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This paper contributes to the theory of optimal international reserves by extending the Jeanne-Rancière (Econ J 121:905-930, 2011) endowment small open economy (SOE) model to a SOE with production that accounts for the main sources of economic growth. We, first, derive a richer analytical version of the optimal reserves formula in our set-up, essentially driven by labour-augmenting productivity and the saving rate. Then, under a plausible calibration based on 1975-2020 data averages for typical emerging market countries facing the risk of sudden stops in capital inflows, we find that the optimal reserves-to-output ratio is 7.5%, i.e., the mid-point in the range between that in Jeanne and Rancière (Econ J 121:905-930, 2011), of 9.1%, calibrated to the same sample of 34 middle-income countries, and that in Bianchi et al. (Am Econ Rev 108(9):2629-2670, 2018), of 6.0%, obtained in a different, sovereign debt model without capital and production. We explain the lower optimal reserves-to-output ratio relative to the endowment SOE by the role of capital accumulation as precautionary saving: the accumulated capital stock can potentially be used as a pledge to external creditors in obtaining borrowing, thereby insuring better a SOE against sudden stops. As the countries in our sample appear quite heterogeneous, we also compute the optimal reserves-to-output ratio by region. It turns out that our extended to production insurance SOE model matches well the average reserves-to-output ratio in the data for Latin America, represented by nearly half of our sample, 16 countries, at just above 10%. Yet, for Asia, Africa and Europe our regional model-based ratios understate considerably the respective data averages, suggesting the need to explore alternative modelling approaches. [ABSTRACT FROM AUTHOR]

Modernization refers to the general process of progress within human societies. As a result of carbon dioxide emissions, global warming poses a significant threat to human sustainability. Therefore, the scientific community must thoroughly research the impact of modernization on CO 2 emissions. Surprisingly, just a few pieces of research have previously examined this subject. Asian economies are regarded as laggards in achieving the Sustainable Development Goals (SDGs), with environmental degradation being one of the key issues confronting these countries. This study used panel data regression to investigate the association between sectoral modernization and CO 2 emissions in South Asia. None of the existing studies has observed the sectoral modernization and CO 2 emission nexus in the region of South Asia. Therefore, this study bridges the research gap in the current literature. This study found that social sector transformation, energy sector, and services sector modernization have negative associations with CO 2 emissions in South Asia. However, both the agricultural sector and industrial sector modernization are positively associated with CO 2 emissions in South Asia. The empirical results from several models suggest that sectorial modernization has a significant and strong association with environmental sustainability. Access to a green and eco-friendly economy can increase modernization among different sectors of the economy to produce pro-environment products and society. Also, we found that FDI and trade policies influence the economies to follow environment-friendly economic practices., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

This paper focusses on income inequality in Asia, its drivers and policies to combat it. It finds that income inequality has risen in most of Asia, in contrast to many other regions. While in the past, rapid growth in Asia has come with equitable distribution of the gains, more recently fastgrowing Asian economies have been unable to replicate the "growth with equity" miracle. There is a growing consensus that high levels of inequality can hamper the pace and sustainability of growth. The paper argues that policies could have a substantial effect on reversing the trend of rising inequality. It is imperative to address inequality of opportunities, in particular to broaden access to education, health, and financial services. Also, fiscal policy could combat rising inequality, including by expanding and broadening the coverage of social spending, improving tax progressivity, and boosting compliance. Further efforts to promote financial inclusion, while maintaining financial stability, can help. [ABSTRACT FROM AUTHOR]

This article proposes and illustrates an analytical approach to understanding the relationship between urbanisation and the middle-income trap. The analytical approach is based on the view that in order to understand the nature of the middle-income trap, it is necessary to understand the development process and policy ingredients of countries that have successfully made the transition from low-income to high-income countries without getting stuck in the middle. Alice Amsden's work is an essential source for this task. She does not, as far as I am aware, use the term "middle-income trap", and apart from Amsden (1991), she largely ignores the urban question. Yet her work contains important insights that illuminate the nature of the middle-income trap. Focusing on Vietnam, the first part of the article identifies these insights and extends them to propose an analytical approach, whilst the second part describes the speed, distribution and form of urbanisation in Vietnam and applies the analytical approach to discuss ways in which the process of urbanisation is contributing to the country falling into, or avoiding, the trap. [ABSTRACT FROM AUTHOR]

The Ainu, a minority ethnic group from the northernmost island of Japan, was investigated for DNA polymorphisms both from maternal (mitochondrial DNA) and paternal (Y chromosome) lineages extensively. Other Asian populations inhabiting North, East, and Southeast Asia were also examined for detailed phylogeographic analyses at the mtDNA sequence type as well as Y-haplogroup levels. The maternal and paternal gene pools of the Ainu contained 25 mtDNA sequence types and three Y-haplogroups, respectively. Eleven of the 25 mtDNA sequence types were unique to the Ainu and accounted for over 50% of the population, whereas 14 were widely distributed among other Asian populations. Of the 14 shared types, the most frequently shared type was found in common among the Ainu, Nivkhi in northern Sakhalin, and Koryaks in the Kamchatka Peninsula. Moreover, analysis of genetic distances calculated from the mtDNA data revealed that the Ainu seemed to be related to both the Nivkhi and other Japanese populations (such as mainland Japanese and Okinawans) at the population level. On the paternal side, the vast majority (87.5%) of the Ainu exhibited the Asian-specific YAP + lineages (Y-haplogroups D-M55* and D-M125), which were distributed only in the Japanese Archipelago in this analysis. On the other hand, the Ainu exhibited no other Y-haplogroups (C-M8, O-M175*, and O-M122*) common in mainland Japanese and Okinawans. It is noteworthy that the rest of the Ainu gene pool was occupied by the paternal lineage (Y-haplogroup C-M217*) from North Asia including Sakhalin. Thus, the present findings suggest that the Ainu retain a certain degree of their own genetic uniqueness, while having higher genetic affinities with other regional populations in Japan and the Nivkhi among Asian populations. [ABSTRACT FROM AUTHOR]