Recent Working Papers

Regional Monetary Units for East Asia: Lessons From Europe
Authors: Eric Girardin, Alfred Steinherr

This paper examines how the European experience with the European Currency Unit (ECU) basket currency could apply to the creation of an East Asian regional currency unit. The authors discuss the technical aspects of a basket currency and the criteria for determining the shares of participating currencies, and propose a plan for a basket currency for East Asia.

Read Working Paper 116.

Sources of FDI Flows to Developing Asia: The Roles of Distance and Time Zones
Authors: Rabin Hattari, Ramkishen S. Rajan

Can time zones and distance hinder FDI flows? A new paper investigates sources and determinants of FDI flows to developing Asia using bilateral FDI flows for 1990–2005. The authors found that the elasticity of distance is greater for FDI from non-Asia-Pacific Oraganisation for Economic Co-operation and Development (OECD) economies than for intra-regional Asian flows.

Read Working Paper 117.

ASEAN Open Skies and the Implications for Airport Development Strategy in Malaysia
Authors: Siew Yean Tham

This paper examines the implication of “open skies” in the ASEAN region on the airport development strategy in Malaysia. The findings show that although Malaysia has invested substantially in airport infrastructure development, other member countries within ASEAN, notably Singapore and Thailand, have also followed a similar investmentintensive strategy to develop their international airports into airport hubs.

Read Working Paper 119.

Global and Regional Shocks: Challenges to Asian Economies
Authors: Kwanho Shin

Two major economic problems are shadowing Asian economies. The author addresses how Asian economies are being challenged by the recent slowdown in the US economy and recent fuel and food price increases, and identifies policy issues faced by policymakers in Asia.

Read Working Paper 120.