Volume 11, Number 1, June 2008

EN:

Previous studies show that equity structure and cultural differences are important factors that influence the performance of joint ventures (JVs). Based on the JVs contract database and Import/Export ranking database the analysis shows that the performance of monopoly controlled JVs is better than others. However, cultural differences do not hinder performance; in fact, heterogeneity has provided better outcomes in JVs. Based on grouped data samples, it is believed that the higher the ratio of Chinese equity in JVs, the better the export performance. However, the relation between foreign equity and import orientation is not significant.

EN:

This paper proposes a theoretically grounded Asta-Ja framework of Eight "Ja" ─Nepali letter "Ja", Jal (water), Jamin (land), Jarajuri (plants), Janawar (animals), Jungle (forest), Jadibuti (medicinal and aromatic plants), Jalabayu (climate), and Jansakti (manpower) and referred to as Asta-Ja in Nepali language for economic development and management of Nepal. More concretely, it identifies and analyzes key elements of the framework to derive its implications for theory and policy development.

EN:

The Japan-Malaysia free trade agreement (FTA) was signed in 2005 and implemented from 2006 with the expectation that it would further enhance the trade and investment relationship between the two countries. Yet, research suggests that the trade agreement and other tools for expanding trade between partner countries are substantially losing effectiveness. In light of this phenomenon, this study examines the role and effectiveness of the Japan-Malaysia FTA in influencing their bilateral trade. From analyses of time series data for Malaysia’s trade with the world and Japan, in terms of trade volume, trade share, and rate of growth, it is observed that during the first two years of this FTA, its influence on bilateral trade between these two countries was not significant. This research indicates that the agreement is still at a fledgling stage, and has limited scope for influencing and revamping mutual trade. The results provide weak support for the thesis that formation of a free trade agreement or bloc is an effective tool for enhancing trade between partner countries. Although a two years of engagement is not long enough to test any rigorous model nor draw valid conclusions, a FTA is indeed an effective tool as long as partners do not enter into such arrangements with many countries, which may dilute the anticipated outcome of an agreement between two countries.

EN:

While there is a growing body of theoretical and empirical literature examining the effects of such macroeconomic variables as growth of gross domestic product, international trade, incomes distribution and foreign direct investment on environmental pollution, one dimension lacking in the current literature is the impact of interest rates on pollution. If interest rates decline (rise), firms with capital-intensive technologies will invest more (less) relative to firms with labor-intensive technologies. Additionally, according to Rybczynski theorem, in a situation of full employment and a competitive labour market, labor will shift towards the capital-intensive industries from labor –intensive ones. Consequently, the products of capital-intensive industries will expand (contract) relative to products of labor-intensive industries. The capital-intensive industries are generally deemed to be polluting while labor-intensive industries are perceived to be non-polluting. This suggests that the movements of interest rates may have a discernible environmental outcome which has been neglected in the literature so far. To begin to fill this gap, in this paper, we construct a two-good and two-factor closed economy model to show the impact of interest rates on environmental pollution in a formal way. The theoretical results of the paper are illustrated numerically.