Template-Type: ReDIF-Article 1.0 Author-Name: Edsel L. Beja Author-Email: edsel.beja@gmail.com Author-Workplace-Name: Department of Economics, Ateneo de Manila University, Quezon City Title: Capital flight from the Philippines, 1970-2002 Abstract: Capital flight is defined as the movement of capital from resource-scarce developing countries to avoid social controls. It is measured as net unrecorded capital outflow, or the residual between officially recorded uses and sources of funds. Total capital flight from the Philippines was estimated at USD 138 billion (in 1995 constant prices) for the period 1970-2002. Including imputed interest earnings, the stock of capital flight as of 2002 was USD 218 billion. Indeed, by any yardstick, these figures are significant amounts of lost resources that could have been utilized to generate additional output and jobs in the country. Were it not for capital flight, the Philippines would have reached an economic performance like the Asian economic tigers. Classification-JEL: F30, F40, O53 Keywords: capital flight, Philippines Journal: Philippine Review of Economics Pages: 1-26 Volume: 42 Issue: 2 Year: 2005 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/202/592 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:1-26 Template-Type: ReDIF-Article 1.0 Author-Name: Nico Masulit Ravanilla Author-Name: Eduard Joseph de Pano Robleza Author-Workplace-Name: University of the Philippines School of Economics Title: The contribution of OFW remittances to income inequality : a decomposition analysis Abstract: The paper aims to determine whether remittances from overseas Filipino workers improve or worsen income inequality. Using decomposition equations, the paper divides total inequality into its four components, namely wages, entrepreneurial incomes, other income, and remittances from migrants. The decomposition exercise reveals that the contribution of remittances to overall income inequality depends on their share in total income, their distribution among the population, and their correlation with total income. Remittances are found to accrue mostly to higher-income classes, but they are seen to be gradually becoming less inequality-increasing over time. Therefore, policies that would aim to reduce income inequality should consider making migration-facilitating factors more accessible to those in the lower ends of the distribution, because remittances would only tend to contribute less to income inequality if the lower-income brackets were also able to migrate. Finally, further studies should look into the implications of the changes in inequality, especially with regard to welfare. Classification-JEL: F22, D63 Keywords: remittances, inequality, decomposition analysis, international migration Journal: Philippine Review of Economics Pages: 27-54 Volume: 42 Issue: 2 Year: 2005 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/203/598 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:27-54 Template-Type: ReDIF-Article 1.0 Author-Name: Fadzlan Sulfian Author-Workplace-Name: Planning and Research Department and Department of Banking of Finance, University of Malaya Title: Consolidation and banks' efficiency in a highly regulated banking market : an event study window analysis approach Abstract: The study investigates the effects of mergers and acquisitions on Singapore's domestic banking groups' efficiency. A three-year window is chosen to examine the relative overall, pure technical and scale efficiency scores, ex ante and ex post. The non-parametric frontier approach known as Delta Envelopment Analysis (DEA) is employed to measure any efficiency gains (losses) resulting from the mergers and acquisitions among the domestically incorporated banking groups. To guide the definition of inputs and outputs into two alternative models, we used a variant of the intermediation approach. The results from both models suggest that the merger has resulted in higher mean overall efficiency of Singapore banking groups post-merger relative to pre-merger. Although the mergers have resulted in a more efficient Singaporean banking system, we find size to be the biggest factor influencing the inefficiency of Singapore's banking system. Hence, from the scale efficiency perspective, both our models do not support further consolidation in Singapore's banking sector. We do not find evidence of more efficient acquirers compared to the targets, as our findings from both models suggest that the targets are more efficient relative to the acquirers. Our results further support the hypothesis that the acquiring banks' mean overall efficiency improves as a result from a merger with a more efficient bank. Classification-JEL: G21, D24 Keywords: bank merger, data envelopment analysis, Singapore Journal: Philippine Review of Economics Pages: 55-73 Volume: 42 Issue: 2 Year: 2005 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/204/595 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:55-73 Template-Type: ReDIF-Article 1.0 Author-Name: Kazuhiro Ohnishi Author-Workplace-Name: Institute for Basic Economic Science, Japan Title: When is entry deterrence the wiser strategy for a firm? Abstract: This paper examines the idea that if an incumbent firm deviates from short-term profit maximization behavior and deters the entry of a potential entrant at the expense of higher profit, then its own mid-/long-term profit maximization is achieved. The paper confirms the importance of the entry-deterrence behavior of the incumbent firm by using numerical examples of learning by doing. Classification-JEL: C72, D21, L20 Keywords: entry deterrence Journal: Philippine Review of Economics Pages: 75-89 Volume: 42 Issue: 2 Year: 2005 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/205/594 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:75-89 Template-Type: ReDIF-Article 1.0 Author-Name: George Kutner Author-Email: george.kutner@marquette.edu Author-Workplace-Name: Department of Finance, Marquette University, Milwaukee, Wisconsin, USA Author-Name: David Krause Author-Email: david.krause@marquette.edu Author-Workplace-Name: Department of Finance, Marquette University, Milwaukee, Wisconsin, USA Title: Global sourcing with China : the challenges faced by small US manufacturers Abstract: When the People's Republic of China joined the World Trade Organization in 2001, the US had to contend with an increasing economic trade deficit, as low-cost Chinese manufactured exports poured into its shores. China has since risen from the economic shambles following Mao's failed Cultural Revolution to become one of the world's superpowers, with its economy growing almost 10 percent per year. It has become a haven for multinational corporations and entrepreneurs who were enticed by the prospect of having few worries about minimum wages, pensions, benefits, unions, anti-pollution laws or worker safety regulations. In the face of the growing trade deficit trend between China and the US, American manufacturers should be asking what they can do to survive the tidal wave of Chinese imported goods. One option that merits consideration is global sourcing with Chinese businesses. Small US manufacturers must understand how to use off-shore capability to their own advantage and to the benefit of their customers. In this light, Sino-US macroeconomic forces as well as the legal and financial requirements of doing business with China must be understood. This article discusses the intense global competitive pressures that many small US manufacturers face and the issues and challenges they must confront in order to survive and even prosper. Classification-JEL: F02, O14, O34 Keywords: China, manufacturing, global sourcing, WTO Journal: Philippine Review of Economics Pages: 91-125 Volume: 42 Issue: 2 Year: 2005 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/206/603 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:91-125 Template-Type: ReDIF-Article 1.0 Author-Name: Khair-uz Zaman Author-Workplace-Name: Department Economics, Gomal University, Dera Ismail Khan, Pakistan Author-Name: Nazakat Ali Imrani Author-Workplace-Name: Department of Commerce and Business Administration, Gomal University, Dera Ismail Khan, Pakistan Title: Workers' remittances and import demand in Pakistan Abstract: Using quarterly data for the period 1975-2004, this paper estimates import functions for Pakistan both at the aggregate and disaggregated levels. Findings show that remittances do have a significant impact on the demand for imports in the aggregate equation, with the elasticity for remittances being 0.15, and 0.70 for domestically generated income, in the long run (natural logarithm). Remittances, however, have no impact on the demand for imported consumer goods; their impact on the import of raw materials and capital goods are greater than that of domestically generated income. Classification-JEL: F2 Keywords: overseas workers, remittances, import function, Pakistan Journal: Philippine Review of Economics Pages: 127-137 Volume: 42 Issue: 2 Year: 2005 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/207/593 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:127-137