI.Capital account liberalisation, FDI

Competition, corporate governance and selection in emerging markets

The paper introduces the three articles in this Policy Feature, concerned respectively with competition, corporate governance and selection in emerging markets. Apart from being important in their own right, it is shown how these topics have recently acquired urgent domestic and international policy significance. This overview also provides the intellectual background to the issues raised in the papers and examines their interrelationships in analytical, empirical and methodological terms. It outlines a research programme which would not only have direct policy relevance for both emerging and mature countries, but would also have broader analytical significance for many areas of economic theory.Competition, Corporate Governance, Selection, Emerging Markets

Better to be rough and relevant than to be precise and irrelevant. Reddaway's Legacy to Economics

W.B. Reddaway has been a highly influential figure in Cambridge economics during the second half of the 20th Century. His method and style of doing economics - called the Reddaway-type economics - were quite distinct. The present paper explains Reddaway's methodology by examining his most important research contributions. The title of this essay conveys his distance from mainstream economists. His essential substantive difference with the latter concerned inferential econometrics. He subscribed to Keynes' critique of Timburgen's methodology. In summary, Reddaway regarded economics as an empirical, evidence-based subject which, through economic policy, should help improve the world. In his view mathematics could sometimes help, but, more often than not, it obfuscated economic reality. Currently the academic economics profession is dominated by a priori theorising and deductive modelling. Greater attention to Reddaway's legacy to economics, to its research methods and to teaching, would very much help to rebalance the subject.Method and style of doing economics, Reddaway-type economics, inferential econometrics

Capital Account Liberalization, Free Long-Term Capital Flows, Financial Crises and Economic Development

The first part of this paper examines the theoretical and empirical case for full capital account liberalization in developing countries (DCs) and finds it unconvincing. Indeed, analysis and evidence presented here point to a strong case against it. The second part considers the liberalization of only the long-term capital account, particularly FDI--a form of inflow favored by most economists. This paper argues that a multilateral agreement on investment, which denies countries the discretion to regulate FDI, will not be in the interests of DCs.Capital Flow; Developing Countries; Development; Liberalization

Stock Markets in Low and Middle Income Countries

This paper explores the question of whether the institution of the stock market is likely to be helpful to low and middle income countries in promoting development of their real economy and ensuring fast industrial growth. The case for and against the stock market inevitably involves a discussion of the important related subjects of corporate finance, corporate governance and corporate law. Contrary to the literature the paper arrives at a negative overall assessment of the institution of the stock market in relation to economic development. It also contributes by its policy proposals concerning the markets for corporate control which again are in conflict with much of the conventional wisdom on the subject.stock market; market for corporate control; corporate finance; corporate governance; corporate law

COMPETITION AND COMPETITION POLICY IN EMERGING MARKETS: INTERNATIONAL AND DEVELOPMENTAL DIMENSIONS

This paper examines the role of competition policy in emerging markets from a developmental and international perspective. The main issues addressed include the following: The state of competition and competition policy in developing countries; The relationship between competition, competition policy and economic development; The implications of the recent new advances in the theory of industrial organization for competition policy; The current international merger wave and its impact on developing countries. Multilateral competition policy and the establishment of an International Competition Authority (ICA). The paper´s main conclusions include the following: Contrary to conventional wisdom, many different kinds of evidence suggest that the intensity of competition in leading emerging markets is certainly no less, if not greater, than that observed in advanced countries. Analysis and evidence indicates that maximum competition is not necessarily optimal, in terms of dynamic efficiency, i.e. maximization of an economy´s long-term productivity growth. Even if it was not required in the past, developing countries need a competition policy today, because of the huge international merger movement as well as privatization and deregulation in these economies themselves. There is little evidence to indicate that the current international merger wave will enhance global economic efficiency. Giant cross-border mergers, as well as those occurring between large firms within advanced countries, could, however, adversely affect competition and contestability in developing countries and the world economy. Even with competition policies, developing countries may not be able to restrain anti-competitive behaviour by large multinationals.The current competition policies in the United States and the European Union are unsuitable for developing countries. Countries at different levels of development and governance capacities require different types of competition policies. A good model for many emerging countries with effective governance structures is that of the Japanese competition policy during 1950-73. The Japanese used both competition and cooperation to promote rapid industrialization. The paper presents a proposal for a development-oriented international competition authority to control anti-competitive conduct and growth by mergers of large multi-nationals. It is argued here that the current discourse on the development dimension of competition policy at the WTO is unsatisfactory; its terms and language need to be radically changed. The ultimate aim of the WTO should not be to promote free trade for its own sake, but to achieve economic development

Role of Partial Transpose and Generalized Choi maps in Quantum Dynamical Semigroups involving Separable and Entangled States

Power symmetric matrices defned and studied by R. Sinkhorn (1981) and their generalization by R.B. Bapat, S.K. Jain and K. Manjunatha Prasad (1999) have been utilized to give positive block matrices with trace one possessing positive partial transpose, the so-called PPT states. Another method to construct such PPT states is given, it uses the form of a matrix unitarily equivalent to its transpose obtained by S.R. Garcia and J.E. Tener (2012). Evolvement or suppression of separability or entanglement of various levels for a quantum dynamical semigroup of completely positive maps has been studied using Choi-Jamiolkowsky matrix of such maps and the famous Horodecki's criteria (1996). A Trichotomy Theorem has been proved, and examples have been given that depend mainly on generalized Choi maps and clearly distinguish the levels of entanglement breaking.Comment: A few corrections and changes in view of discussion with Matthias Christand